NovoCure Limited (NVCR) 10-Q 27 Jul 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 20, 2017
Document Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Trading Symbol	NVCR
Entity Registrant Name	Novocure Ltd
Entity Central Index Key	1,645,113
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		89,002,575

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
CURRENT ASSETS:
Cash and cash equivalents	$ 80,190	$ 99,780
Short-term investments	104,186	119,854
Restricted cash	1,537	267
Trade receivables	13,888	6,339
Receivables and prepaid expenses	11,544	10,084
Inventories	25,147	25,549
Total current assets	236,492	261,873
LONG-TERM ASSETS:
Property and equipment, net	9,621	9,812
Field equipment, net	9,061	8,808
Severance pay fund	102	88
Other long-term assets	1,766	1,500
Total long-term assets	20,550	20,208
TOTAL ASSETS	257,042	282,081
CURRENT LIABILITIES:
Trade payables	13,161	18,356
Other payables and accrued expenses	22,010	18,526
Total current liabilities	35,171	36,882
LONG-TERM LIABILITIES:
Long-term loan, net of discount and issuance costs	96,765	96,231
Employee benefit liabilities	2,679	2,590
Other long-term liabilities	4,882	4,033
Total long-term liabilities	104,326	102,854
TOTAL LIABILITIES	139,497	139,736
COMMITMENTS AND CONTINGENCIES	0	0
SHAREHOLDERS' EQUITY:
Ordinary shares no par value, unlimited shares authorized; issued and outstanding: 88,630,205 shares and 87,066,446 shares at June 30, 2017 (unaudited) and December 31, 2016, respectively	0	0
Additional paid-in capital	679,099	664,154
Accumulated other comprehensive loss	(1,739)	(1,883)
Accumulated deficit	(559,815)	(519,926)
Total shareholders' equity	117,545	142,345
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 257,042	$ 282,081

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Common stock, par value
Common stock, shares authorized	Unlimited	Unlimited
Common stock, shares issued	88,630,205	87,066,446
Common stock, shares outstanding	88,630,205	87,066,446

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Income Statement [Abstract]
Net revenues	$ 38,376	$ 17,919	$ 73,256	$ 30,972	$ 82,888
Cost of revenues	13,152	9,797	24,816	17,779	39,870
Impairment of field equipment		6,412		6,412	6,412
Gross profit	25,224	1,710	48,440	6,781	36,606
Operating costs and expenses:
Research, development and clinical trials	9,371	11,318	18,782	22,763	41,467
Sales and marketing	16,360	14,598	31,116	27,906	59,449
General and administrative	15,023	13,031	27,445	25,287	51,007
Total operating costs and expenses	40,754	38,947	77,343	75,956	151,923
Operating loss	(15,530)	(37,237)	(28,903)	(69,175)	(115,317)
Financial expenses, net	(2,183)	(555)	(4,629)	(1,104)	(6,147)
Loss before income tax expense	(17,713)	(37,792)	(33,532)	(70,279)	(121,464)
Income tax expense	3,461	2,820	5,687	5,770	10,381
Net loss	$ (21,174)	$ (40,612)	$ (39,219)	$ (76,049)	$ (131,845)
Basic and diluted net loss per ordinary share	$ (0.24)	$ (0.48)	$ (0.45)	$ (0.90)	$ (1.54)
Weighted average number of ordinary shares used in computing basic and diluted net loss per share	88,218,868	85,274,683	87,835,926	84,843,028	85,558,448

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (21,174)	$ (40,612)	$ (39,219)	$ (76,049)	$ (131,845)
Other comprehensive income (loss), net of tax :
Change in foreign currency translation adjustments	1	56	10	56	10
Pension benefit plan	183	235	134	(235)	(388)
Total comprehensive loss	$ (20,990)	$ (40,321)	$ (39,075)	$ (76,228)	$ (132,223)

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Ordinary Shares	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit
Balance at Dec. 31, 2015	$ 250,820		$ 640,406	$ (1,505)	$ (388,081)
Balance (in shares) at Dec. 31, 2015		83,778,581
Share-based compensation to employees	21,441		21,441
Exercise of options and warrants	993		993
Exercise of options and warrants (in shares)		3,195,477
Issuance of shares in connection with employee stock purchase plan	616		616
Issuance of shares in connection with employee stock purchase plan(in shares)		92,388
Tax benefit from share-based award activity	698		698
Other comprehensive loss, net of tax benefit of $38 and $1 for the years December 2016 and June 2017	(378)			(378)
Net loss	(131,845)				(131,845)
Balance at Dec. 31, 2016	142,345		664,154	(1,883)	(519,926)
Balance (in shares) at Dec. 31, 2016		87,066,446
Share-based compensation to employees	12,131		12,131
Exercise of options and warrants	1,363		1,363
Exercise of options and warrants (in shares)		1,446,792
Cumulative effect adjustment resulting from ASU2016-09 adoption (see Note 1)			670		(670)
Issuance of shares in connection with employee stock purchase plan	781		781
Issuance of shares in connection with employee stock purchase plan(in shares)		116,967
Other comprehensive loss, net of tax benefit of $38 and $1 for the years December 2016 and June 2017	144			144
Net loss	(39,219)				(39,219)
Balance at Jun. 30, 2017	$ 117,545		$ 679,099	$ (1,739)	$ (559,815)
Balance (in shares) at Jun. 30, 2017		88,630,205

CONSOLIDATED STATEMENTS OF CHA7

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Statement Of Stockholders Equity [Abstract]
Other comprehensive loss, tax benefit	$ 29	$ 38

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Cash flows from operating activities:
Net loss	$ (21,174)	$ (40,612)	$ (39,219)	$ (76,049)	$ (131,845)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,811	1,407	3,471	2,510	5,652
Asset write-downs and impairment of field equipment	59	6,425	134	6,430	6,446
Increase in accrued interest expense		(637)
Share-based compensation to employees	7,570	5,637	12,131	11,093	22,139
Excess tax benefits from share-based award activity					(698)
Increase in trade receivables	(2,064)		(7,550)		(6,339)
Amortization of discount (premium)	103	(39)	209	(56)	155
Decrease (increase) in receivables and prepaid expenses	3,354	(1,672)	(1,461)	(2,208)	243
Decrease (Increase) in inventories	803	(4,769)	403	(7,621)	(11,955)
Increase in other long-term assets	(38)	(111)	(294)	(278)	(692)
Increase (decrease) in trade payables	(1,638)	2,321	(5,195)	4,144	1,601
Increase in other payables and accrued expenses	4,888	2,399	3,478	756	6,647
Increase in employee benefit liabilities, net	130	32	239	270	97
Increase in other long-term liabilities	321	225	871	638	957
Net cash used in operating activities	(5,875)	(29,394)	(32,783)	(60,371)	(107,592)
Cash flows from investing activities:
Purchase of property and equipment	(376)	(2,338)	(1,407)	(3,340)	(5,674)
Purchase of field equipment	(859)	(4,274)	(2,261)	(6,100)	(11,990)
increase in restricted cash	(1)	(13)	(1,269)	(12)	(180)
Proceeds from maturity of short-term investments	60,000		120,000	150,000	270,000
Purchase of short-term investments	(59,352)		(104,006)	(119,728)	(239,341)
Net cash provided by (used in) investing activities	(588)	(6,625)	11,057	20,820	12,815
Cash flows from financing activities:
Proceeds from issuance of shares, net	781		781		616
Proceeds from long-term loan, net	19	17	19	17	72,887
Excess tax benefits from share-based award activity					698
Repayment of other long-term loan	(19)	(19)	(37)	(35)	(70)
Exercise of options and warrants	1,286	904	1,363	961	993
Net cash provided by financing activities	2,067	902	2,126	943	75,124
Effect of exchange rate changes on cash and cash equivalents	(1)	56	10	56	10
Decrease in cash and cash equivalents	(4,397)	(35,061)	(19,590)	(38,552)	(19,643)
Cash and cash equivalents at the beginning of the period	84,587	115,932	99,780	119,423	119,423
Cash and cash equivalents at the end of the period	80,190	80,871	80,190	80,871	99,780
Cash paid during the period for:
Income taxes	1,500	1,587	4,902	3,169	9,447
Interest	$ 2,533	$ 1,269	$ 5,041	$ 1,933	$ 6,595

Organization and Basis of Prese

Organization and Basis of Presentation	6 Months Ended
	Jun. 30, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization and Basis of Presentation	NOTE 1: ORGANIZATION AND BASIS OF PRESENTATION Organization . NovoCure Limited (including its consolidated subsidiaries, the “Company”) was incorporated in the Bailiwick of Jersey and is principally engaged in the development, manufacture and commercialization of Tumor Treating Fields (“TTFields”) for the treatment of solid tumors. The Company has regulatory approvals and clearances in certain countries for Optune, its first TTFields delivery system, to treat adult patients with glioblastoma (“GBM”). Financial statement preparation . The accompanying consolidated financial statements include the accounts of the Company and its consolidated subsidiaries, and intercompany accounts and transactions have been eliminated. In the opinion of the Company’s management, the consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in these consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. These consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 (the “2016 10-K”) filed with the Securities and Exchange Commission (the “SEC”) on February 23, 2017. The significant accounting policies applied in the audited annual consolidated financial statements of the Company as disclosed in the 2016 10-K are applied consistently in these unaudited interim consolidated financial statements, except as noted below: Recently Adopted Accounting Pronouncements . In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in ASU 2016-09 affect all entities that issue share-based payment awards to their employees and involve multiple aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company adopted ASU 2016-09 during the quarter ended March 31, 2017, at which time it changed its accounting policy to account for forfeitures as they occur. The change was applied on a modified retrospective basis with a cumulative effect adjustment to accumulated deficit of $670 as of January 1, 2017. In addition, excess tax benefits for share-based payments are now presented as an operating activity in the statements of cash flows rather than financing activity . The changes have been applied prospectively in accordance with the ASU and prior periods have not been adjusted. Recent Accounting Pronouncements. In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), which amends the existing accounting standards for revenue recognition. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which delays the effective date of ASU 2014-09 by one year. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. The new revenue recognition standard will be effective in the first quarter of 2018, with the option to adopt it in the first quarter of 2017. The Company currently anticipates adopting the new standard effective January 1, 2018. The new standard also permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective method). The Company currently anticipates adopting the standard using the modified retrospective method. While the Company is still in the process of completing its assessment on the impact this guidance will have on its consolidated financial statements and related disclosures, the Company expects that the most significant impact relates to the accounting for revenue transactions whereby there is variable consideration. In April 2016, FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. ASU 2016-10 covers two specific topics: performance obligations and licensing. This amendment includes guidance on immaterial promised goods or services, shipping or handling activities, separately identifiable performance obligations, functional or symbolic intellectual property licenses, sales-based and usage-based royalties, license restrictions (time, use, geographical) and licensing renewals. In addition, in May 2016, FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which is intended to not change the core principle of the guidance in Topic 606, but rather affect only the narrow aspects of Topic 606 by reducing the potential for diversity in practice at initial application and by reducing the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. The Company is currently evaluating the impact of the adoption of both revenue standards on its consolidated financial statements. In February 2016, FASB issued ASU 2016-02-Leases (ASC 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than twelve months regardless of their classification. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. ASC 842 supersedes the previous leases standard, ASC 840. The standard is effective on January 1, 2019, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. In May 2017, FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718) Scope of Modification Accounting. The Company is evaluating the impact of ASU 2017-09

Short-Term Investments

Short-Term Investments	6 Months Ended
	Jun. 30, 2017
Marketable Securities Current [Abstract]
Short-Term Investments	NOTE 2: SHORT-TERM INVESTMENTS The Company invests in marketable U.S. Treasury Bills (“T-bills”) that are classified as held-to-maturity securities. The amortized cost and recorded basis of the T-bills are presented as short-term investments in the amount of $104,186 and $119,854 as of June 30, 2017 and December 31, 2016, respectively, and their estimated fair value as of June 30, 2017 and December 31, 2016 was $104,106 and $119,825, respectively.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Inventories	NOTE 3: INVENTORIES Inventories are stated at the lower of cost or market. The weighted average methodology is applied to determine cost. As of June 30, 2017 and December 31, 2016, the Company’s inventories were composed of: June 30, December 31, 2017 2016 Unaudited Audited Raw materials $ 5,423 $ 5,243 Work in progress 10,971 8,292 Finished products 8,753 12,014 Total $ 25,147 $ 25,549

Commitments and Contingent Liab

Commitments and Contingent Liabilities	6 Months Ended
	Jun. 30, 2017
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingent Liabilities	NOTE 4: COMMITMENTS AND CONTINGENT LIABILITIES The facilities of the Company are leased under various operating lease agreements for periods ending no later than 2024. The Company also leases motor vehicles under various operating leases, which expire on various dates, the latest of which is in 2020. As of June 30, 2017 and December 31, 2016, the Company pledged bank deposits of $1,051 and $807, respectively, to cover bank guarantees in respect of its leases of operating facilities and obtained guarantees by the bank for the fulfillment of the Company’s lease and other contractual commitments of $1,214 and $955, respectively. In January 2017, two putative class action lawsuits were filed against the Company, its directors and certain of its officers, as well as the underwriters in the Company’s October 2015 initial public offering. The complaints, which purport to be brought on behalf of a class of persons and/or entities who purchased or otherwise acquired ordinary shares of the Company pursuant and/or traceable to the registration statement and prospectus issued in connection with the Company’s initial public offering, allege material misstatements and/or omissions in the Company’s initial public offering materials in alleged violation of the federal securities laws and seek compensatory damages, among other remedies. The two actions have been consolidated and the plaintiffs filed a consolidated amended complaint on May 31, 2017. The court granted the defendants’ motion to bifurcate the motion to dismiss into two stages: a threshold motion to dismiss for lack of personal jurisdiction, lack of subject matter jurisdiction, and insufficient process and service of process, due on July 31, 2017; and, if the matter is not dismissed following that threshold motion, a subsequent merits motion to dismiss regarding whether the allegations in the amended complaint state a claim under the securities laws. The Company believes that the amended complaint is without merit and plans to defend the consolidated lawsuits vigorously. The Company has not accrued any amounts in respect of these lawsuits, as a liability is not probable and the amount of any potential liability cannot be reasonably estimated.

Share Capital

Share Capital	6 Months Ended
	Jun. 30, 2017
Share Based Compensation Allocation And Classification In Financial Statements [Abstract]
Share Capital	NOTE 5: SHARE CAPITAL For the six months ended June 30, 2017, warrants to purchase 1,417,097 ordinary shares with an exercise price of $3.59 per share were cashlessly exercised, resulting in the issuance of 801,845 ordinary shares. Also, warrants to purchase 6,498 ordinary shares with an exercise price of $3.59 per share were exercised for cash. For the six months ended June 30, 2017, options to purchase 639,902 ordinary shares were exercised for cash, resulting in the issuance of 639,902 ordinary shares.

Equity Incentive Plans

Equity Incentive Plans	6 Months Ended
	Jun. 30, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Equity Incentive Plans	NOTE 6: EQUITY INCENTIVE PLANS In September 2015, the Company adopted the 2015 Omnibus Incentive Plan (the “2015 Plan”). Under the 2015 Plan, the Company can issue various types of equity compensation awards such as share options, restricted shares, performance shares, restricted stock units (“RSUs”), performance units, long-term cash award and other share-based awards. Options granted under the 2015 Plan generally have a four-year vesting period and expire ten years after the date of grant. Options granted under the 2015 Plan that are cancelled or forfeited before expiration become available for future grants. RSUs granted under the 2015 Plan vest in equal installments over a three-year period. As of June 30, 2017, 9,824,964 A summary of the status of the Company’s option plans as of June 30, 2017 and changes during the period then ended is presented below: Six months ended June 30, 2017 Unaudited Number of options Weighted average exercise price Outstanding at beginning of year 11,377,354 $ 9.76 Granted 4,757,238 9.25 Exercised (639,902 ) 2.13 Forfeited and cancelled (205,370 ) 12.65 Outstanding as of June 30, 2017 15,289,320 9.88 Exercisable options 6,722,358 7.49 Vested and expected to vest 15,289,320 $ 9.88 A summary of the status of the Company’s RSUs as of June 30, 2017 and changes during the period then ended is presented below: Six months ended June 30, 2017 Unaudited Number of RSUs Weighted average grant date fair value price Unvested at beginning of year - $ - Granted 1,661,619 9.64 Vested - - Forfeited and cancelled - - Unvested as of June 30, 2017 1,661,619 $ 9.64 In September 2015, the Company adopted an employee share purchase plan (“ESPP”) to encourage and enable eligible employees to acquire ownership of the Company’s ordinary shares purchased through accumulated payroll deductions on an after-tax basis. In the United States, the ESPP is intended to be an “employee stock purchase plan” within the meaning of Section 423 of the Internal Revenue Code and the provisions of the ESPP will be construed in a manner consistent with the requirements of such section. The Company began its offerings under the ESPP on August 1, 2016. As of June 30, 2017, 2,328,171 ordinary shares were available to be purchased by eligible employees under the ESPP and 209,355 shares had been issued under the ESPP. The fair value of equity-based awards was estimated using the Black-Scholes option-pricing model for all grants with the following underlying assumptions: Six months ended June 30, Year ended December 31, 2017 2016 2016 Unaudited Audited Stock Option Plans Expected term (years) 5.5-6.25 6.25 6.25 Expected volatility 56.74%-59.15% 59.80%-61.65% 58.40%-61.70% Risk-free interest rate 1.99%-2.23% 1.23%-1.88% 1.23%-1.88% Dividend yield 0.00% 0.00% 0.00% ESPP Expected term (years) 0.50 - 0.42 Expected volatility 82.00% - 70.45% Risk-free interest rate 0.62% - 0.40% Dividend yield 0.00% - 0.00% The total non-cash share-based compensation expense related to all of the Company’s equity-based awards recognized for the three and six months ended June 30, 2017 and 2016 and the year ended December 31, 2016 was: Three months ended June 30, Six months ended June 30, Year ended December 31, 2017 2016 2017 2016 2016 Unaudited Unaudited Audited Cost of revenues $ 131 $ 170 $ 274 $ 311 $ 623 Research, development and clinical trials 811 839 1,673 1,602 3,155 Sales and marketing 1,735 1,349 2,390 2,639 5,111 General and administrative 4,893 3,279 7,794 6,541 12,552 Total share-based compensation expense $ 7,570 $ 5,637 $ 12,131 $ 11,093 $ 21,441

Supplemental Information

Supplemental Information	6 Months Ended
	Jun. 30, 2017
Geographic Areas Long Lived Assets [Abstract]
Supplemental Information	NOTE 7: SUPPLEMENTAL INFORMATION The Company operates in a single reportable segment. The following table presents long-lived assets by location: June 30, December 31, 2017 2016 Unaudited Audited United States $ 12,096 $ 11,981 Switzerland 4,358 4,346 Israel 1,777 1,915 Others 451 378 Total $ 18,682 $ 18,620 The Company’s revenues by geographic region, based on the customer’s location, are summarized as follows: Three months ended June 30, Six months ended June 30, Year ended December 31, 2017 2016 2017 2016 2016 Unaudited Unaudited Audited United States $ 31,367 $ 16,122 $ 60,526 $ 28,135 $ 72,771 EMEA (*) 6,891 1,797 12,559 2,775 10,028 Japan 118 - 171 62 89 Total $ 38,376 $ 17,919 $ 73,256 $ 30,972 $ 82,888 (*) including Germany $ 6,817 $ 1,766 12,216 2,659 $ 9,799

Organization and Basis of Pre16

Organization and Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements . In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in ASU 2016-09 affect all entities that issue share-based payment awards to their employees and involve multiple aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company adopted ASU 2016-09 during the quarter ended March 31, 2017, at which time it changed its accounting policy to account for forfeitures as they occur. The change was applied on a modified retrospective basis with a cumulative effect adjustment to accumulated deficit of $670 as of January 1, 2017. In addition, excess tax benefits for share-based payments are now presented as an operating activity in the statements of cash flows rather than financing activity . The changes have been applied prospectively in accordance with the ASU and prior periods have not been adjusted. Recent Accounting Pronouncements. In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), which amends the existing accounting standards for revenue recognition. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which delays the effective date of ASU 2014-09 by one year. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. The new revenue recognition standard will be effective in the first quarter of 2018, with the option to adopt it in the first quarter of 2017. The Company currently anticipates adopting the new standard effective January 1, 2018. The new standard also permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective method). The Company currently anticipates adopting the standard using the modified retrospective method. While the Company is still in the process of completing its assessment on the impact this guidance will have on its consolidated financial statements and related disclosures, the Company expects that the most significant impact relates to the accounting for revenue transactions whereby there is variable consideration. In April 2016, FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. ASU 2016-10 covers two specific topics: performance obligations and licensing. This amendment includes guidance on immaterial promised goods or services, shipping or handling activities, separately identifiable performance obligations, functional or symbolic intellectual property licenses, sales-based and usage-based royalties, license restrictions (time, use, geographical) and licensing renewals. In addition, in May 2016, FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which is intended to not change the core principle of the guidance in Topic 606, but rather affect only the narrow aspects of Topic 606 by reducing the potential for diversity in practice at initial application and by reducing the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. The Company is currently evaluating the impact of the adoption of both revenue standards on its consolidated financial statements. In February 2016, FASB issued ASU 2016-02-Leases (ASC 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than twelve months regardless of their classification. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. ASC 842 supersedes the previous leases standard, ASC 840. The standard is effective on January 1, 2019, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. In May 2017, FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718) Scope of Modification Accounting. The Company is evaluating the impact of ASU 2017-09

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories are stated at the lower of cost or market. The weighted average methodology is applied to determine cost. As of June 30, 2017 and December 31, 2016, the Company’s inventories were composed of: June 30, December 31, 2017 2016 Unaudited Audited Raw materials $ 5,423 $ 5,243 Work in progress 10,971 8,292 Finished products 8,753 12,014 Total $ 25,147 $ 25,549

Equity Incentive Plans (Tables)

Equity Incentive Plans (Tables)	6 Months Ended
	Jun. 30, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Schedule of Stock Option Plans	A summary of the status of the Company’s option plans as of June 30, 2017 and changes during the period then ended is presented below: Six months ended June 30, 2017 Unaudited Number of options Weighted average exercise price Outstanding at beginning of year 11,377,354 $ 9.76 Granted 4,757,238 9.25 Exercised (639,902 ) 2.13 Forfeited and cancelled (205,370 ) 12.65 Outstanding as of June 30, 2017 15,289,320 9.88 Exercisable options 6,722,358 7.49 Vested and expected to vest 15,289,320 $ 9.88
Schedule of RSU's	A summary of the status of the Company’s RSUs as of June 30, 2017 and changes during the period then ended is presented below: Six months ended June 30, 2017 Unaudited Number of RSUs Weighted average grant date fair value price Unvested at beginning of year - $ - Granted 1,661,619 9.64 Vested - - Forfeited and cancelled - - Unvested as of June 30, 2017 1,661,619 $ 9.64
Schedule of Fair Value of Equity Based Awards Using Black-Scholes Option Pricing Model	The fair value of equity-based awards was estimated using the Black-Scholes option-pricing model for all grants with the following underlying assumptions: Six months ended June 30, Year ended December 31, 2017 2016 2016 Unaudited Audited Stock Option Plans Expected term (years) 5.5-6.25 6.25 6.25 Expected volatility 56.74%-59.15% 59.80%-61.65% 58.40%-61.70% Risk-free interest rate 1.99%-2.23% 1.23%-1.88% 1.23%-1.88% Dividend yield 0.00% 0.00% 0.00% ESPP Expected term (years) 0.50 - 0.42 Expected volatility 82.00% - 70.45% Risk-free interest rate 0.62% - 0.40% Dividend yield 0.00% - 0.00%
Schedule of Non-cash Share-based Compensation Expense Related to Company's Equity-Based Awards	The total non-cash share-based compensation expense related to all of the Company’s equity-based awards recognized for the three and six months ended June 30, 2017 and 2016 and the year ended December 31, 2016 was: Three months ended June 30, Six months ended June 30, Year ended December 31, 2017 2016 2017 2016 2016 Unaudited Unaudited Audited Cost of revenues $ 131 $ 170 $ 274 $ 311 $ 623 Research, development and clinical trials 811 839 1,673 1,602 3,155 Sales and marketing 1,735 1,349 2,390 2,639 5,111 General and administrative 4,893 3,279 7,794 6,541 12,552 Total share-based compensation expense $ 7,570 $ 5,637 $ 12,131 $ 11,093 $ 21,441

Supplemental Information (Table

Supplemental Information (Tables)	6 Months Ended
	Jun. 30, 2017
Geographic Areas Long Lived Assets [Abstract]
Schedule of Long-Lived Assets by Location	The following table presents long-lived assets by location: June 30, December 31, 2017 2016 Unaudited Audited United States $ 12,096 $ 11,981 Switzerland 4,358 4,346 Israel 1,777 1,915 Others 451 378 Total $ 18,682 $ 18,620
Schedule of Revenues by Geographic Region	The Company’s revenues by geographic region, based on the customer’s location, are summarized as follows: Three months ended June 30, Six months ended June 30, Year ended December 31, 2017 2016 2017 2016 2016 Unaudited Unaudited Audited United States $ 31,367 $ 16,122 $ 60,526 $ 28,135 $ 72,771 EMEA (*) 6,891 1,797 12,559 2,775 10,028 Japan 118 - 171 62 89 Total $ 38,376 $ 17,919 $ 73,256 $ 30,972 $ 82,888 (*) including Germany $ 6,817 $ 1,766 12,216 2,659 $ 9,799

Organization and Basis of Pre20

Organization and Basis of Presentation - Additional Information (Detail) $ in Thousands	Dec. 31, 2016USD ($)
Accounting Standards Update 2016-09 [Member]
Organization and Basis of Presentation [Line Items]
Cumulative deficit effect adjustment resulting from ASU 2016-09 adoption	$ (670)

Short-Term Investments - Additi

Short-Term Investments - Additional Information (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Investments Debt And Equity Securities [Abstract]
Short-term investments	$ 104,186	$ 119,854
Estimated fair value of short-term investments	$ 104,106	$ 119,825

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 5,423	$ 5,243
Work in progress	10,971	8,292
Finished products	8,753	12,014
Total	$ 25,147	$ 25,549

Commitments and Contingent Li23

Commitments and Contingent Liabilities - Additional Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Loss Contingencies [Line Items]
Operating lease expiration description	The facilities of the Company are leased under various operating lease agreements for periods ending no later than 2024.
Pledged bank deposits	$ 1,051	$ 807
Operating lease and other contractual commitments	$ 1,214	$ 955
Motor Vehicles
Loss Contingencies [Line Items]
Operating lease expiration description	The Company also leases motor vehicles under various operating leases, which expire on various dates, the latest of which is in 2020.
Maximum
Loss Contingencies [Line Items]
Operating lease agreements, expiration year	2,024
Maximum | Motor Vehicles
Loss Contingencies [Line Items]
Operating lease agreements, expiration year	2,020

Share Capital - Additional Info

Share Capital - Additional Information (Details)	6 Months Ended
	Jun. 30, 2017$ / sharesshares
Share Capital [Line Items]
The Number of ordinary shares that originally could be purchased by exercise of warrants	1,417,097
Warrants exercise price | $ / shares	$ 3.59
Options exercised for cash	639,902
Ordinary shares issued upon option exercise	639,902
Warrant
Share Capital [Line Items]
The Number of ordinary shares that originally could be purchased by exercise of warrants in cash	6,498
Warrant | Warrants Not Settleable in Cash
Share Capital [Line Items]
Number of shares issued upon the exercise of warrants	801,845

Equity Incentive Plans - Additi

Equity Incentive Plans - Additional Information (Details)	6 Months Ended
	Jun. 30, 2017shares
ESPP
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Ordinary shares available for grants	2,328,171
Shares issued under plan	209,355
2015 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Ordinary shares available for grants	9,824,964
2015 Plan | Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock awards granted, vesting period	4 years
Stock awards granted, expiration period	10 years
2015 Plan | RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock awards granted, vesting period	3 years

Equity Incentive Plans - Schedu

Equity Incentive Plans - Schedule of Stock Option Plan (Details)	6 Months Ended
	Jun. 30, 2017$ / sharesshares
Number of options
Number of options, Outstanding at beginning of year | shares	11,377,354
Number of options, Granted | shares	4,757,238
Number of options, Exercised | shares	(639,902)
Number of options, Forfeited and cancelled | shares	(205,370)
Number of options, Outstanding at ending of year | shares	15,289,320
Number of options, Exercisable options | shares	6,722,358
Number of options, Vested and expected to vest | shares	15,289,320
Weighted average exercise price
Weighted average exercise price, Outstanding at beginning of year | $ / shares	$ 9.76
Weighted average exercise price, Granted | $ / shares	9.25
Weighted average exercise price, Exercised | $ / shares	2.13
Weighted average exercise price, Forfeited and cancelled | $ / shares	12.65
Weighted average exercise price, Outstanding at end of year | $ / shares	9.88
Weighted average exercise price, Exercisable options | $ / shares	7.49
Weighted average exercise price, Vested and expected to vest | $ / shares	$ 9.88

Equity Incentive Plans - Sche27

Equity Incentive Plans - Schedule of RSU's (Details) - RSUs	6 Months Ended
	Jun. 30, 2017$ / sharesshares
Number of RSUs
Number of RSUs, granted | shares	1,661,619
Number of RSUs, unvested at ending of year | shares	1,661,619
Weighted average grant date fair value price
Weighted average grant date date fair value price, granted | $ / shares	$ 9.64
Weighted average grant date date fair value price, unvested at ending of year | $ / shares	$ 9.64

Equity Incentive Plans - Sche28

Equity Incentive Plans - Schedule of Fair Value of Equity Based Awards Using Black-Scholes Option Pricing Model (Details)	6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (years)		6 years 3 months	6 years 3 months
Expected volatility, minimum	56.74%	59.80%	58.40%
Expected volatility, maximum	59.15%	61.65%	61.70%
Risk-free interest rate, minimum	1.99%	1.23%	1.23%
Risk-free interest rate, maximum	2.23%	1.88%	1.88%
Dividend yield	0.00%	0.00%	0.00%
Options | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (years)	5 years 6 months
Options | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (years)	6 years 3 months
ESPP
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (years)	6 months		5 months 1 day
Expected volatility	82.00%		70.45%
Risk-free interest rate	0.62%		0.40%
Dividend yield	0.00%		0.00%

Equity Incentive Plans - Sche29

Equity Incentive Plans - Schedule of Non-cash Share-Based Compensation Expenses Related to Company's Equity-Based Awards (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total share-based compensation expense	$ 7,570	$ 5,637	$ 12,131	$ 11,093	$ 21,441
Cost of Revenues
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total share-based compensation expense	131	170	274	311	623
Research, Development and Clinical Trials
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total share-based compensation expense	811	839	1,673	1,602	3,155
Sales and Marketing
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total share-based compensation expense	1,735	1,349	2,390	2,639	5,111
General and Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total share-based compensation expense	$ 4,893	$ 3,279	$ 7,794	$ 6,541	$ 12,552

Supplemental Information - Sche

Supplemental Information - Schedule of Long-Lived Assets by Location (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets	$ 18,682	$ 18,620
United States
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets	12,096	11,981
Switzerland
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets	4,358	4,346
Israel
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets	1,777	1,915
Others
Revenues From External Customers And Long Lived Assets [Line Items]
Long-lived assets	$ 451	$ 378

Supplemental Information - Sc31

Supplemental Information - Schedule of Revenues by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenues	$ 38,376	$ 17,919	$ 73,256	$ 30,972	$ 82,888
United States
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenues	31,367	16,122	60,526	28,135	72,771
EMEA
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenues	6,891	$ 1,797	12,559	2,775	10,028
Japan
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenues	$ 118		$ 171	$ 62	$ 89

Supplemental Information - Sc32

Supplemental Information - Schedule of Revenues by Geographic Region (Parenthetical) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenues	$ 38,376	$ 17,919	$ 73,256	$ 30,972	$ 82,888
Germany
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenues	$ 6,817	$ 1,766	$ 12,216	$ 2,659	$ 9,799