Selected Statement of Operations Data

12 Months Ended

Dec. 31, 2016

Text Block [Abstract]

Selected Statement of Operations Data

NOTE 14 - SELECTED STATEMENT OF OPERATIONS DATA:

a. Segment and geographical information:

(i) Reportable segments:

The Company’s three reportable segments are: Production Solutions for the Electronics Industry, Solar Energy and Recognition Software. As defined under the applicable accounting literature, the Company’s chief operating decision maker has been identified as the Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company.

The Company’s material operating segments qualify for aggregation due to the similarities of their long-term economic characteristics, nature of products and services, class of customers and processes for procurement, manufacturing and distribution.

The Production Solutions for the Electronics Industry segment comprises the design, development, manufacture, marketing and service of yield-enhancing and process-enabling solutions for the manufacture of electronics products. The Company provides cutting-edge solutions for use in the manufacture of PCB, FPDs and SDs, designed to enable the production of innovative, next generation electronic products and improve the cost effectiveness of existing and future electronics production processes. The Company’s products in this segment include capital equipment for inspection, repair, imaging, testing, etch and deposition for manufacturers of PCBs, FPDs and SDs.

The Solar Energy segment includes the research, development and marketing of products for the deposition of thin film coating of various materials on crystalline silicon photovoltaic wafers for solar energy panels.

The Recognition Software segment includes the development and marketing of character recognition solutions to banks, financial and other payment processing institutions and healthcare providers.

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 equity losses or taxes on income since those items are not allocated to the segments. Segment assets do not include deferred tax assets or equity method investee balances (excluding the investment in Frontline).

1. Financial data relating to reportable segments:

	Production Solutions for the Electronics Industry		Solar Energy			Recognition Software		Total
	$ in thousands
Year ended December 31, 2016:
Revenues from unaffiliated customers:
Sales of products		577,211		3,176			8,009		588,396
Service rendered		209,119		2,617			6,270		218,006
Total revenues		786,330		5,793			14,279		806,402
Operating income (loss)		*119,006		(2,424	)		363		116,945
Assets (at end of year)		1,060,299		6,732			11,668		1,078,699
Expenditures for segment assets		23,379					171		23,550
Depreciation and amortization		44,573					183		44,756
Year ended December 31, 2015:
Revenues from unaffiliated customers:
Sales of products		515,550		13,894			7,926		537,370
Service rendered		207,131		1,683			6,333		215,147
Total revenues		722,681		15,577			14,259		752,517
Operating income (loss)		*92,988		(465	)		2,181		94,704
Assets (at end of year)		998,897		7,290			11,401		1,017,589
Expenditures for segment assets		19,293					55		19,348
Depreciation and amortization		45,129					153		45,282
Year ended December 31, 2014:
Revenues from unaffiliated customers:
Sales of products		385,341		11,162			7,460		403,963
Service rendered		172,297		719			5,767		178,783
Total revenues		557,638		11,881			13,227		582,746
Operating income (loss)		*47,507		(428	)		1,067		48,146
Assets (at end of year)		985,690		3,699			12,482		1,001,871
Expenditures for segment assets		12,330					170		12,500
Depreciation and amortization		30,162					171		30,333

* Including share in net income of Frontline.

2. Following is a reconciliation of the operating income of the reportable segments to the data included in the statements of operations:

	Year ended December 31
	2016		2015		2014
	$ in thousands
Operating income
Total operating income of reportable segments		116,945		94,704		48,146
Financial expenses - net		21,042		23,585		9,046
Income before taxes on income		95,903		71,119		39,100

3. Following is a reconciliation of the assets of the reportable segments to the data included in the consolidated balance sheets:

	December 31
	2016		2015		2014
	$ in thousands
Total assets of reportable segments at end of year		1,078,699		1,017,589		1,001,871
Assets not allocated to segments		24,204		24,289		32,101
Consolidated assets at end of year		1,102,903		1,041,878		1,033,972

(ii) Geographical information:

Revenues - classified by geographical area (based on the location of customers):

	Year ended December 31
	2016		2015		2014
	$ in thousands
China		273,852		223,120		202,836
Taiwan		180,740		170,297		98,405
North America		108,400		98,387		87,900
Europe		75,300		108,074		54,004
Japan		59,710		45,044		44,840
Korea		52,900		59,299		55,607
Other (mainly in the Far East)		55,500		48,296		39,154
Total		806,402		752,517		582,746

(iii) Revenues by major product lines are as follows:

	Year ended December 31
	2016		2015		2014
	$ in thousands
Inspection		176,650		183,925		171,300
Direct imaging		171,282		147,445		152,607
Test and repair		133,350		106,418		82,034
PVD/CVD		196,300		162,627		78,529
Other		128,820		152,102		98,276
Total		806,402		752,517		582,746

(iv) Revenues by operating segments are as follows:

	Year ended December 31
	2016		2015		2014
	$ in thousands
Sales revenues:
PCB		170,328		141,129		170,999
FPD		185,099		166,176		125,656
SD		221,785		208,245		88,685
Other		11,184		21,820		18,623
Total sales revenues		588,396		537,370		403,963
Service revenues:
PCB		116,581		114,371		115,226
FPD		40,798		38,770		35,103
SD		51,739		53,990		21,968
Other		8,888		8,016		6,486
Total service revenues		218,006		215,147		178,783
Total		806,402		752,517		582,746

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

	December 31
	2016		2015		2014
	$ in thousands
United Kingdom		24,466		24,940		23,058
Israel		19,971		16,344		13,707
United States		3,880		4,241		4,865
Italy		4,319		4,375		4,470
Germany		5,249		5,466		5,770
Other		4,490		3,616		3,710
Total		62,375		58,982		55,580

b. Major customers

No individual customer accounted for more than 10% of the Company’s total revenues during the years ended December 31, 2016, 2015 or 2014.

c. Selling, general and administrative expenses

	Year ended December 31
	2016		2015		2014
	$ in thousands
Comprised as follows:
Selling		62,308		57,753		45,044
General and administrative		62,048		59,740		51,125
		124,356		117,493		96,169

d. Financial expenses - net

	Year ended December 31
	2016			2015			2014
	$ in thousands
Income:
Interest in respect of bank deposits and marketable securities		665			646			1,074
Expenses:
Interest in respect of term loans		8,061			17,866			7,184
Charges associated with the retirement of the JPMorgan Credit Agreement (mainly deferred financing costs)		6,228
Costs relating to factoring of letters of credits and promissory note:		447			209			227
Net loss from sale of marketable securities								339
Marketable securities and bonds premium/discount amortization		18			136			316
Foreign currencies exchange loss - net		5,990			5,115			1,159
Bank charges and other		963			905			895
		21,707			24,231			10,120
		(21,042	)		(23,585	)		(9,046	)

e. Earnings per share

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

	Year ended December 31
	2016		2015		2014
	$ in thousands
Weighted average number of shares issued and outstanding (net of treasury shares) used in computation of basic earnings per share:		45,534		42,412		41,703
Add - incremental shares from assumed exercise of options and RSUs:		927		910		1,054
Weighted average number of shares used in computation of diluted earnings per share		46,461		43,322		42,757

Diluted earnings per share for the years ended December 31, 2015 and 2014 do not reflect ‘out-of-the-money’ options to purchase respective aggregate amounts of 13,015 and 427,628 Ordinary Shares, respectively, due to their anti-dilutive effect.