OTI Reports FY 2009 Financial Results
GlobeNewswire
2010-03-01
ISELIN, N.J., March 1, 2010 (GLOBE NEWSWIRE) --
-- Revenues of $31.4 Million ($38.2 Million Including Discontinued
Operations)
-- Gross Margin Increased to 47%
-- Net Cash Provided by Operating Activities of $5.1 Million
-- $32 Million in cash, cash equivalents and short terms investments at
year end
On Track Innovations Ltd. (OTI) (Nasdaq:OTIV), a global leader in
contactless microprocessor-based smart card solutions for homeland
security, payments, petroleum payments and other applications, today
announced its consolidated financial results for the year ended
December 31, 2009. Following are various financial figures that compare
fiscal year 2009 to 2008.
-- Net cash provided by continuing operating activities of $5.1 million.
-- Strong balance sheet with cash, cash equivalents and short-term
investments of $32 million at year end.
-- Total revenues of $31.4 million ($38.2 million including revenues from
discontinued operations), a 10% decrease from last year.
-- Gross margin increased to 47% vs. 43% last year.
-- Non-GAAP operating expenses of $24.1 million, a 6% decrease compared to
$25.7 million last year. GAAP operating expenses of $28.7 million
compared to $58.9 million last year (2008 GAAP operating expenses
included a $24.2 million one-time charge related to impairment of
goodwill).
-- Non-GAAP operating loss of $9.4 million, a 9% decrease compared to $10.4
million last year. GAAP operating loss of $14.1 million, compared to
$43.7 million last year (2008 GAAP operating loss included a $24.2
million one-time charge related to impairment of goodwill).
-- Non-GAAP net loss of $10.7 million, an 11% decrease compared to $11.9
million last year. GAAP net loss of $23.4 million, compared to $49.9
million last year (2008 GAAP net loss included a $24.2 million one-time
charge related to impairment of goodwill).
Oded Bashan, Chairman and CEO of OTI, said: "We are opening 2010 in a
strong position, with solid and established pipeline of large projects
and a stronger balance sheet, after finishing 2009 with positive cash
flow from operations. We are on target to reach operating breakeven on
a non-GAAP basis for the year, with expected sales of $48 million,
which represents a 50% increase over 2009 sales."
Mr. Bashan continued: "2009 results demonstrate the success of OTI's
strategy to focus on improving margins and reducing operating expenses,
specifically in R&D and G&A."
Mr. Bashan concluded: "The sale of the assets of MCT including the
machinery and inlay production IP of OTI in the fourth quarter of 2009
for EUR 8.5 million, is a result of our continued efforts to adapt
organization structure to corporate strategy, reduce our operating
expenses and offer end-to-end solutions which ultimately yield high
margin product sales and recurring revenues. The sale reduces OTI's
operating expenses and improves our cash flow position."
Discontinued Operations
During the fourth quarter of 2009, the Company signed an agreement for
the sale of the assets of OTI's subsidiary Millennium Card's Technology
Ltd ("MCT") including the machinery and inlay production IP of OTI to
SMARTRAC NV (as announced in November 2009). Results for the
discontinued operations have been separated and are presented
separately for both 2008 and 2009 statements.
Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with generally
accepted accounting principles, or GAAP, OTI uses non-GAAP measures of
gross profit, net income and earnings per share, which are adjustments
from results based on GAAP to exclude non-cash equity-based
compensation charges in accordance with the requirements of Accounting
Standards Codification ("ASC") Topic 718 (originally issued as SFAS No.
123(R)) and ASC Subtopic 505-50 - Equity-Based Payments to
Non-Employees (formerly EITF 96-18), amortization and impairment of
intangible assets and goodwill and results from discontinued
operations. OTI management believes the non-GAAP financial information
provided in this release provides meaningful supplemental information
regarding our performance and enhances the understanding of the
Company's on-going economic performance. The presentation of this
non-GAAP financial information is not intended to be considered in
isolation or as a substitute for results prepared in accordance with
GAAP. Management uses both GAAP and non-GAAP information in evaluating
and operating the business and as such deemed it important to provide
all this information to investors. Reconciliations between GAAP
measures and non-GAAP are provided later in this press release.
Conference call and Webcast Information
The Company has scheduled a conference call and simultaneous Web cast
for March 1, 2010, at 9:00 AM ET to discuss operating results and
future outlook. To participate, call: 1-888-668-9141 (U.S. toll free),
1-800-227-297 (Israel toll free). To listen to the Web cast, use the
following link: http://www.otiglobal.com/Investors_Introduction
For those unable to participate, the teleconference will be available
for replay until midnight March 7th, by calling U.S.: 1-888-295-2634 on
the web at: http://www.otiglobal.com/Investors_Introduction
About OTI
Established in 1990, OTI (Nasdaq:OTIV) designs, develops and markets
secure contactless microprocessor-based smart card technology to
address the needs of a wide variety of markets. Applications developed
by OTI include product solutions for petroleum payment systems,
homeland security solutions, electronic passports and IDs, payments,
mass transit ticketing, parking and loyalty programs. OTI has a global
network of regional offices to market and support its products. The
company was awarded the Frost & Sullivan 2005 and 2006 Company of the
Year Award in the field of smart cards.
The On Track Innovations Ltd. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5736
Safe Harbor for Forward-Looking Statements:
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 and
other Federal securities laws. Whenever we use words such as "believe,"
"expect," "anticipate," "intend," "plan," "estimate" or similar
expressions, we are making forward-looking statements. Because such
statements deal with future events and are based on OTI's current
expectations, they are subject to various risks and uncertainties and
actual results, performance or achievements of OTI could differ
materially from those described in or implied by the statements in this
press release. Forward-looking statements include statements regarding
our goals, beliefs, future growth strategies, objectives, plans or
current expectations. For example, when we say that we are opening 2010
in a strong position, with solid and established pipeline of large
projects and a stronger balance sheet, after finishing 2009 with
positive cash flow from operations, or when we say that we are on
target to reach operating breakeven on a non-GAAP basis for the year,
with expected sales of $48 million, which represents a 50% increase
over 2009 sales, or when we say that 2009 results demonstrate the
success of our strategy to focus on improving margins and reducing
operating expenses, specifically in R&D and G&A, or when we say that
the sale of the assets of MCT including the machinery and inlay
production IP of OTI in the fourth quarter of 2009 for EUR 8.5 million
is a result of our continued efforts to adapt organization structure to
corporate strategy, reduce our operating expenses and offer end-to-end
solutions which ultimately yield high margin product sales and
recurring revenues, or when we say that the sale reduces our operating
expenses and improves our cash flow position, we are using
forward-looking statements. Forward-looking statements could be
impacted by the effects of the protracted evaluation and validation
periods in the U.S. and other markets for contactless payment cards,
market acceptance of new and existing products and our ability to
execute production on orders, as well as the other risks and
uncertainties, including those discussed in the "Risk Factors" section
and elsewhere in our Annual Report on Form 20-F for the year ended
December 31, 2008 and in subsequent filings with the Securities and
Exchange Commission. Although we believe that the expectations
reflected in such forward-looking statements are based on reasonable
assumptions, we can give no assurance that our expectations will be
achieved. Except as otherwise required by law, OTI disclaims any
intention or obligation to update or revise any forward-looking
statements, which speak only as of the date hereof, whether as a result
of new information, future events or circumstances or otherwise.
ON TRACK INNOVATIONS LTD.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands, except share and per share data)
December
31 December 31
2008 2009
----------- ------------
(Unaudited)
-------------------------
Assets
Current assets
Cash and cash equivalents $ 27,196 $ 26,884
Short-term investments 904 5,086
Trade receivables (net of
allowance for doubtful accounts
of $3,315 and $2,777
as of December 31, 2008 and
December 31, 2009, respectively) 4,567 6,595
Other receivables and prepaid
expenses 2,994 2,478
Inventories 12,343 6,265
----------- ------------
Total current assets 48,004 47,308
----------- ------------
Severance pay deposits fund 1,189 1,112
Investment in an affiliated
company -- --
Property, plant and equipment,
net 18,613 14,366
Intangible assets, net 2,503 1,532
Assets from discontinued
operations -- held for sale -- 12,358
----------- ------------
Total Assets $ 70,309 $76,676
=========== ============
ON TRACK INNOVATIONS LTD.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands, except share and per share data)
December
December 31 31
2008 2009
----------- ---------
(Unaudited)
----------------------
Liabilities and Shareholders'
Equity
Current Liabilities
Short-term bank credit and
current maturities
of long-term bank loans $ 4,984 $ 6,255
Trade payables 8,071 9,649
Other current liabilities 3,517 16,174
----------- ---------
Total current liabilities 16,572 32,078
----------- ---------
Long-Term Liabilities
Long-term loans, net of current
maturities 1,762 2,642
Accrued severance pay 3,672 3,373
Deferred tax liability 202 120
----------- ---------
Total long-term liabilities 5,636 6,135
----------- ---------
Total Liabilities 22,208 38,213
----------- ---------
Liabilities related to
discontinued operations -- 8,495
Commitments and Contingencies
Equity
Shareholders' Equity
Ordinary shares of NIS 0.1 par
value: Authorized --
50,000,000 shares as of
December 31, 2008 and December
31, 2009; issued 21,534,788
and 23,946,316
shares as of December 31, 2008
and December 31, 2009,
respectively; outstanding
21,495,409 and 23,946,316
shares as of December 31, 2008
and December 31, 2009,
respectively 508 571
Additional paid-in capital 182,944 187,473
Accumulated other
comprehensive income (loss) (325) 570
Accumulated deficit (135,441) (158,623)
----------- ---------
Shareholder's equity 47,686 29,991
----------- ---------
Noncontrolling interest 415 (23)
----------- ---------
Total Equity 48,101 29,968
----------- ---------
Total Liabilities and
Shareholders' Equity $ 70,309 $76,676
=========== =========
ON TRACK INNOVATIONS LTD.
NON GAAP CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except share and per share data)
Three months ended
Year ended December 31 December 31
----------------------- -----------------------
2008 2009 2008 2009
----------- ---------- ----------- ----------
(Unaudited)
------------------------------------------------
Revenues
Sales $ 32,387 $ 28,488 $ 7,084 $ 7,527
Licensing and transaction fees 2,635 2,949 751 1,075
----------- ---------- ----------- ----------
Total revenues 35,022 31,437 7,835 8,602
----------- ---------- ----------- ----------
Cost of revenues
Cost of sales 19,729 16,738 4,403 5,270
----------- ---------- ----------- ----------
Total cost of revenues 19,729 16,738 4,403 5,270
----------- ---------- ----------- ----------
Gross profit 15,293 14,699 3,432 3,332
----------- ---------- ----------- ----------
Operating expenses
Research and development 7,399 6,034 1,587 1,669
Selling and marketing 9,112 9,684 3,030 2,210
General and administrative 9,176 8,392 2,657 2,867
----------- ---------- ----------- ----------
Total operating expenses 25,687 24,110 7,274 6,746
----------- ---------- ----------- ----------
Operating loss (10,394) (9,411) (3,842) (3,414)
Financial income (expense), net (474) (1,153) 114 (413)
----------- ---------- ----------- ----------
Loss before taxes on income (10,868) (10,564) (3,728) (3,827)
Taxes on income 205 (89) 28 (54)
Equity in loss of affiliate (1,270) -- (928) --
----------- ---------- ----------- ----------
Net loss (11,933) (10,653) (4,628) (3,881)
Net loss (income) attributable
to noncontrolling interest (57) 189 (57) 56
----------- ---------- ----------- ----------
Net loss attributable to
shareholders (11,990) (10,464) (4,685) (3,825)
=========== ========== =========== ==========
Basic and diluted net loss
attributable to shareholders
per ordinary share $ (0.59) $ (0.46) $ (0.22) $ (0.16)
=========== ========== =========== ==========
Weighted average number of
ordinary shares used in
computing
basic and diluted net loss per
ordinary share 20,413,578 22,635,479 21,378,887 23,548,712
=========== ========== =========== ==========
Adjustments from results based on GAAP to exclude:
(a) The effect of stock-based compensation in accordance with SFAS 123(R) and
EITF 96-18.
(b) The effect of amortization and impairment of intangible assets and goodwill
for 2008 and amortization of intangible assets for 2009.
(c) The effect of discontinued operation.
ON TRACK INNOVATIONS LTD.
GAAP CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except share and per share data)
Three months ended
Year ended December 31 December 31
----------------------- -----------------------
2008 2009 2008 2009
----------- ---------- ----------- ----------
(Unaudited)
------------------------------------------------
Revenues
Sales $ 32,387 $ 28,488 $ 7,084 $ 7,527
Licensing and transaction fees 2,635 2,949 751 1,075
----------- ---------- ----------- ----------
Total revenues 35,022 31,437 7,835 8,602
----------- ---------- ----------- ----------
Cost of revenues
Cost of sales 19,789 16,782 4,418 5,275
----------- ---------- ----------- ----------
Total cost of revenues 19,789 16,782 4,418 5,275
----------- ---------- ----------- ----------
Gross profit 15,233 14,655 3,417 3,327
----------- ---------- ----------- ----------
Operating expenses
Research and development 10,300 8,127 2,120 2,192
Selling and marketing 10,370 10,371 3,224 2,351
General and administrative 11,210 9,230 3,034 2,974
Amortization and impairment of
intangible assets 2,794 978 1,769 212
Impairment of goodwill 24,217 -- 24,217 --
----------- ---------- ----------- ----------
Total operating expenses 58,891 28,706 34,364 7,729
----------- ---------- ----------- ----------
Operating loss (43,658) (14,051) (30,947) (4,402)
Financial income (expense), net (474) (1,153) 114 (413)
----------- ---------- ----------- ----------
Loss before taxes on income (44,132) (15,204) (30,833) (4,815)
Taxes on income 675 (89) 498 (54)
Equity in loss of affiliate (1,270) -- (928) --
----------- ---------- ----------- ----------
Net loss from continuing
operation (44,727) (15,293) (31,263) (4,869)
Net loss from discontinued
operation (5,211) (8,078) (1,320) (4,407)
----------- ---------- ----------- ----------
Net loss (49,938) (23,371) (32,583) (9,276)
Net loss (income) attributable
to noncontrolling interest (57) 189 (57) 56
----------- ---------- ----------- ----------
Net loss attributable to
shareholders (49,995) (23,182) (32,640) (9,220)
=========== ========== =========== ==========
Basic and diluted net loss
attributable to shareholders
per ordinary share
From continuing operation $ (2.19) $ (0.67) $ (1.47) $ (0.20)
=========== ========== =========== ==========
From discontinued operation $ (0.26) $ (0.35) $ (0.06) $ (0.19)
=========== ========== =========== ==========
Weighted average number of
ordinary shares used in
computing
basic and diluted net loss per
ordinary share 20,413,578 22,635,479 21,378,887 23,548,712
=========== ========== =========== ==========
ON TRACK INNOVATIONS LTD.
RECONCILIATION BETWEEN GAAP TO NON-GAAP
UNAUDITED STATEMENT OF OPERATIONS
(In thousands, except share and per share data)
Year ended
December
31, 2009
GAAP Adjustments Non-GAAP
Revenues
Sales $ 28,488 -- $ 28,488
Licensing and transaction fees 2,949 2,949
--------------- -- -----------
Total revenues 31,437 31,437
--------------- -----------
Cost of Revenues
Cost of sales 16,782 16,738
--------------- (44) (a) -----------
Total cost of revenues 16,782 16,738
--------------- (44) -----------
Gross profit 14,655 14,699
--------------- 44 -----------
Operating Expenses
Research and development 8,127 (2,093) (a) 6,034
Selling and marketing 10,371 (687) (a) 9,684
General and administrative 9,230 (838) (a) 8,392
Amortization of intangible
assets 978 --
--------------- (978) (b) -----------
Total operating expenses 28,706 24,110
--------------- (4,596) -----------
Operating loss (14,051) 4,640 (9,411)
Financial expenses, net (1,153) -- (1,153)
--------------- ----------- -----------
Loss before taxes on income (15,204) 4,640 (10,564)
Taxes on income (89) -- (89)
--------------- ----------- -----------
Net loss from continuing
operation (15,293) 4,640 (10,653)
Net loss from discontinued
operation (8,078) 8,078 (c) --
Net loss $ (23,371) $12,718 $ (10,653)
Net loss attributable to
noncontrolling interest 189 -- 189
--------------- ----------- -----------
Net loss attributable to
shareholders $ (23,182) $12,718 $ (10,464)
=============== =========== ===========
Basic and diluted net loss
attributable to shareholders
per ordinary share
From continuing operation $ (0.67) $ 0.21 $ (0.46)
--------------- ----------- -----------
From discontinued operation $ (0.35) $ 0.35 --
--------------- ----------- -----------
Weighted average number of
ordinary shares used in
computing basic and
diluted net loss per ordinary
share 22,635,479 22,635,479
=============== ===========
(a) The effect of stock-based
compensation in accordance
with
SFAS 123(R) and EITF 96-18.
(b) The effect of amortization
of intangible assets.
(c) The effect of discontinued
operation.
ON TRACK INNOVATIONS LTD.
RECONCILIATION BETWEEN GAAP TO NON-GAAP
UNAUDITED STATEMENT OF OPERATIONS
(In thousands, except share and per share data)
Three
months
ended
December
31, 2009
GAAP Adjustments Non-GAAP
Revenues
Sales $ 7,527 -- $ 7,527
Licensing and transaction fees 1,075 1,075
----------- -- -----------
Total revenues 8,602 8,602
----------- -----------
Cost of Revenues
Cost of sales 5,275 5,270
----------- (5) (a) -----------
Total cost of revenues 5,275 5,270
----------- (5) -----------
Gross profit 3,327 3,332
----------- 5 -----------
Operating Expenses
Research and development 2,192 (523) (a) 1,669
Selling and marketing 2,351 (141) (a) 2,210
General and administrative 2,974 (107) (a) 2,867
Amortization of intangible
assets 212 --
----------- (212) (b) -----------
Total operating expenses 7,729 6,746
----------- (983) -----------
Operating loss (4,402) 988 (3,414)
Financial expenses, net (413) -- (413)
----------- ----------- -----------
Loss before taxes on income (4,815) 988 (3,827)
Taxes on income (54) -- (54)
----------- ----------- -----------
Net loss from continuing
operation (4,869) 988 (3,881)
Net loss from discontinued
operation (4,407) 4,407 (c) --
Net loss $ (9,276) $ 5,395 $ (3,881)
Net loss attributable to
noncontrolling interest 56 -- 56
----------- ----------- -----------
Net loss attributable to
shareholders $ (9,220) $ 5,395 $ (3,825)
----------- ----------- -----------
Basic and diluted net loss
attributable to shareholders
per ordinary share
From continuing operation $ (0.20) $ 0.04 $ (0.16)
----------- ----------- -----------
From discontinued operation $ (0.19) $ 0.19 --
----------- ----------- -----------
Weighted average number of
ordinary shares used in
computing basic and diluted net
loss per ordinary share 23,548,712 23,548,712
=========== ===========
(a) The effect of stock-based compensation in accordance with SFAS
123(R) and EITF 96-18.
(b) The effect of amortization of intangible assets.
(c) The effect of discontinued operation.
ON TRACK INNOVATIONS LTD
RECONCILIATION BETWEEN GAAP TO NON-GAAP
UNAUDITED STATEMENT OF OPERATIONS
(In thousands, except share and per share data)
Year ended
December 31,
2008
GAAP Adjustments Non-GAAP
Revenues
Sales $ 32,387 -- $ 32,387
Licensing and transaction fees 2,635 2,635
----------- -- -----------
Total revenues 35,022 35,022
----------- -----------
Cost of Revenues
Cost of sales 19,789 19,729
----------- (60) (a) -----------
Total cost of revenues 19,789 19,729
----------- (60) -----------
Gross profit 15,233 15,293
----------- 60 -----------
Operating Expenses
Research and development 10,300 (2,901) (a) 7,399
Selling and marketing 10,370 (1,258) (a) 9,112
General and administrative 11,210 (2,034) (a) 9,176
Amortization and impairment of
intangible assets 2,794 (2,794) (b) --
Impairment of goodwill 24,217 --
----------- (24,217) (b) -----------
Total operating expenses 58,891 25,687
----------- (33,204) -----------
Operating loss (43,658) 33,264 (10,394)
Financial expenses, net (474) -- (474)
----------- ------------ -----------
Loss before taxes on income (44,132) 33,264 (10,868)
Taxes on income 675 (470) (b) 205
Equity in loss of affiliate (1,270) -- (1,270)
----------- ------------ -----------
Net loss from continuing
operation (44,727) 32,794 (11,933)
Net loss from discontinued
operation (5,211) 5,211 (c) --
Net loss $ (49,938) $38,005 $ (11,933)
Net income attributable to
noncontrolling interest (57) -- (57)
----------- ------------ -----------
Net loss attributable to
shareholders
$ (49,995) $ 38,005 $ (11,990)
=========== ============ ===========
Basic and diluted net loss
attributable to shareholders
per ordinary share
From continuing operation $ (2.19) $ 1.60 $ (0.59)
----------- ------------ -----------
From discontinued operation $ (0.26) $ 0.26 --
----------- ------------ -----------
Weighted average number of
ordinary shares used in
computing basic and diluted net
loss per ordinary share 20,413,578 20,413,578
=========== ===========
(a) The effect of stock-based compensation in accordance with SFAS
123(R) and EITF 96-18.
(b) The effect of amortization and impairment of intangible assets and
goodwill.
(c) The effect of discontinued operation.
ON TRACK INNOVATIONS LTD
RECONCILIATION BETWEEN GAAP TO NON-GAAP
UNAUDITED STATEMENT OF OPERATIONS
(In thousands, except share and per share data)
Three months
ended
December 31,
2008
GAAP Adjustments Non-GAAP
Revenues
Sales $ 7,084 -- $ 7,084
Licensing and transaction fees 751 751
------------ -- ------------
Total revenues 7,835 7,835
------------ ------------
Cost of Revenues
Cost of sales 4,418 4,403
------------ (15) (a) ------------
Total cost of revenues 4,418 4,403
------------ (15) ------------
Gross profit 3,417 3,432
------------ 15 ------------
Operating Expenses
Research and development 2,120 (533) (a) 1,587
Selling and marketing 3,224 (194) (a) 3,030
General and administrative 3,034 (377) (a) 2,657
Amortization and impairment of
intangible assets 1,769 (1,769) (b) --
Impairment of goodwill 24,217 --
------------ (24,217) (b) ------------
Total operating expenses 34,364 7,274
------------ (27,090) ------------
Operating loss (30,947) 27,105 (3,842)
Financial income, net 114 -- 114
------------ ------------ ------------
Loss before taxes on income (30,833) 27,105 (3, 728)
Taxes on income 498 (470) (b) 28
Equity in loss of affiliate (928) -- (928)
------------ ------------ ------------
Net loss from continuing
operation (31,263) 26,635 (4,628)
Net loss from discontinued
operation (1,320) 1,320 (c) --
Net loss $ (32,583) $ 27,955 $ (4,628)
Net income attributable to
noncontrolling interest (57) -- (57)
------------ ------------ ------------
Net loss attributable to
shareholders $ (32,640) $27,955 $ (4,685)
============ ============ ============
Basic and diluted net loss
attributable to shareholders
per ordinary share
From continuing operation $ (1.47) $ 1.25 $ (0.22)
------------ ------------ ------------
From discontinued operation $ (0.06) $ 0.06 --
------------ ------------ ------------
Weighted average number of
ordinary shares used in
computing basic and diluted
net loss per ordinary share 21,378,887 21,378,887
============ ============
(a) The effect of stock-based compensation in accordance with SFAS
123(R) and EITF 96-18.
(b) The effect of amortization and impairment of intangible assets and
goodwill.
(c) The effect of discontinued operation.
ON TRACK INNOVATIONS LTD.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands, except share and per share data)
Year ended December 31
-----------------------
2008 2009
----------- ----------
(Unaudited)
-----------------------
Cash flows from operating activities
Net loss $ (44,727) $ (15,293)
Adjustments required to reconcile net loss to net
cash used in operating activities:
Stock-based compensation related to options and
shares issued to employees and others 6,253 3,662
Loss (gain) on sale of property and equipment 25 (3)
Amortization and impairment of intangible assets and
goodwill 27,011 978
Depreciation 3,044 2,632
Equity in net losses of an affiliated company 1,270 --
Accrued severance pay, net 78 (222)
Accrued interest and linkage differences on long-term
loans (27) 36
Decrease in deferred tax liability (711) (82)
Decrease (increase) in trade receivables 2,702 (1,326)
Increase (decrease) in allowance for doubtful account 548 (538)
Decrease in other receivables and prepaid expenses 567 663
Decrease in inventories 869 429
Increase (decrease) in trade payables (1,859) 1,334
Increase (decrease) in other current liabilities (2,008) 12,788
----------- ----------
Net cash provided by (used in) continuing operating
activities (6,965) 5,058
----------- ----------
Cash flows from investing activities
Acquisition of consolidated subsidiary, net of cash
acquired (565) --
Purchase of property and equipment (1,518) (4,124)
Purchase of available-for-sale securities (29,068) (5,623)
Proceeds from maturity of available-for-sale
securities 34,551 1,418
Other, net 30 22
----------- ----------
Net cash provided by (used in) continuing investing
activities 3,430 (8,307)
----------- ----------
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