6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

____________________

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15(d)-16 of the Securities Exchange Act of 1934

For the Month of August 2013

Given Imaging Ltd.

(Translation of Registrant’s name into English)

Hermon Building, New Industrial Park, Yoqneam 20692, Israel

(Address of Principal Executive Offices)

_____________________

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F x         Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes o                      No x

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes o                      No x

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934

Yes o                      No x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): ____________________

The Issuer is filing material documents not previously filed.

EXPLANATORY NOTE

On August 6, 2013, Given Imaging Ltd. issued a press release announcing results of the second quarter ended June 30, 2013.  A copy of the press release is attached to this Form 6-K as Exhibit 99.1.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	GIVEN IMAGING LTD.
Date: August 7, 2013	By:	/s/ Ido Warshavski
		Name: Ido Warshavski
		Title:   General Counsel & Corporate Secretary

EXHIBIT INDEX

The following exhibit is filed as part of this Form 6-K:

Exhibit Description

99.1 Press release dated August 6, 2013, announcing results of the second quarter ended June 30, 2013.

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

For further information contact:

Fern Lazar/David Carey

Lazar Partners Ltd.

1-646-239-6231

flazar@lazarpartners.com

dcarey@lazarpartners.com

Israel Investor Contact:

Nava Ladin

Gelbart Kahana Investor Relations

+972-3-6074717

nava@gk-biz.com

GIVEN IMAGING REPORTS SECOND QUARTER 2013 FINANCIAL RESULTS

- Record Second Quarter 2013 Revenues Increase 11% to $49.5 million –

- Company Achieves Record Sales of 62,700 PillCam SB Capsules in Second Quarter 2013 –

-  Second Quarter 2013 GAAP and Non-GAAP EPS Increase 71% and 35%, respectively, to $0.16 and $0.22 –

YOQNEAM, Israel, August 6, 2013 - Given Imaging Ltd. (NASDAQ: GIVN) today announced financial results for the second quarter ended June 30, 2013.

Revenues were $49.5 million in the second quarter of 2013, an increase of eleven percent compared to $44.5 million in the second quarter of 2012.  Gross margin on a GAAP-basis in the second quarter of 2013 was 77.5 percent, compared to 77.1 percent in the second quarter of 2012.  Gross margin on a non-GAAP-basis in the second quarter of 2013 was 78.3 percent, compared to 78.2 percent in the second quarter of 2012.

On a GAAP-basis, operating profit increased 60 percent to $5.4 million in the second quarter of 2013, compared to $3.4 million in the second quarter of 2012. Non-GAAP operating profit was $7.4 million in the second quarter of 2013, up 35% from $5.5 million in the same period in 2012.

On a GAAP-basis, net income for the second quarter of 2013 increased 71 percent to $5.2 million, or $0.16 per share, compared to net income of $3.0 million, or $0.10 per share, in the same period in 2012.  On a non-GAAP-basis, net income for the second quarter of 2013 was $6.9 million or $0.22 per share on a fully diluted basis, up 35% from net income of $4.9 million, or $0.16 per share on a fully diluted basis in the second quarter of 2012.

A reconciliation of GAAP results to non-GAAP results is attached.

Cash generated from operating activities in the second quarter of 2013 was $8.8 million. Cash and cash equivalents, short-term investments and marketable securities on June 30, 2013 totaled $130.3 million.

“We are pleased to report that we achieved an eleven percent increase in second quarter revenue, reflecting solid performance in all of our operating regions, accompanied by a solid increase in operating margins and strong operating cash flow,” said Homi Shamir, president and CEO, Given Imaging Ltd.  “Looking ahead, we expect the recent and significant regulatory milestone – the clearance of PillCam COLON in Japan, as well as the pending FDA decisions regarding PillCam SB3 and PillCam COLON – to enable us to accelerate growth in 2014 and beyond.”

Second Quarter 2013 Revenue Analysis

Revenues in the Americas region in the second quarter of 2013 increased eight percent to $30.7 million from $28.4 million in the same period in 2012.  The increase is attributable to a 23 percent increase in sales of functional GI diagnostics products (“GIFD”) including the Bravo pH Monitoring System, Digitrapper pH-Z, ManoScan and SmartPill products in the U.S.  Revenues in the EMEA region increased 18 percent to $12.5 million compared to $10.6 million in the same period in 2012.  APAC revenues increased by 15 percent to $6.3 million, compared to $5.4 million in the same period in 2012.

Worldwide PillCam SB sales increased six percent to 62,700 capsules in the second quarter of 2013, compared to 59,200 capsules in the same period in 2012. PillCam SB sales in the Americas region decreased by two percent to 36,000 capsules in the second quarter of 2013, compared to 36,500 capsules in the second quarter of 2012.  PillCam SB sales in the EMEA region increased by 13 percent to 17,500 capsules, compared to 15,500 capsules in the second quarter of 2012, while PillCam SB sales in the APAC region increased by 30 percent to 9,300 capsules, compared to 7,100 capsules in the same period in 2012.

Worldwide sales of GIFD products increased by 22 percent to $15.2 million in the second quarter of 2013 compared to $12.4 million in the same period in 2012.  Sales of GIFD products the second quarter of 2013 included $0.7 million of sales of SmartPill products. SmartPill was acquired by the Company in the last quarter of 2012. In the Americas region, functional GI diagnostics product revenue increased by 23 percent in the second quarter of 2013 to $12.2 million compared to $9.9 million in the same period in 2012. Functional GI diagnostics revenue in the EMEA region increased by 36 percent to $2.2 million, while revenue in the APAC region was $0.8 million, a decrease of 11 percent compared to the same quarter last year.

Supplemental second quarter data can be found at www.givenimaging.com in the Investor Relations section.

Six Month Financial Results

For the six month period ended June 30, 2013, revenues increased by four percent to $90.1 million compared to $86.3 million in the same period last year.  Revenues in the Americas region in the first half of 2013 decreased by one percent to $54.6 million from $55.1 million in the same period last year.  Revenues in the EMEA region increased by 13 percent to $24.2 million compared to $21.4 million in the same period last year.  APAC revenues increased by 17 percent to $11.3 million, compared to $9.7 million in the same period in 2012.

2

Worldwide PillCam SB sales increased by one percent to 117,300 capsules in the first half of 2013, compared to 115,600 capsules in the same period last year.  PillCam SB sales in the Americas region were approximately 66,800 capsules, a decrease of five percent compared to 70,200 capsules that were sold in the first half of 2012.  PillCam SB sales in the EMEA region increased by eight percent to 33,000 capsules, compared to 30,600 capsules in the first half of 2012, while PillCam SB sales in the APAC region increased by 18 percent to 17,500 capsules, compared to 14,800 capsules in the same period in 2012.

Worldwide sales of Given Imaging’s GIFD products increased by five percent to $26.2 million in the first half of 2013 compared to $25.0 million in the same period last year. Sales of GIFD products in the first half of 2013 included $1.3 million of sales of SmartPill products.  In the Americas region, GIFD products revenue increased by three percent in the first half of 2013 to $20.5 million compared to $19.9 million in the same period last year.  Functional GI diagnostics products revenue in the EMEA region increased 29 percent to $4.4 million, while revenue in the APAC region decreased by 26 percent to $1.3 million.

Gross margin on a GAAP basis in the first six months of 2013 was 77.3 percent, compared to 76.4 percent in the same period in 2012.  Gross margin on a non-GAAP basis in the first six months of 2013 was 78.2 percent, compared to 77.2 percent in the same period in 2012.

On a GAAP basis, operating profit was $5.5 million in the first six months of 2013, compared to $3.8 million in the same period in 2012. Non-GAAP operating profit was $9.4 million, compared to $7.6 million in the same period in 2012.  On a GAAP basis, net income for the first six months of 2013 increased 53 percent to $5.0 million, or $0.16 per share, compared to $3.2 million, or $0.10 per share, in the same period last year.  On a non-GAAP basis, net income for the first six months of 2013 increased 24 percent to $8.4 million, or $0.26 per share on a fully diluted basis, compared to $6.7 million, or $0.21 per share on a fully diluted basis, in the same period in 2012.

Recent Developments

· PillCam COLON Clearance in Japan

PillCam COLON recently received marketing clearance by Japan’s Pharmaceuticals & Medical Devices Agency.  PillCam COLON was cleared for diagnosis of colonic disease when colonoscopy is required but difficult to conduct, including patients unwilling or unable to undergo colonoscopy.  Reimbursement is expected to become effective during the first half of 2014, subject to government discretion.  The Company estimates that PillCam COLON will help in enhancing adherence to screening guidelines in Japan for over 1,000,000 potential patients.

Conference Call / Webcast Information

Given Imaging will host a conference call on Wednesday, August 7, 2013 at 9:00am ET, 4:00pm Israel time to discuss second quarter 2013 financial results. To participate in the teleconference, please dial the following numbers fifteen minutes before the call is scheduled to begin:  U.S. and Canada, 888-452-4023; Israel, 1-80-924-5906. Callers in other countries should dial 719-457-2664. The passcode is 8996103.  The call will also be webcast live at www.givenimaging.com.

A replay of the call will be available for two weeks on the company's website, or until August 21, 2013, by dialing 888-203-1112. Callers in Israel should dial 1 80 924 6038. Callers outside of the U.S. and Israel should dial 719-457-0820. The replay participant code is 8996103.

3

Use of Non-GAAP Measures

This press release provides financial measures for net income and basic and diluted earnings per share that exclude certain items and are therefore not calculated in accordance with generally accepted accounting principles (GAAP). Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance that enhances management's and investors' ability to evaluate the Company's net income and earnings per share and to compare it with historical net income and earnings per share.

The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management uses both GAAP and non-GAAP measures when evaluating the business internally and therefore felt it is important to make these non-GAAP adjustments available to investors.

About Given Imaging Ltd.

Since pioneering the field of capsule endoscopy in 2001, Given Imaging has become a world leader in GI medical devices, offering health care providers a range of innovative options for visualizing, diagnosing and monitoring the digestive system. The company offers a broad product portfolio including PillCam® capsule endoscope for the small bowel, esophagus and colon. The company also offers industry-leading GI functional diagnostic solutions including ManoScan™ high-resolution manometry, Bravo® capsule-based pH monitoring, Digitrapper® pH-Z impedance, and the SmartPill® GI monitoring systems. Given Imaging is committed to delivering breakthrough innovations to the GI community and supporting its ongoing clinical needs. Given Imaging's headquarters are located in Yoqneam, Israel, with operating subsidiaries in the United States, Germany, France, Japan, Australia, Vietnam, Hong Kong and Brazil. For more information, please visit www.givenimaging.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, projections about our business and our future revenues, expenses and profitability. Forward-looking statements may be, but are not necessarily, identified by the use of forward-looking terminology such as "may," "anticipates," "estimates," "expects," "intends," "plans," "believes," and words and terms of similar substance. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual events, results, performance, circumstances or achievements of the Company to be materially different from any future events, results, performance, circumstances or achievements expressed or implied by such forward-looking statements. Such forward-looking statements include statements relating to the Company exploring strategic alternatives and considering possible strategic transactions involving the Company. Factors that could cause actual events, results, performance, circumstances or achievements to differ from such forward-looking statements include, but are not limited to, the following: (1) our ability to develop and bring to market new products, (2) our ability to successfully complete any necessary or required clinical studies with our products, (3) our ability to receive regulatory clearance or approval to market our products or changes in regulatory environment, (4) our success in implementing our sales, marketing and manufacturing plans, (5) the level of adoption of our products by medical practitioners, (6) the emergence of other products that may make our products obsolete, (7) lack of an appropriate bowel preparation materials to be used with our PillCam COLON capsule, (8) protection and validity of patents and other intellectual property rights, (9) the impact of currency exchange rates, (10) the effect of competition by other companies, (11) the outcome of significant litigation, (12) our ability to obtain reimbursement for our product from government and commercial payors, (13) quarterly variations in operating results, (14) the possibility of armed conflict or civil or military unrest in Israel, (15) the impact of global economic conditions, (16) our ability to successfully integrate acquired businesses, (17) changes and reforms in applicable healthcare laws and regulations, (18) quality issues and adverse events related to our products, such as capsule retention, aspiration and failure to attach or detach, bleeding or perforation that could require us to recall products and impact our sales and net income, and (19) other risks and factors disclosed in our filings with the U.S. Securities and Exchange Commission, including, but not limited to, risks and factors identified under such headings as "Risk Factors," "Cautionary Language Regarding Forward-Looking Statements" and "Operating Results and Financial Review and Prospects" in the Company's Annual Report on Form 20-F for the year ended December 31, 2012. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except to the extent expressly required under applicable law, the Company undertakes no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events.

# # #

Financial Tables Follow

4

Given Imaging Ltd. and its Consolidated Subsidiaries

Excluded Items

For the Three Months Ended June 30, 2012 and 2013

(Unaudited, dollars in thousands)

			Research		Selling		General		Tax
	Gross		And		And		And		Expense
	Profit		Development		Marketing		Admin		(Benefit)			Total
Three month period
ended June 30, 2013
Compensation expenses	$	-	$	229	$	519	$	745	$	-		$	1,493
Sierra & SmartPill PPA		399		-		93		-		(292	)		200
Total	$	399	$	229	$	612	$	745	$	(292	)	$	1,693
Three month period
ended June 30, 2012
Compensation expenses	$	-	$	192	$	509	$	856	$	-		$	1,557
Sierra PPA		459		-		81		-		(217	)		323
Total	$	459	$	192	$	590	$	856	$	(217	)	$	1,880

Given Imaging Ltd. and its Consolidated Subsidiaries

Excluded Items

For the Six Months Ended June 30, 2012 and 2013

(Unaudited, dollars in thousands)

			Research		Selling		General		Tax
	Gross		And		And		And		Expense
	Profit		Development		Marketing		Admin		(Benefit)			Total
Six month period
ended June 30, 2013
Compensation expenses	$	-	$	425	$	937	$	1,527	$	-		$	2,889
Sierra PPA		798		-		186		-		(463	)		521
Total	$	798	$	425	$	1,123	$	1,527	$	(463	)	$	3,410
Six month period
ended June 30, 2012
Compensation expenses	$	-	$	350	$	738	$	1,898	$	-		$	2,986
Sierra PPA		696		-		162		-		(344	)		514
Total	$	696	$	350	$	900	$	1,898	$	(344	)	$	3,500

5

Given Imaging Ltd. and its Consolidated Subsidiaries

Reconciliation of GAAP results to non-GAAP results

For the three months ended June 30, 2012 and 2013

Condensed, in thousands except share and per share data

			Q2/13							Q2/12
			Specified			Non				Specified			Non
	GAAP		Items (*)			GAAP		GAAP		Items (*)			GAAP
Gross profit	$	38,347	$	399		$	38,746	$	34,333	$	459		$	34,792
Research and development, net		6,130		(229	)		5,901		6,601		(192	)		6,409
Sales and marketing		20,785		(612	)		20,173		18,729		(590	)		18,139
General and administrative		5,894		(745	)		5,149		5,568		(856	)		4,712
Income tax expense		174		292			466		360		217			577
Net income attributable to shareholders	$	5,195	$	1,693		$	6,888	$	3,043	$	1,880		$	4,923
Diluted EPS attributable to shareholders	$	0.16	$	0.06		$	0.22	$	0.10	$	0.06		$	0.16

Given Imaging Ltd. and its Consolidated Subsidiaries
Reconciliation of GAAP results to non-GAAP results
For the six months ended June 30, 2012 and 2013
Condensed, in thousands except share and per share data
			YTD 13							YTD 12
			Specified			Non				Specified			Non
	GAAP		Items (*)			GAAP		GAAP		Items (*)			GAAP
Gross profit	$	69,657	$	798		$	70,455	$	65,979	$	696		$	66,675
Research and development, net		12,101		(425	)		11,676		13,345		(350	)		12,995
Sales and marketing		40,416		(1123	)		39,293		37,492		(900	)		36,592
General and administrative		11,455		(1527	)		9,928		11,205		(1898	)		9,307
Income tax expense		486		463			949		984		344			1328
Net income attributable to shareholders	$	4,974	$	3,410		$	8,384	$	3,244	$	3,500		$	6,744
Diluted EPS attributable to shareholders	$	0.16	$	0.10		$	0.26	$	0.10	$	0.11		$	0.21

6

Given Imaging Ltd. and its Consolidated Subsidiaries

Interim Consolidated Balance Sheets

In thousands except share data

(Unaudited)

	June 30		June 30		December 31
	2013		2012		2012
Assets
Current assets
Cash and cash equivalents	$	30,633	$	27,091	$	35,442
Short-term investments		72,218		44,549		58,446
Accounts receivable:
Trade		31,148		29,064		31,279
Other		4,685		5,413		4,654
Inventories		23,650		24,329		22,591
Advances to suppliers		856		1,799		1,349
Deferred tax assets		2,851		3,389		2,646
Other current assets		3,266		2,253		2,689
Total current assets		169,307		137,887		159,096
Deposits		844		1,030		924
Assets held for employees’ severance payments		8,754		7,033		7,974
Long-term investments		27,407		39,656		30,188
Non-current Inventory		5,046		4,202		6,150
Fixed assets, less accumulated depreciation		11,216		12,628		12,335
Intangible assets, less accumulated amortization		28,980		27,828		30,705
Goodwill		26,942		24,089		26,942
Total Assets	$	278,496	$	254,353	$	274,314

7

Given Imaging Ltd. and its Consolidated Subsidiaries

Interim Consolidated Balance Sheets

In thousands except share data

(Unaudited)

	June 30		June 30			December 31
	2013		2012			2012
Liabilities and equity
Current liabilities
Current installments of obligation under capital lease	$	-	$	62		$	38
Accounts payable:
Trade		7,632		8,413			8,756
Other		22,472		25,841			27,091
Deferred income		1,175		497			929
Total current liabilities		31,279		34,813			36,814
Long-term liabilities
Obligation under capital lease, net		68		108			78
Liability in respect of employees’ severance payments		9,503		7,795			8,761
Contingent consideration in respect of business combination		1,153		-			1,038
Deferred tax liabilities		4,212		5,018			4,675
Total long-term liabilities		14,936		12,921			14,552
Total liabilities		46,215		47,734			51,366
Equity
Ordinary Shares, NIS 0.05 par value each (90,000,000
shares authorized; 31,567,103 and 31,080,876 shares
issued and fully paid as of June 30, 2013 and
December 31, 2012, respectively)		372		366			367
Additional paid-in capital		223,666		214,742			219,103
Capital reserve		1,591		1,591			1,591
Accumulated other comprehensive income (loss)		57		(595	)		266
Retained earnings (accumulated deficit)		6,595		(9,485	)		1,621
Total Equity		232,281		206,619			222,948
Total liabilities and equity	$	278,496	$	254,353		$	274,314

8

Given Imaging Ltd. and its Consolidated Subsidiaries

Interim Consolidated Statements of Income and Comprehensive Income

In thousands except share and per share data

(Unaudited)

	Six-month period ended						Three-month period ended						Year ended
	June 30						June 30						December 31
	2013			2012			2013			2012			2012
Revenues	$	90,084		$	86,351			49,464		$	44,512		$	180,501
Cost of revenues		(20,427	)		(20,372	)		(11,117	)		(10,179	)		(42,971	)
Gross profit		69,657			65,979			38,347			34,333			137,530
Operating expenses
Research and development, gross		(12,300	)		(14,130	)		(6,199	)		(6,974	)		(25,627	)
Government grants		199			785			69			373			1,439
Research and development, net		(12,101	)		(13,345	)		(6,130	)		(6,601	)		(24,188	)
Sales and marketing		(40,416	)		(37,492	)		(20,785	)		(18,729	)		(76,272	)
General and administrative		(11,455	)		(11,205	)		(5,894	)		(5,568	)		(22,746	)
Other, net		(186	)		(170	)		(138	)		(69	)		(455	)
Total operating expenses		(64,158	)		(62,212	)		(32,947	)		(30,967	)		(123,661	)
Operating profit		5,499			3,767			5,400			3,366			13,869
Financing income (expense), net		(39	)		368			(31	)		37			847
Profit before taxes
on income		5,460			4,135			5,369			3,403			14,716
Income tax expense		(486	)		(984	)		(174	)		(360	)		(459	)
Net profit		4,974			3,151			5,195			3,043			14,257
Net loss attributable to
non-controlling interest		-			93			-			-			93
Net profit attributable to
shareholders	$	4,974		$	3,244		$	5,195		$	3,043		$	14,350
Net change in respect of
available for sale securities		(209	)		290			(214	)		(140	)		1,151
Total comprehensive profit
attributable to shareholders		4,765			3,534			4,981			2,903		$	15,501
Total comprehensive
loss attributable to
non-controlling interest		-			(93	)		-			-			(93	)
Total comprehensive profit		4,765			3,441			4,981			2,903		$	15,408
Earnings  per share
Basic Earnings attributable to
shareholders per Ordinary Share	$	0.16		$	0.11		$	0.17		$	0.10		$	0.47
Diluted Earnings attributable to
shareholders per Ordinary Share	$	0.16		$	0.10		$	0.16		$	0.10		$	0.45
Weighted average number
of Ordinary Shares used to
compute basic Earnings
per Ordinary share		31,342,441			30,696,679			31,457,732			30,814,268			30,853,581
Weighted average number
of Ordinary Shares used to
compute dilute Earnings
per Ordinary share		31,897,495			31,511,329			31,933,651			31,544,729			31,563,208

9

Given Imaging Ltd. and its Consolidated Subsidiaries

Consolidated Statements of Cash Flows

In thousands

(Unaudited)

	Six-month period ended						Three-month period ended						Year ended
	June 30						June 30						December 31
	2013			2012			2013			2012			2012
Cash flows from operating activities:
Net profit	$	4,974		$	3,151		$	5,195		$	3,043		$	14,257
Adjustments required to reconcile
net profit to net cash provided by
operating activities:
Depreciation and amortization		4,375			4,211			2,177			2,215			8,597
Change in deferred taxes		(668	)		(2,195	)		(352	)		(1,188	)		(1,795	)
Stock based compensation		2,889			2,986			1,493			1,557			6,158
Loss from disposal of fixed assets
and intangible assets		225			176			138			74			484
Unrealized interest on contingent
consideration		115			-			40			-			-
Decrease (increase) in accounts
receivable – trade		131			3,192			(3,903	)		372			977
Decrease (increase) in accounts
receivable – other		(7	)		469			179			(886	)		1,252
Increase in other current assets		(577	)		(880	)		(497	)		(28	)		(1,316	)
Decrease (increase) in advances
to suppliers		493			(592	)		284			(420	)		(142	)
Decrease (increase) in inventories		45			(684	)		662			(212	)		(299	)
Increase (decrease) in accounts payable		(5,826	)		(2,181	)		3,134			2,414			(691	)
Increase (decrease) in deferred income		246			(24	)		196			(36	)		408
Other		197			(46	)		88			4			(62	)
Net cash provided by operating
activities		6,612			7,583			8,834			6,909			27,828
Cash flows from investing
activities:
Purchase of fixed assets and
intangible assets		(1,794	)		(3,317	)		(782	)		(1,837	)		(7,005	)
Other long term assets		9			(610	)		8			(11	)		(538	)
Acquisition of business, net
of cash acquired (1)		-			-			-			-			(6,000	)
Changes in short term deposits, net		(2,351	)		16,419			(9,851	)		(4,198	)		4,968
Proceeds from sales and maturity
of marketable securities		246			4,050			-			2,050			13,343
Investments in marketable securities		(9,293	)		(23,460	)		-			(11,138	)		(24,827	)
Net cash used in investing activities		(13,183	)		(6,918	)		(10,625	)		(15,134	)		(20,059	)

10

Given Imaging Ltd. and its Consolidated Subsidiaries

Consolidated Statements of Cash Flows

In thousands

(Unaudited)

	Six-month period ended						Three-month period ended						Year ended
	June 30						June 30						December 31
	2013			2012			2013			2012			2012
Cash flows from financing activities:
Principal payments on capital lease obligation		-			(83	)		-			(42	)		(129	)
Proceeds from the issuance of Ordinary Shares		1,679			2,925			696			1,588			4,115
Purchase of shares from a non-controlling
shareholder in a subsidiary		-			(658	)		-			-			(658	)
Net cash provided by financing activities		1,679			2,184			696			1,546			3,328
Effect of exchange rate changes on
cash and cash equivalents		83			(43	)		17			(89	)		60
Increase (decrease) in cash and cash
equivalents		(4,809	)		2,806			(1,078	)		(6,768	)		11,157
Cash and cash equivalents at beginning
of period		35,442			24,285			31,711			33,859			24,285
Cash and cash equivalents at end of period	$	30,633		$	27,091		$	30,633		$	27,091		$	35,442
Supplementary cash flow information
Income taxes paid	$	1,988		$	1,157		$	748		$	1,035		$	2,883

11