0001625791 2013-01-01 2013-12-31 0001625791 2013-12-31 0001625791 us-gaap:AdditionalPaidInCapitalMember 2013-12-31 0001625791 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2013-12-31 0001625791 us-gaap:RetainedEarningsMember 2013-12-31 0001625791 us-gaap:PreferredClassAMember 2013-12-31 0001625791 us-gaap:CommonStockMember 2013-12-31 0001625791 2014-01-01 2014-12-31 0001625791 us-gaap:AdditionalPaidInCapitalMember 2014-01-01 2014-12-31 0001625791 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2014-01-01 2014-12-31 0001625791 us-gaap:RetainedEarningsMember 2014-01-01 2014-12-31 0001625791 us-gaap:PreferredClassAMember 2014-01-01 2014-12-31 0001625791 us-gaap:CommonStockMember 2014-01-01 2014-12-31 0001625791 us-gaap:ControllerMember 2014-01-01 2014-12-31 0001625791 us-gaap:MaximumMember 2014-01-01 2014-12-31 0001625791 us-gaap:MinimumMember 2014-01-01 2014-12-31 0001625791 us-gaap:ResearchAndDevelopmentExpenseMember 2014-01-01 2014-12-31 0001625791 us-gaap:SellingAndMarketingExpenseMember 2014-01-01 2014-12-31 0001625791 us-gaap:GeneralAndAdministrativeExpenseMember 2014-01-01 2014-12-31 0001625791 us-gaap:EMEAMember 2014-01-01 2014-12-31 0001625791 krnt:AsiaPacificOtherMember 2014-01-01 2014-12-31 0001625791 krnt:CustomerMember 2014-01-01 2014-12-31 0001625791 krnt:CustomerBMember 2014-01-01 2014-12-31 0001625791 us-gaap:CostOfSalesMember 2014-01-01 2014-12-31 0001625791 us-gaap:EmployeeStockOptionMember 2014-01-01 2014-12-31 0001625791 krnt:CustomerCMember 2014-01-01 2014-12-31 0001625791 us-gaap:AmericasMember 2014-01-01 2014-12-31 0001625791 2014-12-31 0001625791 us-gaap:AdditionalPaidInCapitalMember 2014-12-31 0001625791 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2014-12-31 0001625791 us-gaap:RetainedEarningsMember 2014-12-31 0001625791 us-gaap:PreferredClassAMember 2014-12-31 0001625791 us-gaap:CommonStockMember 2014-12-31 0001625791 us-gaap:MaximumMember 2014-12-31 0001625791 us-gaap:MinimumMember 2014-12-31 0001625791 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2014-12-31 0001625791 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2014-12-31 0001625791 us-gaap:AccumulatedTranslationAdjustmentMember 2014-12-31 0001625791 us-gaap:IPOMember 2015-04-01 2015-04-08 0001625791 2015-01-01 2015-12-31 0001625791 us-gaap:AdditionalPaidInCapitalMember 2015-01-01 2015-12-31 0001625791 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2015-01-01 2015-12-31 0001625791 us-gaap:RetainedEarningsMember 2015-01-01 2015-12-31 0001625791 us-gaap:PreferredClassAMember 2015-01-01 2015-12-31 0001625791 us-gaap:CommonStockMember 2015-01-01 2015-12-31 0001625791 us-gaap:ControllerMember 2015-01-01 2015-12-31 0001625791 us-gaap:MaximumMember 2015-01-01 2015-12-31 0001625791 us-gaap:MinimumMember 2015-01-01 2015-12-31 0001625791 us-gaap:ResearchAndDevelopmentExpenseMember 2015-01-01 2015-12-31 0001625791 us-gaap:SellingAndMarketingExpenseMember 2015-01-01 2015-12-31 0001625791 us-gaap:GeneralAndAdministrativeExpenseMember 2015-01-01 2015-12-31 0001625791 us-gaap:EMEAMember 2015-01-01 2015-12-31 0001625791 krnt:AsiaPacificOtherMember 2015-01-01 2015-12-31 0001625791 krnt:CustomerMember 2015-01-01 2015-12-31 0001625791 krnt:CustomerBMember 2015-01-01 2015-12-31 0001625791 us-gaap:CostOfSalesMember 2015-01-01 2015-12-31 0001625791 us-gaap:EmployeeStockOptionMember 2015-01-01 2015-12-31 0001625791 krnt:CustomerCMember 2015-01-01 2015-12-31 0001625791 us-gaap:AmericasMember 2015-01-01 2015-12-31 0001625791 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2015-01-01 2015-12-31 0001625791 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2015-01-01 2015-12-31 0001625791 us-gaap:AccumulatedTranslationAdjustmentMember 2015-01-01 2015-12-31 0001625791 krnt:ExercisePriceMember 2015-01-01 2015-12-31 0001625791 krnt:ExercisePriceOneMember 2015-01-01 2015-12-31 0001625791 krnt:ExercisePriceTwoMember 2015-01-01 2015-12-31 0001625791 krnt:ExercisePriceThreeMember 2015-01-01 2015-12-31 0001625791 krnt:ExercisePriceFourMember 2015-01-01 2015-12-31 0001625791 krnt:ShortTermCorporateDebenturesMember 2015-01-01 2015-12-31 0001625791 krnt:LongTermCorporateDebenturesMember 2015-01-01 2015-12-31 0001625791 krnt:ExercisePriceFiveMember 2015-01-01 2015-12-31 0001625791 krnt:ExercisePriceSixMember 2015-01-01 2015-12-31 0001625791 2015-12-31 0001625791 us-gaap:AdditionalPaidInCapitalMember 2015-12-31 0001625791 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2015-12-31 0001625791 us-gaap:RetainedEarningsMember 2015-12-31 0001625791 us-gaap:PreferredClassAMember 2015-12-31 0001625791 us-gaap:CommonStockMember 2015-12-31 0001625791 us-gaap:MaximumMember 2015-12-31 0001625791 us-gaap:MinimumMember 2015-12-31 0001625791 us-gaap:EMEAMember 2015-12-31 0001625791 us-gaap:AmericasMember 2015-12-31 0001625791 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2015-12-31 0001625791 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2015-12-31 0001625791 us-gaap:AccumulatedTranslationAdjustmentMember 2015-12-31 0001625791 krnt:ExercisePriceMember 2015-12-31 0001625791 krnt:ExercisePriceOneMember 2015-12-31 0001625791 krnt:ExercisePriceTwoMember 2015-12-31 0001625791 krnt:ExercisePriceThreeMember 2015-12-31 0001625791 krnt:ExercisePriceFourMember 2015-12-31 0001625791 krnt:ShortTermCorporateDebenturesMember 2015-12-31 0001625791 krnt:LongTermCorporateDebenturesMember 2015-12-31 0001625791 krnt:ExercisePriceFiveMember 2015-12-31 0001625791 krnt:ExercisePriceSixMember 2015-12-31 0001625791 us-gaap:ComputerEquipmentMember 2015-12-31 0001625791 us-gaap:OfficeEquipmentMember 2015-12-31 0001625791 us-gaap:MachineryAndEquipmentMember 2015-12-31 0001625791 us-gaap:LeaseholdImprovementsMember 2015-12-31 0001625791 us-gaap:AsiaPacificMember 2015-12-31 0001625791 country:IL 2015-12-31 0001625791 krnt:DeferredIncomeTaxesMember 2015-12-31 0001625791 us-gaap:CustomerRelationshipsMember 2015-12-31 0001625791 us-gaap:NoncompeteAgreementsMember 2015-12-31 0001625791 us-gaap:TechnologyBasedIntangibleAssetsMember 2015-12-31 0001625791 us-gaap:FairValueInputsLevel1Member 2015-12-31 0001625791 us-gaap:FairValueInputsLevel2Member 2015-12-31 0001625791 us-gaap:FairValueInputsLevel3Member 2015-12-31 0001625791 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2015-12-31 0001625791 2016-07-01 0001625791 2016-06-25 2016-07-01 0001625791 krnt:SpsiIncMember 2016-06-25 2016-07-01 0001625791 2016-01-01 2016-12-31 0001625791 us-gaap:AdditionalPaidInCapitalMember 2016-01-01 2016-12-31 0001625791 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2016-01-01 2016-12-31 0001625791 us-gaap:RetainedEarningsMember 2016-01-01 2016-12-31 0001625791 us-gaap:PreferredClassAMember 2016-01-01 2016-12-31 0001625791 us-gaap:CommonStockMember 2016-01-01 2016-12-31 0001625791 us-gaap:ControllerMember 2016-01-01 2016-12-31 0001625791 us-gaap:MaximumMember 2016-01-01 2016-12-31 0001625791 us-gaap:MinimumMember 2016-01-01 2016-12-31 0001625791 us-gaap:ResearchAndDevelopmentExpenseMember 2016-01-01 2016-12-31 0001625791 us-gaap:SellingAndMarketingExpenseMember 2016-01-01 2016-12-31 0001625791 us-gaap:GeneralAndAdministrativeExpenseMember 2016-01-01 2016-12-31 0001625791 us-gaap:EMEAMember 2016-01-01 2016-12-31 0001625791 krnt:AsiaPacificOtherMember 2016-01-01 2016-12-31 0001625791 krnt:CustomerMember 2016-01-01 2016-12-31 0001625791 krnt:CustomerBMember 2016-01-01 2016-12-31 0001625791 us-gaap:CostOfSalesMember 2016-01-01 2016-12-31 0001625791 us-gaap:EmployeeStockOptionMember 2016-01-01 2016-12-31 0001625791 krnt:CustomerCMember 2016-01-01 2016-12-31 0001625791 us-gaap:AmericasMember 2016-01-01 2016-12-31 0001625791 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2016-01-01 2016-12-31 0001625791 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2016-01-01 2016-12-31 0001625791 us-gaap:AccumulatedTranslationAdjustmentMember 2016-01-01 2016-12-31 0001625791 krnt:ExercisePriceMember 2016-01-01 2016-12-31 0001625791 krnt:ExercisePriceOneMember 2016-01-01 2016-12-31 0001625791 krnt:ExercisePriceTwoMember 2016-01-01 2016-12-31 0001625791 krnt:ExercisePriceThreeMember 2016-01-01 2016-12-31 0001625791 krnt:ExercisePriceFourMember 2016-01-01 2016-12-31 0001625791 krnt:ShortTermCorporateDebenturesMember 2016-01-01 2016-12-31 0001625791 krnt:LongTermCorporateDebenturesMember 2016-01-01 2016-12-31 0001625791 krnt:ExercisePriceSixMember 2016-01-01 2016-12-31 0001625791 us-gaap:ComputerEquipmentMember 2016-01-01 2016-12-31 0001625791 us-gaap:MachineryAndEquipmentMember 2016-01-01 2016-12-31 0001625791 us-gaap:CustomerRelationshipsMember 2016-01-01 2016-12-31 0001625791 us-gaap:NoncompeteAgreementsMember 2016-01-01 2016-12-31 0001625791 us-gaap:TechnologyBasedIntangibleAssetsMember 2016-01-01 2016-12-31 0001625791 us-gaap:FairValueInputsLevel3Member 2016-01-01 2016-12-31 0001625791 us-gaap:BoardOfDirectorsChairmanMember 2016-01-01 2016-12-31 0001625791 krnt:ExercisePriceOneMember us-gaap:MinimumMember 2016-01-01 2016-12-31 0001625791 krnt:ExercisePriceOneMember us-gaap:MaximumMember 2016-01-01 2016-12-31 0001625791 krnt:ExercisePriceTwoMember us-gaap:MinimumMember 2016-01-01 2016-12-31 0001625791 krnt:ExercisePriceTwoMember us-gaap:MaximumMember 2016-01-01 2016-12-31 0001625791 krnt:ExercisePriceFourMember us-gaap:MinimumMember 2016-01-01 2016-12-31 0001625791 krnt:ExercisePriceFourMember us-gaap:MaximumMember 2016-01-01 2016-12-31 0001625791 us-gaap:OfficeEquipmentMember us-gaap:MaximumMember 2016-01-01 2016-12-31 0001625791 us-gaap:OfficeEquipmentMember us-gaap:MinimumMember 2016-01-01 2016-12-31 0001625791 us-gaap:LeaseholdsAndLeaseholdImprovementsMember 2016-01-01 2016-12-31 0001625791 krnt:ExercisePriceMember us-gaap:MinimumMember 2016-01-01 2016-12-31 0001625791 krnt:ExercisePriceMember us-gaap:MaximumMember 2016-01-01 2016-12-31 0001625791 krnt:InventoryMember 2016-01-01 2016-12-31 0001625791 us-gaap:OtherIntangibleAssetsMember 2016-01-01 2016-12-31 0001625791 krnt:ExercisePriceThreeMember us-gaap:MinimumMember 2016-01-01 2016-12-31 0001625791 krnt:ExercisePriceThreeMember us-gaap:MaximumMember 2016-01-01 2016-12-31 0001625791 krnt:ExercisePriceFiveMember us-gaap:MinimumMember 2016-01-01 2016-12-31 0001625791 krnt:ExercisePriceFiveMember us-gaap:MaximumMember 2016-01-01 2016-12-31 0001625791 krnt:ExercisePriceSixMember us-gaap:MinimumMember 2016-01-01 2016-12-31 0001625791 krnt:ExercisePriceSixMember us-gaap:MaximumMember 2016-01-01 2016-12-31 0001625791 2016-12-31 0001625791 us-gaap:AdditionalPaidInCapitalMember 2016-12-31 0001625791 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2016-12-31 0001625791 us-gaap:RetainedEarningsMember 2016-12-31 0001625791 us-gaap:PreferredClassAMember 2016-12-31 0001625791 us-gaap:CommonStockMember 2016-12-31 0001625791 us-gaap:MaximumMember 2016-12-31 0001625791 us-gaap:MinimumMember 2016-12-31 0001625791 us-gaap:EMEAMember 2016-12-31 0001625791 us-gaap:EmployeeStockOptionMember 2016-12-31 0001625791 us-gaap:AmericasMember 2016-12-31 0001625791 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2016-12-31 0001625791 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2016-12-31 0001625791 us-gaap:AccumulatedTranslationAdjustmentMember 2016-12-31 0001625791 krnt:ExercisePriceMember 2016-12-31 0001625791 krnt:ExercisePriceOneMember 2016-12-31 0001625791 krnt:ExercisePriceTwoMember 2016-12-31 0001625791 krnt:ExercisePriceThreeMember 2016-12-31 0001625791 krnt:ExercisePriceFourMember 2016-12-31 0001625791 krnt:ShortTermCorporateDebenturesMember 2016-12-31 0001625791 krnt:LongTermCorporateDebenturesMember 2016-12-31 0001625791 krnt:ExercisePriceFiveMember 2016-12-31 0001625791 krnt:ExercisePriceSixMember 2016-12-31 0001625791 us-gaap:ComputerEquipmentMember 2016-12-31 0001625791 us-gaap:OfficeEquipmentMember 2016-12-31 0001625791 us-gaap:MachineryAndEquipmentMember 2016-12-31 0001625791 us-gaap:LeaseholdImprovementsMember 2016-12-31 0001625791 us-gaap:AsiaPacificMember 2016-12-31 0001625791 country:IL 2016-12-31 0001625791 krnt:DeferredIncomeTaxesMember 2016-12-31 0001625791 us-gaap:CustomerRelationshipsMember 2016-12-31 0001625791 us-gaap:NoncompeteAgreementsMember 2016-12-31 0001625791 us-gaap:TechnologyBasedIntangibleAssetsMember 2016-12-31 0001625791 us-gaap:FairValueInputsLevel1Member 2016-12-31 0001625791 us-gaap:FairValueInputsLevel2Member 2016-12-31 0001625791 us-gaap:FairValueInputsLevel3Member 2016-12-31 0001625791 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2016-12-31 0001625791 us-gaap:SubsequentEventMember krnt:MasterPurchaseAgreementMember 2017-01-10 0001625791 us-gaap:SubsequentEventMember krnt:MasterPurchaseAgreementMember 2017-01-01 2017-01-10 0001625791 us-gaap:SubsequentEventMember 2017-01-01 2017-01-10 0001625791 us-gaap:SubsequentEventMember 2017-01-01 2017-01-31 0001625791 us-gaap:SubsequentEventMember us-gaap:OverAllotmentOptionMember 2017-01-01 2017-01-31 0001625791 us-gaap:SubsequentEventMember us-gaap:IPOMember 2017-01-01 2017-01-31 0001625791 us-gaap:SubsequentEventMember us-gaap:MajorityShareholderMember 2017-01-01 2017-01-31 xbrli:shares iso4217:USD iso4217:ILSxbrli:shares iso4217:USDxbrli:shares xbrli:pure krnt:Bank krnt:segments Kornit Digital Ltd. 0001625791 false --12-31 20-F 2016-12-31 FY 2016 No No Yes Accelerated Filer 30989873 5329000 4993000 18464000 22789000 22000000 4527000 16500000 22598000 31638000 3314000 3735000 15803000 24122000 86706000 98784000 29152000 21724000 1125000 768000 4778000 9247000 1023000 3385000 5092000 568000 1046000 36646000 41262000 123352000 140046000 13230000 16433000 4383000 5918000 1008000 1679000 2630000 6103000 21251000 30133000 1839000 1269000 -1070000 386000 1839000 2725000 76000 78000 -146000 -146000 -283000 -227000 -28000 -28000 -82000 -100000 3000 15000 89071000 94966000 11398000 12226000 15608000 11867000 37000 3650000 32000 22000 19351000 12770000 -146000 6673000 32000 22000 100262000 89071000 -283000 11398000 76000 107188000 94966000 -82000 12226000 78000 123352000 140046000 0.01 0.01 200000000 200000000 30295949 30989873 30295949 30989873 66364000 18004000 11608000 36752000 86405000 21600000 16015000 48790000 108694000 24720000 11963000 72011000 37187000 45820000 59284000 29177000 40585000 49410000 9475000 11950000 17383000 10616000 13367000 18338000 5266000 9500000 12259000 25357000 34817000 47980000 3820000 5768000 1430000 15000 334000 -46000 3805000 5434000 1476000 782000 709000 648000 3023000 3023000 4725000 4725000 828000 828000 0.34 0.19 0.03 0.29 0.18 0.03 -227000 133000 -6000 227000 -127000 -5000 -97000 33000 66000 28000 -31000 183000 118000 -43000 183000 137000 -201000 2840000 4588000 1029000 1927140 8953565 1927140 8973224 30295949 30989873 6000 6000 421000 420000 1000 960000 958000 2000 19659 528984 693923 693924 897000 897000 2383000 2383000 2993000 2993000 -32000 32000 -1927140 12628741 73519000 73498000 21000 8165000 4818862 71000 71000 1873000 1873000 -183000 -183000 -137000 -137000 201000 201000 1347000 1833000 2973000 2030000 897000 86000 207000 508000 96000 2383000 281000 537000 1259000 306000 2994000 217000 654000 1641000 482000 -71000 6000 113000 -454000 180000 4409000 13117000 9258000 -102000 1648000 411000 555000 4610000 6061000 132000 57000 181000 -227000 70000 217000 -1578000 7036000 2819000 -130000 -820000 675000 852000 1435000 1550000 -323000 223000 1879000 386000 -342000 -590000 -393000 -337000 -2210000 956000 1911000 1861000 5462000 1000000 9206000 9206000 -2643000 22000000 -22000000 1500000 4500000 -2086000 6000 8000 35518000 11455000 738000 -58871000 2463000 661000 -74180000 -90000 6000 421000 958000 71000 -655000 74601000 939000 -82000 -49000 -33000 -254000 13520000 4325000 1663000 1368000 593000 113000 422000 808000 265000 692000 1090000 112000 106000 188000 362000 <div> <table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0.7in; text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">NOTE&#160;1:-</font></td> <td style="text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">GENERAL</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">a.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Kornit Digital Ltd. (the &#8220;Company&#8221;) was incorporated in 2002 under the laws of the State of Israel. The Company and its subsidiaries develop, design and market digital printing solutions for the global printed textile industry. The solutions are based on their proprietary digital textile printing systems, ink and other consumables, associated software and value added services.</font></td> </tr> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">&#160;</td> <td style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">&#160;</td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;">&#160;</td> </tr> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">b.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company established wholly-owned subsidiaries in Israel, the United States, Germany and Hong Kong. The Company&#8217;s subsidiaries are engaged primarily in sales, and marketing, except for the Israeli subsidiary which is engaged primarily in research and development and manufacturing.</font></td> </tr> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">&#160;</td> <td style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">&#160;</td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;">&#160;</td> </tr> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">c.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"> <p style="margin: 0px;">The Company depends on four major suppliers to supply certain components for the production of its products. If one of these suppliers fails to deliver or delays the delivery of the necessary components, the Company will be required to seek alternative sources of supply. A change in these suppliers could result in manufacturing delays, which could cause a possible loss of sales and, consequently, could adversely affect the Company&#8217;s results of operations and financial position.</p> </td> </tr> </table> </div> <div> <table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0.7in; text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">NOTE&#160;2:-</font></td> <td style="text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">SIGNIFICANT ACCOUNTING POLICIES</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.7in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (&#8220;U.S. GAAP&#8221;).</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">a.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Use of estimates:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; margin-left: 1.05in; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. The Company&#8217;s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. Actual results could differ from those estimates.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; margin-left: 1.05in; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On an ongoing basis, the Company&#8217;s management evaluates estimates, including those related to&#160;<font style="background-color: white;">intangible assets and goodwill</font>, tax assets and liabilities, fair values of stock-based awards, inventory write-offs, warranty provision, allowance for bad debt and provision for returns<font style="background-color: white;">.</font>&#160;Such estimates are based on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; margin-left: 0.95in; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">b.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Financial statements in United States dollars:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/14.66px 'times new roman', serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; margin-left: 1.05in; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">A majority of the revenues of the Company and its subsidiaries are denominated in U.S. dollars (&#8220;dollar&#8221; or &#8220;dollars&#8221;). The dollar is the primary currency of the economic environment in which the Company and its subsidiaries, other than the Company&#8217;s German subsidiary, operate. Thus, the functional and reporting currency of the Company and its subsidiaries, other than the Company&#8217;s German subsidiary, is the dollar. Accordingly, monetary accounts maintained in currencies other than the dollar are re-measured into U.S. dollars in accordance with Accounting Standards Codification (&#8220;ASC&#8221;) No. 830 &#8220;Foreign Currency Matters&#8221;. Changes in currency exchange rates between the Company&#8217;s functional currency and the currency in which a transaction is denominated are included in the Company&#8217;s results of operations as finance income (expenses), net in the period in which the currency exchange rates change.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; margin-left: 1.05in; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">For the Company&#8217;s subsidiary in Germany whose functional currency is the Euro all amounts on the balance sheets have been translated into the dollar using the exchange rates in effect on the relevant balance sheet dates. All amounts in the statements of income have been translated into the dollar using the exchange rate on the respective dates on which those elements are recognized. The resulting translation adjustments are reported as a component of accumulated other comprehensive income in shareholders&#8217; equity.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">c.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Principles of consolidation:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; margin-left: 1.05in; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions including profits from intercompany have been eliminated upon consolidation.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">d.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Cash equivalents:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; margin-left: 1.05in; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less, at acquisition.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">e.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Short-term deposits:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; margin-left: 1.05in; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Short-term bank deposits are deposits with an original maturity of more than three months but less than one year from the date of acquisition.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">f.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Marketable securities:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; margin-left: 1.05in; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company accounts for investments in marketable securities in accordance with ASC 320, &#8220;Investments - Debt and Equity Securities&#8221;. Management determines the appropriate classification of its investments in debt securities at the time of purchase and re-evaluates such determinations at each balance sheet date.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; margin-left: 1.05in; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; margin-left: 1.05in; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company classifies marketable securities as available-for-sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses reported in &#8220;accumulated other comprehensive income&#8221; in shareholders&#8217; equity. Realized gains and losses on sales of marketable securities are included in finance expenses, net and are derived using the specific identification method for determining the cost of securities.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; margin-left: 1.05in; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The amortized cost of marketable securities is adjusted for amortization of premium and accretion of discount to maturity, both of which, together with interest, are included in finance expenses, net.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; margin-left: 1.05in; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company recognizes an impairment charge when a decline in the fair value of its investments in debt securities below the cost basis of such securities is judged to be other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Company&#8217;s intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. For securities that are deemed other-than-temporarily impaired (&#8220;OTTI&#8221;), the amount of impairment is recognized in the statement of operations and is limited to the amount related to credit losses, while impairment related to other factors is recognized in accumulated other comprehensive income (loss). The Company did not recognize OTTI on its marketable securities in 2014, 2015 and 2016.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">g.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Inventories:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; margin-left: 1.05in; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Inventories are measured at the lower of cost or market value. The cost of inventories comprises costs of purchase and costs incurred in bringing the inventories to their present location and condition. Inventory write-down is measured as the difference between the cost of the inventory and market based upon assumptions about future demand, and is charged to the cost of sales.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Cost of inventories is determined as follows:</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Raw and packing materials - on the basis of weighted average cost.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Finished goods - on the basis of average costs of materials, and other direct manufacturing cost.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Inventory write offs have been provided to cover risks arising from dead and slow moving items, technological obsolescence and excess inventories according to revenue forecasts.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">During the years ended December 31, 2014, 2015 and 2016 the Company recorded inventory write off in a total amount of $287, $824 and $2,211, respectively.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><br /></font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">h.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Property and equipment:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Property and equipment are measured at cost, including directly attributable costs, less accumulated depreciation and accumulated impairment losses. Depreciation is calculated on a straight-line basis over the useful life of the assets at annual rates as follows:</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">%</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: center;" colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">Office furniture and equipment</td> <td>&#160;</td> <td style="text-align: center;">&#160;</td> <td style="text-align: center;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">7 - 20</font></td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="width: 1.05in; background-color: white;">&#160;</td> <td style="text-align: justify;">Computer and peripheral equipment</td> <td style="width: 12px;">&#160;</td> <td style="width: 12px; text-align: center;">&#160;</td> <td style="width: 112px; text-align: center;">33</td> <td style="width: 12px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">Machinery and equipment</td> <td>&#160;</td> <td style="text-align: center;">&#160;</td> <td style="text-align: center;">15</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">Leasehold improvements</td> <td>&#160;</td> <td style="text-align: center;">&#160;</td> <td style="text-align: center;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">*)</font></td> <td style="text-align: left;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 1.05in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">*)</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term (including the extension option held by the Company and intended to be exercised) and the expected life of the improvement.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">i.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Goodwill and other Intangible assets:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Goodwill reflects the excess of the purchase price of business acquired over the fair value of net assets acquired. Under ASC No. 350, &#8220;Intangibles &#8211; Goodwill and other&#8221; (&#8220;ASC No. 350&#8221;), goodwill is not amortized but rather is tested for impairment at least annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. In accordance with ASC No. 350, the Company performs an annual impairment test on December 31 of each year.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company operates in one operating segment and this segment comprises the only reporting unit. The Company tests goodwill using the two-step process in accordance with ASC No. 350. The first step, identifying a potential impairment, compares the fair value of the reporting unit with its carrying amount. If the carrying amount exceeds its fair value, the second step would need to be performed; otherwise, no further step is required. The second step, measuring the impairment loss, compares the implied fair value of the goodwill with the carrying amount of the goodwill. Any excess of the goodwill carrying amount over the applied fair value is recognized as an impairment loss, and the carrying value of goodwill is written down to fair value. During the year ended December 31, 2016, no impairment of goodwill has been identified.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The intangible assets of the Company are not considered to have an indefinite useful life and are amortized over their useful lives. Customer relationships are amortized over their estimated useful lives in proportion to the economic benefits realized. This accounting policy results in accelerated amortization of such assets as compared to the straight-line method. Acquired technology and non-competition agreements are amortized on a straight-line basis.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><br /></font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">j.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Impairment of long lived assets and intangible assets subject to amortization:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Property and equipment and intangible assets subject to amortization are reviewed for impairment in accordance with ASC No. 360, &#8220;Accounting for the Impairment or Disposal of Long-Lived Assets,&#8221; whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">During the years ended December 31, 2014, 2015 and 2016, no impairment losses were recorded.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">k.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Business combinations:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company accounts for business combinations in accordance with ASC No. 805, &#8220;Business Combinations&#8221; (&#8220;ASC No. 805&#8221;). ASC No. 805 requires recognition of assets acquired, liabilities assumed, and any non-controlling interest at the acquisition date, measured at their fair values as of that date. Any excess of the fair value of net assets acquired over purchase price and any subsequent changes in estimated contingencies are to be recorded in consolidated statements of income. In addition, changes in valuation allowance related to acquired deferred tax assets and in acquired income tax position are to be recognized in consolidated statements of income.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Acquisition related costs are expensed to the statements of income in the period incurred.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">l.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Revenue recognition:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company generates revenues from the sale of systems, inks and consumable products and from services to its products. The Company generates revenues from sale of its products directly to end-users and indirectly through independent distributors.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/14.66px 'times new roman', serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Revenues are recognized in accordance with &#8220;Revenue Recognition&#8221; (&#8220;ASC No. 605&#8221;), provided that the collection of the resulting receivable is probable, there is persuasive evidence of an arrangement, no significant obligations remain and the price is fixed or determinable.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Revenues from selling these products are recognized upon delivery, provided that all other revenue recognition criteria are met. In respect of sale of systems with installation and training, the Company considers the installation and training to be not essential to the functionality of the systems. Therefore, the Company recognizes the revenues upon delivery in accordance with the agreed-upon delivery terms once all other revenue recognition criteria have been met.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><br /></font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company considers all arrangements with payment terms extending beyond the standard payment terms not to be fixed or determinable. If the fee is not fixed or determinable, revenue is recognized as payments become due from the customer, provided that all other revenue recognition criteria have been met.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Revenues from ink and other consumable products when sold separately are generally recognized upon shipment assuming all other revenue recognition criteria have been met.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Although, in general, the Company does not grant rights of return, there are certain instances where such rights are granted. The Company maintains a provision for returns in accordance with ASC No 605, which is estimated, based primarily on historical experience as well as management judgment, and is recorded as reduction of revenue. Such provision amounted to $396 and $346 as of December 31, 2015 and 2016, respectively.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company periodically provides customer incentive programs including product discounts and volume-based rebates, which are accounted for as reductions to revenue in the period in which the revenue is recognized. These reductions to revenue are made based upon reasonable and reliable estimates that are determined by historical experience and the specific terms and conditions of the incentive.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Deferred revenue includes amounts received from customers for which revenue has not yet been recognized.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In cases where the Company&#8217;s customers trade-in old systems as part of sales of new systems, the fair value of the old systems is recorded as inventory, provided that such value can be determined.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/14.66px 'times new roman', serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Revenues are recorded net of the fair value of the warrants associated with revenues recognized (Refer to note 17). The Company utilizes a Monte Carlo simulation approach to estimate the fair value of the warrants which requires inputs such as common ordinary share, the warrant strike price, estimated ordinary share price volatility and risk-free interest rate, among others. The Company recognized a reduction to revenues of $2,030 during the year ended December 31, 2016.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font>&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">m.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Shipping and Handling:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Shipping and handling fees charged to the Company&#8217;s customers are recognized as revenue in the period shipped and the related costs for providing these services are recorded as a cost of revenues. Revenues from shipping in the years ended December 31, 2014, 2015 and 2016 were $931, $719 and $768, respectively.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">n.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Cost of revenues:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Cost of revenues is comprised mainly of cost of systems and ink production, employees&#8217; salaries and related costs, allocated overhead expenses, import taxes and royalties.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><br /></font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">o.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Warranty costs:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/14.66px 'times new roman', serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Company typically provides a one-year warranty on the systems including parts and labor. A provision is recorded for estimated warranty costs at the time revenues are recognized based on historical warranty costs and management&#8217;s estimates. Factors that affect the Company&#8217;s warranty liability include the number of systems, historical rates of warranty claims and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts thereof as necessary.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The followings are the changes in the liability for product warranty from January 1, 2015 to December 31, 2016:</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1.05in; background-color: white;">&#160;</td> <td style="text-align: justify;">Balance at January 1, 2015</td> <td style="width: 12px;">&#160;</td> <td style="width: 12px; text-align: left;">$</td> <td style="width: 112px; text-align: right;">684</td> <td style="width: 12px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">Provision for warranties issued during the year</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1,700</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 4pt;">Reduction for payments and costs to satisfy claims</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(1,444</td> <td style="text-align: left; padding-bottom: 4pt;">)</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">Balance at December 31, 2015</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">940</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">Provision for warranties issued during the year</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,984</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 1.5pt;">Reduction for payments and costs to satisfy claims</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(1,905</td> <td style="text-align: left; padding-bottom: 1.5pt;">)</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 4pt;">Balance at December 31, 2016</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">2,019</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">p.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Research and development expenses:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Research and development expenses are charged to the statement of income, as incurred.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">q.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Accounting for share-based compensation:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/14.66px 'times new roman', serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Company accounts for share based compensation in accordance with, &#8220;Compensation - Stock Compensation&#8221; (&#8220;ASC No. 718&#8221;) that requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company&#8217;s consolidated statement of income. ASC No. 718 requires forfeitures to be estimated at the time of the grant and revised in subsequent periods if actual forfeitures differ from those estimates.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company selected the binomial option pricing model as the most appropriate fair value method for its share-based compensation awards with the following assumptions for the years ended December 31, 2014, 2015 and 2016:</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="5"> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Year ended</b></font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>December 31,</b></font></p> </td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2014</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2015</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2016</td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: center;">&#160;</td> <td>&#160;</td> <td style="text-align: right;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1.05in; background-color: white;">&#160;</td> <td style="text-align: justify;">Suboptimal exercise multiple</td> <td style="width: 12px;">&#160;</td> <td style="width: 112px; text-align: center;">2.0-10.0</td> <td style="width: 12px;">&#160;</td> <td style="width: 112px; text-align: center;">2.0-2.5</td> <td style="width: 12px;">&#160;</td> <td style="width: 112px; text-align: center;">1.0-1.5</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">Risk free interest rate</td> <td>&#160;</td> <td style="text-align: center;">0.1%-2.5%</td> <td>&#160;</td> <td style="text-align: center;">0.2%-2.2%</td> <td>&#160;</td> <td style="text-align: center;">0.3%-2.2%</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">Volatility</td> <td>&#160;</td> <td style="text-align: center;">50%-55%</td> <td>&#160;</td> <td style="text-align: center;">50%-55%</td> <td>&#160;</td> <td style="text-align: center;">54%-56%</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">Dividend yield</td> <td>&#160;</td> <td style="text-align: center;">0%</td> <td>&#160;</td> <td style="text-align: center;">0%</td> <td>&#160;</td> <td style="text-align: center;">0%</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: right; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>&#160;</b></font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The expected volatility is based on volatility of similar companies whose share prices are publicly available over an historical period equivalent to the option&#8217;s expected term. The computation of the suboptimal exercise multiple based on empirical studies, the early exercise factor of public companies is approximately 100% for employees and 150% for managers. The early exercise factor of grantees in private companies is expected to be higher due to the lack of marketability that leads to longer exercise period of the options.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The interest rate for period within the contractual life of the award is based on the U.S. Treasury Bills yield curve in effect at the time of grant. The Company currently has no plans to distribute dividends and intends to retain future earnings to finance the development of its business.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company recognizes compensation expenses for the value of its awards, which have graded vesting based on service conditions, using the straight line method, over the requisite service period of each of the awards, net of estimated forfeitures. Estimated forfeitures are based on actual historical pre-vesting forfeitures.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The following table sets forth the total share based compensation expense included in the consolidated statements of income for the years ended December 31, 2014, 2015 and 2016:</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10"> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Year ended</b></font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>December 31,</b></font></p> </td> <td style="padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2014</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: justify;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1.05in; background-color: white;">&#160;</td> <td style="text-align: justify;">Cost of revenues</td> <td style="width: 12px;">&#160;</td> <td style="width: 12px; text-align: left;">$</td> <td style="width: 112px; text-align: right;">96</td> <td style="width: 12px; text-align: left;">&#160;</td> <td style="width: 12px;">&#160;</td> <td style="width: 12px; text-align: left;">$</td> <td style="width: 112px; text-align: right;">306</td> <td style="width: 12px; text-align: left;">&#160;</td> <td style="width: 12px;">&#160;</td> <td style="width: 12px; text-align: left;">$</td> <td style="width: 112px; text-align: right;">482</td> <td style="width: 12px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">Research and development</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">86</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">281</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">217</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">Sales and marketing</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">207</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">537</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">654</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 1.5pt;">General and administrative</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">508</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,259</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,641</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 4pt;">Total share-based compensation expense</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">897</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">2,383</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">2,994</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">r.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Derivatives and hedging:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company accounts for derivatives and hedging based on ASC No. 815, &#8220;Derivatives and Hedging&#8221; (&#8220;ASC No. 815&#8221;). ASC No. 815 requires the Company to recognize all derivatives on the balance sheet at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">According to ASC No. 815, for derivative instruments that are designated and qualify as hedging instruments, the Company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. If the derivatives meet the definition of a hedge and are so designated, depending on the nature of the hedge, changes in the fair value of such derivatives will either be offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings, or recognized in accumulated other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative&#8217;s change in fair value is recognized in earnings.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/14.66px 'times new roman', serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Starting 2015, the Company entered into forward and option contracts to hedge against the risk of overall changes in future cash flow from payments of payroll and related expenses denominated in New Israeli Shekels (&#8220;NIS&#8221;). As of December 31, 2015 and 2016, the fair value of the Company&#8217;s outstanding forward and option contracts amounted to $30 and $3 which is included within other accounts receivable and prepaid expenses and payables and accrued expenses, respectively on the balance sheets.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company measured the fair value of these contracts in accordance with ASC No. 820, &#8220;Fair Value Measurements and Disclosures&#8221; (&#8220;ASC No. 820&#8221;), and they were classified as level 2 of the fair value hierarchy.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">As of December 31, 2015 and December 31, 2016, the notional principal amount of the Hedging Contracts to sell U.S. dollars held by the Company was $ 8,453 and $8,636, respectively.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">s.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Advertising:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Advertising costs are charged to operations as incurred and were $437, $283 and $526 for the years ended December 31, 2014, 2015 and 2016, respectively.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">t.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Income taxes:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company accounts for income taxes and uncertain tax positions in accordance with ASC No. 740, &#8220;Income Taxes&#8221; (&#8220;ASC No. 740&#8221;). ASC No. 740 prescribes the use of the liability method, whereby deferred tax asset and liability account balances are determined based on temporary differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to amounts more likely than not to be realized.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">ASC No. 740 contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company accrues interest and penalties related to unrecognized tax benefits on its taxes on income.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">u.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Concentrations of credit risks:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Financial instruments that potentially subject the Company and its subsidiaries to concentrations of credit risk consist principally of cash and cash equivalents, bank deposits, marketable securities, foreign exchange contracts and trade receivables.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The majority of the Company&#8217;s and its subsidiaries&#8217; cash and cash equivalents, bank deposits and marketable securities are invested in major banks in Israel and the U.S. Generally, these cash equivalents may be redeemed upon demand and, therefore management believes that it bears a lower risk.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company attempts to limit its exposure to interest rate risk by investing in securities with maturities of less than three years; however, the Company may be unable to successfully limit its risk to interest rate fluctuations. At any time, a sharp rise in interest rates could have a material adverse impact on the fair value of its investment portfolio. Conversely, declines in interest rates could have a material favorable impact on the fair value of its investment portfolio. Increases or decreases in interest rates could have a material impact on interest earnings related to new investments during the period.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/14.66px 'times new roman', serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The trade receivables of the Company and its subsidiaries are mainly derived from sales to customers located in the United States, Europe, the Middle East, Africa and Asia Pacific. The Company performs ongoing credit evaluations of its customers. In certain circumstances, the Company may require from its customers letters of credit, other collateral or additional guarantees. An allowance for doubtful accounts is determined with respect to those amounts that the Company has determined to be doubtful of collection. Allowance for doubtful accounts as of December 31, 2015 and 2016 were $0. Bad debt expenses for the years ended December 31, 2014, 2015 and 2016, were $0, $21 and $216 respectively.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">v.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Severance pay:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The majority of the Company&#8217;s employees in Israel have subscribed to Section 14 of Israel&#8217;s Severance Pay Law, 5723-1963 (&#8220;Section 14&#8221;). Pursuant to Section 14, the Company&#8217;s employees, covered by this section, are entitled only to monthly deposits, at a rate of 8.33% of their monthly salary, made on their behalf by the Company. Payments in accordance with Section 14 release the Company from any future the severance liabilities in respect of those employees.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Neither severance pay liability nor severance pay fund under Section 14 for such employees is recorded on the Company&#8217;s balance sheet.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">With regards to employees in Israel that are not subject to Section 14, the Company&#8217;s liability for severance pay is calculated pursuant to the Severance Pay Law, based on the most recent salary of the relevant employees multiplied by the number of years of employment as of the balance sheet date. These employees are entitled to one month salary for each year of employment or a portion thereof. The Company&#8217;s liability for these employees is fully provided for via monthly deposits with severance pay funds, insurance policies and an accrual. The value of these deposits is recorded as an asset with other assets on the Company&#8217;s balance sheet.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The deposited funds include profits accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to the Severance Pay Law or labor agreements.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', serif;">Severance pay expenses for the years ended December 31, 2014, 2015 and 2016 were $1,015, $1,354 and $1,590 respectively.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">w.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Fair value of financial instruments:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/14.66px 'times new roman', serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Company applies ASC No 820. Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the &#8220;exit price&#8221;) in an orderly transaction between market participants at the measurement date.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In determining fair value, the Company uses various valuation approaches. ASC No 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company&#8217;s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The hierarchy is broken down into three levels based on the inputs as follows:</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 1.05in;">&#160;</td> <td style="width: 0.6in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Level&#160;1&#160;-</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Valuations based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date.</font></td> </tr> <tr style="vertical-align: top;"> <td>&#160;</td> <td style="text-align: justify;">&#160;</td> <td style="text-align: justify;">&#160;</td> </tr> <tr style="vertical-align: top;"> <td>&#160;</td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Level&#160;2&#160;-</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.</font></td> </tr> <tr style="vertical-align: top;"> <td>&#160;</td> <td style="text-align: justify;">&#160;</td> <td style="text-align: justify;">&#160;</td> </tr> <tr style="vertical-align: top;"> <td>&#160;</td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Level&#160;3&#160;-</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Valuations based on inputs that are unobservable and significant to the overall fair value measurement.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -56.7pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The carrying amount of cash, cash equivalents, short term bank deposits, trade receivables, other accounts receivable, trade payables and other accounts payable and accrued expenses approximates approximate their fair value due to the short-term maturities of such instruments.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company measures its marketable securities and foreign currency derivative instruments at fair value. Marketable securities and foreign currency derivative instruments are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The contingent payment related to the SPSI acquisition is classified within Level 3 as it is based on significant inputs not observable in the market.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">x.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Comprehensive income:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company accounts for comprehensive income in accordance with FASB ASC No. 220, &#8220;Comprehensive Income.&#8221; Comprehensive income generally represents all changes in shareholders&#8217; equity during the period except those resulting from investments by, or distributions to, shareholders. The Company determined that its items of other comprehensive income relate to gains and losses on hedging derivative instruments, unrealized gains and losses on available-for-sale securities and unrealized gain and losses from foreign currency translation adjustments.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">y.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Basic and diluted net income per share:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Basic net income per share is computed based on the weighted average number of ordinary shares outstanding during each period. Diluted net income per share is computed based on the weighted average number of ordinary shares outstanding during each period, plus dilutive potential ordinary shares considered outstanding during the period, in accordance with ASC No. 260, &#8220;Earnings Per Share&#8221;.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>&#160;</b></font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">For the year ended December 31, 2014, all outstanding options have been included at the calculation of the diluted earnings per share since their effect was dilutive. The total number of shares related to the outstanding options excluded from the calculation of diluted net earnings per share due to their anti-dilutive effect was 762,152 and 1,498,503 for the years ended December 31, 2015 and 2016, respectively.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><br /></font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">z.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Impact of recently issued accounting standard not yet adopted:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 1.05in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In May 2014, the FASB issued an ASU that provides a comprehensive model for recognizing revenue with customers. This update clarifies and replaces all existing revenue recognition guidance within U.S. GAAP and may be adopted retrospectively for all periods presented or adopted using a modified retrospective approach. This update is effective for annual and interim periods beginning after December 15, 2016. In July 2015, FASB deferred the effective date by one year to December 15, 2017 (beginning with the Company&#8217;s first quarter in 2018) and permitting early adoption of the standard, but not before the original effective date of December 15, 2016. The Company will adopt the new standard in the first quarter of 2018 and expects to apply the modified retrospective approach.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.4in; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company is in the initial stages of its evaluation of the impact of the new standard on its accounting policies, processes, and system requirements. The Company has assigned internal resources in addition to the engagement of a third party service provider to assist in the evaluation. Implementation efforts, to date, have included training on the new standard and preparing initial gap assessments on the Company&#8217;s significant revenue streams.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.4in; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.4in; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">While the Company continues to assess the potential impacts of the new standard, including the areas described above, it does not know or cannot reasonably estimate quantitative information related to the impact of the new standard on its financial statements at this time.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.4in; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.4in; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 1.05in;"></td> <td style="width: 0.35in;">2.</td> <td style="text-align: justify;">In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory (Topic 330), which simplifies its current requirement that an entity measure inventory at lower of cost or market, when market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. Inventory within the scope of ASU 2015-11 should be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This amendment should be applied prospectively and is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early application is permitted as of the beginning of an interim or annual reporting period. The adoption of ASU 2015-11 is not expected to have a material effect on the Company's consolidated financial statements.</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.4in; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 1.05in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">3.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In February 2016, FASB issued Accounting Standard Update (&#8220;ASU&#8221;) No. 2016-02, &#8220;Leases&#8221;. The updated standard aims to increase transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. This update is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods; early adoption is permitted and modified retrospective application is required. The Company is in the process of evaluating this guidance to determine the impact it will have on its consolidated financial statements.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 1.05in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">4.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In March 2016, the FASB issued ASU No. 2016-09, &#8220;Improvements to Employee Share-Based Payment Accounting.&#8221; This ASU affects entities that issue share-based payment awards to their employees. The ASU is designed to simplify several aspects of accounting for share-based payment award transactions, which include the income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows and forfeiture rate calculations. The Company will adopt this ASU on its effective date of January 1, 2017. The Company&#8217;s adoption of ASU 2016-09 will not have a material impact on its consolidated financial statements.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 1.05in;"></td> <td style="width: 0.35in;">5.</td> <td style="text-align: justify;">The FASB issued ASU 2016-13 "Measurement of Credit Losses on Financial Instruments" requiring an allowance to be recorded for all expected credit losses for financial assets. The allowance for credit losses is based on historical information, current conditions and reasonable and supportable forecasts. The new standard also makes revisions to the other than temporary impairment model for available-for-sale debt securities. Disclosures of credit quality indicators in relation to the amortized cost of financing receivables are further disaggregated by year of origination. The new accounting guidance is effective for interim and annual periods beginning after December 15, 2019 with early adoption permitted for interim and annual periods beginning after December 15, 2018. The amendments will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is analyzing the impact of this new standard and, at this time, cannot estimate the impact of adoption on its net income. The Company plans to adopt ASU 2016-13 effective January 1, 2020.</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 1.05in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">6.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In January 2017, the FASB issued ASU No. 2017-04, &#8220;Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.&#8221; This ASU eliminates the requirement to measure the implied fair value of goodwill by assigning the fair value of a reporting unit to all assets and liabilities within that unit (the &#8220;Step 2 test&#8221;) from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited by the amount of goodwill in that reporting unit. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the qualitative impairment test is necessary. This new standard should be applied on a prospective basis and the nature of and reason for the change in accounting principle should be disclosed upon transition. The amendments in this update should be adopted for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted on testing dates after January 1, 2017. The Company is currently evaluating the impact of adopting the new guidance on the consolidated financial statements and the timing of adoption.</font></td> </tr> </table> </div> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="text-align: justify; width: 0.7in;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>NOTE&#160;3:-</b></font></td><td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>ACQUISITION</b></font></td></tr></table><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px; text-align: justify; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>&#160;</b></font></p><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.7in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On July 1, 2016 (the &#8220;Closing Date&#8221;), the Company, through its wholly owned subsidiary Kornit Digital North America Inc., acquired the digital direct to garment printing assets of SPSI Inc., a North American distributor and service provider for graphic arts, printing and garment decoration solutions. Under the related acquisition agreement, the total consideration of $11,443 is compromised as following:</font></p><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px; text-align: justify; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.7in;">&#160;</td><td style="text-align: justify; width: 0.35in;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">-</font></td><td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$9,206 in cash paid on the Closing Date, of which $741 is held in escrow for twelve to eighteen months following the Closing Date.</font></td></tr></table><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px; text-align: left;">&#160;</p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.7in;">&#160;</td><td style="text-align: justify; width: 0.35in;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">-</font></td><td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Milestone-based contingent payments in a total of up to $2,700 payable in 2016, 2017 and 2018. The milestone-based contingent payments are subject to the acquired business territory meeting revenues targets in 2016, 2017 and 2018 as described at the asset purchase agreement. These milestone-based contingent payments were measured at fair value at the Closing Date and recorded as a liability on the balance sheet in the amount of $2,237 ($2,470 as of December 31, 2016).</font></td></tr></table><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px; text-align: left; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 1.05in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In addition, the Company incurred acquisition-related costs in a total amount of $493, which are included in general and administrative expenses. Acquisition-related costs include legal, accounting, consulting fees and other external costs directly related to the acquisition.</font></p><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 1.05in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 1.05in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The main reasons for this acquisition is to improve connectivity with customers by expanding leadership position in the digital textile market as well as providing direct access to a large number of traditional screen printing customers.</font></p><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 1.05in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 1.05in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Purchase price allocation:</font></p><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 1.05in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 1.05in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Under business combination accounting principles, the total purchase price was allocated to SPSI&#8217;s net tangible and intangible assets based on their estimated fair values as set forth below. The excess of the purchase price over the net tangible and identifiable intangible assets was recorded as goodwill.</font></p><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 1.05in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 1.05in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The purchase price allocation for the acquisition has been determined at the follows:</font></p><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 1.05in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; text-align: center; border-bottom: 1.5pt solid black;" colspan="2">Fair Value</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; text-align: center; border-bottom: 1.5pt solid black;">Amortization period (years)</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;"><u>Tangible Assets</u></td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: center;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1.05in; background-color: white;">&#160;</td><td style="text-decoration: none; text-align: left;">Inventory</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">3,472</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 141px; text-align: center;"></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: center;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-decoration: underline; text-align: left;">Intangible Assets:</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: center;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">Customer Relationships (*)</td><td>&#160;</td><td style="text-align: left;">$</td><td style="text-align: right;">2,614</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: center;">5.0</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">Non-competition agreement (**)</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">265</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: center;">4.0</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; padding-bottom: 1.5pt;">Goodwill</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: left;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: right;">5,092</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; padding-bottom: 1.5pt;">Infinite</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; padding-bottom: 4pt;">Total purchase price</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: 4pt double black; text-align: left;">$</td><td style="border-bottom: 4pt double black; text-align: right;">11,443</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px; text-align: left; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top; font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif;"><td style="width: 1.05in; font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif;"></td><td style="width: 0.35in; font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(*)</font></td><td style="text-align: justify; font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Customer relationships represent the underlying relationships and agreements with SPSI&#8217;s installed customer base and are amortized over the useful life of the agreements using accelerated method.</font></td></tr><tr style="vertical-align: top; font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif;"><td style="font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif;"></td><td style="font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(**)</font></td><td style="text-align: justify; font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Non-competition agreement is amortized over the useful life of the agreement using straight-line method.</font></td></tr></table><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px; text-align: left;">&#160;</p><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 1.05in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In performing the purchase price allocation, the Company considered, among other factors, analysis of historical financial performance, the best use of the acquired assets and estimates of future performance of SPSI&#8217;s installed base. In its allocation, the Company conducted the valuation of intangible assets based on a market participant approach to valuation using an income approach and considered the report of an independent third party valuation firm and estimates and assumptions provided by management.</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="text-align: justify; width: 0.7in;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>NOTE 4:-</b></font></td><td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>FAIR VALUE MEASUREMENTS</b></font></td></tr></table><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px; text-align: justify; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.7in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The following is a summary of available-for-sale marketable securities:</font></p><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px; text-align: justify; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; text-align: center; border-bottom: 1.5pt solid black;" colspan="14">December 31, 2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom: 1.5pt solid black;" colspan="2"><p style="font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif; margin: 0px; text-align: center; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Amortized</b></font></p><p style="font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif; margin: 0px; text-align: center; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>cost</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom: 1.5pt solid black;" colspan="2"><p style="font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif; margin: 0px; text-align: center; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Gross unrealized</b></font></p><p style="font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif; margin: 0px; text-align: center; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>gain</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; text-align: center; border-bottom: 1.5pt solid black;" colspan="2">Gross unrealized loss</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; text-align: center; border-bottom: 1.5pt solid black;" colspan="2">Fair value</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="font-weight: normal; text-align: left;">Matures within one year:</td><td>&#160;</td><td style="text-align: left;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: left;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.7in; background-color: white;">&#160;</td><td style="font-weight: normal; text-align: left;">Corporate debentures</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">16,530</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">&#160;&#160;&#160;&#160;&#160;&#160;2</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">(28</td><td style="width: 15px; text-align: left;">)</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">16,504</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td style="font-weight: bold;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td style="font-weight: bold; text-align: right;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td style="font-weight: bold;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td style="font-weight: bold; text-align: right;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="font-weight: normal; text-align: left;">Matures after one year through three years:</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td style="font-weight: bold;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td style="font-weight: bold; text-align: right;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td style="font-weight: bold;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td style="font-weight: bold; text-align: right;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="font-weight: normal; text-align: left; padding-bottom: 1.5pt;">Corporate debentures</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: left;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: right;">21,794</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: left;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: right;">5</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: left;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: right;">(79</td><td style="padding-bottom: 1.5pt; text-align: left;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: left;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: right;">21,720</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="font-weight: normal; text-align: left; padding-bottom: 4pt;">Total</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: 4pt double black; text-align: left;">$</td><td style="border-bottom: 4pt double black; text-align: right;">38,324</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: 4pt double black; text-align: left;">$</td><td style="border-bottom: 4pt double black; text-align: right;">7</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: 4pt double black; text-align: left;">$</td><td style="border-bottom: 4pt double black; text-align: right;">(107</td><td style="padding-bottom: 4pt; text-align: left;">)</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: 4pt double black; text-align: left;">$</td><td style="border-bottom: 4pt double black; text-align: right;">38,224</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td></tr></table><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px; text-align: justify; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px; text-align: justify; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; text-align: center; border-bottom: 1.5pt solid black;" colspan="14">December 31, 2015</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom: 1.5pt solid black;" colspan="2"><p style="font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif; margin: 0px; text-align: center; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Amortized</b></font></p><p style="font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif; margin: 0px; text-align: center; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>cost</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom: 1.5pt solid black;" colspan="2"><p style="font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif; margin: 0px; text-align: center; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Gross unrealized</b></font></p><p style="font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif; margin: 0px; text-align: center; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>gain</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; text-align: center; border-bottom: 1.5pt solid black;" colspan="2">Gross unrealized loss</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; text-align: center; border-bottom: 1.5pt solid black;" colspan="2">Fair value</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="font-weight: normal; text-align: left;">Matures within one year:</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.7in; background-color: white;">&#160;</td><td style="font-weight: normal; text-align: left;">Corporate debentures</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">4,533</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">&#160;&#160;&#160;&#160;&#160;-</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">(6</td><td style="width: 15px; text-align: left;">)</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">4,527</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="font-weight: normal; text-align: left;">Matures after one year through three years:</td><td style="font-weight: bold;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td style="font-weight: bold; text-align: right;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td style="font-weight: bold;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td style="font-weight: bold; text-align: right;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td style="font-weight: bold;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td style="font-weight: bold; text-align: right;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td style="font-weight: bold;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td style="font-weight: bold; text-align: right;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="font-weight: normal; text-align: left; padding-bottom: 1.5pt;">Corporate debentures</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: left;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: right;">29,373</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: left;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: right;">1</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: left;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: right;">(222</td><td style="padding-bottom: 1.5pt; text-align: left;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: left;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: right;">29,152</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="font-weight: normal; text-align: left; padding-bottom: 4pt;">Total</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: 4pt double black; text-align: left;">$</td><td style="border-bottom: 4pt double black; text-align: right;">33,906</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: 4pt double black; text-align: left;">$</td><td style="border-bottom: 4pt double black; text-align: right;">1</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: 4pt double black; text-align: left;">$</td><td style="border-bottom: 4pt double black; text-align: right;">(228</td><td style="padding-bottom: 4pt; text-align: left;">)</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: 4pt double black; text-align: left;">$</td><td style="border-bottom: 4pt double black; text-align: right;">33,679</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td></tr></table><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 1.05in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.7in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">All investments with an unrealized loss as of December 31, 2016 are with continuous unrealized losses for less than 12 months.</font></p><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.7in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.7in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The below table sets forth the Company&#8217;s assets and liabilities that were measured at fair value as of December 31, 2016 and December 31, 2015 by level within the fair value hierarchy.</font></p><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.7in; text-align: justify;"><font style="font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif;">&#160;</font></p><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.7in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.</font></p><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 1.05in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; text-align: center; border-bottom: 1.5pt solid black;" colspan="14">December 31, 2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; text-align: center; border-bottom: 1.5pt solid black;" colspan="2">Level 1</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; text-align: center; border-bottom: 1.5pt solid black;" colspan="2">Level 2</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; text-align: center; border-bottom: 1.5pt solid black;" colspan="2">Level 3</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; text-align: center; border-bottom: 1.5pt solid black;" colspan="2">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="font-weight: normal; text-align: left;"><u>Assets:</u></td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.7in; background-color: white;">&#160;</td><td style="font-weight: normal; text-align: left;">Available-for-sale marketable securities</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">-</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">38,224</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">-</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">38,224</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="font-weight: normal; text-align: left; padding-bottom: 1.5pt;">Foreign currency derivative contracts</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: left;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: right;">-</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: left;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: right;">3</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: left;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: right;">-</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: left;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: right;">3</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="font-weight: normal; text-align: left; padding-bottom: 4pt;">Total financial assets</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: 4pt double black; text-align: left;">$</td><td style="border-bottom: 4pt double black; text-align: right;">-</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: 4pt double black; text-align: left;">$</td><td style="border-bottom: 4pt double black; text-align: right;">38,227</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: 4pt double black; text-align: left;">$</td><td style="border-bottom: 4pt double black; text-align: right;">-</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: 4pt double black; text-align: left;">$</td><td style="border-bottom: 4pt double black; text-align: right;">38,227</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="font-weight: normal; text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="font-weight: normal; text-decoration: underline; text-align: left;">Liabilities:</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="font-weight: normal; text-align: left; padding-bottom: 1.5pt;">Payment obligation related to acquisition</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: left;">$</td><td style="border-bottom: 1.5pt solid black; text-align: right;">-</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: left;">$</td><td style="border-bottom: 1.5pt solid black; text-align: right;">-</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: left;">$</td><td style="border-bottom: 1.5pt solid black; text-align: right;">1,070</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: left;">$</td><td style="border-bottom: 1.5pt solid black; text-align: right;">1,070</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="font-weight: normal; text-align: left; padding-bottom: 4pt;">Total liabilities</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: 4pt double black; text-align: left;">$</td><td style="border-bottom: 4pt double black; text-align: right;">-</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: 4pt double black; text-align: left;">$</td><td style="border-bottom: 4pt double black; text-align: right;">-</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: 4pt double black; text-align: left;">$</td><td style="border-bottom: 4pt double black; text-align: right;">1,070</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: 4pt double black; text-align: left;">$</td><td style="border-bottom: 4pt double black; text-align: right;">1,070</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td></tr></table><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px; text-align: right; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; text-align: center; border-bottom: 1.5pt solid black;" colspan="14">December 31, 2015</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; text-align: center; border-bottom: 1.5pt solid black;" colspan="2">Level 1</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; text-align: center; border-bottom: 1.5pt solid black;" colspan="2">Level 2</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; text-align: center; border-bottom: 1.5pt solid black;" colspan="2">Level 3</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; text-align: center; border-bottom: 1.5pt solid black;" colspan="2">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="font-weight: normal; text-align: left;"><u>Assets:</u></td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.7in; background-color: white;">&#160;</td><td style="font-weight: normal; text-align: left; padding-bottom: 1.5pt;">Available-for-sale marketable securities</td><td style="width: 15px; padding-bottom: 1.5pt;">&#160;</td><td style="width: 15px; border-bottom: 1.5pt solid black; text-align: left;">$</td><td style="width: 141px; border-bottom: 1.5pt solid black; text-align: right;">-</td><td style="width: 15px; padding-bottom: 1.5pt; text-align: left;">&#160;</td><td style="width: 15px; padding-bottom: 1.5pt;">&#160;</td><td style="width: 15px; border-bottom: 1.5pt solid black; text-align: left;">$</td><td style="width: 141px; border-bottom: 1.5pt solid black; text-align: right;">33,679</td><td style="width: 15px; padding-bottom: 1.5pt; text-align: left;">&#160;</td><td style="width: 15px; padding-bottom: 1.5pt;">&#160;</td><td style="width: 15px; border-bottom: 1.5pt solid black; text-align: left;">$</td><td style="width: 141px; border-bottom: 1.5pt solid black; text-align: right;">-</td><td style="width: 15px; padding-bottom: 1.5pt; text-align: left;">&#160;</td><td style="width: 15px; padding-bottom: 1.5pt;">&#160;</td><td style="width: 15px; border-bottom: 1.5pt solid black; text-align: left;">$</td><td style="width: 141px; border-bottom: 1.5pt solid black; text-align: right;">33,679</td><td style="width: 15px; padding-bottom: 1.5pt; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="font-weight: normal; text-align: left; padding-bottom: 4pt;">Total financial assets</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: 4pt double black; text-align: left;">$</td><td style="border-bottom: 4pt double black; text-align: right;">-</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: 4pt double black; text-align: left;">$</td><td style="border-bottom: 4pt double black; text-align: right;">33,679</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: 4pt double black; text-align: left;">$</td><td style="border-bottom: 4pt double black; text-align: right;">-</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: 4pt double black; text-align: left;">$</td><td style="border-bottom: 4pt double black; text-align: right;">33,679</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="font-weight: normal; text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="font-weight: normal; text-decoration: underline; text-align: left;">Liabilities:</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="font-weight: normal; text-align: left; padding-bottom: 1.5pt;">Foreign currency derivative contracts</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: left;">$</td><td style="border-bottom: 1.5pt solid black; text-align: right;">-</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: left;">$</td><td style="border-bottom: 1.5pt solid black; text-align: right;">30</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: left;">$</td><td style="border-bottom: 1.5pt solid black; text-align: right;">-</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: left;">$</td><td style="border-bottom: 1.5pt solid black; text-align: right;">30</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="font-weight: normal; text-align: left; padding-bottom: 4pt;">Total liabilities</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: 4pt double black; text-align: left;">$</td><td style="border-bottom: 4pt double black; text-align: right;">-</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: 4pt double black; text-align: left;">$</td><td style="border-bottom: 4pt double black; text-align: right;">30</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: 4pt double black; text-align: left;">$</td><td style="border-bottom: 4pt double black; text-align: right;">-</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: 4pt double black; text-align: left;">$</td><td style="border-bottom: 4pt double black; text-align: right;">30</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td></tr></table><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px; text-align: justify; text-indent: -28.35pt; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>&#160;</b></font></p><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.7in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The following table set forth the change of fair value measurements that are categorized within Level 3:</font></p><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px; text-align: justify; text-indent: -28.35pt; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Total fair value as of January 1, 2016</td><td>&#160;</td><td style="text-align: left;">$</td><td style="text-align: right;">-</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="width: 0.7in; background-color: white;">&#160;</td><td style="text-align: justify;">Payment obligation related to acquisition</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">2,237</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Settlement of payment obligation *)</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(1,400</td><td style="text-align: left;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 1.5pt;">Accretion of payment obligation</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: left;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: right;">233</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 4pt;">Total fair value as of December 31, 2016</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: 4pt double black; text-align: left;">$</td><td style="border-bottom: 4pt double black; text-align: right;">1,070</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td></tr></table><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px; text-align: justify; text-indent: -28.35pt; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top; font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif;"><td style="width: 0.7in; font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif;"></td><td style="width: 0.35in; font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">*)</font></td><td style="text-align: justify; font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$1,400 is included within other payables and accrued expenses on the balance sheet as the set milestone was met as of December 31, 2016.</font></td></tr></table><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px; text-align: justify; text-indent: -28.35pt; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px; text-align: justify; text-indent: -28.35pt; background-color: white;"></p><p style="color: #000000; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: 14.6667px; font-family: 'times new roman', serif; margin: 0px 0px 0px 0.7in; text-align: justify; background-color: white;">The fair value of the payment obligation related to acquisition was estimated based on several factors of which the most significant is the Company's revenue projections. The Company used a Monte Carlo Simulation of the triangular model with a discount rate of 15%. Payment obligations related to acquisition are revalued to current fair value at each reporting date. Any change in the fair value as a result of time passage is recognized in the financial expenses; any other changes in significant inputs such as the discount rate, the discount period or other factors used in the calculation, is recognized in operating expenses in the consolidated results of operations in the period the estimated fair value changes. Payment obligation related to acquisition will continue to be accounted for and measured at fair value until the contingencies are settled during fiscal years 2016, 2017 and 2018. Accretion of the payment obligation related to acquisition is included in financial expenses, net.</p> <div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.7in; text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">NOTE&#160;5:-</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">INVENTORIES</font></td></tr></table><p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -56.7pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: center;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.7in; background-color: white;">&#160;</td><td style="text-align: justify;">Raw materials and components</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">$</td><td style="width: 112px; text-align: right;">8,724</td><td style="width: 12px; text-align: left;">&#160;</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">$</td><td style="width: 112px; text-align: right;">12,322</td><td style="width: 12px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 1.5pt;">Finished products (*)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">7,079</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">11,800</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">15,803</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">24,122</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(*)</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Includes amounts of $ 145 and $ 705 for the years ended December 31, 2015 and 2016, respectively, with respect to inventory delivered to customers but for which revenue criteria have not yet been met.</font></td></tr></table></div> <table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="text-align: left; width: 0.7in;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">NOTE&#160;6:-</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">PROPERTY AND EQUIPMENT, NET</font></td></tr></table><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px; text-align: justify; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; text-align: center; border-bottom: 1.5pt solid black;" colspan="6">December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; text-align: center; border-bottom: 1.5pt solid black;" colspan="2">2015</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; text-align: center; border-bottom: 1.5pt solid black;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Cost:</td><td>&#160;</td><td style="text-align: center;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.7in; background-color: white;">&#160;</td><td style="text-align: justify;">Computer and peripheral equipment</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">1,421</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">1,935</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Office furniture and equipment</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">842</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,332</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Machinery and equipment</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">5,996</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">8,962</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 1.5pt;">Leasehold improvements</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: left;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: right;">2,311</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: left;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: right;">4,978</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: left;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: right;">10,570</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: left;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: right;">17,207</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 1.5pt;">Accumulated depreciation</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: left;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: right;">(5,792</td><td style="padding-bottom: 1.5pt; text-align: left;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: left;">&#160;</td><td style="border-bottom: 1.5pt solid black; text-align: right;">(7,960</td><td style="padding-bottom: 1.5pt; text-align: left;">)</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 4pt;">Property and equipment, net</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: 4pt double black; text-align: left;">$</td><td style="border-bottom: 4pt double black; text-align: right;">4,778</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: 4pt double black; text-align: left;">$</td><td style="border-bottom: 4pt double black; text-align: right;">9,247</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td></tr></table><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px; text-align: justify; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.7in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Depreciation expenses for the years ended December 31, 2014, 2015 and 2016 were $1,226, $1,560 and $2,447 respectively.</font></p><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.7in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="color: #000000; font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-stretch: normal; line-height: normal; margin: 0px 0px 0px 0.7in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">During the years ended December 31,2014, 2015 and 2016, the Company recorded a reduction of $168, $166 and $297, respectively to the cost and accumulated depreciation of fully depreciated equipment no longer used.</font></p> <div> <table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0.7in; text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">NOTE&#160;7:-</font></td> <td style="text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">INTANGIBLE ASSETS, NET</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">a.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Intangible assets are comprised of the following:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; text-indent: 2pt; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Weighted average</b></font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; text-indent: 2pt; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>amortization</b></font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>period</b></font></p> </td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">December 31,</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">Years</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: right;">&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left;">Original amount:</td> <td>&#160;</td> <td style="text-align: center;">&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1.05in; background-color: white;">&#160;</td> <td style="text-align: left;">Acquired technology</td> <td style="width: 12px;">&#160;</td> <td style="width: 112px; text-align: center;">8.14</td> <td style="width: 12px;">&#160;</td> <td style="width: 12px; text-align: left;">$</td> <td style="width: 112px; text-align: right;">1,566</td> <td style="width: 12px; text-align: left;">&#160;</td> <td style="width: 12px;">&#160;</td> <td style="width: 12px; text-align: left;">$</td> <td style="width: 112px; text-align: right;">1,566</td> <td style="width: 12px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left;">Customer relationships</td> <td>&#160;</td> <td style="text-align: center;">5</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">-</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,614</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left; padding-bottom: 1.5pt;">Non-competition agreement</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: center; padding-bottom: 1.5pt;">4</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">265</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,566</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">4,445</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left;">Accumulated amortization:</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left;">Acquired technology</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">543</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">766</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left;">Customer relationships</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">-</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">261</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left; padding-bottom: 1.5pt;">Non-competition agreement</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">33</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">543</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,060</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left; padding-bottom: 4pt;">Intangible assets, net</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,023</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">3,385</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Amortization expenses for the years ended December 31, 2014, 2015 and 2016 were $126, $222 and $519, respectively.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Future amortization expenses for the years ending:</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="text-align: justify; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">December 31,</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: right;" colspan="3">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="3">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1.05in; background-color: white;">&#160;</td> <td style="text-align: justify;">2017</td> <td style="width: 12px;">&#160;</td> <td style="width: 12px; text-align: left;">$</td> <td style="width: 112px; text-align: right;">689</td> <td style="width: 12px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>&#160;</td> <td style="text-align: justify;">2018</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">689</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1.05in; background-color: white;">&#160;</td> <td style="text-align: justify;">2019</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">689</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>&#160;</td> <td style="text-align: justify;">2020</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">656</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1.05in; background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 1.5pt;">Thereafter</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">662</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1.05in; background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">3,385</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> </div> <div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.7in; text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">NOTE&#160;8:-</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">OTHER PAYABLES AND ACCRUED EXPENSES</font></td></tr></table><p style="font: bold 10pt/normal 'times new roman', times, serif; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">&#160;</font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: center;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.7in; background-color: white;">&#160;</td><td style="text-align: justify;">Government authorities</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">344</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">993</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Warranty provision</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">940</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,741</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Professional services</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">248</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">693</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Payment obligation related to acquisition</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">-</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,400</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 1.5pt;">Accrued expenses</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,098</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,276</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">2,630</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">6,103</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table></div> <div> <table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0.7in; text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">NOTE&#160;9:-</font></td> <td style="text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">COMMITMENTS AND CONTINGENT LIABILITIES</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">a.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Lease commitments:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company leases facilities and vehicles under operating leases that expire on various dates through 2022. Aggregate minimum lease and rental payments under non-cancelable operating leases as of December 31, 2016, are (in the aggregate) and for each succeeding fiscal year below:</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">December 31,</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1.05in; background-color: white;">&#160;</td> <td style="text-align: justify;">2017</td> <td style="width: 12px;">&#160;</td> <td style="width: 12px; text-align: left;">$</td> <td style="width: 112px; text-align: right;">2,528</td> <td style="width: 12px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">2018</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,165</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">2019</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1,933</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">2020</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1,820</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 1.5pt;">2021 and thereafter</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">339</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">8,785</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Total rent expenses for the years ended December 31, 2014, 2015 and 2016 were $1,203, $1,443 and $1,664, respectively.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">b.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Charges:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">As of December 31, 2016, the Company has three lines of credit with Israeli banks for total borrowings of up to $4.1 million, all of which was undrawn as of December 31, 2016. These lines of credit are unsecured and available subject to the Company&#8217;s maintenance of a 30% ratio of total shareholders' equity to total assets. Interest rates across these credit lines varied from 1.5% to 2.3% as of December 31, 2016. Any borrowings under the credit lines would become repayable if Fortissimo Capital ceases to be the company controlling shareholder (which for this purpose generally requires Fortissimo Capital to continue to hold 25% of the Company outstanding ordinary shares).&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">As of December 31, 2016, the Company does not have any borrowings under the lines of credit. The Company is in compliance with the financial covenants.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">c.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Purchase commitments:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company estimates that at December 31, 2016, it had $34,182 of purchase commitments for goods and services from vendors.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">d.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Litigation:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">From time to time, the Company is party to various legal proceedings, claims and litigation that arise in the normal course of business. It is the opinion of management that the ultimate outcome of these matters will not have a material adverse effect on the Company&#8217;s financial position, results of operations or cash flows.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">e.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Royalty Commitments:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Under the Company&#8217;s agreement for purchasing print heads and other products, which was amended and restated in 2016, the Company is obligated to pay royalties at a rate set forth in the agreement up to an agreed maximum amount of $625 per year.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Royalties expenses for the years ended December 31, 2014, 2015 and 2016 were $590, $625 and $625, respectively.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">f.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Guarantees:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">As of December 31, 2016, the Company provided two bank guarantees of $ 359 in the aggregate for its rented facilities.</font></p> </div> <div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.7in; text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">NOTE&#160;10:-</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">SHAREHOLDERS&#8217; EQUITY</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">a.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Company&#8217;s shares:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Ordinary shares:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Any ordinary share confers equal rights to dividends and bonus shares, and to participate in the distribution of surplus assets upon liquidation in proportion to the par value of each share regardless of any premium paid thereon, all subject to the provisions of the Company&#8217;s articles of association. Each ordinary share confers its holder the right to participate in the general meeting of the Company and one vote in the voting.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Initial Public Offering:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On April 8, 2015, the Company closed its initial public offering (&#8220;IPO&#8221;) whereby 8,165,000 ordinary shares were sold by the Company to the public (inclusive of 1,065,000 ordinary shares pursuant to the full exercise of an overallotment option granted to the underwriters). The aggregate net proceeds received by the Company from the offering were $73,519, net of underwriting discounts and commissions and offering expenses all of which have already been paid by the Company. Upon the closing of the IPO, all of the Company&#8217;s outstanding preferred shares automatically converted into 12,628,741 ordinary shares.</font></p><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.7in; text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"></font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">b.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Share option plans:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">A summary of the Company&#8217;s share option activity and related information is as follows:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 7.05pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Number</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>of shares upon exercise</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Weighted average exercise price</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Weighted- average remaining contractual term</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(in years)</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Aggregate intrinsic</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>value</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1.05in; background-color: white;">&#160;</td><td style="text-align: left;">Outstanding at beginning of year</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">2,769,004</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">4.74</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">7.19</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">18,580</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">Granted</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">831,200</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">10.11</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">9.57</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2,103</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">Exercised</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(693,923</td><td style="text-align: left;">)</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1.38</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">3.65</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">7,821</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; padding-bottom: 1.5pt;">Forfeited</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(173,115</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">8.03</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">7.59</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; padding-bottom: 4pt;">Outstanding at end of year</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">2,733,166</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">7.01</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">7.78</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">16,054</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; padding-bottom: 4pt;">Exercisable at end of year</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,009,118</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">4.16</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">6.20</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">8,775</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; padding-bottom: 4pt;">Vested and expected to vest</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">2,252,262</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">6.33</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">7.50</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">14,750</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 7.05pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 7.05pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"></p><p style="font: 10pt/14.66px 'times new roman', serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px;">As of December 31, 2016, $8,875 in unrecognized compensation cost related to share options is expected to be recognized over a weighted average vesting period of 2.76 years.</p><p style="font: 10pt/14.66px 'times new roman', serif; margin: 0px 0px 0px 85.05pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p><p style="font: 10pt/14.66px 'times new roman', serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px;">The weighted average fair value of options granted during the years ended December 31, 2014, 2015 and 2016 was $4.46, $7.11 and $5.64 per share, respectively. The weighted average fair value of options vested during the year ended December 31, 2016 was $4.92. The total intrinsic value of options exercised during the years ended December 31, 2014, 2015 and 2016 was $189, $5,281 and $7,822, respectively.</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 7.05pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">c.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The options outstanding as of December 31, 2016, have been classified by exercise price, as follows:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td>&#160;</td><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Options outstanding</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; text-indent: -28.35pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>at December 31, 2015</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10"><p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Options exercisable</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>at December 31, 2016</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td>&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">Exercise price</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Number outstanding</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Weighted average exercise price</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Weighted average remaining contractual life</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Number outstanding</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Weighted average exercise price</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Weighted average remaining contractual life</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td>&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center;" colspan="2">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">$</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">In years</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center;" colspan="2">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">$</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">In years</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td>&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: justify;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: justify;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: justify;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: justify;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: justify;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: justify;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1.05in;">&#160;</td><td style="text-align: justify;">0.36-0.92</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">202,001</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">0.60</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">0.97</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">202,001</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">0.60</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">0.97</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td>&#160;</td><td style="text-align: justify;">1.14-1.60</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">74,311</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1.48</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">4.97</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">25,982</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1.26</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2.79</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td>&#160;</td><td style="text-align: justify;">2.07-2.17</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">969,514</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2.14</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">7.47</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">556,620</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2.14</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">7.46</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td>&#160;</td><td style="text-align: justify;">9.38-9.49</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">145,000</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">9.47</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">9.68</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">7,500</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">9.49</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">9.75</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td>&#160;</td><td style="text-align: justify;">9.97-10.10</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">794,722</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">10.04</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">9.13</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">64,366</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">9.97</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">7.57</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td>&#160;</td><td style="text-align: justify;">11.49-11.90</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">73,005</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">11.83</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">9.74</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">-</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">-</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">-</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td>&#160;</td><td style="text-align: justify; padding-bottom: 1.5pt;">12.97-15.29</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">474,613</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="text-align: right; padding-bottom: 1.5pt;">14.02</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="text-align: right; padding-bottom: 1.5pt;">8.63</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">152,649</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="text-align: right; padding-bottom: 1.5pt;">14.02</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="text-align: right; padding-bottom: 1.5pt;">8.63</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td>&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td>&#160;</td><td style="text-align: justify; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">2,733,166</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="text-align: right; padding-bottom: 4pt;">&#160;</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="text-align: right; padding-bottom: 4pt;">&#160;</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,009,118</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="text-align: right; padding-bottom: 4pt;">&#160;</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="text-align: right; padding-bottom: 4pt;">&#160;</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>&#160;</b></font><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>NTS</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"></p><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.7in; text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"></font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">d.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company&#8217;s Board of Directors approved option plans pursuant to which the Company is authorized to issue to employees, directors and officers of the Company and its subsidiaries (the &#8220;optionees&#8221;) options to purchase ordinary shares of NIS 0.01 par value each. Under the plans, options granted before 2014 generally vest in portions as follows: 50% of total options are exercisable two years after the date determined for each optionee, a further 25% three years after the date determined for each optionee and a 25% four years after the date determined for each optionee. Starting 2014, 25% of total options are exercisable one year after the date determined for each optionee and a further 6.25% at the end of each subsequent three month period for 3 years. Options that have vested are exercisable for up to 10 years from the grant date of the options to each employee.</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">During 2016, the Board of Directors approved an increase in the ordinary shares reserved for issuance to 4,818,862 ordinary shares. As of December 31, 2016, an aggregate of 1,401,875 ordinary shares were available for future grants.</font></p></div> <div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.7in; text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">NOTE&#160;11:-</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">EARNINGS PER SHARE</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.7in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The following table sets forth the computation of basic and diluted net earnings per share:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Year ended</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>December 31,</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2014</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; font-weight: bold;">Numerator for basic and diluted net earnings per share:</td><td>&#160;</td><td style="text-align: justify;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: justify;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.7in; background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 4pt;">Net income</td><td style="width: 15px; padding-bottom: 4pt;">&#160;</td><td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="width: 141px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">3,023</td><td style="width: 15px; text-align: left; padding-bottom: 4pt;">&#160;</td><td style="width: 15px; padding-bottom: 4pt;">&#160;</td><td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="width: 141px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">4,725</td><td style="width: 15px; text-align: left; padding-bottom: 4pt;">&#160;</td><td style="width: 15px; padding-bottom: 4pt;">&#160;</td><td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="width: 141px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">828</td><td style="width: 15px; text-align: left; padding-bottom: 4pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; font-weight: bold;">Weighted average shares outstanding, net of treasury stock:</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Denominator for basic net earnings per share</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">8,969,588</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">24,633,369</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">30,562,255</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Effect of dilutive securities:</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 1.5pt;">Employee share options</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,476,741</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,825,215</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,170,277</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 4pt;">Denominator for diluted net earnings per share</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">10,446,329</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">26,458,584</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">31,732,532</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 4pt;">Basic net earnings per share</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">0.34</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">0.19</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">0.03</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 4pt;">Diluted net earnings per share</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">0.29</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">0.18</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">0.03</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table></div> <div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.7in; text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">NOTE&#160;12:-</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>&#160;</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.7in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The following table summarizes the changes in accumulated balances of other comprehensive income (loss):</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Unrealized</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Gains (losses) on available for-sale marketable securities</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Unrealized</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Gains (losses) on cash flow hedges</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Foreign currency translation adjustment</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">Year ended December 31, 2016:</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.7in; background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">Beginning balance</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">$</td><td style="width: 112px; text-align: right;">(227</td><td style="width: 12px; text-align: left;">)</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">$</td><td style="width: 112px; text-align: right;">(28</td><td style="width: 12px; text-align: left;">)</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">$</td><td style="width: 112px; text-align: right;">(28</td><td style="width: 12px; text-align: left;">)</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">$</td><td style="width: 112px; text-align: right;">(283</td><td style="width: 12px; text-align: left;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">Other comprehensive income before reclassifications</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">133</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">97</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">43</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">273</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-bottom: 1.5pt; padding-left: 10pt;">Amounts reclassified from accumulated other comprehensive income (loss)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(6</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(66</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(72</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-bottom: 1.5pt; padding-left: 10pt;">Net current period other comprehensive income</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">127</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">31</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">43</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">201</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-bottom: 4pt; padding-left: 10pt;">Ending Balance</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(100</td><td style="text-align: left; padding-bottom: 4pt;">)</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">3</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">15</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(82</td><td style="text-align: left; padding-bottom: 4pt;">)</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>&#160;</b></font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Unrealized</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Gains (losses) on available for-sale marketable securities</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Unrealized</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Gains (losses) on cash flow hedges</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Foreign currency translation adjustment</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">Year ended December 31, 2015:</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.7in; background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">Beginning balance</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">$</td><td style="width: 112px; text-align: right;">-</td><td style="width: 12px; text-align: left;">&#160;</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">$</td><td style="width: 112px; text-align: right;">-</td><td style="width: 12px; text-align: left;">&#160;</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">$</td><td style="width: 112px; text-align: right;">(146</td><td style="width: 12px; text-align: left;">)</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">$</td><td style="width: 112px; text-align: right;">(146</td><td style="width: 12px; text-align: left;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">Other comprehensive income (loss) before reclassifications</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(227</td><td style="text-align: left;">)</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">5</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">118</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(104</td><td style="text-align: left;">)</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-bottom: 1.5pt; padding-left: 10pt;">Amounts reclassified from accumulated other comprehensive income (loss)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(33</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(33</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-bottom: 1.5pt; padding-left: 10pt;">Net current period other comprehensive income (loss)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(227</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(28</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">118</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(137</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-bottom: 4pt; padding-left: 10pt;">Ending Balance</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(227</td><td style="text-align: left; padding-bottom: 4pt;">)</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(28</td><td style="text-align: left; padding-bottom: 4pt;">)</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(28</td><td style="text-align: left; padding-bottom: 4pt;">)</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(283</td><td style="text-align: left; padding-bottom: 4pt;">)</td></tr></table></div> <div> <table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0.7in; text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">NOTE&#160;13:-</font></td> <td style="text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">TAXES ON INCOME</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">a.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Tax rates:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Taxable income of the Israeli companies is subject to the Israeli corporate tax at the rate as follows: 2014 and 2015: 26.5%, 2016: 25%</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">On January 4, 2016, the Israeli Parliament&#8217;s Plenum approved by a second and third reading the Bill for Amending the Income Tax Ordinance (No. 216) (Reduction of Corporate Tax Rate) which consists of the reduction of the corporate tax rate from 26.5% to 25%, effective January 1, 2016.&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">In December 2016, the Israeli Parliament approved the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), which reduces the corporate income tax rate to 24% (instead of 25%) effective from January 1, 2017 and to 23% effective from January 1, 2018.&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">b.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Tax benefits under the Law for the Encouragement of Capital Investments, 1959 (the &#8220;Law&#8221;):</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company&#8217;s production facilities in Israel have been granted &#8220;Beneficiary Enterprise&#8221; status under the Law. The Companies have been granted the &#8220;Alternative Benefit Track&#8221; under which the main benefits are a tax exemption for undistributed income and a reduced tax rate.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The duration of tax benefits is subject to a limitation of the earlier of 12 years from commencement of production, or 14 years from the approval date. The Israeli Companies began to utilize such tax benefits in 2010.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The entitlement to the above benefits is conditional upon the Company and its subsidiary fulfilling the conditions stipulated by the Law and regulations published. In the event of failure to comply with these conditions, the benefits may be partially or fully canceled and the Company or its subsidiary may be required to refund the amount of the benefits, in whole or in part, plus a consumer price index linkage adjustments and including interest.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Income from sources other than the &#8220;Beneficiary Enterprise&#8221; are subject to the tax at the regular rate.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In the event of distribution of dividends from the above mentioned tax-exempt income, the amount distributed will be subject to the same reduced corporate tax rate that would have been applied to the Beneficiary Enterprise&#8217;s income.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In addition tax-exempt income attributed to the Beneficiary Enterprise will subject the Company to taxes upon distribution in any manner including complete liquidation.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company does not intend to distribute any amounts of its undistributed tax-exempt income as dividend. The Company and its board of directors intend to reinvest its tax-exempt income and not to distribute such income as a dividend. Accordingly, no deferred income taxes have been provided on income attributable to the Company&#8217;s Beneficiary Enterprise programs as the undistributed tax exempt income is essentially permanent by reinvestment.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/14.66px 'times new roman', serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">As of December 31, 2016, tax-exempt income of $53,219 is attributable to the Company&#8217;s and its subsidiary&#8217;s various Beneficiary Enterprise programs. If such tax exempt income is distributed, it would be taxed at the reduced corporate tax rate applicable to such income, and $13,305 would be incurred as of December 31, 2016.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">A January 2011 amendment to the Law sets alternative benefit tracks to those previously in place, as follows: an investment grants track designed for enterprises located in national development zone A and two new tax benefits tracks (&#8220;Preferred Enterprise&#8221; and &#8220;Special Preferred Enterprise&#8221;), which provide for application of a unified tax rate to all preferred income of the company, as defined in the Law.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The 2011 Amendment canceled the availability of the benefits granted in accordance with the provisions of the Law prior to 2011 and, instead, introduced new benefits for income generated by a &#8220;Preferred Company&#8221; through its Preferred Enterprise (as such term is defined in the Law) effective as of January 1, 2011 and thereafter. A Preferred Company is defined as either (i) a company incorporated in Israel and not fully owned by a governmental entity or (ii) a limited partnership that: (a) was registered under the Partnerships Ordinance; (b) all of its limited partners are companies incorporated in Israel, but not all of them are governmental entities, which, among other things, has Preferred Enterprise status and are controlled and managed from Israel. Pursuant to the 2011 Amendment, a Preferred Company is entitled to a reduced corporate flat tax rate of 15% with respect to its preferred income derived by its Preferred Enterprise in 2011-2012, unless the Preferred Enterprise is located in a certain development zone, in which case the rate will be 10%. Such corporate tax rates were reduced to 12.5% and 7%, respectively, in 2013 and increased to 16% and 9% in 2014 and thereafter. Income derived by a Preferred Company from a &#8220;Special Preferred Enterprise&#8221; (as such term is defined in the Investment Law) would be entitled, during a benefits period of 10 years, to further reduced tax rates of 8%, or to 5% if the Special Preferred Enterprise is located in a certain development zone.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/14.66px 'times new roman', serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">In December 2016, the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), 2016 which includes Amendment 73 to the Law for the Encouragement of Capital Investments (&#8220;the Amendment&#8221;) was published. According to the Amendment, a preferred enterprise located in development area A will be subject to a tax rate of 7.5% instead of 9% effective from January 1, 2017 and thereafter (the tax rate applicable to preferred enterprises located in other areas remains at 16%).</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Dividends paid out of income attributed to a Preferred Enterprise are generally subject to withholding tax at source at the rate of 15% (20% from 2014) or such lower rate as may be provided in an applicable tax treaty. However, if such dividends are paid to an Israeli company, no tax will be withheld.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The 2011 Amendment also provided transitional provisions to address companies already enjoying current benefits. a Beneficiary Enterprise can elect to continue to benefit from the benefits provided to it before the 2011 Amendment came into effect, provided that certain conditions are met, or file a request with the Israeli Tax Authority according to which its income derived as of January 1, 2011 will be subject to the provisions of the Law as amended in 2011. The Company has examined the possible effect, of these provisions of the 2011 Amendment on its financial statements and has decided, not to opt to apply the new benefits under the 2011 Amendment for the Israeli parent company and for its Israeli subsidiary it elected in 2013 to apply the benefit under the 2011 Amendment.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Tax benefits under the Israeli Law for the Encouragement of Industry (Taxation), 1969:</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Israeli companies are an &#8220;Industrial Company&#8221; as defined by the Israeli Law for the Encouragement of Industry (Taxation), 1969, and, as such, are entitled to certain tax benefits including accelerated depreciation, deduction of public offering expenses in three equal annual installments and amortization of other intangible property rights for tax purposes.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">c.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Income taxes of non-Israeli subsidiaries:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Non-Israeli subsidiaries are taxed according to the tax laws in their respective countries of residence.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Taxes were not provided for undistributed earnings of the Company&#8217;s foreign subsidiaries. The Company&#8217;s board of directors has determined that the Company does not currently intend to distribute any amounts of its undistributed earnings as dividend. The Company intends to reinvest these earnings indefinitely in the foreign subsidiaries. Accordingly, no deferred income taxes have been provided. If these earnings were distributed to Israel in the form of dividends or otherwise, the Company would be subject to additional Israeli income taxes (subject to an adjustment for foreign tax credits) and foreign withholding taxes.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The amount of undistributed earnings of foreign subsidiaries that are considered to be reinvested as of December 31, 2016 was $5,321.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">d.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Final tax assessments:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company and its Israeli subsidiary received final tax assessments through 2010. The U.S subsidiary received final tax assessment through 2010 and the German and the Hong Kong Subsidiaries have not received a final tax assessment since inception.&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">e.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Carryforward losses for tax purposes:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', serif;">Carryforward operating tax losses of the Company&#8217;s Israeli subsidiary total approximately $24,000</font>&#160;<font style="font-family: 'times new roman', serif;">as of December 31, 2016 and may be used indefinitely.</font></p> <p style="font: 10pt/normal calibri, sans-serif; margin: 0px 0px 0px 75.6pt; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', serif;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">f.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Deferred income taxes:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company&#8217;s and its subsidiaries&#8217; deferred tax liabilities and assets are as follows:</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif; font-weight: bold;">&#160;</td> <td style="text-align: center; font-family: 'times new roman', serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">December 31,</td> <td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif; font-weight: bold;">&#160;</td> <td style="text-align: center; font-family: 'times new roman', serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td> <td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif; font-weight: bold;">&#160;</td> <td style="text-align: center; font-family: 'times new roman', serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td> <td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: center;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1.05in; background-color: white;">&#160;</td> <td style="text-align: justify; font-family: 'times new roman', serif;">Carryforward tax losses</td> <td style="width: 12px; font-family: 'times new roman', serif;">&#160;</td> <td style="width: 12px; text-align: left; font-family: 'times new roman', serif;">$</td> <td style="width: 112px; text-align: right; font-family: 'times new roman', serif;">1,536</td> <td style="width: 12px; text-align: left; font-family: 'times new roman', serif;">&#160;</td> <td style="width: 12px; font-family: 'times new roman', serif;">&#160;</td> <td style="width: 12px; text-align: left; font-family: 'times new roman', serif;">$</td> <td style="width: 112px; text-align: right; font-family: 'times new roman', serif;">2,015</td> <td style="width: 12px; text-align: left; font-family: 'times new roman', serif;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 1.5pt; font-family: 'times new roman', serif;">Temporary differences</td> <td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif;">&#160;</td> <td style="text-align: left; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2,086</td> <td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', serif;">&#160;</td> <td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif;">&#160;</td> <td style="text-align: left; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2,131</td> <td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', serif;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; font-family: 'times new roman', serif;">Deferred tax assets</td> <td style="font-family: 'times new roman', serif;">&#160;</td> <td style="text-align: left; font-family: 'times new roman', serif;">&#160;</td> <td style="text-align: right; font-family: 'times new roman', serif;">3,622</td> <td style="text-align: left; font-family: 'times new roman', serif;">&#160;</td> <td style="font-family: 'times new roman', serif;">&#160;</td> <td style="text-align: left; font-family: 'times new roman', serif;">&#160;</td> <td style="text-align: right; font-family: 'times new roman', serif;">4,146</td> <td style="text-align: left; font-family: 'times new roman', serif;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; font-family: 'times new roman', serif;">Deferred tax liability</td> <td style="font-family: 'times new roman', serif;">&#160;</td> <td style="text-align: left; font-family: 'times new roman', serif;">&#160;</td> <td style="text-align: right; font-family: 'times new roman', serif;">(77</td> <td style="text-align: left; font-family: 'times new roman', serif;">)</td> <td style="font-family: 'times new roman', serif;">&#160;</td> <td style="text-align: left; font-family: 'times new roman', serif;">&#160;</td> <td style="text-align: right; font-family: 'times new roman', serif;">(102</td> <td style="text-align: left; font-family: 'times new roman', serif;">)</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 1.5pt; font-family: 'times new roman', serif;">Valuation allowance</td> <td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif;">&#160;</td> <td style="text-align: left; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(3,287</td> <td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', serif;">)</td> <td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif;">&#160;</td> <td style="text-align: left; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(3,605</td> <td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', serif;">)</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 4pt; font-family: 'times new roman', serif;">Deferred tax assets, net</td> <td style="padding-bottom: 4pt; font-family: 'times new roman', serif;">&#160;</td> <td style="text-align: left; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">258</td> <td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', serif;">&#160;</td> <td style="padding-bottom: 4pt; font-family: 'times new roman', serif;">&#160;</td> <td style="text-align: left; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">439</td> <td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', serif;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The net change in the valuation allowance primarily reflects an increase in deferred tax assets on net operating and other temporary differences for which full valuation allowance is recorded.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">g.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Taxes on income are comprised as follows:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10"> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Year ended</b></font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>December 31,</b></font></p> </td> <td style="padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2014</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: justify;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1.05in; background-color: white;">&#160;</td> <td style="text-align: justify;">Current taxes</td> <td style="width: 12px;">&#160;</td> <td style="width: 12px; text-align: left;">$</td> <td style="width: 112px; text-align: right;">914</td> <td style="width: 12px; text-align: left;">&#160;</td> <td style="width: 12px;">&#160;</td> <td style="width: 12px; text-align: left;">$</td> <td style="width: 112px; text-align: right;">766</td> <td style="width: 12px; text-align: left;">&#160;</td> <td style="width: 12px;">&#160;</td> <td style="width: 12px; text-align: left;">$</td> <td style="width: 112px; text-align: right;">829</td> <td style="width: 12px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 1.5pt;">Deferred taxes</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(132</td> <td style="text-align: left; padding-bottom: 1.5pt;">)</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(57</td> <td style="text-align: left; padding-bottom: 1.5pt;">)</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(181</td> <td style="text-align: left; padding-bottom: 1.5pt;">)</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">782</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">709</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">648</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">Domestic</td> <td>&#160;</td> <td style="text-align: left;">$</td> <td style="text-align: right;">201</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">$</td> <td style="text-align: right;">(113</td> <td style="text-align: left;">)</td> <td>&#160;</td> <td style="text-align: left;">$</td> <td style="text-align: right;">(70</td> <td style="text-align: left;">)</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 1.5pt;">Foreign</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">581</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">822</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">718</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">782</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">709</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">648</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10"> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Year ended</b></font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>December 31,</b></font></p> </td> <td style="padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2014</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">Domestic taxes:</td> <td>&#160;</td> <td style="text-align: justify;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: justify;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1.05in; background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 1.5pt;">Current taxes</td> <td style="width: 12px; padding-bottom: 1.5pt;">&#160;</td> <td style="width: 12px; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td> <td style="width: 112px; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">201</td> <td style="width: 12px; text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="width: 12px; padding-bottom: 1.5pt;">&#160;</td> <td style="width: 12px; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td> <td style="width: 112px; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(113</td> <td style="width: 12px; text-align: left; padding-bottom: 1.5pt;">)</td> <td style="width: 12px; padding-bottom: 1.5pt;">&#160;</td> <td style="width: 12px; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td> <td style="width: 112px; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(70</td> <td style="width: 12px; text-align: left; padding-bottom: 1.5pt;">)</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">Foreign taxes:</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">Current taxes</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">713</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">879</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">899</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 1.5pt;">Deferred taxes</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(132</td> <td style="text-align: left; padding-bottom: 1.5pt;">)</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(57</td> <td style="text-align: left; padding-bottom: 1.5pt;">)</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(181</td> <td style="text-align: left; padding-bottom: 1.5pt;">)</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">581</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">822</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">718</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 4pt;">Taxes on income</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">782</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">709</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">648</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">h.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Uncertain tax positions:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">December 31,</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: center;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1.05in; background-color: white;">&#160;</td> <td style="text-align: justify;">Beginning of year</td> <td style="width: 12px;">&#160;</td> <td style="width: 12px; text-align: left;">$</td> <td style="width: 112px; text-align: right;">1,187</td> <td style="width: 12px; text-align: left;">&#160;</td> <td style="width: 12px;">&#160;</td> <td style="width: 12px; text-align: left;">$</td> <td style="width: 112px; text-align: right;">1,074</td> <td style="width: 12px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 1.5pt;">Decrease related to prior years&#8217; positions</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(113</td> <td style="text-align: left; padding-bottom: 1.5pt;">)</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(70</td> <td style="text-align: left; padding-bottom: 1.5pt;">)</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 4pt;">Balance at December 31</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,074</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,004</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">As of December 31, 2016, the entire amount of the unrecognized tax benefits could affect the Company&#8217;s income tax provision and the effective tax rate.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">During the years ended December 31, 2014, 2015 and 2016, an amount of $(79), $26 and $0, respectively, was added to the unrecognized tax benefits derived from interest and exchange rate differences expenses related to prior years&#8217; uncertain tax positions. As of December 31, 2015 and 2016, the Company had accrued interest related to uncertain tax positions in the amounts of $96, which is included within income tax accrual on the balance sheets.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Exchange rate differences are recorded within financial income (expenses), net, while interest is recorded within income tax expense.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company believes that it has adequately provided for any reasonably foreseeable outcome related to tax audits and settlement. The final tax outcome of its tax audits could be different from that which is reflected in the Company&#8217;s income tax provisions and accruals. Such differences could have a material effect on the Company&#8217;s income tax provision and net income in the period in which such determination is made.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">i.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">A reconciliation between the theoretical tax expense, assuming all income is taxed at the statutory tax rate applicable to income of the Company and the actual tax expense as reported in the statement of operations is as follows:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="11"> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Year ended</b></font></p> <p style="font: 10pt/12pt 'times new roman', times, serif; margin: 0px 0px 0px 2.85pt; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>December 31,</b></font></p> </td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: center; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="3"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2014</b></font></td> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: center; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="3"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2015</b></font></td> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: center; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="3"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2016</b></font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: justify; line-height: 15.33px;" colspan="3"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: center; line-height: 15.33px;" colspan="3"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px;" colspan="3"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="width: 1.05in; line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Income before taxes, as reported in the consolidated statements of income</font></td> <td style="width: 12px; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="width: 12px; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td> <td style="width: 112px; text-align: right; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">3,805</font></td> <td style="width: 12px; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="width: 12px; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="width: 12px; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td> <td style="width: 112px; text-align: right; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">5,434</font></td> <td style="width: 12px; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="width: 12px; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="width: 12px; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td> <td style="width: 112px; text-align: right; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,476</font></td> <td style="width: 12px; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Theoretical tax expense on the above amount at the Israeli statutory tax rate</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,008</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,440</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">369</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Tax adjustment in respect of different tax rate of foreign subsidiaries</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">44</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">101</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">114</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Non-deductible expenses and other permanent differences</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">190</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">184</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">140</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Deferred taxes on losses and other temporary differences for which valuation allowance was provided, net</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">218</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">546</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">318</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Stock compensation relating to stock options per ASC No. 718</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">238</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">606</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">716</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Change in tax rate</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">-</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">-</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">240</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Beneficiary enterprise benefits (*)</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(510</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(1,685</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(1,190</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Foreign exchange differences (**)</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(96</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(375</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">-</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Increase (decrease) in other uncertain tax positions-net</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">112</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(113</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(70</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Other</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">5</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">5</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">11</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Actual tax expense</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td> <td style="text-align: right; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">782</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td> <td style="text-align: right; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">709</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td> <td style="text-align: right; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">648</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(*) Basic earnings per share amounts of the benefit resulting from the &#8220;Beneficiary Enterprise&#8221; status</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.06</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.19</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.04</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Diluted earnings per share amounts of the benefit resulting from the &#8220;Beneficiary Enterprise&#8221; status</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.05</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.17</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.04</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;<font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <table style="width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman', times, serif; font-size: 10pt; word-spacing: 0px; widows: 1; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 101px;">&#160;</td> <td style="font: 10pt/normal calibri, sans-serif; width: 34px; font-stretch: normal;"><font style="font-family: 'times new roman', serif; font-size: 10pt;">(**)</font></td> <td style="font: 10pt/normal calibri, sans-serif; text-align: justify; padding-bottom: 8pt; font-stretch: normal;"><font style="font-family: 'times new roman', serif; font-size: 10pt;">Until 2016 results for tax purposes were measured under, Measurement of results for tax purposes under the Income Tax (Inflationary Adjustments) Law, 1985, in terms of earnings in NIS. As explained in Note 2b, the financial statements are measured in U.S. dollars. The difference between the annual changes in the NIS/dollar exchange rate causes a difference between taxable income and the income before taxes shown in the financial statements. In accordance with ASC 740-10-25-3(F), the Company has not provided deferred income taxes in respect of the difference between the functional currency and the tax bases of assets and liabilities. Starting 2016 of the Israeli companies the results for tax purposes are measured in U.S dollars.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">j.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Income before income taxes is comprised as follows:</font></td> </tr> </table> <p style="font: 13.33px/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">&#160;</p> <table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10"> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Year ended</b></font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>December 31,</b></font></p> </td> <td style="padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2014</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: justify;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1.05in; background-color: white;">&#160;</td> <td style="text-align: justify;">Domestic</td> <td style="width: 12px;">&#160;</td> <td style="width: 12px; text-align: left;">$</td> <td style="width: 112px; text-align: right;">2,212</td> <td style="width: 12px; text-align: left;">&#160;</td> <td style="width: 12px;">&#160;</td> <td style="width: 12px; text-align: left;">$</td> <td style="width: 112px; text-align: right;">3,204</td> <td style="width: 12px; text-align: left;">&#160;</td> <td style="width: 12px;">&#160;</td> <td style="width: 12px; text-align: left;">$</td> <td style="width: 112px; text-align: right;">(507</td> <td style="width: 12px; text-align: left;">)</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 1.5pt;">Foreign</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,593</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2,230</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,983</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 4pt;">Income before income taxes</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">3,805</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">5,434</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,476</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> </div> <div> <table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0.7in; text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">NOTE&#160;14:-</font></td> <td style="text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">GEOGRAPHIC INFORMATION</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.7in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Summary information about geographic areas:</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.7in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.7in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company operates in one reportable segment (see Note 1 for a brief description of the Company&#8217;s business). Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker, who is the chief executive officer, in deciding how to allocate resources and assessing performance. The Company&#8217;s chief operating decision maker evaluates the Company&#8217;s financial information and resources and assesses the performance of these resources on a consolidated basis.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.7in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.7in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The total revenues are attributed to geographic areas based on the location of the end-users.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.7in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.7in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The following table presents total revenues for the years ended December 31, 2014, 2015 and 2016 and long-lived assets as of December 31, 2015 and 2016:</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.7in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.7in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif;">&#160;</td> <td style="text-align: center; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10"> <p style="font: 10pt/normal 'times new roman', serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><b>Year ended</b></p> <p style="font: 10pt/normal 'times new roman', serif; margin: 0px 0px 0px 2.85pt; text-align: center; font-stretch: normal;"><b>December 31,</b></p> </td> <td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td>&#160;</td> <td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif; font-weight: bold;">&#160;</td> <td style="text-align: center; font-family: 'times new roman', serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2014</td> <td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif; font-weight: bold;">&#160;</td> <td style="text-align: center; font-family: 'times new roman', serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td> <td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif; font-weight: bold;">&#160;</td> <td style="text-align: center; font-family: 'times new roman', serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td> <td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; font-family: 'times new roman', serif;">Revenues from sales to customers located in:</td> <td>&#160;</td> <td style="text-align: justify;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 0.7in; background-color: white;">&#160;</td> <td style="text-align: justify; padding-left: 2.85pt; font-family: 'times new roman', serif;">Americas (mostly U.S)</td> <td style="width: 12px; font-family: 'times new roman', serif;">&#160;</td> <td style="width: 12px; text-align: left; font-family: 'times new roman', serif;">$</td> <td style="width: 112px; text-align: right; font-family: 'times new roman', serif;">36,752</td> <td style="width: 12px; text-align: left; font-family: 'times new roman', serif;">&#160;</td> <td style="width: 12px; font-family: 'times new roman', serif;">&#160;</td> <td style="width: 12px; text-align: left; font-family: 'times new roman', serif;">$</td> <td style="width: 112px; text-align: right; font-family: 'times new roman', serif;">48,790</td> <td style="width: 12px; text-align: left; font-family: 'times new roman', serif;">&#160;</td> <td style="width: 12px; font-family: 'times new roman', serif;">&#160;</td> <td style="width: 12px; text-align: left; font-family: 'times new roman', serif;">$</td> <td style="width: 112px; text-align: right; font-family: 'times new roman', serif;">72,011</td> <td style="width: 12px; text-align: left; font-family: 'times new roman', serif;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-left: 2.85pt; font-family: 'times new roman', serif;">EMEA</td> <td style="font-family: 'times new roman', serif;">&#160;</td> <td style="text-align: left; font-family: 'times new roman', serif;">&#160;</td> <td style="text-align: right; font-family: 'times new roman', serif;">18,004</td> <td style="text-align: left; font-family: 'times new roman', serif;">&#160;</td> <td style="font-family: 'times new roman', serif;">&#160;</td> <td style="text-align: left; font-family: 'times new roman', serif;">&#160;</td> <td style="text-align: right; font-family: 'times new roman', serif;">21,600</td> <td style="text-align: left; font-family: 'times new roman', serif;">&#160;</td> <td style="font-family: 'times new roman', serif;">&#160;</td> <td style="text-align: left; font-family: 'times new roman', serif;">&#160;</td> <td style="text-align: right; font-family: 'times new roman', serif;">24,720</td> <td style="text-align: left; font-family: 'times new roman', serif;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 2.85pt; font-family: 'times new roman', serif;">Asia Pacific - other</td> <td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif;">&#160;</td> <td style="text-align: left; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">11,608</td> <td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', serif;">&#160;</td> <td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif;">&#160;</td> <td style="text-align: left; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">16,015</td> <td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', serif;">&#160;</td> <td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif;">&#160;</td> <td style="text-align: left; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">11,963</td> <td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', serif;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-left: 2.85pt;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 4pt; padding-left: 2.85pt;">&#160;</td> <td style="padding-bottom: 4pt; font-family: 'times new roman', serif;">&#160;</td> <td style="text-align: left; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">66,364</td> <td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', serif;">&#160;</td> <td style="padding-bottom: 4pt; font-family: 'times new roman', serif;">&#160;</td> <td style="text-align: left; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">86,405</td> <td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', serif;">&#160;</td> <td style="padding-bottom: 4pt; font-family: 'times new roman', serif;">&#160;</td> <td style="text-align: left; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">108,694</td> <td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', serif;">&#160;</td> </tr> </table> <p style="font: 13.33px/normal 'times new roman', times, serif; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">&#160;</p> <table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">December 31,</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">Long-lived assets, by geographic region:</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 0.7in; background-color: white;">&#160;</td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Americas (<font style="line-height: 14.66px;">mostly U.S)</font></font></td> <td style="width: 12px;">&#160;</td> <td style="width: 12px; text-align: left;">$</td> <td style="width: 112px; text-align: right;">314</td> <td style="width: 12px; text-align: left;">&#160;</td> <td style="width: 12px;">&#160;</td> <td style="width: 12px; text-align: left;">$</td> <td style="width: 112px; text-align: right;">268</td> <td style="width: 12px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">Israel</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">3,851</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">8,385</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">EMEA</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">275</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">341</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 1.5pt;">Asia Pacific</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">338</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">253</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">4,778</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">9,247</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.7in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Major customers&#8217; data as a percentage of total revenues:</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.7in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.7in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The following table sets forth the customers that represented 10% or more of the Company&#8217;s total revenues in each of the periods set forth below</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10"> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Year ended</b></font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>December 31,</b></font></p> </td> <td style="padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2014</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: justify;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 0.7in; background-color: white;">&#160;</td> <td style="text-align: justify;">Customer A</td> <td style="width: 12px;">&#160;</td> <td style="width: 12px; text-align: left;">&#160;</td> <td style="width: 112px; text-align: right;">25</td> <td style="width: 12px; text-align: left;">%</td> <td style="width: 12px;">&#160;</td> <td style="width: 12px; text-align: left;">&#160;</td> <td style="width: 112px; text-align: right;">18</td> <td style="width: 12px; text-align: left;">%</td> <td style="width: 12px;">&#160;</td> <td style="width: 12px; text-align: left;">&#160;</td> <td style="width: 112px; text-align: right;">21</td> <td style="width: 12px; text-align: left;">%</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">Customer B</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">15</td> <td style="text-align: left;">%</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">15</td> <td style="text-align: left;">%</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">(* -</td> <td style="text-align: left;"></td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">Customer C</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">(* -</td> <td style="text-align: left;"></td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">(* -</td> <td style="text-align: left;"></td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">16</td> <td style="text-align: left;">%</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -56.7pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">*)</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Less than 10%</font></td> </tr> </table> </div> <div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.7in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>NOTE&#160;15:-</b></font></td><td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>SELECTED STATEMENTS OF INCOME DATA</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">a.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Financial expenses (income), net:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Year ended</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>December 31,</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2014</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">Financial income:</td><td>&#160;</td><td style="text-align: justify;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: center;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">&#160;</td><td>&#160;</td><td style="text-align: justify;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.7in; background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">Interest on bank deposits and other</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">8</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">156</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">203</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">Foreign currency translation differences</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">811</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">18</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">196</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-bottom: 1.5pt; padding-left: 10pt;">Interest on marketable securities</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">260</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,052</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-bottom: 1.5pt; padding-left: 10pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">819</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">434</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,451</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">Financial expenses:</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">Bank charges</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(166</td><td style="text-align: left;">)</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(160</td><td style="text-align: left;">)</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(277</td><td style="text-align: left;">)</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">Foreign currency translation differences</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(668</td><td style="text-align: left;">)</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(495</td><td style="text-align: left;">)</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(674</td><td style="text-align: left;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-bottom: 1.5pt; padding-left: 10pt;">Amortization of premium and accretion of discount on available-for-sale marketable securities</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(113</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(454</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-bottom: 4pt; padding-left: 10pt;">Total financial expense (income):</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">15</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">334</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(46</td><td style="text-align: left; padding-bottom: 4pt;">)</td></tr></table></div> <div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.7in; text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">NOTE&#160;16:-</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">BALANCES AND TRANSACTIONS WITH RELATED PARTIES</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.7in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company&#8217;s policy is to enter into transactions with related parties on terms that, on the whole, are no less favorable, than those available from unaffiliated third parties. Based on the Company&#8217;s experience in the business sectors in which it operates and the terms of its transactions with unaffiliated third parties, the Company believe that all of the transactions described below met this policy standard at the time they occurred.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.7in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.7in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><u>Fortissimo Capital Fund II (GP), L.P (&#8220;Fortissimo&#8221;)</u></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.7in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.7in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Fortissimo is the controlling shareholder of the Company as of December 31, 2016. Pursuant to a management fee agreement between the Company and Fortissimo, the Company was required to pay Fortissimo an annual fee of $120 plus an amount equal to 5% of the Company&#8217;s net income, as defined in the management services agreement, up to a maximum of $250 per year. During the years ended December 31, 2014 and 2015 the Company recorded an expense of $160 and $30, respectively, in respect of payments to Fortissimo.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.7in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.7in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In March 2015 the Company and Fortissimo agreed to terminate the management service agreement upon the consummation of an IPO. Under the agreement the Company agreed to pay Fortissimo a one-time payment of $750.</font></p></div> <div> <table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0.7in; text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">NOTE&#160;17:-</font></td> <td style="text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">SUBSEQUENT EVENT</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>&#160;</b></font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/14.66px 'times new roman', serif; margin: 0px 0px 0px 0.7in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">On January 10, 2017 the Company had signed a master purchase agreement (&#8220;MPA&#8221;) with Amazon Inc. for a five years period beginning on May 1, 2016. Under the MPA the Company had Granted Amazon with 2,932,176 warrants to purchase ordinary shares of the Company in exercise price of $13.03. The Warrant are subject to vesting as a function of payments for purchased products and services of up to $150,000 over a five years period with the shares vesting incrementally each time Amazon makes a payment totaling $5,000 to the Company.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/14.66px 'times new roman', serif; margin: 0px 0px 0px 0.7in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">On January 31, 2017 the Company closed a follow on and secondary offering where by 8,625,000 ordinary shares were sold in the transaction to the public, 2,300,000 were sold by the Company and 6,325,000 were sold by the Selling Shareholders (inclusive of 1,125,000 ordinary shares pursuant to the full exercise of an overallotment option granted to the underwriters). The gross proceeds received by the Company from the offering were $36,053, net of underwriting discounts and commissions, Offering expenses to be paid by the Company are were $951.</p> </div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.7in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-size-adjust: none; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-size-adjust: none; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">a.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Use of estimates:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; margin-left: 1.05in; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. The Company&#8217;s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. Actual results could differ from those estimates.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; margin-left: 1.05in; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On an ongoing basis, the Company&#8217;s management evaluates estimates, including those related to&#160;<font style="background-color: white;">intangible assets and goodwill</font>, tax assets and liabilities, fair values of stock-based awards, inventory write-offs, warranty provision, allowance for bad debt and provision for returns<font style="background-color: white;">.</font>&#160;Such estimates are based on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.</font></p></div> <div> <table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">b.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Financial statements in United States dollars:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/14.66px 'times new roman', serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; margin-left: 1.05in; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">A majority of the revenues of the Company and its subsidiaries are denominated in U.S. dollars (&#8220;dollar&#8221; or &#8220;dollars&#8221;). The dollar is the primary currency of the economic environment in which the Company and its subsidiaries, other than the Company&#8217;s German subsidiary, operate. Thus, the functional and reporting currency of the Company and its subsidiaries, other than the Company&#8217;s German subsidiary, is the dollar. Accordingly, monetary accounts maintained in currencies other than the dollar are re-measured into U.S. dollars in accordance with Accounting Standards Codification (&#8220;ASC&#8221;) No. 830 &#8220;Foreign Currency Matters&#8221;. Changes in currency exchange rates between the Company&#8217;s functional currency and the currency in which a transaction is denominated are included in the Company&#8217;s results of operations as finance income (expenses), net in the period in which the currency exchange rates change.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; margin-left: 1.05in; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">For the Company&#8217;s subsidiary in Germany whose functional currency is the Euro all amounts on the balance sheets have been translated into the dollar using the exchange rates in effect on the relevant balance sheet dates. All amounts in the statements of income have been translated into the dollar using the exchange rate on the respective dates on which those elements are recognized. The resulting translation adjustments are reported as a component of accumulated other comprehensive income in shareholders&#8217; equity.</font></p> </div> <div><table style="width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman', times, serif; font-size: 10pt; word-spacing: 0px; widows: 1; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 67px; line-height: 15.33px; font-family: calibri, sans-serif;">&#160;</td><td style="width: 34px; line-height: 15.33px; font-family: calibri, sans-serif;"><font style="font-family: 'times new roman', serif; font-size: 10pt;">c.</font></td><td style="line-height: 15.33px; font-family: calibri, sans-serif;"><font style="font-family: 'times new roman', serif; font-size: 10pt;">Principles of consolidation:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p><p style="font: 10pt/normal 'times new roman', serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions including profits from intercompany have been eliminated upon consolidation.</p></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; margin-left: 1.05in; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1422.72px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">d.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Cash equivalents:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; margin-left: 1.05in; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less, at acquisition.</font></p></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; margin-left: 1.05in; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1422.72px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">e.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Short-term deposits:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; margin-left: 1.05in; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Short-term bank deposits are deposits with an original maturity of more than three months but less than one year from the date of acquisition.</font></p></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; margin-left: 1.05in; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1422.72px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">f.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Marketable securities:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; margin-left: 1.05in; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company accounts for investments in marketable securities in accordance with ASC 320, &#8220;Investments - Debt and Equity Securities&#8221;. Management determines the appropriate classification of its investments in debt securities at the time of purchase and re-evaluates such determinations at each balance sheet date.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; margin-left: 1.05in; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; margin-left: 1.05in; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company classifies marketable securities as available-for-sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses reported in &#8220;accumulated other comprehensive income&#8221; in shareholders&#8217; equity. Realized gains and losses on sales of marketable securities are included in finance expenses, net and are derived using the specific identification method for determining the cost of securities.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; margin-left: 1.05in; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The amortized cost of marketable securities is adjusted for amortization of premium and accretion of discount to maturity, both of which, together with interest, are included in finance expenses, net.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; margin-left: 1.05in; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company recognizes an impairment charge when a decline in the fair value of its investments in debt securities below the cost basis of such securities is judged to be other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Company&#8217;s intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. For securities that are deemed other-than-temporarily impaired (&#8220;OTTI&#8221;), the amount of impairment is recognized in the statement of operations and is limited to the amount related to credit losses, while impairment related to other factors is recognized in accumulated other comprehensive income (loss). The Company did not recognize OTTI on its marketable securities in 2014, 2015 and 2016.</font></p></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; margin-left: 1.05in; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-size-adjust: none; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-size-adjust: none; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">g.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Inventories:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; margin-left: 1.05in; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Inventories are measured at the lower of cost or market value. The cost of inventories comprises costs of purchase and costs incurred in bringing the inventories to their present location and condition. Inventory write-down is measured as the difference between the cost of the inventory and market based upon assumptions about future demand, and is charged to the cost of sales.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Cost of inventories is determined as follows:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Raw and packing materials - on the basis of weighted average cost.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Finished goods - on the basis of average costs of materials, and other direct manufacturing cost.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Inventory write offs have been provided to cover risks arising from dead and slow moving items, technological obsolescence and excess inventories according to revenue forecasts.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">During the years ended December 31, 2014, 2015 and 2016 the Company recorded inventory write off in a total amount of $287, $824 and $2,211, respectively.</font></p></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-size-adjust: none; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-size-adjust: none; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">h.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Property and equipment:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Property and equipment are measured at cost, including directly attributable costs, less accumulated depreciation and accumulated impairment losses. Depreciation is calculated on a straight-line basis over the useful life of the assets at annual rates as follows:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">%</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: center;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Office furniture and equipment</td><td>&#160;</td><td style="text-align: center;">&#160;</td><td style="text-align: center;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">7 - 20</font></td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="width: 1.05in; background-color: white;">&#160;</td><td style="text-align: justify;">Computer and peripheral equipment</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: center;">&#160;</td><td style="width: 141px; text-align: center;">33</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Machinery and equipment</td><td>&#160;</td><td style="text-align: center;">&#160;</td><td style="text-align: center;">15</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Leasehold improvements</td><td>&#160;</td><td style="text-align: center;">&#160;</td><td style="text-align: center;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">*)</font></td><td style="text-align: left;">&#160;</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-size-adjust: none; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 1.05in; font-size-adjust: none; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">*)</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term (including the extension option held by the Company and intended to be exercised) and the expected life of the improvement.</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-size-adjust: none; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-size-adjust: none; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">i.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Goodwill and other Intangible assets:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Goodwill reflects the excess of the purchase price of business acquired over the fair value of net assets acquired. Under ASC No. 350, &#8220;Intangibles &#8211; Goodwill and other&#8221; (&#8220;ASC No. 350&#8221;), goodwill is not amortized but rather is tested for impairment at least annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. In accordance with ASC No. 350, the Company performs an annual impairment test on December 31 of each year.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company operates in one operating segment and this segment comprises the only reporting unit. The Company tests goodwill using the two-step process in accordance with ASC No. 350. The first step, identifying a potential impairment, compares the fair value of the reporting unit with its carrying amount. If the carrying amount exceeds its fair value, the second step would need to be performed; otherwise, no further step is required. The second step, measuring the impairment loss, compares the implied fair value of the goodwill with the carrying amount of the goodwill. Any excess of the goodwill carrying amount over the applied fair value is recognized as an impairment loss, and the carrying value of goodwill is written down to fair value. During the year ended December 31, 2016, no impairment of goodwill has been identified.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The intangible assets of the Company are not considered to have an indefinite useful life and are amortized over their useful lives. Customer relationships are amortized over their estimated useful lives in proportion to the economic benefits realized. This accounting policy results in accelerated amortization of such assets as compared to the straight-line method. Acquired technology and non-competition agreements are amortized on a straight-line basis.</font></p></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-size-adjust: none; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-size-adjust: none; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">j.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Impairment of long lived assets and intangible assets subject to amortization:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Property and equipment and intangible assets subject to amortization are reviewed for impairment in accordance with ASC No. 360, &#8220;Accounting for the Impairment or Disposal of Long-Lived Assets,&#8221; whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">During the years ended December 31, 2014, 2015 and 2016, no impairment losses were recorded.</font></p></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-size-adjust: none; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-size-adjust: none; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">k.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Business combinations:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company accounts for business combinations in accordance with ASC No. 805, &#8220;Business Combinations&#8221; (&#8220;ASC No. 805&#8221;). ASC No. 805 requires recognition of assets acquired, liabilities assumed, and any non-controlling interest at the acquisition date, measured at their fair values as of that date. Any excess of the fair value of net assets acquired over purchase price and any subsequent changes in estimated contingencies are to be recorded in consolidated statements of income. In addition, changes in valuation allowance related to acquired deferred tax assets and in acquired income tax position are to be recognized in consolidated statements of income.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Acquisition related costs are expensed to the statements of income in the period incurred.</font></p></div> <div> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">l.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Revenue recognition:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company generates revenues from the sale of systems, inks and consumable products and from services to its products. The Company generates revenues from sale of its products directly to end-users and indirectly through independent distributors.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/14.66px 'times new roman', serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Revenues are recognized in accordance with &#8220;Revenue Recognition&#8221; (&#8220;ASC No. 605&#8221;), provided that the collection of the resulting receivable is probable, there is persuasive evidence of an arrangement, no significant obligations remain and the price is fixed or determinable.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Revenues from selling these products are recognized upon delivery, provided that all other revenue recognition criteria are met. In respect of sale of systems with installation and training, the Company considers the installation and training to be not essential to the functionality of the systems. Therefore, the Company recognizes the revenues upon delivery in accordance with the agreed-upon delivery terms once all other revenue recognition criteria have been met.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company considers all arrangements with payment terms extending beyond the standard payment terms not to be fixed or determinable. If the fee is not fixed or determinable, revenue is recognized as payments become due from the customer, provided that all other revenue recognition criteria have been met.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Revenues from ink and other consumable products when sold separately are generally recognized upon shipment assuming all other revenue recognition criteria have been met.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Although, in general, the Company does not grant rights of return, there are certain instances where such rights are granted. The Company maintains a provision for returns in accordance with ASC No 605, which is estimated, based primarily on historical experience as well as management judgment, and is recorded as reduction of revenue. Such provision amounted to $396 and $346 as of December 31, 2015 and 2016, respectively.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company periodically provides customer incentive programs including product discounts and volume-based rebates, which are accounted for as reductions to revenue in the period in which the revenue is recognized. These reductions to revenue are made based upon reasonable and reliable estimates that are determined by historical experience and the specific terms and conditions of the incentive.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Deferred revenue includes amounts received from customers for which revenue has not yet been recognized.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In cases where the Company&#8217;s customers trade-in old systems as part of sales of new systems, the fair value of the old systems is recorded as inventory, provided that such value can be determined.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/14.66px 'times new roman', serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Revenues are recorded net of the fair value of the warrants associated with revenues recognized (Refer to note 17). The Company utilizes a Monte Carlo simulation approach to estimate the fair value of the warrants which requires inputs such as common ordinary share, the warrant strike price, estimated ordinary share price volatility and risk-free interest rate, among others. The Company recognized a reduction to revenues of $2,030 during the year ended December 31, 2016.</p> </div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1422.72px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">m.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Shipping and Handling:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Shipping and handling fees charged to the Company&#8217;s customers are recognized as revenue in the period shipped and the related costs for providing these services are recorded as a cost of revenues. Revenues from shipping in the years ended December 31, 2014, 2015 and 2016 were $931, $719 and $768, respectively.</font></p></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1422.72px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">n.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Cost of revenues:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Cost of revenues is comprised mainly of cost of systems and ink production, employees&#8217; salaries and related costs, allocated overhead expenses, import taxes and royalties.</font></p></div> <div> <table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">o.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Warranty costs:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/14.66px 'times new roman', serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Company typically provides a one-year warranty on the systems including parts and labor. A provision is recorded for estimated warranty costs at the time revenues are recognized based on historical warranty costs and management&#8217;s estimates. Factors that affect the Company&#8217;s warranty liability include the number of systems, historical rates of warranty claims and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts thereof as necessary.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The followings are the changes in the liability for product warranty from January 1, 2015 to December 31, 2016:</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1.05in; background-color: white;">&#160;</td> <td style="text-align: justify;">Balance at January 1, 2015</td> <td style="width: 12px;">&#160;</td> <td style="width: 12px; text-align: left;">$</td> <td style="width: 112px; text-align: right;">684</td> <td style="width: 12px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">Provision for warranties issued during the year</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1,700</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 4pt;">Reduction for payments and costs to satisfy claims</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(1,444</td> <td style="text-align: left; padding-bottom: 4pt;">)</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">Balance at December 31, 2015</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">940</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">Provision for warranties issued during the year</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,984</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 1.5pt;">Reduction for payments and costs to satisfy claims</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(1,905</td> <td style="text-align: left; padding-bottom: 1.5pt;">)</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 4pt;">Balance at December 31, 2016</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">2,019</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> </div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-size-adjust: none; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-size-adjust: none; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">p.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Research and development expenses:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Research and development expenses are charged to the statement of income, as incurred.</font></p></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-size-adjust: none; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-size-adjust: none; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">q.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Accounting for share-based compensation:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><p style="font: 10pt/14.66px 'times new roman', serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The Company accounts for share based compensation in accordance with, "Compensation - Stock Compensation" (&#8220;ASC No. 718&#8221;) that requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company's consolidated statement of income. ASC No. 718 requires forfeitures to be estimated at the time of the grant and revised in subsequent periods if actual forfeitures differ from those estimates.</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company selected the binomial option pricing model as the most appropriate fair value method for its share-based compensation awards with the following assumptions for the years ended December 31, 2014, 2015 and 2016:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="5"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-size-adjust: none; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Year ended</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>December 31,</b></font></p></td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2014</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2015</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2016</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: center;">&#160;</td><td>&#160;</td><td style="text-align: right;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1.05in; background-color: white;">&#160;</td><td style="text-align: justify;">Suboptimal exercise multiple</td><td style="width: 15px;">&#160;</td><td style="width: 141px; text-align: center;">2.0-10.0</td><td style="width: 15px;">&#160;</td><td style="width: 141px; text-align: center;">2.0-2.5</td><td style="width: 15px;">&#160;</td><td style="width: 141px; text-align: center;">1.0-1.5</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Risk free interest rate</td><td>&#160;</td><td style="text-align: center;">0.1%-2.5%</td><td>&#160;</td><td style="text-align: center;">0.2%-2.2%</td><td>&#160;</td><td style="text-align: center;">0.3%-2.2%</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Volatility</td><td>&#160;</td><td style="text-align: center;">50%-55%</td><td>&#160;</td><td style="text-align: center;">50%-55%</td><td>&#160;</td><td style="text-align: center;">54%-56%</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Dividend yield</td><td>&#160;</td><td style="text-align: center;">0%</td><td>&#160;</td><td style="text-align: center;">0%</td><td>&#160;</td><td style="text-align: center;">0%</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: right; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>&#160;</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The expected volatility is based on volatility of similar companies whose share prices are publicly available over an historical period equivalent to the option&#8217;s expected term. The computation of the suboptimal exercise multiple based on empirical studies, the early exercise factor of public companies is approximately 100% for employees and 150% for managers. The early exercise factor of grantees in private companies is expected to be higher due to the lack of marketability that leads to longer exercise period of the options.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The interest rate for period within the contractual life of the award is based on the U.S. Treasury Bills yield curve in effect at the time of grant. The Company currently has no plans to distribute dividends and intends to retain future earnings to finance the development of its business.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company recognizes compensation expenses for the value of its awards, which have graded vesting based on service conditions, using the straight line method, over the requisite service period of each of the awards, net of estimated forfeitures. Estimated forfeitures are based on actual historical pre-vesting forfeitures.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The following table sets forth the total share based compensation expense included in the consolidated statements of income for the years ended December 31, 2014, 2015 and 2016:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-size-adjust: none; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Year ended</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>December 31,</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2014</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: justify;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: center;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1.05in; background-color: white;">&#160;</td><td style="text-align: justify;">Cost of revenues</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">96</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">306</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">482</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Research and development</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">86</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">281</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">217</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Sales and marketing</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">207</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">537</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">654</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 1.5pt;">General and administrative</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">508</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,259</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,641</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 4pt;">Total share-based compensation expense</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">897</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">2,383</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">2,994</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table></div> <div> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">r.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Derivatives and hedging:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company accounts for derivatives and hedging based on ASC No. 815, &#8220;Derivatives and Hedging&#8221; (&#8220;ASC No. 815&#8221;). ASC No. 815 requires the Company to recognize all derivatives on the balance sheet at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><br /></font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">According to ASC No. 815, for derivative instruments that are designated and qualify as hedging instruments, the Company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. If the derivatives meet the definition of a hedge and are so designated, depending on the nature of the hedge, changes in the fair value of such derivatives will either be offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings, or recognized in accumulated other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative&#8217;s change in fair value is recognized in earnings.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/14.66px 'times new roman', serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">Starting 2015, the Company entered into forward and option contracts to hedge against the risk of overall changes in future cash flow from payments of payroll and related expenses denominated in New Israeli Shekels (&#8220;NIS&#8221;). As of December 31, 2015 and 2016, the fair value of the Company&#8217;s outstanding forward and option contracts amounted to $30 and $3 which is included within other accounts receivable and prepaid expenses and payables and accrued expenses, respectively on the balance sheets.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company measured the fair value of these contracts in accordance with ASC No. 820, &#8220;Fair Value Measurements and Disclosures&#8221; (&#8220;ASC No. 820&#8221;), and they were classified as level 2 of the fair value hierarchy.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">As of December 31, 2015 and December 31, 2016, the notional principal amount of the Hedging Contracts to sell U.S. dollars held by the Company was $ 8,453 and $8,636, respectively.</font></p> </div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1422.72px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">s.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Advertising:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Advertising costs are charged to operations as incurred and were $437, $283 and $526 for the years ended December 31, 2014, 2015 and 2016, respectively.</font></p></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-size-adjust: none; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-size-adjust: none; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">t.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Income taxes:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company accounts for income taxes and uncertain tax positions in accordance with ASC No. 740, &#8220;Income Taxes&#8221; (&#8220;ASC No. 740&#8221;). ASC No. 740 prescribes the use of the liability method, whereby deferred tax asset and liability account balances are determined based on temporary differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to amounts more likely than not to be realized.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-size-adjust: none; font-stretch: normal;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">ASC No. 740 contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company accrues interest and penalties related to unrecognized tax benefits on its taxes on income.</font></p></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-size-adjust: none; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-size-adjust: none; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">u.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Concentrations of credit risks:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Financial instruments that potentially subject the Company and its subsidiaries to concentrations of credit risk consist principally of cash and cash equivalents, bank deposits, marketable securities, foreign exchange contracts and trade receivables.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The majority of the Company&#8217;s and its subsidiaries&#8217; cash and cash equivalents, bank deposits and marketable securities are invested in major banks in Israel and the U.S. Generally, these cash equivalents may be redeemed upon demand and, therefore management believes that it bears a lower risk.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company attempts to limit its exposure to interest rate risk by investing in securities with maturities of less than three years; however, the Company may be unable to successfully limit its risk to interest rate fluctuations. At any time, a sharp rise in interest rates could have a material adverse impact on the fair value of its investment portfolio. Conversely, declines in interest rates could have a material favorable impact on the fair value of its investment portfolio. Increases or decreases in interest rates could have a material impact on interest earnings related to new investments during the period.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><p style="font: 10pt/14.66px 'times new roman', serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The trade receivables of the Company and its subsidiaries are mainly derived from sales to customers located in the United States, Europe, the Middle East, Africa and Asia Pacific. The Company performs ongoing credit evaluations of its customers. In certain circumstances, the Company may require from its customers letters of credit, other collateral or additional guarantees. An allowance for doubtful accounts is determined with respect to those amounts that the Company has determined to be doubtful of collection. Allowance for doubtful accounts as of December 31, 2015 and 2016 were $0. Bad debt expenses for the years ended December 31, 2014, 2015 and 2016, were $0, $21 and $216 respectively.</font></p></div> <div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">v.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Severance pay:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The majority of the Company&#8217;s employees in Israel have subscribed to Section 14 of Israel&#8217;s Severance Pay Law, 5723-1963 (&#8220;Section 14&#8221;). Pursuant to Section 14, the Company&#8217;s employees, covered by this section, are entitled only to monthly deposits, at a rate of 8.33% of their monthly salary, made on their behalf by the Company. Payments in accordance with Section 14 release the Company from any future the severance liabilities in respect of those employees.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Neither severance pay liability nor severance pay fund under Section 14 for such employees is recorded on the Company&#8217;s balance sheet.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">With regards to employees in Israel that are not subject to Section 14, the Company&#8217;s liability for severance pay is calculated pursuant to the Severance Pay Law, based on the most recent salary of the relevant employees multiplied by the number of years of employment as of the balance sheet date. These employees are entitled to one month salary for each year of employment or a portion thereof. The Company&#8217;s liability for these employees is fully provided for via monthly deposits with severance pay funds, insurance policies and an accrual. The value of these deposits is recorded as an asset with other assets on the Company&#8217;s balance sheet.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The deposited funds include profits accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to the Severance Pay Law or labor agreements.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', serif;">Severance pay expenses for the years ended December 31, 2014, 2015 and 2016 were $1,015, $1,354 and $1,590 respectively.</font></p></div> <div> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">w.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Fair value of financial instruments:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/14.66px 'times new roman', serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">The Company applies ASC No 820. Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the &#8220;exit price&#8221;) in an orderly transaction between market participants at the measurement date.</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In determining fair value, the Company uses various valuation approaches. ASC No 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company&#8217;s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The hierarchy is broken down into three levels based on the inputs as follows:</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 1.05in;">&#160;</td> <td style="width: 0.6in; text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Level&#160;1&#160;-</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Valuations based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date.</font></td> </tr> <tr style="vertical-align: top;"> <td>&#160;</td> <td style="text-align: justify;">&#160;</td> <td style="text-align: justify;">&#160;</td> </tr> <tr style="vertical-align: top;"> <td>&#160;</td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Level&#160;2&#160;-</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.</font></td> </tr> <tr style="vertical-align: top;"> <td>&#160;</td> <td style="text-align: justify;">&#160;</td> <td style="text-align: justify;">&#160;</td> </tr> <tr style="vertical-align: top;"> <td>&#160;</td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Level&#160;3&#160;-</font></td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Valuations based on inputs that are unobservable and significant to the overall fair value measurement.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -56.7pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The carrying amount of cash, cash equivalents, short term bank deposits, trade receivables, other accounts receivable, trade payables and other accounts payable and accrued expenses approximates approximate their fair value due to the short-term maturities of such instruments.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company measures its marketable securities and foreign currency derivative instruments at fair value. Marketable securities and foreign currency derivative instruments are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The contingent payment related to the SPSI acquisition is classified within Level 3 as it is based on significant inputs not observable in the market.</font></p> </div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1422.72px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">x.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Comprehensive income:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company accounts for comprehensive income in accordance with FASB ASC No. 220, &#8220;Comprehensive Income.&#8221; Comprehensive income generally represents all changes in shareholders&#8217; equity during the period except those resulting from investments by, or distributions to, shareholders. The Company determined that its items of other comprehensive income relate to gains and losses on hedging derivative instruments, unrealized gains and losses on available-for-sale securities and unrealized gain and losses from foreign currency translation adjustments.</font></p></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-size-adjust: none; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-size-adjust: none; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">y.</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Basic and diluted net income per share:</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Basic net income per share is computed based on the weighted average number of ordinary shares outstanding during each period. Diluted net income per share is computed based on the weighted average number of ordinary shares outstanding during each period, plus dilutive potential ordinary shares considered outstanding during the period, in accordance with ASC No. 260, &#8220;Earnings Per Share&#8221;.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>&#160;</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">For the year ended December 31, 2014, all outstanding options have been included at the calculation of the diluted earnings per share since their effect was dilutive. The total number of shares related to the outstanding options excluded from the calculation of diluted net earnings per share due to their anti-dilutive effect was 762,152 and 1,498,503 for the years ended December 31, 2015 and 2016, respectively.</font></p></div> <div> <table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"></font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">z.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Impact of recently issued accounting standard not yet adopted:</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 1.05in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In May 2014, the FASB issued an ASU that provides a comprehensive model for recognizing revenue with customers. This update clarifies and replaces all existing revenue recognition guidance within U.S. GAAP and may be adopted retrospectively for all periods presented or adopted using a modified retrospective approach. This update is effective for annual and interim periods beginning after December 15, 2016. In July 2015, FASB deferred the effective date by one year to December 15, 2017 (beginning with the Company&#8217;s first quarter in 2018) and permitting early adoption of the standard, but not before the original effective date of December 15, 2016. The Company will adopt the new standard in the first quarter of 2018 and expects to apply the modified retrospective approach.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.4in; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company is in the initial stages of its evaluation of the impact of the new standard on its accounting policies, processes, and system requirements. The Company has assigned internal resources in addition to the engagement of a third party service provider to assist in the evaluation. Implementation efforts, to date, have included training on the new standard and preparing initial gap assessments on the Company&#8217;s significant revenue streams.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.4in; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.4in; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">While the Company continues to assess the potential impacts of the new standard, including the areas described above, it does not know or cannot reasonably estimate quantitative information related to the impact of the new standard on its financial statements at this time.</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.4in; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.4in; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 1.05in;"></td> <td style="width: 0.35in;">2.</td> <td style="text-align: justify;">In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory (Topic 330), which simplifies its current requirement that an entity measure inventory at lower of cost or market, when market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. Inventory within the scope of ASU 2015-11 should be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This amendment should be applied prospectively and is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early application is permitted as of the beginning of an interim or annual reporting period. The adoption of ASU 2015-11 is not expected to have a material effect on the Company's consolidated financial statements.</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.4in; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 1.05in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">3.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In February 2016, FASB issued Accounting Standard Update (&#8220;ASU&#8221;) No. 2016-02, &#8220;Leases&#8221;. The updated standard aims to increase transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. This update is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods; early adoption is permitted and modified retrospective application is required. The Company is in the process of evaluating this guidance to determine the impact it will have on its consolidated financial statements.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 1.05in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">4.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In March 2016, the FASB issued ASU No. 2016-09, &#8220;Improvements to Employee Share-Based Payment Accounting.&#8221; This ASU affects entities that issue share-based payment awards to their employees. The ASU is designed to simplify several aspects of accounting for share-based payment award transactions, which include the income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows and forfeiture rate calculations. The Company will adopt this ASU on its effective date of January 1, 2017. The Company&#8217;s adoption of ASU 2016-09 will not have a material impact on its consolidated financial statements.</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 1.05in;"></td> <td style="width: 0.35in;">5.</td> <td style="text-align: justify;">The FASB issued ASU 2016-13 "Measurement of Credit Losses on Financial Instruments" requiring an allowance to be recorded for all expected credit losses for financial assets. The allowance for credit losses is based on historical information, current conditions and reasonable and supportable forecasts. The new standard also makes revisions to the other than temporary impairment model for available-for-sale debt securities. Disclosures of credit quality indicators in relation to the amortized cost of financing receivables are further disaggregated by year of origination. The new accounting guidance is effective for interim and annual periods beginning after December 15, 2019 with early adoption permitted for interim and annual periods beginning after December 15, 2018. The amendments will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is analyzing the impact of this new standard and, at this time, cannot estimate the impact of adoption on its net income. The Company plans to adopt ASU 2016-13 effective January 1, 2020.</td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">&#160;</font></p> <table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"> <td style="font: 10pt/normal 'times new roman', times, serif; width: 1.05in; font-stretch: normal;"></td> <td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">6.</font></td> <td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In January 2017, the FASB issued ASU No. 2017-04, &#8220;Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.&#8221; This ASU eliminates the requirement to measure the implied fair value of goodwill by assigning the fair value of a reporting unit to all assets and liabilities within that unit (the &#8220;Step 2 test&#8221;) from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited by the amount of goodwill in that reporting unit. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the qualitative impairment test is necessary. This new standard should be applied on a prospective basis and the nature of and reason for the change in accounting principle should be disclosed upon transition. The amendments in this update should be adopted for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted on testing dates after January 1, 2017. The Company is currently evaluating the impact of adopting the new guidance on the consolidated financial statements and the timing of adoption.</font></td> </tr> </table> </div> <div><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1422.72px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">%</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: center;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Office furniture and equipment</td><td>&#160;</td><td style="text-align: center;">&#160;</td><td style="text-align: center;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">7 - 20</font></td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="width: 1.05in; background-color: white;">&#160;</td><td style="text-align: justify;">Computer and peripheral equipment</td><td style="width: 13.63px;">&#160;</td><td style="width: 13.63px; text-align: center;">&#160;</td><td style="width: 127.27px; text-align: center;">33</td><td style="width: 13.63px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Machinery and equipment</td><td>&#160;</td><td style="text-align: center;">&#160;</td><td style="text-align: center;">15</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Leasehold improvements</td><td>&#160;</td><td style="text-align: center;">&#160;</td><td style="text-align: center;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">*)</font></td><td style="text-align: left;">&#160;</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1422.72px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 1.05in; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">*)</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term (including the extension option held by the Company and intended to be exercised) and the expected life of the improvement.</font></td></tr></table></div> <div><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1422.72px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1.05in; background-color: white;">&#160;</td><td style="text-align: justify;">Balance at January 1, 2015</td><td style="width: 13.63px;">&#160;</td><td style="width: 13.63px; text-align: left;">$</td><td style="width: 127.27px; text-align: right;">684</td><td style="width: 13.63px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Provision for warranties issued during the year</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,700</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 4pt;">Reduction for payments and costs to satisfy claims</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(1,444</td><td style="text-align: left; padding-bottom: 4pt;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Balance at December 31, 2015</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">940</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Provision for warranties issued during the year</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2,984</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 1.5pt;">Reduction for payments and costs to satisfy claims</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(1,905</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 4pt;">Balance at December 31, 2016</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">2,019</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table></div> <div><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1422.72px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="5"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Year ended</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>December 31,</b></font></p></td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2014</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2015</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2016</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: center;">&#160;</td><td>&#160;</td><td style="text-align: right;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1.05in; background-color: white;">&#160;</td><td style="text-align: justify;">Suboptimal exercise multiple</td><td style="width: 13.63px;">&#160;</td><td style="width: 127.27px; text-align: center;">2.0-10.0</td><td style="width: 13.63px;">&#160;</td><td style="width: 127.27px; text-align: center;">2.0-2.5</td><td style="width: 13.63px;">&#160;</td><td style="width: 127.27px; text-align: center;">1.0-1.5</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Risk free interest rate</td><td>&#160;</td><td style="text-align: center;">0.1%-2.5%</td><td>&#160;</td><td style="text-align: center;">0.2%-2.2%</td><td>&#160;</td><td style="text-align: center;">0.3%-2.2%</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Volatility</td><td>&#160;</td><td style="text-align: center;">50%-55%</td><td>&#160;</td><td style="text-align: center;">50%-55%</td><td>&#160;</td><td style="text-align: center;">54%-56%</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Dividend yield</td><td>&#160;</td><td style="text-align: center;">0%</td><td>&#160;</td><td style="text-align: center;">0%</td><td>&#160;</td><td style="text-align: center;">0%</td></tr></table></div> <div><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1422.72px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Year ended</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>December 31,</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2014</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: justify;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: center;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1.05in; background-color: white;">&#160;</td><td style="text-align: justify;">Cost of revenues</td><td style="width: 13.63px;">&#160;</td><td style="width: 13.63px; text-align: left;">$</td><td style="width: 127.27px; text-align: right;">96</td><td style="width: 13.63px; text-align: left;">&#160;</td><td style="width: 13.63px;">&#160;</td><td style="width: 13.63px; text-align: left;">$</td><td style="width: 127.27px; text-align: right;">306</td><td style="width: 13.63px; text-align: left;">&#160;</td><td style="width: 13.63px;">&#160;</td><td style="width: 13.63px; text-align: left;">$</td><td style="width: 127.27px; text-align: right;">482</td><td style="width: 13.63px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Research and development</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">86</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">281</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">217</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Sales and marketing</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">207</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">537</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">654</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 1.5pt;">General and administrative</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">508</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,259</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,641</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 4pt;">Total share-based compensation expense</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">897</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">2,383</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">2,994</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table></div> <table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;"></td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Fair Value</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">Amortization period (years)</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;"><u>Tangible Assets</u></td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: center;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1.05in; background-color: white;">&#160;</td><td style="text-align: left; text-decoration: none;">Inventory</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">3,472</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 141px; text-align: center;"></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: center;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-decoration: underline;">Intangible Assets:</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: center;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">Customer Relationships (*)</td><td>&#160;</td><td style="text-align: left;">$</td><td style="text-align: right;">2,614</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: center;">5.0</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">Non-competition agreement (**)</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">265</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: center;">4.0</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; padding-bottom: 1.5pt;">Goodwill</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">5,092</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; padding-bottom: 1.5pt;">Infinite</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; padding-bottom: 4pt;">Total purchase price</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">11,443</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-size-adjust: none; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 1.05in; font-size-adjust: none; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(*)</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Customer relationships represent the underlying relationships and agreements with SPSI&#8217;s installed customer base and are amortized over the useful life of the agreements using accelerated method.</font></td></tr><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-size-adjust: none; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; font-size-adjust: none; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(**)</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Non-competition agreement is amortized over the useful life of the agreement using straight-line method.</font></td></tr></table> <p style="text-align: justify; font: 10pt times new roman, times, serif; margin: 0px 0px 0px 0.7in; text-indent: 0px;"><font style="font-size: 10pt; font-family: times new roman, times, serif;">&#160;</font></p><table align="center" style="font: 10pt/normal times new roman, times, serif; width: 100%; border-collapse: collapse; font-size-adjust: none; font-stretch: normal;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; font-weight: bold; text-align: center;" colspan="14">December 31, 2016</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: center;" colspan="2"><p style="text-align: center; font: 10pt times new roman, times, serif; margin: 0px; background-color: white;"><font style="font-size: 10pt; font-family: times new roman, times, serif;"><b>Amortized</b></font></p><p style="text-align: center; font: 10pt times new roman, times, serif; margin: 0px; background-color: white;"><font style="font-size: 10pt; font-family: times new roman, times, serif;"><b>cost</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: center;" colspan="2"><p style="text-align: center; font: 10pt times new roman, times, serif; margin: 0px; background-color: white;"><font style="font-size: 10pt; font-family: times new roman, times, serif;"><b>Gross unrealized</b></font></p><p style="text-align: center; font: 10pt times new roman, times, serif; margin: 0px; background-color: white;"><font style="font-size: 10pt; font-family: times new roman, times, serif;"><b>gain</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; font-weight: bold; text-align: center;" colspan="2">Gross unrealized loss</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; font-weight: bold; text-align: center;" colspan="2">Fair value</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="font-weight: normal; text-align: left;">Matures within one year:</td><td>&#160;</td><td style="text-align: left;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: left;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.7in; background-color: white;">&#160;</td><td style="font-weight: normal; text-align: left;">Corporate debentures</td><td style="width: 1%;">&#160;</td><td style="width: 1%; text-align: left;">$</td><td style="width: 9%; text-align: right;">16,530</td><td style="width: 1%; text-align: left;">&#160;</td><td style="width: 1%;">&#160;</td><td style="width: 1%; text-align: left;">$</td><td style="width: 9%; text-align: right;">&#160;&#160;&#160;&#160;&#160;&#160;2</td><td style="width: 1%; text-align: left;">&#160;</td><td style="width: 1%;">&#160;</td><td style="width: 1%; text-align: left;">$</td><td style="width: 9%; text-align: right;">(28</td><td style="width: 1%; text-align: left;">)</td><td style="width: 1%;">&#160;</td><td style="width: 1%; text-align: left;">$</td><td style="width: 9%; text-align: right;">16,504</td><td style="width: 1%; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td style="font-weight: bold;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td style="font-weight: bold; text-align: right;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td style="font-weight: bold;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td style="font-weight: bold; text-align: right;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="font-weight: normal; text-align: left;">Matures after one year through three years:</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td style="font-weight: bold;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td style="font-weight: bold; text-align: right;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td style="font-weight: bold;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td style="font-weight: bold; text-align: right;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="font-weight: normal; padding-bottom: 1.5pt; text-align: left;">Corporate debentures</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: left;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: right;">21,794</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: left;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: right;">5</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: left;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: right;">(79</td><td style="padding-bottom: 1.5pt; text-align: left;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: left;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: right;">21,720</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="font-weight: normal; padding-bottom: 4pt; text-align: left;">Total</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: black 4pt double; text-align: left;">$</td><td style="border-bottom: black 4pt double; text-align: right;">38,324</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: black 4pt double; text-align: left;">$</td><td style="border-bottom: black 4pt double; text-align: right;">7</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: black 4pt double; text-align: left;">$</td><td style="border-bottom: black 4pt double; text-align: right;">(107</td><td style="padding-bottom: 4pt; text-align: left;">)</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: black 4pt double; text-align: left;">$</td><td style="border-bottom: black 4pt double; text-align: right;">38,224</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td></tr></table><p style="text-align: justify; font: 10pt times new roman, times, serif; margin: 0px; background-color: white;"><font style="font-size: 10pt; font-family: times new roman, times, serif;">&#160;</font></p><p style="text-align: justify; font: 10pt times new roman, times, serif; margin: 0px; background-color: white;"><font style="font-size: 10pt; font-family: times new roman, times, serif;">&#160;</font></p><table align="center" style="font: 10pt/normal times new roman, times, serif; width: 100%; border-collapse: collapse; font-size-adjust: none; font-stretch: normal;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; font-weight: bold; text-align: center;" colspan="14">December 31, 2015</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: center;" colspan="2"><p style="text-align: center; font: 10pt times new roman, times, serif; margin: 0px; background-color: white;"><font style="font-size: 10pt; font-family: times new roman, times, serif;"><b>Amortized</b></font></p><p style="text-align: center; font: 10pt times new roman, times, serif; margin: 0px; background-color: white;"><font style="font-size: 10pt; font-family: times new roman, times, serif;"><b>cost</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: center;" colspan="2"><p style="text-align: center; font: 10pt times new roman, times, serif; margin: 0px; background-color: white;"><font style="font-size: 10pt; font-family: times new roman, times, serif;"><b>Gross unrealized</b></font></p><p style="text-align: center; font: 10pt times new roman, times, serif; margin: 0px; background-color: white;"><font style="font-size: 10pt; font-family: times new roman, times, serif;"><b>gain</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; font-weight: bold; text-align: center;" colspan="2">Gross unrealized loss</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; font-weight: bold; text-align: center;" colspan="2">Fair value</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="font-weight: normal; text-align: left;">Matures within one year:</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.7in; background-color: white;">&#160;</td><td style="font-weight: normal; text-align: left;">Corporate debentures</td><td style="width: 1%;">&#160;</td><td style="width: 1%; text-align: left;">$</td><td style="width: 9%; text-align: right;">4,533</td><td style="width: 1%; text-align: left;">&#160;</td><td style="width: 1%;">&#160;</td><td style="width: 1%; text-align: left;">$</td><td style="width: 9%; text-align: right;">&#160;&#160;&#160;&#160;&#160;-</td><td style="width: 1%; text-align: left;">&#160;</td><td style="width: 1%;">&#160;</td><td style="width: 1%; text-align: left;">$</td><td style="width: 9%; text-align: right;">(6</td><td style="width: 1%; text-align: left;">)</td><td style="width: 1%;">&#160;</td><td style="width: 1%; text-align: left;">$</td><td style="width: 9%; text-align: right;">4,527</td><td style="width: 1%; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="font-weight: normal; text-align: left;">Matures after one year through three years:</td><td style="font-weight: bold;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td style="font-weight: bold; text-align: right;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td style="font-weight: bold;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td style="font-weight: bold; text-align: right;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td style="font-weight: bold;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td style="font-weight: bold; text-align: right;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td style="font-weight: bold;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td style="font-weight: bold; text-align: right;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="font-weight: normal; padding-bottom: 1.5pt; text-align: left;">Corporate debentures</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: left;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: right;">29,373</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: left;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: right;">1</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: left;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: right;">(222</td><td style="padding-bottom: 1.5pt; text-align: left;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: left;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: right;">29,152</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="font-weight: bold; text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="font-weight: normal; padding-bottom: 4pt; text-align: left;">Total</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: black 4pt double; text-align: left;">$</td><td style="border-bottom: black 4pt double; text-align: right;">33,906</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: black 4pt double; text-align: left;">$</td><td style="border-bottom: black 4pt double; text-align: right;">1</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: black 4pt double; text-align: left;">$</td><td style="border-bottom: black 4pt double; text-align: right;">(228</td><td style="padding-bottom: 4pt; text-align: left;">)</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: black 4pt double; text-align: left;">$</td><td style="border-bottom: black 4pt double; text-align: right;">33,679</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td></tr></table> <div><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14">December 31, 2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 1</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 2</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 3</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left; font-weight: normal;"><u>Assets:</u></td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.7in; background-color: white;">&#160;</td><td style="text-align: left; font-weight: normal;">Available-for-sale marketable securities</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">-</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">38,224</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">-</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">38,224</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; padding-bottom: 1.5pt; font-weight: normal;">Foreign currency derivative contracts</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">3</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">3</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; font-weight: bold;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; padding-bottom: 4pt; font-weight: normal;">Total financial assets</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">38,227</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">38,227</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; font-weight: normal;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; font-weight: normal; text-decoration: underline;">Liabilities:</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; padding-bottom: 1.5pt; font-weight: normal;">Payment obligation related to acquisition</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,070</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,070</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; font-weight: bold;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; padding-bottom: 4pt; font-weight: normal;">Total liabilities</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,070</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,070</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: right; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14">December 31, 2015</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 1</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 2</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 3</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left; font-weight: bold;">&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left; font-weight: normal;"><u>Assets:</u></td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.7in; background-color: white;">&#160;</td><td style="text-align: left; padding-bottom: 1.5pt; font-weight: normal;">Available-for-sale marketable securities</td><td style="width: 15px; padding-bottom: 1.5pt;">&#160;</td><td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="width: 141px; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="width: 15px; text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="width: 15px; padding-bottom: 1.5pt;">&#160;</td><td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="width: 141px; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">33,679</td><td style="width: 15px; text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="width: 15px; padding-bottom: 1.5pt;">&#160;</td><td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="width: 141px; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="width: 15px; text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="width: 15px; padding-bottom: 1.5pt;">&#160;</td><td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="width: 141px; text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">33,679</td><td style="width: 15px; text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; font-weight: bold;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; padding-bottom: 4pt; font-weight: normal;">Total financial assets</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">33,679</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">33,679</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; font-weight: normal;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; font-weight: normal; text-decoration: underline;">Liabilities:</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; padding-bottom: 1.5pt; font-weight: normal;">Foreign currency derivative contracts</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">30</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">30</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; font-weight: bold;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; padding-bottom: 4pt; font-weight: normal;">Total liabilities</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">30</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">30</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Total fair value as of January 1, 2016</td><td>&#160;</td><td style="text-align: left;">$</td><td style="text-align: right;">-</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="width: 0.7in; background-color: white;">&#160;</td><td style="text-align: justify;">Payment obligation related to acquisition</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">2,237</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Settlement of payment obligation *)</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(1,400</td><td style="text-align: left;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 1.5pt;">Accretion of payment obligation</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">233</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 4pt;">Total fair value as of December 31, 2016</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,070</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-size-adjust: none; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-size-adjust: none; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">*)</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$1,400 is included within other payables and accrued expenses on the balance sheet as the set milestone was met as of December 31, 2016.</font></td></tr></table></div> <div><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: center;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.7in; background-color: white;">&#160;</td><td style="text-align: justify;">Raw materials and components</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">$</td><td style="width: 112px; text-align: right;">8,724</td><td style="width: 12px; text-align: left;">&#160;</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">$</td><td style="width: 112px; text-align: right;">12,322</td><td style="width: 12px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 1.5pt;">Finished products (*)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">7,079</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">11,800</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">15,803</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">24,122</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(*)</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Includes amounts of $ 145 and $ 705 for the years ended December 31, 2015 and 2016, respectively, with respect to inventory delivered to customers but for which revenue criteria have not yet been met.</font></td></tr></table></div> <div><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Cost:</td><td>&#160;</td><td style="text-align: center;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.7in; background-color: white;">&#160;</td><td style="text-align: justify;">Computer and peripheral equipment</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">$</td><td style="width: 112px; text-align: right;">1,421</td><td style="width: 12px; text-align: left;">&#160;</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">$</td><td style="width: 112px; text-align: right;">1,935</td><td style="width: 12px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Office furniture and equipment</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">842</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,332</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Machinery and equipment</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">5,996</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">8,962</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 1.5pt;">Leasehold improvements</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2,311</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">4,978</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">10,570</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">17,207</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 1.5pt;">Accumulated depreciation</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(5,792</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(7,960</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 4pt;">Property and equipment, net</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">4,778</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">9,247</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table></div> <div><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; text-indent: 2pt; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Weighted average</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; text-indent: 2pt; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>amortization</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>period</b></font></p></td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">Years</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: right;">&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">Original amount:</td><td>&#160;</td><td style="text-align: center;">&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1.05in; background-color: white;">&#160;</td><td style="text-align: left;">Acquired technology</td><td style="width: 12px;">&#160;</td><td style="width: 112px; text-align: center;">8.14</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">$</td><td style="width: 112px; text-align: right;">1,566</td><td style="width: 12px; text-align: left;">&#160;</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">$</td><td style="width: 112px; text-align: right;">1,566</td><td style="width: 12px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">Customer relationships</td><td>&#160;</td><td style="text-align: center;">5</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">-</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2,614</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; padding-bottom: 1.5pt;">Non-competition agreement</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; padding-bottom: 1.5pt;">4</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">265</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,566</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">4,445</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">Accumulated amortization:</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">Acquired technology</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">543</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">766</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">Customer relationships</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">-</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">261</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; padding-bottom: 1.5pt;">Non-competition agreement</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">33</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">543</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,060</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; padding-bottom: 4pt;">Intangible assets, net</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,023</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">3,385</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table></div> <div> <table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="text-align: justify; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">December 31,</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: right;" colspan="3">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="3">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1.05in; background-color: white;">&#160;</td> <td style="text-align: justify;">2017</td> <td style="width: 12px;">&#160;</td> <td style="width: 12px; text-align: left;">$</td> <td style="width: 112px; text-align: right;">689</td> <td style="width: 12px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>&#160;</td> <td style="text-align: justify;">2018</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">689</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1.05in; background-color: white;">&#160;</td> <td style="text-align: justify;">2019</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">689</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>&#160;</td> <td style="text-align: justify;">2020</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">656</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1.05in; background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 1.5pt;">Thereafter</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">662</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td>&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 1.05in; background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">3,385</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> </div> <table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: center;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.7in; background-color: white;">&#160;</td><td style="text-align: justify;">Government authorities</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">344</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">993</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Warranty provision</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">940</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,741</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Professional services</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">248</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">693</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Payment obligation related to acquisition</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">-</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,400</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 1.5pt;">Accrued expenses</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,098</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,276</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">2,630</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">6,103</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table> <div><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">December 31,</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1.05in; background-color: white;">&#160;</td><td style="text-align: justify;">2017</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">$</td><td style="width: 112px; text-align: right;">2,528</td><td style="width: 12px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">2018</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2,165</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">2019</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,933</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">2020</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1,820</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 1.5pt;">2021 and thereafter</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">339</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">8,785</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Number</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>of shares upon exercise</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Weighted average exercise price</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Weighted- average remaining contractual term</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(in years)</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Aggregate intrinsic</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>value</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1.05in; background-color: white;">&#160;</td><td style="text-align: left;">Outstanding at beginning of year</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 141px; text-align: right;">2,769,004</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">4.74</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">7.19</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">18,580</td><td style="width: 15px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">Granted</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">831,200</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">10.11</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">9.57</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2,103</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">Exercised</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(693,923</td><td style="text-align: left;">)</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1.38</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">3.65</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">7,821</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; padding-bottom: 1.5pt;">Forfeited</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(173,115</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">8.03</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">7.59</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; padding-bottom: 4pt;">Outstanding at end of year</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">2,733,166</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">7.01</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">7.78</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">16,054</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; padding-bottom: 4pt;">Exercisable at end of year</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,009,118</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">4.16</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">6.20</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">8,775</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; padding-bottom: 4pt;">Vested and expected to vest</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">2,252,262</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">6.33</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">7.50</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">14,750</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td>&#160;</td><td style="text-align: center;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-size-adjust: none; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Options outstanding</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; text-indent: -28.35pt; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>at December 31, 2015</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10"><p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-size-adjust: none; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Options exercisable</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>at December 31, 2016</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td>&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">Exercise price</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Number outstanding</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Weighted average exercise price</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Weighted average remaining contractual life</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Number outstanding</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Weighted average exercise price</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Weighted average remaining contractual life</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td>&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center;" colspan="2">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">$</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">In years</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center;" colspan="2">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">$</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">In years</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td>&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: justify;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: justify;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: justify;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: justify;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: justify;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: justify;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1.05in;">&#160;</td><td style="text-align: justify;">0.36-0.92</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">&#160;</td><td style="width: 112px; text-align: right;">202,001</td><td style="width: 12px; text-align: left;">&#160;</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">&#160;</td><td style="width: 112px; text-align: right;">0.60</td><td style="width: 12px; text-align: left;">&#160;</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">&#160;</td><td style="width: 112px; text-align: right;">0.97</td><td style="width: 12px; text-align: left;">&#160;</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">&#160;</td><td style="width: 112px; text-align: right;">202,001</td><td style="width: 12px; text-align: left;">&#160;</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">&#160;</td><td style="width: 112px; text-align: right;">0.60</td><td style="width: 12px; text-align: left;">&#160;</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">&#160;</td><td style="width: 112px; text-align: right;">0.97</td><td style="width: 12px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td>&#160;</td><td style="text-align: justify;">1.14-1.60</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">74,311</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1.48</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">4.97</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">25,982</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">1.26</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2.79</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td>&#160;</td><td style="text-align: justify;">2.07-2.17</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">969,514</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2.14</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">7.47</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">556,620</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">2.14</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">7.46</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td>&#160;</td><td style="text-align: justify;">9.38-9.49</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">145,000</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">9.47</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">9.68</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">7,500</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">9.49</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">9.75</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td>&#160;</td><td style="text-align: justify;">9.97-10.10</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">794,722</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">10.04</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">9.13</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">64,366</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">9.97</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">7.57</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td>&#160;</td><td style="text-align: justify;">11.49-11.90</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">73,005</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">11.83</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">9.74</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">-</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">-</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">-</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td>&#160;</td><td style="text-align: justify; padding-bottom: 1.5pt;">12.97-15.29</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">474,613</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="text-align: right; padding-bottom: 1.5pt;">14.02</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="text-align: right; padding-bottom: 1.5pt;">8.63</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">152,649</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="text-align: right; padding-bottom: 1.5pt;">14.02</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="text-align: right; padding-bottom: 1.5pt;">8.63</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td>&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td>&#160;</td><td style="text-align: justify; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">2,733,166</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="text-align: right; padding-bottom: 4pt;">&#160;</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="text-align: right; padding-bottom: 4pt;">&#160;</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,009,118</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="text-align: right; padding-bottom: 4pt;">&#160;</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="text-align: right; padding-bottom: 4pt;">&#160;</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -28.35pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"></p></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.7in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Year ended</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>December 31,</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2014</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; font-weight: bold;">Numerator for basic and diluted net earnings per share:</td><td>&#160;</td><td style="text-align: justify;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: justify;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.7in; background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 4pt;">Net income</td><td style="width: 15px; padding-bottom: 4pt;">&#160;</td><td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="width: 141px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">3,023</td><td style="width: 15px; text-align: left; padding-bottom: 4pt;">&#160;</td><td style="width: 15px; padding-bottom: 4pt;">&#160;</td><td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="width: 141px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">4,725</td><td style="width: 15px; text-align: left; padding-bottom: 4pt;">&#160;</td><td style="width: 15px; padding-bottom: 4pt;">&#160;</td><td style="width: 15px; text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="width: 141px; text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">828</td><td style="width: 15px; text-align: left; padding-bottom: 4pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; font-weight: bold;">Weighted average shares outstanding, net of treasury stock:</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Denominator for basic net earnings per share</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">8,969,588</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">24,633,369</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">30,562,255</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Effect of dilutive securities:</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 1.5pt;">Employee share options</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,476,741</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,825,215</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,170,277</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 4pt;">Denominator for diluted net earnings per share</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">10,446,329</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">26,458,584</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">31,732,532</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 4pt;">Basic net earnings per share</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">0.34</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">0.19</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">0.03</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 4pt;">Diluted net earnings per share</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">0.29</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">0.18</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">0.03</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.7in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Unrealized</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Gains (losses) on available for-sale marketable securities</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Unrealized</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Gains (losses) on cash flow hedges</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Foreign currency translation adjustment</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">Year ended December 31, 2016:</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.7in; background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">Beginning balance</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">$</td><td style="width: 112px; text-align: right;">(227</td><td style="width: 12px; text-align: left;">)</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">$</td><td style="width: 112px; text-align: right;">(28</td><td style="width: 12px; text-align: left;">)</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">$</td><td style="width: 112px; text-align: right;">(28</td><td style="width: 12px; text-align: left;">)</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">$</td><td style="width: 112px; text-align: right;">(283</td><td style="width: 12px; text-align: left;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">Other comprehensive income before reclassifications</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">133</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">97</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">43</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">273</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-bottom: 1.5pt; padding-left: 10pt;">Amounts reclassified from accumulated other comprehensive income (loss)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(6</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(66</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(72</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-bottom: 1.5pt; padding-left: 10pt;">Net current period other comprehensive income</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">127</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">31</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">43</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">201</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-bottom: 4pt; padding-left: 10pt;">Ending Balance</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(100</td><td style="text-align: left; padding-bottom: 4pt;">)</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">3</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">15</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(82</td><td style="text-align: left; padding-bottom: 4pt;">)</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>&#160;</b></font></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Unrealized</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Gains (losses) on available for-sale marketable securities</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Unrealized</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Gains (losses) on cash flow hedges</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Foreign currency translation adjustment</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">Year ended December 31, 2015:</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.7in; background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">Beginning balance</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">$</td><td style="width: 112px; text-align: right;">-</td><td style="width: 12px; text-align: left;">&#160;</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">$</td><td style="width: 112px; text-align: right;">-</td><td style="width: 12px; text-align: left;">&#160;</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">$</td><td style="width: 112px; text-align: right;">(146</td><td style="width: 12px; text-align: left;">)</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">$</td><td style="width: 112px; text-align: right;">(146</td><td style="width: 12px; text-align: left;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">Other comprehensive income (loss) before reclassifications</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(227</td><td style="text-align: left;">)</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">5</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">118</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(104</td><td style="text-align: left;">)</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-bottom: 1.5pt; padding-left: 10pt;">Amounts reclassified from accumulated other comprehensive income (loss)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(33</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(33</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-bottom: 1.5pt; padding-left: 10pt;">Net current period other comprehensive income (loss)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(227</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(28</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">118</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(137</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-bottom: 4pt; padding-left: 10pt;">Ending Balance</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(227</td><td style="text-align: left; padding-bottom: 4pt;">)</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(28</td><td style="text-align: left; padding-bottom: 4pt;">)</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(28</td><td style="text-align: left; padding-bottom: 4pt;">)</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(283</td><td style="text-align: left; padding-bottom: 4pt;">)</td></tr></table></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td>&#160;</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif; font-weight: bold;">&#160;</td><td style="text-align: center; font-family: 'times new roman', serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">December 31,</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td>&#160;</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif; font-weight: bold;">&#160;</td><td style="text-align: center; font-family: 'times new roman', serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif; font-weight: bold;">&#160;</td><td style="text-align: center; font-family: 'times new roman', serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: center;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1.05in; background-color: white;">&#160;</td><td style="text-align: justify; font-family: 'times new roman', serif;">Carryforward tax losses</td><td style="width: 15px; font-family: 'times new roman', serif;">&#160;</td><td style="width: 15px; text-align: left; font-family: 'times new roman', serif;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', serif;">1,536</td><td style="width: 15px; text-align: left; font-family: 'times new roman', serif;">&#160;</td><td style="width: 15px; font-family: 'times new roman', serif;">&#160;</td><td style="width: 15px; text-align: left; font-family: 'times new roman', serif;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', serif;">2,015</td><td style="width: 15px; text-align: left; font-family: 'times new roman', serif;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 1.5pt; font-family: 'times new roman', serif;">Temporary differences</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif;">&#160;</td><td style="text-align: left; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2,086</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', serif;">&#160;</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif;">&#160;</td><td style="text-align: left; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2,131</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', serif;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; font-family: 'times new roman', serif;">Deferred tax assets</td><td style="font-family: 'times new roman', serif;">&#160;</td><td style="text-align: left; font-family: 'times new roman', serif;">&#160;</td><td style="text-align: right; font-family: 'times new roman', serif;">3,622</td><td style="text-align: left; font-family: 'times new roman', serif;">&#160;</td><td style="font-family: 'times new roman', serif;">&#160;</td><td style="text-align: left; font-family: 'times new roman', serif;">&#160;</td><td style="text-align: right; font-family: 'times new roman', serif;">4,146</td><td style="text-align: left; font-family: 'times new roman', serif;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; font-family: 'times new roman', serif;">Deferred tax liability</td><td style="font-family: 'times new roman', serif;">&#160;</td><td style="text-align: left; font-family: 'times new roman', serif;">&#160;</td><td style="text-align: right; font-family: 'times new roman', serif;">(77</td><td style="text-align: left; font-family: 'times new roman', serif;">)</td><td style="font-family: 'times new roman', serif;">&#160;</td><td style="text-align: left; font-family: 'times new roman', serif;">&#160;</td><td style="text-align: right; font-family: 'times new roman', serif;">(102</td><td style="text-align: left; font-family: 'times new roman', serif;">)</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 1.5pt; font-family: 'times new roman', serif;">Valuation allowance</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif;">&#160;</td><td style="text-align: left; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(3,287</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', serif;">)</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif;">&#160;</td><td style="text-align: left; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(3,605</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', serif;">)</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 4pt; font-family: 'times new roman', serif;">Deferred tax assets, net</td><td style="padding-bottom: 4pt; font-family: 'times new roman', serif;">&#160;</td><td style="text-align: left; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">258</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', serif;">&#160;</td><td style="padding-bottom: 4pt; font-family: 'times new roman', serif;">&#160;</td><td style="text-align: left; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">439</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', serif;"></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 1.05in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p></div> <p style="text-align: justify; font: 10pt times new roman, times, serif; margin: 0px; background-color: white;"><font style="font-size: 10pt; font-family: times new roman, times, serif;">&#160;</font></p><table align="center" style="font: 10pt/normal times new roman, times, serif; width: 100%; border-collapse: collapse; font-size-adjust: none; font-stretch: normal;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: center;" colspan="10"><p style="text-align: center; font: 10pt times new roman, times, serif; margin: 0px; background-color: white;"><font style="font-size: 10pt; font-family: times new roman, times, serif;"><b>Year ended</b></font></p><p style="text-align: center; font: 10pt times new roman, times, serif; margin: 0px;"><font style="font-size: 10pt; font-family: times new roman, times, serif;"><b>December 31,</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; font-weight: bold; text-align: center;" colspan="2">2014</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; font-weight: bold; text-align: center;" colspan="2">2015</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; font-weight: bold; text-align: center;" colspan="2">2016</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: justify;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: center;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1.05in; background-color: white;">&#160;</td><td style="text-align: justify;">Current taxes</td><td style="width: 1%;">&#160;</td><td style="width: 1%; text-align: left;">$</td><td style="width: 9%; text-align: right;">914</td><td style="width: 1%; text-align: left;">&#160;</td><td style="width: 1%;">&#160;</td><td style="width: 1%; text-align: left;">$</td><td style="width: 9%; text-align: right;">766</td><td style="width: 1%; text-align: left;">&#160;</td><td style="width: 1%;">&#160;</td><td style="width: 1%; text-align: left;">$</td><td style="width: 9%; text-align: right;">829</td><td style="width: 1%; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="padding-bottom: 1.5pt; text-align: justify;">Deferred taxes</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: left;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: right;">(132</td><td style="padding-bottom: 1.5pt; text-align: left;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: left;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: right;">(57</td><td style="padding-bottom: 1.5pt; text-align: left;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: left;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: right;">(181</td><td style="padding-bottom: 1.5pt; text-align: left;">)</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="padding-bottom: 4pt; text-align: justify;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: black 4pt double; text-align: left;">$</td><td style="border-bottom: black 4pt double; text-align: right;">782</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: black 4pt double; text-align: left;">$</td><td style="border-bottom: black 4pt double; text-align: right;">709</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: black 4pt double; text-align: left;">$</td><td style="border-bottom: black 4pt double; text-align: right;">648</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Domestic</td><td>&#160;</td><td style="text-align: left;">$</td><td style="text-align: right;">201</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">$</td><td style="text-align: right;">(113</td><td style="text-align: left;">)</td><td>&#160;</td><td style="text-align: left;">$</td><td style="text-align: right;">(70</td><td style="text-align: left;">)</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="padding-bottom: 1.5pt; text-align: justify;">Foreign</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: left;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: right;">581</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: left;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: right;">822</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: left;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: right;">718</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="padding-bottom: 4pt; text-align: justify;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: black 4pt double; text-align: left;">$</td><td style="border-bottom: black 4pt double; text-align: right;">782</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: black 4pt double; text-align: left;">$</td><td style="border-bottom: black 4pt double; text-align: right;">709</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: black 4pt double; text-align: left;">$</td><td style="border-bottom: black 4pt double; text-align: right;">648</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td></tr></table><p style="text-align: justify; font: 10pt times new roman, times, serif; margin: 0px; background-color: white;"><font style="font-size: 10pt; font-family: times new roman, times, serif;">&#160;</font></p><table align="center" style="font: 10pt/normal times new roman, times, serif; width: 100%; border-collapse: collapse; font-size-adjust: none; font-stretch: normal;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: center;" colspan="10"><p style="text-align: center; font: 10pt times new roman, times, serif; margin: 0px; background-color: white;"><font style="font-size: 10pt; font-family: times new roman, times, serif;"><b>Year ended</b></font></p><p style="text-align: center; font: 10pt times new roman, times, serif; margin: 0px;"><font style="font-size: 10pt; font-family: times new roman, times, serif;"><b>December 31,</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; font-weight: bold; text-align: center;" colspan="2">2014</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; font-weight: bold; text-align: center;" colspan="2">2015</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; font-weight: bold; text-align: center;" colspan="2">2016</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Domestic taxes:</td><td>&#160;</td><td style="text-align: justify;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: center;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: justify;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1.05in; background-color: white;">&#160;</td><td style="padding-bottom: 1.5pt; text-align: justify;">Current taxes</td><td style="width: 1%; padding-bottom: 1.5pt;">&#160;</td><td style="width: 1%; border-bottom: black 1.5pt solid; text-align: left;">$</td><td style="width: 9%; border-bottom: black 1.5pt solid; text-align: right;">201</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left;">&#160;</td><td style="width: 1%; padding-bottom: 1.5pt;">&#160;</td><td style="width: 1%; border-bottom: black 1.5pt solid; text-align: left;">$</td><td style="width: 9%; border-bottom: black 1.5pt solid; text-align: right;">(113</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left;">)</td><td style="width: 1%; padding-bottom: 1.5pt;">&#160;</td><td style="width: 1%; border-bottom: black 1.5pt solid; text-align: left;">$</td><td style="width: 9%; border-bottom: black 1.5pt solid; text-align: right;">(70</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Foreign taxes:</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Current taxes</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">713</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">879</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">899</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="padding-bottom: 1.5pt; text-align: justify;">Deferred taxes</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: left;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: right;">(132</td><td style="padding-bottom: 1.5pt; text-align: left;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: left;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: right;">(57</td><td style="padding-bottom: 1.5pt; text-align: left;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: left;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: right;">(181</td><td style="padding-bottom: 1.5pt; text-align: left;">)</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="padding-bottom: 1.5pt; text-align: justify;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: left;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: right;">581</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: left;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: right;">822</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: left;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: right;">718</td><td style="padding-bottom: 1.5pt; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="padding-bottom: 4pt; text-align: justify;">Taxes on income</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: black 4pt double; text-align: left;">$</td><td style="border-bottom: black 4pt double; text-align: right;">782</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: black 4pt double; text-align: left;">$</td><td style="border-bottom: black 4pt double; text-align: right;">709</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: black 4pt double; text-align: left;">$</td><td style="border-bottom: black 4pt double; text-align: right;">648</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td></tr></table><p style="text-align: justify; font: 10pt times new roman, times, serif; margin: 0px 0px 0px 1.05in; text-indent: 0px;"><font style="font-size: 10pt; font-family: times new roman, times, serif;">&#160;</font></p> <p style="text-align: justify; font: 10pt times new roman, times, serif; margin: 0px 0px 0px 1.05in; background-color: white;"></p><table align="center" style="font: 10pt/normal times new roman, times, serif; width: 100%; border-collapse: collapse; font-size-adjust: none; font-stretch: normal;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; font-weight: bold; text-align: center;" colspan="6">December 31,</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; font-weight: bold; text-align: center;" colspan="2">2015</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; font-weight: bold; text-align: center;" colspan="2">2016</td><td style="font-weight: bold; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: center;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1.05in; background-color: white;">&#160;</td><td style="text-align: justify;">Beginning of year</td><td style="width: 1%;">&#160;</td><td style="width: 1%; text-align: left;">$</td><td style="width: 9%; text-align: right;">1,187</td><td style="width: 1%; text-align: left;">&#160;</td><td style="width: 1%;">&#160;</td><td style="width: 1%; text-align: left;">$</td><td style="width: 9%; text-align: right;">1,074</td><td style="width: 1%; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="padding-bottom: 1.5pt; text-align: justify;">Decrease related to prior years&#8217; positions</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: left;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: right;">(113</td><td style="padding-bottom: 1.5pt; text-align: left;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: left;">&#160;</td><td style="border-bottom: black 1.5pt solid; text-align: right;">(70</td><td style="padding-bottom: 1.5pt; text-align: left;">)</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="padding-bottom: 4pt; text-align: justify;">Balance at December 31</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: black 4pt double; text-align: left;">$</td><td style="border-bottom: black 4pt double; text-align: right;">1,074</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="border-bottom: black 4pt double; text-align: left;">$</td><td style="border-bottom: black 4pt double; text-align: right;">1,004</td><td style="padding-bottom: 4pt; text-align: left;">&#160;</td></tr></table> <div> <table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="11"> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Year ended</b></font></p> <p style="font: 10pt/12pt 'times new roman', times, serif; margin: 0px 0px 0px 2.85pt; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>December 31,</b></font></p> </td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: center; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="3"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2014</b></font></td> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: center; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="3"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2015</b></font></td> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: center; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="3"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2016</b></font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: justify; line-height: 15.33px;" colspan="3"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: center; line-height: 15.33px;" colspan="3"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px;" colspan="3"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="width: 1.05in; line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Income before taxes, as reported in the consolidated statements of income</font></td> <td style="width: 12px; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="width: 12px; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td> <td style="width: 112px; text-align: right; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">3,805</font></td> <td style="width: 12px; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="width: 12px; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="width: 12px; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td> <td style="width: 112px; text-align: right; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">5,434</font></td> <td style="width: 12px; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="width: 12px; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="width: 12px; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td> <td style="width: 112px; text-align: right; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,476</font></td> <td style="width: 12px; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Theoretical tax expense on the above amount at the Israeli statutory tax rate</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,008</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,440</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">369</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Tax adjustment in respect of different tax rate of foreign subsidiaries</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">44</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">101</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">114</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Non-deductible expenses and other permanent differences</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">190</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">184</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">140</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Deferred taxes on losses and other temporary differences for which valuation allowance was provided, net</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">218</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">546</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">318</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Stock compensation relating to stock options per ASC No. 718</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">238</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">606</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">716</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Change in tax rate</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">-</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">-</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">240</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Beneficiary enterprise benefits (*)</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(510</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(1,685</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(1,190</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Foreign exchange differences (**)</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(96</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(375</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">-</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Increase (decrease) in other uncertain tax positions-net</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">112</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(113</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(70</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Other</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">5</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">5</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">11</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Actual tax expense</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td> <td style="text-align: right; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">782</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td> <td style="text-align: right; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">709</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td> <td style="text-align: right; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">648</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(*) Basic earnings per share amounts of the benefit resulting from the &#8220;Beneficiary Enterprise&#8221; status</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.06</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.19</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.04</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: #cceeff;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="line-height: 15.33px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; text-indent: -8.5pt; padding-left: 11.35pt; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Diluted earnings per share amounts of the benefit resulting from the &#8220;Beneficiary Enterprise&#8221; status</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.05</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.17</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> <td style="text-align: right; line-height: 15.33px; border-bottom-color: black; border-bottom-width: 4.5pt; border-bottom-style: double; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.04</font></td> <td style="line-height: 15.33px; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></td> </tr> </table> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;">&#160;<font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p> <p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p> <table style="width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman', times, serif; font-size: 10pt; word-spacing: 0px; widows: 1; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 101px;">&#160;</td> <td style="font: 10pt/normal calibri, sans-serif; width: 34px; font-stretch: normal;"><font style="font-family: 'times new roman', serif; font-size: 10pt;">(**)</font></td> <td style="font: 10pt/normal calibri, sans-serif; text-align: justify; padding-bottom: 8pt; font-stretch: normal;"><font style="font-family: 'times new roman', serif; font-size: 10pt;">Until 2016 results for tax purposes were measured under, Measurement of results for tax purposes under the Income Tax (Inflationary Adjustments) Law, 1985, in terms of earnings in NIS. As explained in Note 2b, the financial statements are measured in U.S. dollars. The difference between the annual changes in the NIS/dollar exchange rate causes a difference between taxable income and the income before taxes shown in the financial statements. In accordance with ASC 740-10-25-3(F), the Company has not provided deferred income taxes in respect of the difference between the functional currency and the tax bases of assets and liabilities. Starting 2016 of the Israeli companies the results for tax purposes are measured in U.S dollars.</font></td> </tr> </table> </div> <div><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Year ended</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>December 31,</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2014</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: justify;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: center;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1.05in; background-color: white;">&#160;</td><td style="text-align: justify;">Domestic</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">2,212</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">3,204</td><td style="width: 15px; text-align: left;">&#160;</td><td style="width: 15px;">&#160;</td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">(507</td><td style="width: 15px; text-align: left;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 1.5pt;">Foreign</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,593</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2,230</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,983</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 4pt;">Income before income taxes</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">3,805</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">5,434</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,476</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td></tr></table></div> <div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px 0px 0px 0.7in; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td>&#160;</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif;">&#160;</td><td style="text-align: center; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10"><p style="font: 10pt/normal 'times new roman', serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><b>Year ended</b></p><p style="font: 10pt/normal 'times new roman', serif; margin: 0px 0px 0px 2.85pt; text-align: center; font-stretch: normal;"><b>December 31,</b></p></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td>&#160;</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif; font-weight: bold;">&#160;</td><td style="text-align: center; font-family: 'times new roman', serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2014</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif; font-weight: bold;">&#160;</td><td style="text-align: center; font-family: 'times new roman', serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif; font-weight: bold;">&#160;</td><td style="text-align: center; font-family: 'times new roman', serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; font-family: 'times new roman', serif;">Revenues from sales to customers located in:</td><td>&#160;</td><td style="text-align: justify;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.7in; background-color: white;">&#160;</td><td style="text-align: justify; padding-left: 2.85pt; font-family: 'times new roman', serif;">Americas (mostly U.S)</td><td style="width: 15px; font-family: 'times new roman', serif;">&#160;</td><td style="width: 15px; text-align: left; font-family: 'times new roman', serif;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', serif;">36,752</td><td style="width: 15px; text-align: left; font-family: 'times new roman', serif;">&#160;</td><td style="width: 15px; font-family: 'times new roman', serif;">&#160;</td><td style="width: 15px; text-align: left; font-family: 'times new roman', serif;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', serif;">48,790</td><td style="width: 15px; text-align: left; font-family: 'times new roman', serif;">&#160;</td><td style="width: 15px; font-family: 'times new roman', serif;">&#160;</td><td style="width: 15px; text-align: left; font-family: 'times new roman', serif;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', serif;">72,011</td><td style="width: 15px; text-align: left; font-family: 'times new roman', serif;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-left: 2.85pt; font-family: 'times new roman', serif;">EMEA</td><td style="font-family: 'times new roman', serif;">&#160;</td><td style="text-align: left; font-family: 'times new roman', serif;">&#160;</td><td style="text-align: right; font-family: 'times new roman', serif;">18,004</td><td style="text-align: left; font-family: 'times new roman', serif;">&#160;</td><td style="font-family: 'times new roman', serif;">&#160;</td><td style="text-align: left; font-family: 'times new roman', serif;">&#160;</td><td style="text-align: right; font-family: 'times new roman', serif;">21,600</td><td style="text-align: left; font-family: 'times new roman', serif;">&#160;</td><td style="font-family: 'times new roman', serif;">&#160;</td><td style="text-align: left; font-family: 'times new roman', serif;">&#160;</td><td style="text-align: right; font-family: 'times new roman', serif;">24,720</td><td style="text-align: left; font-family: 'times new roman', serif;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 1.5pt; padding-left: 2.85pt; font-family: 'times new roman', serif;">Asia Pacific - other</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif;">&#160;</td><td style="text-align: left; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">11,608</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', serif;">&#160;</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif;">&#160;</td><td style="text-align: left; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">16,015</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', serif;">&#160;</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', serif;">&#160;</td><td style="text-align: left; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">11,963</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', serif;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-left: 2.85pt;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify; padding-bottom: 4pt; padding-left: 2.85pt;">&#160;</td><td style="padding-bottom: 4pt; font-family: 'times new roman', serif;">&#160;</td><td style="text-align: left; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">66,364</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', serif;">&#160;</td><td style="padding-bottom: 4pt; font-family: 'times new roman', serif;">&#160;</td><td style="text-align: left; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">86,405</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', serif;">&#160;</td><td style="padding-bottom: 4pt; font-family: 'times new roman', serif;">&#160;</td><td style="text-align: left; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">108,694</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', serif;"></td></tr></table></div> <div> <table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">December 31,</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: left;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td> <td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">Long-lived assets, by geographic region:</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="width: 0.7in; background-color: white;">&#160;</td> <td style="text-align: justify;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Americas (<font style="line-height: 14.66px;">mostly U.S)</font></font></td> <td style="width: 12px;">&#160;</td> <td style="width: 12px; text-align: left;">$</td> <td style="width: 112px; text-align: right;">314</td> <td style="width: 12px; text-align: left;">&#160;</td> <td style="width: 12px;">&#160;</td> <td style="width: 12px; text-align: left;">$</td> <td style="width: 112px; text-align: right;">268</td> <td style="width: 12px; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">Israel</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">3,851</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">8,385</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">EMEA</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">275</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">341</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 1.5pt;">Asia Pacific</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">338</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> <td style="padding-bottom: 1.5pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">253</td> <td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #cceeff;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="background-color: white;">&#160;</td> <td style="text-align: justify; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">4,778</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> <td style="padding-bottom: 4pt;">&#160;</td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">9,247</td> <td style="text-align: left; padding-bottom: 4pt;">&#160;</td> </tr> </table> </div> <div><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Year ended</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>December 31,</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2014</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">&#160;</td><td>&#160;</td><td style="text-align: justify;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: center;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.7in; background-color: white;">&#160;</td><td style="text-align: justify;">Customer A</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">&#160;</td><td style="width: 112px; text-align: right;">25</td><td style="width: 12px; text-align: left;">%</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">&#160;</td><td style="width: 112px; text-align: right;">18</td><td style="width: 12px; text-align: left;">%</td><td style="width: 12px;">&#160;</td><td style="width: 12px; text-align: left;">&#160;</td><td style="width: 112px; text-align: right;">21</td><td style="width: 12px; text-align: left;">%</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Customer B</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">15</td><td style="text-align: left;">%</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">15</td><td style="text-align: left;">%</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(* -</td><td style="text-align: left;"></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: justify;">Customer C</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(* -</td><td style="text-align: left;"></td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(* -</td><td style="text-align: left;"></td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">16</td><td style="text-align: left;">%</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -56.7pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; background-color: white; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">&#160;</font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1250.4px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.7in; font-stretch: normal;"></td><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.35in; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">*)</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; padding-right: 85.05pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Less than 10%</font></td></tr></table></div> <div><table align="center" style="font: 10pt/normal 'times new roman', times, serif; width: 1039.33px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal; background-color: white;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Year ended</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>December 31,</b></font></p></td><td style="padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2014</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">Financial income:</td><td>&#160;</td><td style="text-align: justify;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: center;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">&#160;</td><td>&#160;</td><td style="text-align: justify;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td><td style="text-align: right;" colspan="2">&#160;</td><td>&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 0.7in; background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">Interest on bank deposits and other</td><td style="width: 10px;">&#160;</td><td style="width: 10px; text-align: left;">$</td><td style="width: 93.33px; text-align: right;">8</td><td style="width: 10px; text-align: left;">&#160;</td><td style="width: 10px;">&#160;</td><td style="width: 10px; text-align: left;">$</td><td style="width: 93.33px; text-align: right;">156</td><td style="width: 10px; text-align: left;">&#160;</td><td style="width: 10px;">&#160;</td><td style="width: 10px; text-align: left;">$</td><td style="width: 93.33px; text-align: right;">203</td><td style="width: 10px; text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">Foreign currency translation differences</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">811</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">18</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">196</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-bottom: 1.5pt; padding-left: 10pt;">Interest on marketable securities</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">260</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,052</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-bottom: 1.5pt; padding-left: 10pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">819</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">434</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,451</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">Financial expenses:</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">Bank charges</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(166</td><td style="text-align: left;">)</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(160</td><td style="text-align: left;">)</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(277</td><td style="text-align: left;">)</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">Foreign currency translation differences</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(668</td><td style="text-align: left;">)</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(495</td><td style="text-align: left;">)</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">(674</td><td style="text-align: left;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-bottom: 1.5pt; padding-left: 10pt;">Amortization of premium and accretion of discount on available-for-sale marketable securities</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;">&#160;</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(113</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">&#160;</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(454</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-left: 10pt;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td><td>&#160;</td><td style="text-align: left;">&#160;</td><td style="text-align: right;">&#160;</td><td style="text-align: left;">&#160;</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="background-color: white;">&#160;</td><td style="text-align: left; text-indent: -10pt; padding-bottom: 4pt; padding-left: 10pt;">Total financial expense (income):</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">15</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">334</td><td style="text-align: left; padding-bottom: 4pt;">&#160;</td><td style="padding-bottom: 4pt;">&#160;</td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(46</td><td style="text-align: left; padding-bottom: 4pt;">)</td></tr></table></div> 0.33 0.15 0.20 0.07 684000 940000 2019000 1700000 2984000 -1444000 -1905000 10.0 2.0 2.5 2.0 1.5 1.0 0.025 0.001 0.022 0.002 0.022 0.003 0.55 0.50 0.55 0.50 0.56 0.54 0.00 0.00 0.00 287000 824000 2211000 396000 346000 931000 719000 768000 The computation of the suboptimal exercise multiple based on empirical studies, the early exercise factor of public companies is approximately 100% for employees and 150% for managers. 0.0833 8453000 8636000 1015000 1354000 1590000 30000 3000 437000 283000 526000 The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. 0 0 0 21000 216000 762152 1498503 11443000 2614000 265000 3472000 5092000 P5Y P4Y Infinite 11443000 741000 2700000 2237000 2470000 493000 33906000 4533000 29373000 38324000 16530000 21794000 1000 1000 7000 2000 5000 228000 6000 222000 107000 28000 79000 33679000 4527000 29152000 38224000 16504000 21720000 33679000 33679000 38224000 38224000 3000 3000 33679000 33679000 38227000 38227000 1070000 1070000 30000 30000 30000 30000 1070000 1070000 2237000 -1400000 233000 All investments with an unrealized loss as of December 31, 2016 are with continuous unrealized losses for less than 12 months. 1400000 0.15 8724000 12322000 7079000 11800000 145000 705000 10570000 1421000 842000 5996000 2311000 17207000 1935000 1332000 8962000 4978000 5792000 7960000 1226000 1560000 2447000 168000 166000 297000 1566000 1566000 4445000 2614000 265000 1566000 P5Y P4Y P8Y1M21D 543000 543000 1060000 261000 33000 766000 689000 689000 689000 656000 662000 3385000 126000 222000 519000 344000 993000 940000 1741000 248000 693000 1400000 1098000 1276000 2528000 2165000 1933000 1820000 339000 8785000 1203000 1443000 1664000 2022-12-31 4100000 These lines of credit are unsecured and available subject to the Company maintenance of a 30% ratio of total shareholders' equity to total assets. Interest rates across these credit lines varied from 1.5% to 2.3% as of December 31, 2016. Any borrowings under the credit lines would become repayable if Fortissimo Capital ceases to be the company controlling shareholder (which for this purpose generally requires Fortissimo Capital to continue to hold 25% of the Company outstanding ordinary shares). 34182000 590000 625000 625000 2 359000 625000 2769004 2733166 831200 173115 1009118 2252262 4.74 7.01 10.11 1.38 8.03 4.16 6.33 P7Y2M9D P9Y6M26D P3Y7M24D P7Y7M2D P7Y9M11D P6Y2M12D P7Y6M 18580000 16054000 2103000 189000 5281000 7821000 7821000 8775000 14750000 1.14 1.60 2.07 2.17 9.97 10.10 0.36 0.92 9.38 9.49 11.49 11.90 12.97 15.29 2733166 202001 74311 969514 145000 794722 73005 474613 0.60 1.48 2.14 9.47 10.04 11.83 14.02 P11M19D P4Y11M19D P7Y5M19D P9Y8M5D P9Y1M17D P9Y8M27D P8Y7M17D 1009118 202001 25982 556620 7500 64366 152649 0.60 1.26 2.14 9.49 9.97 14.02 P11M19D P2Y9M15D P7Y5M16D P9Y9M P7Y6M26D P8Y7M17D 8165000 73519000 12628741 Company closed its initial public offering ("IPO") whereby 8,165,000 ordinary shares were sold by the Company to the public (inclusive of 1,065,000 ordinary shares pursuant to the full exercise of an overallotment option granted to the underwriters). 8875000 P2Y9M4D 0.01 Generally vest in portions as follows: 50% of total options are exercisable two years after the date determined for each optionee, a further 25% three years after the date determined for each optionee and a 25% four years after the date determined for each optionee. 25% of total options are exercisable one year after the date determined for each optionee and a further 6.25% at the end of each subsequent three month period for 3 years. Options that have vested are exercisable for up to 10 years from the grant date of the options to each employee. P10Y 1401875 4.46 7.11 5.64 4.92 8969588 24633369 30562255 1476741 1825215 1170277 10446329 26458584 31732532 -104000 -227000 5000 118000 273000 133000 97000 43000 -33000 -33000 -72000 -6000 -66000 -137000 -227000 -28000 118000 201000 127000 31000 43000 1536000 2015000 2086000 2131000 3622000 4146000 77000 102000 3287000 3605000 258000 439000 914000 766000 829000 -132000 -57000 -181000 201000 -113000 -70000 581000 822000 718000 201000 -113000 -70000 713000 879000 899000 -132000 -57000 -181000 1187000 1074000 1074000 -113000 -70000 1008000 1440000 369000 44000 101000 114000 190000 184000 140000 218000 546000 318000 238000 606000 716000 240000 -510000 -1685000 -1190000 -96000 -375000 112000 -113000 -70000 5000 5000 11000 0.06 0.19 0.04 0.05 0.17 0.04 2212000 3204000 -507000 1593000 2230000 1983000 0.265 0.265 0.25 On January 4, 2016, the Israeli Parliament's Plenum approved by a second and third reading the Bill for Amending the Income Tax Ordinance (No. 216) (Reduction of Corporate Tax Rate) which consists of the reduction of the corporate tax rate from 26.5% to 25%, effective January 1, 2016. The Israeli Parliament approved the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), which reduces the corporate income tax rate to 24% (instead of 25%) effective from January 1, 2017 and to 23% effective from January 1, 2018. The duration of tax benefits is subject to a limitation of the earlier of 12 years from commencement of production, or 14 years from the approval date. The Israeli Companies began to utilize such tax benefits in 2010. 53219000 13305000 A Preferred Company is entitled to a reduced corporate flat tax rate of 15% with respect to its preferred income derived by its Preferred Enterprise in 2011-2012, unless the Preferred Enterprise is located in a certain development zone, in which case the rate will be 10%. Such corporate tax rate were reduced to 12.5% and 7%, respectively, in 2013 and increased to 16% and 9% in 2014 and thereafter. Income derived by a Preferred Company from a "Special Preferred Enterprise" (as such term is defined in the Investment Law) would be entitled, during a benefits period of 10 years, to further reduced tax rates of 8%, or to 5% if the Special Preferred Enterprise is located in a certain development zone. 0.20 0.15 5321000 24000000 -79000 26000 0 96000 96000 4778000 275000 314000 338000 3851000 9247000 341000 268000 253000 8385000 0.25 0.15 0.18 0.15 0.21 0.16 The customers that represented 10% or more of the Company's total revenues. 1 8000 156000 203000 811000 18000 196000 260000 1052000 819000 434000 1451000 166000 160000 277000 668000 495000 674000 113000 454000 120000 0.05 250000 160000 30000 Under the agreement the Company agreed to pay Fortissimo a one-time payment of $750. The term of the agreement is five years beginning on May 1, 2016 and extends automatically for additional one year periods unless terminated by amazon. 2932176 13.03 150000000 5000000 P5Y 2300000 1125000 8625000 6325000 36053000 951000 Represents an amount lower than $1. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term (including the extension option held by the Company and intended to be exercised) and the expected life of the improvement. Customer relationships represent the underlying relationships and agreements with SPSI's installed customer base and are amortized over the useful life of the agreements using accelerated method. Non-competition agreement is amortized over the useful life of the agreement using straight-line method. $1,400 is included within other payables and accrued expenses on the balance sheet as the set milestone was met as of December 31, 2016. Includes amounts of $ 145 and $ 705 for the years ended December 31, 2015 and 2016, respectively, with respect to inventory delivered to customers but for which revenue criteria have not yet been met. Basic earnings per share amounts of the benefit resulting from the "Beneficiary Enterprise" status Until 2016 results for tax purposes were measured under, Measurement of results for tax purposes under the Income Tax (Inflationary Adjustments) Law, 1985, in terms of earnings in NIS. As explained in Note 2b, the financial statements are measured in U.S. dollars. The difference between the annual changes in the NIS/dollar exchange rate causes a difference between taxable income and the income before taxes shown in the financial statements. In accordance with ASC 740-10-25-3(F), the Company has not provided deferred income taxes in respect of the difference between the functional currency and the tax bases of assets and liabilities. Starting 2016 of the Israeli companies the results for tax purposes are measured in U.S dollars. Less than 10%