Allot Communications Ltd.
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By:
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/s/ Shmuel Arvatz | |
Shmuel Arvatz
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Chief Financial Officer
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Exhibit
99.1
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Description
Allot Communications Reports Non-GAAP 4.4% Revenue Growth for Q1 2015
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Non-GAAP Revenues were $29.5 million, up 4.4% year over year
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Non-GAAP Gross Margin reached 76%
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Non-GAAP Operating Margin was 10%
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Book-to-bill was below one
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The Company generated $2.1 million of Operating Cash Flow
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Net Cash as of March 31, 2015 totaled $123.8 million
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During Q1 2015, 18 large orders were received, 3 of which were from new customers
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8 of the large orders came from mobile-service providers and 8 were from fixed-line service providers
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In addition, 2 large orders were received for private and public cloud deployments
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Allot completed the acquisition of Optenet during the first quarter. The impact over the first quarter results was minimal.
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Allot launched SmartEngage which enables mobile operators to increase subscriber service uptake.
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Received four orders from Tier-1 operators to enable delivery of Security-as-a-Service and Comply with Regulation.
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TABLE - 1
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ALLOT COMMUNICATIONS LTD.
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AND ITS SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(U.S. dollars in thousands, except share and per share data)
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Three Months Ended
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March 31,
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2015
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2014
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(Unaudited)
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Revenues
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$ | 29,532 | $ | 28,284 | ||||
Cost of revenues
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7,769 | 8,195 | ||||||
Gross profit
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21,763 | 20,089 | ||||||
Operating expenses:
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Research and development costs, net
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6,809 | 7,221 | ||||||
Sales and marketing
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11,808 | 10,497 | ||||||
General and administrative
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3,250 | 2,887 | ||||||
Total operating expenses
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21,867 | 20,605 | ||||||
Operating loss
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(104 | ) | (516 | ) | ||||
Financial and other income, net
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205 | 149 | ||||||
Profit (loss) before income tax benefit
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101 | (367 | ) | |||||
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Tax expenses
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135 | 21 | ||||||
Net loss
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(34 | ) | (388 | ) | ||||
Basic net loss per share
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$ | (0.00 | ) | $ | (0.01 | ) | ||
Diluted net loss per share
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$ | (0.00 | ) | $ | (0.01 | ) | ||
Weighted average number of shares
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used in computing basic net
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earnings per share
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33,357,909 | 32,939,195 | ||||||
Weighted average number of shares
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used in computing diluted net
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earnings per share
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33,357,909 | 32,939,195 |
TABLE - 2
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ALLOT COMMUNICATIONS LTD.
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AND ITS SUBSIDIARIES
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RECONCILATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
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(U.S. dollars in thousands, except per share data)
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Three Months Ended
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Three Months Ended
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March 31, 2015
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March 31, 2014
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(Unaudited)
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(Unaudited)
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$ |
% of Revenues
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$ |
% of Revenues
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GAAP Operating (loss)
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$ | (104 | ) | 0 | % | $ | (516 | ) | (2 | )% | |||||||
Share-based compensation (1)
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1,867 | 1,992 | |||||||||||||||
Amortization of intangible assets (2)
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511 | 465 | |||||||||||||||
Expenses related to M&A activities (3)
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577 | 8 | |||||||||||||||
Fair value adjustment for acquired deferred revenues write down
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11 | 12 | |||||||||||||||
Non-GAAP Operating income
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$ | 2,862 | 10 | % | $ | 1,961 | 7 | % | |||||||||
GAAP Net (loss)
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$ | (34 | ) | 0 | % | $ | (388 | ) | (1 | )% | |||||||
Share-based compensation (1)
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1,867 | 1,992 | |||||||||||||||
Amortization of intangible assets (2)
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511 | 465 | |||||||||||||||
Expenses related to M&A activities (3)
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577 | 8 | |||||||||||||||
Fair value adjustment for acquired deferred revenues write down
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11 | 12 | |||||||||||||||
Non-GAAP Net income
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$ | 2,932 | 10 | % | $ | 2,089 | 7 | % | |||||||||
GAAP loss per share (diluted)
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$ | (0.00 | ) | $ | (0.01 | ) | |||||||||||
Share-based compensation
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0.05 | 0.06 | |||||||||||||||
Amortization of intangible assets
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0.02 | 0.01 | |||||||||||||||
Expenses related to M&A activities
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0.02 | 0.00 | |||||||||||||||
Fair value adjustment for acquired deferred revenues write down
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0.00 | 0.00 | |||||||||||||||
Non-GAAP Net income per share (diluted)
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$ | 0.09 | $ | 0.06 | |||||||||||||
(1) Share-based compensation:
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Cost of revenues
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$ | 82 | $ | 88 | |||||||||||||
Research and development costs, net
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420 | 469 | |||||||||||||||
Sales and marketing
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752 | 821 | |||||||||||||||
General and administrative
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613 | 614 | |||||||||||||||
$ | 1,867 | $ | 1,992 | ||||||||||||||
(2) Amortization of intangible assets
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Cost of revenues
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$ | 454 | $ | 399 | |||||||||||||
Sales and marketing
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57 | 66 | |||||||||||||||
$ | 511 | $ | 465 | ||||||||||||||
(3) Expenses related to M&A activities
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General and administrative
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$ | 351 | $ | 8 | |||||||||||||
Research and development costs, net
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45 | - | |||||||||||||||
Sales and marketing
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181 | - | |||||||||||||||
$ | 577 | $ | 8 |
TABLE - 3
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ALLOT COMMUNICATIONS LTD.
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AND ITS SUBSIDIARIES
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RECONCILATION OF GAAP TO NON-GAAP CONSOLIDATED REVENUES
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(U.S. dollars in thousands, except share and per share data)
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Three Months Ended
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March 31,
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2015
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2014
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(Unaudited)
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GAAP Revenues
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$ | 29,532 | $ | 28,284 | ||||
Fair value adjustment for acquired deferred revenues write down
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11 | 12 | ||||||
Non-GAAP Revenues
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$ | 29,543 | $ | 28,296 |
TABLE - 4
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ALLOT COMMUNICATIONS LTD.
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AND ITS SUBSIDIARIES
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CONSOLIDATED BALANCE SHEETS
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(U.S. dollars in thousands)
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March 31,
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March 31,
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2015
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2014
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(Unaudited)
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(Unaudited)
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ASSETS
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CURRENT ASSETS:
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Cash and cash equivalents
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$ | 21,930 | $ | 51,036 | ||||
Short term deposits
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46,500 | 30,500 | ||||||
Marketable securities and restricted cash
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55,344 | 40,639 | ||||||
Trade receivables, net
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23,584 | 21,414 | ||||||
Other receivables and prepaid expenses
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6,634 | 8,906 | ||||||
Inventories
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8,321 | 13,474 | ||||||
Total current assets
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162,313 | 165,969 | ||||||
LONG-TERM ASSETS:
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Severance pay fund
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260 | 260 | ||||||
Deferred taxes
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1,620 | 1,602 | ||||||
Other assets
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3,626 | 2,726 | ||||||
Total long-term assets
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5,506 | 4,588 | ||||||
PROPERTY AND EQUIPMENT, NET
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6,011 | 5,990 | ||||||
GOODWILL AND INTANGIBLE ASSETS, NET
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45,995 | 29,756 | ||||||
Total assets
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$ | 219,825 | $ | 206,303 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY
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CURRENT LIABILITIES:
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Trade payables
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$ | 5,876 | $ | 4,887 | ||||
Deferred revenues
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12,340 | 13,527 | ||||||
Other payables and accrued expenses
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15,324 | 12,851 | ||||||
Total current liabilities
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33,540 | 31,265 | ||||||
LONG-TERM LIABILITIES:
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Deferred revenues
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4,777 | 2,520 | ||||||
Accrued severance pay
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292 | 292 | ||||||
Other long term liabilities
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3,915 | 0 | ||||||
Total long-term liabilities
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8,984 | 2,812 | ||||||
SHAREHOLDERS' EQUITY
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177,301 | 172,226 | ||||||
Total liabilities and shareholders' equity
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$ | 219,825 | $ | 206,303 |
TABLE - 5
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ALLOT COMMUNICATIONS LTD.
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AND ITS SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF CASH FLOWS
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(U.S. dollars in thousands)
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Three Months Ended
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March 31,
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2015
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2014
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(Unaudited)
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Cash flows from operating activities:
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Net Loss
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$ | (34 | ) | $ | (388 | ) | ||
Adjustments to reconcile net income to net cash provided by operating activities:
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Depreciation
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762 | 800 | ||||||
Stock-based compensation related to options granted to employees
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1,849 | 1,992 | ||||||
Amortization of intangible assets
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449 | 465 | ||||||
Capital loss
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4 | - | ||||||
Decrease in accrued severance pay, net
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12 | 4 | ||||||
Increase in other assets
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(178 | ) | (82 | ) | ||||
Decrease in accrued interest and amortization of premium on marketable securities
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300 | 208 | ||||||
Increase (Decrease) in trade receivables
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175 | (4,506 | ) | |||||
Increase in other receivables and prepaid expenses
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(2,691 | ) | (102 | ) | ||||
Decrease in inventories
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1,788 | 324 | ||||||
Increase in long-term deferred taxes, net
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96 | - | ||||||
Increase (Decrease) in trade payables
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(424 | ) | 1,696 | |||||
Increase (Decrease) in employees and payroll accruals
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(409 | ) | 1,062 | |||||
Increase in deferred revenues
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100 | 1,096 | ||||||
Increase in other payables and accrued expenses
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292 | 876 | ||||||
Net cash provided by operating activities
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2,091 | 3,445 | ||||||
Cash flows from investing activities:
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Redemption of short-term deposits
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12,500 | 7,500 | ||||||
Purchase of property and equipment
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(666 | ) | (916 | ) | ||||
Investment in marketable securities
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(6,727 | ) | (900 | ) | ||||
Proceeds from redemption or sale of marketable securities
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5,528 | 901 | ||||||
Acquisitions of certain assets and liabilities
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(10,052 | ) | - | |||||
Loan provided to third party, net
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- | (2,563 | ) | |||||
Net cash provided by investing activities
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583 | 4,022 | ||||||
Cash flows from financing activities:
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Exercise of employee stock options
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76 | 756 | ||||||
Net cash provided by financing activities
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76 | 756 | ||||||
Increase in cash and cash equivalents
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2,750 | 8,223 | ||||||
Cash and cash equivalents at the beginning of the period
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19,180 | 42,813 | ||||||
Cash and cash equivalents at the end of the period
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$ | 21,930 | $ | 51,036 |