exhibit_99-1.htm

Exhibit 99.1

FOR IMMEDIATE RELEASE

For further information contact:

Fern Lazar/David Carey

Lazar Partners Ltd.

1-212-867-1768

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 THIRD QUARTER 2013 FINANCIAL RESULTS

- Third Quarter 2013 Revenues Increase by 10% to a Record $50 Million –

- PillCam SB Capsules Sales Climb to a Record 63,500 in the Quarter –

- Third Quarter 2013 GAAP EPS Increases 5% to $0.20, Non-GAAP EPS Unchanged at $0.25 –

- Record Third Quarter 2013 GAAP and Non-GAAP Net Income $6.5 Million and $8.2 Million, Respectively -

YOQNEAM, Israel, November 5, 2013 - Given Imaging Ltd. (NASDAQ: GIVN) today announced financial results for the third quarter ended September 30, 2013.

Revenues were $50.0 million in the third quarter of 2013, an increase of 10 percent compared to $45.4 million in the third quarter of 2012. Gross margin on a GAAP-basis in the third quarter of 2013 was 77.5 percent, unchanged from the third quarter of 2012. Gross margin on a non-GAAP-basis in the third quarter of 2013 was 78.3 percent, also unchanged from third quarter of 2012.

On a GAAP-basis, operating profit was $6.4 million in the third quarter of 2013, compared to $6.5 million in the third quarter of 2012. Non-GAAP operating profit was $8.3 million in the third quarter of 2013, compared to $8.5 million in the same period in 2012.

On a GAAP-basis, net income for the third quarter of 2013 increased eight percent to $6.5 million, or $0.20 per share, compared to net income of $6.0 million, or $0.19 per share, in the same period in 2012. On a non-GAAP-basis, net income for the third quarter of 2013 was $8.2 million or $0.25 per share on a fully diluted basis, up 4% from net income of $7.9 million, or $0.25 per share on a fully diluted basis in the third quarter of 2012.

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

Cash generated from operating activities in the third quarter of 2013 was $11.7 million. Cash and cash equivalents, short-term investments and marketable securities on September 30, 2013 totaled $142.4 million.

“We are very pleased that we achieved quarterly revenue of $50 million for the first time ever, in addition to solid earnings and cash flow this quarter,” said Homi Shamir, president and CEO, Given Imaging Ltd. “2013 has proven to be a pivotal year for Given Imaging both financially as well as in terms of our progress in achieving several critical milestones. PillCam SB3 was cleared in the U.S., as well as Japan where we also obtained approval for PillCam COLON. The momentum should continue with our plans to launch PillCam COLON in Japan in the first half of 2014 upon obtaining reimbursement, and obtain FDA clearance for PillCam COLON, which we expect this quarter. These achievements should have a positive impact on 2014 sales.”

Third Quarter 2013 Revenue Analysis

Revenues in the Americas region in the third quarter of 2013 increased nine percent to $31.1 million from $28.6 million in the same period in 2012. Revenues in the EMEA region increased 26 percent to $12.7 million compared to $10.1 million in the same period in 2012. APAC revenues decreased by six percent to $6.2 million, compared to $6.6 million in the same period in 2012 mainly due to the negative impact of the devaluation of the Japanese Yen against the U.S. dollar.

Worldwide PillCam SB sales increased by nine percent to 63,500 capsules in the third quarter of 2013, compared to 58,200 capsules in the same period in 2012. PillCam SB sales in the Americas region increased by seven percent to 37,500 capsules in the third quarter of 2013, compared to 35,000 capsules in the third quarter of 2012. PillCam SB sales in the EMEA region increased by 17 percent to 16,600 capsules, compared to 14,100 capsules in the third quarter of 2012, while PillCam SB sales in the APAC region increased by two percent to 9,400 capsules, compared to 9,200 capsules in the same period in 2012.

Worldwide sales of functional GI diagnostics (GIFD) products increased by 15 percent to $15.3 million in the third quarter of 2013 compared to $13.2 million in the same period in 2012. Sales of GIFD products the third quarter of 2013 included $0.7 million of sales of SmartPill products. SmartPill was acquired by the Company in the fourth quarter of 2012. In the Americas region, functional GI diagnostics product revenue increased by twelve percent in the third quarter of 2013 to $12.1 million compared to $10.8 million in the same period in 2012. Functional GI diagnostics revenue in the EMEA region increased by 36 percent to $2.4 million, while revenue in the APAC region was $0.8 million, an increase of 23 percent compared to the same quarter last year.

Operating expenses increased by 13% to $32.4 million, and by 14% to $30.8 on a GAAP and non-GAAP basis, respectively. The increase is mainly due to accelerated investment in sales and marketing activities related to the recent launch of PillCam SB3 capsule and PillCam Recorder DR3 and in anticipation of the launch of PillCam COLON capsule in several markets, particularly in Japan. In addition, the U.S. medical device tax also affected 2013 third quarter results compared to the same quarter of last year. The adverse effect on earnings of these accelerated investments, medical device tax and currency exchange rates was approximately $0.03 per share.

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

Nine Month Financial Results

For the nine month period ended September 30, 2013, revenues increased by six percent to $140.1 million compared to $131.8 million in the same period last year. Revenues in the Americas region in the first nine months of 2013 increased by two percent to $85.7 million from $83.9 million in the same period last year. Revenues in the EMEA region increased by 17 percent to $36.9 million compared to $31.6 million in the same period last year. APAC revenues increased by seven percent to $17.5 million, compared to $16.3 million in the same period in 2012.

Worldwide PillCam SB sales increased by four percent to 180,900 capsules in the first nine months of 2013, compared to 173,900 capsules in the same period last year. PillCam SB sales in the Americas region were approximately 104,300 capsules, a decrease of one percent compared to 105,200 capsules that were sold in the first nine months of 2012. PillCam SB sales in the EMEA region increased by 11 percent to 49,600 capsules, compared to 44,700 capsules in the first nine months of 2012, while PillCam SB sales in the APAC region increased by 12 percent to 27,000 capsules, compared to 24,000 capsules in the same period in 2012.

Worldwide sales of Given Imaging’s GIFD products increased by nine percent to $41.5 million in the first nine months of 2013 compared to $38.2 million in the same period last year. Sales of GIFD products in the first nine months of 2013 included $2.0 million of sales of SmartPill products. In the Americas region, GIFD products revenue increased by six percent in the first nine months of 2013 to $32.6 million compared to $30.7 million in the same period last year. Functional GI diagnostics products revenue in the EMEA region increased 31 percent to $6.9 million, while revenue in the APAC region decreased by six percent to $2.1 million.

Gross margin on a GAAP basis in the first nine months of 2013 was 77.4 percent, compared to 76.8 percent in the same period in 2012. Gross margin on a non-GAAP basis in the first nine months of 2013 was 78.2 percent, compared to 77.6 percent in the same period in 2012.

On a GAAP basis, operating profit was $11.9 million in the first nine months of 2013, compared to $10.2 million in the same period in 2012. Non-GAAP operating profit was $17.7 million, compared to $16.1 million in the same period in 2012. On a GAAP basis, net income for the first nine months of 2013 increased 23 percent to $11.4 million, or $0.36 per share, compared to $9.3 million, or $0.29 per share, in the same period last year. On a non-GAAP basis, net income for the first nine months of 2013 increased 11 percent to $16.6 million, or $0.52 per share on a fully diluted basis, compared to $14.9 million, or $0.48 per share on a fully diluted basis, in the same period in 2012.

Release of “Trapped Profits”

In November 2013, the Company decided to take advantage of a special program initiated by the Israeli Tax Authority that allows Israeli companies to release "trapped profits". The Company will now pay a reduced tax rate of 10 per cent (instead of 25 per cent) on approximately $54 million of profits for which taxes had not been previously provided. As a result, the Company will record in the fourth quarter a one-time tax expense of approximately $5.4 million. The Company intends to review possible avenues for the use of the trapped profits in a manner that is in the best interests of the Company and its shareholders.

2013 Guidance

Based on financial results to date and current exchange rates, the Company expects to be at the lower end of its previously-provided annual guidance.

Recent Developments:

PillCam® SB3 Clearance in the U.S. and Japan: The next generation PillCam SB3 recently received marketing clearance by the U.S. Food and Drug Administration and Japan’s Pharmaceuticals & Medical Devices Agency. PillCam SB3 is now available in the U.S. and the company plans to begin selling this product in Japan in 2014.

Conference Call / Webcast Information

Given Imaging will host a conference call on Wednesday, November 6, 2013 at 9:00am ET, 4:00pm Israel time to discuss third 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, 888-428-9490; Israel, 1-80-924-5906. Callers in other countries should dial 719-457-2627. 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 November 20, 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 5153959.

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 monitoring, and SmartPill® motility 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 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

Reconciliation of GAAP and Non-GAAP Financial Measures

UNAUDITED

(In millions except per share data)

	Three Months Ended September 30, 2013
			Cost of								Research			Selling			General
	Net		Goods			gross		Gross			and			and			and			Other		Operating		Operating
	revenues		sold			profit		margin			development			marketing			Administrative			expense		profit		margin
Reported (GAAP)	$	50,023	$	11,267		$	38,756		77.5	%	$	6,096		$	20,542		$	5,597		$	121	$	6,400		12.8	%
Excluded items:
Equity related compensation expenses (FAS123R)		-		-			-					(234	)		(607	)		(610	)		-		1,451
Amortization of purchase price allocation		-		(399	)		-					-			(93	)		-			-		492
After considering items (Non-GAAP)	$	50,023	$	10,868		$	39,155		78.3	%	$	5,862		$	19,842		$	4,987		$	121	$	8,343		16.7	%

	Three Months Ended September 30, 2013
			Profit				Net profit
			before		Income		attributable		Diluted
	Finance		taxes		tax		to		earnings
	income		on income		expense		shareholders		per share
Reported (GAAP)	$	72	$	6,472	$	21	$	6,451	$	0.20
Excluded items:
Equity related compensation expenses (FAS123R)		-		1,451		-		1,451		-
Amortization of purchase price allocation		-		492		167		325		-
After considering items (Non-GAAP)	$	72	$	8,415	$	188	$	8,227	$	0.25

	Three Months Ended September 30, 2012
			Cost of								Research			Selling			General
	Net		Goods			gross		Gross			and			and			and			Other			Operating		Operating
	revenues		sold			profit		margin			development			marketing			Administrative			expense			profit		margin
Reported (GAAP)	$	45,403	$	10,199		$	35,204		77.5	%	$	5,185		$	17,939		$	5,634		$	(7	)	$	6,453		14.2	%
Excluded items:
Equity related compensation expenses (FAS123R)		-		-			-					(194	)		(696	)		(741	)		-			1,631
Amortization of purchase price allocation		-		(348	)		-					-			(81	)					-			429
After considering items (Non-GAAP)	$	45,403	$	9,851		$	35,552		78.3	%	$	4,991		$	17,162		$	4,893		$	(7	)	$	8,513		18.7	%

	Three Months Ended September 30, 2012
			Profit				Net profit
			before		Income		attributable		Diluted
	Finance		taxes		tax		to		earnings
	income		on income		expense		shareholders		per share
Reported (GAAP)	$	215	$	6,668	$	662	$	6,006	$	0.19
Excluded items:
Equity related compensation expenses (FAS123R)		-		1,631		-		1,631		-
Amortization of purchase price allocation		-		429		170		259		-
After considering items (Non-GAAP)	$	215	$	8,728	$	832	$	7,896	$	0.25

Reconciliation of GAAP and Non-GAAP Financial Measures

UNAUDITED

(In millions except per share data)

	Nine Months Ended September 30, 2013
			Cost of								Research			Selling			General
	Net		Goods			gross		Gross			and			and			and			Other		Operating		Operating
	revenues		sold			profit		margin			development			marketing			Administrative			expense		profit		margin
Reported (GAAP)	$	140,107	$	31,694		$	108,413		77.4	%	$	18,197		$	60,958		$	17,052		$	307	$	11,899		8.5	%
Excluded items:
Equity related compensation expenses (FAS123R)		-		-			-					(659	)		(1,544	)		(2,137	)		-		4,340
Amortization of purchase price allocation		-		(1,197	)		-					-			(279	)		-			-		1,476
After considering items (Non-GAAP)	$	140,107	$	30,497		$	109,610		78.2	%	$	17,538		$	59,135		$	14,915		$	307	$	17,715		12.6	%

	Nine Months Ended September 30, 2013
			Profit				Net profit
			before		Income		attributable		Diluted
	Finance		taxes		tax		to		earnings
	income		on income		expense		shareholders		per share
Reported (GAAP)	$	33	$	11,932	$	507	$	11,425	$	0.36
Excluded items:
Equity related compensation expenses (FAS123R)		-		4,340		-		4,340		-
Amortization of purchase price allocation		-		1,476		630		846		-
After considering items (Non-GAAP)	$	33	$	17,748	$	1,137	$	16,611	$	0.52

	Nine Months Ended September 30, 2012
			Cost of								Research			Selling			General
	Net		Goods			gross		Gross			and			and			and			Other		Operating		Operating
	revenues		sold			profit		margin			development			marketing			Administrative			expense		profit		margin
Reported (GAAP)	$	131,754	$	30,571		$	101,183		76.8	%	$	18,530		$	55,431		$	16,839		$	163	$	10,220		7.8	%
Excluded items:
Equity related compensation expenses (FAS123R)		-		-			-					(544	)		(1,434	)		(2,639	)		-		4,617
Amortization of purchase price allocation		-		(1,044	)		-					-			(243	)					-		1,287
After considering items (Non-GAAP)	$	131,754	$	29,527		$	102,227		77.6	%	$	17,986		$	53,754		$	14,200		$	163	$	16,124		12.2	%

	Nine Months Ended September 30, 2012
			Profit				Net profit
			before		Income		attributable		Diluted
	Finance		taxes		tax		to		earnings
	income		on income		expense		shareholders		per share
Reported (GAAP)	$	583	$	10,803	$	1,646	$	9,250	$	0.29
Excluded items:
Equity related compensation expenses (FAS123R)		-		4,617		-		4,617		-
Amortization of purchase price allocation		-		1,287		514		773		-
After considering items (Non-GAAP)	$	583	$	16,707	$	2,160	$	14,640	$	0.46

Given Imaging Ltd. and its Consolidated Subsidiaries

Interim Consolidated Balance Sheets

In thousands except share data

(Unaudited)

	September 30		September 30		December 31
	2013		2012		2012
Assets

Current assets
Cash and cash equivalents	$	30,784	$	42,350	$	35,442
Short-term investments		88,775		37,162		58,446
Accounts receivable:
Trade		32,104		30,229		31,279
Other		6,922		4,596		4,654
Inventories		24,770		24,988		22,591
Advances to suppliers		1,281		1,416		1,349
Deferred tax assets		2,663		3,613		2,646
Other current assets		3,756		2,630		2,689

Total current assets		191,055		146,984		159,096

Deposits		847		1,046		924

Assets held for employees’ severance payments		9,341		7,264		7,974

Long-term investments		22,820		39,627		30,188

Non-current Inventory		4,854		4,654		6,150

Fixed assets, less accumulated depreciation		11,036		12,516		12,335

Intangible assets, less accumulated amortization		27,930		28,308		30,705

Goodwill		26,942		24,089		26,942

Total Assets	$	294,825	$	264,488	$	274,314

Given Imaging Ltd. and its Consolidated Subsidiaries

Interim Consolidated Balance Sheets

In thousands except share data

(Unaudited)

	September 30		September 30			December 31
	2013		2012			2012
Liabilities and equity

Current liabilities

Current installments of obligation under capital lease	$	-	$	44		$	38
Accounts payable:
Trade		8,194		8,151			8,756
Other		25,703		27,295			27,091
Deferred income		1,218		559			929
Total current liabilities		35,115		36,049			36,814

Long-term liabilities
Obligation under capital lease, net		69		86			78
Liability in respect of employees’ severance payments		10,235		8,024			8,761
Contingent consideration in respect of business combination		1,195		-			1,038
Deferred tax liabilities		4,045		4,848			4,675
Total long-term liabilities		15,544		12,958			14,552
Total liabilities		50,659		49,007			51,366

Equity
Ordinary Shares, NIS 0.05 par value each (90,000,000
shares authorized; 31,842,916, 31,080,876 and 31,007,088
shares issued and fully paid as of September 30, 2013,
December 31, 2012 and September 30, 2012, respectively)		375		367			367
Additional paid-in capital		228,990		216,814			219,103
Capital reserve		1,591		1,591			1,591
Accumulated other comprehensive income		164		188			266
Retained earnings (accumulated deficit)		13,046		(3,479	)		1,621
Total Equity		244,166		215,481			222,948

Total liabilities and equity	$	294,825	$	264,488		$	274,314

Given Imaging Ltd. and its Consolidated Subsidiaries

Interim Consolidated Statements of Income and Comprehensive Income

In thousands except share and per share data

(Unaudited)

		Nine-month period ended September 30						Three-month period ended September 30						Year ended December 31
		2013			2012			2013			2012			2012
Revenues	$	140,107		$	131,754		$	50,023		$	45,403		$	180,501

Cost of revenues		(31,694	)		(30,571	)		(11,267	)		(10,199	)		(42,971	)

Gross profit		108,413			101,183			38,756			35,204			137,530

Operating expenses
Research and development, gross		(19,029	)		(19,536	)		(6,729	)		(5,406	)		(25,627	)

Government grants		832			1,006			633			221			1,439
Research and development, net		(18,197	)		(18,530	)		(6,096	)		(5,185	)		(24,188	)

Sales and marketing		(60,958	)		(55,431	)		(20,542	)		(17,939	)		(76,272	)
General and administrative		(17,052	)		(16,839	)		(5,597	)		(5,634	)		(22,746	)
Other, net		(307	)		(163	)		(121	)		7			(455	)

Total operating expenses		(96,514	)		(90,963	)		(32,356	)		(28,751	)		(123,661	)

Operating profit		11,899			10,220			6,400			6,453			13,869
Financing income, net		33			583			72			215			847

Profit before taxes
on income		11,932			10,803			6,472			6,668			14,716
Income tax expense		(507	)		(1,646	)		(21	)		(662	)		(459	)

Net profit		11,425			9,157			6,451			6,006			14,257

Net loss attributable to
non-controlling interest		-			93			-			-			93

Net profit attributable to
shareholders	$	11,425		$	9,250		$	6,451		$	6,006		$	14,350

Net change in respect of
available for sale securities		(102	)		1,073			107			783			1,151
Total comprehensive profit
attributable to shareholders	$	11,323		$	10,323		$	6,558		$	6,789		$	15,501

Total comprehensive
loss attributable to
non-controlling interest		-			(93	)		-			-			(93	)

Total comprehensive profit	$	11,323		$	10,230		$	6,558		$	6,789		$	15,408

Earnings per share

Basic Earnings attributable to
shareholders per Ordinary share	$	0.36		$	0.30		$	0.20		$	0.19		$	0.47

Diluted Earnings attributable to
shareholders per Ordinary share	$	0.36		$	0.29		$	0.20		$	0.19		$	0.45

Weighted average number
of Ordinary Shares used to
compute basic Earnings
per Ordinary share		31,448,589			30,791,872			31,660,886			30,982,259			30,853,581

Weighted average number of
Ordinary Shares used to compute
dilute Earnings per Ordinary share		32,060,209			31,475,497			32,385,638			31,403,833			31,563,208

Given Imaging Ltd. and its Consolidated Subsidiaries

Interim Consolidated Statements of Cash Flows

In thousands

(Unaudited)

	Nine-month period ended						Three-month period ended						Year ended
	September 30						September 30						December 31
	2013			2012			2013			2012			2012
Cash flows from operating activities:

Net profit	$	11,425		$	9,157		$	6,451		$	6,006		$	14,257

Adjustments required to reconcile
net profit to net cash provided by
operating activities:

Depreciation and amortization		6,574			6,320			2,195			2,109			8,597
Change in deferred taxes		(647	)		(2,589	)		21			(394	)		(1,795	)
Stock based compensation		4,340			4,617			1,451			1,631			6,158
Loss (profit) from disposal of fixed
assets and intangible assets		399			173			174			(3	)		484
Unrealized interest on contingent
Consideration		157			-			42			-			-
Decrease (increase) in accounts
receivable – trade		(825	)		2,027			(956	)		(1,165	)		977
Decrease (increase) in accounts
receivable – other		189			1,298			196			829			1,252
Increase in other current assets		(1,067	)		(1,257	)		(490	)		(377	)		(1,316	)
Decrease (increase) in advances
to suppliers		68			(209	)		(425	)		383			(142	)
increase in inventories		(933	)		(1,795	)		(978	)		(1,111	)		(299	)
Increase (decrease) in accounts payable		(2,079	)		(978	)		3,747			1,203			(691	)
Increase in deferred income		289			38			43			62			408
Other		436			(44	)		239			2			(62	)
Net cash provided by operating
Activities		18,326			16,758			11,710			9,175			27,828

Cash flows from investing
activities:
Purchase of fixed assets and
intangible assets		(2,887	)		(5,791	)		(1,089	)		(2,474	)		(7,005	)
Other long term assets		19			(608	)		10			2			(538	)
Acquisition of business, net
of cash acquired (1)					-						-			(6,000	)
Changes in short term deposits, net		(13,851	)		24,906			(11,500	)		8,487			4,968
Proceeds from sales and maturity
of marketable securities		246			4,050			-			-			13,343
Investments in marketable securities		(9,774	)		(23,781	)		(481	)		(321	)		(24,827	)

Net cash provided by (used in)
investing activities		(26,247	)		(1,224	)		(13,060	)		5,694			(20,059	)

Given Imaging Ltd. and its Consolidated Subsidiaries

Interim Consolidated Statements of Cash Flows

In thousands

(Unaudited)

	Nine-month period ended						Three-month period ended					Year ended
	September 30						September 30					December 31
	2013			2012			2013		2012			2012
Cash flows from financing activities:

Principal payments on capital lease obligation		-			(124	)		-		(41	)		(129	)
Proceeds from the issuance of Ordinary Shares		3,134			3,367			1,455		442			4,115
Purchase of shares from a non-controlling
shareholder in a subsidiary		-			(658	)		-		-			(658	)

Net cash provided by financing activities		3,134			2,585			1,455		401			3,328

Effect of exchange rate changes on
cash and cash equivalents		129			(54	)		46		(11	)		60

Increase (decrease) in cash and cash
equivalents		(4,658	)		18,065			151		15,259			11,157
Cash and cash equivalents at beginning
of period		35,442			24,285			30,633		27,091			24,285

Cash and cash equivalents at end of period	$	30,784		$	42,350		$	30,784	$	42,350		$	35,442

Supplementary cash flow information

Income taxes paid	$	2,301		$	2,054		$	313	$	897		$	2,883