Selected Statement of Operations Data (Tables)

12 Months Ended

Dec. 31, 2014

Financial Data Relating to Reportable Segments

1. Financial data relating to reportable segments:

	Production solutions for the electronics industry			Solar energy			Recognition software		Total
	$ in thousands
Year ended December 31, 2014:
Revenues from unaffiliated customers:
Sales of products		385,341			11,162			7,460		403,963
Services rendered		172,297			719			5,767		178,783
Total revenues		557,638			11,881			13,227		582,746
Operating income (loss)		*47,507			(428	)		1,067		48,146
Assets (at end of year)		985,690			3,699			12,482		1,001,871
Expenditures for segment assets		12,330						170		12,500
Depreciation and amortization		30,162						171		30,333
Year ended December 31, 2013:
Revenues from unaffiliated customers:
Sales of products		286,506						7,521		294,027
Services rendered		140,280						5,688		145,968
Total revenues		426,786						13,209		439,995
Operating income (loss)		*50,954			(5,022	)		1,599		47,531
Assets (at end of year)		579,569			3,492			26,599		609,660
Expenditures for segment assets		12,928						50		12,978
Depreciation and amortization		12,953			136			172		13,261
Year ended December 31, 2012:
Revenues from unaffiliated customers:
Sales of products		230,822						8,098		238,920
Services rendered		141,884						6,204		148,088
Total revenues		372,706						14,302		387,008
Operating income (loss)		*(39,494	)		(5,117	)		3,815		(40,796	)
Assets (at end of year)		604,931			1,995			24,428		631,354
Expenditures for segment assets		9,425						59		9,484
Depreciation and amortization		17,545			179			195		17,919
Impairment of intangible assets		30,142								30,142

* Including share in net income of Frontline

Reconciliation of Operating Income of Reportable Segments to Data Included in Statements of Operations

2. Following is a reconciliation of the operating income of the reportable segments to the data included in the statements of operations:

	Year ended December 31
	2014		2013		2012
	$ in thousands
Operating income:
Total operating income of reportable segments		48,146		47,531		(40,796	)
Financial expenses, net		9,046		1,191		5,120
Income (loss) before taxes on income		39,100		46,340		(45,916	)

Reconciliation of Assets of Reportable Segments to Data Included in Consolidated Balance Sheets

3. Following is a reconciliation of the assets of the reportable segments to the data included in the consolidated balance sheets:

	Year ended December 31
	2014		2013		2012
	$ in thousands
Total assets of reportable segments at end of year		1,001,871		609,660		631,354
Assets not allocated to segments		32,101		26,922		22,652
Consolidated assets at end of year		1,033,972		636,582		654,006

Geographical Information

(ii) Geographical information:

	Year ended December 31
	2014		2013		2012
	$ in thousands
Revenues - classified by geographical area (based on the location of customers):
China		202,836		177,304		117,903
Taiwan		98,405		74,807		74,758
North America		87,900		43,042		41,569
Korea		55,607		72,333		62,954
Europe		54,004		18,605		18,477
Japan		44,840		33,676		43,877
Other (*)		39,154		20,228		27,470
Total revenues		582,746		439,995		387,008

^(*)  mainly in the Far East.

Schedule of Revenue by Major Product Lines

(iii) Revenues by major product lines are as follows:

	Year ended December 31
	2014		2013		2012
	$ in thousands
Inspection		171,300		149,134		145,329
Direct Imaging		152,607		167,522		138,843
Test and Repair		82,034		77,335		55,664
PVD/CVD		78,529
Others		98,276		46,004		47,172
Total revenues		582,746		439,995		387,008

Schedule of Revenue by Operating Segments

(iv) Revenues by major operating segments are as follows:

	Year ended December 31
	2014		2013		2012
	$ in thousands
PCB		286,225		295,228		275,494
FPD		160,759		131,558		97,212
SD		110,654
Others		25,108		13,209		14,302
Total revenues		582,746		439,995		387,008

Property Plant and Equipment Net of Accumulated Depreciation and Amortization by Geographical Location

(v) Property plant and equipment net of accumulated depreciation and amortization by geographical location:

	December 31
	2014		2013		2012
	$ in thousands
United Kingdom		23,058
Israel		13,707		11,018		11,187
United States		4,865		3,354		1,891
Italy		4,470		4,578		4,621
Germany		5,770		5,455		4,621
Rest of the world		3,710		3,310		2,239
Total		55,580		27,715		24,559

Cost and Expense

c. Cost of revenues:

	Year ended December 31
	2014		2013		2012*
	$ in thousands
1) Cost of products sold:
Materials and subcontractors		185,431		125,043		103,417
Labor costs		26,006		20,753		15,700
Overhead and other expenses		12,544		10,906		10,484
		223,981		156,702		129,601
2) Cost of services rendered:
Materials consumed		51,167		44,088		45,704
Labor costs		37,135		34,117		35,954
Overhead and other expenses		17,270		13,548		22,188
		105,572		91,753		103,846

* Excludes write-down of inventories and non-cancelable commitments in the amount of $14,255,000 in the year ended December 31, 2012.

Restructuring Costs

e. Restructuring costs

	Year ended December 31, 2012
	$ in thousands
The primary components of the restructuring costs:
Costs relating to workforce reduction		3,885
Other costs - mainly fixed assets impairment		1,178
		5,063

During 2012, the Company adopted certain measures designed to realign its infrastructure with current revenue levels and business conditions. These included a reduction in the Company’s worldwide workforce, consolidation of certain Company facilities and other cost-cutting measures, and resulted in a restructuring charge of approximately $5.1 million. As of the December 31, 2013 all related restructuring costs were paid.

Financial Expenses, Net

f. Financial expenses - net

	Year ended December 31
	2014			2013			2012
	$ in thousands
Income:
Interest:
In respect of bank deposits and marketable securities		1,074			1,465			3,042
Other					39			58
		1,074			1,504			3,100
Expenses:
Interest:
Bank loan					1,227			3,411
Term loans		7,184
Costs relating to factoring of letters of credits and promissory notes		227			71			122
Net loss from sale of marketable securities		339
Marketable securities and bonds premium/discount amortization		316			554			588
Foreign currency translation adjustments								860
Non-Dollar transaction losses - net		1,159			168			2,545
Bank charges and other		895			675			694
		10,120			2,695			8,220
		(9,046	)		(1,191	)		(5,120	)

Weighted Average Number of Shares for Computation of Earnings (Loss) Per Share

g. Earnings (loss) per share

Following are data relating to the weighted average number of shares for the purpose of computing earnings (loss) per share:

	Year ended December 31
	2014		2013		2012
	In thousands
Weighted average number of shares issued and outstanding (net of treasury shares) - used in computation of basic earnings (loss) per share		41,703		42,571		43,501
Add - incremental shares from assumed exercise of options		1,054		682
Weighted average number of shares used in computation of diluted earnings (loss) per share		42,757		43,253		43,501

General and Administrative Expense [Member]

Cost and Expense

d. Selling, general and administrative expenses

	Year ended December 31
	2014		2013		2012
	$ in thousands
Comprised as follows:
Selling		45,044		35,746		43,542
General and administrative		51,125		40,202		29,509
		96,169		75,948		73,051