Given Imaging Reports Third Quarter 2012 Results

Third Quarter 2012 Revenues $45.4 Million vs. $44.7 Million in Third Quarter 2011; Third Quarter Americas Revenues Increase 6%; Excluding Adverse Effect of Foreign Currency Translation, Third Quarter Revenues $46.3 Million, 4% Over Third Quarter 2011; Third Quarter 2012 Non-GAAP Gross Margin 78.3% vs. 77.6% in Third Quarter 2011; Third Quarter GAAP and Non-GAAP EPS Increase 58% and 47% to $0.19 and $0.25, Respectively; Company Plans to Submit PillCam(R) COLON 2 Data to FDA in Next Few Weeks; Company Reaffirms 2012 Financial Guidance

Marketwired

YOQNEAM, ISRAEL--(Marketwire - Nov 6, 2012) - Given Imaging Ltd. (NASDAQ: GIVN) today announced financial results for the third quarter ended September 30, 2012. 

Revenues were $45.4 million in the third quarter of 2012, compared to $44.7 million in the third quarter of 2011. Excluding the negative impact of foreign currency translation, third quarter 2012 revenues were $46.3 million, a four percent increase compared to the same period last year. 

Gross margin on a GAAP basis in the third quarter of 2012 was 77.5 percent, compared to 77.1 percent in the third quarter of 2011. Gross margin on a non-GAAP basis in the third quarter of 2012 was 78.3 percent, compared to 77.6 percent in the third quarter of 2011. The increase in non-GAAP gross margin is attributable mainly to improved gross margins of the functional diagnostic products.

On a GAAP basis, operating profit was $6.5 million, compared to $4.1 million in the third quarter of 2011. Non-GAAP operating profit was $8.5 million, compared to $5.8 million in the third quarter of 2011. On a GAAP basis, net income for the third quarter of 2012 increased 58 percent to $6.0 million, or $0.19 per share, compared to $3.8 million, or $0.12 per share, in the same quarter of last year. On a non-GAAP basis, net income for the third quarter of 2012 increased 47 percent to $7.9 million, or $0.25 per share on a fully diluted basis, compared to $5.3 million, or $0.17 per share on a fully diluted basis, in the third quarter of 2011.

A reconciliation of GAAP results to non-GAAP results is attached.

Cash and cash equivalents, short-term investments and marketable securities on September 30, 2012 totaled $119.1 million.

"We are pleased that our focus on increasing profitability resulted in a significant increase in third quarter net income. On the top line we achieved, a solid six percent increase in revenues in the Americas region which was driven by sales of our functional GI diagnostics products. This is the third consecutive quarter of revenue growth in the region, which represents our largest market," said Homi Shamir, president and CEO, Given Imaging. "We remain committed to enhance the growth of our company as evidenced by our recent acquisition of the assets of the SmartPill Corporation. We continue to explore additional strategic alternatives that will help make Given Imaging an even stronger company for the benefit of our customers and shareholders."

Recent Developments

PillCam® COLON 2 U.S. Regulatory Update

  • The Company recently had a positive meeting with the U.S. Food and Drug Administration (FDA) to discuss the process for market clearance of the PillCam COLON 2 capsule for the visualization of the colon. Based on the meeting, the company plans to submit this product for FDA clearance in the next few weeks under the direct de novo route.

PillCam COLON 2 Regulatory Submission in Japan

  • In September, the Company announced that it filed for PillCam COLON 2 regulatory approval in Japan. The submission to the Japanese Pharmaceuticals and Medical Devices Agency (PMDA) includes the results of the PillCam COLON 2 pivotal clinical trial which was designed to evaluate the PillCam COLON 2 as a tool to visualize the mucosal layer of the colon for pathologies including colorectal cancer.

SmartPill Acquisition

  • In October, Given Imaging announced the acquisition of the assets related to the SmartPill® GI Monitoring System from The SmartPill Corporation, a U.S.-based company, for $6 million and an earn-out component, based on sales of the SmartPill product between 2013 and 2016. The SmartPill System measures gastric emptying and total GI (stomach, small bowel and colon) transit times and is used to evaluate motility disorders like gastroparesis and constipation. A Category 1 CPT code with a value of $873.25 becomes effective on January 1, 2013 for the SmartPill Wireless Motility Capsule Procedure.

Strategic Alternatives Evaluation

  • Given Imaging recently announced that it is evaluating a range of strategic options, including preliminary non-binding indications of interest received from a number of parties relating to a possible merger or sale of the Company. The Company intends to continue to actively explore these and other alternatives, including a strategic alliance or additional acquisitions. The Board of Directors has appointed an executive committee consisting of the Chairman and two independent directors to oversee the process. The investment banking firm Barclays is assisting the Company in this process.

Third Quarter 2012 Revenue Analysis

Revenues in the Americas region in the third quarter of 2012 increased by six percent to $28.6 million from $26.9 million in the same period last year. Revenues in the EMEA region decreased by six percent to $10.1 million compared to $10.7 million in the same period last year due to lower PillCam sales in the southern European countries and the weakness of the Euro. Excluding the negative impact of foreign currency translation, revenues in the EMEA region increased by $0.3 million, or three percent compared to the same period last year. APAC revenues decreased by six percent to $6.6 million, compared to $7.1 million in the same period in 2011.

Worldwide PillCam SB sales were 58,200 capsules in the third quarter of 2012, compared to 58,900 capsules in the same period last year. PillCam SB sales in the Americas region were 35,000 capsules, compared to 34,800 capsules in the third quarter last year. PillCam SB sales in the EMEA region increased by two percent to 14,100 capsules, compared to 13,800 capsules in the third quarter of 2011, while PillCam SB sales in the APAC region decreased by 10 percent to 9,200 capsules, compared to 10,200 capsules in the same period in 2011, due to lower PillCam sales in China.

Worldwide sales of functional GI diagnostics products including the Bravo pH Monitoring System, Digitrapper pH-Z and ManoScan increased by five percent to $13.2 million in the third quarter of 2012 compared to $12.6 million in the same period last year. In the Americas region, functional diagnostics products revenue increased by 15% in the third quarter of 2012 to $10.8 million compared to $9.4 million in the same period last year. Functional GI diagnostics revenue in the EMEA region increased by four percent to $1.8 million, while revenue in the APAC region was $0.6 million.

Supplemental third quarter data can be found at www.givenimaging.com in the Investor Relations section.

Nine Month Financial Results

For the nine month period ended September 30, 2012, revenues increased by two percent to $131.8 million compared to $129.5 million in the same period last year. Revenues in the Americas region in the first nine months of 2012 increased by eight percent to $83.9 million from $78 million in the same period last year. Revenues in the EMEA region decreased by seven percent to $31.6 million compared to $33.8 million in the same period last year due to lower PillCam sales in the southern European countries and the weakness of the Euro. Excluding the negative impact of foreign currency translation, revenues in the EMEA region increased by $0.6 million, or two percent compared to the same period last year. EMEA revenues in the first nine months of 2012 denominated in local currencies increased by two percent compared to the same period last year. APAC revenues decreased by eight percent to $16.3 million, compared to $17.7 million in the same period in 2011. The decrease is attributable to weakness in sale of functional GI diagnostics products in the Far East and to lower capsule sales in the first half of 2012 in Australia and Japan.

Worldwide PillCam SB sales increased by one percent to 173,900 capsules in the first nine months of 2012, compared to 171,800 capsules in the same period last year. PillCam SB sales in the Americas region were approximately 105,200 capsules, compared to the 104,400 capsules that were sold in the first nine months of 2011. PillCam SB sales in the EMEA region increased by two percent to 44,700 capsules, compared to 44,000 capsules in the first nine months of 2011, while PillCam SB sales in the APAC region increased by three percent to 24,000 capsules, compared to 23,400 capsules in the same period in 2011.

Worldwide sales of Given Imaging's functional GI diagnostics products increased by 13 percent to $38.2 million in the first nine months of 2012 compared to $33.8 million in the same period last year. In the Americas region, functional GI diagnostics product revenue increased by 20% in the first nine months of 2012 to $30.7 million compared to $25.5 million in the same period last year due to higher sales of Sierra Scientific products. Functional diagnostics revenue in the EMEA region were $5.2 million, slightly lower than the first nine months of 2011, while revenue in the APAC region was $2.2 million compared to $2.7 million in the same period in 2011.

Gross margin on a GAAP basis in the first nine months of 2012 was 76.8 percent, compared to 76.4 percent in the same period in 2011. Gross margin on a non-GAAP basis in the first nine months of 2012 was 77.6 percent, compared to 77.0 percent in the same period in 2011.

On a GAAP basis, operating profit was $10.2 million in the first nine months of 2012, compared to $8.1 million in the same period in 2011. Non-GAAP operating profit was $16.1 million, compared to $14.5 million in the same period in 2011. On a GAAP basis, net income for the first nine months of 2012 increased 46 percent to $9.2 million, or $0.30 per share, compared to $6.4 million, or $0.20 per share, in the same period last year. On a non-GAAP basis, net income for the first nine months of 2012 increased 20 percent to $14.9 million, or $0.48 per share on a fully diluted basis, compared to $12.4 million, or $0.40 per share on a fully diluted basis, in the same period in 2011.

2012 Guidance

The Company is reaffirming its revenue guidance for fiscal year 2012. The Company expects its 2012 revenues to be between $185 million and $190 million. The Company expects that its 2012 earnings per share to be between $0.45 and $0.55 on a GAAP basis, and between $0.70 and $0.80 on a non-GAAP basis. 

Conference Call / Webcast Information

Given Imaging will host a conference call on Wednesday, November 7, 2012 at 9:00am ET, 4:00pm Israel time to discuss third quarter 2012 financial results. To participate in the teleconference, please dial the following numbers fifteen minutes before the call is scheduled to begin: U.S. and Canada, 1-888-297-0339; Israel, 1-80-924-5905. Callers in other countries should dial 719-325-2492. The call will also be webcast live at www.givenimaging.com

A replay of the call will be available for two weeks on the company's website, or until November 21, 2012, by dialing 888-203-1112. Callers in Israel should dial 1-80-924-6038. Callers outside of the U.S. and Israel should dial 719-457-0820. The replay participant code is 7043550.

Use of Non-GAAP Measures

This press release provides financial measures for net income and basic and diluted earnings per share that exclude certain items and are therefore not calculated in accordance with generally accepted accounting principles (GAAP). Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance that enhances management's and investors' ability to evaluate the Company's net income and earnings per share and to compare it with historical net income and earnings per share.

The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management uses both GAAP and non-GAAP measures when evaluating the business internally and therefore felt it is important to make these non-GAAP adjustments available to investors.

About Given Imaging Ltd.
Since pioneering the field of capsule endoscopy in 2001, Given Imaging has become a world leader in GI medical devices, offering health care providers a range of innovative options for visualizing, diagnosing and monitoring the digestive system. The company offers a broad product portfolio including PillCam® capsule endoscope for the small bowel, esophagus and colon. The company also offers industry-leading GI functional diagnostic solutions including ManoScan™ high-resolution manometry, Bravo® capsule-based pH monitoring, Digitrapper® pH-Z impedance, and the SmartPill® GI monitoring systems. Given Imaging is committed to delivering breakthrough innovations to the GI community and supporting its ongoing clinical needs. Given Imaging's headquarters are located in Yoqneam, Israel, with operating subsidiaries in the United States, Germany, France, Japan, Australia, Vietnam, Hong Kong and Brazil. For more information, please visit www.givenimaging.com.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, projections about our business and our future revenues, expenses and profitability. Forward-looking statements may be, but are not necessarily, identified by the use of forward-looking terminology such as "may," "anticipates," "estimates," "expects," "intends," "plans," "believes," and words and terms of similar substance. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual events, results, performance, circumstances or achievements of the Company to be materially different from any future events, results, performance, circumstances or achievements expressed or implied by such forward-looking statements. Such forward-looking statements include statements relating to the Company exploring strategic alternatives and considering possible strategic transactions involving the Company. Factors that could cause actual events, results, performance, circumstances or achievements to differ from such forward-looking statements include, but are not limited to, the ability of the Company to reach agreement on any strategic alternative and/or to complete any such alternative, as well as the following: (1) our ability to develop and bring to market new products, (2) our ability to successfully complete any necessary or required clinical studies with our products, (3) our ability to receive regulatory clearance or approval to market our products or changes in regulatory environment, (4) our success in implementing our sales, marketing and manufacturing plans, (5) the level of adoption of our products by medical practitioners, (6) the emergence of other products that may make our products obsolete, (7) lack of an appropriate bowel preparation materials to be used with our PillCam COLON capsule, (8) protection and validity of patents and other intellectual property rights, (9) the impact of currency exchange rates, (10) the effect of competition by other companies, (11) the outcome of significant litigation, (12) our ability to obtain reimbursement for our product from government and commercial payors, (13) quarterly variations in operating results, (14) the possibility of armed conflict or civil or military unrest in Israel, (15) the impact of global economic conditions, (16) our ability to successfully integrate acquired businesses, (17) changes and reforms in applicable healthcare laws and regulations, (18) quality issues and adverse events related to our products, such as capsule retention, aspiration and failure to attach or detach, bleeding or perforation that could require us to recall products and impact our sales and net income, and (19) other risks and factors disclosed in our filings with the U.S. Securities and Exchange Commission, including, but not limited to, risks and factors identified under such headings as "Risk Factors," "Cautionary Language Regarding Forward-Looking Statements" and "Operating Results and Financial Review and Prospects" in the Company's Annual Report on Form 20-F for the year ended December 31, 2011. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except to the extent expressly required under applicable law, the Company undertakes no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events.

Financial Tables Follow

 
 
Given Imaging Ltd. and its Consolidated Subsidiaries
Excluded Items
For the Three Months Ended September 30, 2011 and 2012
(Unaudited, dollars in thousands)
 
   
Gross
Profit
  Research
And
Development
  Selling
And
Marketing
  General
And
Admin
  Tax
Expense
(Benefit)
   

Total
                                       
Three month period ended September 30, 2012                                      
                                       
Compensation expenses   $ -   $ 194   $ 696   $ 741   $ -     $ 1,631
Sierra PPA     348     -     81     -     (170 )     259
Total   $ 348   $ 194   $ 777   $ 741   $ (170 )   $ 1,890
                                       
Three month period ended September 30, 2011                                      
                                       
Compensation expenses   $ -   $ 157   $ 475   $ 738   $ -     $ 1,370
Sierra PPA     237     -     81     -     (126 )     192
Total   $ 237   $ 157   $ 556   $ 738   $ (126 )   $ 1,562
                                       
                                       
                                       
Excluded Items
For the Nine Months Ended September 30, 2011 and 2012
(Unaudited, dollars in thousands)
                           
   
Gross
Profit
  Research
And
Development
  Selling
And
Marketing
  General
And
Admin
  Tax
Expense
(Benefit)
   

Total
                                       
Nine month period ended September 30, 2012                                      
                                 
                                       
Compensation expenses   $ -   $ 544   $ 1,434   $ 2,639   $ -     $ 4,617
Sierra PPA     1,044     -     243     -     (514 )     773
Total   $ 1,044   $ 544   $ 1,677   $ 2,639   $ (514 )   $ 5,390
                                       
Nine month period ended September 30, 2011                                      
                                       
                                       
Compensation expenses   $ -   $ 499   $ 1,535   $ 3,438   $ -     $ 5,472
Sierra PPA     711     -     243     -     (381 )     573
Total   $ 711   $ 499   $ 1,778   $ 3,438   $ (381 )   $ 6,045
                         
                         
                         
Given Imaging Ltd. and its Consolidated Subsidiaries
Reconciliation of GAAP results to non-GAAP results
For the three months ended September 30, 2011 and 2012
Condensed, in thousands except share and per share data
                             
 
 
 
   
 
GAAP
  Q3/12
Specified
Items (*)
 
 
 
   
Non
GAAP
   
 
GAAP
  Q3/11
Specified
Items (*)
 
 
 
   
Non
GAAP
                                         
Gross profit   $ 35,204   $ 348     $ 35,552   $ 34,466   $ 237     $ 34,703
Research and development, net     5,185     (194 )     4,991     6,847     (157 )     6,690
Sales and marketing     17,939     (777 )     17,162     18,006     (556 )     17,450
General and administrative     5,634     (741 )     4,893     5,267     (738 )     4,529
Income tax expense     662     170       832     780     126       906
Net income attributable to shareholders   $ 6,006   $ 1,890     $ 7,896   $ 3,762   $ 1,562     $ 5,324
Diluted EPS attributable to shareholders   $ 0.19   $ 0.06     $ 0.25   $ 0.12   $ 0.05     $ 0.17
                                         
(*) See specified items                                        
                                         
                                         
                                         
Given Imaging Ltd. and its Consolidated Subsidiaries
Reconciliation of GAAP results to non-GAAP results
For the nine months ended September 30, 2011 and 2012
Condensed, in thousands except share and per share data
                         
 
 
 
 
 
 
 
 
GAAP
 
 
 
YTD 12
Specified
Items (*)
 
 
 
 
 
 
 
Non
GAAP
 
 
 
 
 
GAAP
 
 
 
YTD 11
Specified
Items (*)
 
 
 
 
 
 
 
Non
GAAP
                                         
Gross profit   $ 101,183   $ 1,044     $ 102,227   $ 98,956   $ 711     $ 99,667
Research and development, net     18,530     (544 )     17,986     17,927     (499 )     17,428
Sales and marketing     55,431     (1,677 )     53,754     55,124     (1,778 )     53,346
General and administrative     16,839     (2,639 )     14,200     17,518     (3,438 )     14,080
Income tax expense     1,646     514       2,160     2,088     381       2,469
Net income attributable to shareholders   $ 9,250   $ 5,390     $ 14,640   $ 6,356   $ 6,045     $ 12,401
Diluted EPS attributable to shareholders   $ 0.29   $ 0.17     $ 0.46   $ 0.20   $ 0.20     $ 0.40
                                   
(*) See specified items                                  
                                   
                                   
                                         
Given Imaging Ltd. and its Consolidated Subsidiaries
Interim Consolidated Balance Sheets
In thousands except share data
(Unaudited)
 
    September 30   December 31
    2012   2011
Assets            
             
Current assets            
Cash and cash equivalents   $ 42,350   $ 24,285
Short-term investments     37,162     64,762
Accounts receivable:            
  Trade     30,229     32,406
  Other     4,596     5,259
Inventories     24,988     22,921
Prepaid expenses     2,630     1,373
Deferred tax assets     3,613     1,538
Advances to suppliers     1,416     1,207
             
Total current assets     146,984     153,751
             
             
Assets held for employee severance payments     7,264     6,854
             
Long-term investments     39,627     16,003
             
Non-current Inventory     4,654     4,926
             
Other long term assets     1,046     1,266
             
Fixed assets, at cost, less accumulated depreciation     12,516     12,301
             
Intangible assets, less accumulated amortization     28,308     29,075
             
Goodwill     24,089     24,089
             
             
Total Assets   $ 264,488   $ 248,265
   
   
   
Given Imaging Ltd. and its Consolidated Subsidiaries  
Interim Consolidated Balance Sheets  
In thousands except share data  
(Unaudited)  
   
    September 30     December 31  
    2012     2011  
Liabilities and equity                
                 
Current liabilities                
                 
Current installments of obligation under capital lease   $ 44     $ 139  
Accounts payable:                
  Trade     8,151       8,081  
  Other     27,295       28,397  
Deferred income     559       521  
Total current liabilities     36,049       37,138  
                 
Long-term liabilities                
Obligation under capital lease, net     86       120  
Liability in respect of employees' severance payments     8,024       7,720  
Deferred tax liabilities     4,848       5,362  
Total long-term liabilities     12,958       13,202  
Total liabilities     49,007       50,340  
                 
Equity                
Shareholders' equity                
Ordinary Shares, NIS 0.05 par value each (90,000,000 shares authorized; 31,007,088 and 30,448,838 shares issued and fully paid as of September 30, 2012 and December 31, 2011, respectively)    


367
     


359
 
Additional paid-in capital     216,814       208,838  
Capital reserve     1,591       2,051  
Accumulated other comprehensive income (loss)     188       (885 )
Accumulated deficit     (3,479 )     (12,729 )
Total shareholders' equity     215,481       197,634  
Non-controlling interest     -       291  
Total Equity     215,481       197,925  
                 
                 
Total liabilities and equity   $ 264,488     $ 248,265  
                 
                 
                 
Given Imaging Ltd. and its Consolidated Subsidiaries  
Interim Consolidated Statements of Operations  
In thousands except share and per share data  
(Unaudited)  
   
    Nine-month period ended
September 30
    Three-month period ended
September 30
    Year ended
December 31
2011
 
    2012     2011     2012     2011      
                                         
Revenues   $ 131,754     $ 129,471     $ 45,403     $ 44,729     $ 177,955  
                                         
Cost of revenues     (30,571 )     (30,515 )     (10,199 )     (10,263 )     (41,466 )
                                         
Gross profit     101,183       98,956       35,204       34,466       136,489  
                                         
Operating expenses                                        
Research and development, gross     (19,536 )     (18,743 )     (5,406 )     (7,128 )     (26,129 )
                                         
Government grants     1,006       816       221       281       1,113  
Research and development, net     (18,530 )     (17,927 )     (5,185 )     (6,847 )     (25,016 )
                                         
Sales and marketing     (55,431 )     (55,124 )     (17,939 )     (18,006 )     (75,014 )
General and administrative     (16,839 )     (17,518 )     (5,634 )     (5,267 )     (23,078 )
Other, net     (163 )     (324 )     7       (248 )     (397 )
                                         
Total operating expenses     (90,963 )     (90,893 )     (28,751 )     (30,368 )     (123,505 )
                                         
Operating income     10,220       8,063       6,453       4,098       12,984  
Financing income, net     583       460       215       438       1,343  
                                         
Income before taxes on income     10,803       8,523       6,668       4,536       14,327  
Income tax expense     (1,646 )     (2,088 )     (662 )     (780 )     (2,158 )
                                         
Net income     9,157       6,435       6,006       3,756       12,169  
                                         
Net loss (income) attributable to non-controlling interest     93       (79 )     -       6       (191 )
                                         
Net income attributable to shareholders   $ 9,250     $ 6,356     $ 6,006     $ 3,762     $ 11,978  
                                         
Net change in respect of available for sale securities     1,073       (860 )     783       (752 )     (980 )
Total comprehensive income attributable to shareholders   $ 10,323     $ 5,496     $ 6,789     $ 3,010     $ 10,998  
                                         
Total comprehensive income (loss) attributable to non-controlling interest    

(93
)    

79
     

-
     

(6
)    

 191
 
                                         
Total comprehensive income   $ 10,230     $ 5,575     $ 6,789     $ 3,004     $ 11,189  
                                         
Earnings per share                                        
                                         
Basic Earnings attributable to shareholders per Ordinary Share   $
0.30
    $
0.21
    $
0.19
    $
0.12
    $
0.40
 
                                         
Diluted Earnings attributable to shareholders per Ordinary Share   $
0.29
    $
0.20
    $
0.19
    $
0.12
    $
0.39
 
                                         
Weighted average number of Ordinary Shares used to compute basic Earnings per Ordinary share    


30,791,872
     


30,136,123
     


30,982,259
     


30,389,184
     


30,212,787
 
                                         
Weighted average number of Ordinary Shares used to compute diluted Earnings per Ordinary share    


31,475,497
     


31,088,653
     


31,403,833
     


31,141,006
     


31,089,499
 
   
   
   
Given Imaging Ltd. and its Consolidated Subsidiaries  
Consolidated Statements of Cash Flows  
In thousands  
(Unaudited)  
   
    Nine-month period ended
September 30
    Three-month period ended
September 30
    Year ended
December 31
2011
 
2012     2011 2012     2011
                                         
Cash flows from operating activities:                                        
Net income   $ 9,157     $ 6,435     $ 6,006     $ 3,756     $ 12,169  
Adjustments required to reconcile net income to net cash provided by operating activities:                                        
Depreciation and amortization     6,320       6,193       2,109       2,123       8,296  
Deferred tax assets     (2,075 )     (29 )     (224 )     233       100  
Deferred tax liabilities     (514 )     (381 )     (170 )     (126 )     (509 )
Stock based compensation     4,617       5,472       1,631       1,370       7,363  
Loss (income) from disposal of long term assets    
173
     
349
     
(3
)    
249
     
397
 
Other     (44 )     123       2       92       158  
Decrease (increase) in accounts receivable - trade    
2,027
     
(1,943
)    
(1,165
)    
(1,773
)    
(4,544
)
Decrease(increase) in accounts receivable - other    
1,298
     
1,465
     
829
     
129
     
(968
)
Decrease (increase) in prepaid expenses    
(1,257
)    
(474
)    
(377
)    
(235
)    
212
 
Increase in advances to suppliers    
(209
)    
(743
)    
383
     
13
     
(766
)
Increase in inventories    
(1,795
)    
(3,113
)    
(1,111
)    
(1,011
)    
(3,145
)
Increase (decrease) inaccounts payable    
(978
)    
(3,329
)    
1,203
     
1,071
     
1,433
 
Increase (decrease) indeferred income    
38
     
(204
)    
62
     
(52
)    
(267
)
Net cash provided by operating activities    
16,758
     
9,821
     
9,175
     
5,839
     
19,929
 
Cash flows from investing activities:                                        
Purchase of fixed assets and intangible assets    
(5,791
)    
(9,254
)    
(2,474
)    
(1,196
)    
(10,551
)
Other long term assets, net     (608 )     (33 )     2       5       (39 )
Changes in short term deposits, net    
24,906
     
(5,617
)    
8,487
     
(10,409
)    
(20,176
)
Proceeds from sales and maturity of marketable securities    

4,050
     

10,140
     

-
     

1,000
     

11,141
 
Investments in marketable securities    
(23,781
)    
(16,910
)    
(321
)    
(2,000
)    
(16,910
)
Net cash provided by (used in) investing activities    
(1,224
)    
(21,674
)    
5,694
     
(12,600
)    
(36,535
)
                                         
                                         
                                         
Given Imaging Ltd. and its Consolidated Subsidiaries  
Consolidated Statements of Cash Flows  
In thousands  
(Unaudited)  
   
    Nine-month period ended
September 30
    Three-month period ended
September 30
    Year ended
December 31
 
    2012     2011     2012     2011     2011  
                                         
Cash flows from financing activities:                                        
Principal payments on capital lease obligation     (124 )     (125 )     (41 )     (43 )     (168 )
Proceeds from the issuance of Ordinary Shares     3,367       6,304       442       1,023       6,585  
                                         
Purchase of shares from a non-controlling shareholder in a subsidiary     (658 )     -       -       -       -  
Net cash provided by financing activities     2,585       6,179       401       980       6,417  
                                         
Effect of exchange rate changes on cash and cash equivalents     (54 )     (88 )     (11 )     (178 )     (145 )
                                         
Increase (decrease) in cash and cash equivalents     18,065       (5,762 )     15,259       (5,959 )     (10,334 )
Cash and cash equivalents at beginning of period     24,285       34,619       27,091       34,816       34,619  
                                         
Cash and cash equivalents at end of period   $ 42,350     $ 28,857     $ 42,350     $ 28,857     $ 24,285  
                                         
Supplementary cash flow information                                        
Income taxes paid   $ 2,054     $ 1,689     $ 897     $ 594     $ 2,179  
                                         
Contact:
For further information contact:

Fern Lazar/David Carey
Lazar Partners Ltd.
1-212-867-1768
flazar@lazarpartners.com
dcarey@lazarpartners.com

Israel Investor
Nava Ladin
Gelbart Kahana Investor Relations
+972-3-6074717
nava@gk-biz.com

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