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Kornit Digital Reports Third Quarter 2022 Results

Kornit Digital Ltd
Kornit Digital Ltd
  • Third quarter revenues of $66.8 million, net of non-cash warrants impact of $5.6 million

  • Third quarter GAAP operating loss of $21.4 million; non-GAAP operating loss of $13.0 million, net of $5.6 million attributed to the non-cash impact of warrants

  • Consumables and Services revenues up on solid demand from key accounts, as well as robust contribution from Atlas MAX upgrades

  • Macro-related and other pressures continue; Long-term opportunities remain firmly intact

  • Continue to take appropriate steps to return to sustainable, profitable growth

ROSH-HA`AYIN, Israel, Nov. 09, 2022 (GLOBE NEWSWIRE) -- Kornit Digital Ltd. (“Kornit” or “the Company”) (Nasdaq: KRNT), a worldwide market leader in sustainable, on-demand, digital fashionX and textile production technologies, reported today results for the third quarter ended September 30, 2022.

“Consumables and Services revenues grew nicely from the second quarter, and year-over-year, due to solid demand from our key strategic accounts as they gear up for their peak season, as well as the execution of a major fleet upgrade to Atlas MAX with a large strategic customer,” said Ronen Samuel, Kornit Digital’s Chief Executive Officer. “And while we continue to see good receptivity and interest for our Atlas MAX family of products, macro-related headwinds and other pressures continue to impact customers’ systems purchasing decisions and their projected pace of growth.”

Mr. Samuel concluded, “We are a resilient company, with the right strategy, product and service offerings, a pristine balance sheet, and a global team that is energized, dedicated, and focused to move the Company forward. We have and will continue to take the necessary steps to return
to sustainable, profitable growth.”

The following table compares the adverse, non-cash impact that the Company’s outstanding warrants had on the Company’s results of operations during the third quarters of 2022 and 2021, respectively:

 

Third Quarter Warrants Impact

 

 

 

Three Months Ended

 

September 30,

 

2022

 

2021

 

Net of
Warrants
Impact

 

Warrants
Impact

 

Net of
Warrants
Impact

 

Warrants
Impact

 

 

 

 

 

 

 

 

Revenue

$66.8M

 

$5.6M

 

$86.7M

 

$7.9M

Non-GAAP Gross Margin

35.5%

 

5.0%

 

47.8%

 

4.3%

Non-GAAP Operating Margin

(19.4%)

 

9.3%

 

9.9%

 

7.5%

Non-GAAP Net Margin

(16.0%)

 

9.0%

 

13.3%

 

7.2%

Non-GAAP Diluted Earnings (Loss) Per Share

($0.21)

 

$0.11

 

$0.24

 

$0.16

 

 

 

 

 

 

 

 

“Our infrastructure was built to be profitable at a materially higher revenue run rate,” said Alon Rozner, Kornit Digital’s Chief Financial Officer. “As macro-related and other pressures continue to impact our business in the near-term, we are building upon the decisive expense reductions and other initiatives performed earlier this year to adjust the business to the near-term market environment.”

Third Quarter 2022 Results of Operations

  • Total revenue for the third quarter of 2022 was $66.8 million, net of $5.6 million attributed to the non-cash impact of warrants, compared to $86.7 million, net of $7.9 million attributed to the non-cash impact of warrants in the prior year period.

  • GAAP net loss for the third quarter of 2022 was $19.0 million, or ($0.38) per basic share, compared to net income of $3.9 million, or $0.08 per diluted share, for the third quarter of 2021.

  • Non-GAAP net loss for the third quarter of 2022 was $10.7 million, or ($0.21) per basic share, net of $0.11 per basic share attributed to the non-cash impact of warrants, compared to non-GAAP net income of $11.5 million, or $0.24 per diluted share, net of $0.16 per diluted share attributed to the non-cash impact of warrants, for the third quarter of 2021.

Fourth Quarter 2022 Guidance

For the fourth quarter of 2022, the Company expects revenue to be in the range of $66 million to $70 million; non-GAAP operating margins to be in the range of -6% to -10% of revenue. Consistent with past practice, this guidance excludes the impact of the fair value of issued warrants in the quarter.

Third Quarter Earnings Conference Call Information

The Company will host a conference call today at 8:30 a.m. ET, or 3:30 p.m. Israel time, to discuss the results, followed by a question-and-answer session with the investor community.

A live webcast of the call can be accessed at ir.kornit.com. To access the call, participants may dial toll-free at 1-877-300-8521 or 1-412-317-6026. The toll-free Israeli number is 1-80-9213284. The conference confirmation code is 10171559.

To listen to a replay of the conference call, dial toll-free 1-844-512-2921 or 1-412-317-6671 (international) and enter confirmation code 10171559. The telephonic replay will be available approximately five hours after the completion of the live call until 11:59 pm ET on Wednesday, November 23, 2022. The call will also be available for replay via the webcast link on Kornit’s Investor Relations website.

About Kornit Digital

Kornit Digital (NASDAQ: KRNT) is a worldwide market leader in sustainable, on-demand, digital fashionx and textile production technologies. The Company is writing the operating system for fashion with end-to-end solutions including digital printing systems, inks, consumables, and an entire global ecosystem that manages workflows and fulfillment. Headquartered in Israel with offices in the USA, Europe, and Asia Pacific, Kornit Digital serves customers in more than one hundred countries and states worldwide. To learn more about how Kornit Digital is boldly transforming the world of fashion and textiles, visit www.kornit.com.

Forward Looking Statements

Certain statements in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other U.S. securities laws. Forward-looking statements are characterized by the use of forward-looking terminology such as “will,” “expects,” “anticipates,” “continue,” “believes,” “should,” “intended,” “guidance,” “preliminary,” “future,” “planned,” or other words. These forward-looking statements include, but are not limited to, statements relating to the Company’s objectives, plans and strategies, statements of preliminary or projected results of operations or of financial condition and all statements that address activities, events, or developments that the Company intends, expects, projects, believes or anticipates will or may occur in the future. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. The Company has based these forward-looking statements on assumptions and assessments made by its management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated in these forward-looking statements include, among other things: the duration and severity of current adverse macro-economic conditions, such as supply-chain delays, inflationary pressures, and rising interest rates, which have been impacting, and may continue to impact, in an adverse manner, the Company’s operations, financial position and cash flows, in part due to the adverse impact on the Company’s customers and suppliers; the Company’s degree of success in developing, introducing and selling new or improved products and product enhancements including specifically the Company’s Poly Pro and Presto products; the extent of the Company’s ability to consummate sales to large accounts with multi-system delivery plans; the degree of the Company’s ability to fill orders for Kornit’s systems; the extent of the Company’s ability to increase sales of Kornit’s systems, ink and consumables; the extent of the Company’s ability to leverage Kornit’s global infrastructure build-out; the development of the market for digital textile printing; the availability of alternative ink; competition; sales concentration; changes to the Company’s relationships with suppliers; the extent of the Company’s success in marketing; whether court approval is received to effect the Company’s proposed share repurchase program; and those additional factors referred to under “Risk Factors” in Item 3.D of the Company’s Annual Report on Form 20-F for the year ended December 31, 2021, filed with the SEC on March 30, 2022. Any forward-looking statements in this press release are made as of the date hereof, whether as a result of new information, future events or otherwise, except as required by law.

Non-GAAP Discussion Disclosure

The non-GAAP financial measures presented by the Company in this press release and in the accompanying conference call to discuss the Company’s quarterly results consist of GAAP financial measures adjusted to exclude the impact of share-based compensation expenses, amortization of acquired intangible assets, acquisition related expenses, foreign exchange differences associated with ASC 842 and the related tax effect of the foregoing. The purpose of such adjustments is to provide an indication of the Company’s performance exclusive of non-cash charges and other items that are considered by management to be outside of the Company’s core operating results. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Furthermore, the non-GAAP measures are regularly used internally to understand, manage, and evaluate the Company’s business and make operating decisions, and the Company believes that they are useful to investors as a consistent and comparable measure of the ongoing performance of the Company’s business. However, the Company’s non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the Company’s consolidated financial statements prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. Please see the reconciliation table included below in order to compare our non-GAAP financial measures with the most directly comparable financial measures presented in accordance with GAAP.

Investor Contact:                                                        
Andrew G. Backman
Global Head of Investor Relations
andrew.backman@kornit.com


KORNIT DIGITAL LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

 

 

September 30,

 

December 31,

 

 

 

2022

 

 

 

2021

 

 

 

(Unaudited)

 

 

ASSETS

 

 

 

 

CURRENT ASSETS:

 

 

 

 

Cash and cash equivalents

 

$

66,693

 

 

$

611,551

 

Short-term bank deposit

 

$

360,122

 

 

 

9,168

 

Marketable securities

 

$

20,608

 

 

 

28,116

 

Trade receivables, net

 

$

63,687

 

 

 

49,797

 

Inventory

 

$

92,223

 

 

 

63,017

 

Other accounts receivable and prepaid expenses

$

18,197

 

 

 

13,694

 

Total current assets

 

 

621,530

 

 

 

775,343

 

 

 

 

 

 

LONG-TERM ASSETS:

 

 

 

 

Marketable securities

 

$

242,348

 

 

$

149,269

 

Deposits and other long-term assets

 

 

3,875

 

 

 

856

 

Severance pay fund

 

 

271

 

 

 

357

 

Deferred taxes

 

 

16,081

 

 

 

9,339

 

Property,plant and equipment, net

 

 

52,364

 

 

 

45,046

 

Operating lease right-of-use assets

 

 

28,057

 

 

 

25,155

 

Intangible assets, net

 

 

10,494

 

 

 

10,063

 

Goodwill

 

 

29,163

 

 

 

25,447

 

Total long-term assets

 

 

382,653

 

 

 

265,532

 

 

 

 

 

 

Total assets

 

$

1,004,183

 

 

$

1,040,875

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

CURRENT LIABILITIES:

 

 

 

 

Trade payables

 

$

24,038

 

 

$

46,448

 

Employees and payroll accruals

 

 

16,567

 

 

 

22,482

 

Deferred revenues and advances from customers

 

5,594

 

 

 

5,401

 

Operating lease liabilities

 

 

4,958

 

 

 

5,058

 

Other payables and accrued expenses

 

 

33,669

 

 

 

17,287

 

Total current liabilities

 

 

84,826

 

 

 

96,676

 

 

 

 

 

 

LONG-TERM LIABILITIES:

 

 

 

 

Accrued severance pay

 

$

1,177

 

 

$

1,543

 

Operating lease liabilities

 

 

21,755

 

 

 

21,900

 

Other long-term liabilities

 

 

886

 

 

 

1,203

 

Total long-term liabilities

 

 

23,818

 

 

 

24,646

 

 

 

 

 

 

SHAREHOLDERS' EQUITY

 

 

895,539

 

 

 

919,553

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$

1,004,183

 

 

$

1,040,875

 

 

 

 

 

 


KORNIT DIGITAL LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

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

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

(Unaudited)

 

(Unaudited)

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

Products

$

52,627

 

 

$

76,560

 

 

$

172,707

 

 

$

206,682

 

Services

 

14,164

 

 

 

10,109

 

 

 

35,513

 

 

 

27,776

 

Total revenues

 

66,791

 

 

 

86,669

 

 

 

208,220

 

 

 

234,458

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

 

 

 

 

 

Products

 

31,789

 

 

 

36,028

 

 

 

96,909

 

 

 

98,457

 

Services

 

13,569

 

 

 

10,109

 

 

 

36,160

 

 

 

26,477

 

Total cost of revenues

 

45,358

 

 

 

46,137

 

 

 

133,069

 

 

 

124,934

 

 

 

 

 

 

 

 

 

Gross profit

 

21,433

 

 

 

40,532

 

 

 

75,151

 

 

 

109,524

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Research and development, net

 

14,684

 

 

 

11,493

 

 

 

42,775

 

 

 

30,736

 

Sales and marketing

 

17,502

 

 

 

15,837

 

 

 

54,917

 

 

 

40,716

 

General and administrative

 

10,616

 

 

 

9,283

 

 

 

30,632

 

 

 

24,972

 

Total operating expenses

 

42,802

 

 

 

36,613

 

 

 

128,324

 

 

 

96,424

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

(21,369

)

 

 

3,919

 

 

 

(53,173

)

 

 

13,100

 

 

 

 

 

 

 

 

 

Financial income, net

 

2,207

 

 

 

219

 

 

 

8,330

 

 

 

2,635

 

Income (loss) before taxes on income (tax benefits)

 

(19,162

)

 

 

4,138

 

 

 

(44,843

)

 

 

15,735

 

 

 

 

 

 

 

 

 

Taxes on income (tax benefits)

 

(130

)

 

 

266

 

 

 

(1,138

)

 

 

1,162

 

Net income (loss)

 

(19,032

)

 

 

3,872

 

 

 

(43,705

)

 

 

14,573

 

 

 

 

 

 

 

 

 

Basic net income (loss) per share

$

(0.38

)

 

$

0.08

 

 

$

(0.88

)

 

$

0.32

 

 

 

 

 

 

 

 

 

Weighted average number of shares

 

 

 

 

 

 

 

used in computing basic net

 

 

 

 

 

 

 

income (loss) per share

 

49,834,417

 

 

 

46,361,164

 

 

 

49,750,458

 

 

 

46,200,884

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income (loss) per share

$

(0.38

)

 

$

0.08

 

 

$

(0.88

)

 

$

0.30

 

 

 

 

 

 

 

 

 

Weighted average number of shares

 

 

 

 

 

 

 

used in computing diluted

 

 

 

 

 

 

 

net income (loss) per share

 

49,834,417

 

 

 

48,116,716

 

 

 

49,750,458

 

 

 

47,846,077

 

 

 

 

 

 

 

 

 


KORNIT DIGITAL LTD.

AND ITS SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS

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

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

(Unaudited)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

Revenues

$

66,791

 

 

$

86,669

 

 

$

208,220

 

 

$

234,458

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP cost of revenues

$

45,358

 

 

$

46,137

 

 

$

133,069

 

 

$

124,934

 

Cost of product recorded for share-based compensation (1)

 

(587

)

 

 

(381

)

 

 

(1,642

)

 

 

(1,000

)

Cost of service recorded for share-based compensation (1)

 

(422

)

 

 

(251

)

 

 

(1,268

)

 

 

(750

)

Intangible assets amortization on cost of product (3)

 

(744

)

 

 

(111

)

 

 

(1,799

)

 

 

(161

)

Intangible assets amortization on cost of service (3)

 

(160

)

 

 

(160

)

 

 

(480

)

 

 

(480

)

Restructuring expenses (4)

 

(396

)

 

 

-

 

 

 

(396

)

 

 

-

 

Non-GAAP cost of revenues

$

43,049

 

 

$

45,234

 

 

$

127,484

 

 

$

122,543

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP gross profit

$

21,433

 

 

$

40,532

 

 

$

75,151

 

 

$

109,524

 

Gross profit adjustments

 

2,309

 

 

 

903

 

 

 

5,585

 

 

 

2,391

 

Non-GAAP gross profit

$

23,742

 

 

$

41,435

 

 

$

80,736

 

 

$

111,915

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP operating expenses

$

42,802

 

 

$

36,613

 

 

$

128,324

 

 

$

96,424

 

Share-based compensation (1)

 

(5,646

)

 

 

(3,438

)

 

 

(14,524

)

 

 

(9,219

)

Acquisition related expenses (2)

 

-

 

 

 

(194

)

 

 

(512

)

 

 

(194

)

Intangible assets amortization (3)

 

(160

)

 

 

(98

)

 

 

(363

)

 

 

(336

)

Restructuring expenses (4)

 

 

(281

)

 

 

-

 

 

 

(281

)

 

 

Non-GAAP operating expenses

$

36,715

 

 

$

32,883

 

 

$

112,644

 

 

$

86,675

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Financial income, net

$

2,207

 

 

$

219

 

 

$

8,330

 

 

$

2,635

 

Foreign exchange losses associated with ASC 842

 

(279

)

 

 

113

 

 

 

(3,408

)

 

 

(302

)

Non-GAAP Financial income , net

$

1,928

 

 

$

332

 

 

$

4,922

 

 

$

2,333

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Taxes on income (tax benefit)

$

(130

)

 

$

266

 

 

$

(1,138

)

 

$

1,162

 

Tax effect on to the above non-GAAP adjustments

 

(45

)

 

 

(2,119

)

 

 

95

 

 

 

(1,954

)

Deferred tax benefit based on an Israeli statutory tax rate

 

(202

)

 

 

(774

)

 

 

125

 

 

 

(1,360

)

Non-GAAP Taxes on income (tax benefit)

$

(377

)

 

$

(2,627

)

 

$

(918

)

 

$

(2,152

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income (loss)

$

(19,032

)

 

$

3,872

 

 

$

(43,705

)

 

$

14,573

 

Share-based compensation (1)

 

6,655

 

 

 

4,070

 

 

 

17,434

 

 

 

10,969

 

Acquisition related expenses (2)

 

-

 

 

 

194

 

 

 

512

 

 

 

194

 

Intangible assets amortization (3)

 

1,064

 

 

 

369

 

 

 

2,642

 

 

 

977

 

Restructuring expenses (4)

 

677

 

 

 

-

 

 

 

677

 

 

 

-

 

Foreign exchange losses associated with ASC 842

 

(279

)

 

 

113

 

 

 

(3,408

)

 

 

(302

)

Tax effect of the above non-GAAP adjustments

 

45

 

 

 

2,119

 

 

 

(95

)

 

 

1,954

 

Deferred tax benefit at the Israeli statutory tax rate

 

202

 

 

 

774

 

 

 

(125

)

 

 

1,360

 

Non-GAAP net income (Loss)

$

(10,668

)

 

$

11,511

 

 

$

(26,068

)

 

$

29,725

 

 

 

 

 

 

 

 

 

 

GAAP diluted earning (loss) per share

$

(0.38

)

 

$

0.08

 

 

$

(0.88

)

 

$

0.30

 

 

 

 

 

 

 

 

 

 

Non-GAAP diluted earning (loss) per share

$

(0.21

)

 

$

0.24

 

 

$

(0.52

)

 

$

0.62

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing GAAP diluted net earning (loss) per share

 

49,834,417

 

 

 

48,116,716

 

 

 

49,750,458

 

 

 

47,846,077

 

 

 

 

 

 

 

 

 

 

Shares used in computing Non-GAAP diluted net earning (loss) per share

 

49,834,417

 

 

 

48,361,472

 

 

 

49,750,458

 

 

 

48,082,118

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Share-based compensation

 

 

 

 

 

 

 

 

Cost of product revenues

$

587

 

 

$

381

 

 

$

1,642

 

 

$

1,000

 

 

Cost of service revenues

 

422

 

 

 

251

 

 

 

1,268

 

 

 

750

 

 

Research and development

 

1,515

 

 

 

739

 

 

 

3,972

 

 

 

1,810

 

 

Sales and marketing

 

2,368

 

 

 

1,318

 

 

 

5,668

 

 

 

3,651

 

 

General and administrative

 

1,763

 

 

 

1,381

 

 

 

4,884

 

 

 

3,758

 

 

 

$

6,655

 

 

$

4,070

 

 

$

17,434

 

 

$

10,969

 

(2) Acquisition related expenses

 

 

 

 

 

 

 

 

General and administrative

$

-

 

 

$

194

 

 

$

512

 

 

$

194

 

 

 

$

-

 

 

$

194

 

 

$

512

 

 

$

194

 

(3) Intangible assets amortization

 

 

 

 

 

 

 

 

Cost of product revenues

$

744

 

 

$

111

 

 

$

1,799

 

 

$

161

 

 

Cost of service revenues

 

160

 

 

 

160

 

 

 

480

 

 

 

480

 

 

Sales and marketing

 

160

 

 

 

98

 

 

 

363

 

 

 

336

 

 

 

$

1,064

 

 

$

369

 

 

$

2,642

 

 

$

977

 

 

 

 

 

 

 

 

 

 

(4) Restructuring expenses

 

 

 

 

 

 

 

 

Cost of product revenues

$

384

 

 

$

-

 

 

$

384

 

 

$

-

 

 

Cost of service revenues

 

12

 

 

 

-

 

 

 

12

 

 

 

-

 

 

Research and development

 

64

 

 

 

-

 

 

 

64

 

 

 

-

 

 

Selling and marketing

 

188

 

 

 

-

 

 

 

188

 

 

 

-

 

 

General and administrative

 

29

 

 

 

-

 

 

 

29

 

 

 

-

 

 

 

$

677

 

 

$

-

 

 

$

677

 

 

$

-

 

 

 

 

 

 

 

 

 

 


KORNIT DIGITAL LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands)

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

(Unaudited)

 

(Unaudited)

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

(19,032

)

 

$

3,872

 

 

$

(43,705

)

 

$

14,573

 

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

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

3,264

 

 

 

1,910

 

 

 

9,166

 

 

 

4,945

 

Fair value of warrants deducted from revenues

 

5,640

 

 

 

7,857

 

 

 

18,161

 

 

 

17,568

 

Share-based compensation

 

6,655

 

 

 

4,070

 

 

 

17,434

 

 

 

10,969

 

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

 

435

 

 

 

(322

)

 

 

1,447

 

 

 

(1,620

)

Realized gain on sale and redemption of marketable securities

 

-

 

 

 

(32

)

 

 

10

 

 

 

(32

)

Change in operating assets and liabilities:

 

 

 

 

 

 

 

Trade receivables, net

 

(3,214

)

 

 

12,798

 

 

 

(12,218

)

 

 

1,713

 

Other accounts receivables and prepaid expenses

 

(4,343

)

 

 

(340

)

 

 

(6,134

)

 

 

(1,853

)

Inventory

 

(2,715

)

 

 

(3,239

)

 

 

(26,567

)

 

 

(3,765

)

Operating leases right-of-use assets and liabilities, net

 

(290

)

 

 

122

 

 

 

(3,147

)

 

 

(397

)

Deferred taxes

 

(577

)

 

 

(2,111

)

 

 

(2,993

)

 

 

(1,866

)

Deposits and other long term assets

 

(1,071

)

 

 

55

 

 

 

(2,392

)

 

 

(76

)

Trade payables

 

(5,960

)

 

 

17

 

 

 

(17,880

)

 

 

(2,400

)

Operating lease liabilities

 

 

 

 

 

 

 

Employees and payroll accruals

 

1,382

 

 

 

6,774

 

 

 

(5,452

)

 

 

8,878

 

Deferred revenues and advances from customers

 

2,581

 

 

 

(3,949

)

 

 

(1,533

)

 

 

(15,350

)

Other payables and accrued expenses

 

12,623

 

 

 

4,803

 

 

 

16,063

 

 

 

10,479

 

Accrued severance pay, net

 

12

 

 

 

59

 

 

 

(280

)

 

 

108

 

Other long - term liabilities

 

(1,046

)

 

 

456

 

 

 

(317

)

 

 

1,256

 

Loss from sale and disposal of property, plant and Equipment

 

526

 

 

 

-

 

 

 

567

 

 

 

-

 

Net cash provided by (used in) operating activities

 

(5,130

)

 

 

32,800

 

 

 

(59,770

)

 

 

43,130

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of property, plant and equipment

 

(2,819

)

 

 

(3,867

)

 

 

(12,266

)

 

 

(9,422

)

Investment in equity securities

 

(273

)

 

 

-

 

 

 

(627

)

 

 

-

 

Acquisition of intangible assets

 

(102

)

 

 

-

 

 

 

(235

)

 

 

-

 

Proceeds from sale of property, plant and equipment

 

16

 

 

 

-

 

 

 

71

 

 

 

-

 

Cash paid in connection with acquisition, net of cash acquired

 

-

 

 

 

(14,991

)

 

 

(14,654

)

 

 

(14,991

)

Investment in bank deposits

 

(100,059

)

 

 

(6,167

)

 

 

(350,954

)

 

 

(16,299

)

Proceeds from sales and redemption of marketable securities

 

-

 

 

 

1,000

 

 

 

1,945

 

 

 

1,000

 

Proceeds from maturity of marketable securities

 

3,976

 

 

 

7,254

 

 

 

21,398

 

 

 

9,304

 

Investment in marketable securities

 

(25,468

)

 

 

(13,800

)

 

 

(129,365

)

 

 

(44,310

)

Net cash provided by (used in) investing activities

 

(124,729

)

 

 

(30,571

)

 

 

(484,687

)

 

 

(74,718

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercise of employee stock options

 

120

 

 

 

2,387

 

 

 

460

 

 

 

4,141

 

Payments related to shares withheld for taxes

 

(179

)

 

 

(516

)

 

 

(861

)

 

 

(1,662

)

Net cash provided by (used in) financing activities

 

(59

)

 

 

1,871

 

 

 

(401

)

 

 

2,479

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (decrease) in cash and cash equivalents

 

(129,918

)

 

 

4,100

 

 

 

(544,858

)

 

 

(29,109

)

Cash and cash equivalents at the beginning of the period

 

196,611

 

 

 

92,568

 

 

 

611,551

 

 

 

125,777

 

Cash and cash equivalents at the end of the period

$

66,693

 

 

$

96,668

 

 

$

66,693

 

 

$

96,668

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash investing and financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of property and equipment on credit

 

1,033

 

 

 

1,907

 

 

 

1,033

 

 

 

1,907

 

Inventory transferred to be used as property and equipment

 

255

 

 

 

51

 

 

 

1,544

 

 

 

931

 

Property, plant and equipment transferred to be used as inventory

 

183

 

 

 

-

 

 

 

192

 

 

 

-

 

Lease liabilities arising from obtaining right-of-use assets

 

790

 

 

 

1,033

 

 

 

7,177

 

 

 

1,517