Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2020 | |
Document Information Line Items | |
Entity Registrant Name | Kornit Digital Ltd. |
Document Type | 6-K |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Entity Central Index Key | 0001625791 |
Document Period End Date | Jun. 30, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q2 |
Entity Address, Address Line One | 12 Ha’Amal Street |
Entity Address, Address Line Two | Park Afek |
Entity Address, City or Town | Rosh Ha’Ayin |
Entity Address, Country | IL |
Entity Address, Postal Zip Code | 4824096 |
Entity File Number | 001-36903 |
Interim Consolidated Balance Sh
Interim Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 47,448 | $ 40,743 |
Short-term bank deposits | 79,804 | 95,000 |
Marketable securities | 36,453 | 32,567 |
Trade receivables, net | 39,803 | 40,510 |
Inventories | 42,126 | 37,477 |
Other accounts receivable and prepaid expenses | 7,910 | 6,985 |
Total current assets | 253,544 | 253,282 |
LONG-TERM ASSETS: | ||
Marketable securities | 73,687 | 95,393 |
Deposits and other long-term assets | 438 | 356 |
Severance pay fund | 295 | 301 |
Deferred taxes | 9,025 | 7,781 |
Property, plant and equipment, net | 24,182 | 17,489 |
Operating lease right-of-use assets | 22,859 | 22,806 |
Intangible assets, net | 2,132 | 2,494 |
Goodwill | 5,564 | 5,564 |
Total long-term assets | 138,182 | 152,184 |
Total assets | 391,726 | 405,466 |
CURRENT LIABILITIES: | ||
Trade payables | 13,021 | 23,449 |
Employees and payroll accruals | 9,435 | 9,165 |
Deferred revenues and advances from customers | 2,579 | 2,688 |
Operating lease liabilities | 4,061 | 3,902 |
Other payables and accrued expenses | 6,796 | 6,373 |
Total current liabilities | 35,892 | 45,577 |
LONG TERM LIABILITIES: | ||
Accrued severance pay | 1,092 | 1,035 |
Operating lease liabilities | 19,076 | 19,231 |
Other long-term liabilities | 1,177 | 1,320 |
Total long-term liabilities | 21,345 | 21,586 |
SHAREHOLDERS’ EQUITY: | ||
Ordinary shares of NIS 0.01 par value – Authorized: 200,000,000 shares as of June 30, 2020 and December 31, 2019; Issued and Outstanding: 40,941,575 shares and 40,684,340 shares as of June 30, 2020 and December 31, 2019, respectively | 106 | 105 |
Additional paid in capital | 313,469 | 304,617 |
Receivables on account of shares | (13) | |
Accumulated other comprehensive income | 2,815 | 843 |
Retained earnings | 18,112 | 32,738 |
Total shareholders’ equity | 334,489 | 338,303 |
Total liabilities and shareholders’ equity | $ 391,726 | $ 405,466 |
Interim Consolidated Balance _2
Interim Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Ordinary shares, shares authorized | 200,000,000 | 200,000,000 |
Ordinary shares, shares issued | 40,941,575 | 40,684,340 |
Ordinary shares, shares outstanding | 40,941,575 | 40,684,340 |
Interim Consolidated Statements
Interim Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues | ||
Products | $ 54,246 | $ 71,030 |
Services | 9,402 | 12,893 |
Total revenues | 63,648 | 83,923 |
Cost of revenues | ||
Products | 27,086 | 34,209 |
Services | 12,736 | 13,891 |
Total cost of revenues | 39,822 | 48,100 |
Gross profit | 23,826 | 35,823 |
Operating expenses | ||
Research and development, net | 13,524 | 10,776 |
Selling and marketing | 16,788 | 16,473 |
General and administrative | 11,864 | 8,356 |
Total operating expenses | 42,176 | 35,605 |
Operating income (loss) | (18,350) | 218 |
Finance income, net | 2,797 | 545 |
Income (loss) before taxes on income (tax benefit) | (15,553) | 763 |
Taxes on income (tax benefit) | (927) | 20 |
Net income (loss) | $ (14,626) | $ 743 |
Basic and diluted net earnings (losses) per share (in Dollars per share) | $ (0.36) | $ 0.02 |
Interim Consolidated Statemen_2
Interim Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ (14,626) | $ 743 |
Change in unrealized gains on marketable securities: | ||
Unrealized gains arising during the period, net of tax expense of $146 and $70, respectively | 1,904 | 1,140 |
Gains reclassified into net income (loss) | (102) | (271) |
Net change | 1,802 | 869 |
Change in unrealized gains on cash flow hedges: | ||
Unrealized gains arising during the period, net of tax expense of $6 and $9, respectively | 54 | 118 |
Losses (gains) reclassified into net income (loss) | 26 | (6) |
Net change | 80 | 112 |
Foreign currency translation adjustment | 90 | 40 |
Total other comprehensive income, net of tax | 1,972 | 1,021 |
Comprehensive income (loss) | $ (12,654) | $ 1,764 |
Interim Consolidated Statemen_3
Interim Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Tax income from unrealized gains (losses) on marketable securities | $ 146 | $ 70 |
Tax income unrealized gains (losses) on cash flow hedges | $ 6 | $ 9 |
Interim Statements of Sharehold
Interim Statements of Shareholders’ Equity (Unaudited) - USD ($) $ in Thousands | Ordinary shares | Additional paid in capital | Receivables on account of shares | Accumulated other comprehensive income (loss) | Retained earnings | Total | |
Balance at Dec. 31, 2018 | $ 89 | $ 156,714 | $ (238) | $ 22,571 | $ 179,136 | ||
Balance (in Shares) at Dec. 31, 2018 | 35,065,200 | ||||||
Exercise of options and vesting of restricted stock units | [1] | 3,080 | (811) | 2,269 | |||
Exercise of options and vesting of restricted stock units (in Shares) | 317,253 | ||||||
Share-based compensation | 2,743 | 2,743 | |||||
Warrants to customers | 3,406 | 3,406 | |||||
Issuance of ordinary shares in a secondary offering, net of issuance costs in an amount of $660 | $ 14 | 130,113 | 130,127 | ||||
Issuance of ordinary shares in a secondary offering, net of issuance costs in an amount of $660 (in Shares) | 4,991,000 | ||||||
Other comprehensive income | 1,021 | 1,021 | |||||
Net income/loss | (1,129) | (1,129) | |||||
Balance at Jun. 30, 2019 | $ 103 | 296,056 | (811) | 783 | 21,442 | 317,573 | |
Balance (in Shares) at Jun. 30, 2019 | 40,373,453 | ||||||
Balance at Dec. 31, 2019 | $ 105 | 304,617 | 843 | 32,738 | 338,303 | ||
Balance (in Shares) at Dec. 31, 2019 | 40,684,340 | ||||||
Exercise of options and vesting of restricted stock units | $ 1 | 2,816 | (13) | 2,804 | |||
Exercise of options and vesting of restricted stock units (in Shares) | 257,235 | ||||||
Share-based compensation | 4,630 | 4,630 | |||||
Warrants to customers | 1,406 | 1,406 | |||||
Other comprehensive income | 1,972 | 1,972 | |||||
Net income/loss | (14,626) | (14,626) | |||||
Balance at Jun. 30, 2020 | $ 106 | $ 313,469 | $ (13) | $ 2,815 | $ 18,112 | $ 334,489 | |
Balance (in Shares) at Jun. 30, 2020 | 40,941,575 | ||||||
[1] | Represents an amount lower than $1. |
Interim Statements of Shareho_2
Interim Statements of Shareholders’ Equity (Unaudited) (Parentheticals) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Issuance expenses, net | $ 660 |
Interim Consolidated Statemen_4
Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (14,626) | $ 743 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 2,196 | 2,222 |
Fair value of warrants deducted from revenues | 1,406 | 1,534 |
Share-based compensation | 4,630 | 2,743 |
Amortization of premium and accretion of discount on marketable securities, net | 165 | (84) |
Realized gain on sale of marketable securities | (102) | (271) |
Decrease (increase) in trade receivables | 616 | (12,163) |
Decrease (increase) in other receivables and prepaid expenses | (844) | 750 |
Increase in inventory | (5,205) | (1,525) |
Decrease in operating leases right-of-use assets | 33 | 34 |
Increase in deferred taxes, net | (1,384) | (646) |
Decrease (increase) in other long-term assets | (82) | 204 |
Increase (decrease) in trade payables | (9,891) | 3,782 |
Increase (decrease) in operating lease liabilities | (82) | 538 |
Increase (decrease) in employees and payroll accruals | 335 | (783) |
Decrease in deferred revenues and advances from customers | (107) | (1,774) |
Increase in other payables and accrued expenses | 432 | 952 |
Increase in accrued severance pay, net | 63 | 7 |
Decrease in other long-term liabilities | (143) | (210) |
Loss from sale and disposal of property and equipment | 75 | |
Foreign currency translation loss on intercompany balances with foreign subsidiaries | 183 | 11 |
Net cash used in operating activities | (22,332) | (3,936) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (8,511) | (1,964) |
Acquisition of intangible assets and capitalization of software development costs | (121) | (650) |
Proceeds from sale of property and equipment | 4 | |
Cash paid in connection with acquisition | (4,715) | |
Proceeds from (investment in) bank deposits | 15,196 | (77,000) |
Proceeds from sale of marketable securities | 20,802 | 30,445 |
Proceeds from maturity of marketable securities | 17,445 | 500 |
Purchase of marketable securities | (18,542) | (44,599) |
Net cash provided by (used in) investing activities | 26,273 | (97,983) |
Cash flows from financing activities: | ||
Proceeds from public offering, net of issuance costs | 130,379 | |
Exercise of employee stock options | 2,804 | 2,269 |
Payments related to shares withheld for taxes | (64) | |
Payment of contingent consideration | (303) | |
Net cash provided by financing activities | 2,740 | 132,345 |
Foreign currency translation adjustments on cash and cash equivalents | 24 | (8) |
Increase in cash and cash equivalents | 6,705 | 30,418 |
Cash and cash equivalents at the beginning of the period | 40,743 | 74,132 |
Cash and cash equivalents at the end of the period | 47,448 | 104,550 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Property and equipment acquired in credit | 384 | 658 |
Property and equipment transferred to be used as inventory | 51 | |
Inventory transferred to be used as property and equipment | 511 | |
Issuance expenses on credit | 648 | |
Receivables on account of shares | 13 | 811 |
Lease liabilities arising from obtaining right-of-use assets | $ 2,187 | 802 |
Capitalization of software development costs | $ 87 |
General
General | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
GENERAL | NOTE 1:- GENERAL a. Kornit Digital Ltd. (the “Company”) was incorporated in 2002 under the laws of the State of Israel. The Company and its subsidiaries develop, design and market digital printing solutions for the global printed textile industry. The Company’s and its subsidiaries’ solutions are based on their proprietary digital textile printing systems, ink and other consumables, associated software and value-added services. b. The Company established wholly owned subsidiaries in Israel, the United States, Germany, Hong Kong, Japan and the United Kingdom. The Company’s subsidiaries are engaged primarily in services, sales, and marketing, except for the Israeli subsidiary which is engaged primarily in research and development and manufacturing. c. The Company depends on four major suppliers to supply certain components for the production of its products. If one of these suppliers fails to deliver or delays the delivery of the necessary components, the Company will be required to seek alternative sources of supply. A change in these suppliers could result in manufacturing delays, which could cause a possible loss of sales and, consequently, could adversely affect the Company’s results of operations and financial position. d. On February 7, 2019 (the “Closing Date”), the Company, through its wholly owned subsidiary Kornit Digital North America Inc., acquired the business and certain assets of Hirsch Solutions Inc., (“Hirsch”) its distributor in North America. Under the related acquisition agreement, the total consideration of $4,715 was paid at the closing date. The Company incurred acquisition-related costs in a total amount of $85. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES a. Unaudited interim consolidated financial statements: The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. In the opinion of management, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair presentation of the Company’s consolidated financial statements. The balance sheet at December 31, 2019 has been derived from the audited consolidated financial statements of the Company at that date but does not include all information and footnotes required by U.S. GAAP for complete financial statements. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended December 31, 2019, included in the Company’s Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) on March 23, 2020. The significant accounting policies applied in the Company’s audited 2019 consolidated financial statements and notes thereto included in the Annual Report are applied consistently in these unaudited interim consolidated financial statements, except for the adoption of ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) (see Note 2.c). Results for the six months ended June 30, 2020 are not necessarily indicative of results that may be expected for the year ending December 31, 2020. b. Use of estimates: The preparation of the unaudited interim consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the interim consolidated financial statements and the reported amounts of revenues and expenses during the period. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. Actual results could differ from those estimates. On an ongoing basis, the Company’s management evaluates estimates, including those related to intangible assets and goodwill . The duration, scope and effects of the ongoing COVID-19 pandemic, government and other third-party responses to it, and the related macroeconomic effects, including to the Company’s business and the business of the Company’s suppliers and customers are uncertain, rapidly changing and difficult to predict. As a result, the Company’s accounting estimates and assumptions may change over time in response to this evolving situation. Such changes could result in future impairments of intangibles, long-lived assets, inventories, incremental credit losses on receivables and marketable securities, or an increase in the Company’s insurance liabilities as of the time of a relevant measurement event. c. Recently adopted accounting standard: In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The FASB subsequently issued amendments to ASU 2016-13, which have the same effective date and transition date of January 1, 2020. This standard requires entities to estimate an expected lifetime credit loss on financial assets ranging from short-term trade receivable to long-term financial investments and report credit losses using an expected losses model rather than the incurred losses model that was previously used, and establishes additional disclosures related to credit risks. For marketable securities with unrealized losses, the standard eliminates the concept of other-than-temporary impairments and requires allowances to be recorded instead of reducing the amortized cost of the investment. ASU 2016-13 limits the amount of credit losses to be recognized for marketable securities to the amount by which carrying value exceeds fair value and requires the reversal of previously recognized credit losses if fair value increases. The Company adopted Topic 326 effective January 1, 2020. Based on the composition of the Company’s trade receivables and marketable securities, current economic conditions and historical credit loss activity, the adoption of this standard did not have a material impact on the Company’s consolidated financial statements. The interim consolidated financial statements for the six months ended June 30, 2020 are presented under the new standard, while comparative periods presented are not adjusted and continue to be reported in accordance with the Company’s historical accounting policy. |
Marketable Securities
Marketable Securities | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Text Block Supplement [Abstract] | |
MARKETABLE SECURITIES | NOTE 3:- MARKETABLE SECURITIES The following tables summarize our marketable securities by significant investing categories: June 30, 2020 Amortized Gross Gross Fair value Matures within one year: Corporate debentures $ 36,048 $ 405 $ - $ 36,453 36,048 405 - 36,453 Matures after one year through three years: Corporate debentures 68,630 1,959 (1 ) 70,588 Government debentures 3,025 74 - 3,099 71,655 2,033 (1 ) 73,687 Total $ 107,703 $ 2,438 $ (1 ) $ 110,140 December 31, 2019 Amortized Gross Gross Fair value Matures within one year: Corporate debentures $ 27,624 $ 24 $ (11 ) $ 27,637 Government debentures 4,930 - - 4,930 32,554 24 (11 ) 32,567 Matures after one year through three years: Corporate debentures 91,887 575 (117 ) 92,345 Government debentures 3,030 21 (3 ) 3,048 94,917 596 (120 ) 95,393 Total $ 127,471 $ 620 $ (131 ) $ 127,960 Investments with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values were as follows: June 30, 2020 Less than 12 months 12 months or greater Total Fair value Unrealized Fair value Unrealized Fair value Unrealized Corporate debentures $ 2,147 $ (1 ) $ - $ - $ 2,147 $ (1 ) Total $ 2,147 $ (1 ) $ - $ - $ 2,147 $ (1 ) December 31, 2019 Less than 12 months 12 months or greater Total Fair value Unrealized Losses Fair value Unrealized Losses Fair value Unrealized Losses Corporate debentures $ 57,753 $ (127 ) $ 3,801 $ (1 ) $ 61,554 $ (128 ) Government debentures 2,552 (3 ) - - 2,552 (3 ) Total $ 60,305 $ (130 ) $ 3,801 $ (1 ) $ 64,106 $ (131 ) |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 4:- FAIR VALUE MEASUREMENTS FASB Accounting Standards Codification (“ASC”) No. 820, “Fair Value Measurements and Disclosures” defines fair value and establishes a framework for measuring fair value. According to ASC No. 820, fair value is an exit price, representing the amount that would be received for selling an asset or paid for the transfer of a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: Level I: Unadjusted quoted prices in active markets that are accessible on the measurement date for identical, unrestricted assets or liabilities; Level II: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level III: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). The Company measures its marketable securities and foreign currency derivative contracts at fair value. Marketable securities and foreign currency derivative contracts are classified within Level II as the valuation inputs are based on quoted prices and market observable data of similar instruments. The below table sets forth the Company’s assets and liabilities that were measured at fair value as of June 30, 2020 and December 31, 2019 by level within the fair value hierarchy. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. As of June 30, 2020 Level 1 Level 2 Level 3 Total Assets: Marketable securities $ - $ 110,140 $ - $ 110,140 Foreign currency derivative contracts - 97 - 97 Total financial assets $ - $ 110,237 $ - $ 110,237 December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Marketable securities $ - $ 127,960 $ - $ 127,960 Foreign currency derivative contracts - 16 - 16 Total financial assets $ - $ 127,976 $ - $ 127,976 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 5:- INVENTORIES June 30, December 31, 2020 2019 Raw materials and components $ 19,522 $ 21,402 Finished products (*) 22,604 16,075 $ 42,126 $ 37,477 (*) Including amounts of $1,489 and $0 as of June 30, 2020 and December 31, 2019, respectively, with respect to inventory delivered to customers for which revenue was not yet recognized. Inventory write-offs amounted to $2,544 and $1,372 during the six months ended June 30, 2020 and 2019, respectively. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING ACTIVITIES | NOTE 6:- DERIVATIVES AND HEDGING ACTIVITIES The Company follows FASB ASC No. 815,” Derivatives and Hedging” which requires companies to recognize all of their derivative instruments as either assets or liabilities in the statement of financial position at fair value. Accounting for changes in fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging transaction and further, on the type of hedging transaction. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. Due to the Company’s global operations, it is exposed to foreign currency exchange rate fluctuations in the normal course of its business. The Company used derivative financial instruments, specifically foreign currency forward and option contracts (“Hedging Contracts”), to manage exposure to foreign currency risks, by hedging a portion of the Company’s forecasted expenses denominated in New Israeli Shekels expected to incur within a year. The effect of exchange rate changes on foreign currency hedging contracts is expected to partially offset the effect of exchange rate changes on the underlying hedged item. 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 gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains or losses from contracts that were not designated as hedging instruments are recognized in “financial income, net”. a. Derivative instruments notional amounts The following table summarizes the notional amounts for hedged items, when transactions are designated as hedge accounting: June 30, December 31, 2020 2019 Cash flow hedge $ 9,670 $ 6,399 b. Derivative instrument outstanding As of June 30, 2020, and December 31, 2019, the fair value of the Company’s outstanding forward and option contracts amounted to $97 and $16 which is included within “Other accounts receivable and prepaid expenses” in the balance sheets. c. Derivative instrument gains and losses During the six months ended June 30, 2020 and 2019, the company recorded pretax income of $1 and $13, respectively from derivatives designated in cash flow hedging relationships. The Company’s outstanding derivatives designated as cash flow hedging instruments and their related gains and losses, are reported in the statement of cash flows as cash flows from operating activities. The maximum length of time over which the Company is hedging its exposure to the variability in future cash flows for forecasted transactions is less than 12 months. The estimated net amount of the existing gains that are reported in accumulated other comprehensive income at the reporting date that is expected to be reclassified into earnings within the next 12 months is $89. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 7:- COMMITMENTS AND CONTINGENT LIABILITIES a. Charges: As of June 30, 2020, the Company has a line of credit with an Israeli bank for total borrowings of up to $1.0 million. This line of credit is unsecured and available provided that the Company maintains a 30% ratio of total tangible shareholders’ equity to total tangible assets and that the total credit use will be less than 70% of the Company and its subsidiaries’ receivables. Interest rates across this credit line varied from 0.3% to Prime (Israel Interbank Offered Rate) +0.7% (current 2.3%) as of June 30, 2020. As of June 30, 2020, the Company has not utilized its line of credit. b. Purchase commitments: As of June 30, 2020, the Company has purchase commitments from vendors in the amount of $18,427. These commitments are due primarily within one year. c. Litigation: From time to time, the Company is party to various legal proceedings, claims and litigation that arise in the normal course of business. It is the opinion of management that the ultimate outcome of these matters will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. d. Royalty Commitments: Under the Company’s agreement for purchasing print heads and other products, which was amended in 2016, the Company is obligated to pay 2.5% royalties of its annual ink revenues up to an annual maximum amount of $625. Royalty expenses for the six months ended June 30, 2020 and 2019 were $312. e. Guarantees: As of June 30, 2020, the Company provided three bank guarantees in a total amount of $403 for its rented facilities. |
Earnings (Losses) Per Share
Earnings (Losses) Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSSES) PER SHARE | NOTE 8:- EARNINGS (LOSSES) PER SHARE The following table sets forth the computation of basic and diluted net earnings per share: Six months ended 2020 2019 Numerator for basic and diluted net earnings (losses) per share: Net income (loss) $ (14,626 ) $ 743 Weighted average shares outstanding: Denominator for basic earnings (losses) per share 40,817,593 35,547,223 Effect of dilutive securities: Share options, warrants and restricted share units - 1,042,807 Denominator for diluted earnings (losses) per share 40,817,593 36,590,030 Basic and diluted earnings (losses) per share $ (0.36 ) $ 0.02 During the six months ended June 30, 2020, the Company was in a loss position and therefore all its securities were antidilutive. The total number of shares related to the outstanding options and RSUs excluded from the calculation of diluted earnings per share due to their anti-dilutive effect was 559,398 for the six months ended June 30, 2019. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS’ EQUITY | NOTE 9:- SHAREHOLDERS’ EQUITY a. Company’s shares: 1. Ordinary shares: Any ordinary share confers equal rights to dividends and bonus shares, and to participate in the distribution of surplus assets upon liquidation in proportion to the par value of each share regardless of any premium paid thereon, all subject to the provisions of the Company’s articles of association. Each ordinary share confers its holder the right to participate in the general meeting of the Company and one vote in the voting. 2. On June 18, 2019, the Company closed a follow on and secondary offering where by 4,991,000 ordinary shares were sold in the transaction to the public. The aggregate net proceeds received by the Company from the offering were $129,710, net of underwriting discounts, commissions and offering expenses. b. Share option and RSU’s plans: A summary of the Company’s share option activity for the six months ended June 30, 2020and related information is as follows: Number Weighted Weighted- Aggregate Outstanding as of December 31, 2019 1,072,777 $ 17.17 7.73 $ 18,170 Granted - - - Exercised (197,022 ) 14.29 Forfeited (14,581 ) 17.12 Outstanding as of June 30, 2020 861,174 $ 17.83 7.37 $ 30,612 Exercisable at end of period 400,138 $ 14.55 6.55 $ 15,538 As of June 30, 2020, the Company had $4,237 of unrecognized compensation expense related to non-vested stock option expected to be recognized over a weighted average period of 2.22 years. A summary of the Company’s RSUs activity is as follows: Six months June 30, Unvested as of December 31, 2019 678,303 Granted 321,094 Vested (60,212 ) Forfeited (18,922 ) Unvested as of June 30, 2020 920,263 The weighted average fair values at grant date of RSUs granted for the six months ended June 30, 2020 was $33.12. As of June 30, 2020, the Company had $21,184 of unrecognized compensation expense related to RSUs expected to be recognized over a weighted average period of 3.23 years. c. The Company’s Board of Directors approved Equity Incentive Plans pursuant to which the Company is authorized to issue to employees, directors and officers of the Company and its subsidiaries (the “optionees”) options to purchase ordinary shares of NIS 0.01 par value each, at an exercise price equal to at least the fair market value of the ordinary shares at the date of grant. 25% of total options are exercisable one year after the date determined for each optionee and a further 6.25% at the end of each subsequent three-month period for 3 years. Under the Equity Incentive Plans and starting 2017, the Company grants Restricted Stock Units (“RSUs”). The RSU’s generally vest over a period of four years of employment. Options and RSU that have vested are exercisable for up to 10 years from the grant date of the options or RSU to each employee. Options and RSUs that are cancelled or forfeited before expiration become available for future grants. As of June 30, 2020, an aggregate of 2,981,902 ordinary shares are available for future grants. d. The following table sets forth the total share-based compensation expense included in the consolidated statements of operations for the six months ended June 30, 2020 and 2019: Six months ended 2020 2019 Cost of products $ 491 $ 237 Cost of services 360 230 Research and development 780 600 Selling and marketing 1,381 636 General and administrative 1,618 1,040 Total share-based compensation expense $ 4,630 $ 2,743 On January 10, 2017, the Company signed a master purchase agreement with Amazon Inc. under which 2,932,176 warrants to purchase ordinary shares of the Company at an exercise price of $13.04 were issued to Amazon as a customer incentive. The warrants are subject to vesting as a function of payments for purchased products and services of up to $150,000 beginning on May 1, 2016, with the shares vesting incrementally each time Amazon makes a payment totaling $5,000 to the Company till January 10, 2022. As of June 30, 2020, 1,832,595 warrants are exercisable. The Company utilizes a Monte Carlo simulation approach to estimate the fair value of the warrants, which requires inputs such as common ordinary share, the warrant exercise price, estimated ordinary share price volatility and risk-free interest rate, among others. The Company recognized a reduction to revenues of $1.4 million and $1.5 million during the six months ended June 30, 2020, and 2019, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 10:- ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in accumulated balances of other comprehensive income (loss), net of taxes: Unrealized Unrealized Foreign Total Unaudited Six months ended June 30, 2020: Beginning balance $ 452 $ 9 $ 382 $ 843 Other comprehensive income before reclassifications 1,904 54 90 2,048 Amounts reclassified from accumulated other comprehensive income (loss) (102 ) 26 - (76 ) Net current period other Comprehensive income 1,802 80 90 1,972 Ending Balance $ 2,254 $ 89 $ 472 $ 2,815 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Text Block [Abstract] | |
LEASES | NOTE 11:- LEASES The components of lease expense for the six months ended June 30, 2020 and 2019 were as follows: Six months ended 2020 2019 Operating lease $ 2,245 $ 1,828 Short-term lease 25 102 Total lease expense $ 2,270 $ 1,930 Cash paid for amounts included in the measurement of operating lease liabilities was $2,212 and $1,793 during the six months ended June 30, 2020 and 2019, respectively. The Company’s operating lease agreements have remaining lease terms ranging from 1 year to 11 years, including agreements with options to extend the leases for up to 5 years. The following table represents the weighted-average remaining lease term and discount rate: June 30, Weighted average remaining lease term 8.8 years Weighted average discount rate 2.9 % The discount rate was determined based on the estimated collateralized borrowing rate of the Company, adjusted to the specific lease term and location of each lease. Maturities of operating lease liabilities were as follows: The remainder of 2020 $ 2,388 2021 4,191 2022 3,300 2023 2,548 2024 2,511 2025 and thereafter 11,215 Total operating lease payments $ 26,153 Less: imputed interest 3,016 Present value of lease liabilities $ 23,137 |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2020 | |
Revenue Recognition [Abstract] | |
REVENUE RECOGNITION | NOTE 12:- REVENUE RECOGNITION Revenue disaggregated by revenue source for the six months ended June 30, 2020 and 2019, consists of the following: Six months ended 2020 2019 Systems $ 26,392 $ 42,596 Ink and consumables 27,854 28,434 Spare parts 5,360 10,542 Service contracts 4,042 2,351 Total revenue $ 63,648 $ 83,923 The following table presents revenue disaggregated by geography based on customer location: Six months ended 2020 2019 U.S $ 41,302 $ 45,328 EMEA 13,586 24,072 Asia Pacific 6,090 11,425 Other 2,670 3,098 Total revenue $ 63,648 $ 83,923 Remaining performance obligations represents contracted revenues that have not yet been recognized, which includes deferred revenues and non-cancelable contracts that will be invoiced and recognized as revenue in future periods. The following table represents the remaining performance obligations as of June 30, 2020, which are expected to be satisfied and recognized in future periods: Remainder 2021 2022 and Product $ 4,867 $ 447 $ - Services 3,693 1,975 802 Total $ 8,560 $ 2,422 $ 802 Contract liabilities include amounts received from customers for which revenue has not yet been recognized. Contract liabilities amounted to $2,652 and $2,867 as of June 30, 2020 and December 31, 2019, respectively and are presented under deferred revenues and advances from customers and other long-term liabilities. During the six months ended June 30, 2020, the Company recognized revenues in the amount of $1,558 which have been included in the contract liabilities at January 1, 2020. Provision for returns amounted to $716 and $721 as of June 30, 2020 and December 31, 2019, respectively. |
Taxes on Income
Taxes on Income | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
TAXES ON INCOME | NOTE 13:- TAXES ON INCOME a. The main reconciling items between the theoretical and actual tax rate during the six months ended June 30, 2020, derives mainly from: tax expense related to the Company’s foreign subsidiaries income at different tax rates and deferred tax benefit recognized in Israel related to current losses at Beneficiary Enterprise reduced tax rates. b. The Company and its Israeli subsidiary received final tax assessments through 2012 and are currently subject to a tax audit for the years 2013 to 2018 by the Israeli Tax Authority (“ITA”). The Company received an assessment for years 2013 and 2014 which is still subject to another review by the ITA before it is finalized. The Company appealed before the second review and it believes the claims and the position taken on its tax returns are solid and valid. The ITA may furthermore disagree with the Company and its Israeli subsidiary positions taken for other years as well, and the Company may be subject to additional tax liabilities, which could have a material adverse effect on its results of operations. The U.S subsidiary received final tax assessment through 2012, the German subsidiary received final tax assessment through 2014, the Hong Kong subsidiary, the United Kingdom Subsidiary and the Japan subsidiary have not received a final tax assessment since inception. |
Transactions with Related Parti
Transactions with Related Parties | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
TRANSACTIONS WITH RELATED PARTIES | NOTE 14:- TRANSACTIONS WITH RELATED PARTIES The Company’s policy is to enter into transactions with related parties on terms that, on the whole, are no less favorable, than those available from unaffiliated third parties. Based on the Company’s experience in the business sectors in which it operates and the terms of its transactions with unaffiliated third parties, the Company believes that all of the transactions described below met this policy at the time they occurred. 1. Fritz Companies Israel T. Ltd. (“Fritz”) Fritz is a logistics company which is owned, in part, by few of the Company’s Board members. The Company has an ongoing logistic contract with Fritz. During the six months ended June 30, 2020 and 2019 logistic service fees amounted to $1,396 and $1,510, respectively. 2. Acord Insurance Agency Ltd. (“Acord”) Acord is an insurance company which is owned, in part, by the Chairman of the Board. The Company entered a business and professional insurance contracts with Acord. During the six months ended June 30, 2020 and 2019 total premium under the contracts was $551 and $355, respectively. 3. Priority Software Ltd. (“Priority”) Priority is the Company’s ERP solution provider, which is owned, in part by few of the Company’s Board members. During the six months ended June 30, 2020 and 2019 maintenances fees and additional licenses acquired amounted to $35. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 15:- SUBSEQUENT EVENT On August 7, 2020, the Company has closed a share purchase agreement with Custom Gateway Limited (“Custom Gateway”), an innovative technology provider of cloud-based software workflow solutions for on-demand production business models. Under the agreement the Company purchased 100% of Custom Gateway’s shares for a total consideration of approximately $17,000. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Unaudited interim consolidated financial statements | a. Unaudited interim consolidated financial statements: The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. In the opinion of management, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair presentation of the Company’s consolidated financial statements. The balance sheet at December 31, 2019 has been derived from the audited consolidated financial statements of the Company at that date but does not include all information and footnotes required by U.S. GAAP for complete financial statements. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended December 31, 2019, included in the Company’s Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) on March 23, 2020. The significant accounting policies applied in the Company’s audited 2019 consolidated financial statements and notes thereto included in the Annual Report are applied consistently in these unaudited interim consolidated financial statements, except for the adoption of ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) (see Note 2.c). Results for the six months ended June 30, 2020 are not necessarily indicative of results that may be expected for the year ending December 31, 2020. |
Use of estimates | b. Use of estimates: The preparation of the unaudited interim consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the interim consolidated financial statements and the reported amounts of revenues and expenses during the period. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. Actual results could differ from those estimates. On an ongoing basis, the Company’s management evaluates estimates, including those related to intangible assets and goodwill . The duration, scope and effects of the ongoing COVID-19 pandemic, government and other third-party responses to it, and the related macroeconomic effects, including to the Company’s business and the business of the Company’s suppliers and customers are uncertain, rapidly changing and difficult to predict. As a result, the Company’s accounting estimates and assumptions may change over time in response to this evolving situation. Such changes could result in future impairments of intangibles, long-lived assets, inventories, incremental credit losses on receivables and marketable securities, or an increase in the Company’s insurance liabilities as of the time of a relevant measurement event. |
Recently adopted accounting standard | c. Recently adopted accounting standard: In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The FASB subsequently issued amendments to ASU 2016-13, which have the same effective date and transition date of January 1, 2020. This standard requires entities to estimate an expected lifetime credit loss on financial assets ranging from short-term trade receivable to long-term financial investments and report credit losses using an expected losses model rather than the incurred losses model that was previously used, and establishes additional disclosures related to credit risks. For marketable securities with unrealized losses, the standard eliminates the concept of other-than-temporary impairments and requires allowances to be recorded instead of reducing the amortized cost of the investment. ASU 2016-13 limits the amount of credit losses to be recognized for marketable securities to the amount by which carrying value exceeds fair value and requires the reversal of previously recognized credit losses if fair value increases. The Company adopted Topic 326 effective January 1, 2020. Based on the composition of the Company’s trade receivables and marketable securities, current economic conditions and historical credit loss activity, the adoption of this standard did not have a material impact on the Company’s consolidated financial statements. The interim consolidated financial statements for the six months ended June 30, 2020 are presented under the new standard, while comparative periods presented are not adjusted and continue to be reported in accordance with the Company’s historical accounting policy. |
Marketable Securities (Tables)
Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of marketable securities by significant investing categories | June 30, 2020 Amortized Gross Gross Fair value Matures within one year: Corporate debentures $ 36,048 $ 405 $ - $ 36,453 36,048 405 - 36,453 Matures after one year through three years: Corporate debentures 68,630 1,959 (1 ) 70,588 Government debentures 3,025 74 - 3,099 71,655 2,033 (1 ) 73,687 Total $ 107,703 $ 2,438 $ (1 ) $ 110,140 December 31, 2019 Amortized Gross Gross Fair value Matures within one year: Corporate debentures $ 27,624 $ 24 $ (11 ) $ 27,637 Government debentures 4,930 - - 4,930 32,554 24 (11 ) 32,567 Matures after one year through three years: Corporate debentures 91,887 575 (117 ) 92,345 Government debentures 3,030 21 (3 ) 3,048 94,917 596 (120 ) 95,393 Total $ 127,471 $ 620 $ (131 ) $ 127,960 |
Schedule of continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values | June 30, 2020 Less than 12 months 12 months or greater Total Fair value Unrealized Fair value Unrealized Fair value Unrealized Corporate debentures $ 2,147 $ (1 ) $ - $ - $ 2,147 $ (1 ) Total $ 2,147 $ (1 ) $ - $ - $ 2,147 $ (1 ) December 31, 2019 Less than 12 months 12 months or greater Total Fair value Unrealized Losses Fair value Unrealized Losses Fair value Unrealized Losses Corporate debentures $ 57,753 $ (127 ) $ 3,801 $ (1 ) $ 61,554 $ (128 ) Government debentures 2,552 (3 ) - - 2,552 (3 ) Total $ 60,305 $ (130 ) $ 3,801 $ (1 ) $ 64,106 $ (131 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | As of June 30, 2020 Level 1 Level 2 Level 3 Total Assets: Marketable securities $ - $ 110,140 $ - $ 110,140 Foreign currency derivative contracts - 97 - 97 Total financial assets $ - $ 110,237 $ - $ 110,237 December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Marketable securities $ - $ 127,960 $ - $ 127,960 Foreign currency derivative contracts - 16 - 16 Total financial assets $ - $ 127,976 $ - $ 127,976 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | June 30, December 31, 2020 2019 Raw materials and components $ 19,522 $ 21,402 Finished products (*) 22,604 16,075 $ 42,126 $ 37,477 (*) Including amounts of $1,489 and $0 as of June 30, 2020 and December 31, 2019, respectively, with respect to inventory delivered to customers for which revenue was not yet recognized. |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of transactions are designated as hedge accounting | June 30, December 31, 2020 2019 Cash flow hedge $ 9,670 $ 6,399 |
Earnings (Losses) Per Share (Ta
Earnings (Losses) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted net earnings per share | Six months ended 2020 2019 Numerator for basic and diluted net earnings (losses) per share: Net income (loss) $ (14,626 ) $ 743 Weighted average shares outstanding: Denominator for basic earnings (losses) per share 40,817,593 35,547,223 Effect of dilutive securities: Share options, warrants and restricted share units - 1,042,807 Denominator for diluted earnings (losses) per share 40,817,593 36,590,030 Basic and diluted earnings (losses) per share $ (0.36 ) $ 0.02 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Summary of company's share option activity | Number Weighted Weighted- Aggregate Outstanding as of December 31, 2019 1,072,777 $ 17.17 7.73 $ 18,170 Granted - - - Exercised (197,022 ) 14.29 Forfeited (14,581 ) 17.12 Outstanding as of June 30, 2020 861,174 $ 17.83 7.37 $ 30,612 Exercisable at end of period 400,138 $ 14.55 6.55 $ 15,538 |
Summary of the RSUs activity | Six months June 30, Unvested as of December 31, 2019 678,303 Granted 321,094 Vested (60,212 ) Forfeited (18,922 ) Unvested as of June 30, 2020 920,263 |
Schedule of share based compensation expense | Six months ended 2020 2019 Cost of products $ 491 $ 237 Cost of services 360 230 Research and development 780 600 Selling and marketing 1,381 636 General and administrative 1,618 1,040 Total share-based compensation expense $ 4,630 $ 2,743 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of changes in accumulated balances of other comprehensive income (loss) | Unrealized Unrealized Foreign Total Unaudited Six months ended June 30, 2020: Beginning balance $ 452 $ 9 $ 382 $ 843 Other comprehensive income before reclassifications 1,904 54 90 2,048 Amounts reclassified from accumulated other comprehensive income (loss) (102 ) 26 - (76 ) Net current period other Comprehensive income 1,802 80 90 1,972 Ending Balance $ 2,254 $ 89 $ 472 $ 2,815 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Schedule of lease expense | Six months ended 2020 2019 Operating lease $ 2,245 $ 1,828 Short-term lease 25 102 Total lease expense $ 2,270 $ 1,930 |
Schedule of weighted average remaining lease term and discount rate | June 30, Weighted average remaining lease term 8.8 years Weighted average discount rate 2.9 % |
Schedule of operating lease liabilities | The remainder of 2020 $ 2,388 2021 4,191 2022 3,300 2023 2,548 2024 2,511 2025 and thereafter 11,215 Total operating lease payments $ 26,153 Less: imputed interest 3,016 Present value of lease liabilities $ 23,137 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue Recognition [Abstract] | |
Schedule of Revenue disaggregated by revenue source | Six months ended 2020 2019 Systems $ 26,392 $ 42,596 Ink and consumables 27,854 28,434 Spare parts 5,360 10,542 Service contracts 4,042 2,351 Total revenue $ 63,648 $ 83,923 |
Schedule of revenue disaggregated by geography based on customer location | Six months ended 2020 2019 U.S $ 41,302 $ 45,328 EMEA 13,586 24,072 Asia Pacific 6,090 11,425 Other 2,670 3,098 Total revenue $ 63,648 $ 83,923 |
Schedule of remaining performance obligations represents contracted revenues | Remainder 2021 2022 and Product $ 4,867 $ 447 $ - Services 3,693 1,975 802 Total $ 8,560 $ 2,422 $ 802 |
General (Details)
General (Details) $ in Thousands | Feb. 07, 2019USD ($) | Jun. 30, 2020 |
General (Details) [Line Items] | ||
Number of suppliers | 4 | |
Business Acquisition [Member] | ||
General (Details) [Line Items] | ||
Acquisition consideration paid | $ 4,715 | |
Acquisition related cost | $ 85 |
Marketable Securities (Details)
Marketable Securities (Details) - Schedule of marketable securities by significant investing categories - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Matures within one year: | ||
Amortized cost | $ 107,703 | $ 127,471 |
Gross unrealized gain | 2,438 | 620 |
Gross unrealized loss | (1) | (131) |
Fair value | 110,140 | 127,960 |
Matures within one year: Corporate debentures [Member] | ||
Matures within one year: | ||
Amortized cost | 36,048 | 27,624 |
Gross unrealized gain | 405 | 24 |
Gross unrealized loss | (11) | |
Fair value | 36,453 | 27,637 |
Matures within one year [Member] | ||
Matures within one year: | ||
Amortized cost | 36,048 | 32,554 |
Gross unrealized gain | 405 | 24 |
Gross unrealized loss | (11) | |
Fair value | 36,453 | 32,567 |
Matures after one year through three years: Corporate debentures [Member] | ||
Matures within one year: | ||
Amortized cost | 68,630 | 91,887 |
Gross unrealized gain | 1,959 | 575 |
Gross unrealized loss | (1) | (117) |
Fair value | 70,588 | 92,345 |
Matures after one year through three years: Government debentures [Member] | ||
Matures within one year: | ||
Amortized cost | 3,025 | 3,030 |
Gross unrealized gain | 74 | 21 |
Gross unrealized loss | (3) | |
Fair value | 3,099 | 3,048 |
Matures after one year through three years [Member] | ||
Matures within one year: | ||
Amortized cost | 71,655 | 94,917 |
Gross unrealized gain | 2,033 | 596 |
Gross unrealized loss | (1) | (120) |
Fair value | $ 73,687 | 95,393 |
Matures within one year, Government debentures [Member] | ||
Matures within one year: | ||
Amortized cost | 4,930 | |
Gross unrealized gain | ||
Gross unrealized loss | ||
Fair value | $ 4,930 |
Marketable Securities (Detail_2
Marketable Securities (Details) - Schedule of investments with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Marketable Securities (Details) - Schedule of investments with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values [Line Items] | ||
Fair value | $ 2,147 | $ 60,305 |
Unrealized losses | (1) | (130) |
Fair value | 3,801 | |
Unrealized losses | (1) | |
Fair value | 2,147 | 64,106 |
Unrealized losses | (1) | (131) |
Corporate debentures [Member] | ||
Marketable Securities (Details) - Schedule of investments with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values [Line Items] | ||
Fair value | 2,147 | 57,753 |
Unrealized losses | (1) | (127) |
Fair value | 3,801 | |
Unrealized losses | (1) | |
Fair value | 2,147 | 61,554 |
Unrealized losses | $ (1) | (128) |
Government debentures [Member] | ||
Marketable Securities (Details) - Schedule of investments with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values [Line Items] | ||
Fair value | 2,552 | |
Unrealized losses | (3) | |
Fair value | ||
Unrealized losses | ||
Fair value | 2,552 | |
Unrealized losses | $ (3) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Schedule of assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Marketable securities | $ 110,140 | $ 127,960 |
Foreign currency derivative contracts | 97 | 16 |
Total financial assets | 110,237 | 127,976 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Marketable securities | ||
Foreign currency derivative contracts | ||
Total financial assets | ||
Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Marketable securities | 110,140 | 127,960 |
Foreign currency derivative contracts | 97 | 16 |
Total financial assets | 110,237 | 127,976 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Marketable securities | ||
Foreign currency derivative contracts | ||
Total financial assets |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |||
Inventory related to differed revenues | $ 1,489 | $ 0 | |
Inventory write - offs | $ 2,544 | $ 1,372 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Schedule of inventories [Abstract] | |||
Raw materials and components | $ 19,522 | $ 21,402 | |
Finished products | [1] | 22,604 | 16,075 |
Inventories | $ 42,126 | $ 37,477 | |
[1] | Including amounts of $1,489 and $0 as of June 30, 2020 and December 31, 2019, respectively, with respect to inventory delivered to customers for which revenue was not yet recognized. |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Fair value of outstanding forward and option | $ 97 | $ 16 | |
Pretax income from derivatives designated in cash flow hedging relationships | 1 | $ 13 | |
Estimated net amount of existing gains reported in accumulated other comprehensive income | $ 89 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities (Details) - Schedule of transactions are designated as hedge accounting - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Schedule of transactions are designated as hedge accounting [Abstract] | ||
Cash flow hedge | $ 9,670 | $ 6,399 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2016USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |||
Lines of credit maximum borrowings | $ 1,000 | ||
Interest rate, description | This line of credit is unsecured and available provided that the Company maintains a 30% ratio of total tangible shareholders’ equity to total tangible assets and that the total credit use will be less than 70% of the Company and its subsidiaries’ receivables. Interest rates across this credit line varied from 0.3% to Prime (Israel Interbank Offered Rate) +0.7% (current 2.3%) as of June 30, 2020. | ||
Purchase commitments | $ 18,427 | ||
Royalties percentage | 2.50% | ||
Maximum amount of royalties payment | $ 625 | ||
Royalty expense | 312 | $ 312 | |
Number of banks | Banks | 3 | ||
Actual guaranteed rent | $ 403 |
Earnings (Losses) Per Share (De
Earnings (Losses) Per Share (Details) | 6 Months Ended |
Jun. 30, 2020shares | |
Earnings Per Share [Abstract] | |
Shares excluded from the calculation of diluted earnings per share due to their anti-dilutive effect | 559,398 |
Earnings (Losses) Per Share (_2
Earnings (Losses) Per Share (Details) - Schedule of computation of basic and diluted net earnings per share - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Schedule of computation of basic and diluted net earnings per share [Abstract] | ||
Net income (loss) (in Dollars) | $ (14,626) | $ 743 |
Denominator for basic earnings (losses) per share | 40,817,593 | 35,547,223 |
Share options, warrants and restricted share units | 1,042,807 | |
Denominator for diluted earnings (losses) per share | 40,817,593 | 36,590,030 |
Basic and diluted earnings (losses) per share (in Dollars per share) | $ (0.36) | $ 0.02 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) $ / shares in Units, $ in Thousands | Jun. 18, 2019USD ($)shares | Jan. 10, 2017USD ($)$ / sharesshares | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2019USD ($) | Dec. 31, 2019 | Dec. 31, 2017 | Jun. 30, 2020₪ / shares |
Shareholders' Equity (Details) [Line Items] | |||||||
Net proceeds from offering | $ 130,379 | ||||||
Unrecognized compensation expense | $ 4,237 | ||||||
Weighted average vesting period | 2 years 2 months 19 days | ||||||
Ordinary shares, par value (in New Shekels per share) | ₪ / shares | ₪ 0.01 | ||||||
Ordinary shares available for future grant (in Shares) | shares | 2,981,902 | ||||||
Recognized reduction revenues | $ 1,400 | $ 1,500 | |||||
Master Purchase Agreement [Member] | |||||||
Shareholders' Equity (Details) [Line Items] | |||||||
Warrants to purchase ordinary shares (in Shares) | shares | 2,932,176 | ||||||
Exercise price (in Dollars per share) | $ / shares | $ 13.04 | ||||||
Payments for purchased products and services | $ 150,000 | ||||||
Vasting payments | $ 5,000 | ||||||
Class of warrant exercisable (in Shares) | shares | 1,832,595 | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Shareholders' Equity (Details) [Line Items] | |||||||
Unrecognized compensation expense | $ 21,184 | ||||||
Weighted average vesting period | 3 years 2 months 23 days | ||||||
Weighted average fair value of options granted (in Dollars per share) | $ / shares | $ 33.12 | ||||||
Options exercisable, description | 25% of total options are exercisable one year after the date determined for each optionee and a further 6.25% at the end of each subsequent three-month period for 3 years.Under the Equity Incentive Plans and starting 2017, the Company grants Restricted Stock Units (“RSUs”). The RSU’s generally vest over a period of four years of employment. Options and RSU that have vested are exercisable for up to 10 years from the grant date of the options or RSU to each employee. Options and RSUs that are cancelled or forfeited before expiration become available for future grants. | ||||||
Vesting payment | 4 years | ||||||
IPO [Member] | |||||||
Shareholders' Equity (Details) [Line Items] | |||||||
Ordinary shares sold (in Shares) | shares | 4,991,000 | ||||||
Net proceeds from offering | $ 129,710 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - Summary of company's share option activity $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($)$ / sharesshares | |
Summary of company's share option activity [Abstract] | |
Number of Options, Outstanding, Beginning balance | shares | 1,072,777 |
Weighted average exercise price Outstanding, Beginning balance | $ / shares | $ 17.17 |
Weighted- average remaining contractual term Weighted- average remaining contractual term | 7 years 8 months 23 days |
Aggregate intrinsic value Aggregate intrinsic value | $ | $ 18,170 |
Number of shares upon exercise, Outstanding, Ending balance | shares | 861,174 |
Weighted average exercise price, Outstanding, Ending balance | $ / shares | $ 17.83 |
Weighted- average remaining contractual term, Outstanding, Ending balance | 7 years 4 months 13 days |
Aggregate intrinsic value, Outstanding, Ending balance | $ | $ 30,612 |
Number of shares upon exercise, Exercisable | shares | 400,138 |
Weighted average exercise price, Exercisable | $ / shares | $ 14.55 |
Weighted- average remaining contractual term, Exercisable | 6 years 6 months 18 days |
Aggregate intrinsic value, Exercisable | $ | $ 15,538 |
Number of shares upon exercise, Granted | shares | |
Weighted average exercise price, Granted | $ / shares | |
Number of shares upon exercise, Exercised | shares | (197,022) |
Weighted average exercise price, Exercised | $ / shares | $ 14.29 |
Number of shares upon exercise, Forfeited | shares | (14,581) |
Weighted average exercise price, Forfeited | $ / shares | $ 17.12 |
Shareholders' Equity (Details_2
Shareholders' Equity (Details) - Summary of the RSUs activity - Restricted Stock Units (RSUs) [Member] | 6 Months Ended |
Jun. 30, 2020shares | |
Shareholders' Equity (Details) - Summary of the RSUs activity [Line Items] | |
Unvested at beginning of year | 678,303 |
Granted | 321,094 |
Vested | (60,212) |
Forfeited | (18,922) |
Unvested at the end of the year | 920,263 |
Shareholders' Equity (Details_3
Shareholders' Equity (Details) - Schedule of share based compensation expense - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Shareholders' Equity (Details) - Schedule of share based compensation expense [Line Items] | ||
Total share-based compensation expense | $ 4,630 | $ 2,743 |
Cost of products [Member] | ||
Shareholders' Equity (Details) - Schedule of share based compensation expense [Line Items] | ||
Total share-based compensation expense | 491 | 237 |
Cost of services [Member] | ||
Shareholders' Equity (Details) - Schedule of share based compensation expense [Line Items] | ||
Total share-based compensation expense | 360 | 230 |
Research and development [Member] | ||
Shareholders' Equity (Details) - Schedule of share based compensation expense [Line Items] | ||
Total share-based compensation expense | 780 | 600 |
Selling and marketing [Member] | ||
Shareholders' Equity (Details) - Schedule of share based compensation expense [Line Items] | ||
Total share-based compensation expense | 1,381 | 636 |
General and administrative [Member] | ||
Shareholders' Equity (Details) - Schedule of share based compensation expense [Line Items] | ||
Total share-based compensation expense | $ 1,618 | $ 1,040 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - Schedule of changes in accumulated balances of other comprehensive income (loss) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | $ 843 |
Other comprehensive income before reclassifications | 2,048 |
Amounts reclassified from accumulated other comprehensive income (loss) | (76) |
Net current period other Comprehensive income | 1,972 |
Ending Balance | 2,815 |
Unrealized gain (loss) on marketable securities [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | 452 |
Other comprehensive income before reclassifications | 1,904 |
Amounts reclassified from accumulated other comprehensive income (loss) | (102) |
Net current period other Comprehensive income | 1,802 |
Ending Balance | 2,254 |
Unrealized gain on cash flow hedges [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | 9 |
Other comprehensive income before reclassifications | 54 |
Amounts reclassified from accumulated other comprehensive income (loss) | 26 |
Net current period other Comprehensive income | 80 |
Ending Balance | 89 |
Foreign currency translation adjustment [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | 382 |
Other comprehensive income before reclassifications | 90 |
Amounts reclassified from accumulated other comprehensive income (loss) | |
Net current period other Comprehensive income | 90 |
Ending Balance | $ 472 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure Text Block [Abstract] | ||
Cash paid for measurement of operating lease liabilities | $ 2,212 | $ 1,793 |
Leases, description | The Company’s operating lease agreements have remaining lease terms ranging from 1 year to 11 years, including agreements with options to extend the leases for up to 5 years. |
Leases (Details) - Schedule of
Leases (Details) - Schedule of components of lease expense - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Schedule of components of lease expense [Abstract] | ||
Operating lease | $ 2,245 | $ 1,828 |
Short-term lease | 25 | 102 |
Total lease expense | $ 2,270 | $ 1,930 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of weighted-average remaining lease term and discount rate | Jun. 30, 2020 |
Schedule of weighted-average remaining lease term and discount rate [Abstract] | |
Weighted average remaining lease term | 8 years 9 months 18 days |
Weighted average discount rate | 2.90% |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of maturities of operating lease liabilities $ in Thousands | Jun. 30, 2020USD ($) |
Schedule of maturities of operating lease liabilities [Abstract] | |
The remainder of 2020 | $ 2,388 |
2021 | 4,191 |
2022 | 3,300 |
2023 | 2,548 |
2024 | 2,511 |
2025 and thereafter | 11,215 |
Total operating lease payments | 26,153 |
Less: imputed interest | 3,016 |
Present value of lease liabilities | $ 23,137 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Revenue Recognition [Abstract] | ||
Contract liabilities | $ 2,652 | $ 2,867 |
Recognized revenues | 1,558 | |
Provision for returns | $ 716 | $ 721 |
Revenue Recognition (Details) -
Revenue Recognition (Details) - Schedule of Revenue disaggregated by revenue source - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Systems [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 26,392 | $ 42,596 |
Ink and consumables [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 27,854 | 28,434 |
Spare parts [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 5,360 | 10,542 |
Service contracts [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 4,042 | 2,351 |
Total revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 63,648 | $ 83,923 |
Revenue Recognition (Details)_2
Revenue Recognition (Details) - Schedule of revenue disaggregated by geography based on customer location - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue Recognition (Details) - Schedule of revenue disaggregated by geography based on customer location [Line Items] | ||
Total revenue | $ 63,648 | $ 83,923 |
U.S [Member] | ||
Revenue Recognition (Details) - Schedule of revenue disaggregated by geography based on customer location [Line Items] | ||
Revenue | 41,302 | 45,328 |
EMEA [Member] | ||
Revenue Recognition (Details) - Schedule of revenue disaggregated by geography based on customer location [Line Items] | ||
Revenue | 13,586 | 24,072 |
Asia Pacific [Member] | ||
Revenue Recognition (Details) - Schedule of revenue disaggregated by geography based on customer location [Line Items] | ||
Revenue | 6,090 | 11,425 |
Other [Member] | ||
Revenue Recognition (Details) - Schedule of revenue disaggregated by geography based on customer location [Line Items] | ||
Revenue | $ 2,670 | $ 3,098 |
Revenue Recognition (Details)_3
Revenue Recognition (Details) - Schedule of remaining performance obligations represents contracted revenues $ in Thousands | Jun. 30, 2020USD ($) |
Remainder of 2020 [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total | $ 8,560 |
2021 [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total | 2,422 |
2022 and thereafter [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total | 802 |
Product [Member] | Remainder of 2020 [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total | 4,867 |
Product [Member] | 2021 [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total | 447 |
Product [Member] | 2022 and thereafter [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total | |
Services [Member] | Remainder of 2020 [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total | 3,693 |
Services [Member] | 2021 [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total | 1,975 |
Services [Member] | 2022 and thereafter [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total | $ 802 |
Transactions with Related Par_2
Transactions with Related Parties (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Fritz Companies Israel T. Ltd [Member] | ||
Transactions with Related Parties (Details) [Line Items] | ||
Logistic service fees | $ 1,396 | $ 1,510 |
Acord Insurance Agency Ltd [Member] | ||
Transactions with Related Parties (Details) [Line Items] | ||
Total premium | 551 | 355 |
Priority Software Ltd.[Member] | ||
Transactions with Related Parties (Details) [Line Items] | ||
Maintenance fees | $ 35 | $ 35 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event [Member] $ in Thousands | Aug. 07, 2020USD ($) |
Subsequent Event (Details) [Line Items] | |
Percentage of custom gateway's shares | 100.00% |
Total consideration | $ 17,000 |