ELTEK LTD.
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(Registrant)
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By: /s/Ron Freund
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Ron Freund
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Chief Financial Officer
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EXHIBIT NO.
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DESCRIPTION
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◾ |
Revenues were $11.9 million, up 15% over Q3 2022
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◾ |
Operating profit was $2.3 million, up 105% over Q3 2022
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◾ |
Profit before tax was $2.6 million compared to $1.2 million at Q3 2022.
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◾ |
Net income was $2.1 million or $0.36 per fully diluted share, up 114% over Q3 2022
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◾ |
As of September 30, 2023, cash and cash equivalents amounted $11.3 million compared to $8.3 million at the end of the previous quarter.
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Three months ended
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Nine months ended
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|||||||||||||||
September 30,
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September 30,
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|||||||||||||||
2023
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2022
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2023
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2022
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|||||||||||||
Revenues
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11,861
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10,327
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34,374
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29,171
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||||||||||||
Costs of revenues
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(8,182
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)
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(7,908
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)
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(24,728
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)
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(23,113
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)
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||||||||
Gross profit
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3,679
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2,419
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9,646
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6,058
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||||||||||||
Selling, general and administrative expenses
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(1,357
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)
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(1,261
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)
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(4,317
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)
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(3,859
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)
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||||||||
R&D expenses, net
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(12
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)
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(33
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)
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(36
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)
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(77
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)
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||||||||
Operating profit
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2,310
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1,125
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5,293
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2,122
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||||||||||||
Financial income, net
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279
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55
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756
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787
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||||||||||||
Income before income tax
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2,589
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1,180
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6,049
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2,909
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||||||||||||
Taxes on income
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442
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176
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1,027
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520
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||||||||||||
Net income
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2,147
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1,004
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5,022
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2,389
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||||||||||||
Earnings per share:
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Basic and diluted net profit per ordinary share
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0.36
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0.17
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0.85
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0.41
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Weighted average number of ordinary shares used to compute
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basic net profit per ordinary share (in thousands)
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5,914
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5,850
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5,890
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5,846
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Weighted average number of ordinary shares used to compute
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||||||||||||||||
diluted net profit per ordinary share (in thousands)
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5,987
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5,850
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5,927
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5,846
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September 30,
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December 31,
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|||||||
2023
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2022
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Assets
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Current assets:
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Cash and cash equivalents
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11,305
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7,366
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||||||
Receivables: Trade, net of provision for doubtful accounts
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10,112
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10,116
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Other
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719
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282
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||||||
Inventories
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5,577
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5,130
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Prepaid expenses
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228
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504
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||||||
Total current assets
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27,941
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23,398
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||||||
Long term assets:
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Restricted deposits
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-
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202
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||||||
Severance pay fund
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54
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59
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||||||
Deferred tax assets and long term tax receivables, net
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1,299
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2,496
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Operating lease right of use assets
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6,380
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7,156
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Total long term assets
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7,733
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9,913
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Fixed assets, less accumulated depreciation
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6,601
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7,674
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Total Assets
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42,275
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40,985
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||||||
Liabilities and Shareholder's equity
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Current liabilities:
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Short-term credit and current maturities of long-term debts
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-
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702
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||||||
Accounts payable: Trade
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4,779
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4,793
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Other
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5,962
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4,133
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Short-term operating lease liabilities
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757
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846
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||||||
Total current liabilities
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11,498
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10,474
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Long-term liabilities:
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Long term debt, excluding current maturities
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-
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2,768
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||||||
Employee severance benefits
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291
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280
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||||||
Long-term operating lease liabilities
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5,724
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6,443
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Total long-term liabilities
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6,015
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9,491
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Shareholders' equity:
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Ordinary shares of NIS 3.0 par value – Authorized: 10,000,000 shares at September 30, 2023 and December 31, 2022;
Issued and outstanding: 5,913,965 shares at September 30, 2023 and 5,849,678 shares at December 31, 2022
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5,358
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5,305
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Additional paid-in capital
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23,137
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22,862
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Cumulative foreign currency translation adjustments
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(635
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)
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1,189
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Capital reserve
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1,753
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1,537
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Accumulated deficit
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(4,851
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)
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(9,873
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)
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Total shareholders' equity
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24,762
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21,020
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Total liabilities and shareholders' equity
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42,275
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40,985
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Three months ended
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Nine months ended
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September 30,
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September 30,
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2023
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2022
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2023
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2022
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GAAP Net Income
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2,147
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1,004
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5,022
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2,389
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||||||||||||
Add back items:
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Financial income, net
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(279
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)
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(55
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)
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(756
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)
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(787
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)
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Income tax expenses
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442
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176
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1,027
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520
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Depreciation and amortization
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299
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325
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929
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1,205
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Non-GAAP EBITDA
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2,609
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1,450
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6,222
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3,327
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Three months ended
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Nine months ended
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September 30,
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September 30,
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2023
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2022
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2023
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2022
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Cash flows from operating activities:
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Net Income
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2,147
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1,004
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5,022
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2,389
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Adjustments to reconcile net income to net cash flows provided by operating activities:
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Depreciation and amortization
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299
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325
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929
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1,205
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Stock-based compensation
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72
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71
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216
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188
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Decrease in deferred tax assets and long term tax receivable
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432
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170
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998
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499
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803
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566
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2,143
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1,892
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Decrease (increase) in operating lease right-of-use assets
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-
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12
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(22
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)
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8
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Decrease (increase) in trade receivables
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985
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(1,208
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)
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(799
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)
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(3,488
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)
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Decrease (increase) in other receivables and prepaid expenses
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87
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311
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(224
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)
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393
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|||||||||||
Decrease (increase) in inventories
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(47
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)
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382
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(856
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)
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(340
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)
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|||||||||
Increase (decrease) in trade payables
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(74
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)
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371
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31
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1,143
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|||||||||||
Increase (decrease) in other liabilities and accrued expenses
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(263
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)
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277
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1,214
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566
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|||||||||||
Increase (decrease) in employee severance benefits, net
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11
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11
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33
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11
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||||||||||||
699
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156
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(623
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)
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(1,707
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)
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|||||||||||
Net cash provided by operating activities
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3,649
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1,726
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6,542
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2,574
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||||||||||||
Cash flows from investing activities:
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Purchase of fixed assets
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(475
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)
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(1,841
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)
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(1,186
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)
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(2,456
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)
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||||||||
Insurance Proceeds
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-
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-
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2,000
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-
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||||||||||||
Restricted deposits
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-
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-
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192
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(2
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)
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|||||||||||
Net cash provided by (used in) investing activities
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(475
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)
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(1,841
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)
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1,006
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(2,458
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)
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|||||||||
Cash flows from financing activities:
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Exercise of options
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29
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-
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328
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25
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||||||||||||
Repayment of long-term loans from bank
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-
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(181
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)
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(3,348
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)
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(432
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)
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|||||||||
Repayment of credit from fixed asset payables
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-
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(3
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)
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-
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(10
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)
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||||||||||
Net cash provided by (used in) financing activities
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29
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(184
|
)
|
(3,020
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)
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(417
|
)
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|||||||||
Effect of translation adjustments
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(228
|
)
|
(100
|
)
|
(589
|
)
|
(1,135
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)
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||||||||
Net increase (decrease) in cash and cash equivalents
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2,975
|
(399
|
)
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3,939
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(1,436
|
)
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||||||||||
Cash and cash equivalents at the beginning of the period
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8,330
|
8,246
|
7,366
|
9,283
|
||||||||||||
Cash and cash equivalents at the end of the period
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11,305
|
7,847
|
11,305
|
7,847
|
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