SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 11   SEGMENT INFORMATION

The Company has two operating segments: (i) Original Equipment Manufacturing (“OEM”) and (ii) After Market (“AM”) (see Note 1 for a brief description of the Company’s business). The Company’s chief operating decision-maker (CEO of the Company) evaluates performance, makes operating decisions and allocates resources based on the financial data of these operating segments. Segment performance (which is the operating income reported) excludes stock-based compensation expenses. The measure of assets has not been disclosed for each segment as it is not regularly reviewed by the CODM.

The accounting policies of the individual segments are the same as those described in the summary of significant accounting policies in note 2 to the consolidated financial statements.

The following is segment results for the years ended December 31, 2015, 2014 and 2013:

​	Year ended December 31, 2015
​	OEM		AM		Amounts not  allocated to  segments		Consolidated
​	U.S. dollars in thousands
Revenues	​	202,287	​	38,585	​	​	​	240,872
Cost of revenues	​	49,314	​	12,080	​	26	​	61,420
Gross profit	​	152,973	​	26,505	​	​	​	179,452
Research and development, net	​	33,249	​	2,128	​	8,016	​	43,393
Sales and marketing	​	421	​	11,113	​	1,277	​	12,811
General and administrative	​	8,794	​	1,065	​	35,650	​	45,509
Segment performance	​	110,509	​	12,199	​	​	​	77,739
Interest income	​	​	​	​	​	​	​	2,888
Financial expenses, net	​	​	​	​	​	​	​	(917)
Profit before taxes on income	​	​	​	​	​	​	​	79,710
Depreciation	​	3,296	​	16	​	​	​	3,312

 

​	Year ended December 31, 2014
​	OEM		AM		Amounts not allocated to segments		Consolidated
​	U.S. dollars in thousands
Revenues	​	121,799	​	21,838	​	​	​	143,637
Cost of revenues	​	30,293	​	6,720	​	27	​	37,040
Gross profit	​	91,506	​	15,118	​	​	​	106,597
Research and development, net	​	28,995	​	1,805	​	6,130	​	36,930
Sales and Marketing	​	560	​	7,151	​	5,201	​	12,912
General and administrative	​	5,038	​	904	​	65,495	​	71,437
Segment performance	​	56,913	​	5,258	​	​	​	(14,682)
Interest income	​	​	​	​	​	​	​	1,305
Financial expenses, net	​	​	​	​	​	​	​	(4,442)
Loss before taxes on income	​	​	​	​	​	​	​	(17,819)
Depreciation	​	2,533	​	18	​	​	​	2,551

​	Year ended December 31, 2013
​	OEM		AM		Amounts not allocated to segments		Consolidated
​	U.S. dollars in thousands
Revenues	​	63,290	​	17,955	​	​	​	81,245
Cost of revenues	​	15,907	​	5,207	​	16	​	21,130
Gross profit	​	47,383	​	12,748	​	​	​	60,115
Research and development, net	​	18,362	​	1,627	​	2,320	​	22,309
Sales and Marketing	​	337	​	6,133	​	5,861	​	12,331
General and administrative	​	4,767	​	576	​	4,934	​	10,277
Segment performance	​	23,917	​	4,412	​	​	​	15,198
Interest income	​	​	​	​	​	​	​	1,059
Financial income, net	​	​	​	​	​	​	​	1,389
Profit before taxes on income	​	​	​	​	​	​	​	17,646
Depreciation	​	1,696	​	20	​	​	​	1,716