September 30,

December 31,

2017

U.S. Dollars (In thousands)

Assets

Current assets

Cash and cash equivalents

48,328

43,744

Trade accounts receivable, net

30,746

23,153

Inventories

25,789

21,336

Other current assets

3,536

3,215

Total current assets

108,399

91,448

Fixed assets, net

15,798

15,503

Long-term inventory

1,799

1,383

Deferred tax asset

2,890

4,067

Other assets, net

153

153

Intangible assets, net

508

482

5,350

6,085

Total assets

113,036

Liabilities and shareholders' equity

Current liabilities

Trade accounts payable

13,746

10,502

Other current liabilities

20,127

17,395

Total current liabilities

33,873

27,897

Long term liabilities

Liability for employee severance benefits

873

838

873

838

Total liabilities

34,746

28,735

Shareholders' equity

38,526,231 issued shares at September 30, 2018 and 37,924,507 at December 31, 2017;

Additional paid-in capital

81,040

78,437

Retained earnings

15,508

7,613

96,699

86,199

Treasury stock, at cost (2,092,376 as of September 30, 2018 and December 31, 2017)

(1,898)

(1,898)

Total shareholders' equity

94,801

84,301

Total liabilities and shareholders' equity

129,547

113,036

Nine Months ended

Three months ended

Year ended

September 30,

September 30,

December 31,

2018

2017

2018

2017

2017

U.S. dollars

U.S. dollars

U.S. dollars

Revenues

90,000

67,641

32,264

23,813

93,485

Cost of revenues

45,921

34,447

16,081

12,063

47,966

Gross profit

44,079

33,194

16,183

11,750

45,519

Research and development costs

10,456

10,067

3,501

3,215

13,534

Selling, general and administrative expenses

19,792

16,847

7,128

5,688

22,022

Patent litigation expense

-

13,000

-

-

13,000

Total operating expenses

30,248

39,914

10,629

8,903

48,556

Operating income (loss)

13,831

(6,720)

5,554

2,847

(3,037)

Financial income (expenses), net

491

(199)

55

10

(150)

Income (loss) from continuing operations

 before income taxes

14,322

(6,919)

5,609

2,857

(3,187)

Income tax benefit (expense)

(1,364)

5,281

(516)

(83)

4,875

Income (loss) from continuing operations

12,958

5,093

2,774

1,688

Discontinued operation

Income from discontinued operation

Income before tax benefit (expense)

-

18,302

-

13,963

18,302

Income tax benefit (expense)

-

(5,563)

-

(5,058)

(6,028)

Income from discontinued operation

-

12,739

-

8,905

12,274

Net income

12,958

11,101

5,093

11,679

13,962

Net income (loss) per ordinary share:

Basic earnings (loss) from continuing operation

0.36

(0.05)

0.14

0.08

0.05

Basic earnings from discontinued operation

-

0.36

-

0.25

0.35

Diluted earnings (loss) from continuing operation

0.35

(0.05)

0.14

0.08

0.05

Diluted earnings from discontinued

 operation

-

0.35

-

0.24

0.34

Weighted average number of

 ordinary shares outstanding:

Basic

36,105

35,374

36,300

35,404

35,441

Diluted

36,657

35,972

36,941

36,361

35,964