Camtek (CAMT) 6-K 21 Sep 18 2018 Q2 Current report (foreign) Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Jun. 30, 2018
Document And Entity [Abstract]
Document Type	6-K
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Entity Registrant Name	CAMTEK LTD
Entity Central Index Key	1,109,138
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,018
Entity Filer Category	Non-accelerated Filer

Interim Unaudited Condensed Con

Interim Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 41,204	$ 43,744
Trade accounts receivable, net	32,278	23,153
Inventories	23,693	21,336
Other current assets	2,769	3,215
Total current assets	99,944	91,448
Property, plant and equipment, net	15,731	15,503
Long term inventory	1,466	1,383
Deferred tax assets	3,308	4,067
Other assets, net	153	153
Intangible assets, net	480	482
Total noncurrent assets	5,407	6,085
Total assets	121,082	113,036
Current liabilities
Trade accounts payable	15,174	10,502
Other current liabilities	16,552	17,395
Total current liabilities	31,726	27,897
Long term liabilities
Liability for employee severance benefits	870	838
Total noncurrent liabilities	870	838
Total liabilities	32,596	28,735
Shareholders' equity
Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at June 30, 2018 and at December 31, 2017; 38,277,165 issued shares at June 30, 2018 and 37,924,507 at December 31, 2017; 36,184,789 shares outstanding at June 30, 2018 and 35,832,131 at December 31, 2017;	149	149
Additional paid-in capital	79,820	78,437
Retained earnings	10,415	7,613
Total shareholders' equity before treasury stock	90,384	86,199
Treasury stock, at cost (2,092,376 as of June 30, 2018 and December 31, 2017)	(1,898)	(1,898)
Total shareholders' equity	88,486	84,301
Total liabilities and shareholders' equity	$ 121,082	$ 113,036

Interim Unaudited Condensed Co3

Interim Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - ₪ / shares	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Common Stock, par value per share	₪ 0.01	₪ 0.01
Common Stock, shares authorized	100,000,000	100,000,000
Common Stock, shares issued	38,277,165	37,924,507
Common Stock, shares outstanding	36,184,789	35,832,131
Treasury Stock, shares	2,092,376	2,092,376

Interim Unaudited Condensed Co4

Interim Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Income Statement [Abstract]
Revenues		$ 30,462	$ 22,682	$ 57,736	$ 43,828	$ 93,485
Cost of revenues		15,563	11,527	29,840	22,384	47,966
Gross profit		14,899	11,155	27,896	21,444	45,519
Research and development costs		3,406	3,413	6,955	6,852	13,534
Selling, general and administrative expenses		6,775	5,754	12,664	11,159	22,022
Expenses from settlement			13,000		13,000	13,000
Total operating expenses		10,181	22,167	19,619	31,011	48,556
Operating income (loss)		4,718	(11,012)	8,277	(9,567)	(3,037)
Financial income (expenses), net		146	(56)	436	(209)	(150)
Income (loss) from continuing operations before taxes		4,864	(11,068)	8,713	(9,776)	(3,187)
Income tax benefit (expense)		(533)	5,404	(848)	5,364	4,875
Net income (loss) from continuing operations		4,331	(5,664)	7,865	(4,412)	1,688
Income from discontinued operations
Income before tax benefit (expense)	[1]		1,981		4,339	18,302
Income tax benefit (expense)	[1]		(194)		(505)	(6,028)
Income from discontinued operation	[1]		1,787		3,834	12,274
Net income (loss)		$ 4,331	$ (3,877)	$ 7,865	$ (578)	$ 13,962
Net income (loss) per ordinary share:
Basic earnings (losses) from continuing operation		$ 0.12	$ (0.16)	$ 0.22	$ (0.12)	$ 0.05
Basic earnings from discontinued operation			0.05		0.11	0.35
Basic net earnings (losses)		0.12	(0.11)	0.22	(0.02)	0.40
Diluted earnings (losses) from continuing operation		0.12	(0.16)	0.22	(0.12)	0.05
Diluted earnings from discontinued operations			0.05		0.11	0.34
Diluted net earnings (losses)		$ 0.12	$ (0.11)	$ 0.22	$ (0.02)	$ 0.39
Weighted average number of ordinary shares outstanding (in thousands):
Basic		36,090	35,369	36,050	35,359	35,441
Diluted		36,632	35,369	36,512	35,359	35,964
[1]	The financial position of the PCB business is presented as discontinued operations. See also Note 1.

Interim Unaudited Condensed Co5

Interim Unaudited Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Ordinary Shares NIS 0.01 par value [Member]		Number of Treasury Shares [Member]	Additional paid-in capital [Member]	Retained earnings (accumulated losses) [Member]	Treasury stock [Member]	Total
Balance, value at Dec. 31, 2016	$ 148		$ (2,092,376)	$ 76,463	$ (1,348)	$ (1,898)	$ 73,365
Balance, shares at Dec. 31, 2016	37,440,552
Share-based compensation expense				634			634
Exercise of share options and RSUs	$ 1			1,340			1,341
Exercise of share options and RSUs, Shares	483,955
Dividend					(5,001)		(5,001)
Net income					13,962		13,962
Balance, value at Dec. 31, 2017	$ 149		(2,092,376)	78,437	7,613	(1,898)	$ 84,301
Balance, shares at Dec. 31, 2017	37,924,507						35,832,131
Share-based compensation expense				394			$ 394
Exercise of share options and RSUs		[1]		989			989
Exercise of share options and RSUs, Shares	352,658
Dividend					(5,063)		(5,063)
Net income					7,865		7,865
Balance, value at Jun. 30, 2018	$ 149		$ (2,092,376)	$ 79,820	$ 10,415	$ (1,898)	$ 88,486
Balance, shares at Jun. 30, 2018	38,277,165						36,184,789
[1]	Less than $1 thousand

Interim Unaudited Condensed Co6

Interim Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Cash flows from operating activities:
Net income (loss)	$ 4,331	$ (3,877)	$ 7,865	$ (578)	$ 13,962
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	471	520	962	1,016	2,122
Deferred tax expense (benefit)	526	(5,470)	759	(5,470)	6
Share based compensation expense	249	114	394	229	634
Loss on disposal of fixed assets	24		324
Changes in operating assets and liabilities:
Trade accounts receivable, net	(8,944)	(1,744)	(9,363)	1,027	(484)
Inventories	(1,983)	(2,145)	(2,845)	(4,655)	(5,323)
Due (to) from affiliates, net	24	(318)	346	(385)	(699)
Other current assets	17	1,126	100	533	(378)
Trade accounts payable	2,660	(36)	4,672	2,211	198
Other current liabilities	1,655	1,486	(843)	1,586	2,673
Liability in respect of settlement		13,000		13,000
Liability for employee severance benefits, net	(15)	61	32	261	171
Net cash provided by (used in) operating activities of continued operations	(985)	2,717	2,403	8,775	12,882
Cash provided by (used in) operating activities of discontinued operations		1,087		948	(11,247)
Net cash provided by (used in) operating activities	(985)	3,804	2,403	9,723	1,635
Cash flows from investing activities:
Proceeds from disposal of fixed assets	76		76
Purchase of fixed assets	(836)	(974)	(1,148)	(2,152)	(3,138)
Purchase of intangible assets	(10)	(13)	(35)	(20)	(84)
Net cash used in investing activities from continuing operations	(770)	(987)	(1,107)	(2,172)	(3,222)
Cash used in (provided by) investing activities of discontinued operations		(14)		(19)	29,854
Net cash provided by (used in) investing activities	(770)	(1,001)	(1,107)	(2,191)	26,632
Cash flows from financing activities:
Proceeds from exercise of share options and RSUs	615	182	989	182	1,341
Dividend payment	(5,063)		(5,063)		(5,001)
Net cash provided by (used in) financing activities from continuing activities	(4,448)	182	(4,074)	182	(3,660)
Net cash provided by (used in) financing activities	(4,448)	182	(4,074)	182	(3,660)
Effect of change in exchange rate on cash and cash equivalents	235	(140)	238	(332)	(603)
Net increase (decrease) in cash and cash equivalents	(5,968)	2,845	(2,540)	7,382	24,004
Cash and cash equivalents at beginning of the period	47,172	24,277	43,744	19,740	19,740
Cash and cash equivalents at end of the period	$ 41,204	$ 27,122	41,204	27,122	$ 43,744
Supplementary cash flows information:
Interest paid
Income taxes paid			$ 112	$ 696

Nature of Operations

Nature of Operations	6 Months Ended
	Jun. 30, 2018
Nature of Operations [Abstract]
Nature of Operations	Note 1 - Nature of Operations Camtek Ltd. (“Camtek” or “Company”), an Israeli corporation, is controlled by (43.30%) Priortech Ltd. (“Parent”), an Israeli corporation listed on the Tel-Aviv Stock Exchange. Camtek provides automated and technologically advanced solutions dedicated to enhancing production processes, increasing products yield and reliability, and enabling and supporting customers’ latest technologies in the semiconductor fabrication industry. In September 2017, the Company completed the sale of its PCB inspection and metrology business unit. The Buyers acquired all of the assets and liabilities related to the PCB business unit, including 100% equity interests in the Company’s Chinese and Taiwanese subsidiaries. The Company received a total cash consideration of $32,000 thousand and may receive an additional amount of up to $3,000 thousand conditioned upon the PCB business unit's revenues in 2018. The Company records the contingent consideration portion of the arrangement when the consideration is determined to be realizable. As of June 30, 2018, no asset with respect of contingent consideration was recognized. Due to the sale of the Company’s PCB business, the results of this unit ceased to be consolidated into these financial statements and are accounted as discontinued operations in the prior periods.

Basis of Preparation

Basis of Preparation	6 Months Ended
	Jun. 30, 2018
Basis of Preparation [Abstract]
Basis of Preparation	Note 2 - Basis of Preparation A. Statement of compliance The accompanying unaudited condensed consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and do not include all of the information required for full annual financial statements. The unaudited condensed consolidated interim statements should be read in conjunction with the Company’s 2017 annual audited consolidated financial statements and footnotes, which were filed with the U.S. Securities and Exchange Commission as part of the Company’s annual report on Form 20-F for the year ended December 31, 2017. In the opinion of management of the Company, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six-month periods ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ended December 31, 2018 or for any other future period. B. Recent Accounting Pronouncements Effective January 1, 2017, the Company adopted ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory.” This simplifies subsequent measurement of inventory by having an entity measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable cost of completion, disposal, and transportation. The adoption of ASU 2015-11 did not have any impact on the Company's consolidated financial position, results of operations, and cash flows. In May 2017, the FASB issued ASU No. 2017-09, “Compensation - Stock Compensation (Topic718): Scope of Modification Accounting.” This ASU amends the scope of modification accounting for share-based payment arrangements and provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company chose to adopt ASU No. 2017-09 early and the adoption did not have any impact on the Company's consolidated financial position, results of operations, and cash flows. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This ASU provides guidance on statement of cash flows presentation for eight specific cash flow issues where diversity in practice exists. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The adoption did not have any impact on the Company's consolidated financial position, results of operations, and cash flows. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” This ASU requires that lessees will be required to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. ASU No. 2016-02 also will require disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative information. This ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018 with earlier adoption permitted. The expected impact for the Company is an increase in property, plant and equipment and in financial liabilities. In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. ASU 2014-09 became effective for the Company beginning in the first quarter of 2018. Subsequently, the FASB issued the following standards related to ASU 2014-09: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (“ASU 2016-08”); ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (“ASU 2016-10”); and ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”). The Company must adopt ASU 2016-08, ASU 2016-10 and ASU 2016-12 with ASU 2014-09 (collectively, the “New Revenue Standards”) commencing the first quarter of 2018. The Company adopted the New Revenue Standards in the first quarter of 2018 retrospectively with the cumulative effect recognized as of the date of adoption. The Company analyzed the impact of the New Revenue Standards on its contract portfolio by reviewing its current accounting policies and practices to identify potential differences that would result from applying the requirements of the New Revenue Standards to its revenue contracts. In addition, the Company identified and implemented appropriate changes to its business processes and related policies to support recognition and disclosure under the New Revenue Standards. The Company’s revenues are based on signed contracts or customer purchase orders accepted by the Company. There is no change in this position with regards to identifying the contract with the customer. The Company has identified that the only performance obligation in its contracts, distinct from the provision of a machine, installation and standard warranty, is in the case of an extended warranty which is included in the minority of contracts. The Company defers revenues in respect of extended warranty, when applicable, using observable stand-alone selling prices of annual service contracts in each geographical market and stand-alone selling prices of machine contract. The deferred revenue related to the extended warranty is calculated according to fair value relations. The ratio of annual service contract to machine price is calculated and updated annually. This was also the practice under ASC 605-25. In the six-month period to June 30, 2018, the Company recognized $170 of previously deferred revenues in respect of extended warranties. The Company has determined that whilst its machines are customized to the requirements of specific customers, there are no practical or contractual restrictions from transferring the machine to a different customer at little additional cost. As such, they have an alternative use and should recognize revenue at a point in time, that is, upon installation. The cumulative effect of adopting the New Revenue Standards on the Company’s revenues and operating income is not material, as the analysis of the Company’s contracts under the New Revenue Standards supports the recognition of revenue at a point in time for the majority of its contracts, which is consistent with its current revenue recognition model. Revenue on the majority of the Company’s contracts will continue to be recognized upon delivery because this represents the point in time at which control is transferred to the customer. Revenues derived from performance obligations such as warranty and service contracts will continue to be recognized over the period of the service. In addition, the number of the Company’s performance obligations under the New Revenue Standards is not materially different from the Company’s contract elements under the existing standard. Finally, the accounting for the estimate of variable consideration is not materially different compared to the Company’s current practice. The adoption did not have a material impact on the Company's consolidated balance sheet.

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Jun. 30, 2018
Shareholders' Equity [Abstract]
Shareholders' Equity	Note 3 - Shareholders’ Equity A. General The Company shares are traded on the NASDAQ Global Market under the symbol of CAMT, and also listed and traded on the Tel-Aviv stock exchange. B. Changes in Stock Options In the second quarter of 2018, 226,509 share options were exercised. In June 2018, 1,034,934 Restricted Share Units (RSUs) were granted by the Company. The RSUs vest over a four-year period. Of this grant, 448,035 RSUs vest based on performance milestones. In 2017, 154,600 stock options and 86,500 Restricted Share Units (RSUs) were granted by the Company. The options and the RSUs vest over a four-year period.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2018
Segment Information [Abstract]
Segment Information	Note 4 – Segment Information Substantially all fixed assets are located in Israel and substantially all revenues are derived from shipments to other countries. Revenues are attributable to geographic areas/countries based upon the destination of shipment of products and related services as follows: Six months ended June 30, Year ended December 31, 2018 2017 2017 U.S. Dollars (in thousands) Asia Pacific 44,280 38,417 79,105 United States 6,682 3,009 9,484 Europe 6,774 2,402 4,896 57,736 43,828 93,485

Supplementary Financial Stateme

Supplementary Financial Statements Information	6 Months Ended
	Jun. 30, 2018
Supplementary Financial Statements Information
Supplementary Financial Statements Information	Note 5 - Supplementary Financial Statements Information A. Cash and cash equivalents The Company’s cash and cash equivalent balance at June 30, 2018 and December 31, 2017 is denominated in the following currencies: June 30, December 31, 2018 2017 U.S. Dollars (in thousands) US Dollars 35,327 36,636 New Israeli Shekels 2,500 1,122 Euro 1,831 3,603 Other currencies 1,546 2,383 41,204 43,744 B. Inventories June 30, December 31, 2018 2017 U.S. Dollars (in thousands) Components 10,756 9,690 Work in process 4,976 6,584 Finished products (including systems at customer locations not yet sold) 9,427 6,445 25,159 22,719 Inventories are presented in: June 30, December, 31 2018 2017 U.S. Dollars (in thousands) Current assets 23,693 21,336 Long-term assets 1,466 1,383 25,159 22,719 C. Other Current Assets June 30, December 31, 2018 2017 U.S. Dollars (in thousands) Due from Government institutions 1,478 607 Prepaid expenses 513 561 Due from related parties 335 681 Other* 443 *1,366 2,769 3,215 *Includes an amount of $571 due from sale of PCB business D. Property, Plant and Equipment, Net June 30, December, 31 2018 2017 U.S. Dollars (in thousands) Land 863 863 Building 13,469 13,307 Machinery and equipment 6,376 6,406 Office furniture and equipment 587 758 Computer equipment and software 4,061 4,310 Automobiles 87 87 Leasehold improvements 573 353 26,016 26,084 Less accumulated depreciation 10,285 10,581 15,731 15,503 E. Intangible Assets, Net June 30, December, 31 2018 2017 U.S. Dollars (in thousands) Patent registration costs 1,549 1,513 Accumulated amortization and impairment 1,069 1,031 Total intangible asset, net 480 482 F. Other Current Liabilities June 30, December, 31 2018 2017 U.S. Dollars (in thousands) Accrued employee compensation and related benefits 6,006 6,248 Commissions 6,483 4,204 Accrued warranty costs 1,531 1,300 Accrued expenses 1,290 1,306 Advances from customers and deferred revenues 798 3,589 Government institutions 444 748 16,552 17,395

Statements of Operations

Statements of Operations	6 Months Ended
	Jun. 30, 2018
Income Statement Related Disclosures [Abstract]
Statements of Operations	Note 6 - Statements of Operations A. Selling, general and administrative expenses Six months ended June 30, 2018 2017 U.S. Dollars (in thousands) Selling (1) 9,379 6,722 General and administrative 3,285 4,437 12,664 11,159 (1) Including shipping and handling costs 504 271 B. Financial income (expenses), net Six months ended June 30, 2018 2017 U.S. Dollars (in thousands) Interest income 220 15 Other, net (*) 216 (224 ) 436 (209 ) (*) Other, net includes foreign currency income (expense) resulting from transactions not denominated in U.S. Dollars amounting to $261, and $(150) in 2018 and 2017, respectively.

Balances and Transactions with

Balances and Transactions with Related Parties	6 Months Ended
	Jun. 30, 2018
Balances and Transactions with Related Parties [Abstract]
Balances and Transactions with Related Parties	Note 7 - Balances and Transactions with Related Parties A. Balances with related parties: June 30, December 31, 2018 2017 U.S. Dollars (in thousands) Due from affiliated companies 335 681 B. Transactions with related parties: Six months ended June 30, 2018 2017 U.S. Dollars (in thousands) Purchases from Priortech and affiliates - (13 ) Interest income from Priortech 62 15 Unpaid balances between Priortech and its subsidiaries in Israel and the Company bear interest of 5.5%.

Discontinued Operations

Discontinued Operations	6 Months Ended
	Jun. 30, 2018
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	Note 8 – Discontinued Operations Further to that mentioned in Note 1, in 2017 the sale of the Company’s PCB business unit was completed. The Company received a gross amount of $ 32 million as a result of the acquisition, from which an amount of $2 million was deducted in respect of acquisition expenses and working capital adjustments. As a result of the sale the Company recognized a capital gain in the amount of $ 12.8 million. Accordingly, the activities of the PCB business have been segregated and reported as discontinued operations in the consolidated statements of operations for the comparative periods presented. The following table presents a reconciliation of the major classes of line items constituting pretax profit of discontinued Six months ended June 30, Three months ended June 30, Year ended December 31, 2017 2017 2017 U.S. dollars U.S. dollars U.S. dollars Revenues from discontinued operations 21,299 11,663 36,447 Cost of revenues 12,726 7,593 21,368 Gross profit from discontinued operations 8,573 4,070 15,079 Research and development costs 1,856 957 3,228 Selling, general and administrative expenses 2,234 1,080 6,260 Financial expenses, net (144 ) (52 ) (96 ) Gain on sale of discontinued operation - - 12,807 Income from discontinued operations before taxes 4,339 1,981 18,302 Income tax (505 ) (194 ) (6,028 ) Income from discontinued operations 3,834 1,787 12,274

Basis of Preparation (Policies)

Basis of Preparation (Policies)	6 Months Ended
	Jun. 30, 2018
Basis of Preparation [Abstract]
Statement of compliance	A. Statement of compliance The accompanying unaudited condensed consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and do not include all of the information required for full annual financial statements. The unaudited condensed consolidated interim statements should be read in conjunction with the Company’s 2017 annual audited consolidated financial statements and footnotes, which were filed with the U.S. Securities and Exchange Commission as part of the Company’s annual report on Form 20-F for the year ended December 31, 2017. In the opinion of management of the Company, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six-month periods ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ended December 31, 2018 or for any other future period.
Recent Accounting Pronouncements	B. Recent Accounting Pronouncements Effective January 1, 2017, the Company adopted ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory.” This simplifies subsequent measurement of inventory by having an entity measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable cost of completion, disposal, and transportation. The adoption of ASU 2015-11 did not have any impact on the Company's consolidated financial position, results of operations, and cash flows. In May 2017, the FASB issued ASU No. 2017-09, “Compensation - Stock Compensation (Topic718): Scope of Modification Accounting.” This ASU amends the scope of modification accounting for share-based payment arrangements and provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company chose to adopt ASU No. 2017-09 early and the adoption did not have any impact on the Company's consolidated financial position, results of operations, and cash flows. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This ASU provides guidance on statement of cash flows presentation for eight specific cash flow issues where diversity in practice exists. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The adoption did not have any impact on the Company's consolidated financial position, results of operations, and cash flows. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” This ASU requires that lessees will be required to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. ASU No. 2016-02 also will require disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative information. This ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018 with earlier adoption permitted. The expected impact for the Company is an increase in property, plant and equipment and in financial liabilities. In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. ASU 2014-09 became effective for the Company beginning in the first quarter of 2018. Subsequently, the FASB issued the following standards related to ASU 2014-09: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (“ASU 2016-08”); ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (“ASU 2016-10”); and ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”). The Company must adopt ASU 2016-08, ASU 2016-10 and ASU 2016-12 with ASU 2014-09 (collectively, the “New Revenue Standards”) commencing the first quarter of 2018. The Company adopted the New Revenue Standards in the first quarter of 2018 retrospectively with the cumulative effect recognized as of the date of adoption. The Company analyzed the impact of the New Revenue Standards on its contract portfolio by reviewing its current accounting policies and practices to identify potential differences that would result from applying the requirements of the New Revenue Standards to its revenue contracts. In addition, the Company identified and implemented appropriate changes to its business processes and related policies to support recognition and disclosure under the New Revenue Standards. The Company’s revenues are based on signed contracts or customer purchase orders accepted by the Company. There is no change in this position with regards to identifying the contract with the customer. The Company has identified that the only performance obligation in its contracts, distinct from the provision of a machine, installation and standard warranty, is in the case of an extended warranty which is included in the minority of contracts. The Company defers revenues in respect of extended warranty, when applicable, using observable stand-alone selling prices of annual service contracts in each geographical market and stand-alone selling prices of machine contract. The deferred revenue related to the extended warranty is calculated according to fair value relations. The ratio of annual service contract to machine price is calculated and updated annually. This was also the practice under ASC 605-25. In the six-month period to June 30, 2018, the Company recognized $170 of previously deferred revenues in respect of extended warranties. The Company has determined that whilst its machines are customized to the requirements of specific customers, there are no practical or contractual restrictions from transferring the machine to a different customer at little additional cost. As such, they have an alternative use and should recognize revenue at a point in time, that is, upon installation. The cumulative effect of adopting the New Revenue Standards on the Company’s revenues and operating income is not material, as the analysis of the Company’s contracts under the New Revenue Standards supports the recognition of revenue at a point in time for the majority of its contracts, which is consistent with its current revenue recognition model. Revenue on the majority of the Company’s contracts will continue to be recognized upon delivery because this represents the point in time at which control is transferred to the customer. Revenues derived from performance obligations such as warranty and service contracts will continue to be recognized over the period of the service. In addition, the number of the Company’s performance obligations under the New Revenue Standards is not materially different from the Company’s contract elements under the existing standard. Finally, the accounting for the estimate of variable consideration is not materially different compared to the Company’s current practice. The adoption did not have a material impact on the Company's consolidated balance sheet.

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2018
Segment Information [Abstract]
Schedule of Revenues by Geographic Area	Revenues are attributable to geographic areas/countries based upon the destination of shipment of products and related services as follows: Six months ended June 30, Year ended December 31, 2018 2017 2017 U.S. Dollars (in thousands) Asia Pacific 44,280 38,417 79,105 United States 6,682 3,009 9,484 Europe 6,774 2,402 4,896 57,736 43,828 93,485

Supplementary Financial State17

Supplementary Financial Statements Information (Tables)	6 Months Ended
	Jun. 30, 2018
Cash and Cash Equivalents [Abstract]
Cash and Cash Equivalents, Currencies	The Company’s cash and cash equivalent balance at June 30, 2018 and December 31, 2017 is denominated in the following currencies: June 30, December 31, 2018 2017 U.S. Dollars (in thousands) US Dollars 35,327 36,636 New Israeli Shekels 2,500 1,122 Euro 1,831 3,603 Other currencies 1,546 2,383 41,204 43,744
Schedule of Inventories	June 30, December 31, 2018 2017 U.S. Dollars (in thousands) Components 10,756 9,690 Work in process 4,976 6,584 Finished products (including systems at customer locations not yet sold) 9,427 6,445 25,159 22,719
Balance Sheet Presentation of Inventories	June 30, December, 31 2018 2017 U.S. Dollars (in thousands) Current assets 23,693 21,336 Long-term assets 1,466 1,383 25,159 22,719
Other Current Assets	June 30, December 31, 2018 2017 U.S. Dollars (in thousands) Due from Government institutions 1,478 607 Prepaid expenses 513 561 Due from related parties 335 681 Other* 443 *1,366 2,769 3,215 *Includes an amount of $571 due from sale of PCB business
Schedule of Property, Plant and Equipment, Net	June 30, December, 31 2018 2017 U.S. Dollars (in thousands) Land 863 863 Building 13,469 13,307 Machinery and equipment 6,376 6,406 Office furniture and equipment 587 758 Computer equipment and software 4,061 4,310 Automobiles 87 87 Leasehold improvements 573 353 26,016 26,084 Less accumulated depreciation 10,285 10,581 15,731 15,503
Schedule of Intangible Assets, Net	June 30, December, 31 2018 2017 U.S. Dollars (in thousands) Patent registration costs 1,549 1,513 Accumulated amortization and impairment 1,069 1,031 Total intangible asset, net 480 482
Schedule of Other Current Liabilities	June 30, December, 31 2018 2017 U.S. Dollars (in thousands) Accrued employee compensation and related benefits 6,006 6,248 Commissions 6,483 4,204 Accrued warranty costs 1,531 1,300 Accrued expenses 1,290 1,306 Advances from customers and deferred revenues 798 3,589 Government institutions 444 748 16,552 17,395

Statements of Operations (Table

Statements of Operations (Tables)	6 Months Ended
	Jun. 30, 2018
Income Statement Related Disclosures [Abstract]
Selected Selling, General and Administrative Expenses Data	Six months ended June 30, 2018 2017 U.S. Dollars (in thousands) Selling (1) 9,379 6,722 General and administrative 3,285 4,437 12,664 11,159 (1) Including shipping and handling costs 504 271
Selected Financial Income (Expenses) Data	Six months ended June 30, 2018 2017 U.S. Dollars (in thousands) Interest income 220 15 Other, net (*) 216 (224 ) 436 (209 ) (*) Other, net includes foreign currency income (expense) resulting from transactions not denominated in U.S. Dollars amounting to $261, and $(150) in 2018 and 2017, respectively.

Balances and Transactions wit19

Balances and Transactions with Related Parties (Tables)	6 Months Ended
	Jun. 30, 2018
Balances and Transactions with Related Parties [Abstract]
Schedule of Related Party Balances and Transactions	A. Balances with related parties: June 30, December 31, 2018 2017 U.S. Dollars (in thousands) Due from affiliated companies 335 681 B. Transactions with related parties: Six months ended June 30, 2018 2017 U.S. Dollars (in thousands) Purchases from Priortech and affiliates - (13 ) Interest income from Priortech 62 15 Unpaid balances between Priortech and its subsidiaries in Israel and the Company bear interest of 5.5%.

Discontinued Operations (Tables

Discontinued Operations (Tables)	6 Months Ended
	Jun. 30, 2018
Discontinued Operations and Disposal Groups [Abstract]
Schedule of Discontinued Operation	The following table presents a reconciliation of the major classes of line items constituting pretax profit of discontinued Six months ended June 30, Three months ended June 30, Year ended December 31, 2017 2017 2017 U.S. dollars U.S. dollars U.S. dollars Revenues from discontinued operations 21,299 11,663 36,447 Cost of revenues 12,726 7,593 21,368 Gross profit from discontinued operations 8,573 4,070 15,079 Research and development costs 1,856 957 3,228 Selling, general and administrative expenses 2,234 1,080 6,260 Financial expenses, net (144 ) (52 ) (96 ) Gain on sale of discontinued operation - - 12,807 Income from discontinued operations before taxes 4,339 1,981 18,302 Income tax (505 ) (194 ) (6,028 ) Income from discontinued operations 3,834 1,787 12,274

Nature of Operations (Narrative

Nature of Operations (Narrative) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)
Schedule of Equity Method Investments [Line Items]
Ownership percentage	43.30%
PCB [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage	100.00%
Cash payment to be received for sale of discontinued operations	$ 32,000
Additional cash payment to be received for sale of discontinued operations	$ 3,000

Basis of Preparation (Details)

Basis of Preparation (Details)	Jun. 30, 2018USD ($)
Basis of Preparation [Abstract]
Deferred revenues	$ 170

Shareholders' Equity (Narrative

Shareholders' Equity (Narrative) (Details) - shares	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise of share options, shares	226,509
Number of stock options granted			154,600
Vesting period			4 years
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock options granted		1,034,934	86,500
Vesting period		4 years	4 years
Number of stock options vested		448,035

Segment Information (Schedule o

Segment Information (Schedule of Revenues by Geographic Area) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 30,462	$ 22,682	$ 57,736	$ 43,828	$ 93,485
Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues			44,280	38,417	79,105
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues			6,682	3,009	9,484
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues			$ 6,774	$ 2,402	$ 4,896

Supplementary Financial State25

Supplementary Financial Statements Information (Currencies) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 41,204	$ 47,172	$ 43,744	$ 27,122	$ 24,277	$ 19,740
U.S. Dollars [Member]
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	35,327		36,636
New Israeli Shekels [Member]
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	2,500		1,122
Euro [Member]
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	1,831		3,603
Other Currencies [Member]
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 1,546		$ 2,383

Supplementary Financial State26

Supplementary Financial Statements Information (Inventories) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Components	$ 10,756	$ 9,690
Work in process	4,976	6,584
Finished products (including systems at customer locations not yet sold)	9,427	6,445
Total inventories	25,159	22,719
Current assets	23,693	21,336
Long-term assets	$ 1,466	$ 1,383

Supplementary Financial State27

Supplementary Financial Statements Information (Other Current Assets) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets
Due from Government institutions	$ 1,478	$ 607
Prepaid expenses	513	561
Due from related parties	335	681
Other	443	1,366	[1]
Other current assets	$ 2,769	3,215
Due from sale of PCB business		$ 571
[1]	Includes an amount of $571 due from sale of PCB business.

Supplementary Financial State28

Supplementary Financial Statements Information (Property, Plant and Equipment, Net) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 26,016	$ 26,084
Less accumulated depreciation	10,285	10,581
Fixed assets, net	15,731	15,503
Land [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	863	863
Building [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	13,469	13,307
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	6,376	6,406
Office Furniture and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	587	758
Computer equipment and software [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	4,061	4,310
Automobiles [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	87	87
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 573	$ 353

Supplementary Financial State29

Supplementary Financial Statements Information (Intangible Assets, Net) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Patent registration costs	$ 1,549	$ 1,513
Accumulated amortization and impairment	1,069	1,031
Total intangible assets, net	$ 480	$ 482

Supplementary Financial State30

Supplementary Financial Statements Information (Other Current Liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Accounts Payable and Accrued Liabilities, Current [Abstract]
Accrued employee compensation and related benefits	$ 6,006	$ 6,248
Commissions	6,483	4,204
Accrued warranty costs	1,531	1,300
Accrued expenses	1,290	1,306
Advances from customers and deferred revenues	798	3,589
Government institutions	444	748
Total other current liabilities	$ 16,552	$ 17,395

Statements of Operations (Detai

Statements of Operations (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Income Statement Related Disclosures [Abstract]
Selling	[1]			$ 9,379	$ 6,722
General and administrative				3,285	4,437
Total selling, general and administrative expenses		$ 6,775	$ 5,754	12,664	11,159	$ 22,022
Shipping and handling costs				504	271
Interest income				220	15
Other, net	[2]			216	(224)
Financial income (expenses), net		$ 146	$ (56)	436	(209)	$ (150)
Foreign currency income (expense)				$ 261	$ (150)
[1]	Including shipping and handling costs
[2]	Other, net includes foreign currency income (expense) resulting from transactions not denominated in U.S. Dollars amounting to $261, and $(150) in 2018 and 2017, respectively.

Balances and Transactions wit32

Balances and Transactions with Related Parties (Details) - Affiliated Entity [Member] - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Related Party Transaction [Line Items]
Due from affiliated companies	$ 335		$ 681
Purchases from Priortech and affiliates		$ (13)
Interest income from Priortech	$ 62	$ 15
Interest rate, related party	5.50%	5.50%

Discontinued Operations (Narrat

Discontinued Operations (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Dec. 31, 2017
Gain on sale of discontinued operation			$ 12,807
PCB business [Member]
Gross proceeds from sale of discontinued operations			32,000
Acquisition expense deducted from gross proceeds from sale of discontinued operations			2,000
Gain on sale of discontinued operation			$ 12,800

Discontinued Operations (Schedu

Discontinued Operations (Schedule of Discontinued Operation Revenue) (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Discontinued Operations and Disposal Groups [Abstract]
Revenues from discontinued operations			$ 11,663		$ 21,299	$ 36,447
Cost of revenues			7,593		12,726	21,368
Gross profit from discontinued operations			4,070		8,573	15,079
Research and development costs			957		1,856	3,228
Selling, general and administrative expenses			1,080		2,234	6,260
Financial income (expenses), net			(52)		(144)	(96)
Gain on sale of discontinued operation						12,807
Income from discontinued operations before taxes	[1]		1,981		4,339	18,302
Income tax	[1]		(194)		(505)	(6,028)
Income from discontinued operation	[1]		$ 1,787		$ 3,834	$ 12,274
[1]	The financial position of the PCB business is presented as discontinued operations. See also Note 1.