UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of November 2019
Commission File Number 001-36903
KORNIT DIGITAL LTD.
(Translation of Registrant’s name into English)
12 Ha’Amal Street
Park Afek
Rosh Ha’Ayin 4824096 Israel
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
CONTENTS
On November 18, 2019, Kornit Digital Ltd. (“Kornit”) issued a press release entitled “Kornit Digital Reports Third Quarter 2019 Results,” in which Kornit reported its financial results for the quarter ended September 30, 2019. A copy of that press release is furnished as Exhibit 99.1 hereto.
The U.S. GAAP financial information contained in the (i) consolidated balance sheets, (ii) consolidated statements of operations and (iii) consolidated statements of cash flows included in the press release attached as Exhibit 99.1 to this Report of Foreign Private Issuer on Form 6-K is hereby incorporated by reference into the Registrant’s Registration Statements on Form F-3 (File No. 333-232070) and Form S-8 (File No.’s 333-203970, 333-214015, 333-217039, 333-223794 and 333-230567).
1
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| KORNIT DIGITAL LTD. | ||
| Date: November 18, 2019 | By: | /s/ Guy Avidan |
| Name: | Guy Avidan | |
| Title: | Chief Financial Officer | |
2
Exhibit Index
| Exhibit No. | Description | |
| 99.1 | Press release dated November 18, 2019 entitled “Kornit Digital Reports Third Quarter 2019 Results” |
3
Exhibit 99.1
Investor Contact:
Michael Callahan, ICR
(203) 682-8311
Michael.Callahan@icrinc.com
Kornit Digital Reports Third Quarter 2019 Results
Highlights
| ● | Third quarter revenue of $44.6 million, net of $5.1 million attributed to the non-cash impact of warrants, compared to $37.6 million, net of $1.7 million attributed to the non-cash impact of warrants in the prior year period. |
| ● | Significantly higher year-over-year warrants impact as a result of growth in business with our global strategic account and a higher share price in the period. |
| ● | Third quarter 2019 GAAP operating income of $1.4 million; Non-GAAP operating income of $3.4 million net of $5.1 million attributed to the non-cash impact of warrants. |
| ● | Record quarter for industrial system sales, driven by continued adoption of HD platforms and strong demand for new products. |
| ● | Significant business expansion with strategic accounts amid preparation for peak season. |
| ● | Collaborative business development activities with leading brands led to new customer accounts in athleisure and specialty retail categories. |
Rosh-Ha’Ayin, Israel – November 18, 2019 – Kornit Digital Ltd. (NASDAQ: KRNT), a leading provider of digital printing solutions for the global printed textile industry, today reported results for the third quarter, ended September 30, 2019.
Ronen Samuel, Kornit Digital’s Chief Executive Officer said, “We are very pleased with our third quarter results as we continue to deliver robust top-line growth driven by our new products introduction, including the innovative and market-leading Atlas, PolyPro, and Presto systems. Our reported sales during the period grew to $44.6 million, inclusive of a $5.1 million impact from warrants, as compared to $37.6 million, with a $1.7 million impact from warrants in the prior year. Importantly, the business volume of products sold evidence an impressive growth year-over-year, which underscores the broad market adoption of our latest generation technologies.”
Samuel added, “We have good momentum with both new and existing customers as they ramp into the peak holiday season and are well positioned for a strong finish to 2020. There is a significant market opportunity ahead of us and we continue to invest in the business through expansion of our go-to-market capabilities, enhancements to our global leadership team, and allocation of incremental capital to drive innovation that will propel Kornit towards our long-term goal of reaching $500 million in run-rate sales exiting 2023.”
The following table compares the adverse, non-cash impact that our outstanding warrants had on our results of operations during the third quarters of 2019 and 2018, respectively:
Third Quarter 2019 Warrants Impact
| Three Months Ended | ||||||||||||||||
| September 30, | ||||||||||||||||
| 2019 | 2018 | |||||||||||||||
| Net of Warrants Impact | Warrants Impact | Net of Warrants Impact | Warrants Impact | |||||||||||||
| Revenue | $ | 44.6 | M | $ | 5.1 | M | $ | 37.6 | M | $ | 1.7 | M | ||||
| Non-GAAP Gross Margin | 44.5 | % | 574 | bps | 51.1 | % | 206 | bps | ||||||||
| Non-GAAP Operating Margin | 7.7 | % | 954 | bps | 13.0 | % | 367 | bps | ||||||||
| Non-GAAP Net Margin | 8.7 | % | 944 | bps | 12.9 | % | 368 | bps | ||||||||
| Non-GAAP Diluted Earnings Per Share | $ | 0.09 | $ | 0.12 | $ | 0.13 | $ | 0.05 | ||||||||
Third Quarter 2019 Results of Operations
Third quarter 2019 revenue increased to $44.6 million, net of $5.1 million attributed to the non-cash impact of warrants, compared to $37.6 million, net of $1.7 million attributed to the non-cash impact of warrants in the prior year period. Increased revenue in the quarter was attributable to growth across the Company’s systems portfolio and strong market demand for the recently introduced Atlas, PolyPro, and Presto systems.
On a GAAP basis, third quarter gross profit was $19.5 million, compared to $18.9 million in the prior-year period. Non-GAAP gross profit in the third quarter was $19.9 million, or 44.5% of revenue, compared with $19.2 million, or 51.1% of revenue in the third quarter of 2018. The decrease in gross margin was primarily driven by the increase in impact of warrants and, to a lesser extent, product mix.
On a GAAP basis, total operating expenses in the third quarter were $18.1 million, compared to $15.9 million in the prior year period. Non-GAAP operating expenses in the third quarter increased to $16.4 million, or 36.8% of revenue, compared to $14.3 million, or 38.1% of revenue, in the prior year period.
Third quarter GAAP research and development expenses were $5.6 million, compared to $5.1 million in the prior year period. Third quarter non-GAAP research and development expenses were $5.3 million, or 11.8% of revenue, compared to $4.8 million, or 12.8% of revenue in the prior year period.
Third quarter GAAP sales and marketing expenses were $7.8 million, compared to $6.5 million in the prior year period. Third quarter non-GAAP sales and marketing expenses were $7.1 million, or 16.0% of revenue, compared to $5.9 million, or 15.7% of revenue, in the third quarter of 2018.
Third quarter GAAP general and administrative expenses were $4.7 million, compared to $4.2 million in the prior year period. Third quarter non-GAAP general and administrative expenses were $4.0 million, or 9.0% of revenue, compared to $3.6 million, or 9.6% of revenue, in the prior year period.
2
On a GAAP basis, third quarter operating income was $1.4 million, compared to the prior year period operating income of $3.1 million. Non-GAAP operating income in the third quarter was $3.4 million or 7.7% of revenue, net of $5.1 million attributed to the non-cash impact of warrants, compared to $4.9 million, net of $1.7 million attributed to the non-cash impact of warrants, or 13.0% of revenue, in the prior year period. Lower non-GAAP operating income compared to the prior year was entirely driven by the non-cash impact of warrants, partially offset by stronger system sales volume during the period.
On a GAAP basis, the Company reported net income of $2.0 million, or $0.05 per diluted share, compared to net income of $3.1 million, or $0.09 per diluted share, in the third quarter of 2018. Non-GAAP net income for the third quarter of 2019 was $3.9 million, or $0.09 per diluted share, net of $0.12 per diluted share attributed to the non-cash impact of warrants, compared to net income of $4.8 million, or $0.13 per diluted share, net of $0.05 per diluted share attributed to the non-cash impact of warrants in the prior year period.
Balance Sheet and Cash Flow
As of September 30, 2019, the Company had cash, deposits and marketable securities of $250.4 million and no long-term debt. Operations had only a minimal net impact on our cash position during the third quarter of 2019, reflecting an increase in DSO.
Fourth-Quarter 2019 Guidance
The Company will discuss the details of its guidance live during its earnings conference call, which will be available for replay via webcast at ir.kornit.com, as referenced below.
Conference Call Information
The Company will host a conference call today at 5:00 p.m. ET, or 0:00 a.m. Israel time, to discuss the results, followed by a question and answer session for the investment community. A live webcast of the call can be accessed at ir.kornit.com. To access the call, participants may dial toll-free at 1-877-407-0792 or +1-201-689-8263. The toll-free Israeli number is 1 809 406 247. The confirmation code is 13695672.
To listen to a telephonic replay of the conference call, dial toll-free 1-844-512-2921 or +1-412-317-6671 (international) and enter confirmation code 13695672. The telephonic replay will be available beginning at 8:00 p.m. ET on Monday, November 18, 2019, and will last through 11:59 p.m. ET on Monday, December 2, 2019. The call will also be available for replay via the webcast link on Kornit’s Investor Relations website.
3
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 degree of our success in developing, introducing and selling new or improved products and product enhancements including specifically our Poly Pro and Presto products the extent of our ability to consummate sales to large accounts with multi-system delivery plans, the degree of our ability to fill orders for our systems, the extent of our ability to continue to increase sales of our systems, ink and consumables, the extent of our ability to leverage our global infrastructure build-out, the development of the market for digital textile printing, the availability of alternative ink, competition, sales concentration, changes to our relationships with suppliers, the extent of our success in marketing, and those additional factors referred to under “Risk Factors” in the Company’s Annual Report on Form 20-F for the year ended December 31, 2018, filed with the U.S. Securities and Exchange Commission on March 26, 2019. Any forward-looking statements in this press release are made as of the date hereof, and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Non-GAAP Discussion Disclosure
Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude the impact of share-based compensation expenses, acquisition related expenses, excess cost of acquired inventory, foreign exchange differences associated with ASC 842, amortization of acquired intangible assets, deferred tax impact and restructuring expenses and their tax effect. The purpose of such adjustments is to provide an indication of our performance exclusive of non-cash charges and other items that are considered by management to be outside of our 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 our business and make operating decisions, and we believe that they are useful to investors as a consistent and comparable measure of the ongoing performance of our business. However, our 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 our 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.
About Kornit
Kornit Digital (NASDAQ:KRNT) develops, manufactures and markets industrial digital printing technologies for the garment, apparel and textile industries. Kornit delivers complete solutions, including digital printing systems, inks, consumables, software and after-sales support. Leading the digital direct-to-garment printing market with its exclusive eco-friendly NeoPigment printing process, Kornit caters directly to the changing needs of the textile printing value chain. Kornit’s technology enables innovative business models based on web-to-print, on-demand and mass customization concepts. With its immense experience in the direct-to-garment market, Kornit also offers a revolutionary approach to the roll-to-roll textile printing industry: digitally printing with a single ink set onto multiple types of fabric with no additional finishing processes. Founded in 2003, Kornit Digital is a global company, headquartered in Israel with offices in the USA, Europe and Asia Pacific, and serves customers in more than 100 countries worldwide.
4
KORNIT DIGITAL LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
| September 30, | December 31, | |||||||
| 2019 | 2018 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 94,670 | $ | 74,132 | ||||
| Short-term bank deposit | 94,000 | 5,000 | ||||||
| Marketable securities | 25,140 | 3,981 | ||||||
| Trade receivables, net | 44,854 | 21,953 | ||||||
| Inventory | 34,407 | 30,030 | ||||||
| Other accounts receivable and prepaid expenses | 5,422 | 5,660 | ||||||
| Total current assets | 298,493 | 140,756 | ||||||
| LONG-TERM ASSETS: | ||||||||
| Marketable securities | 36,549 | 44,603 | ||||||
| Deposits and prepaid expenses | 536 | 744 | ||||||
| Severance pay fund | 275 | 351 | ||||||
| Deferred taxes | 8,209 | 7,272 | ||||||
| Property,plant and equipment, net | 16,426 | 14,994 | ||||||
| Operating lease right-of-use assets | 13,942 | - | ||||||
| Intangible assets, net | 2,239 | 1,011 | ||||||
| Goodwill | 5,564 | 5,092 | ||||||
| Total long-term assets | 83,740 | 74,067 | ||||||
| Total assets | $ | 382,233 | $ | 214,823 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Trade payables | $ | 17,335 | $ | 16,614 | ||||
| Employees and payroll accruals | 9,088 | 7,932 | ||||||
| Deferred revenues and advances from customers | 2,470 | 3,633 | ||||||
| Operating lease liabilities | 3,470 | - | ||||||
| Other payables and accrued expenses | 6,290 | 4,993 | ||||||
| Total current liabilities | 38,653 | 33,172 | ||||||
| LONG-TERM LIABILITIES: | ||||||||
| Accrued severance pay | 1,029 | 1,059 | ||||||
| Operating lease liabilities | 11,304 | - | ||||||
| Other long-term liabilities | 1,333 | 1,456 | ||||||
| Total long-term liabilities | 13,666 | 2,515 | ||||||
| SHAREHOLDERS’ EQUITY | 329,914 | 179,136 | ||||||
| Total liabilities and shareholders’ equity | $ | 382,233 | $ | 214,823 | ||||
5
KORNIT DIGITAL LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)
| Nine Months Ended | Three Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Revenues | ||||||||||||||||
| Products | $ | 110,562 | $ | 92,207 | $ | 40,696 | $ | 33,357 | ||||||||
| Services | 16,069 | 12,380 | 3,884 | 4,234 | ||||||||||||
| Total revenues | 126,631 | 104,587 | 44,580 | 37,591 | ||||||||||||
| Cost of revenues | ||||||||||||||||
| Products | 53,311 | 39,274 | 19,102 | 14,042 | ||||||||||||
| Services | 19,863 | 13,571 | 5,972 | 4,624 | ||||||||||||
| Total cost of revenues | 73,174 | 52,845 | 25,074 | 18,666 | ||||||||||||
| Gross profit | 53,457 | 51,742 | 19,506 | 18,925 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 16,386 | 15,681 | 5,610 | 5,092 | ||||||||||||
| Selling and marketing | 24,322 | 18,719 | 7,849 | 6,518 | ||||||||||||
| General and administrative | 13,044 | 12,257 | 4,688 | 4,203 | ||||||||||||
| Restructuring expenses | - | 321 | - | 55 | ||||||||||||
| Total operating | 53,752 | 46,978 | 18,147 | 15,868 | ||||||||||||
| Operating income (loss) | (295 | ) | 4,764 | 1,359 | 3,057 | |||||||||||
| Financial income, net | 1,127 | 1,092 | 582 | 264 | ||||||||||||
| Income before taxes on income | 832 | 5,856 | 1,941 | 3,321 | ||||||||||||
| Taxes on income (benefit) | 6 | 404 | (14 | ) | 208 | |||||||||||
| Net income | 826 | 5,452 | 1,955 | 3,113 | ||||||||||||
| Basic net income per share | $ | 0.02 | $ | 0.16 | $ | 0.05 | $ | 0.09 | ||||||||
| Weighted average number of shares used in computing basic net income per share | 37,208,558 | 34,372,064 | 40,471,832 | 34,513,629 | ||||||||||||
| Diluted net income per share | $ | 0.02 | $ | 0.16 | $ | 0.05 | $ | 0.09 | ||||||||
| Weighted average number of shares used in computing diluted net income per share | 38,584,788 | 35,151,714 | 42,159,655 | 35,673,298 | ||||||||||||
6
KORNIT DIGITAL LTD.
AND ITS SUBSIDIARIES
RECONCILATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)
| Nine Months Ended | Three Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| GAAP cost of revenues | $ | 73,174 | $ | 52,845 | $ | 25,074 | $ | 18,666 | ||||||||
| Cost of product recorded for share-based compensation (1) | (419 | ) | (340 | ) | (182 | ) | (151 | ) | ||||||||
| Cost of service recorded for share-based compensation (1) | (374 | ) | (268 | ) | (144 | ) | (116 | ) | ||||||||
| Intangible assets amortization on cost of product (3) | (75 | ) | (75 | ) | (25 | ) | (25 | ) | ||||||||
| Excess cost of product on acquired inventory (a) | (2,790 | ) | - | - | - | |||||||||||
| Acquisition related expenses (2) | (28 | ) | - | - | - | |||||||||||
| Non-GAAP cost of revenues | $ | 69,488 | $ | 52,162 | $ | 24,723 | $ | 18,374 | ||||||||
| GAAP gross profit | $ | 53,457 | $ | 51,742 | $ | 19,506 | $ | 18,925 | ||||||||
| Gross profit adjustments | 3,686 | 683 | 351 | 292 | ||||||||||||
| Non-GAAP gross profit | $ | 57,143 | $ | 52,425 | $ | 19,857 | $ | 19,217 | ||||||||
| GAAP operating expenses | $ | 53,752 | $ | 46,978 | $ | 18,147 | $ | 15,868 | ||||||||
| Share-based compensation (1) | (3,791 | ) | (3,276 | ) | (1,515 | ) | (1,237 | ) | ||||||||
| Acquisition related expenses (2) | (57 | ) | - | - | - | |||||||||||
| Intangible assets amortization (3) | (532 | ) | (723 | ) | (224 | ) | (241 | ) | ||||||||
| Restructuring expenses | - | (321 | ) | - | (55 | ) | ||||||||||
| Non-GAAP operating expenses | $ | 49,372 | $ | 42,658 | $ | 16,408 | $ | 14,335 | ||||||||
| GAAP Financial income | $ | 1,127 | $ | 1,092 | $ | 582 | $ | 264 | ||||||||
| Foreign exchange losses associated with ASC 842 | 780 | - | 242 | - | ||||||||||||
| Non-GAAP Financial income | $ | 1,907 | $ | 1,092 | $ | 824 | $ | 264 | ||||||||
| GAAP Taxes on income (benefit) | $ | 6 | $ | 404 | $ | (14 | ) | $ | 208 | |||||||
| Tax effect on to the above non-GAAP adjustments | 933 | 286 | 62 | 105 | ||||||||||||
| Tax benefit (b) | 807 | - | 347 | - | ||||||||||||
| Non-GAAP Taxes on income | $ | 1,746 | $ | 690 | $ | 395 | $ | 313 | ||||||||
| GAAP net income | $ | 826 | $ | 5,452 | $ | 1,955 | $ | 3,113 | ||||||||
| Share-based compensation (1) | 4,584 | 3,884 | 1,841 | 1,504 | ||||||||||||
| Acquisition related expenses (2) | 85 | - | - | - | ||||||||||||
| Intangible assets amortization (3) | 607 | 798 | 249 | 266 | ||||||||||||
| Excess cost of product on acquired inventory (a) | 2,790 | - | - | - | ||||||||||||
| Restructuring expenses | - | 321 | - | 55 | ||||||||||||
| Foreign exchange losses associated with ASC 842 | 780 | - | 242 | - | ||||||||||||
| Tax effect on to the above non-GAAP adjustments | (933 | ) | (286 | ) | (62 | ) | (105 | ) | ||||||||
| Deferred tax benefit based on an Israeli statutory tax rate (b) | (807 | ) | - | (347 | ) | - | ||||||||||
| Non-GAAP net income | $ | 7,932 | $ | 10,169 | $ | 3,878 | $ | 4,833 | ||||||||
| GAAP diluted earning per share | $ | 0.02 | $ | 0.16 | $ | 0.05 | $ | 0.09 | ||||||||
| Non-GAAP diluted earning per share | $ | 0.20 | $ | 0.29 | $ | 0.09 | $ | 0.13 | ||||||||
| Weighted average number of shares | ||||||||||||||||
| Shares used in computing GAAP diluted net earning per share | 38,584,788 | 35,151,714 | 42,159,655 | 35,673,298 | ||||||||||||
| Shares used in computing Non-GAAP diluted net earning per share | 38,753,127 | 35,423,185 | 42,247,859 | 35,905,930 | ||||||||||||
| (1) Share-based compensation | ||||||||||||||||
| Cost of product revenues | 419 | 340 | 182 | 151 | ||||||||||||
| Cost of service revenues | 374 | 268 | 144 | 116 | ||||||||||||
| Research and development | 934 | 695 | 334 | 293 | ||||||||||||
| Selling and marketing | 1,132 | 842 | 496 | 366 | ||||||||||||
| General and administrative | 1,725 | 1,739 | 685 | 578 | ||||||||||||
| 4,584 | 3,884 | 1,841 | 1,504 | |||||||||||||
| (2) Acquisition related expenses | ||||||||||||||||
| Cost of product revenues | 28 | - | - | - | ||||||||||||
| Selling and marketing | 14 | - | - | - | ||||||||||||
| General and administrative | 43 | - | - | - | ||||||||||||
| 85 | - | - | - | |||||||||||||
| (3) Intangible assets amortization | ||||||||||||||||
| Cost of product revenues | 75 | 75 | 25 | 25 | ||||||||||||
| Selling and marketing | 532 | 723 | 224 | 241 | ||||||||||||
| 607 | 798 | 249 | 266 | |||||||||||||
| (a) | Consists of charges to cost of revenues for the difference between the higher carrying cost of the acquired inventory from a distributor purchased on February 8, 2019 which was recorded at fair value and the standard cost of the Company’s inventory, which adversely impacts the Company’s gross profit. |
| (b) | Non cash impact related to the recognition of deferred taxes with respect to carryforward losses in Israel. |
7
KORNIT DIGITAL LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
| Nine Months Ended | Three Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||
| Net income | $ | 826 | $ | 5,452 | $ | 1,955 | $ | 3,113 | ||||||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||||||
| Depreciation and amortization | 3,359 | 3,603 | 1,137 | 1,236 | ||||||||||||
| Fair value of warrants deducted from revenues | 8,549 | 3,190 | 5,143 | 1,657 | ||||||||||||
| Share-based compensation | 4,584 | 3,884 | 1,841 | 1,504 | ||||||||||||
| Amortization of premium (discount) on marketable securities | (119 | ) | 339 | (35 | ) | 98 | ||||||||||
| Realized gain on sale of marketable securities | (271 | ) | - | - | - | |||||||||||
| Decrease (increase) in trade receivables | (23,344 | ) | (7,584 | ) | (11,181 | ) | 2,557 | |||||||||
| Decrease (increase) in other receivables and prepaid expenses | 405 | (2,109 | ) | (345 | ) | (1,587 | ) | |||||||||
| Decrease (increase) in inventory | (1,107 | ) | 8,919 | 418 | (125 | ) | ||||||||||
| Decrease in operating leases right-of-use assets | 52 | - | 18 | - | ||||||||||||
| Decrease (increase) in deferred taxes, net | (632 | ) | (25 | ) | 14 | 194 | ||||||||||
| Decrease (increase) in other long term assets | 204 | (88 | ) | - | 9 | |||||||||||
| Increase (decrease) in trade payables | 447 | (233 | ) | (3,335 | ) | 1,959 | ||||||||||
| Increase in operating lease liabilities | 780 | - | 242 | - | ||||||||||||
| Increase (decrease) in employees and payroll accruals | 1,184 | 521 | 1,967 | (238 | ) | |||||||||||
| Increase (decrease) in deferred revenues and advances from customers | (1,123 | ) | 289 | 651 | (123 | ) | ||||||||||
| Increase in other payables and accrued expenses | 1,654 | 791 | 702 | 588 | ||||||||||||
| Increase in accrued severance pay, net | 46 | 198 | 39 | 89 | ||||||||||||
| Increase (decrease) in other long term liabilities | (123 | ) | 155 | 87 | (20 | ) | ||||||||||
| Loss from sale of property and Equipment | 1 | - | 1 | - | ||||||||||||
| Foreign currency translation income on inter company balances with foreign subsidiaries | 684 | 340 | 673 | 47 | ||||||||||||
| Net cash provided by (used in) operating activities | (3,944 | ) | 17,642 | (8 | ) | 10,958 | ||||||||||
| Cash flows from investing activities: | ||||||||||||||||
| Purchase of property and equipment | (4,065 | ) | (4,906 | ) | (2,101 | ) | (3,662 | ) | ||||||||
| Acquisition of intangible assets and capitalization of software development costs | (799 | ) | - | (149 | ) | - | ||||||||||
| Proceeds from sale of property and equipment | 3 | - | 3 | - | ||||||||||||
| Cash paid in connection with acquisition | (4,715 | ) | - | - | - | |||||||||||
| Increase in bank deposits | (89,000 | ) | (5,000 | ) | (12,000 | ) | (2,000 | ) | ||||||||
| Proceeds from sale of marketable securities | 31,445 | - | 1,000 | - | ||||||||||||
| Proceeds from maturity of marketable securities | 1,500 | 3,354 | 1,000 | 1,204 | ||||||||||||
| Purchase of marketable securities | (44,599 | ) | (16,680 | ) | - | (10,550 | ) | |||||||||
| Net cash used in investing activities | (110,230 | ) | (23,232 | ) | (12,247 | ) | (15,008 | ) | ||||||||
| Cash flows from financing activities: | ||||||||||||||||
| Proceeds from secondary offering, net | 129,710 | - | (669 | ) | - | |||||||||||
| Exercise of employee stock options | 5,400 | 1,997 | 3,131 | 930 | ||||||||||||
| Payment of contingent consideration | (303 | ) | (900 | ) | - | - | ||||||||||
| Net cash provided by financing activities | 134,807 | 1,097 | 2,462 | 930 | ||||||||||||
| Foreign currency translation adjustments on cash and cash equivalents | (95 | ) | (37 | ) | (87 | ) | (4 | ) | ||||||||
| Increase (decrease) in cash and cash equivalents | 20,538 | (4,530 | ) | (9,880 | ) | (3,124 | ) | |||||||||
| Cash and cash equivalents at the beginning of the period | 74,132 | 18,629 | 104,550 | 17,223 | ||||||||||||
| Cash and cash equivalents at the end of the period | 94,670 | 14,099 | 94,670 | 14,099 | ||||||||||||
| Non-cash investing and financing activities: | ||||||||||||||||
| Purchase of property and equipment on credit | 359 | 539 | 359 | 539 | ||||||||||||
| Inventory transferred to be used as property and equipment | - | 591 | 167 | - | ||||||||||||
| Lease liabilities arising from obtaining right-of-use assets | 1,333 | - | 531 | - | ||||||||||||
| Capitalization of software development costs | 151 | - | 151 | - | ||||||||||||
8