Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 6-K

 

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

For the month of May 2018

Commission File Number 000-12790

 

 

ORBOTECH LTD.

(Translation of Registrant’s name into English)

 

 

7 SANHEDRIN BOULEVARD,

NORTH INDUSTRIAL ZONE,

YAVNE 8110101, ISRAEL

(Address of principal executive offices)

 

 

Indicate by check mark whether the Registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F  ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

 

 

 


Attached hereto and incorporated by reference herein are the press release issued by the Registrant on, and dated May 8, 2018, and entitled “Orbotech Reports First Quarter 2018 Results” and Registrant’s Condensed Consolidated Balance Sheet, Statement of Operations and Statement of Cash Flows for the three months ended March 31, 2018.

Except as set forth below, the information on this Form 6-K, including the exhibit attached hereto, shall not be deemed ‘filed’ for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.

This report on Form 6-K is incorporated by reference into the Registration Statements on Form S-8 (Registration No. 33-25782, Registration No. 33-78196, Registration No. 333-05440, Registration No. 333-06542, Registration No. 333-08404, Registration No. 333-09342, Registration No. 333-11124, Registration No. 333-12692, Registration No. 333-127979, Registration No. 333-154394, Registration No. 333-169146 and Registration No. 333-207878) of Orbotech Ltd. (the “Registrant”) previously filed with the Securities and Exchange Commission.

EXHIBITS

 

Exhibit #

  

Description

99.1    Press release issued by the Registrant on, and dated May 8, 2018, and entitled “Orbotech Reports First Quarter 2018 Results”
99.2    Registrant’s Condensed Consolidated Balance Sheet, Statement of Operations and Statement of Cash Flows for the three months ended March 31, 2018.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

ORBOTECH LTD.
(Registrant)
By:  

/s/ Alon Rozner

  Alon Rozner
  Corporate Vice President and
  Chief Financial Officer

Date: May 9, 2018

EX-99.1

Exhibit 99.1

 

LOGO

ORBOTECH REPORTS FIRST QUARTER 2018 RESULTS

2018 first quarter highlights

 

    Revenues of $250.6 million

 

    Gross margin of 47.1%

 

    GAAP EPS of $0.61 (diluted); non-GAAP EPS of $0.83 (diluted)

Second quarter 2018 revenue guidance

 

    Second quarter 2018 revenue range: $250 million to $265 million

YAVNE, ISRAEL, May 8, 2018 | ORBOTECH LTD. (NASDAQ: ORBK) (the “Company”) today announced its consolidated financial results for the first quarter of 2018.

Throughout the early part of 2018, the Company has continued to deliver innovative solutions to its customers that will help them overcome some of the most difficult production challenges they face today. The technology leadership and momentum in Orbotech’s business underscore our confidence in our ability to capitalize on the opportunities available to us for the remainder of 2018.

Separately, Orbotech is today announcing that it has received orders totaling approximately $50 million from Taipei-based Career Technology (Mfg.) Co., Ltd., a worldwide manufacturer of flexible printed circuit (FPC) PCBs for advanced electronic devices, for a range of solutions for liquid-crystal polymer (LCP) FPC production. These solutions will be implemented in Career’s new FPC production lines for the manufacture of next generation LCP smartphone flexible components. Delivery is scheduled to begin during the second quarter of 2018 and to be completed by the end of 2018. These significant orders further validate Orbotech’s position as a technology leader in its served industries.

Revenues for the first quarter of 2018 totaled $250.6 million, compared with $187.6 million in the first quarter of 2017, and $256.9 million in the fourth quarter of 2017.

In the Company’s Production Solutions for Electronics Industry segment:

 

    Revenues from the Company’s printed circuit board (“PCB”) business were $87.1 million (including $53.3 million in equipment sales) in the first quarter of 2018. This compares to PCB revenues of $77.5 million (including $49.8 million in equipment sales) in the first quarter of 2017.

 

    Revenues from the Company’s flat panel display (“FPD”) business were $80.6 million (including $69.1 million in equipment sales) in the first quarter of 2018. This compares to FPD revenues of $53.4 million (including $43.0 million in equipment sales) in the first quarter of 2017.

 

    Revenues from the Company’s semiconductor device (“SD”) business were $78.6 million (including $67.2 million in equipment sales) in the first quarter of 2018. This compares to SD revenues of $52.5 million (including $41.5 million in equipment sales) in the first quarter of 2017.

Revenues in the Company’s other segments totaled $4.3 million in the first quarter of 2018, compared with $4.2 million in the first quarter of 2017.

Service revenues for the first quarter of 2018 were $58.6 million, compared with $50.9 million in the first quarter of 2017.

Gross profit and gross margin in the first quarter of 2018 were $117.9 million and 47.1%, respectively, compared with $87.1 million and 46.4%, respectively, in the first quarter of 2017.

GAAP net income and GAAP net income margin in the first quarter of 2018 were $30.3 million and 12.1%, respectively, compared with $14.9 million and 8.0%, respectively, in the first quarter of 2017.

GAAP earnings per share (diluted) for the first quarter of 2018 were $0.61, compared with $0.31 for the first quarter of 2017.

A reconciliation of each of the Company’s non-GAAP measures to the comparable GAAP measure (the “Reconciliation”) is included at the end of this press release.


Adjusted EBITDA (as defined below) and adjusted EBITDA margin for the first quarter of 2018 were $53.1 million and 21.2%, respectively, compared with $32.5 million and 17.3%, respectively, in the first quarter of 2017.

Non-GAAP net income and non-GAAP net income margin for the first quarter of 2018 were $41.1 million and 16.4%, respectively, compared with $22.3 million and 11.9%, respectively, for the first quarter of 2017. Non-GAAP earnings per share (diluted) for the first quarter of 2018 were $0.83, compared with $0.46 per share, for the first quarter of 2017.

As of March 31, 2018, the Company had cash, cash equivalents, short term bank deposits and marketable securities of $301.9 million, and debt of $72.6 million. During the first quarter of 2018, the Company utilized cash for operations of $20.4 million. As of March 31, 2018, the actual number of ordinary shares outstanding was approximately 48.5 million.

2018 Guidance

The Company expects second quarter 2018 revenue to be in the range of $250 million to $265 million based on current expectations of product mix. Other than with respect to the foregoing quarterly revenue guidance, the Company is withdrawing the financial guidance provided with respect to 2018 and beyond for all financial metrics and periods presented.

In light of the pending acquisition by KLA-Tencor Corporation, Orbotech will not provide guidance other than with respect to quarterly revenues, nor will it hold a conference call to discuss its financial results.

About Orbotech Ltd.

Orbotech Ltd. (NASDAQ: ORBK) is a leading global supplier of yield-enhancing and process-enabling solutions for the manufacture of electronics products. Orbotech provides cutting-edge solutions for use in the manufacture of printed circuit boards (PCBs), flat panel displays (FPDs), and semiconductor devices (SDs), designed to enable the production of innovative, next-generation electronic products and improve the cost effectiveness of existing and future electronics production processes. Orbotech’s core business lies in enabling electronic device manufacturers to inspect and understand PCBs and FPDs and to verify their quality (‘reading’); pattern the desired electronic circuitry on the relevant substrate and perform three-dimensional shaping of metalized circuits on multiple surfaces (‘writing’); and utilize advanced vacuum deposition and etching processes in SD and semiconductor manufacturing (‘connecting’). Orbotech refers to this ‘reading’, ‘writing’ and ‘connecting’ as enabling the ‘Language of Electronics’. For more information, visit www.orbotech.com and www.spts.com.

Cautionary Statement Regarding Forward-Looking Statements

Except for historical information, the matters discussed in this press release are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, future prospects, developments and business strategies and involve certain risks and uncertainties. The words “anticipate,” “believe,” “could,” “will,” “plan,” “expect” and “would” and similar terms and phrases, including references to assumptions, have been used in this press release to identify forward-looking statements. These forward-looking statements are made based on management’s expectations and beliefs concerning future events affecting Orbotech and are subject to uncertainties and factors relating to Orbotech’s operations and business environment, the previously announced acquisition of Orbotech by KLA, the manner in which the parties plan to effect the transaction, including the share repurchase program, the ability to raise additional capital necessary to complete the repurchase program within the time frame expected, the expected benefits, synergies and costs of the transaction, management plans relating to the transaction, including with respect to the Company’s ownership interest in Frontline, the expected timing of the completion of the transaction, the parties’ ability to complete the transaction considering the various closing conditions, including conditions related to regulatory and Orbotech shareholder approvals, the plans, strategies and objectives of management for future operations, product development, product extensions, product integration, complementary product offerings and growth opportunities in certain business areas, the potential future financial impact of the transaction, and any assumptions underlying any of the foregoing. Actual results may differ materially from those referred to in the forward-looking statements due to a number of important factors, including but not limited to the possibility that expected benefits of the transaction may not materialize as expected, that the transaction may not be timely completed, if at all, that KLA-Tencor may not be able to successfully integrate the solutions and employees of the two companies or ensure the continued performance or growth of Orbotech’s products or solutions, the risk that the Company may not achieve its revenue expectations within and for 2018 (including, without limitation, due to shifting move-in dates); cyclicality in the industries in which the Company operates, the Company’s supply chain management and production capacity, order cancelation (often without penalty), timing and occurrence of product acceptance (the Company defines ‘bookings’ and ‘backlog’ as purchase arrangements with customers that are based on mutually agreed terms, which, in some cases for bookings and backlog, may still be subject to completion of written


documentation and may be changed or cancelled by the customer, often without penalty), fluctuations in product mix within and among divisions, worldwide economic conditions generally, especially in the industries in which the Company operates, the timing and strength of product and service offerings by the Company and its competitors, changes in business or pricing strategies, changes in the prevailing political and regulatory framework in which the relevant parties operate, including as a result of the United Kingdom’s prospective withdrawal from the European Union (known as “Brexit”) and political uncertainty in the United States, or in economic or technological trends or conditions, including currency fluctuations, inflation and consumer confidence, on a global, regional or national basis, the level of consumer demand for sophisticated devices such as smart mobile devices, automotive electronics, flexible applications and devices, augmented reality/virtual reality and wearable devices, high-performance computing, liquid crystal display and organic light emitting diode screens and other sophisticated devices, the Company’s global operations and its ability to comply with varying legal, regulatory, exchange, tax and customs regimes, the timing and outcome of tax audits, including the best judgment tax assessment issued by the Israel Tax Authority with respect to the audit of tax years 2012-2014 in Israel and the related criminal investigation, the Company’s ability to achieve strategic initiatives, including related to its acquisition strategy, the Company’s debt and corporate financing activities; the timing, final outcome and impact of the criminal matter and ongoing investigation in Korea, including any impact on existing or future business opportunities in Korea and elsewhere, any civil actions related to the Korean matter brought by third parties, including the Company’s customers, which may result in monetary judgments or settlements, expenses associated with the Korean matter, and ongoing or increased hostilities in Israel and the surrounding areas.

The foregoing information should be read in connection with the Company’s Annual Report on Form 20-F for the year ended December 31, 2017, and subsequent SEC filings. The Company is subject to the foregoing and other risks detailed in those reports. The Company assumes no obligation to update the information in this press release to reflect new information, future events or otherwise, except as required by law.

Non-GAAP Financial Measures

Non-GAAP net income, non-GAAP operating income, non-GAAP earnings per diluted share detailed in the Reconciliation exclude charges, income or losses, as applicable, related to one or more of the following: (i) equity-based compensation expenses; (ii) certain items associated with acquisitions, including release of earn outs, amortization of intangible assets and acquisition costs; (iii) tax impact including tax effect of Non-GAAP adjustments and tax benefit; (iv) share in losses of equity method investee and amounts associated with non-controlling interests company; (v) release of valuation allowance and/or (vii) expenses associated with the KLA transaction that were recorded during the first quarter of 2018.

The Company uses the non-GAAP measures indicated in the Reconciliation to supplement the Company’s financial results presented on a GAAP basis. These non-GAAP measures exclude equity based compensation expenses, amortization of intangible assets, share in losses/profits of associated companies, as well as certain financial and other expenses and items that are believed to be helpful in understanding and comparing past operating and financial performance with current results. Management uses all of the non-GAAP measures to evaluate the Company’s operating and financial performance in light of business objectives and for planning purposes. These measures are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. Orbotech believes that these measures enhance investors’ ability to review the Company’s business from the same perspective as the Company’s management and facilitate comparisons with results for prior periods. In addition, these non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. However, the non-GAAP measures presented are subject to limitations as an analytical tool because they exclude certain recurring items (such as, equity compensation, financial expense and amortization of intangible assets) as described below and in the Reconciliation. The presentation of this additional non-GAAP information should not be considered in isolation or as a substitute for net income; net income attributable to Orbotech Ltd. or earnings per share prepared in accordance with GAAP, and should be read only in conjunction with the Company’s consolidated financial statements prepared in accordance with GAAP. For a quantification of the adjustments made to comparable GAAP measures, please see the Reconciliation.

The effect of equity-based compensation expenses has been excluded from the non-GAAP measures. Although equity-based compensation is a key incentive offered to employees, and the Company believes such compensation contributed to the revenues earned during the periods presented and also believes it will contribute to the generation of future period revenues, the Company continues to evaluate its business performance excluding equity based compensation expenses. Equity-based compensation expenses will recur in future periods.

The effects of amortization of intangible assets have also been excluded from the measures. This item is inconsistent in amount and frequency and is significantly affected by the timing and size of acquisitions and dispositions. Investors should note that the use of intangible assets contributed to revenues earned during the periods presented and will contribute to future period revenues as well. Amortization of intangible assets will recur in future periods and the Company may be required to record impairment charges in the future. The Company believes that it is useful for investors to understand the effects of these items on total operating expenses.


Adjusted EBITDA is also a non-GAAP financial measure. The Company defines adjusted EBITDA as net income attributable to Orbotech Ltd., further adjusted, in addition to the items described above, to exclude taxes on income, financial expenses (income) – net and depreciation. The Company presents adjusted EBITDA because it considers it to be an important supplemental measure and believes it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in Orbotech’s industry. Adjusted EBITDA margin is a measurement of Orbotech’s adjusted EBITDA as a percentage of its revenues. Although the Company believes its presentation of adjusted EBITDA is useful, its adjusted EBITDA measure may not be comparable to similarly named measures presented by other companies.

For more information about all of the foregoing items, see the Reconciliation, the Company’s Annual Report on Form 20-F filed with the SEC for the year ended December 31, 2017, and its subsequent SEC filings.

 

Company Contact:
Rami Rozen
VP, Investor Relations

Orbotech Ltd

Tel: +972-8-942 3582

Rami.rozen@orbotech.com

  

 

Tally Kaplan Porat

Director of Corporate Marketing

Orbotech Ltd

Tel: +972-8-942 3603

Tally-Ka@orbotech.com


ORBOTECH LTD.

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

U.S. dollars in thousands (except per share data)

(Unaudited)

 

     Three months ended     Year ended  
     March 31,     December 31,  
     2018     2017     2017  

Reported operating income on GAAP basis

     35,925       19,654       137,510  

Equity-based compensation expenses

     3,032       2,218       9,876  

Amortization of intangible assets

     6,371       5,893       25,006  

Transaction cost pending merger with KLA

     2,481      

Gain from the release of AMST earn out payment obligation

         (1,471
  

 

 

   

 

 

   

 

 

 

Non-GAAP operating income

   $ 47,809     $ 27,765     $ 172,392  
  

 

 

   

 

 

   

 

 

 

Reported net income attributable to Orbotech Ltd. on GAAP basis(1)

   $ 30,267     $ 14,920     $ 132,385  

Equity-based compensation expenses

     3,032       2,218       9,876  

Amortization of intangible assets

     6,371       5,893       25,006  

Tax effect of non-GAAP adjustments

     (1,059     (748     (4,656

Tax benefit

         (18,778

Transaction cost pending merger with KLA

     2,481      

Gain from the release of AMST earn out payment obligation

         (1,471
  

 

 

   

 

 

   

 

 

 

Non-GAAP net income

   $ 41,092     $ 22,283     $ 142,362  
  

 

 

   

 

 

   

 

 

 

GAAP earnings per diluted share

   $ 0.61     $ 0.31     $ 2.71  
  

 

 

   

 

 

   

 

 

 

Non-GAAP earnings per diluted share

   $ 0.83     $ 0.46     $ 2.91  
  

 

 

   

 

 

   

 

 

 

Shares used in earnings per diluted share computation - in thousands

     49,331       48,768       48,850  

 

(1) Reflects the net benefit of approximately $16 million consisting of the impact of increase in deferred tax assets during the last quarter of 2017, mainly for the valuation allowance releases and decrease in deferred tax liabilities offset by an increase in our tax provisions.

ORBOTECH LTD.

RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA

U.S. dollars in thousands

(Unaudited)

 

     Three months ended     Year ended  
     March 31,     December 31,  
     2018     2017     2017  

Net income attributable to Orbotech Ltd. on GAAP basis

   $ 30,267     $ 14,920     $ 132,385  

Minority interest and equity losses

     (368     (140     (1,498

Taxes on income

     7,671       2,868       1,088  

Financial expenses - net

     (1,645     2,006       5,535  

Depreciation and amortization

     11,629       10,651       44,543  

Equity-based compensation expenses

     3,032       2,218       9,876  

Transaction cost pending merger with KLA

     2,481      

Gain from the release of AMST earn out payment obligation

         (1,471
  

 

 

   

 

 

   

 

 

 

ADJUSTED EBITDA

   $ 53,067     $ 32,523     $ 190,458  
  

 

 

   

 

 

   

 

 

 

 

EX-99.2

Exhibit 99.2

ORBOTECH LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

U. S. dollars in thousands

(Unaudited)

 

     March 31,     December 31,  
     2018     2017  
ASSETS     

CURRENT ASSETS:

    

Cash and cash equivalents

   $ 290,056     $ 315,803  

Short-term bank deposits

     4,143       4,115  

Accounts receivable - trade

     398,134       362,839  

Prepaid expenses and other current assets

     60,488       56,448  

Inventories

     198,384       182,152  
  

 

 

   

 

 

 

Total current assets

     951,205       921,357  
  

 

 

   

 

 

 

INVESTMENTS AND NON-CURRENT ASSETS:

    

Marketable securities

     7,734       7,888  

Funds in respect of employee rights upon retirement

     10,570       10,622  

Deferred income taxes

     40,911       43,157  

Equity method investee and other receivables

     6,196       5,556  
  

 

 

   

 

 

 
     65,411       67,223  
  

 

 

   

 

 

 

PROPERTY, PLANT AND EQUIPMENT, net

     71,010       69,612  
  

 

 

   

 

 

 

OTHER INTANGIBLE ASSETS, net

     61,855       68,226  
  

 

 

   

 

 

 

GOODWILL

     177,486       177,486  
  

 

 

   

 

 

 

Total assets

   $ 1,326,967     $ 1,303,904  
  

 

 

   

 

 

 
LIABILITIES AND EQUITY     

CURRENT LIABILITIES:

    

Current maturities of long-term loan

   $ 16,364     $ 16,364  

Accounts payable and accruals:

    

Trade

     91,926       96,166  

Other

     116,539       123,510  

Deferred income

     40,660       37,445  
  

 

 

   

 

 

 

Total current liabilities

     265,489       273,485  
  

 

 

   

 

 

 

LONG-TERM LIABILITIES:

    

Long-term loan, net

     56,232       56,117  

Liability for employee rights upon retirement

     26,167       24,997  

Deferred income taxes

     12,960       14,536  

Other tax liabilities

     20,823       22,901  
  

 

 

   

 

 

 

Total long-term liabilities

     116,182       118,551  
  

 

 

   

 

 

 

Total liabilities

     381,671       392,036  
  

 

 

   

 

 

 

EQUITY:

    

Share capital

     2,409       2,404  

Additional paid-in capital

     437,632       433,922  

Retained earnings

     602,812       572,544  

Accumulated other comprehensive income

     66       252  
  

 

 

   

 

 

 
     1,042,919       1,009,122  

Less treasury shares, at cost

     (99,539     (99,539
  

 

 

   

 

 

 

Total Orbotech Ltd. equity

     943,380       909,583  

Non-controlling interest

     1,916       2,285  
  

 

 

   

 

 

 

Total equity

     945,296       911,868  
  

 

 

   

 

 

 

Total liabilities and equity

   $ 1,326,967     $ 1,303,904  
  

 

 

   

 

 

 


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands (except per share data)

(Unaudited)

 

     Three months ended     Year ended  
     March 31,     December 31,  
     2018     2017     2017  

Revenues

   $ 250,551     $ 187,649     $ 900,856  

Cost of revenues

     132,642       100,524       475,538  
  

 

 

   

 

 

   

 

 

 

Gross profit

     117,909       87,125       425,318  
  

 

 

   

 

 

   

 

 

 

Operating expenses:

      

Research and development, net

     33,595       28,675       125,434  

Selling, general and administrative

     41,066       33,953       143,363  

Gain from the release of AMST earn out payment obligation

         (1,471

Equity in earnings of P.C.B. Solutions L.P (“Frontline”)

     (1,529     (1,050     (4,524

Amortization of intangible assets

     6,371       5,893       25,006  

Transaction cost pending merger with KLA

     2,481      
  

 

 

   

 

 

   

 

 

 

Total operating expenses

     81,984       67,471       287,808  
  

 

 

   

 

 

   

 

 

 

Operating income

     35,925       19,654       137,510  

Financial expenses (income) - net

     (1,645     2,006       5,535  
  

 

 

   

 

 

   

 

 

 

Income before taxes on income

     37,570       17,648       131,975  

Taxes on income

     7,671       2,868       1,088  
  

 

 

   

 

 

   

 

 

 

Net income

     29,899       14,780       130,887  

Net loss attributable to non-controlling interests

     (368     (140     (1,498
  

 

 

   

 

 

   

 

 

 

Net income attributable to Orbotech Ltd.

   $ 30,267     $ 14,920     $ 132,385  
  

 

 

   

 

 

   

 

 

 

Basic earnings per share

   $ 0.62     $ 0.31     $ 2.76  
  

 

 

   

 

 

   

 

 

 

Diluted earnings per share

   $ 0.61     $ 0.31     $ 2.71  
  

 

 

   

 

 

   

 

 

 

Weighted average number of shares (in thousands) used in computation of:

      

Basic earnings per share

     48,437       47,839       47,989  

Diluted earnings per share

     49,331       48,768       48,850  


ORBOTECH LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

(Unaudited)

 

     Three months ended     Year ended  
     March 31,     December 31,  
     2018     2017     2017  

CASH FLOWS FROM OPERATING ACTIVITIES:

      

Net income

   $ 29,899     $ 14,780     $ 130,887  

Adjustment to reconcile net income to net cash (used in) provided by operating activities:

      

Depreciation and amortization

     11,629       10,651       44,543  

Compensation relating to equity awards granted to employees and others - net

     3,032       2,218       9,876  

Increase (decrease) in liability for employee rights upon retirement, net

     1,299       (130     1,028  

Deferred financing costs amortization

     115       132       479  

Deferred income taxes

     11,802       322       (29,241

Amortization of premium and accretion of discount on marketable Securities, net

     38       (333     167  

Equity in earnings of Frontline, net of dividend received

     (581     26       (727

Other

       90       127  

Gain from the release of AMST earn out payment obligation

         (1,471

Gain from step up acquisition of a subsidiary

         (478

Decrease (increase) in accounts receivable:

      

Trade

     (35,295     (27,441     (36,496

Other

     (4,016     5,469       (10,568

Increase (decrease) in accounts payable and accruals:

      

Trade

     (4,240     (1,146     24,030  

Deferred income

     3,215       1,216       8,869  

Other

     (21,111     (6,912     36,845  

Increase in inventories

     (16,232     (8,182     (47,914
  

 

 

   

 

 

   

 

 

 

Net cash (Used in) provided by operating activities

     (20,446     (9,240     129,956  
  

 

 

   

 

 

   

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

      

Purchase of property, plant and equipment

     (5,884     (4,979     (24,445

Purchase of intellectual property

         (700

Proceeds from sale of property, plan and equipment

     5         157  

investment in bank deposits

     (28     (12     (3,326

Purchase of marketable securities

       (2,292     (1,994

Redemption of marketable securities

       1,804       1,004  

Acquisition of subsidiary consolidated for the first time

         102  

Deposits of funds in respect of employee rights upon retirement

     (77     (1,057     (1,250
  

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (5,984     (6,536     (30,452
  

 

 

   

 

 

   

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

      

Repayment of bank loan

         (16,364

Employee share options exercised

     683       667       3,884  
  

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     683       667       (12,480
  

 

 

   

 

 

   

 

 

 

Net (Decrease) increase in cash, cash equivalents and restricted cash

     (25,747     (15,109     87,024  

Cash, cash equivalents and restricted cash at beginning of period

     315,803       228,779       228,779  
  

 

 

   

 

 

   

 

 

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD

   $ 290,056     $ 213,670     $ 315,803