SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 11   SEGMENT INFORMATION

The Company has two operating segments: (i) OEM and (ii) 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, 2016, 2015 and 2014:

	Year ended December 31, 2016
	OEM		AM		Amounts not allocated to segments		Consolidated
	U.S. dollars in thousands
Revenues		275,938		82,224				358,162
Cost of revenues		63,796		23,465		46		87,307
Gross profit		212,143		58,759				270,855
Research and development, net		49,848		3,195		12,216		65,259
Sales and marketing		1,241		15,469		706		17,416
General and administrative		13,192		1,415		52,634		67,241
Segment performance		147,862		38,680				120,939
Interest income								5,083
Financial expenses, net								(582)
Profit before taxes on income								125,440
Depreciation		3,798		291				4,089

	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