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Exhibit 1.
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Press Release, dated July 27, 2011, announcing financial results for the second quarter of 2011.
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AUDIOCODES LTD.
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(Registrant)
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By:
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/s/ Guy Avidan
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Guy Avidan
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Chief Financial Officer
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Exhibit No.
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Description
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1
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Press Release, dated July 27, 2011, announcing financial results for the second quarter of 2011.
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Company Contacts
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IR Agency Contact
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Guy Avidan,
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Shirley Nakar,
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Erik Knettel,
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VP Finance & CFO
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Director, Investor Relations
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Grayling
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AudioCodes
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AudioCodes
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Tel: +1-646-284-9415
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Tel: +972-3-976-4000
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Tel: +972-3-976-4000
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erik.knettel@grayling.com
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guy.avidan@audiocodes.com
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shirley@audiocodes.com
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June 30,
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December
31,
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|||||||
2011
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2010
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|||||||
(Unaudited)
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(Audited)
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|||||||
ASSETS
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||||||||
CURRENT ASSETS:
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Cash and cash equivalents
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$ | 19,292 | $ | 50,311 | ||||
Short-term bank deposits
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12,816 | 13,825 | ||||||
Short-term marketable securities and accrued interest
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341 | - | ||||||
Trade receivables, net
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33,125 | 25,881 | ||||||
Other receivables and prepaid expenses
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6,535 | 3,646 | ||||||
Deferred tax assets
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2,287 | 2,287 | ||||||
Inventories
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18,771 | 18,043 | ||||||
Total current assets
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93,167 | 113,993 | ||||||
LONG-TERM INVESTMENTS:
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||||||||
Long-term marketable securities and accrued interest
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24,043 | - | ||||||
Investments in companies
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1,065 | 1,317 | ||||||
Deferred tax assets
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2,261 | 2,261 | ||||||
Severance pay funds
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16,513 | 15,039 | ||||||
Total long-term investments
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43,882 | 18,617 | ||||||
PROPERTY AND EQUIPMENT, NET
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3,492 | 3,703 | ||||||
GOODWILL, INTANGIBLE ASSETS, DEFERRED CHARGES AND OTHER, NET
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36,644 | 37,405 | ||||||
Total assets
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$ | 177,185 | $ | 173,718 | ||||
LIABILITIES AND EQUITY
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CURRENT LIABILITIES:
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Current maturities of long-term bank loans
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$ | 6,000 | $ | 6,000 | ||||
Trade payables
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12,223 | 13,519 | ||||||
Other payables and accrued expenses
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18,527 | 24,168 | ||||||
Deferred revenues
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4,986 | 3,769 | ||||||
Total current liabilities
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41,736 | 47,456 | ||||||
LONG-TERM LIABILITIES:
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||||||||
Accrued severance pay
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$ | 17,250 | $ | 15,821 | ||||
Long-term bank loans
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6,750 | 9,750 | ||||||
Senior convertible notes
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353 | 353 | ||||||
Deferred revenue and other payables
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1,137 | 1,158 | ||||||
Total Long-Term liabilities
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25,490 | 27,082 | ||||||
Total equity
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109,959 | 99,180 | ||||||
Total liabilities and equity
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$ | 177,185 | $ | 173,718 |
Six months ended
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Three months ended
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|||||||||||||||
June 30,
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June 30,
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|||||||||||||||
2011
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2010
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2011
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2010
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(Unaudited)
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(Unaudited)
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Revenues
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$ | 82,555 | $ | 71,282 | $ | 41,511 | $ | 36,478 | ||||||||
Cost of revenues
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34,034 | 31,831 | 17,012 | 16,260 | ||||||||||||
Gross profit
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48,521 | 39,451 | 24,499 | 20,218 | ||||||||||||
Operating expenses:
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||||||||||||||||
Research and development, net
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15,970 | 15,086 | 7,436 | 7,730 | ||||||||||||
Selling and marketing
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21,328 | 16,212 | 11,107 | 8,148 | ||||||||||||
General and administrative
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4,446 | 4,031 | 2,314 | 2,063 | ||||||||||||
Total operating expenses
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41,744 | 35,329 | 20,857 | 17,941 | ||||||||||||
Operating income
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6,777 | 4,122 | 3,642 | 2,277 | ||||||||||||
Financial income (expenses), net
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643 | (201 | ) | 427 | (122 | ) | ||||||||||
Income before taxes on income
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7,420 | 3,921 | 4,069 | 2,155 | ||||||||||||
Taxes on income, net
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(147 | ) | (134 | ) | (82 | ) | (68 | ) | ||||||||
Equity in profit (losses) of an affiliated companies
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(252 | ) | - | 5 | (4 | ) | ||||||||||
Net income
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$ | 7,021 | $ | 3,787 | $ | 3,992 | $ | 2,083 | ||||||||
Net loss attributable to non-controlling Interest
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- | 111 | - | 20 | ||||||||||||
Net income attributable to AudioCodes
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$ | 7,021 | $ | 3,898 | $ | 3,992 | $ | 2,103 | ||||||||
Basic net earnings per share
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$ | 0.17 | $ | 0.10 | $ | 0.10 | $ | 0.05 | ||||||||
Diluted net earnings per share
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$ | 0.17 | $ | 0.10 | $ | 0.09 | $ | 0.05 | ||||||||
Weighted average number of shares used in computing basic net earnings per share (in thousands)
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41,471 | 40,369 | 41,610 | 40,437 | ||||||||||||
Weighted average number of shares used in computing diluted net earnings per share (in thousands)
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42,306 | 40,772 | 42,328 | 40,813 |
Six months ended
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Three months ended
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|||||||||||||||
June 30,
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June 30,
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|||||||||||||||
2011
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2010
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2011
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2010
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(Unaudited)
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(Unaudited)
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Revenues
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$ | 82,555 | $ | 71,282 | $ | 41,511 | $ | 36,478 | ||||||||
Cost of revenues (1) (2)
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33,361 | 31,175 | 16,675 | 15,932 | ||||||||||||
Gross profit
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49,194 | 40,107 | 24,836 | 20,546 | ||||||||||||
Operating expenses:
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Research and development, net (1)
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15,689 | 14,886 | 7,282 | 7,634 | ||||||||||||
Selling and marketing (1) (2)
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20,590 | 15,756 | 10,807 | 7,920 | ||||||||||||
General and administrative (1)
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4,066 | 3,825 | 2,148 | 1,960 | ||||||||||||
Total operating expenses
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40,345 | 34,467 | 20,237 | 17,514 | ||||||||||||
Operating income
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8,849 | 5,640 | 4,599 | 3,032 | ||||||||||||
Financial income (expenses), net
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643 | (201 | ) | 427 | (122 | ) | ||||||||||
Income before taxes on income
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9,492 | 5,439 | 5,026 | 2,910 | ||||||||||||
Taxes on income, net
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(147 | ) | (134 | ) | (82 | ) | (68 | ) | ||||||||
Equity in profit (losses) of an affiliated companies
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(252 | ) | - | 5 | (4 | ) | ||||||||||
Net income
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$ | 9,093 | $ | 5,305 | $ | 4,949 | $ | 2,838 | ||||||||
Net loss attributable to non-controlling Interest
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- | 111 | - | 20 | ||||||||||||
Net income attributable to AudioCodes
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$ | 9,093 | $ | 5,416 | $ | 4,949 | $ | 2,858 | ||||||||
Diluted net earnings per share
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$ | 0.21 | $ | 0.13 | $ | 0.12 | $ | 0.07 | ||||||||
Weighted average number of shares used in computing diluted net earnings per share (in thousands)
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42,624 | 41,008 | 42,636 | 41,036 |
Six months ended
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Three months ended
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June 30,
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June 30,
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|||||||||||||||
2011
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2010
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2011
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2010
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(Unaudited)
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(Unaudited)
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GAAP net income
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$ | 7,021 | $ | 3,787 | $ | 3,992 | $ | 2,083 | ||||||||
GAAP net income per share
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$ | 0.17 | $ | 0.10 | $ | 0.09 | $ | 0.05 | ||||||||
Cost of revenues:
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Stock-based compensation (1)
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64 | 39 | 37 | 19 | ||||||||||||
Amortization expenses (2)
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609 | 617 | 300 | 309 | ||||||||||||
673 | 656 | 337 | 328 | |||||||||||||
Research and development, net:
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Stock-based compensation (1)
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281 | 200 | 154 | 96 | ||||||||||||
Selling and marketing:
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Stock-based compensation (1)
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586 | 305 | 224 | 152 | ||||||||||||
Amortization expenses (2)
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152 | 151 | 76 | 76 | ||||||||||||
738 | 456 | 300 | 228 | |||||||||||||
General and administrative:
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Stock-based compensation (1)
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380 | 206 | 166 | 103 | ||||||||||||
Non-GAAP net income
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$ | 9,093 | $ | 5,305 | $ | 4,949 | $ | 2,838 | ||||||||
Non-GAAP Diluted net income per share
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$ | 0.21 | $ | 0.13 | $ | 0.12 | $ | 0.07 |
(1)
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Stock-based compensation expenses related to options and restricted stock units granted to employees and others.
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(2)
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Amortization of intangible assets related to the acquisitions of Nuera, Netrake and CTI Squared.
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Six months ended
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Three months ended
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|||||||||||||||
June 30,
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June 30,
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|||||||||||||||
2011
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2010
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2011
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2010
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(Unaudited)
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(Unaudited)
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(Unaudited)
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(Unaudited)
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|||||||||||||
Cash flows from operating activities:
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Net income
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$ | 7,021 | $ | 3,787 | $ | 3,992 | $ | 2,083 | ||||||||
Adjustments required to reconcile net income to net cash provided by operating activities:
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Depreciation and amortization
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1,801 | 2,024 | 879 | 991 | ||||||||||||
Amortization of marketable securities premiums and accretion of discounts, net
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196 | - | 109 | - | ||||||||||||
Equity in losses (profit) of affiliated companies and interest on loans to affiliated company
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252 | (20 | ) | (5 | ) | (7 | ) | |||||||||
Decrease in accrued severance pay, net
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(45 | ) | (264 | ) | (144 | ) | (521 | ) | ||||||||
Stock-based compensation expenses
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1,907 | 750 | 581 | 370 | ||||||||||||
Increase in accrued interest on marketable securities, bank deposits and structured notes
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(178 | ) | - | - | - | |||||||||||
Increase in trade receivables, net
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(7,244 | ) | (6,314 | ) | (5,437 | ) | (3,650 | ) | ||||||||
Decrease (increase) in other receivables and prepaid expenses
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(2,828 | ) | (1,446 | ) | 215 | 145 | ||||||||||
Increase in inventories
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(728 | ) | (1,550 | ) | (1,083 | ) | (579 | ) | ||||||||
Increase (decrease) in trade payables
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(1,296 | ) | 5,501 | (846 | ) | 656 | ||||||||||
Increase (decrease) in deferred revenues
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1,481 | 2,377 | (1,901 | ) | 1,144 | |||||||||||
Increase (decrease) in other payables and accrued expenses
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(5,231 | ) | 23 | (225 | ) | 978 | ||||||||||
Net cash provided by (used in) operating activities
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(4,892 | ) | 4,868 | (3,865 | ) | 1,610 | ||||||||||
Cash flows from investing activities:
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||||||||||||||||
Purchase of marketable securities
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(24,402 | ) | - | - | - | |||||||||||
Short-term deposits, net
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1,009 | 386 | (14 | ) | 2,708 | |||||||||||
Purchase of property and equipment
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(829 | ) | (633 | ) | (304 | ) | (304 | ) | ||||||||
Net cash used in investing activities
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(24,222 | ) | (247 | ) | (318 | ) | 2,404 |
Six months ended
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Three months ended
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|||||||||||||||
June 30,
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June 30,
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|||||||||||||||
2011
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2010
|
2011
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2010
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|||||||||||||
(Unaudited)
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(Unaudited)
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(Unaudited)
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(Unaudited)
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|||||||||||||
Cash flows from financing activities:
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Repayment of loan from bank
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(3,000 | ) | (3,000 | ) | (1,500 | ) | (1,500 | ) | ||||||||
Payment of acquisition of NSC
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(278 | ) | (74 | ) | - | (74 | ) | |||||||||
Proceeds from issuance of shares upon exercise of options, warrants and employee stock purchase plan
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1,373 | 513 | 272 | 128 | ||||||||||||
Net cash used in financing activities
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(1,905 | ) | (2,561 | ) | (1,228 | ) | (1,446 | ) | ||||||||
Increase (decrease) in cash and cash equivalents
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(31,019 | ) | 2,060 | (5,411 | ) | 2,568 | ||||||||||
Cash and cash equivalents at the beginning of the period
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50,311 | 38,969 | 24,703 | 38,461 | ||||||||||||
Cash and cash equivalents at the end of the period
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$ | 19,292 | $ | 41,029 | $ | 19,292 | $ | 41,029 |
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