Exhibit
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Description
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Sequential
Page Number
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1.
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Financial Results For Q1 2012
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9 |
ALVARION LTD.
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|||
Date: May 17th, 2012
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By:
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/s/ Marc Borenstein | |
Name: Marc Borenstein | |||
Title: General Counsel | |||
Investor Contacts:
Lior Shemesh, CFO
+972.3.767.4333
+1.760.685.2007
lior.shemesh@alvarion.com
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||
Claudia Gatlin
+1.212.830.9080
claudia.gatlin@alvarion.com
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-
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Carrier licensed solutions (access solutions in licensed frequencies primarily based on WiMAX), approximately 50% of total revenues in Q1
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-
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Vertical solutions (mainly license-exempt access solutions for non-carrier private networks such as municipalities and enterprises), approximately 30% of total revenues in Q1
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-
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Carrier unlicensed solutions (solutions for access, cellular offload, and in-building coverage for mobile carrier networks using license-exempt frequencies), approximately 20% of total revenues in Q1
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Three
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Three
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Three
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||||||||||||||
Months Ended
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Months Ended
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Months Ended
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Year Ended
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|||||||||||||
March 31,
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March 31,
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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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2011
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2011
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|||||||||||||
Sales
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$ | 33,310 | $ | 46,501 | $ | 41,219 | $ | 190,037 | ||||||||
Cost of sales
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19,922 | 31,986 | 25,419 | 121,435 | ||||||||||||
Inventory write-off related to bankruptcy of a customer
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- | - | - | 7,144 | ||||||||||||
Gross profit
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13,388 | 14,515 | 15,800 | 61,458 | ||||||||||||
Operating expenses:
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||||||||||||||||
Research and development, net
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6,875 | 8,308 | 7,353 | 27,964 | ||||||||||||
Selling and marketing
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8,674 | 9,766 | 9,200 | 37,576 | ||||||||||||
General and administrative
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3,260 | 3,846 | 3,209 | 13,877 | ||||||||||||
Amortization of intangible assets
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559 | - | 186 | 186 | ||||||||||||
Other charges (*)
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- | 7,128 | 4,912 | 12,040 | ||||||||||||
Acquisition related expenses (**)
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289 | - | 2,622 | 2,622 | ||||||||||||
Total Operating expenses
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19,657 | 29,048 | 27,482 | 94,265 | ||||||||||||
Operating loss
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(6,269 | ) | (14,533 | ) | (11,682 | ) | (32,807 | ) | ||||||||
Financial expenses , net
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(597 | ) | 81 | (546 | ) | (1,015 | ) | |||||||||
Net loss before Tax
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(6,866 | ) | (14,452 | ) | (12,228 | ) | (33,822 | ) | ||||||||
Income Tax
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- | - | - | - | ||||||||||||
Net loss
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(6,866 | ) | (14,452 | ) | (12,228 | ) | (33,822 | ) | ||||||||
Basic net loss per share:
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||||||||||||||||
(0.11 | ) | (0.23 | ) | (0.20 | ) | $ | (0.54 | ) | ||||||||
Weighted average number of shares used in computing basic net loss per share
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62,392 | 62,271 | 62,335 | 62,302 | ||||||||||||
Diluted net loss per share:
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||||||||||||||||
(0.11 | ) | (0.23 | ) | (0.20 | ) | $ | (0.54 | ) | ||||||||
Weighted average number of shares used in computing diluted net loss per share
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62,392 | 62,271 | 62,335 | 62,302 |
(*) Results of the organizational change and other.
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||||||||||||||||
(**)Charges related to acquisition of Wavion in November 2011.
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Three
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Three
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||||||||||||||||
Months Ended
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Months Ended
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||||||||||||||||
March 31,
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December 31,
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||||||||||||||||
2012
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2011
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||||||||||||||||
GAAP
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Adjustments
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Non-GAAP
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Non-GAAP
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||||||||||||||
Sales
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$ | 33,310 | $ | - | $ | 33,310 | $ | 41,219 | |||||||||
Cost of sales
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19,922 | (92 | ) |
(a)
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19,830 | 23,766 | |||||||||||
Gross profit
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13,388 | 92 | 13,480 | 17,453 | |||||||||||||
Operating expenses:
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|||||||||||||||||
Research and development, net
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6,875 | (135 | ) |
(a)
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6,740 | 7,312 | |||||||||||
Selling and marketing
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8,674 | (194 | ) |
(a)
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8,480 | 8,997 | |||||||||||
General and administrative
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3,260 | (204 | ) |
(a)
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3,056 | 3,031 | |||||||||||
Amortization of intangible assets
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559 | (559 | ) |
(b)
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- | - | |||||||||||
Acquisition related expenses
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289 | (289 | ) |
(c)
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- | - | |||||||||||
Total Operating expenses
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19,657 | (1,381 | ) | 18,276 | 19,340 | ||||||||||||
Operating loss
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(6,269 | ) | 1,473 | (4,796 | ) | (1,887 | ) | ||||||||||
Financial expenses , net
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(597 | ) | - | (597 | ) | (546 | ) | ||||||||||
Net loss before Tax
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(6,866 | ) | 1,473 | (5,393 | ) | (2,433 | ) | ||||||||||
Income Tax
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- | - | - | - | |||||||||||||
Net loss
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(6,866 | ) | 1,473 | (5,393 | ) | (2,433 | ) | ||||||||||
Basic net loss per share
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$ | (0.11 | ) | $ | (0.09 | ) | $ | (0.04 | ) | ||||||||
Weighted average number of shares used in computing basic net loss per share
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62,392 | 62,392 | 62,335 | ||||||||||||||
Diluted net loss per share
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$ | (0.11 | ) | $ | (0.09 | ) | $ | (0.04 | ) | ||||||||
Weighted average number of shares used in computing diluted net loss per share
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62,392 | 62,392 | 62,335 |
(a) The effect of stock-based compensation.
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|||||||||
(b) The effect of amortization of purchased intangibles.
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(c) Charges related to acquisition of Wavion in November 2011.
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Three
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Three
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Three
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||||||||||||||
Months Ended
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Months Ended
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Months Ended
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Year Ended
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|||||||||||||
March 31,
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March 31,
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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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2011
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2011
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|||||||||||||
Net loss according to US GAAP
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$ | (6,866 | ) | $ | (14,452 | ) | $ | (12,228 | ) | $ | (33,822 | ) | ||||
Amortization of purchased intangibles and step-down in backlog
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559 | - | 1,764 | 1,764 | ||||||||||||
Stock based compensation expenses related to ASC 718
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625 | 827 | 497 | 3,153 | ||||||||||||
Inventory write-off related to bankruptcy of customer
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- | - | - | 7,144 | ||||||||||||
Other charges (*)
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- | 7,128 | 4,912 | 12,040 | ||||||||||||
Acquisition related expenses (**)
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289 | - | 2,622 | 2,622 | ||||||||||||
Net loss excluding amortization of acquired intangibles, stock
based compensation and other expenses
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$ | (5,393 | ) | $ | (6,497 | ) | $ | (2,433 | ) | $ | (7,099 | ) | ||||
Basic net loss per share excluding amortization of acquired
intangibles, stock based compensation and other expenses
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$ | (0.09 | ) | $ | (0.10 | ) | $ | (0.04 | ) | $ | (0.11 | ) | ||||
Weighted average number of shares used in computing basic net loss per share
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62,392 | 62,271 | 62,335 | 62,302 | ||||||||||||
Diluted net loss per share excluding amortization of acquired
intangibles, stock based compensation and other expenses
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$ | (0.09 | ) | $ | (0.10 | ) | $ | (0.04 | ) | $ | (0.11 | ) | ||||
Weighted average number of shares used in computing diluted net loss per share
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62,392 | 62,271 | 62,335 | 62,302 |
(*) Results of the organizational change and other.
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||||||||||
(**) Charges related to acquisition of Wavion in November 2011.
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March 31,
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December 31,
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|||||||
2012
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2011
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|||||||
ASSETS
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Cash, cash equivalents, short-term and long-term investments
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$ | 51,569 | $ | 64,408 | ||||
Trade receivables
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45,532 | 48,294 | ||||||
Other accounts receivable
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9,407 | 7,658 | ||||||
Inventories
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37,600 | 36,215 | ||||||
LONG TERM Trade receivables
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4,452 | 6,986 | ||||||
LONG TERM Prepaid expenses
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68 | 171 | ||||||
PROPERTY AND EQUIPMENT, NET
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9,601 | 9,774 | ||||||
GOODWILL AND INTANGIBLE ASSETS, NET
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32,773 | 33,332 | ||||||
TOTAL ASSETS
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$ | 191,002 | $ | 206,838 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY
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||||||||
CURRENT LIABILITIES
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Current maturities of Long term loan
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$ | 13,524 | $ | 12,813 | ||||
Trade payables
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32,139 | 36,243 | ||||||
Other accounts payable and accrued expenses
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39,577 | 45,441 | ||||||
Total current liabilities
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85,240 | 94,497 | ||||||
Long term Accrued expenses
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129 | 547 | ||||||
Long term employees liabilities
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896 | 1,173 | ||||||
Long term liabilities others
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7,204 | 7,280 | ||||||
Long term loan
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15,781 | 17,187 | ||||||
Total long term liabilities
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24,010 | 26,187 | ||||||
TOTAL LIABILITIES
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109,250 | 120,684 | ||||||
SHAREHOLDERS' EQUITY
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81,752 | 86,154 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
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$ | 191,002 | $ | 206,838 |
Three
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||||
Months ended
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||||
March 31, 2012
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Cash flows from operating activities:
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||||
Net income
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$ | (6,866 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities:
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||||
Depreciation
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1,083 | |||
Amortization of intangibles assets
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559 | |||
Capital loss on disposal of property and equipment
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19 | |||
Stock based compensation expenses ASC 718
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624 | |||
Decrease in trade receivables
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2,762 | |||
Increase in other accounts receivable and prepaid expenses
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(1,555 | ) | ||
Increase in inventories
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(1,385 | ) | ||
Decrease in long term trade receivable
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2,534 | |||
Decrease in long term prepaid expenses
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103 | |||
Decrease in trade payables
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(4,104 | ) | ||
Decrease in other accounts payables and accrued expenses
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(4,218 | ) | ||
Decrease in long term accreued expenses
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(418 | ) | ||
Decrease in long term employees liabilities
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(277 | ) | ||
Decrease in long term liabilities
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(76 | ) | ||
Net cash used in operating activities
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(11,215 | ) | ||
Cash flows from investing activities:
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||||
Purchase of fixed assets
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(929 | ) | ||
Proceeds from fixed assets
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- | |||
Net cash used in investing activities
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(929 | ) | ||
Cash flows from financing activities:
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||||
Proceeds from exercise of employees' stock options
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- | |||
Repayment of long term loan
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(695 | ) | ||
Net cash Used in financing activities
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(695 | ) | ||
Decrease in cash, cash equivalents, short-term and long-term investments
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(12,839 | ) | ||
Cash, cash equivalents, short-term and long-term investments at the beginning of the period
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64,408 | |||
Cash, cash equivalents, short-term and long-term investments at the end of the period
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$ | 51,569 |