Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2015shares | |
Document and Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2015 |
Entity Registrant Name | NOVA MEASURING INSTRUMENTS LTD |
Entity Central Index Key | 1,109,345 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | FY |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 27,093,937 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 27,733 | $ 13,649 |
Short-term interest-bearing bank deposits | $ 69,298 | 107,289 |
Held for trading securities | 1,995 | |
Trade accounts receivable, net of allowance for doubtful accounts of $124 and $179, respectively | $ 19,046 | 15,566 |
Inventories (Note 4) | 27,683 | 16,107 |
Deferred tax assets (Note 10) | 3,540 | 142 |
Other current assets | 2,677 | 2,928 |
Total current assets | 149,977 | 157,676 |
Long-term assets | ||
Long-term interest-bearing bank deposits | 750 | 750 |
Deferred tax assets (Note 10) | 5,735 | 1,654 |
Other long-term assets | 211 | 169 |
Severance pay funds (Note 7) | 1,514 | 1,580 |
Property and equipment, net (Note 5) | 11,062 | $ 11,450 |
Intangible assets, net (Note 3) | 17,906 | |
Goodwill (Note 3) | 20,114 | |
Total long-term assets | 57,292 | $ 15,603 |
TOTAL ASSETS | 207,269 | 173,279 |
Current liabilities | ||
Trade accounts payable | 14,378 | 11,568 |
Deferred revenues | 5,828 | $ 3,022 |
Deferred tax liabilities (Note 10) | 956 | |
Other current liabilities (Note 6) | 15,996 | $ 12,606 |
Total current liabilities | 37,158 | 27,196 |
Long-term liabilities | ||
Liability for employee severance pay (Note 7) | $ 2,469 | 2,465 |
Deferred revenues | $ 36 | |
Deferred tax liabilities (Note 10) | $ 5,760 | |
Other long-term liability | 822 | |
Total long-term liabilities | $ 9,051 | $ 2,501 |
Commitments and contingencies (Note 8) | ||
TOTAL LIABILITIES | $ 46,209 | $ 29,697 |
SHAREHOLDERS' EQUITY (Note 9) | ||
Ordinary shares, NIS 0.01 par value - authorized 40,000,000 shares 27,093,937 shares issued and outstanding at December 31, 2015 and 27,137,051 shares issued and outstanding at December 31, 2014 | 73 | 73 |
Additional paid-in capital | 123,977 | 118,985 |
Accumulated other comprehensive loss | (114) | (1,177) |
Treasury shares | (11,028) | (6,726) |
Retained earnings | 48,152 | 32,427 |
Total shareholders' equity | 161,060 | 143,582 |
Total liabilities and shareholders' equity | $ 207,269 | $ 173,279 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands | Dec. 31, 2015USD ($)shares | Dec. 31, 2015₪ / shares | Dec. 31, 2014USD ($)shares | Dec. 31, 2014₪ / shares |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||||
Trade accounts receivable, allowance for doubtful accounts | $ | $ 124 | $ 179 | ||
Ordinary shares, par value per share | ₪ / shares | ₪ 0.01 | ₪ 0.01 | ||
Ordinary shares, shares authorized | 40,000,000 | 40,000,000 | ||
Ordinary shares, shares issued | 27,093,937 | 27,137,051 | ||
Ordinary shares, shares outstanding | 27,093,937 | 27,137,051 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||
Products | $ 111,178 | $ 92,208 | $ 89,410 |
Services | 37,336 | 28,410 | 22,099 |
Total revenues | 148,514 | 120,618 | 111,509 |
Cost of revenues: | |||
Products | 50,691 | 39,784 | 37,765 |
Services | 20,743 | 17,221 | 14,673 |
Total cost of revenues: | 71,434 | 57,005 | 52,438 |
Gross profit | 77,080 | 63,613 | 59,071 |
Operating expenses: | |||
Research and development expenses, net (Note 2.0) | 39,703 | 29,498 | 29,578 |
Sales and marketing expenses | 15,967 | 12,747 | 11,963 |
General and administrative expenses | 8,511 | $ 4,457 | $ 5,197 |
Amortization of intangible assets | 1,318 | ||
Total operating expenses | 65,499 | $ 46,702 | $ 46,738 |
Operating income | 11,581 | 16,911 | 12,333 |
Financing income, net | 643 | 563 | 693 |
Income before tax on income | 12,224 | 17,474 | 13,026 |
Income tax expenses (benefit) | (3,501) | (1,178) | 2,511 |
Net income for the year | $ 15,725 | $ 18,652 | $ 10,515 |
Earnings per share: | |||
Basic | $ 0.58 | $ 0.68 | $ 0.39 |
Diluted | $ 0.57 | $ 0.67 | $ 0.38 |
Shares used in calculation of earnings per share: | |||
Basic | 27,185 | 27,447 | 27,091 |
Diluted | 27,510 | 27,807 | 27,373 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Net income for the year | $ 15,725 | $ 18,652 | $ 10,515 |
Other comprehensive income (loss) ("OCI") related to: | |||
Gain (loss) recognized in OCI (Note 13) | (142) | (1,844) | 1,273 |
Gain (loss) reclassified from OCI to income (Note 13) | 1,205 | 126 | (1,181) |
Other compressive income (loss) | 1,063 | (1,718) | 92 |
Total comprehensive income for the year | $ 16,788 | $ 16,934 | $ 10,607 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Ordinary Shares [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Shares [Member] | Retained Earnings [Member] | ||
Balance at Dec. 31, 2012 | $ 114,771 | $ 72 | $ 110,990 | $ 449 | $ 3,260 | |||
Balance, shares at Dec. 31, 2012 | 26,682 | |||||||
Issuance of shares in connection with employee share-based plans | $ 1,191 | [1] | $ 1,191 | |||||
Issuance of shares in connection with employee share-based plans, shares | 513,896 | 514 | ||||||
Issuance of shares upon exercise of options | [1] | [1] | ||||||
Issuance of shares upon exercise of options, shares | 85 | |||||||
Stock based compensation | $ 2,095 | $ 2,095 | ||||||
Other comprehensive income | 92 | $ 92 | ||||||
Net income for the year | 10,515 | $ 10,515 | ||||||
Balance at Dec. 31, 2013 | 128,664 | $ 72 | $ 114,276 | $ 541 | $ 13,775 | |||
Balance, shares at Dec. 31, 2013 | 27,281 | |||||||
Issuance of shares in connection with employee share-based plans | $ 2,586 | $ 1 | $ 2,585 | |||||
Issuance of shares in connection with employee share-based plans, shares | 473,616 | 474 | ||||||
Issuance of shares upon exercise of options | [1] | [1] | ||||||
Issuance of shares upon exercise of options, shares | 22 | |||||||
Stock based compensation | $ 2,124 | $ 2,124 | ||||||
Share repurchase | (6,726) | $ (6,726) | ||||||
Share repurchase, shares | (640) | |||||||
Other comprehensive income | (1,718) | $ (1,718) | ||||||
Net income for the year | 18,652 | $ 18,652 | ||||||
Balance at Dec. 31, 2014 | $ 143,582 | $ 73 | $ 118,985 | $ (1,177) | $ (6,726) | $ 32,427 | ||
Balance, shares at Dec. 31, 2014 | 27,137,051 | 27,137 | ||||||
Issuance of shares in connection with employee share-based plans | $ 2,319 | $ 1 | $ 2,318 | |||||
Issuance of shares in connection with employee share-based plans, shares | 287,928 | 288 | ||||||
Issuance of shares upon exercise of options | [1] | [1] | ||||||
Issuance of shares upon exercise of options, shares | 33 | |||||||
Stock based compensation | $ 2,674 | $ 2,674 | ||||||
Share repurchase | (4,303) | $ (1) | $ (4,302) | |||||
Share repurchase, shares | (364) | |||||||
Other comprehensive income | 1,063 | $ 1,063 | ||||||
Net income for the year | 15,725 | $ 15,725 | ||||||
Balance at Dec. 31, 2015 | $ 161,060 | $ 73 | $ 123,977 | $ (114) | $ (11,028) | $ 48,152 | ||
Balance, shares at Dec. 31, 2015 | 27,093,937 | 27,094 | ||||||
[1] | Less than $1 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income for the year | $ 15,725 | $ 18,652 | $ 10,515 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 4,597 | $ 3,951 | $ 3,522 |
Amortization of acquired intangible assets | $ 5,023 | ||
Loss related to equipment and inventory damage | $ 148 | ||
Stock-based compensation | $ 2,674 | $ 2,124 | $ 2,095 |
Loss (gain) on securities | (10) | 175 | |
Deferred tax assets, net | (5,046) | (1,626) | $ 1,898 |
Increase (decrease) in liability for employee termination benefits, net | 70 | (71) | 17 |
Decrease (increase) in trade accounts receivables | (1,959) | 12,381 | (10,585) |
Decrease (increase) in inventories | (1,949) | 2,226 | (1,783) |
Decrease (increase) in other current and long term assets | 370 | 408 | (1,234) |
Increase (decrease) in trade accounts payables | 1,604 | (4,038) | 4,517 |
Increase in other current liabilities and other long term liabilities | 3,329 | 64 | 3,054 |
Increase (decrease) in short and long term deferred revenues | 1,361 | (703) | (1,173) |
Net cash provided by operating activities | 25,789 | 33,543 | 10,991 |
Cash flows from investment activities: | |||
Decrease (increase) in short-term interest-bearing bank deposits | $ 37,991 | $ (27,737) | (4,513) |
Decrease in long-term interest-bearing bank deposits | (345) | ||
Proceeds from (investments in) short-term available for sale securities | $ 1,617 | $ (1,845) | |
Proceeds from (investments in) short-term held for trading securities | $ 2,005 | $ (1,942) | |
Acquisition of subsidiary, net of acquired cash (Note 3) | $ (45,344) | ||
Reimbursement from insurance claim | $ 219 | ||
Additions to property and equipment | $ (4,373) | $ (5,234) | (4,119) |
Net cash used in investing activities | (9,721) | (33,296) | $ (10,603) |
Cash flows from financing activities: | |||
Purchases of treasury shares | (4,303) | (6,726) | |
Shares issued under employee share-based plans | 2,319 | 2,586 | $ 1,191 |
Net cash provided by (used in) financing activities | (1,984) | (4,140) | 1,191 |
Increase (decrease) in cash and cash equivalents | 14,084 | (3,893) | 1,579 |
Cash and cash equivalents - beginning of year | 13,649 | 17,542 | 15,963 |
Cash and cash equivalents - end of year | $ 27,733 | $ 13,649 | $ 17,542 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2015 | |
GENERAL [Abstract] | |
GENERAL | NOTE 1 - GENERAL A. Business Description: Nova Measuring Instruments Ltd. (the Company) was incorporated in May 1993 and commenced operations in October 1993 in the design, development and production of integrated process control systems, used in the manufacturing of semiconductors. In October 1995, the Company began manufacturing and marketing its systems. In recent years, the Company expanded its product offering to include stand-alone systems. The Company continues research and development for the next generation of its products and additional applications for such products. The Company operates in one operating segment. The Company has wholly owned subsidiaries in the United States of America (the U.S.), Japan, The Netherlands, Taiwan, Korea and Germany. The subsidiaries (the subsidiaries) are engaged in pre-sale activities and providing technical support to customers. On April 2, 2015, the Company completed the acquisition of 100% |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES The Company's consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) in the United States of America. The following is a summary of the significant accounting policies, which were applied in the preparation of these financial statements, on a consistent basis: A. Principles of Consolidation and Basis of Presentation: The Company's consolidated financial statements include the financial statements of the Company and its wholly owned subsidiaries (the Company), after elimination of material intercompany transactions and balances. B. Use of Estimates in the Preparation of Financial Statements: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. C. Financial Statements in U.S. Dollars: The currency of the primary economic environment in which the operations of the Company and its subsidiaries are conducted is the U.S. dollar (the dollar). Accordingly, the Company uses the dollar as its functional and reporting currency. Certain of the dollar amounts in the financial statements may represent the dollar equivalent of other currencies, including the New Israeli Shekel (NIS). Transactions and balances denominated in dollars are presented at their dollar amounts. Non-dollar transactions and balances are re-measured into dollars in accordance with the principles set forth in Accounting Standards Codification Topic No. 830 (ASC 830), Foreign Currency Translation. All transaction gains and losses of the re-measured monetary balance sheet items are reflected in the statements of operations as financial income or expenses, as appropriate. D. Cash and Cash Equivalents: Cash and cash equivalents represent short-term highly liquid investments (mainly interest-bearing deposits) with maturity dates not exceeding three months from the date of deposit. E. Short Term Bank Deposit: Short term bank deposits consist of bank deposits with original maturities of more than three months and up to twelve months. F. Allowance for Doubtful Accounts: The allowance for doubtful accounts is computed on the specific identification basis. G. Business Combination The company accounts for business combination in accordance with ASC No, 805, Business Combination. ASC No. 805 requires recognition of assets acquired and liabilities assumed at the acquisition date, measured at their fair values as of that date. Any access of the fair value of net assets acquired over purchased price and any subsequent changes in estimated contingencies are to be recorded in the consolidated statements of operations H. Held for trading Securities: A financial asset is classified at fair value through profit or loss if it is classified as held for trading or is designated as such upon initial recognition. Attributable transaction costs are recognized in profit or loss as incurred. Financial assets at fair value through profit or loss are measured at fair value, and changes therein are recognized in profit or loss. I. Inventories: Inventories are presented at the lower of cost or market. Cost is determined as follows: Raw materials-on the average cost basis. Finished goods and work in process - on actual production cost basis (materials, labor and indirect manufacturing costs). The Company writes down product inventory, based on slow moving items, and assumptions about future demands, market conditions. J. Property and Equipment Property and equipment are presented at cost, net of accumulated depreciation. Annual depreciation is calculated based on the straight-line method over the shorter of the estimated useful lives of the related assets. Estimated useful life, in years, is as follows: Years Electronic equipment 3 7 Office furniture and equipment 7 15 Leasehold improvements Over the shorter of the term of the lease or the useful life of the asset Deprecation methods, useful lives and residual values are reviewed at the end each reporting year and adjusted if appropriate K. Accrued Warranty Costs: Accrued warranty costs are calculated in respect of the warranty period on the Company's products and are based on the Company's prior experience and in accordance with management's estimate. The estimated future warranty obligations are affected by the warranty periods, install base, labor and other related costs incurred in correcting a product failure. L. Intangible Assets Intangible assets that are not considered to have an indefinite useful life are amortized using mainly the straight-line basis over their estimated useful lives, as noted below. Recoverability of these assets is measured by a comparison of the carrying amount of the asset to the undiscounted future cash flows expected to be generated by the assets. If the assets are considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired assets. Weighted Average Useful Life (Years) Technology 7 Customer relationships 10 Backlog Per occurrence IPR&D (*) Will be determined upon successful launch of the related product. no M. Goodwill Goodwill and certain other purchased intangible assets have been recorded as a result of acquisitions of ReVera. Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill is not amortized, but rather is subject to an impairment test. The Company performs an annual impairment test during the fourth quarter of each fiscal year, or more frequently if impairment indicators are present. The Company operates in one ASC 350, "Intangibles Goodwill and Other", prescribes a two-phase process for impairment testing of goodwill. The first phase screens for impairment, while the second phase (if necessary) measures impairment. Goodwill impairment is deemed to exist if the net book value of a reporting unit exceeds its estimated fair value. In such case, the second phase is then performed, and the Company measures impairment by comparing the carrying amount of the reporting unit's goodwill to the implied fair value of that goodwill. An impairment loss is recognized in an amount equal to the excess. The Company has an option to perform a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount prior to performing the two-step goodwill impairment test. If this is the case, the two-step goodwill impairment test is required. If it is more-likely-than-not that the fair value of a reporting unit is greater than its carrying amount, the two-step goodwill impairment test is not required no N. Revenue Recognition: Revenues from the sale of products are recognized when all the following criteria have been met: a persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed or determinable, collection of resulting receivables is probable and there are no remaining significant obligations. Allocation of arrangement consideration among the separate units of accounting is based on their relative selling prices. The selling price for each unit of accounting is determined based on a selling price hierarchy using either vendor specific objective evidence (VSOE) of selling price, third party evidence of selling price (TPE) or the vendor's best estimate of estimated selling price (ESP) for that deliverable. Use of the residual method is prohibited. The objective of ESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. Revenues from Service contracts generally specify fixed payment amounts for periods longer than one month, and are recognized on a straight line basis over the term of the contract. Deferred revenues include amounts invoiced to customers for which revenue has not yet been recognized. O. Research and Development: Research and development costs are charged to operations as incurred. Amounts received or receivable from the Government of Israel through the Office of the Chief Scientist (OCS) or from the European Community as participation in certain research and development programs are offset against research and development costs. The accrual for grants receivable is determined based on the terms of the programs, provided that the criteria for entitlement are expected to be met. Royalty expenses are determined based on actual revenues and presented in cost of revenues. Research and development grants recognized during the years ended December 31, 2015, 2014 and 2013 were $ 1,237 3,490 1,470 P. Income Taxes: The Company accounts for income taxes utilizing the asset and liability method in accordance with ASC 740, Income Taxes. Current tax liabilities are recognized for the estimated taxes payable on tax returns for the current year. Deferred tax liabilities or assets are recognized for the estimated future tax effects attributable to temporary differences between the income tax bases of assets and liabilities and their reported amounts in the financial statements, and for tax loss carryforwards. Measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax laws, and deferred tax assets are reduced, if necessary, by the amount of tax benefits, the realization of which is not considered more likely than not based on available evidence. ASC 740-10 requires a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50 Q. Share-Based Compensation: The Company accounts for equity based compensation using ASC 718-10 Share-Based Payment, which requires companies to recognize the cost of employee services received in exchange for awards of equity instruments based upon the grant-date fair value of those awards. Stock Options Under ASC 718, the fair market value of each option grant is estimated on the date of grant using the Black-Scholes option pricing method with the following weighted-average assumptions: 2 0 1 5 2 0 1 4 2 0 1 3 Risk-free interest rate 1.41 1.61 1.35 Expected life of options 4.62 years 4.75 4.75 Expected volatility 35.67 45.29 68.13 Expected dividend yield 0 0 0 R. Earnings per Share: Earnings per share are presented in accordance with ASC 260-10, Earnings per Share. Pursuant to which, basic earnings per share excludes the dilutive effects of convertible securities and is computed by dividing income (loss) available to common shareholders by the weighted-average number of ordinary shares outstanding for the period, net of treasury shares. Diluted earnings per share reflect the potential dilutive effect of all convertible securities. The number of potentially dilutive securities excluded from diluted earnings per share due to the anti-dilutive effect amounted to 946,829 526,381 939,366 0.58 0.68 0.39 0.57 0.67 0.38 S. Treasury Shares: Treasury shares are recorded at cost and presented as a reduction of shareholders' equity. T. Concentrations of Credit Risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, bank deposits, trade receivables and foreign currency derivative contracts. The majority of the Company's cash and cash equivalents and bank deposits are invested in dollar instruments with major banks in Israel. Management believes that the financial institutions that hold the Company's investments are corporations with high credit standing. Accordingly, management believes that low credit risk exists with respect to these financial investments U. Fair Value Measurements: The fair values of the Company cash and cash equivalents, accounts receivable, and accounts payable approximate their carrying amounts due to their short-term nature. The estimated fair values of the derivative instruments are calculated based on market rates to settle the instruments. These values represent the estimated amounts the Company would receive upon sale or pay upon transfer, taking into consideration current market rates. The Company calculate derivative asset and liability amounts using a variety of valuation techniques, depending on the specific characteristics of the hedging instrument, taking into account credit risk. The fair value of the Company derivative contracts (including forwards and options) is determined using standard valuation models. The significant inputs used in these models are readily available in public markets or can be derived from observable market transactions and, therefore, the Company derivative contracts have been classified as Level 2. Inputs used in these standard valuation models include the applicable spot, forward, and discount rates. The standard valuation model for the Company option contracts also includes implied volatility, which is specific to individual options and is based on rates quoted from a widely used third-party resource. V. Derivative Financial Instruments: ASC 815 requires the presentation of all derivatives as either assets or liabilities on the balance sheet and the measurement of those instruments at fair value. For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item, if any, is recognized in current earnings during the period of change. See Note 13 for disclosure of the derivative financial instruments in accordance with such pronouncements. W. Impairment of Long-Lived Assets: Long-lived assets, held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets (or asset Company) may not be recoverable. In the event that the sum of the expected future cash flows (undiscounted and without interest charges) of the long-lived assets is less than the carrying amount of such assets, an impairment charge would be recognized, and the assets (or asset Company) would be written down to their estimated fair values. The Company performed an impairment review and did not identify any indicators. X. New Accounting Pronouncements: In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers. The standard provides companies with a single model for accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance. The guidance permits companies to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. In August 2015, the FASB issued ASU 2015-14, Deferral of the Effective date, which defers the required adoption date of ASU 2014-09 by one year. As a result of the deferred effective date, ASU 2014-09 will be effective for the Company in its first quarter of fiscal 2018. Early adoption is permitted but not before the original effective date of the new standard of the first quarter of fiscal 2017. The Company is currently evaluating the impact of the guidance on its consolidation financial statements. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, to simplify the presentation of deferred taxes. This amendment requires that all deferred tax assets and liabilities, along with any related valuation allowances, be classified as noncurrent on the balance sheet. ASU 2015-17 is effective for annual and interim reporting periods ending after December 15, 2017. Early adoption is permitted, and the new guidance may be applied either prospectively or retrospectively. The Company hasn't adopted this guidance as of December 31, 2015. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330), Simplifying the Measurement of Inventory. This ASU is intended to simplify subsequent measurement of inventory. An entity should measure inventory within a scope of this ASU 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 standard is effective for annual periods and interim periods within those annual periods beginning after December 15, 2016. The Company has not yet selected a transition method nor determined the impact of the new standard on its consolidated financial statements. |
ACQUISITION OF REVERA INC.
ACQUISITION OF REVERA INC. | 12 Months Ended |
Dec. 31, 2015 | |
ACQUISITION OF REVERA INC. [Abstract] | |
ACQUISITION OF REVERA INC. | NOTE 3 On April 2, 2015 (the Closing Date), The Company completed the acquisition of ReVera Inc. (ReVera) The company paid 46,500 2,475 The financial results of ReVera are included in the consolidated financial statements from the closing date. Upon acquisition, ReVera became the Company's wholly-owned subsidiary. The acquisition was accounted for as a business combination. This method requires, among other things, that assets acquired and liabilities assumed in a business combination be recognized at their fair values as of the acquisition date. If new information is obtained within one The Company allocated the Cash and cash equivalents $ 1,158 Net assets excluding cash and cash equivalents 7,991 Deferred tax current assets 563 Deferred tax long-term assets 3,753 Intangible assets 22,929 Goodwill 20,114 Deferred revenues, net (1,409 ) Deferred tax current liabilities (2,122 ) Deferred tax long-term liabilities (6,477 ) Total purchases price $ 46,500 The valuation of intangible assets as of December 31, 2015 were as follows: Original Accumulated Net Carrying Amount Amortization Amount Technology $ 12,305 $ 1,318 $ 10,987 Customer relationships 5,191 199 4,992 Backlog 3,506 3,506 - IPR&D 1,927 - 1,927 $ 22,929 $ 5,023 $ 17,906 Annual amortization expenses are expected as following: Year ending December 31, 2016 $ 2,545 2017 2,561 2018 2,614 2019 2,625 2020 and thereafter 7,561 $ 17,906 Measurement of Fair Values has been calculated using the income approach. The backlog is considered a valuable intangible asset, which can be separately sold . Goodwill generated from the ReVera acquisition is primarily attributable to expected synergies. All goodwill generated during this period is not deductible for tax purposes. The Company incurred acquisition-related expenses of $ 1,979 The following unaudited pro forma information presents the combined results of operations as if the acquisition had been completed on January 1, 2014, the beginning of the comparable prior annual reporting period. The unaudited pro forma results do not reflect any cost saving synergies from operating efficiencies or the effect of the incremental costs incurred in integrating the two companies. Accordingly, these unaudited pro forma results are presented for informational purpose only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the acquisition had occurred at the beginning of the period presented, nor are they indicative of future results of operations. Year ended December 31, 2015 2014 Revenues $ 155,842 $ 151,350 Net income $ 19,328 $ 21,898 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2015 | |
INVENTORIES [Abstract] | |
INVENTORIES | NOTE 4 - INVENTORIES A. Composition: As of December 31, 2 0 1 5 2014 Raw materials $ 6,649 $ 3,148 Work in process 12,932 7,656 Finished goods 8,102 5,303 $ 27,683 $ 16,107 B. In the years ended December 31, 2015, 2014 and 2013, the Company wrote-off inventories in a total amount of $ 2,551 1,554 1,824 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2015 | |
PROPERTY AND EQUIPMENT, NET [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 5 - PROPERTY AND EQUIPMENT, NET As of December 31, 2 0 1 5 2 0 1 4 Cost: Electronic equipment $ 24,718 $ 21,716 Office furniture and equipment 1,648 1,159 Leasehold improvements 6,303 4,555 32,669 27,430 Accumulated depreciation: Electronic equipment 17,150 13,244 Office furniture and equipment 1,298 882 Leasehold improvements 3,159 1,854 21,607 15,980 Net book value $ 11,062 $ 11,450 |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2015 | |
OTHER CURRENT LIABILITIES [Abstract] | |
OTHER CURRENT LIABILITIES | NOTE 6 - OTHER CURRENT LIABILITIES A. Consists of: As of December 31, 2 0 1 5 2 0 1 4 Accrued salaries and fringe benefits $ 8,056 $ 6,905 Accrued warranty costs (See B below) 3,883 2,356 Governmental institutions 3,338 1,431 Other 719 1,914 $ 15,996 $ 12,606 B. Accrued Warranty Costs: The Company provides standard warranty coverage on its systems. Parts and labor are covered under the terms of the warranty agreement. The Company accounts for the estimated warranty cost as a charge to costs of revenues when revenue is recognized. The following table provides the changes in the product warranty accrual for the fiscal years ended December 31, 2015 and 2014: As of December 31, 2 0 1 5 2 0 1 4 Balance as of beginning of year $ 2,356 $ 2,402 Acquisition of ReVera 973 - Services provided under warranty (4,221 ) (2,428 ) Changes in provision 4,775 2,382 Balance as of end of year $ 3,883 $ 2,356 |
LIABILITY FOR EMPLOYEE SEVERANC
LIABILITY FOR EMPLOYEE SEVERANCE PAY, NET | 12 Months Ended |
Dec. 31, 2015 | |
LIABILITY FOR EMPLOYEE SEVERANCE PAY, NET [Abstract] | |
LIABILITY FOR EMPLOYEE SEVERANCE PAY, NET | NOTE 7 - LIABILITY FOR EMPLOYEE SEVERANCE PAY, NET Israeli law and labor agreements determine the obligations of the Company to make severance payments to dismissed employees and to employees leaving employment under certain other circumstances. The obligation for severance pay benefits, as determined by Israeli law, is based upon length of service and the employee's most recent salary. The liability is partially covered through insurance policies purchased by the Company and deposits in a severance fund. The deposited funds include profits accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israel's Severance Pay Law, 1963 or labor agreements. Since July 2008, the Company's agreements with new Israeli employees are under Section 14 of the Israeli Severance Pay Law, 1963. The Company's contributions for severance pay have replaced its severance obligation. Upon contribution of the full amount of the employee's monthly salary for each year of service, no additional calculations are conducted between the parties regarding the matter of severance pay and no additional payments are made by the Company to the employee. Severance pay expenses for the years ended December 31, 2015, 2014 and 2013, amounted to $ 94 6 63 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2015 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 8 - COMMITMENTS AND CONTINGENCIES A. 3.5 5 5 100 The place of manufacturing of a product that was developed with the support of the OCS, or based on know-how developed with the support of the OCS, shall be according to the supported Company's declaration in the application for support (including manufacturing abroad). In case the Company wishes to transfer its manufacturing activities abroad, in addition to their statement in the application for support, they will be required to receive approval from the OCS research committee. The committee is entitled to increase both the royalty liability and the rate of the royalty payments. The increased repayment is calculated according to the percentage of the manufacturing activities that are intended to be carried out outside Israel, and can reach up to 300 1 As of December 31, 2015 the Company has received grants in the aggregate amount of $ 24,341 22,940 As of December 31, 2015, the Company has paid or accrued royalties to the OCS in the amount of $ 7,926 6,670 Royalty expense amounted to $ 1,255 1,019 787 23,959 22,605 B. The Company rents its facilities under various operating lease agreements, which expire on various dates, the latest of which is in Year 2016 $ 1,725 2017 1,199 2018 1,199 2019 1,199 2020 $ 1,199 Rental expense for the facilities amounted to $ 1,781 1,594 1,344 750 C. The Company is obligated under certain agreements with its suppliers to purchase specified items of excess inventory which is expected to be utilized in 2016. As of December 31, 2015, non-cancelable purchase obligations were approximately $ 9,588 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2015 | |
SHAREHOLDERS' EQUITY [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 9 - SHAREHOLDERS' EQUITY A. Rights of Shares: Holders of ordinary shares are entitled to participate equally in the payment of cash dividends and bonus shares (stock dividends) and, in the event of the liquidation of the Company, in the distribution of assets after satisfaction of liabilities to creditors. Each ordinary share is entitled to one vote on all matters to be voted on by shareholders. B . Share Repurchase: On March 24, 2014, the Company announced a $ 12 executed in 2014 and 2015. Through December 31, 2015, the Company repurchased 1,003,778 11,028 C. Employee Incentive Plans: The Company's Board of directors approves, from time to time, employee incentive plans, the last of which was approved in October 2007. Employee incentive plans include stock options, restricted stock units and restricted stock awards. Stock Options The following table summarizes the effects of stock-based compensation resulting from the application of ASC 718 included in the Statements of Operations as follows: Year ended December 31, 2 0 1 5 2 0 1 4 2 0 1 3 Cost of Revenues: Products $ 373 $ 375 $ 310 Services 203 178 140 Research and Development expenses 1,085 870 881 Sales and Marketing expenses 744 446 576 General and Administration expenses 269 255 188 Total $ 2,674 $ 2,124 $ 2,095 Stock options vest over four 10 Through December 31, 2015, 11,360,926 5,109,607 4,494,149 689,369 The weighted average fair value (in dollars) of the options granted during 2015, 2014 and 2013, according to Black-Scholes option-pricing model, amounted to $ 3.76 4.31 4.93 Summary of the status of the Company's share option plans as of December 31, 2015, 2014 and 2013, as well as changes during each of the years then ended, is presented below: 2 0 1 5 2 0 1 4 2 0 1 3 Share Options Weighted Average Exercise Price Share Options Weighted Average Exercise Price Share Options Weighted Average Exercise Price Outstanding - beginning of year 1,534,642 8.90 1,707,702 7.48 1,844,347 5.75 Granted 625,959 11.67 392,879 10.77 383,537 8.87 Exercised 287,928 8.06 473,616 5.48 513,896 2.34 Cancelled 115,503 10.01 92,323 8.09 6,286 5.73 Outstanding - year end 1,757,170 9.95 1,534,642 8.9 1,707,702 7.48 Options exercisable at year-end 689,369 8.66 644,685 8.11 738,915 6.35 The aggregate intrinsic value represents the total intrinsic value (the difference between the Company's closing stock price on the last trading day of the fiscal year and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on the last trading day of the fiscal year. This amount changes based on the fair market value of the Company's shares. The total intrinsic value of options outstanding as of December 31, 2015 and 2014 was $ 1,259 2,508 979 1,508 505 2,328 3,856 Range of Exercise Prices Number Weighted Average Contractual Weighted Average Number Weighted Average (US dollars) (in years) (US dollars) (US dollars) 0.93 1.25 17,806 3.34 1.23 17,806 1.23 4.20 6.70 62,319 3.59 5.91 62,319 5.91 7.40 7.91 164,677 3.58 7.82 107,221 7.82 8.38 8.89 437,380 4.11 8.66 293,066 8.60 9.04 9.58 54,417 4.15 9.07 26,329 9.08 10.08 10.93 357,930 5.26 10.28 123,878 10.47 11.39 12.46 662,641 6.02 11.84 58,750 11.66 1,757,170 689,369 Unrecognized Compensation Expense As of December 31, 2015, there was $ 2,106 1,801 four Restricted Share Units Restricted Share Units (RSU) grants are rights to receive shares of the Company's common stock on a one-for-one basis and vest 25 644,094 376,623 14,682 451,647 343,718 9,609 406,940 320,973 5,442 The number of RSU's issued in 2015, 2014 and 2013 was 192,447 44,707 60,321 11.51 10.08 8.98 322 236 833 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2015 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | NOTE 10 - INCOME TAXES A. Income Tax Regulations (Rules on Bookkeeping by Foreign Invested Companies and Certain Partnerships and Determination of their Taxable Income), 1986: As a "Controller Foreign Cooperation" (as defined in the Israeli Law for the Encouragement of Capital Investments-1959), the Company's management has elected to apply Income Tax Regulations (Rules for Maintaining Accounting Records of Foreign Invested Companies and Certain Partnerships and Determining Their Taxable Income) - 1986. Accordingly, its taxable income or loss is calculated in US Dollars. B. Law for the Encouragement of Capital Investments - 1959: Part of the Company's investment in equipment has received approvals in accordance with the Law for the Encouragement of Capital Investments, 1959 (Approved Enterprise status) in three separate investment plans. The Company has chosen to receive its benefits through the Alternative Benefits track, and, as such, is eligible for various benefits. These benefits include accelerated depreciation of fixed assets used in the investment program, as well as a full tax exemption on undistributed income in relation to income derived from the first plan for a period of 4 2 25 3 5 On April 1, 2005, an amendment to the Investment Law came into effect (the Amendment) and has significantly changed the provisions of the Investment Law. The Amendment limits the scope of enterprises which may be approved by the Investment Center by setting criteria for the approval of a facility as a Privileged Enterprise, such as provisions generally requiring that at least 25 The entitlement to the above benefits is conditional upon the Company fulfilling the conditions stipulated by the above law, regulations published thereunder and the instruments of approval for the specific investments in "Approved Enterprises". In the event of failure to comply with these conditions, the benefits may be canceled and the Company may be required to refund the amount of the benefits, in whole or in part, including interest. In the event of distribution by the Company of a cash dividend out of retained earnings that were tax exempt due to its Approved Enterprise status, the Company would have to pay corporate tax of 10 25 15 The Company has not provided deferred taxes on future distributions of tax-exempt earnings, as the Company intends to reinvest any income derived from its Approved Enterprise program and not to distribute such income as a dividend. Accordingly, such earnings have been considered to be permanently reinvested. In 2011, new legislation amending to the Investment Law was adopted. Under this new legislation, a uniform corporate tax rate will apply to all qualifying income of certain Industrial Companies (Requirement of a minimum export of 25 10 15 7 12.5 6 12 15 Under the transition provisions of the new legislation, the Company may decide to irrevocably implement the new law while waiving benefits provided under the current law or to remain subject to the current law. In August 2013 "The Arrangements Law" (hereinafter - "the Law") was officially published. The following significant changes affecting taxation were approved: The tax rate on a company in Development area A, effective January 1, 2014 is 9 7 6 16 12.5 12 The tax rate on dividend distributed, generated from "preferred income" or by a company that has an approved enterprise related to tourism increased effective January 1, 2014 from 15 20 In 2014 and 2015, most of the Company's taxable income in Israel is attributable to Approved Enterprise programs with zero tax. C. Law for the Encouragement of Industry (Taxation), 1969: The Company is an Industrial Company under the Law for the Encouragement of Industry (Taxation), 1969 and, therefore, is entitled to certain tax benefits, mainly accelerated rates of depreciation. D. Deferred Taxes: Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company and its subsidiary deferred tax assets are as follows: As of December 31, 2 0 1 5 2 0 1 4 Net operating loss carry-forwards $ 4,781 $ - Temporary differences relating to reserve and allowances 9,658 1,796 Intangible assets (6,715 ) - 7,724 1,796 Valuation Allowance (5,165 ) - Deferred tax asset, net $ 2,559 $ 1,796 The Company's U.S. subsidiaries have carry-forward tax losses of approximately $8,808 to offset against future U.S. federal taxable income. Israel: ,As of December 31 2 0 1 5 2 0 1 4 Short-term deferred tax assets $ 2,973 $ 142 Long-term deferred tax assets 1,981 1,654 $ 4,954 $ 1,796 International: As of December 31, 2 0 1 5 2 0 1 4 Short-term deferred tax assets $ 567 $ - Long-term deferred tax assets 3,754 - Short-term deferred tax liabilities (956 ) - Long-term deferred tax liabilities (5,760 ) - $ (2,395 ) $ - Under ASC 740-10, deferred tax assets are to be recognized for the anticipated tax benefits associated with net operating loss carry-forwards and deductible temporary differences; unless it is more-likely-than-not that some or all of the deferred tax assets will not be realized. The adjustment is made by a valuation allowance. E. Israel and International Components of Income before Taxes: Year ended December 31, 2 0 1 5 2 0 1 4 2 0 1 3 Israel $ 15,377 $ 16,648 $ 11,788 International (3,153 ) 826 1,238 $ 12,224 $ 17,474 $ 13,026 F. Tax Reconciliation: The following is a reconciliation of the theoretical tax expense, assuming that all income is taxed at the ordinary statutory average corporate tax rate in Israel and the actual tax expense in the statement of operations, is as follows: Year ended December 31, 2 0 1 5 2 0 1 4 2 0 1 3 Net income before taxes $ 12,224 $ 17,474 $ 13,026 Statutory tax expenses 3,239 4,631 3,256 Effect of Approved Enterprise status (7,807 ) (8,639 ) - Permanent differences, including difference between the basis of measurement of income reported for tax purposes and the basis of measurement of income for financial reporting purposes - net 1,377 776 218 Different tax rates of deferred taxes - 1,839 (1,344) Deferred taxes on carryforward tax losses for which valuation allowance was provided - (39 ) - Effect of foreign operations taxed at various rates (530 ) (31 ) 96 Adjustments for previous years tax - - 261 Change in valuation allowance - 42 - Other 220 243 24 (6,740 ) (5,809 ) (745 ) Actual tax expense (benefit) $ (3,501 ) $ (1,178 ) $ 2,511 G. Effective Tax Rates: The Company's effective tax rates differ from the statutory rates applicable to the Company for tax year 2015 and 2014 due primarily to effect of Approved Enterprise status and for tax year 2013 due primarily to its tax losses carry-forward. H. Tax Assessments: The Company has either received final tax assessments or the applicable statute of limitations rules have become effective through tax year 2010. Two subsidiaries received final tax assessments through tax year 2012. The other subsidiaries did not receive final tax assessments since their incorporation. I. Uncertain Tax Positions: The taxation of the Company's business is subject to the application of multiple and sometimes conflicting tax laws and regulations as well as multinational tax conventions. The application of tax laws and regulations is subject to legal and factual interpretation, judgment and uncertainty. The Company believes that it has adequately provided for any reasonably foreseeable outcomes related to tax audits and settlement. The final tax outcome of its tax audits could be different from that which is reflected in the Company's income tax provisions and accruals. Such differences could have a material effect on the Company's income tax provision and net income in the period in which such determination is made. The following table summarizes the changes in uncertain tax positions: As of December 31, 2 0 1 5 2 0 1 4 Balance at the beginning of the year $ 651 $ 451 Decrease related to prior year tax positions, net (241 ) (36 ) Increase related to current year tax positions 755 236 Balance at the end of the year $ 1,165 $ 651 J. Income from Other Sources in Israel: Income not eligible for benefits under the Approved Enterprise Law mentioned in A. above is taxed at the corporate tax rate of 26.5 25 25 |
GEOGRAPHIC AREAS AND MAJOR CUST
GEOGRAPHIC AREAS AND MAJOR CUSTOMERS | 12 Months Ended |
Dec. 31, 2015 | |
GEOGRAPHIC AREAS AND MAJOR CUSTOMERS [Abstract] | |
GEOGRAPHIC AREAS AND MAJOR CUSTOMERS | NOTE 11 - GEOGRAPHIC AREAS AND MAJOR CUSTOMERS A. Sales by Geographic Area (as Percentage of Total Sales): Year ended December 31, 2 0 1 5 2 0 1 4 2 0 1 3 % % % Taiwan, R.O.C. 44 45 52 USA 14 26 15 Korea 19 11 6 Germany 7 8 12 Other 16 10 15 Total 100 100 100 B. Sales by Major Customers (as Percentage of Total Sales): Year ended December 31, 2 0 1 5 2 0 1 4 2 0 1 3 % % % Customer A 31 36 44 Customer B 14 9 5 Customer C 13 21 14 Others 42 34 37 Total 100 100 100 C. Assets by Location: Substantially all fixed assets are located in Israel. |
TRANSACTIONS AND BALANCES WITH
TRANSACTIONS AND BALANCES WITH RELATED PARTIES | 12 Months Ended |
Dec. 31, 2015 | |
TRANSACTIONS AND BALANCES WITH RELATED PARTIES [Abstract] | |
TRANSACTIONS AND BALANCES WITH RELATED PARTIES | NOTE 12 - TRANSACTIONS AND BALANCES WITH RELATED PARTIES The total directors' fees (including the chairman of the Board) for the year 2015 amounted to $ 266 247 208 70,000 |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2015 | |
FINANCIAL INSTRUMENTS [Abstract] | |
FINANCIAL INSTRUMENTS | NOTE 13 - FINANCIAL INSTRUMENTS A. Hedging Activities: The Company enters into forward contracts, and currency options to hedge its balance sheet exposure as well as certain future cash flows in connection with certain operating expenses (mainly payroll expense) and forecast transactions which are expected to be denominated in New Israeli Shekel ("NIS"). The Company is exposed to losses in the event of non-performance by counterparties to financial instruments; however, as the counterparties are major Israeli banks, credit risk is considered immaterial. The Company does not hold or issue derivatives for trading purposes. The notional amounts of the hedging instruments as of December 31, 2015 and December 31, 2014 were $ 58,718 59,475 B. Derivative Instruments The fair value of derivative contracts as of December 31, 2015 and December 31, 2014 was as follows: Derivative Assets Reported in Other Current Assets Derivative Liabilities Reported in Other December 31, December 31, 2 0 1 5 2 0 1 4 2 0 1 5 2 0 1 4 Derivatives designated as hedging instruments in cash flow hedge $ - $ - $ 114 $ 1,177 The impact of derivative instrument on total operating expenses in the year ended December 31, 2015, 2014 and 2013 was: Year ended December 31, 2 0 1 5 2 0 1 4 2 0 1 3 Gain (loss) on derivative instruments $ (1,205) $ (126) $ 1,181 |
GENERAL (Policies)
GENERAL (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
GENERAL [Abstract] | |
Business Description: | A. Business Description: Nova Measuring Instruments Ltd. (the Company) was incorporated in May 1993 and commenced operations in October 1993 in the design, development and production of integrated process control systems, used in the manufacturing of semiconductors. In October 1995, the Company began manufacturing and marketing its systems. In recent years, the Company expanded its product offering to include stand-alone systems. The Company continues research and development for the next generation of its products and additional applications for such products. The Company operates in one operating segment. The Company has wholly owned subsidiaries in the United States of America (the U.S.), Japan, The Netherlands, Taiwan, Korea and Germany. The subsidiaries (the subsidiaries) are engaged in pre-sale activities and providing technical support to customers. On April 2, 2015, the Company completed the acquisition of 100% |
SIGNIFICANT ACCOUNTING POLICI22
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Principles of Consolidation and Basis of Presentation: | A. Principles of Consolidation and Basis of Presentation: The Company's consolidated financial statements include the financial statements of the Company and its wholly owned subsidiaries (the Company), after elimination of material intercompany transactions and balances. |
Use of Estimates in the Preparation of Financial Statements: | B. Use of Estimates in the Preparation of Financial Statements: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Financial Statements in U.S. Dollars: | C. Financial Statements in U.S. Dollars: The currency of the primary economic environment in which the operations of the Company and its subsidiaries are conducted is the U.S. dollar (the dollar). Accordingly, the Company uses the dollar as its functional and reporting currency. Certain of the dollar amounts in the financial statements may represent the dollar equivalent of other currencies, including the New Israeli Shekel (NIS). Transactions and balances denominated in dollars are presented at their dollar amounts. Non-dollar transactions and balances are re-measured into dollars in accordance with the principles set forth in Accounting Standards Codification Topic No. 830 (ASC 830), Foreign Currency Translation. All transaction gains and losses of the re-measured monetary balance sheet items are reflected in the statements of operations as financial income or expenses, as appropriate. |
Cash and Cash Equivalents: | D. Cash and Cash Equivalents: Cash and cash equivalents represent short-term highly liquid investments (mainly interest-bearing deposits) with maturity dates not exceeding three months from the date of deposit. |
Short Term Bank Deposit: | E. Short Term Bank Deposit: Short term bank deposits consist of bank deposits with original maturities of more than three months and up to twelve months. |
Allowance for Doubtful Accounts: | F. Allowance for Doubtful Accounts: The allowance for doubtful accounts is computed on the specific identification basis. |
Business Combination: | G. Business Combination The company accounts for business combination in accordance with ASC No, 805, Business Combination. ASC No. 805 requires recognition of assets acquired and liabilities assumed at the acquisition date, measured at their fair values as of that date. Any access of the fair value of net assets acquired over purchased price and any subsequent changes in estimated contingencies are to be recorded in the consolidated statements of operations |
Held for trading Securities: | H. Held for trading Securities: A financial asset is classified at fair value through profit or loss if it is classified as held for trading or is designated as such upon initial recognition. Attributable transaction costs are recognized in profit or loss as incurred. Financial assets at fair value through profit or loss are measured at fair value, and changes therein are recognized in profit or loss. |
Inventories: | I. Inventories: Inventories are presented at the lower of cost or market. Cost is determined as follows: Raw materials-on the average cost basis. Finished goods and work in process - on actual production cost basis (materials, labor and indirect manufacturing costs). The Company writes down product inventory, based on slow moving items, and assumptions about future demands, market conditions. |
Property and Equipment: | J. Property and Equipment Property and equipment are presented at cost, net of accumulated depreciation. Annual depreciation is calculated based on the straight-line method over the shorter of the estimated useful lives of the related assets. Estimated useful life, in years, is as follows: Years Electronic equipment 3 7 Office furniture and equipment 7 15 Leasehold improvements Over the shorter of the term of the lease or the useful life of the asset Deprecation methods, useful lives and residual values are reviewed at the end each reporting year and adjusted if appropriate |
Accrued Warranty Costs: | K. Accrued Warranty Costs: Accrued warranty costs are calculated in respect of the warranty period on the Company's products and are based on the Company's prior experience and in accordance with management's estimate. The estimated future warranty obligations are affected by the warranty periods, install base, labor and other related costs incurred in correcting a product failure. |
Intangible Assets: | L. Intangible Assets Intangible assets that are not considered to have an indefinite useful life are amortized using mainly the straight-line basis over their estimated useful lives, as noted below. Recoverability of these assets is measured by a comparison of the carrying amount of the asset to the undiscounted future cash flows expected to be generated by the assets. If the assets are considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired assets. Weighted Average Useful Life (Years) Technology 7 Customer relationships 10 Backlog Per occurrence IPR&D (*) Will be determined upon successful launch of the related product. no |
Goodwill: | M. Goodwill Goodwill and certain other purchased intangible assets have been recorded as a result of acquisitions of ReVera. Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill is not amortized, but rather is subject to an impairment test. The Company performs an annual impairment test during the fourth quarter of each fiscal year, or more frequently if impairment indicators are present. The Company operates in one ASC 350, "Intangibles Goodwill and Other", prescribes a two-phase process for impairment testing of goodwill. The first phase screens for impairment, while the second phase (if necessary) measures impairment. Goodwill impairment is deemed to exist if the net book value of a reporting unit exceeds its estimated fair value. In such case, the second phase is then performed, and the Company measures impairment by comparing the carrying amount of the reporting unit's goodwill to the implied fair value of that goodwill. An impairment loss is recognized in an amount equal to the excess. The Company has an option to perform a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount prior to performing the two-step goodwill impairment test. If this is the case, the two-step goodwill impairment test is required. If it is more-likely-than-not that the fair value of a reporting unit is greater than its carrying amount, the two-step goodwill impairment test is not required no |
Revenue Recognition: | N. Revenue Recognition: Revenues from the sale of products are recognized when all the following criteria have been met: a persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed or determinable, collection of resulting receivables is probable and there are no remaining significant obligations. Allocation of arrangement consideration among the separate units of accounting is based on their relative selling prices. The selling price for each unit of accounting is determined based on a selling price hierarchy using either vendor specific objective evidence (VSOE) of selling price, third party evidence of selling price (TPE) or the vendor's best estimate of estimated selling price (ESP) for that deliverable. Use of the residual method is prohibited. The objective of ESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. Revenues from Service contracts generally specify fixed payment amounts for periods longer than one month, and are recognized on a straight line basis over the term of the contract. Deferred revenues include amounts invoiced to customers for which revenue has not yet been recognized. |
Research and Development: | O. Research and Development: Research and development costs are charged to operations as incurred. Amounts received or receivable from the Government of Israel through the Office of the Chief Scientist (OCS) or from the European Community as participation in certain research and development programs are offset against research and development costs. The accrual for grants receivable is determined based on the terms of the programs, provided that the criteria for entitlement are expected to be met. Royalty expenses are determined based on actual revenues and presented in cost of revenues. Research and development grants recognized during the years ended December 31, 2015, 2014 and 2013 were $ 1,237 3,490 1,470 |
Income Taxes: | P. Income Taxes: The Company accounts for income taxes utilizing the asset and liability method in accordance with ASC 740, Income Taxes. Current tax liabilities are recognized for the estimated taxes payable on tax returns for the current year. Deferred tax liabilities or assets are recognized for the estimated future tax effects attributable to temporary differences between the income tax bases of assets and liabilities and their reported amounts in the financial statements, and for tax loss carryforwards. Measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax laws, and deferred tax assets are reduced, if necessary, by the amount of tax benefits, the realization of which is not considered more likely than not based on available evidence. ASC 740-10 requires a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50 |
Share-Based Compensation: | Q. Share-Based Compensation: The Company accounts for equity based compensation using ASC 718-10 Share-Based Payment, which requires companies to recognize the cost of employee services received in exchange for awards of equity instruments based upon the grant-date fair value of those awards. Stock Options Under ASC 718, the fair market value of each option grant is estimated on the date of grant using the Black-Scholes option pricing method with the following weighted-average assumptions: 2 0 1 5 2 0 1 4 2 0 1 3 Risk-free interest rate 1.41 1.61 1.35 Expected life of options 4.62 years 4.75 4.75 Expected volatility 35.67 45.29 68.13 Expected dividend yield 0 0 0 |
Earnings per Share: | R. Earnings per Share: Earnings per share are presented in accordance with ASC 260-10, Earnings per Share. Pursuant to which, basic earnings per share excludes the dilutive effects of convertible securities and is computed by dividing income (loss) available to common shareholders by the weighted-average number of ordinary shares outstanding for the period, net of treasury shares. Diluted earnings per share reflect the potential dilutive effect of all convertible securities. The number of potentially dilutive securities excluded from diluted earnings per share due to the anti-dilutive effect amounted to 946,829 526,381 939,366 0.58 0.68 0.39 0.57 0.67 0.38 |
Treasury Shares: | S. Treasury Shares: Treasury shares are recorded at cost and presented as a reduction of shareholders' equity. |
Concentrations of Credit Risk: | T. Concentrations of Credit Risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, bank deposits, trade receivables and foreign currency derivative contracts. The majority of the Company's cash and cash equivalents and bank deposits are invested in dollar instruments with major banks in Israel. Management believes that the financial institutions that hold the Company's investments are corporations with high credit standing. Accordingly, management believes that low credit risk exists with respect to these financial investments |
Fair Value Measurements: | U. Fair Value Measurements: The fair values of the Company cash and cash equivalents, accounts receivable, and accounts payable approximate their carrying amounts due to their short-term nature. The estimated fair values of the derivative instruments are calculated based on market rates to settle the instruments. These values represent the estimated amounts the Company would receive upon sale or pay upon transfer, taking into consideration current market rates. The Company calculate derivative asset and liability amounts using a variety of valuation techniques, depending on the specific characteristics of the hedging instrument, taking into account credit risk. The fair value of the Company derivative contracts (including forwards and options) is determined using standard valuation models. The significant inputs used in these models are readily available in public markets or can be derived from observable market transactions and, therefore, the Company derivative contracts have been classified as Level 2. Inputs used in these standard valuation models include the applicable spot, forward, and discount rates. The standard valuation model for the Company option contracts also includes implied volatility, which is specific to individual options and is based on rates quoted from a widely used third-party resource. |
Derivative Financial Instruments: | V. Derivative Financial Instruments: ASC 815 requires the presentation of all derivatives as either assets or liabilities on the balance sheet and the measurement of those instruments at fair value. For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item, if any, is recognized in current earnings during the period of change. See Note 13 for disclosure of the derivative financial instruments in accordance with such pronouncements. |
Impairment of Long-Lived Assets: | W. Impairment of Long-Lived Assets: Long-lived assets, held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets (or asset Company) may not be recoverable. In the event that the sum of the expected future cash flows (undiscounted and without interest charges) of the long-lived assets is less than the carrying amount of such assets, an impairment charge would be recognized, and the assets (or asset Company) would be written down to their estimated fair values. The Company performed an impairment review and did not identify any indicators. |
New Accounting Pronouncements: | X. New Accounting Pronouncements: In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers. The standard provides companies with a single model for accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance. The guidance permits companies to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. In August 2015, the FASB issued ASU 2015-14, Deferral of the Effective date, which defers the required adoption date of ASU 2014-09 by one year. As a result of the deferred effective date, ASU 2014-09 will be effective for the Company in its first quarter of fiscal 2018. Early adoption is permitted but not before the original effective date of the new standard of the first quarter of fiscal 2017. The Company is currently evaluating the impact of the guidance on its consolidation financial statements. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, to simplify the presentation of deferred taxes. This amendment requires that all deferred tax assets and liabilities, along with any related valuation allowances, be classified as noncurrent on the balance sheet. ASU 2015-17 is effective for annual and interim reporting periods ending after December 15, 2017. Early adoption is permitted, and the new guidance may be applied either prospectively or retrospectively. The Company hasn't adopted this guidance as of December 31, 2015. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330), Simplifying the Measurement of Inventory. This ASU is intended to simplify subsequent measurement of inventory. An entity should measure inventory within a scope of this ASU 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 standard is effective for annual periods and interim periods within those annual periods beginning after December 15, 2016. The Company has not yet selected a transition method nor determined the impact of the new standard on its consolidated financial statements. |
SIGNIFICANT ACCOUNTING POLICI23
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Estimated Useful Lives of Fixed Assets | Years Electronic equipment 3 7 Office furniture and equipment 7 15 Leasehold improvements Over the shorter of the term of the lease or the useful life of the asset |
Schedule of estimated useful lives of the intangible assets | Weighted Average Useful Life (Years) Technology 7 Customer relationships 10 Backlog Per occurrence IPR&D (*) Will be determined upon successful launch of the related product. |
Weighted Average Assumptions Used in Determining Fair Market Value of Options | 2 0 1 5 2 0 1 4 2 0 1 3 Risk-free interest rate 1.41 1.61 1.35 Expected life of options 4.62 years 4.75 4.75 Expected volatility 35.67 45.29 68.13 Expected dividend yield 0 0 0 |
ACQUISITION OF REVERA INC. (Tab
ACQUISITION OF REVERA INC. (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
ACQUISITION OF REVERA INC. [Abstract] | |
Schedule of allocation of total consideration to ReVera's tangible and intangible assets and liabilities based on their estimated fair values as of the acquisition date and allocated the remaining amount to goodwill | Cash and cash equivalents $ 1,158 Net assets excluding cash and cash equivalents 7,991 Deferred tax current assets 563 Deferred tax long-term assets 3,753 Intangible assets 22,929 Goodwill 20,114 Deferred revenues, net (1,409 ) Deferred tax current liabilities (2,122 ) Deferred tax long-term liabilities (6,477 ) Total purchases price $ 46,500 |
Schedule of valuation of intangible assets | Original Accumulated Net Carrying Amount Amortization Amount Technology $ 12,305 $ 1,318 $ 10,987 Customer relationships 5,191 199 4,992 Backlog 3,506 3,506 - IPR&D 1,927 - 1,927 $ 22,929 $ 5,023 $ 17,906 |
Schedule of expected annual amortization expenses | Year ending December 31, 2016 $ 2,545 2017 2,561 2018 2,614 2019 2,625 2020 and thereafter 7,561 $ 17,906 |
Schedule of unaudited pro forma results | Year ended December 31, 2015 2014 Revenues $ 155,842 $ 151,350 Net income $ 19,328 $ 21,898 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
INVENTORIES [Abstract] | |
Inventories | As of December 31, 2 0 1 5 2014 Raw materials $ 6,649 $ 3,148 Work in process 12,932 7,656 Finished goods 8,102 5,303 $ 27,683 $ 16,107 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
PROPERTY AND EQUIPMENT, NET [Abstract] | |
Schedule of Property and Equipment, Net | As of December 31, 2 0 1 5 2 0 1 4 Cost: Electronic equipment $ 24,718 $ 21,716 Office furniture and equipment 1,648 1,159 Leasehold improvements 6,303 4,555 32,669 27,430 Accumulated depreciation: Electronic equipment 17,150 13,244 Office furniture and equipment 1,298 882 Leasehold improvements 3,159 1,854 21,607 15,980 Net book value $ 11,062 $ 11,450 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
OTHER CURRENT LIABILITIES [Abstract] | |
Schedule of Other Current Liabilities | As of December 31, 2 0 1 5 2 0 1 4 Accrued salaries and fringe benefits $ 8,056 $ 6,905 Accrued warranty costs (See B below) 3,883 2,356 Governmental institutions 3,338 1,431 Other 719 1,914 $ 15,996 $ 12,606 |
Changes in the Product Warranty Accrual | As of December 31, 2 0 1 5 2 0 1 4 Balance as of beginning of year $ 2,356 $ 2,402 Acquisition of ReVera 973 - Services provided under warranty (4,221 ) (2,428 ) Changes in provision 4,775 2,382 Balance as of end of year $ 3,883 $ 2,356 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Minimum Rental Payments Under Operating Lease Agreements | Year 2016 $ 1,725 2017 1,199 2018 1,199 2019 1,199 2020 $ 1,199 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SHAREHOLDERS' EQUITY [Abstract] | |
Effects of Stock-Based Compensation in the Statements of Operations | Year ended December 31, 2 0 1 5 2 0 1 4 2 0 1 3 Cost of Revenues: Products $ 373 $ 375 $ 310 Services 203 178 140 Research and Development expenses 1,085 870 881 Sales and Marketing expenses 744 446 576 General and Administration expenses 269 255 188 Total $ 2,674 $ 2,124 $ 2,095 |
Status of the Company's Share Option Plans | 2 0 1 5 2 0 1 4 2 0 1 3 Share Options Weighted Average Exercise Price Share Options Weighted Average Exercise Price Share Options Weighted Average Exercise Price Outstanding - beginning of year 1,534,642 8.90 1,707,702 7.48 1,844,347 5.75 Granted 625,959 11.67 392,879 10.77 383,537 8.87 Exercised 287,928 8.06 473,616 5.48 513,896 2.34 Cancelled 115,503 10.01 92,323 8.09 6,286 5.73 Outstanding - year end 1,757,170 9.95 1,534,642 8.9 1,707,702 7.48 Options exercisable at year-end 689,369 8.66 644,685 8.11 738,915 6.35 |
Information about Share Options Outstanding | Range of Exercise Prices Number Weighted Average Contractual Weighted Average Number Weighted Average (US dollars) (in years) (US dollars) (US dollars) 0.93 1.25 17,806 3.34 1.23 17,806 1.23 4.20 6.70 62,319 3.59 5.91 62,319 5.91 7.40 7.91 164,677 3.58 7.82 107,221 7.82 8.38 8.89 437,380 4.11 8.66 293,066 8.60 9.04 9.58 54,417 4.15 9.07 26,329 9.08 10.08 10.93 357,930 5.26 10.28 123,878 10.47 11.39 12.46 662,641 6.02 11.84 58,750 11.66 1,757,170 689,369 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
INCOME TAXES [Abstract] | |
Significant Components of Deferred Tax Assets | As of December 31, 2 0 1 5 2 0 1 4 Net operating loss carry-forwards $ 4,781 $ - Temporary differences relating to reserve and allowances 9,658 1,796 Intangible assets (6,715 ) - 7,724 1,796 Valuation Allowance (5,165 ) - Deferred tax asset, net $ 2,559 $ 1,796 |
Schedule of Presentation in Balance Sheets for Deferred Taxes | Israel: ,As of December 31 2 0 1 5 2 0 1 4 Short-term deferred tax assets $ 2,973 $ 142 Long-term deferred tax assets 1,981 1,654 $ 4,954 $ 1,796 International: As of December 31, 2 0 1 5 2 0 1 4 Short-term deferred tax assets $ 567 $ - Long-term deferred tax assets 3,754 - Short-term deferred tax liabilities (956 ) - Long-term deferred tax liabilities (5,760 ) - $ (2,395 ) $ - |
Schedule of Israel and International Components of Income before Taxes | Year ended December 31, 2 0 1 5 2 0 1 4 2 0 1 3 Israel $ 15,377 $ 16,648 $ 11,788 International (3,153 ) 826 1,238 $ 12,224 $ 17,474 $ 13,026 |
Reconciliation of Theoretical and Actual Tax Expense | Year ended December 31, 2 0 1 5 2 0 1 4 2 0 1 3 Net income before taxes $ 12,224 $ 17,474 $ 13,026 Statutory tax expenses 3,239 4,631 3,256 Effect of Approved Enterprise status (7,807 ) (8,639 ) - Permanent differences, including difference between the basis of measurement of income reported for tax purposes and the basis of measurement of income for financial reporting purposes - net 1,377 776 218 Different tax rates of deferred taxes - 1,839 (1,344) Deferred taxes on carryforward tax losses for which valuation allowance was provided - (39 ) - Effect of foreign operations taxed at various rates (530 ) (31 ) 96 Adjustments for previous years tax - - 261 Change in valuation allowance - 42 - Other 220 243 24 (6,740 ) (5,809 ) (745 ) Actual tax expense (benefit) $ (3,501 ) $ (1,178 ) $ 2,511 |
Schedule of Uncertain Tax Positions | As of December 31, 2 0 1 5 2 0 1 4 Balance at the beginning of the year $ 651 $ 451 Decrease related to prior year tax positions, net (241 ) (36 ) Increase related to current year tax positions 755 236 Balance at the end of the year $ 1,165 $ 651 |
GEOGRAPHIC AREAS AND MAJOR CU31
GEOGRAPHIC AREAS AND MAJOR CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
GEOGRAPHIC AREAS AND MAJOR CUSTOMERS [Abstract] | |
Sales by Geographic Area as Percentage of Total Sales | Year ended December 31, 2 0 1 5 2 0 1 4 2 0 1 3 % % % Taiwan, R.O.C. 44 45 52 USA 14 26 15 Korea 19 11 6 Germany 7 8 12 Other 16 10 15 Total 100 100 100 |
Sales by Major Customers as Percentage of Total Sales | Year ended December 31, 2 0 1 5 2 0 1 4 2 0 1 3 % % % Customer A 31 36 44 Customer B 14 9 5 Customer C 13 21 14 Others 42 34 37 Total 100 100 100 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
FINANCIAL INSTRUMENTS [Abstract] | |
Fair Value of Derivative Contracts | Derivative Assets Reported in Other Current Assets Derivative Liabilities Reported in Other December 31, December 31, 2 0 1 5 2 0 1 4 2 0 1 5 2 0 1 4 Derivatives designated as hedging instruments in cash flow hedge $ - $ - $ 114 $ 1,177 |
Impact of Derivative Instruments on Total Operating Expenses | Year ended December 31, 2 0 1 5 2 0 1 4 2 0 1 3 Gain (loss) on derivative instruments $ (1,205) $ (126) $ 1,181 |
GENERAL (Details)
GENERAL (Details) | Apr. 02, 2015 |
ReVera Inc. [Member] | |
GENERAL [Line Items] | |
Percentage of shares acquired | 100.00% |
SIGNIFICANT ACCOUNTING POLICI34
SIGNIFICANT ACCOUNTING POLICIES (Narrative)(Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)item$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / sharesshares | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||
Number of Operating Segments | item | 1 | ||
Impairment losses on goodwill | $ | |||
Uncertain tax position, likelihood of being sustained, threshold for recognition | 50.00% | ||
Dilutive securities excluded from diluted earnings per share | shares | 946,829 | 526,381 | 939,366 |
Basic earnings per share (in dollars per share) | $ / shares | $ 0.58 | $ 0.68 | $ 0.39 |
Diluted earnings per share (in dollars per share) | $ / shares | $ 0.57 | $ 0.67 | $ 0.38 |
Research and development grants recognized | $ | $ 1,237 | $ 3,490 | $ 1,470 |
SIGNIFICANT ACCOUNTING POLICI35
SIGNIFICANT ACCOUNTING POLICIES (Estimated Useful Lives of Property and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Electronic equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Electronic equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Office furniture and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Office furniture and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 15 years |
SIGNIFICANT ACCOUNTING POLICI36
SIGNIFICANT ACCOUNTING POLICIES (Estimated Useful Lives of Intangible Assets) (Details) | 12 Months Ended | |
Dec. 31, 2015USD ($) | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment losses on intangible assets | ||
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 7 years | |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 10 years | |
IPR&D [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | [1] | |
[1] | Will be determined upon successful launch of the related product. |
SIGNIFICANT ACCOUNTING POLICI37
SIGNIFICANT ACCOUNTING POLICIES (Weighted-Average Assumptions Used in Determinig Fair Market Value of Options)(Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||
Risk-free interest rate | 1.41% | 1.61% | 1.35% |
Expected life of options | 4 years 7 months 13 days | 4 years 9 months | 4 years 9 months |
Expected volatility | 35.67% | 45.29% | 68.13% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
ACQUISITION OF REVERA INC. (Nar
ACQUISITION OF REVERA INC. (Narrative) (Details) - ReVera Inc. [Member] - USD ($) $ in Thousands | Apr. 02, 2015 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||
Cash paid | $ 46,500 | |
Noteholders paid | $ 2,475 | |
Period with which if entity obtains new information about acquiree for retrospective adjustment of the relevant amounts that were recognized at the time of the acquisition | 1 year | |
Acquisition-related expenses | $ 1,979 |
ACQUISITION OF REVERA INC. (All
ACQUISITION OF REVERA INC. (Allocation of total consideration to ReVera's tangible and intangible assets and liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Apr. 02, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||
Goodwill | $ 20,114 | ||
ReVera Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 1,158 | ||
Net assets excluding cash and cash equivalents | 7,991 | ||
Deferred tax current assets | 563 | ||
Deferred tax long-term assets | 3,753 | ||
Intangible assets | 22,929 | ||
Goodwill | 20,114 | ||
Deferred revenues, net | (1,409) | ||
Deferred tax current liabilities | (2,122) | ||
Deferred tax long-term liabilities | (6,477) | ||
Total purchases price | $ 46,500 |
ACQUISITION OF REVERA INC. (Val
ACQUISITION OF REVERA INC. (Valuation of Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||
Net Carrying Amount | $ 17,906 | |
ReVera Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Original Amount | 22,929 | |
Accumulated Amortization | 5,023 | |
Net Carrying Amount | 17,906 | |
ReVera Inc. [Member] | Technology [Member] | ||
Business Acquisition [Line Items] | ||
Original Amount | 12,305 | |
Accumulated Amortization | 1,318 | |
Net Carrying Amount | 10,987 | |
ReVera Inc. [Member] | Customer relationships [Member] | ||
Business Acquisition [Line Items] | ||
Original Amount | 5,191 | |
Accumulated Amortization | 199 | |
Net Carrying Amount | 4,992 | |
ReVera Inc. [Member] | Backlog [Member] | ||
Business Acquisition [Line Items] | ||
Original Amount | 3,506 | |
Accumulated Amortization | $ 3,506 | |
Net Carrying Amount | ||
ReVera Inc. [Member] | IPR&D [Member] | ||
Business Acquisition [Line Items] | ||
Original Amount | $ 1,927 | |
Accumulated Amortization | ||
Net Carrying Amount | $ 1,927 |
ACQUISITION OF REVERA INC. (Sch
ACQUISITION OF REVERA INC. (Schedule of Expected Annual Amortization Expenses) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Expected annual amortization expenses | ||
Net Carrying Amount | $ 17,906 | |
ReVera Inc. [Member] | ||
Expected annual amortization expenses | ||
2,016 | 2,545 | |
2,017 | 2,561 | |
2,018 | 2,614 | |
2,019 | 2,625 | |
2020 and thereafter | 7,561 | |
Net Carrying Amount | $ 17,906 |
ACQUISITION OF REVERA INC. (Una
ACQUISITION OF REVERA INC. (Unaudited Pro Forma Results) (Details) - ReVera Inc. [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | ||
Revenues | $ 155,842 | $ 151,350 |
Net income | $ 19,328 | $ 21,898 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
INVENTORIES [Abstract] | |||
Raw materials | $ 6,649 | $ 3,148 | |
Work in process | 12,932 | 7,656 | |
Finished goods | 8,102 | 5,303 | |
Inventories | 27,683 | 16,107 | |
Write-offs | $ 2,551 | $ 1,554 | $ 1,824 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Cost | $ 32,669 | $ 27,430 |
Accumulated depreciation amortization | 21,607 | 15,980 |
Net book value | 11,062 | 11,450 |
Electronic equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 24,718 | 21,716 |
Accumulated depreciation amortization | 17,150 | 13,244 |
Office furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 1,648 | 1,159 |
Accumulated depreciation amortization | 1,298 | 882 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 6,303 | 4,555 |
Accumulated depreciation amortization | $ 3,159 | $ 1,854 |
OTHER CURRENT LIABILITIES (Sche
OTHER CURRENT LIABILITIES (Schedule of Other Current Liabilities)(Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
OTHER CURRENT LIABILITIES [Abstract] | |||
Accrued salaries and fringe benefits | $ 8,056 | $ 6,905 | |
Accrued warranty costs (See B below) | 3,883 | 2,356 | $ 2,402 |
Governmental institutions | 3,338 | 1,431 | |
Other | 719 | 1,914 | |
Other current liabilities | $ 15,996 | $ 12,606 |
OTHER CURRENT LIABILITIES (Chan
OTHER CURRENT LIABILITIES (Changes in the Product Warranty Accrual)(Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
OTHER CURRENT LIABILITIES [Abstract] | ||
Balance as of beginning of year | $ 2,356 | $ 2,402 |
Acquisition of ReVera | 973 | |
Services provided under warranty | (4,221) | $ (2,428) |
Changes in provision | 4,775 | 2,382 |
Balance as of end of year | $ 3,883 | $ 2,356 |
LIABILITY FOR EMPLOYEE SEVERA47
LIABILITY FOR EMPLOYEE SEVERANCE PAY, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
LIABILITY FOR EMPLOYEE SEVERANCE PAY, NET [Abstract] | |||
Severance-pay expenses | $ 94 | $ 6 | $ 63 |
COMMITMENTS AND CONTINGENCIES48
COMMITMENTS AND CONTINGENCIES (Narrative)(Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |||
Royalty rates for current and fiscal year onward | 5.00% | ||
Percentage of original sum as increased repayment | 300.00% | ||
Additional royalty rate | 1.00% | ||
Grants received | $ 24,341 | $ 22,940 | |
Royalties paid or accrued to OCS | 7,926 | 6,670 | |
Royalty expense | 1,255 | 1,019 | $ 787 |
Contingent liability | 23,959 | $ 22,605 | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Lien amount | 750 | ||
Non-cancelable purchase obligations amount | $ 9,588 | ||
Minimum [Member] | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Royalty rates | 3.50% | ||
Maximum [Member] | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Royalty rates | 5.00% | ||
Royalties payable, percent of grants received | 100.00% |
COMMITMENTS AND CONTINGENCIES49
COMMITMENTS AND CONTINGENCIES (Minimum Rental Payments Under Operating Lease Agreements)(Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |||
2,016 | $ 1,725 | ||
2,017 | 1,199 | ||
2,018 | 1,199 | ||
2,019 | 1,199 | ||
2,020 | 1,199 | ||
Rental expense | $ 1,781 | $ 1,594 | $ 1,344 |
SHAREHOLDERS' EQUITY (Narrative
SHAREHOLDERS' EQUITY (Narrative)(Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | 21 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Mar. 24, 2014 | |
SHAREHOLDERS' EQUITY [Abstract] | |||||
Share repurchase program, which partially executed in 2014 and 2015 | $ 12,000 | ||||
Ordinary share repurchased, shares | 1,003,778 | ||||
Ordinary share repurchased | $ 4,303 | $ 6,726 | $ 11,028 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average fair value of options granted | $ 3.76 | $ 4.31 | $ 4.93 | ||
Total intrinsic value of options outstanding | $ 1,259 | $ 2,508 | 1,259 | ||
Options exercisable at year-end | 979 | 1,508 | 979 | ||
Total intrinsic value of options exercised | $ 505 | $ 2,328 | $ 3,856 | ||
RSU [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Unrecognized compensation cost related to unvested restricted shares | $ 1,801 | $ 1,801 | |||
Unrecognized compensation cost, recognition period | 4 years | ||||
Total RSUs issued as of date | 644,094 | 451,647 | 406,940 | 644,094 | |
Total RSUs vested as of date | 376,623 | 343,718 | 320,973 | 376,623 | |
Total RSUs cancelled as of date | 14,682 | 9,609 | 5,442 | 14,682 | |
RSUs issued | 192,447 | 44,707 | 60,321 | ||
Weighted average fair values at grant date | $ 11.51 | $ 10.08 | $ 8.98 | ||
Total intrinsic value of RSU's vested | $ 322 | $ 236 | $ 833 | ||
RSU [Member] | First anniversary of the grant date [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 25.00% | ||||
RSU [Member] | Second anniversary of the grant date [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 25.00% | ||||
RSU [Member] | Third anniversary of the grant date [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 25.00% | ||||
RSU [Member] | Fourth anniversary of the grant date [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 25.00% | ||||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Unrecognized compensation cost related to non-vested employee options | $ 2,106 | $ 2,106 | |||
Unrecognized compensation cost, recognition period | 4 years | ||||
Maximum [Member] | Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options term | 10 years |
SHAREHOLDERS' EQUITY (Effects o
SHAREHOLDERS' EQUITY (Effects of Stock-Based Compensation in the Statements of Operations)(Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | $ 2,674 | $ 2,124 | $ 2,095 |
Products [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | 373 | 375 | 310 |
Services [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | 203 | 178 | 140 |
Research and Development expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | 1,085 | 870 | 881 |
Sales and Marketing expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | 744 | 446 | 576 |
General and Administration expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | $ 269 | $ 255 | $ 188 |
SHAREHOLDERS' EQUITY (Status of
SHAREHOLDERS' EQUITY (Status of the Company's Share Option Plans)(Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | 272 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | |
Share options | ||||
Outstanding - beginning of year | 1,534,642 | 1,707,702 | 1,844,347 | |
Options granted | 625,959 | 392,879 | 383,537 | 11,360,926 |
Options exercised | 287,928 | 473,616 | 513,896 | 5,109,607 |
Cancelled | 115,503 | 92,323 | 6,286 | 4,494,149 |
Outstanding - year end | 1,757,170 | 1,534,642 | 1,707,702 | 1,757,170 |
Options exercisable at year-end | 689,369 | 644,685 | 738,915 | 689,369 |
Weighted Average Exercise Price | ||||
Outstanding - beginning of year | $ 8.90 | $ 7.48 | $ 5.75 | |
Granted | 11.67 | 10.77 | 8.87 | |
Exercised | 8.06 | 5.48 | 2.34 | |
Cancelled | 10.01 | 8.09 | 5.73 | |
Outstanding - year end | 9.95 | 8.90 | 7.48 | $ 9.95 |
Options exercisable at year-end | $ 8.66 | $ 8.11 | $ 6.35 | $ 8.66 |
Aggregate intrinsic value | ||||
Outstanding - beginning of year | $ 2,508 | |||
Outstanding - year end | 1,259 | $ 2,508 | $ 1,259 | |
Options exercisable at year-end | $ 979 | $ 1,508 | $ 979 |
SHAREHOLDERS' EQUITY (Informati
SHAREHOLDERS' EQUITY (Information About Share Options Outstanding)(Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number outstanding, Outstanding | shares | 1,757,170 |
Number Exercisable, Exercisable | shares | 689,369 |
0.93-1.25 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Prices, minimum | $ 0.93 |
Exercise Prices, maximum | $ 1.25 |
Number outstanding, Outstanding | shares | 17,806 |
Weighted Average Remaining Contractual Life (in years), Outstanding | 3 years 4 months 2 days |
Weighted Average Exercise Price, Outstanding | $ 1.23 |
Number Exercisable, Exercisable | shares | 17,806 |
Weighted Average Exercise Price, Exercisable | $ 1.23 |
4.20-6.70 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Prices, minimum | 4.20 |
Exercise Prices, maximum | $ 6.70 |
Number outstanding, Outstanding | shares | 62,319 |
Weighted Average Remaining Contractual Life (in years), Outstanding | 3 years 7 months 2 days |
Weighted Average Exercise Price, Outstanding | $ 5.91 |
Number Exercisable, Exercisable | shares | 62,319 |
Weighted Average Exercise Price, Exercisable | $ 5.91 |
7.40-7.91 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Prices, minimum | 7.40 |
Exercise Prices, maximum | $ 7.91 |
Number outstanding, Outstanding | shares | 164,677 |
Weighted Average Remaining Contractual Life (in years), Outstanding | 3 years 6 months 29 days |
Weighted Average Exercise Price, Outstanding | $ 7.82 |
Number Exercisable, Exercisable | shares | 107,221 |
Weighted Average Exercise Price, Exercisable | $ 7.82 |
8.38-8.89 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Prices, minimum | 8.38 |
Exercise Prices, maximum | $ 8.89 |
Number outstanding, Outstanding | shares | 437,380 |
Weighted Average Remaining Contractual Life (in years), Outstanding | 4 years 1 month 10 days |
Weighted Average Exercise Price, Outstanding | $ 8.66 |
Number Exercisable, Exercisable | shares | 293,066 |
Weighted Average Exercise Price, Exercisable | $ 8.60 |
9.04-9.58 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Prices, minimum | 9.04 |
Exercise Prices, maximum | $ 9.58 |
Number outstanding, Outstanding | shares | 54,417 |
Weighted Average Remaining Contractual Life (in years), Outstanding | 4 years 1 month 24 days |
Weighted Average Exercise Price, Outstanding | $ 9.07 |
Number Exercisable, Exercisable | shares | 26,329 |
Weighted Average Exercise Price, Exercisable | $ 9.08 |
10.08-10.93 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Prices, minimum | 10.08 |
Exercise Prices, maximum | $ 10.93 |
Number outstanding, Outstanding | shares | 357,930 |
Weighted Average Remaining Contractual Life (in years), Outstanding | 5 years 3 months 4 days |
Weighted Average Exercise Price, Outstanding | $ 10.28 |
Number Exercisable, Exercisable | shares | 123,878 |
Weighted Average Exercise Price, Exercisable | $ 10.47 |
11.39-12.46 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Prices, minimum | 11.39 |
Exercise Prices, maximum | $ 12.46 |
Number outstanding, Outstanding | shares | 662,641 |
Weighted Average Remaining Contractual Life (in years), Outstanding | 6 years 7 days |
Weighted Average Exercise Price, Outstanding | $ 11.84 |
Number Exercisable, Exercisable | shares | 58,750 |
Weighted Average Exercise Price, Exercisable | $ 11.66 |
INCOME TAXES (Narrative)(Detail
INCOME TAXES (Narrative)(Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Required income from exports, percent | 25.00% | ||
Withholding tax rate | 15.00% | ||
Corporate tax rate | 26.50% | 26.50% | 25.00% |
2016 Corporate tax rate | 25.00% | ||
Minimum [Member] | |||
Corporate tax on income if approved enterprise status earnings are distributed | 10.00% | ||
Tax rate on dividend distributed generated from preferred income | 15.00% | ||
Maximum [Member] | |||
Corporate tax on income if approved enterprise status earnings are distributed | 25.00% | ||
Tax rate on dividend distributed generated from preferred income | 20.00% | ||
Law for the Encouragement of Capital Investments Investment First Plan [Member] | |||
Period of full tax exemption | 4 years | ||
Tax rate after full exemption period | 25.00% | ||
Post exemption period | 3 years | ||
Law for the Encouragement of Capital Investments Investment Plan Second and Third Plans [Member] | |||
Period of full tax exemption | 2 years | ||
Tax rate after full exemption period | 25.00% | ||
Post exemption period | 5 years | ||
Preferred Area A [Member] | |||
Withholding tax rate | 15.00% | ||
Tax rate applicable to approved industrial enterprise, 2015 and after | 6.00% | ||
Required percentage of export of company' s total turnover | 25.00% | ||
Tax rate applicable to approved industrial enterprise, 2011-2012 | 10.00% | ||
Tax rate applicable to approved industrial enterprise, 2013-2014 | 7.00% | ||
Outside Preferred Area A [Member] | |||
Withholding tax rate | 15.00% | ||
Tax rate applicable to approved industrial enterprise, 2015 and after | 12.00% | ||
Required percentage of export of company' s total turnover | 25.00% | ||
Tax rate applicable to approved industrial enterprise, 2011-2012 | 15.00% | ||
Tax rate applicable to approved industrial enterprise, 2013-2014 | 12.50% | ||
Development area A [Member] | |||
Tax rate applicable to approved industrial enterprise, 2015 and after | 6.00% | ||
Tax rate applicable to approved industrial enterprise, 2013-2014 | 7.00% | ||
Corporate tax rate | 9.00% | ||
Outside development area A [Member] | |||
Tax rate applicable to approved industrial enterprise, 2015 and after | 12.00% | ||
Tax rate applicable to approved industrial enterprise, 2013-2014 | 12.50% | ||
Corporate tax rate | 16.00% |
INCOME TAXES (Significant Compo
INCOME TAXES (Significant Components of Deferred Tax Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
INCOME TAXES [Abstract] | ||
Net operating loss carry-forwards | $ 4,781 | |
Temporary differences relating to reserve and allowances | 9,658 | $ 1,796 |
Intangible assets | (6,715) | |
Total net deferred tax asset before valuation allowance | 7,724 | $ 1,796 |
Valuation allowance | (5,165) | |
Deferred tax asset, net | $ 2,559 | $ 1,796 |
INCOME TAXES (Schedule of Balan
INCOME TAXES (Schedule of Balance Sheet Presentation of Deferred Taxes) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Taxes [Line Items] | ||
Short-term deferred tax liabilities | $ (956) | |
Long-term deferred tax liabilities | (5,760) | |
Net deferred tax asset | 2,559 | $ 1,796 |
Israel [Member] | ||
Income Taxes [Line Items] | ||
Short-term deferred tax assets | 2,973 | 142 |
Long-term deferred tax assets | 1,981 | 1,654 |
Net deferred tax asset | 4,954 | $ 1,796 |
International [Member] | ||
Income Taxes [Line Items] | ||
Short-term deferred tax assets | 567 | |
Long-term deferred tax assets | 3,754 | |
Short-term deferred tax liabilities | (956) | |
Long-term deferred tax liabilities | (5,760) | |
Net deferred tax asset | $ (2,395) |
INCOME TAXES (Schedule of Israe
INCOME TAXES (Schedule of Israel and International Components of Income before taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Income Before Income Tax Domestic and Foreign [Line Items] | |||
Net income before taxes | $ 12,224 | $ 17,474 | $ 13,026 |
Israel [Member] | |||
Schedule of Income Before Income Tax Domestic and Foreign [Line Items] | |||
Net income before taxes | 15,377 | 16,648 | 11,788 |
International [Member] | |||
Schedule of Income Before Income Tax Domestic and Foreign [Line Items] | |||
Net income before taxes | $ (3,153) | $ 826 | $ 1,238 |
INCOME TAXES (Reconciliation of
INCOME TAXES (Reconciliation of the Theoretical and Actual Tax Expense)(Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
INCOME TAXES [Abstract] | |||
Net income before taxes | $ 12,224 | $ 17,474 | $ 13,026 |
Statutory tax expenses | 3,239 | 4,631 | $ 3,256 |
Effect of Approved Enterprise status | (7,807) | (8,639) | |
Permanent differences, including difference between the basis of measurement of income reported for tax purposes and the basis of measurement of income for financial reporting purposes - net | $ 1,377 | 776 | $ 218 |
Different tax rates of deferred taxes | 1,839 | $ (1,344) | |
Deferred taxes on carryforward tax losses for which valuation allowance was provided | (39) | ||
Effect of foreign operations taxed at various rates | $ (530) | $ (31) | $ 96 |
Adjustments for previous years tax | $ 261 | ||
Change in valuation allowance | $ 42 | ||
Other | $ 220 | 243 | $ 24 |
Total reconciling items | (6,740) | (5,809) | (745) |
Actual tax expense (benefit) | $ (3,501) | $ (1,178) | $ 2,511 |
INCOME TAXES (Schedule of Unrec
INCOME TAXES (Schedule of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
INCOME TAXES [Abstract] | ||
Balance at the beginning of the year | $ 651 | $ 451 |
Decrease related to prior year tax positions, net | (241) | (36) |
Increase related to current year tax positions | 755 | 236 |
Balance at the end of the year | $ 1,165 | $ 651 |
GEOGRAPHIC AREAS AND MAJOR CU60
GEOGRAPHIC AREAS AND MAJOR CUSTOMERS (Sales by Geographic Area as Percentage of Total Sales)(Details) - Sales [Member] | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue from External Customer [Line Items] | |||
Sales by geographic area (as percentage of total sales) | 100.00% | 100.00% | 100.00% |
Taiwan, R.O.C. [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales by geographic area (as percentage of total sales) | 44.00% | 45.00% | 52.00% |
USA [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales by geographic area (as percentage of total sales) | 14.00% | 26.00% | 15.00% |
Korea [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales by geographic area (as percentage of total sales) | 19.00% | 11.00% | 6.00% |
Germany [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales by geographic area (as percentage of total sales) | 7.00% | 8.00% | 12.00% |
Other [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales by geographic area (as percentage of total sales) | 16.00% | 10.00% | 15.00% |
GEOGRAPHIC AREAS AND MAJOR CU61
GEOGRAPHIC AREAS AND MAJOR CUSTOMERS (Sales by Major Customers as Percentage of Total Sales)(Details) - Sales [Member] | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue, Major Customer [Line Items] | |||
Sales by major customers (as percentage of total sales) | 100.00% | 100.00% | 100.00% |
Customer A [Member] | |||
Revenue, Major Customer [Line Items] | |||
Sales by major customers (as percentage of total sales) | 31.00% | 36.00% | 44.00% |
Customer B [Member] | |||
Revenue, Major Customer [Line Items] | |||
Sales by major customers (as percentage of total sales) | 14.00% | 9.00% | 5.00% |
Customer C [Member] | |||
Revenue, Major Customer [Line Items] | |||
Sales by major customers (as percentage of total sales) | 13.00% | 21.00% | 14.00% |
Others [Member] | |||
Revenue, Major Customer [Line Items] | |||
Sales by major customers (as percentage of total sales) | 42.00% | 34.00% | 37.00% |
TRANSACTIONS AND BALANCES WIT62
TRANSACTIONS AND BALANCES WITH RELATED PARTIES (Details) - USD ($) $ in Thousands | 12 Months Ended | 272 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||||
Options granted | 625,959 | 392,879 | 383,537 | 11,360,926 |
Directors [Member] | ||||
Related Party Transaction [Line Items] | ||||
Directors' fees | $ 266 | $ 247 | $ 208 | |
Options granted | 70,000 |
FINANCIAL INSTRUMENTS (Narrativ
FINANCIAL INSTRUMENTS (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
FINANCIAL INSTRUMENTS [Abstract] | ||
Notional amount of the hedging instruments | $ 58,718 | $ 59,475 |
FINANCIAL INSTRUMENTS (Fair Val
FINANCIAL INSTRUMENTS (Fair Value of Derivative Contracts)(Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative Assets Reported in Other Current Assets [Member] | ||
Derivative [Line Items] | ||
Derivatives designated as hedging instruments in cash flow hedge | ||
Derivative Liabilities Reported in Other Current Liabilities [Member] | ||
Derivative [Line Items] | ||
Derivatives designated as hedging instruments in cash flow hedge | $ 114 | $ 1,177 |
FINANCIAL INSTRUMENTS (Impact o
FINANCIAL INSTRUMENTS (Impact of Derivative Instruments on Total Operating Expenses)(Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
FINANCIAL INSTRUMENTS [Abstract] | |||
Gain (loss) on derivative instruments | $ (1,205) | $ (126) | $ 1,181 |