CAMTEK LTD.
(Registrant) By: /s/ Moshe Eisenberg —————————————— Moshe Eisenberg, Chief Financial Officer |
Camtek Ltd.
and its Subsidiaries
Interim Condensed Consolidated
Financial Statements
As of June 30, 2018
(Unaudited)
|
F-3
|
|
F-4 to F-5
|
|
F-6
|
|
F-7 to F-8
|
|
F-9 to F-15
|
June 30,
|
December 31,
|
|||||||||||
2018
|
2017
|
|||||||||||
Note
|
U.S. Dollars (in thousands)
|
|||||||||||
Assets
|
||||||||||||
Current assets
|
||||||||||||
Cash and cash equivalents
|
5A |
|
41,204
|
43,744
|
||||||||
Trade accounts receivable, net
|
32,278
|
23,153
|
||||||||||
Inventories
|
5B |
|
23,693
|
21,336
|
||||||||
Other current assets
|
5C
|
|
2,769
|
3,215
|
||||||||
Total current assets
|
99,944
|
91,448
|
||||||||||
Property, plant and equipment, net
|
5D |
|
15,731
|
15,503
|
||||||||
Long term inventory
|
5B
|
|
1,466
|
1,383
|
||||||||
Deferred tax assets
|
3,308
|
4,067
|
||||||||||
Other assets, net
|
153
|
153
|
||||||||||
Intangible assets, net
|
5E
|
|
480
|
482
|
||||||||
5,407
|
6,085
|
|||||||||||
Total assets
|
121,082
|
113,036
|
||||||||||
Liabilities and shareholders’ equity
|
||||||||||||
Current liabilities
|
||||||||||||
Trade accounts payable
|
15,174
|
10,502
|
||||||||||
Other current liabilities
|
5F
|
|
16,552
|
17,395
|
||||||||
Total current liabilities
|
31,726
|
27,897
|
||||||||||
Long term liabilities
|
||||||||||||
Liability for employee severance benefits
|
870
|
838
|
||||||||||
870
|
838
|
|||||||||||
Total liabilities
|
32,596
|
28,735
|
||||||||||
Shareholders’ equity
|
||||||||||||
Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at June 30, 2018 and at December 31, 2017;
|
||||||||||||
38,277,165 issued shares at June 30, 2018 and 37,924,507 at December 31, 2017;
|
||||||||||||
36,184,789 shares outstanding at June 30, 2018 and 35,832,131 at December 31, 2017;
|
3 |
149
|
149
|
|||||||||
Additional paid-in capital
|
79,820
|
78,437
|
||||||||||
Retained earnings
|
10,415
|
7,613
|
||||||||||
90,384
|
86,199
|
|||||||||||
Treasury stock, at cost (2,092,376 as of June 30, 2018 and December 31, 2017)
|
(1,898
|
)
|
(1,898
|
)
|
||||||||
Total shareholders' equity
|
88,486
|
84,301
|
||||||||||
Total liabilities and shareholders' equity
|
121,082
|
113,036
|
Six months ended
June 30,
|
Three months
ended June 30,
|
Year ended
December 31,
|
||||||||||||||||||||||
2018
|
2017
|
2018
|
2017
|
2017
|
||||||||||||||||||||
Note
|
U.S. dollars
|
U.S. dollars
|
U.S. dollars
|
|||||||||||||||||||||
Revenues
|
57,736
|
43,828
|
30,462
|
22,682
|
93,485
|
|||||||||||||||||||
Cost of revenues
|
29,840
|
22,384
|
15,563
|
11,527
|
47,966
|
|||||||||||||||||||
Gross profit
|
27,896
|
21,444
|
14,899
|
11,155
|
45,519
|
|||||||||||||||||||
Research and development costs
|
6,955
|
6,852
|
3,406
|
3,413
|
13,534
|
|||||||||||||||||||
Selling, general and
|
||||||||||||||||||||||||
administrative expenses
|
6A |
|
12,664
|
11,159
|
6,775
|
5,754
|
22,022
|
|||||||||||||||||
Expenses from settlement
|
9A
|
|
-
|
13,000
|
-
|
13,000
|
13,000
|
|||||||||||||||||
19,619
|
31,011
|
10,181
|
22,167
|
48,556
|
||||||||||||||||||||
Operating income (loss)
|
8,277
|
(9,567
|
)
|
4,718
|
(11,012
|
)
|
(3,037
|
)
|
||||||||||||||||
Financial income (expenses), net
|
6B
|
|
436
|
(209
|
)
|
146
|
(56
|
)
|
(150
|
)
|
||||||||||||||
Income (loss) from continuing
|
||||||||||||||||||||||||
operations before taxes
|
8,713
|
(9,776
|
)
|
4,864
|
(11,068
|
)
|
(3,187
|
)
|
||||||||||||||||
Income tax benefit (expense)
|
(848
|
)
|
5,364
|
(533
|
)
|
5,404
|
4,875
|
|||||||||||||||||
Net income (loss) from continuing operations
|
7,865
|
(4,412
|
)
|
4,331
|
(5,664
|
)
|
1,688
|
|||||||||||||||||
Discontinued operations *
|
||||||||||||||||||||||||
Income from discontinued operations
|
||||||||||||||||||||||||
Income before tax benefit (expense)
|
-
|
4,339
|
-
|
1,981
|
18,302
|
|||||||||||||||||||
Income tax benefit (expense)
|
-
|
(505
|
)
|
-
|
(194
|
)
|
(6,028
|
)
|
||||||||||||||||
Income from discontinued
|
||||||||||||||||||||||||
operation
|
-
|
3,834
|
-
|
1,787
|
12,274
|
|||||||||||||||||||
Net income (loss)
|
7,865
|
(578
|
)
|
4,331
|
(3,877
|
)
|
13,962
|
Six months ended
June 30,
|
Three months
ended June 30,
|
Year ended
December 31,
|
||||||||||||||||||||
2018
|
2017
|
2018
|
2017
|
2017
|
||||||||||||||||||
Note
|
U.S. dollars | U.S. dollars | U.S. dollars | |||||||||||||||||||
Basic earnings (losses) from continuing operation
|
0.22
|
(0.12
|
)
|
0.12
|
(0.16
|
)
|
0.05
|
|||||||||||||||
Basic earnings from discontinued operation
|
-
|
0.11
|
-
|
0.05
|
0.35
|
|||||||||||||||||
Basic net earnings (losses)
|
0.22
|
(0.02
|
)
|
0.12
|
(0.11
|
)
|
0.40
|
|||||||||||||||
Diluted earnings (losses) from continuing operation
|
0.22
|
(0.12
|
)
|
0.12
|
(0.16
|
)
|
0.05
|
|||||||||||||||
Diluted earnings from discontinued operations
|
-
|
0.11
|
-
|
0.05
|
0.34
|
|||||||||||||||||
Diluted net earnings (losses)
|
0.22
|
(0.02
|
)
|
0.12
|
(0.11
|
)
|
0.39
|
|||||||||||||||
Weighted average number of
|
||||||||||||||||||||||
ordinary shares outstanding
|
||||||||||||||||||||||
(in thousands):
|
||||||||||||||||||||||
Basic
|
36,050
|
35,359
|
36,090
|
35,369
|
35,441
|
|||||||||||||||||
Diluted
|
36,512
|
35,359
|
36,632
|
35,369
|
35,964
|
Retained
|
||||||||||||||||||||||||||||
Ordinary Shares
|
Number of
|
Additional
|
earnings
|
Total
|
||||||||||||||||||||||||
NIS 0.01 par value
|
Treasury
|
paid-in
|
(accumulated
|
Treasury
|
shareholders'
|
|||||||||||||||||||||||
Number of
|
U.S. Dollars
|
Shares
|
capital
|
losses)
|
stock
|
equity
|
||||||||||||||||||||||
Shares
|
(in thousands)
|
U.S. Dollars (in thousands)
|
||||||||||||||||||||||||||
Balances at
|
||||||||||||||||||||||||||||
December 31,
|
||||||||||||||||||||||||||||
2016
|
37,440,552
|
148
|
(2,092,376
|
)
|
76,463
|
(1,348
|
)
|
(1,898
|
)
|
73,365
|
||||||||||||||||||
Share-based
|
||||||||||||||||||||||||||||
compensation
|
||||||||||||||||||||||||||||
expense
|
-
|
-
|
-
|
634
|
-
|
-
|
634
|
|||||||||||||||||||||
Exercise of share
|
||||||||||||||||||||||||||||
options and RSUs
|
483,955
|
1
|
-
|
1,340
|
-
|
-
|
1,341
|
|||||||||||||||||||||
Dividend
|
-
|
-
|
-
|
-
|
(5,001
|
)
|
-
|
(5,001
|
)
|
|||||||||||||||||||
Net income
|
-
|
-
|
-
|
-
|
13,962
|
-
|
13,962
|
|||||||||||||||||||||
Balances at
|
||||||||||||||||||||||||||||
December 31, 2017
|
37,924,507
|
149
|
(2,092,376
|
)
|
78,437
|
7,613
|
(1,898
|
)
|
84,301
|
|||||||||||||||||||
Share-based
|
||||||||||||||||||||||||||||
compensation
|
||||||||||||||||||||||||||||
expense
|
-
|
-
|
-
|
394
|
-
|
-
|
394
|
|||||||||||||||||||||
Exercise of share
|
||||||||||||||||||||||||||||
options
|
352,658
|
*
|
-
|
989
|
-
|
-
|
989
|
|||||||||||||||||||||
Dividend
|
-
|
-
|
-
|
-
|
(5,063
|
)
|
-
|
(5,063
|
)
|
|||||||||||||||||||
Net income
|
-
|
-
|
-
|
-
|
7,865
|
-
|
7,865
|
|||||||||||||||||||||
Balances at
|
||||||||||||||||||||||||||||
June 30, 2018
|
38,277,165
|
149
|
(2,092,376
|
)
|
79,820
|
10,415
|
(1,898
|
)
|
88,486
|
Six months ended
June 30,
|
Three months ended
June 30,
|
Year ended
December 31,
|
||||||||||||||||||
2018
|
2017
|
2018
|
2017
|
2017
|
||||||||||||||||
U.S. dollars
|
U.S. dollars
|
U.S. dollars
|
||||||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||||||
Net income (loss)
|
7,865
|
(578
|
)
|
4,331
|
(3,877
|
)
|
13,962
|
|||||||||||||
Adjustments to reconcile net income (loss) to net
|
||||||||||||||||||||
cash provided by (used in) operating activities:
|
||||||||||||||||||||
Depreciation and amortization
|
962
|
1,016
|
471
|
520
|
2,122
|
|||||||||||||||
Deferred tax expense (benefit)
|
759
|
(5,470
|
)
|
526
|
(5,470
|
)
|
6
|
|||||||||||||
Share based compensation expense
|
394
|
229
|
249
|
114
|
634
|
|||||||||||||||
Loss on disposal of fixed assets
|
324
|
-
|
24
|
-
|
-
|
|||||||||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||||||
Trade accounts receivable, net
|
(9,363
|
)
|
1,027
|
(8,944
|
)
|
(1,744
|
)
|
(484
|
)
|
|||||||||||
Inventories
|
(2,845
|
)
|
(4,655
|
)
|
(1,983
|
)
|
(2,145
|
)
|
(5,323
|
)
|
||||||||||
Due (to) from affiliates, net
|
346
|
(385
|
)
|
24
|
(318
|
)
|
(699
|
)
|
||||||||||||
Other current assets
|
100
|
533
|
17
|
1,126
|
(378
|
)
|
||||||||||||||
Trade accounts payable
|
4,672
|
2,211
|
2,660
|
(36
|
)
|
198
|
||||||||||||||
Other current liabilities
|
(843
|
)
|
1,586
|
1,655
|
1,486
|
2,673
|
||||||||||||||
Liability in respect of settlement
|
-
|
13,000
|
-
|
13,000
|
-
|
|||||||||||||||
Liability for employee severance benefits, net
|
32
|
261
|
(15
|
)
|
61
|
171
|
||||||||||||||
Net cash provided by (used in) operating
|
||||||||||||||||||||
activities of continued operations
|
2,403
|
8,775
|
(985
|
)
|
2,717
|
12,882
|
||||||||||||||
Cash provided by (used in) operating activities of discontinued operations
|
-
|
948
|
-
|
1,087
|
(11,247
|
)
|
||||||||||||||
Net cash provided by (used in) operating
|
||||||||||||||||||||
activities
|
2,403
|
9,723
|
(985
|
)
|
3,804
|
1,635
|
||||||||||||||
Cash flows from investing activities:
|
||||||||||||||||||||
Proceeds from disposal of fixed assets
|
76
|
-
|
76
|
-
|
-
|
|||||||||||||||
Purchase of fixed assets
|
(1,148
|
)
|
(2,152
|
)
|
(836
|
)
|
(974
|
)
|
(3,138
|
)
|
||||||||||
Purchase of intangible assets
|
(35
|
)
|
(20
|
)
|
(10
|
)
|
(13
|
)
|
(84
|
)
|
||||||||||
Net cash used in investing
|
||||||||||||||||||||
activities from continuing operations
|
(1,107
|
)
|
(2,172
|
)
|
(770
|
)
|
(987
|
)
|
(3,222
|
)
|
||||||||||
Cash used in (provided by) investing activities of discontinued operations
|
-
|
(19
|
)
|
-
|
(14
|
)
|
29,854
|
|||||||||||||
Net cash provided by (used in) investing
|
||||||||||||||||||||
activities
|
(1,107
|
)
|
(2,191
|
)
|
(770
|
)
|
(1,001
|
)
|
26,632
|
Cash flows from financing activities:
|
||||||||||||||||||||
Proceeds from exercise of share options and
|
||||||||||||||||||||
RSUs
|
989
|
182
|
615
|
182
|
1,341
|
|||||||||||||||
Dividend payment
|
(5,063
|
)
|
-
|
(5,063
|
)
|
-
|
(5,001
|
)
|
||||||||||||
Net cash provided by (used in) financing activities from continuing activities
|
(4,074
|
)
|
182
|
(4,448
|
)
|
182
|
(3,660
|
)
|
||||||||||||
Net cash provided by (used in) financing activities
|
(4,074
|
)
|
182
|
(4,448
|
)
|
182
|
(3,660
|
)
|
||||||||||||
Effect of change in exchange rate on cash and cash equivalents
|
238
|
(332
|
)
|
235
|
(140
|
)
|
(603
|
)
|
||||||||||||
Net increase (decrease) in cash and cash
|
||||||||||||||||||||
equivalents
|
(2,540
|
)
|
7,382
|
(5,968
|
)
|
2,845
|
24,004
|
|||||||||||||
Cash and cash equivalents at beginning of
|
||||||||||||||||||||
the period
|
43,744
|
19,740
|
47,172
|
24,277
|
19,740
|
|||||||||||||||
Cash and cash equivalents at end of the
|
||||||||||||||||||||
period
|
41,204
|
27,122
|
41,204
|
27,122
|
43,744
|
Six months ended June 30,
|
||||||||
2018
|
2017
|
|||||||
U.S. Dollars
(In thousands, except per share data)
|
||||||||
Supplementary cash flows information:
|
||||||||
Interest paid
|
-
|
-
|
||||||
Income taxes paid
|
112
|
696
|
Six months ended
June 30,
|
Year ended
December 31,
|
|||||||||||
2018
|
2017
|
2017
|
||||||||||
U.S. Dollars (in thousands)
|
||||||||||||
Asia Pacific
|
44,280
|
38,417
|
79,105
|
|||||||||
United States
|
6,682
|
3,009
|
9,484
|
|||||||||
Europe
|
6,774
|
2,402
|
4,896
|
|||||||||
57,736
|
43,828
|
93,485
|
June 30,
|
December 31,
|
|||||||
2018
|
2017
|
|||||||
U.S. Dollars (in thousands)
|
||||||||
US Dollars
|
35,327
|
36,636
|
||||||
New Israeli Shekels
|
2,500
|
1,122
|
||||||
Euro
|
1,831
|
3,603
|
||||||
Other currencies
|
1,546
|
2,383
|
||||||
41,204
|
43,744
|
June 30,
|
December 31,
|
|||||||
2018
|
2017
|
|||||||
U.S. Dollars (in thousands)
|
||||||||
Components
|
10,756
|
9,690
|
||||||
Work in process
|
4,976
|
6,584
|
||||||
Finished products (including systems at customer locations not yet sold)
|
9,427
|
6,445
|
||||||
25,159
|
22,719
|
June 30,
|
December, 31
|
|||||||
2018
|
2017
|
|||||||
U.S. Dollars (in thousands)
|
||||||||
Current assets
|
23,693
|
21,336
|
||||||
Long-term assets
|
1,466
|
1,383
|
||||||
25,159
|
22,719
|
June 30,
|
December 31,
|
|||||||
2018
|
2017
|
|||||||
U.S. Dollars (in thousands)
|
||||||||
Due from Government institutions
|
1,478
|
607
|
||||||
Prepaid expenses
|
513
|
561
|
||||||
Due from related parties
|
335
|
681
|
||||||
Other*
|
443
|
*1,366
|
||||||
2,769
|
3,215
|
June 30,
|
December, 31
|
|||||||
2018
|
2017
|
|||||||
U.S. Dollars (in thousands)
|
||||||||
Land
|
863
|
863
|
||||||
Building
|
13,469
|
13,307
|
||||||
Machinery and equipment
|
6,376
|
6,406
|
||||||
Office furniture and equipment
|
587
|
758
|
||||||
Computer equipment and software
|
4,061
|
4,310
|
||||||
Automobiles
|
87
|
87
|
||||||
Leasehold improvements
|
573
|
353
|
||||||
26,016
|
26,084
|
|||||||
Less accumulated depreciation
|
10,285
|
10,581
|
||||||
15,731
|
15,503
|
June 30,
|
December, 31
|
|||||||
2018
|
2017
|
|||||||
U.S. Dollars (in thousands)
|
||||||||
Patent registration costs
|
1,549
|
1,513
|
||||||
Accumulated amortization and impairment
|
1,069
|
1,031
|
||||||
Total intangible asset, net
|
480
|
482
|
June 30,
|
December, 31
|
|||||||
2018
|
2017
|
|||||||
U.S. Dollars (in thousands)
|
||||||||
Accrued employee compensation and related benefits
|
6,006
|
6,248
|
||||||
Commissions
|
6,483
|
4,204
|
||||||
Accrued warranty costs
|
1,531
|
1,300
|
||||||
Accrued expenses
|
1,290
|
1,306
|
||||||
Advances from customers and deferred revenues
|
798
|
3,589
|
||||||
Government institutions
|
444
|
748
|
||||||
16,552
|
17,395
|
A. |
Selling, general and administrative expenses
|
Six months ended June 30,
|
||||||||
2018
|
2017
|
|||||||
U.S. Dollars (in thousands)
|
||||||||
Selling (1)
|
9,379
|
6,722
|
||||||
General and administrative
|
3,285
|
4,437
|
||||||
12,664
|
11,159
|
|||||||
(1) Including shipping and handling costs
|
504
|
271
|
Six months ended June 30,
|
||||||||
2018
|
2017
|
|||||||
U.S. Dollars (in thousands)
|
||||||||
Interest income
|
220
|
15
|
||||||
Other, net (*)
|
216
|
(224
|
)
|
|||||
436
|
(209
|
)
|
(*) |
Other, net includes foreign currency income (expense) resulting from transactions not denominated in U.S. Dollars amounting to $261, and $(150) in 2018 and 2017, respectively.
|
June 30,
|
December 31,
|
|||||||
2018
|
2017
|
|||||||
U.S. Dollars (in thousands)
|
||||||||
Due from affiliated companies
|
335
|
681
|
Six months ended June 30,
|
||||||||
2018
|
2017
|
|||||||
U.S. Dollars (in thousands)
|
||||||||
Purchases from Priortech and affiliates
|
-
|
(13
|
)
|
|||||
Interest income from Priortech
|
62
|
15
|
Six months ended
June 30,
|
Three months
ended June 30,
|
Year ended
December 31,
|
||||||||||
2017
|
2017
|
2017
|
||||||||||
U.S. dollars
|
U.S. dollars
|
U.S. dollars
|
||||||||||
Revenues from discontinued operations
|
21,299
|
11,663
|
36,447
|
|||||||||
Cost of revenues
|
12,726
|
7,593
|
21,368
|
|||||||||
Gross profit from discontinued operations
|
8,573
|
4,070
|
15,079
|
|||||||||
Research and development costs
|
1,856
|
957
|
3,228
|
|||||||||
Selling, general and administrative expenses
|
2,234
|
1,080
|
6,260
|
|||||||||
Financial expenses, net
|
(144
|
)
|
(52
|
)
|
(96
|
)
|
||||||
Gain on sale of discontinued operation
|
-
|
-
|
12,807
|
|||||||||
Income from discontinued operations before taxes
|
4,339
|
1,981
|
18,302
|
|||||||||
Income tax
|
(505
|
)
|
(194
|
)
|
(6,028
|
)
|
||||||
Income from discontinued operations
|
3,834
|
1,787
|
12,274
|
A. |
Operating Results
|
Six Months Ended June 30,
|
||||||||
2018
|
2017
|
|||||||
Revenues
|
100.0
|
%
|
100.0
|
%
|
||||
Cost of revenues
|
51.7
|
%
|
51.1
|
%
|
||||
Gross profit
|
48.3
|
%
|
48.9
|
%
|
||||
Operating expenses:
|
||||||||
Research and development, net
|
12.0
|
%
|
15.6
|
%
|
||||
Selling and marketing
|
16.2
|
%
|
15.3
|
%
|
||||
General and administrative
|
5.7
|
%
|
10.2
|
%
|
||||
Expenses from settlement
|
-
|
29.7
|
%
|
|||||
Total operating expenses
|
33.9
|
%
|
70.8
|
%
|
||||
Operating income
|
14.4
|
%
|
-21.9
|
%
|
||||
Financial (expenses), net
|
0.8
|
%
|
-0.5
|
%
|
||||
Income tax (expenses) benefit
|
-1.5
|
%
|
12.2
|
%
|
||||
Net income from continuing operations
|
13.7
|
%
|
-10.2
|
%
|
||||
Income from discontinued operations
|
||||||||
Income before tax expense, net
|
-
|
9.9
|
%
|
|||||
Income tax expenses
|
-
|
-1.2
|
%
|
|||||
Net income from discontinued operations….
|
-
|
8.7
|
%
|
|||||
Net income (loss
|
13.7
|
%
|
-1.5
|
%
|
Document and Entity Information |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Document And Entity [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2018 |
Entity Registrant Name | CAMTEK LTD |
Entity Central Index Key | 0001109138 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Period Focus | Q2 |
Document Fiscal Year Focus | 2018 |
Entity Filer Category | Non-accelerated Filer |
Interim Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - ₪ / shares |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common Stock, par value per share | ₪ 0.01 | ₪ 0.01 |
Common Stock, shares authorized | 100,000,000 | 100,000,000 |
Common Stock, shares issued | 38,277,165 | 37,924,507 |
Common Stock, shares outstanding | 36,184,789 | 35,832,131 |
Treasury Stock, shares | 2,092,376 | 2,092,376 |
Interim Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
||||
Income Statement [Abstract] | ||||||||
Revenues | $ 30,462 | $ 22,682 | $ 57,736 | $ 43,828 | $ 93,485 | |||
Cost of revenues | 15,563 | 11,527 | 29,840 | 22,384 | 47,966 | |||
Gross profit | 14,899 | 11,155 | 27,896 | 21,444 | 45,519 | |||
Research and development costs | 3,406 | 3,413 | 6,955 | 6,852 | 13,534 | |||
Selling, general and administrative expenses | 6,775 | 5,754 | 12,664 | 11,159 | 22,022 | |||
Expenses from settlement | 13,000 | 13,000 | 13,000 | |||||
Total operating expenses | 10,181 | 22,167 | 19,619 | 31,011 | 48,556 | |||
Operating income (loss) | 4,718 | (11,012) | 8,277 | (9,567) | (3,037) | |||
Financial income (expenses), net | 146 | (56) | 436 | (209) | (150) | |||
Income (loss) from continuing operations before taxes | 4,864 | (11,068) | 8,713 | (9,776) | (3,187) | |||
Income tax benefit (expense) | (533) | 5,404 | (848) | 5,364 | 4,875 | |||
Net income (loss) from continuing operations | 4,331 | (5,664) | 7,865 | (4,412) | 1,688 | |||
Income from discontinued operations | ||||||||
Income before tax benefit (expense) | [1] | 1,981 | 4,339 | 18,302 | ||||
Income tax benefit (expense) | [1] | (194) | (505) | (6,028) | ||||
Income from discontinued operation | [1] | 1,787 | 3,834 | 12,274 | ||||
Net income (loss) | $ 4,331 | $ (3,877) | $ 7,865 | $ (578) | $ 13,962 | |||
Net income (loss) per ordinary share: | ||||||||
Basic earnings (losses) from continuing operation | $ 0.12 | $ (0.16) | $ 0.22 | $ (0.12) | $ 0.05 | |||
Basic earnings from discontinued operation | 0.05 | 0.11 | 0.35 | |||||
Basic net earnings (losses) | 0.12 | (0.11) | 0.22 | (0.02) | 0.40 | |||
Diluted earnings (losses) from continuing operation | 0.12 | (0.16) | 0.22 | (0.12) | 0.05 | |||
Diluted earnings from discontinued operations | 0.05 | 0.11 | 0.34 | |||||
Diluted net earnings (losses) | $ 0.12 | $ (0.11) | $ 0.22 | $ (0.02) | $ 0.39 | |||
Weighted average number of ordinary shares outstanding (in thousands): | ||||||||
Basic | 36,090 | 35,369 | 36,050 | 35,359 | 35,441 | |||
Diluted | 36,632 | 35,369 | 36,512 | 35,359 | 35,964 | |||
|
Interim Unaudited Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands |
Ordinary Shares NIS 0.01 par value [Member] |
Number of Treasury Shares [Member] |
Additional paid-in capital [Member] |
Retained earnings (accumulated losses) [Member] |
Treasury stock [Member] |
Total |
|||
---|---|---|---|---|---|---|---|---|---|
Balance, value at Dec. 31, 2016 | $ 148 | $ (2,092,376) | $ 76,463 | $ (1,348) | $ (1,898) | $ 73,365 | |||
Balance, shares at Dec. 31, 2016 | 37,440,552 | ||||||||
Share-based compensation expense | 634 | 634 | |||||||
Exercise of share options and RSUs | $ 1 | 1,340 | 1,341 | ||||||
Exercise of share options and RSUs, Shares | 483,955 | ||||||||
Dividend | (5,001) | (5,001) | |||||||
Net income | 13,962 | 13,962 | |||||||
Balance, value at Dec. 31, 2017 | $ 149 | (2,092,376) | 78,437 | 7,613 | (1,898) | $ 84,301 | |||
Balance, shares at Dec. 31, 2017 | 37,924,507 | 35,832,131 | |||||||
Share-based compensation expense | 394 | $ 394 | |||||||
Exercise of share options and RSUs | [1] | 989 | 989 | ||||||
Exercise of share options and RSUs, Shares | 352,658 | ||||||||
Dividend | (5,063) | (5,063) | |||||||
Net income | 7,865 | 7,865 | |||||||
Balance, value at Jun. 30, 2018 | $ 149 | $ (2,092,376) | $ 79,820 | $ 10,415 | $ (1,898) | $ 88,486 | |||
Balance, shares at Jun. 30, 2018 | 38,277,165 | 36,184,789 | |||||||
|
Nature of Operations |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Nature of Operations [Abstract] | |
Nature of Operations | Note 1 - Nature of Operations
Camtek Ltd. (“Camtek” or “Company”), an Israeli corporation, is controlled by (43.30%) Priortech Ltd. (“Parent”), an Israeli corporation listed on the Tel-Aviv Stock Exchange. Camtek provides automated and technologically advanced solutions dedicated to enhancing production processes, increasing products yield and reliability, and enabling and supporting customers’ latest technologies in the semiconductor fabrication industry.
In September 2017, the Company completed the sale of its PCB inspection and metrology business unit. The Buyers acquired all of the assets and liabilities related to the PCB business unit, including 100% equity interests in the Company’s Chinese and Taiwanese subsidiaries. The Company received a total cash consideration of $32,000 thousand and may receive an additional amount of up to $3,000 thousand conditioned upon the PCB business unit's revenues in 2018. The Company records the contingent consideration portion of the arrangement when the consideration is determined to be realizable. As of June 30, 2018, no asset with respect of contingent consideration was recognized.
Due to the sale of the Company’s PCB business, the results of this unit ceased to be consolidated into these financial statements and are accounted as discontinued operations in the prior periods.
|
Basis of Preparation |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Basis of Preparation [Abstract] | |
Basis of Preparation | Note 2 - Basis of Preparation
A. Statement of compliance
The accompanying unaudited condensed consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and do not include all of the information required for full annual financial statements. The unaudited condensed consolidated interim statements should be read in conjunction with the Company’s 2017 annual audited consolidated financial statements and footnotes, which were filed with the U.S. Securities and Exchange Commission as part of the Company’s annual report on Form 20-F for the year ended December 31, 2017.
In the opinion of management of the Company, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six-month periods ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ended December 31, 2018 or for any other future period.
B. Recent Accounting Pronouncements
Effective January 1, 2017, the Company adopted ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory.” This simplifies subsequent measurement of inventory by having an entity measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable cost of completion, disposal, and transportation. The adoption of ASU 2015-11 did not have any impact on the Company's consolidated financial position, results of operations, and cash flows.
In May 2017, the FASB issued ASU No. 2017-09, “Compensation - Stock Compensation (Topic718): Scope of Modification Accounting.” This ASU amends the scope of modification accounting for share-based payment arrangements and provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company chose to adopt ASU No. 2017-09 early and the adoption did not have any impact on the Company's consolidated financial position, results of operations, and cash flows.
In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This ASU provides guidance on statement of cash flows presentation for eight specific cash flow issues where diversity in practice exists. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The adoption did not have any impact on the Company's consolidated financial position, results of operations, and cash flows.
In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” This ASU requires that lessees will be required to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. ASU No. 2016-02 also will require disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative information. This ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018 with earlier adoption permitted. The expected impact for the Company is an increase in property, plant and equipment and in financial liabilities.
In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. ASU 2014-09 became effective for the Company beginning in the first quarter of 2018.
Subsequently, the FASB issued the following standards related to ASU 2014-09: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (“ASU 2016-08”); ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (“ASU 2016-10”); and ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”). The Company must adopt ASU 2016-08, ASU 2016-10 and ASU 2016-12 with ASU 2014-09 (collectively, the “New Revenue Standards”) commencing the first quarter of 2018.
The Company adopted the New Revenue Standards in the first quarter of 2018 retrospectively with the cumulative effect recognized as of the date of adoption.
The Company analyzed the impact of the New Revenue Standards on its contract portfolio by reviewing its current accounting policies and practices to identify potential differences that would result from applying the requirements of the New Revenue Standards to its revenue contracts. In addition, the Company identified and implemented appropriate changes to its business processes and related policies to support recognition and disclosure under the New Revenue Standards.
The Company’s revenues are based on signed contracts or customer purchase orders accepted by the Company. There is no change in this position with regards to identifying the contract with the customer. The Company has identified that the only performance obligation in its contracts, distinct from the provision of a machine, installation and standard warranty, is in the case of an extended warranty which is included in the minority of contracts. The Company defers revenues in respect of extended warranty, when applicable, using observable stand-alone selling prices of annual service contracts in each geographical market and stand-alone selling prices of machine contract. The deferred revenue related to the extended warranty is calculated according to fair value relations. The ratio of annual service contract to machine price is calculated and updated annually. This was also the practice under ASC 605-25.
In the six-month period to June 30, 2018, the Company recognized $170 of previously deferred revenues in respect of extended warranties.
The Company has determined that whilst its machines are customized to the requirements of specific customers, there are no practical or contractual restrictions from transferring the machine to a different customer at little additional cost. As such, they have an alternative use and should recognize revenue at a point in time, that is, upon installation.
The cumulative effect of adopting the New Revenue Standards on the Company’s revenues and operating income is not material, as the analysis of the Company’s contracts under the New Revenue Standards supports the recognition of revenue at a point in time for the majority of its contracts, which is consistent with its current revenue recognition model. Revenue on the majority of the Company’s contracts will continue to be recognized upon delivery because this represents the point in time at which control is transferred to the customer. Revenues derived from performance obligations such as warranty and service contracts will continue to be recognized over the period of the service. In addition, the number of the Company’s performance obligations under the New Revenue Standards is not materially different from the Company’s contract elements under the existing standard. Finally, the accounting for the estimate of variable consideration is not materially different compared to the Company’s current practice.
The adoption did not have a material impact on the Company's consolidated balance sheet.
|
Shareholders' Equity |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 3 - Shareholders’ Equity
A. General
The Company shares are traded on the NASDAQ Global Market under the symbol of CAMT, and also listed and traded on the Tel-Aviv stock exchange.
B. Changes in Stock Options
In the second quarter of 2018, 226,509 share options were exercised.
In June 2018, 1,034,934 Restricted Share Units (RSUs) were granted by the Company. The RSUs vest over a four-year period. Of this grant, 448,035 RSUs vest based on performance milestones.
In 2017, 154,600 stock options and 86,500 Restricted Share Units (RSUs) were granted by the Company. The options and the RSUs vest over a four-year period.
|
Segment Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Note 4 – Segment Information
Substantially all fixed assets are located in Israel and substantially all revenues are derived from shipments to other countries. Revenues are attributable to geographic areas/countries based upon the destination of shipment of products and related services as follows:
|
Supplementary Financial Statements Information |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplementary Financial Statements Information | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplementary Financial Statements Information | Note 5 - Supplementary Financial Statements Information
A. Cash and cash equivalents
The Company’s cash and cash equivalent balance at June 30, 2018 and December 31, 2017 is denominated in the following currencies:
B. Inventories
Inventories are presented in:
C. Other Current Assets
*Includes an amount of $571 due from sale of PCB business
D. Property, Plant and Equipment, Net
E. Intangible Assets, Net
F. Other Current Liabilities
|
Statements of Operations |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Statement Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statements of Operations | Note 6 - Statements of Operations
B. Financial income (expenses), net
|
Balances and Transactions with Related Parties |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances and Transactions with Related Parties [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances and Transactions with Related Parties | Note 7 - Balances and Transactions with Related Parties
A. Balances with related parties:
B. Transactions with related parties:
Unpaid balances between Priortech and its subsidiaries in Israel and the Company bear interest of 5.5%.
|
Discontinued Operations |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | Note 8 – Discontinued Operations
Further to that mentioned in Note 1, in 2017 the sale of the Company’s PCB business unit was completed. The Company received a gross amount of $ 32 million as a result of the acquisition, from which an amount of $2 million was deducted in respect of acquisition expenses and working capital adjustments. As a result of the sale the Company recognized a capital gain in the amount of $ 12.8 million.
Accordingly, the activities of the PCB business have been segregated and reported as discontinued operations in the consolidated statements of operations for the comparative periods presented.
The following table presents a reconciliation of the major classes of line items constituting pretax profit of discontinued operations to after-tax profit reported in discontinued operations for the three- and six-month periods ended June 30, 2017, and the year ended December 31, 2017:
|
Basis of Preparation (Policies) |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Basis of Preparation [Abstract] | |
Statement of compliance | A. Statement of compliance
The accompanying unaudited condensed consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and do not include all of the information required for full annual financial statements. The unaudited condensed consolidated interim statements should be read in conjunction with the Company’s 2017 annual audited consolidated financial statements and footnotes, which were filed with the U.S. Securities and Exchange Commission as part of the Company’s annual report on Form 20-F for the year ended December 31, 2017.
In the opinion of management of the Company, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six-month periods ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ended December 31, 2018 or for any other future period.
|
Recent Accounting Pronouncements | B. Recent Accounting Pronouncements
Effective January 1, 2017, the Company adopted ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory.” This simplifies subsequent measurement of inventory by having an entity measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable cost of completion, disposal, and transportation. The adoption of ASU 2015-11 did not have any impact on the Company's consolidated financial position, results of operations, and cash flows.
In May 2017, the FASB issued ASU No. 2017-09, “Compensation - Stock Compensation (Topic718): Scope of Modification Accounting.” This ASU amends the scope of modification accounting for share-based payment arrangements and provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company chose to adopt ASU No. 2017-09 early and the adoption did not have any impact on the Company's consolidated financial position, results of operations, and cash flows.
In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This ASU provides guidance on statement of cash flows presentation for eight specific cash flow issues where diversity in practice exists. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The adoption did not have any impact on the Company's consolidated financial position, results of operations, and cash flows.
In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” This ASU requires that lessees will be required to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. ASU No. 2016-02 also will require disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative information. This ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018 with earlier adoption permitted. The expected impact for the Company is an increase in property, plant and equipment and in financial liabilities.
In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. ASU 2014-09 became effective for the Company beginning in the first quarter of 2018.
Subsequently, the FASB issued the following standards related to ASU 2014-09: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (“ASU 2016-08”); ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (“ASU 2016-10”); and ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”). The Company must adopt ASU 2016-08, ASU 2016-10 and ASU 2016-12 with ASU 2014-09 (collectively, the “New Revenue Standards”) commencing the first quarter of 2018.
The Company adopted the New Revenue Standards in the first quarter of 2018 retrospectively with the cumulative effect recognized as of the date of adoption.
The Company analyzed the impact of the New Revenue Standards on its contract portfolio by reviewing its current accounting policies and practices to identify potential differences that would result from applying the requirements of the New Revenue Standards to its revenue contracts. In addition, the Company identified and implemented appropriate changes to its business processes and related policies to support recognition and disclosure under the New Revenue Standards.
The Company’s revenues are based on signed contracts or customer purchase orders accepted by the Company. There is no change in this position with regards to identifying the contract with the customer. The Company has identified that the only performance obligation in its contracts, distinct from the provision of a machine, installation and standard warranty, is in the case of an extended warranty which is included in the minority of contracts. The Company defers revenues in respect of extended warranty, when applicable, using observable stand-alone selling prices of annual service contracts in each geographical market and stand-alone selling prices of machine contract. The deferred revenue related to the extended warranty is calculated according to fair value relations. The ratio of annual service contract to machine price is calculated and updated annually. This was also the practice under ASC 605-25.
In the six-month period to June 30, 2018, the Company recognized $170 of previously deferred revenues in respect of extended warranties.
The Company has determined that whilst its machines are customized to the requirements of specific customers, there are no practical or contractual restrictions from transferring the machine to a different customer at little additional cost. As such, they have an alternative use and should recognize revenue at a point in time, that is, upon installation.
The cumulative effect of adopting the New Revenue Standards on the Company’s revenues and operating income is not material, as the analysis of the Company’s contracts under the New Revenue Standards supports the recognition of revenue at a point in time for the majority of its contracts, which is consistent with its current revenue recognition model. Revenue on the majority of the Company’s contracts will continue to be recognized upon delivery because this represents the point in time at which control is transferred to the customer. Revenues derived from performance obligations such as warranty and service contracts will continue to be recognized over the period of the service. In addition, the number of the Company’s performance obligations under the New Revenue Standards is not materially different from the Company’s contract elements under the existing standard. Finally, the accounting for the estimate of variable consideration is not materially different compared to the Company’s current practice.
The adoption did not have a material impact on the Company's consolidated balance sheet.
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Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenues by Geographic Area | Revenues are attributable to geographic areas/countries based upon the destination of shipment of products and related services as follows:
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Supplementary Financial Statements Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents, Currencies | The Company’s cash and cash equivalent balance at June 30, 2018 and December 31, 2017 is denominated in the following currencies:
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Schedule of Inventories |
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Balance Sheet Presentation of Inventories |
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Other Current Assets |
*Includes an amount of $571 due from sale of PCB business |
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Schedule of Property, Plant and Equipment, Net |
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Schedule of Intangible Assets, Net |
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Schedule of Other Current Liabilities |
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Statements of Operations (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Statement Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Selling, General and Administrative Expenses Data |
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Selected Financial Income (Expenses) Data |
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Balances and Transactions with Related Parties (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances and Transactions with Related Parties [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Balances and Transactions | A. Balances with related parties:
B. Transactions with related parties:
Unpaid balances between Priortech and its subsidiaries in Israel and the Company bear interest of 5.5%. |
Discontinued Operations (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Discontinued Operation | The following table presents a reconciliation of the major classes of line items constituting pretax profit of discontinued operations to after-tax profit reported in discontinued operations for the three- and six-month periods ended June 30, 2017, and the year ended December 31, 2017:
|
Nature of Operations (Narrative) (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2018
USD ($)
| |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 43.30% |
PCB [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 100.00% |
Cash payment to be received for sale of discontinued operations | $ 32,000 |
Additional cash payment to be received for sale of discontinued operations | $ 3,000 |
Basis of Preparation (Details) |
Jun. 30, 2018
USD ($)
|
---|---|
Basis of Preparation [Abstract] | |
Deferred revenues | $ 170 |
Shareholders' Equity (Narrative) (Details) - shares |
3 Months Ended | 6 Months Ended | 12 Months Ended |
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2018 |
Dec. 31, 2017 |
|
Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise of share options, shares | 226,509 | ||
Number of stock options granted | 154,600 | ||
Vesting period | 4 years | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock options granted | 1,034,934 | 86,500 | |
Vesting period | 4 years | 4 years | |
Number of stock options vested | 448,035 |
Segment Information (Schedule of Revenues by Geographic Area) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 30,462 | $ 22,682 | $ 57,736 | $ 43,828 | $ 93,485 |
Asia Pacific [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 44,280 | 38,417 | 79,105 | ||
United States [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 6,682 | 3,009 | 9,484 | ||
Europe [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 6,774 | $ 2,402 | $ 4,896 |
Supplementary Financial Statements Information (Currencies) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
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Cash and Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents | $ 41,204 | $ 47,172 | $ 43,744 | $ 27,122 | $ 24,277 | $ 19,740 |
U.S. Dollars [Member] | ||||||
Cash and Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents | 35,327 | 36,636 | ||||
New Israeli Shekels [Member] | ||||||
Cash and Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents | 2,500 | 1,122 | ||||
Euro [Member] | ||||||
Cash and Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents | 1,831 | 3,603 | ||||
Other Currencies [Member] | ||||||
Cash and Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents | $ 1,546 | $ 2,383 |
Supplementary Financial Statements Information (Inventories) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Components | $ 10,756 | $ 9,690 |
Work in process | 4,976 | 6,584 |
Finished products (including systems at customer locations not yet sold) | 9,427 | 6,445 |
Total inventories | 25,159 | 22,719 |
Current assets | 23,693 | 21,336 |
Long-term assets | $ 1,466 | $ 1,383 |
Supplementary Financial Statements Information (Other Current Assets) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Current assets | |||||
Due from Government institutions | $ 1,478 | $ 607 | |||
Prepaid expenses | 513 | 561 | |||
Due from related parties | 335 | 681 | |||
Other | 443 | 1,366 | [1] | ||
Other current assets | $ 2,769 | 3,215 | |||
Due from sale of PCB business | $ 571 | ||||
|
Supplementary Financial Statements Information (Intangible Assets, Net) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Patent registration costs | $ 1,549 | $ 1,513 |
Accumulated amortization and impairment | 1,069 | 1,031 |
Total intangible assets, net | $ 480 | $ 482 |
Supplementary Financial Statements Information (Other Current Liabilities) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Accrued employee compensation and related benefits | $ 6,006 | $ 6,248 |
Commissions | 6,483 | 4,204 |
Accrued warranty costs | 1,531 | 1,300 |
Accrued expenses | 1,290 | 1,306 |
Advances from customers and deferred revenues | 798 | 3,589 |
Government institutions | 444 | 748 |
Total other current liabilities | $ 16,552 | $ 17,395 |
Statements of Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
||||||
Income Statement Related Disclosures [Abstract] | ||||||||||
Selling | [1] | $ 9,379 | $ 6,722 | |||||||
General and administrative | 3,285 | 4,437 | ||||||||
Total selling, general and administrative expenses | $ 6,775 | $ 5,754 | 12,664 | 11,159 | $ 22,022 | |||||
Shipping and handling costs | 504 | 271 | ||||||||
Interest income | 220 | 15 | ||||||||
Other, net | [2] | 216 | (224) | |||||||
Financial income (expenses), net | $ 146 | $ (56) | 436 | (209) | $ (150) | |||||
Foreign currency income (expense) | $ 261 | $ (150) | ||||||||
|
Balances and Transactions with Related Parties (Details) - Affiliated Entity [Member] - USD ($) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
|
Related Party Transaction [Line Items] | |||
Due from affiliated companies | $ 335 | $ 681 | |
Purchases from Priortech and affiliates | $ (13) | ||
Interest income from Priortech | $ 62 | $ 15 | |
Interest rate, related party | 5.50% | 5.50% |
Discontinued Operations (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended |
---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2017 |
Dec. 31, 2017 |
|
Gain on sale of discontinued operation | $ 12,807 | ||
PCB business [Member] | |||
Gross proceeds from sale of discontinued operations | 32,000 | ||
Acquisition expense deducted from gross proceeds from sale of discontinued operations | 2,000 | ||
Gain on sale of discontinued operation | $ 12,800 |
Discontinued Operations (Schedule of Discontinued Operation Revenue) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||
Revenues from discontinued operations | $ 11,663 | $ 21,299 | $ 36,447 | |||||
Cost of revenues | 7,593 | 12,726 | 21,368 | |||||
Gross profit from discontinued operations | 4,070 | 8,573 | 15,079 | |||||
Research and development costs | 957 | 1,856 | 3,228 | |||||
Selling, general and administrative expenses | 1,080 | 2,234 | 6,260 | |||||
Financial income (expenses), net | (52) | (144) | (96) | |||||
Gain on sale of discontinued operation | 12,807 | |||||||
Income from discontinued operations before taxes | [1] | 1,981 | 4,339 | 18,302 | ||||
Income tax | [1] | (194) | (505) | (6,028) | ||||
Income from discontinued operation | [1] | $ 1,787 | $ 3,834 | $ 12,274 | ||||
|
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