Allot Communications Ltd.
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By:
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/s/ Donna Rahav | |
Donna Rahav
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Deputy General Counsel
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Exhibit
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Description
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99.1
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Press Release Announcing Financial Results Dated February 5, 2013
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During the quarter, received large orders from 14 service providers, 3 of which represented new customers;
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9 of the large orders came from mobile service providers, 2 of which were new customers;
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announced the completion of a deployment project at several affiliates of Millicom International Cellular S.A (Tigo), a global telecommunication group with operations in Latin America and Africa; and
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was named by Strategy Analytics as market leader amongst DPI pure-play vendors.
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Three Months Ended
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Year Ended
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December 31,
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December 31,
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2012
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2011
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2012
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2011
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(Unaudited)
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(Audited)
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Revenues
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$ | 26,362 | $ | 22,028 | $ | 104,752 | $ | 77,753 | ||||||||
Cost of revenues
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7,918 | 6,290 | 31,037 | 22,175 | ||||||||||||
Expense related to settlement of OCS grants
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15,886 | - | 15,886 | - | ||||||||||||
Gross profit
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2,558 | 15,738 | 57,829 | 55,578 | ||||||||||||
Operating expenses:
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Research and development costs, net
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6,648 | 3,692 | 22,060 | 13,222 | ||||||||||||
Sales and marketing
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9,707 | 7,268 | 34,127 | 26,543 | ||||||||||||
General and administrative
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2,560 | 1,689 | 10,664 | 7,474 | ||||||||||||
Total operating expenses
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18,915 | 12,649 | 66,851 | 47,239 | ||||||||||||
Operating profit (loss)
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(16,357 | ) | 3,089 | (9,022 | ) | 8,339 | ||||||||||
Financial and other income, net
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327 | 238 | 1,358 | 415 | ||||||||||||
Profit (loss) before income tax benefit
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(16,030 | ) | 3,327 | (7,664 | ) | 8,754 | ||||||||||
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Tax benefit
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(969 | ) | (170 | ) | (926 | ) | (55 | ) | ||||||||
Net profit (loss)
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(15,061 | ) | 3,497 | (6,738 | ) | 8,809 | ||||||||||
Basic net profit (loss) per share
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$ | (0.46 | ) | $ | 0.13 | $ | (0.21 | ) | $ | 0.35 | ||||||
Diluted net profit (loss) per share
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$ | (0.46 | ) | $ | 0.12 | $ | (0.21 | ) | $ | 0.33 | ||||||
Weighted average number of shares
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used in computing basic net
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earnings per share
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32,471,655 | 27,709,271 | 31,959,921 | 25,047,771 | ||||||||||||
Weighted average number of shares
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used in computing diluted net
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earnings per share
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32,471,655 | 29,556,655 | 31,959,921 | 27,071,872 |
Three Months Ended
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Year Ended
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December 31,
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December 31,
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2012
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2011
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2012
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2011
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(Unaudited)
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(Audited)
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GAAP net profit (loss) as reported
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$ | (15,061 | ) | $ | 3,497 | $ | (6,738 | ) | $ | 8,809 | ||||||
Non-GAAP adjustments:
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Fair value adjustment for acquired deferred revenues write down ( Revenues)
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2,109 | - | 2,367 | - | ||||||||||||
Expense related to settlement of OCS grants (Cost of revenues)
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15,886 | 15,886 | ||||||||||||||
Expenses recorded for stock-based compensation
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Cost of revenues
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68 | 35 | 222 | 103 | ||||||||||||
Research and development costs, net
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429 | 155 | 1,185 | 442 | ||||||||||||
Sales and marketing
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709 | 317 | 2,060 | 1,001 | ||||||||||||
General and administrative
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553 | 179 | 1,349 | 710 | ||||||||||||
Expenses related to M&A activities and compliance with regulatory matters (*)
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General and administrative (G&A)
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(73 | ) | - | 1,992 | 1,336 | |||||||||||
Research and development costs, net
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92 | - | 435 | - | ||||||||||||
Sales and marketing
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62 | - | 210 | - | ||||||||||||
Adjustment of contingent earnout (G&A)
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(261 | ) | (261 | ) | ||||||||||||
Intangible assets amortization :
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- | - | ||||||||||||||
Cost of revenues
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969 | 30 | 1,903 | 121 | ||||||||||||
S&M
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26 | - | 43 | - | ||||||||||||
Tax benefit (in respect of net deferred tax asset recorded)
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(877 | ) | - | (877 | ) | - | ||||||||||
Total adjustments
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19,692 | 716 | 26,514 | 3,713 | ||||||||||||
Non-GAAP net profit
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$ | 4,631 | $ | 4,213 | $ | 19,776 | $ | 12,522 | ||||||||
Non- GAAP basic net profit per share
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$ | 0.14 | $ | 0.15 | $ | 0.62 | $ | 0.50 | ||||||||
Non- GAAP diluted net profit per share
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$ | 0.14 | $ | 0.14 | $ | 0.59 | $ | 0.46 | ||||||||
Weighted average number of shares
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used in computing basic net
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earnings per share
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32,471,655 | 27,709,271 | 31,959,921 | 25,047,771 | ||||||||||||
Weighted average number of shares
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used in computing diluted net
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earnings per share
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33,840,004 | 29,668,381 | 33,641,115 | 27,183,472 |
(*) Mostly legal, finance and compensation expenses related to the acquisition
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Three Months Ended
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Year Ended
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December 31,
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December 31,
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2012
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2011
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2012
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2011
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(Unaudited)
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(Audited)
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GAAP Revenues
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$ | 26,362 | $ | 22,028 | $ | 104,752 | $ | 77,753 | ||||||||
Fair value adjustment for acquired deferred revenues write down
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$ | 2,109 | - | $ | 2,367 | - | ||||||||||
Non-GAAP Revenues
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$ | 28,471 | $ | 22,028 | $ | 107,119 | $ | 77,753 |
December 31,
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December 31,
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2012
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2011
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(Audited)
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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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$ | 50,026 | $ | 116,682 | ||||
Short term deposits
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78,042 | 24,000 | ||||||
Marketable securities and restricted cash
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14,988 | 18,718 | ||||||
Trade receivables, net
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20,236 | 11,926 | ||||||
Other receivables and prepaid expenses
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6,815 | 5,950 | ||||||
Inventories
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9,963 | 10,501 | ||||||
Total current assets
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180,070 | 187,777 | ||||||
LONG-TERM ASSETS:
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Severance pay fund
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213 | 178 | ||||||
Deferred Taxes
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1,525 | 210 | ||||||
Other assets
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239 | 146 | ||||||
Total long-term assets
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1,977 | 534 | ||||||
PROPERTY AND EQUIPMENT, NET
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6,609 | 5,352 | ||||||
GOODWILL AND INTANGIBLE ASSETS, NET
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33,136 | 3,395 | ||||||
Total assets
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$ | 221,792 | $ | 197,058 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY
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CURRENT LIABILITIES:
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Trade payables
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$ | 4,809 | $ | 2,684 | ||||
Deferred revenues
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13,829 | 16,694 | ||||||
Other payables and accrued expenses
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13,947 | 9,462 | ||||||
Liability related to settlement of OCS grants
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15,886 | - | ||||||
Total current liabilities
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48,471 | 28,840 | ||||||
LONG-TERM LIABILITIES:
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Deferred revenues
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3,945 | 5,430 | ||||||
Accrued severance pay
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254 | 219 | ||||||
Total long-term liabilities
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4,199 | 5,649 | ||||||
SHAREHOLDERS' EQUITY
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169,122 | 162,569 | ||||||
Total liabilities and shareholders' equity
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$ | 221,792 | $ | 197,058 |
Three Months Ended
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Year Ended
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December 31,
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December 31,
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2012
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2011
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2012
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2011
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(Unaudited)
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(Audited)
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Cash flows from operating activities:
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Net income (Loss)
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$ | (15,061 | ) | $ | 3,497 | $ | (6,738 | ) | $ | 8,809 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities:
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Depreciation
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1,007 | 706 | 3,120 | 2,754 | ||||||||||||
Stock-based compensation related to options granted to employees
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1,759 | 686 | 4,817 | 2,256 | ||||||||||||
Amortization of intangible assets
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996 | 30 | 1,947 | 121 | ||||||||||||
Capital loss
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6 | 1 | 20 | 10 | ||||||||||||
Decrease (Increase) in accrued severance pay, net
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(6 | ) | 7 | - | 12 | |||||||||||
Decrease (Increase) in other assets
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(50 | ) | 4 | 6 | 98 | |||||||||||
Decease in accrued interest and amortization of premium on marketable securities
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68 | 85 | 212 | 151 | ||||||||||||
Increase (Decrease) in trade receivables
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1,503 | 873 | (8,139 | ) | (1,187 | ) | ||||||||||
Decrease (Increase) in other receivables and prepaid expenses
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(393 | ) | (1,876 | ) | 1,134 | (1,083 | ) | |||||||||
Decrease (Increase) in inventories
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1,096 | (1,453 | ) | 3,233 | 329 | |||||||||||
Increase in long-term deferred taxes, net
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(906 | ) | (114 | ) | (906 | ) | (114 | ) | ||||||||
Decrease in trade payables
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(2,794 | ) | (1,146 | ) | (1,287 | ) | (2,456 | ) | ||||||||
Increase (Decrease) in employees and payroll accruals
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225 | (233 | ) | 2,392 | (748 | ) | ||||||||||
Increase (Decrease) in deferred revenues
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(2,794 | ) | 7,742 | (7,089 | ) | 7,423 | ||||||||||
Increase (Decrease) in other payables and accrued expenses
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(1,157 | ) | (851 | ) | 84 | (1,178 | ) | |||||||||
Increase in Liability related to settlement of OCS grants
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15,886 | - | 15,886 | - | ||||||||||||
Net cash provided by (used in) operating activities
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(615 | ) | 7,958 | 8,692 | 15,197 | |||||||||||
Cash flows from investing activities:
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Increase in restricted deposit
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1,039 | 409 | 913 | (78 | ) | |||||||||||
Redemption of short-term deposits
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- | (6,000 | ) | (54,042 | ) | (24,000 | ) | |||||||||
Investment in short-term deposit
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15,958 | - | - | - | ||||||||||||
Purchase of property and equipment
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(823 | ) | (915 | ) | (3,820 | ) | (2,953 | ) | ||||||||
Proceeds from sale of property and equipment
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- | - | - | 30 | ||||||||||||
Investment in marketable securities
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(500 | ) | (504 | ) | (8,194 | ) | (4,735 | ) | ||||||||
Proceeds from redemption or sale of marketable securities
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8,736 | 200 | 10,736 | 2,603 | ||||||||||||
Acquisitions
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- | - | (23,892 | ) | - | |||||||||||
Loan to purchased Subsidiary
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- | - | (1,000 | ) | - | |||||||||||
Net cash provided by (used in) investing activities
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24,410 | (6,810 | ) | (79,299 | ) | (29,133 | ) | |||||||||
Cash flows from financing activities:
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Issuance of share capital related to secondary offering
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- | 84,922 | - | 84,922 | ||||||||||||
Exercise of employee stock options
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563 | 818 | 5,903 | 2,838 | ||||||||||||
Redemption of bank loan
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- | - | (1,952 | ) | - | |||||||||||
Net cash provided by financing activities
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563 | 85,740 | 3,951 | 87,760 | ||||||||||||
Increase in cash and cash equivalents
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24,358 | 86,888 | (66,656 | ) | 73,824 | |||||||||||
Cash and cash equivalents at the beginning of the year
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25,668 | 29,794 | 116,682 | 42,858 | ||||||||||||
Cash and cash equivalents at the end of the year
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$ | 50,026 | $ | 116,682 | $ | 50,026 | $ | 116,682 |