Consolidated Statements of Operations

(in thousands, except share data)

Six Months ended

June 30,

Three Months

ended June 30,

Year ended

December

31,

2014

2013

2014

2013

2013

U.S. dollars

U.S. dollars

U.S. dollars

Revenues

45,270

40,339

23,161

22,266

85,405

Cost of revenues

23,672

22,317

11,693

12,447

51,003

Gross profit

21,598

18,022

11,468

9,819

34,402

Research and development costs

6,964

7,208

3,530

3,558

14,370

Selling, general and administrative expenses

10,900

9,974

5,374

5,268

22,362

Reorganization and impairment

-

-

-

-

(3,466)

17,864

17,182

8,904

8,826

33,266

Operating income

3,734

840

2,564

993

1,136

Financial expenses, net

694

1,078

329

512

1,738

Income (loss) before income

 taxes

3,040

(238)

2,235

481

(602)

Income tax

(389)

(293)

(223)

(146)

609

Net income (loss)

2,651

(531)

2,012

335

7

Net income (loss) per ordinary share:

Basic

0.09

(0.02)

0.07

0.01

0.00

Diluted

0.09

(0.02)

0.07

0.01

0.00

Weighted average number of ordinary shares outstanding:

Basic

30,447

29,966

30,467

30,034

30,040

Diluted

30,534

29,971

30,534

30,044

30,094