NOTE 13—SELECTED STATEMENT OF OPERATIONS DATA:

a.	Segment and geographical information:

(i)

Reportable segments:

(A)

General

The Company's two reportable segments are as follows:

Production Solutions for the Electronics Industry—this comprises the design, development, manufacture, marketing and service of yield-enhancing and production solutions for the supply chain of the electronics industry. The Company's products include AOI, AOR, imaging and production systems used in the manufacture of PCBs and other electronic components and AOI, test and repair systems used in the manufacture of FPDs. The Company also markets CAM and engineering solutions for PCB production. The Company aggregates two operating segments into this reportable segment based on the similarity of their long-term economic characteristics, products and services, production processes, classes of customers, methods of distribution and inter dependence.

Recognition Software—this comprises the development and marketing of character recognition solutions to banks, financial and other payment processing institutions by Orbograph.

In addition to its two reportable segments, certain research, development and marketing initiatives concerning various products not related to the Company's two reportable segments are classified under "Other".

(B)

Information on revenues and assets of the reportable segments:

Measurement of revenues and assets of the reportable segments:

The measurement of revenues and assets of the reportable segments is based on the same accounting principles applied in these financial statements.

Segment income or loss reflects the income or loss from continuing operations of the segment and does not include financial expenses—net, taxes on income and loss from discontinued operations since those items are not allocated to the segments.

Financial data relating to reportable segments:


	Production solutions for the electronics industry			Recognition software		Other			Total
	$ in thousands
Year ended December 31, 2011:
Revenues from unaffiliated customers:
Sales of products		417,109			6,859					423,968
Services rendered		135,527			5,818					141,345

Total revenues		552,636			12,677					565,313

Operating income (loss)		62,624			2,725		(5,288	)		60,061

Assets (at end of year)		707,360			20,608		3,936			731,904

Expenditures for segment assets		7,291			915		1,658			9,864

Depreciation and amortization		19,645			154		159			19,958

Year ended December 31, 2010:
Revenues from unaffiliated customers:
Sales of products		401,822			7,710					409,532
Services rendered		113,761			6,062					119,823

Total revenues		515,583			13,772					529,355

Operating income (loss)		60,594			3,198		(6,105	)		57,687

Assets (at end of year)		583,366			12,795		1,208			597,369

Expenditures for segment assets		6,329			91		332			6,752

Depreciation and amortization		23,331			152		182			23,665

Year ended December 31, 2009:
Revenues from unaffiliated customers:
Sales of products		244,057			7,774					251,831
Services rendered		101,195			6,304					107,499

Total revenues		345,252			14,078					359,330

Operating income (loss)		(5,179	)		3,571		(3,516	)		(5,124	)

Assets (at end of year)		564,547			9,569		621			574,737

Expenditures for segment assets		3,572			71		27			3,670

Depreciation and amortization		29,472			128		377			29, 977

Following is a reconciliation of the assets of the reportable segments to the data included in the consolidated financial statements:


	Year ended December 31
	2011		2010		2009
	$ in thousands
Total assets of reportable segments at end of year		731,904		597,369		574,737
Assets not allocated to segments		15,579		30,972		31,025

Consolidated assets at end of year		747,483		628,341		605,762

(ii)

Geographical information:


Revenues—classified by geographical area (based on the location of customers):
Sales of products:
China	193,415	101,719	46,480
Korea	69,252	141,674	52,591
Taiwan	50,829	83,045	68,632
Japan	42,995	40,846	58,181
North America^(*)	33,013	22,610	13,912
Europe	13,924	16,086	9,794
Other ^(**)	20,540	3,552	2,241

Total sales of products	423,968	409,532	251,831

Services rendered:
China	39,014	28,978	24,555
Korea	23,602	20,171	18,301
Taiwan	24,212	21,263	18,514
Japan	20,811	19,494	15,627
North America^(*)	18,427	17,275	17,719
Europe	11,301	9,899	9,966
Other ^(**)	3,978	2,743	2,817

Total services rendered	141,345	119,823	107,499

	565,313	529,355	359,330

^(*)	mainly the United States.

^(**)

mainly in the Pacific region.

(iii)

Property plant and equipment net of accumulated depreciation and amortization by geographical location:


	December 31
	2011		2010		2009
	$ in thousands
Israel		10,975		10,299		12,300
United States		5,451		5,571		5,837
Europe		6,713		5,466		5,855
Other		3,525		3,506		3,216

Total		26,664		24,842		27,208

b.	Major customers

Revenues for the years ended December 31, 2011, 2010 and 2009 included revenues recognized from major customers as below:

Year ended December 31

2011

2010

2009

% of revenues

Customer A

Customer B

Customer C

Customer D

Less than 10% of the Company's revenues

All such revenues related to the Production Solutions for the Electronics Industry segment.

c.	Cost of revenues:


	Year ended December 31
	2011*		2010		2009
	$ in thousands
1) Cost of products sold:
Materials and subcontractors		194,819		188,471		122,475
Labor costs		22,523		16,675		13,405
Overhead and other expenses		16,670		19,494		10,573

		234,012		224,640		146,453

2) Cost of services rendered:
Materials consumed		36,728		37,691		33,050
Labor costs		33,557		30,633		26,590
Overhead and other expenses		25,145		19,937		14,109

		95,430		88,261		73,749

Excludes write-down of inventories in the amount of $6,743,000

d.	Selling, general and administrative expenses


	Year ended December 31
	2011		2010		2009
	$ in thousands
Comprised as follows:
Selling		43,943		38,970		39,625
General and administrative		28,640		27,294		23,973

		72,583		66,264		63,598

f.	Financial expenses—net:


	Year ended December 31
	2011			2010			2009
	$ in thousands
Income:
Interest:
In respect of bank deposits and marketable securities		1,834			1,005			1,230
Other		83			40			712
Non-Dollar transaction gains—net					8

		1,917			1,053			1,942

Expenses:
Interest:
Bank loan		4,674			5,935			4,334
Costs relating to factoring of letters of credit and promissory notes		417			525			978
Net loss from sale of marketable securities		395			909			299
Impairment of available-for-sale securities					343			2,681
Non-Dollar transaction losses—net		2,072						4,434
Bank charges and other		910			625			306

		8,468			8,337			13,032

		(6,551	)		(7,284	)		(11,090	)

g.	Earnings (loss) per share

Following are data relating to the weighted average number of shares for the purpose of computing earnings (loss) per share:


	Year ended December 31
	2011		2010		2009
	In thousands
Weighted average number of shares issued and outstanding (net of treasury shares)—used in computation of basic earnings (loss) per share		39,909		34,911		34,501
Add—incremental shares from assumed exercise of options		907		867

Weighted average number of shares used in computation of diluted earnings (loss) per share		40,816		35,778		34,501