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Given Imaging Reports Third Quarter 2009 Results

^{Published on 2009-11-04 14:15:55 - Market Wire}
 

YOQNEAM, ISRAEL--(Marketwire - November 4, 2009) - Given Imaging Ltd. (NASDAQ: [ GIVN ]) today announced financial results for the third quarter ended September 30, 2009.

Worldwide revenues in the third quarter of 2009 increased to $35.2 million from $31.1 million in the third quarter of 2008. Gross margin in the third quarter of 2009 increased to 77.8%, compared to 75% in the third quarter of 2008.

Net income for the third quarter of 2009 increased by 82% to $3.8 million or $0.13 per share on a fully diluted* GAAP basis compared to $2.1 million, or $0.07 per share, respectively, in the third quarter of 2008. Non-GAAP earnings per share for the third quarter of 2009 increased to $6.0 million, or $0.20 per share, compared to $3.8 million, or $0.12 in the same period last year. A reconciliation of GAAP results to non-GAAP results is below.

Cash and cash equivalents, short-term investments and marketable securities at September 30, 2009 increased to $88.8 million.

"We are pleased to report another quarter of solid top and bottom-line results as third quarter revenue increased by 13% despite persistent softness in the medical equipment market. Sales of our Bravo pH Monitoring System grew again this quarter and helped to drive our top line. Our focus on increasing profitability resulted in significant growth in gross and operating profit margins," said Homi Shamir, president and CEO of Given Imaging. "Gross profit reached almost 78%, a result of improved manufacturing efficiencies and a favorable product mix. Non-GAAP operating margin continues to improve, reaching 13.7% this quarter, from 8.5% in the first quarter and 11.8% in the second quarter of this year. Looking ahead, we are very excited to be launching our second generation PillCam COLON at the GASTRO 2009 meeting in London later this month and plan to begin marketing this product in Europe in early 2010."

Third Quarter 2009 Revenue Analysis

Sales in the Americas region increased 16.5% to $22.6 million, from $19.4 million in the same period in 2008. Sales in the EMEA region were $9 million, an increase of 3.4% from $8.7 million in the same period in 2008. Sales in the APAC region were $3.6 million, an increase of 16% from $3.1 million last year.

Worldwide PillCam SB sales amounted to 54,800 capsules in the third quarter of 2009, compared to 56,100 capsules in the same period last year. PillCam SB sales in the Americas region of 36,300 were flat in the third quarter of 2009 compared to the same period last year. PillCam SB sales in the EMEA region increased 7% compared to the third quarter of 2008, while PillCam SB sales in the APAC region decreased 30%. Worldwide reorders of PillCam SB decreased by 2% to approximately 53,800 compared to approximately 55,100 in the third quarter of 2008. PillCam SB reorders accounted for the majority of PillCam SB sales in the third quarter.

Supplemental third quarter data can be found at [ www.givenimaging.com ] in the Investor Relations section.

Nine Month Financial Results

For the nine month period ended Sept 30, 2009, sales increased by 11% to $101.7 million compared to $91.3 million in the same period of 2008. Sales in the Americas region in the first three quarters of 2009 grew 20% to $65.7 million compared to $54.9 million in the same period in 2008. For the nine month period, sales of PillCam SB in the Americas region grew approximately 4.8%. Sales in the EMEA region increased by 7.5% to $27.1 million, from $25.2 million in the same period in 2008, and sales in the APAC region were $9.0 million, a decline of 20% from $11.2 million last year.

Gross profit for the nine month period was 76.6% compared to 74% in 2008. Net income for the first nine months of 2009 increased 48% to $9.0 million, or $0.30 per share on a fully diluted GAAP basis, compared to net income of $6.1 million or $0.20 per share for the same period in 2008. Non-GAAP earnings per share for the first nine months of 2009 more than doubled to $13.5 million or $0.45, compared to $6.8 million or $0.22 in the same quarter of last year.

2009 Guidance Revision

The company expects 2009 revenue to be near the low end of prior guidance of between $141 and $148 million. The company is increasing its 2009 EPS guidance and now expects GAAP EPS to be between $0.42 - $0.46, compared to prior guidance of $0.20 - $0.28 and non-GAAP EPS of $0.64 - $0.68 compared to prior guidance of $0.46 - $0.54.

Recent Developments

PillCam SB and Agile Patency Capsule Receive FDA Clearance for Young Children

In October, the U.S. Food and Drug Administration (FDA) cleared the PillCam SB video capsules and Agile patency capsules for use in patients two years of age and older.

PillCam COLON2 Update

Given Imaging recently announced encouraging results from a trial that validated new features of the company's second-generation PillCam Colon video capsule and system. Conducted by clinicians at five hospitals in Israel, the study evaluated the performance of PillCam COLON2 in 98 patients who had risk or warning symptoms of colon pathology.

The Company also announced that it obtained the CE mark for the sale of PillCam COLON2 in Europe. PillCam COLON2 will be launched at the Gastro 2009 conference taking place in London November 21 - 25 at which time the company plans on disclosing additional details regarding PillCam COLON2, including product specifications and software enhancements.

Conference Call / Webcast Information

U.S. Call / Webcast

The company will host a conference call in English at 9:00am ET on Thursday, November 5. To participate in this teleconference, please dial 888-661-5138 fifteen minutes before the conference is scheduled to begin. Callers outside of the U.S. should dial 913-312-1279. The call will also be webcast live at [ www.givenimaging.com ]. A replay of the call will be available for two weeks on the company's website, or until November 19 by dialing 888-203-1112. Callers outside of the U.S. should dial 719-457-0820. The replay participant code is 9998874.

A separate conference call in Hebrew will take place on November 5 at 2:00pm Israel time, 7am ET. To access this call, please dial +972 3 9180610 ten minutes before the conference is scheduled to begin. A replay of the call will be available from November 8 until November 10th by dialing +972 3 9255951.

About Given Imaging

Given Imaging has advanced gastrointestinal diagnosis by developing innovative, patient-friendly tools based on its PillCam® Platform. PillCam capsule endoscopy provides physicians with natural images of the small intestine via PillCam® SB, the esophagus through PillCam® ESO, and the colon with PillCam® COLON [PillCam COLON is not cleared for use in the USA]. The PillCam capsules are miniature video cameras that patients ingest. Given Imaging's other capsule products include Agile™ patency capsule, to verify intestinal patency, and Bravo®, the only wireless, catheter-free, 48-hour pH test commercially available for pH testing to assess gastroesophageal reflux disease (GERD). Given Imaging's products use cutting-edge, wireless technology and advanced software to enable gastroenterologists to better diagnose disease of the esophagus, small bowel and colon and more accurately treat patients. All Given Imaging products allow patients to maintain normal activities. Since 2001, more than one million PillCam® video capsules have helped physicians evaluate patients for GI disorders. Given Imaging's headquarters, manufacturing and R&D facilities are located in Yoqneam, Israel, with operating subsidiaries in the United States, Germany, France, Japan, Australia and Singapore. For more information, please visit [ http://www.givenimaging.com ].

Use of Non-GAAP Measures

This press release provides financial measures for net income and basic and diluted earnings per share that exclude certain items and are therefore not calculated in accordance with generally accepted accounting principals (GAAP). Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance that enhances management's and investors' ability to evaluate the Company's net income and earnings per share and to compare it with historical net income and earnings per share.

The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management uses both GAAP and non-GAAP measures when evaluating the business internally and therefore felt it is important to make these non-GAAP adjustments available to investors.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, projections about our business and our future revenues, expenses and profitability. Forward-looking statements may be, but are not necessarily, identified by the use of forward-looking terminology such as "may," "anticipates," "estimates," "expects," "intends," "plans," "believes," and words and terms of similar substance. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual events, results, performance, circumstances or achievements of the Company to be materially different from any future events, results, performance, circumstances or achievements expressed or implied by such forward-looking statements. Factors that could cause actual events, results, performance, circumstances or achievements to differ from such forward-looking statements include, but are not limited to, the following: (1) our ability to develop and bring to market new products, (2) our ability to receive regulatory clearance or approval to market our products or changes in regulatory environment, (3) our success in implementing our sales, marketing and manufacturing plans, (4) protection and validity of patents and other intellectual property rights, (5) the impact of currency exchange rates, (6) the effect of competition by other companies, (7) the outcome of significant litigation, (8) our ability to obtain reimbursement for our product from government and commercial payors, (9) quarterly variations in operating results, (10) the possibility of armed conflict or civil or military unrest in Israel, (11) the impact of global economic conditions, and (12) other risks and factors disclosed in our filings with the U.S. Securities and Exchange Commission, including, but not limited to, risks and factors identified under such headings as "Risk Factors," "Cautionary Language Regarding Forward-Looking Statements" and "Operating Results and Financial Review and Prospects" in the Company's Annual Report on Form 20-F for the year ended December 31, 2008. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except for the Company's ongoing obligations to disclose material information under the applicable securities laws, it undertakes no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events.

* Based on fully diluted shares of 30,648,420 at Sept 30, 2009, and 30,601,355 at Sept 30, 2008

 Given Imaging Ltd. and its Consolidated Subsidiaries Specified Items For the Three Months Ended September 30, 2008 and 2009 (Unaudited, dollars in thousands) General Termination Research Selling And Of And And Administra- Marketing Tax Development Marketing tion Agreement Benefit Total Three month period ended September 30, 2009 Compensation expenses $ 93 $ 511 $ 1,586 $ - $ - $ 2,190 ----------- ---------- --------- ---------- -------- ------- Total $ 93 $ 511 $ 1,586 $ - $ - $ 2,190 =========== ========== ========= ========== ======== ======= Three month period ended September 30, 2008 Compensation expenses $ 97 $ 467 $ 1,306 $ - $ - $ 1,870 IP Litigation expenses - - (200) - - (200) Total $ 97 $ 467 $ 1,106 $ - $ - $ 1,670 =========== ========== ========= ========== ======== ======= Given Imaging Ltd. and its Consolidated Subsidiaries Specified Items For the Nine Months Ended September 30, 2008 and 2009 (Unaudited, dollars in thousands) General Termination Research Selling And Of And And Administra- Marketing Tax Development Marketing tion Agreement Benefit Total Nine month period ended September 30, 2009 Compensation Expenses $ 286 $ 1,509 $ 4,083 $ - $ - $ 5,878 Tax (benefit) - - - - (1,390) (1,390) ----------- --------- ----------- --------- -------- ------- Total $ 286 $ 1,509 $ 4,083 $ - $ (1,390) $ 4,488 =========== ========= =========== ========= ======== ======= Nine month period ended September 30, 2008 Compensation expenses $ 270 $ 1,303 $ 3,553 $ - $ - $ 5,126 IP Litigation expenses - - 3,375 - - 3,375 Patent litigation settlement - - (2,333) - - (2,333) Terminatiion of marketing agreement - - - (5,443) - (5,443) ----------- --------- ----------- --------- -------- ------- Total $ 270 $ 1,303 $ 4,595 $ (5443) $ - $ 725 =========== ========= =========== ========= ======== ======= Given Imaging Ltd. and its Consolidated Subsidiaries Reconciliation of GAAP results to non-GAAP results For the three months ended September 30, 2009 and 2008 Condensed, in thousands except share and per share data Q3 2009 Q3 2008 Specified Non Specified Non GAAP Items (*) GAAP GAAP Items (*) GAAP -------- --------- -------- -------- --------- -------- Revenues $ 35,220 - $ 35,220 $ 31,136 - $ 31,136 Cost of revenues (7,827) - (7,827) (7,793) - (7,793) -------- --------- -------- -------- --------- -------- Gross profit 27,393 - 27,393 23,343 - 23,343 -------- --------- -------- -------- --------- -------- Gross profit as a % of revenues 77.8% - 77.8% 75.0% - 75.0% Operating expenses Research and development, net (4,632) 93 (4,539) (3,540) 97 (3,443) Sales and marketing (14,758) 511 (14,247) (14,647) 467 (14,180) General and administrative (5,042) 1,586 (3,456) (4,276) 1,106 (3,170) Termination of marketing agreement - - - - - - Other, net (316) - (316) - - - -------- --------- -------- -------- --------- -------- Total operating expenses (24,748) 2,190 (22,558) (22,463) 1,670 (20,793) -------- --------- -------- -------- --------- -------- Operating profit 2,645 2,190 4,835 880 1,670 2,550 Operating profit as a % of revenues 7.5% - 13.7% 2.8% - 8.2% -------- --------- -------- -------- --------- -------- Financing income, net 1,086 - 1,086 729 - 729 -------- --------- -------- -------- --------- -------- Profit before taxes on income 3,731 2,190 5,921 1,609 1,670 3,279 Income tax expense (6) - (6) (107) - (107) -------- --------- -------- -------- --------- -------- Net Profit 3,725 2,190 5,915 1,502 1,670 3,172 Net loss attributable to non-controlli- ng interest 114 - 114 607 - 607 -------- --------- -------- -------- --------- -------- Net profit attributable to shareholders $ 3,839 $ 2,190 $ 6,029 $ 2,109 $ 1,670 $ 3,779 ======== ========= ======== ======== ========= ======== Net profit attributable to shareholders as a % of revenues 10.9% - 17.1% 6.8% - 12.1% Earnings per share Basic Earnings attributable to shareholders per Ordinary Share $ 0.13 $ 0.08 $ 0.21 $ 0.07 $ 0.06 $ 0.13 ======== ========= ======== ======== ========= ======== Diluted Earnings attributable to shareholders per Ordinary Share $ 0.13 $ 0.07 $ 0.20 $ 0.07 $ 0.05 $ 0.12 ======== ========= ======== ======== ========= ======== (*)See specified items Given Imaging Ltd. and its Consolidated Subsidiaries Reconciliation of GAAP results to non-GAAP results For the nine months ended September 30, 2009 and 2008 Condensed, in thousands except share and per share data YTD 2009 YTD 2008 Specified Non Specified Non GAAP Items (*) GAAP GAAP Items (*) GAAP --------- --------- --------- -------- --------- -------- Revenues $ 101,723 - $ 101,723 $ 91,332 - $ 91,332 Cost of revenues (23,766) - (23,766) (23,736) - (23,736) --------- --------- --------- -------- --------- -------- Gross profit 77,957 - 77,957 67,596 - 67,596 --------- --------- --------- -------- --------- -------- Gross profit as a % of revenues 76.6% - 76.6% 74.0% - 74.0% Operating expenses Research and development, net (12,522) 286 (12,236) (10,439) 270 (10,169) Sales and marketing (45,257) 1,509 (43,748) (46,569) 1,303 (45,266) General and administr- ative (14,021) 4,083 (9,938) (14,449) 4,595 (9,854) Termination of marketing agreement - - - 5,443 (5,443) - Other, net (331) - (331) - - - --------- --------- --------- -------- --------- -------- Total operating expenses (72,131) 5,878 (66,253) (66,014) 725 (65,289) --------- --------- --------- -------- --------- -------- Operating profit 5,826 5,878 11,704 1,582 725 2,307 Operating profit (loss) as a % of revenues 5.7% - 11.5% 1.7% - 2.5% --------- --------- --------- -------- --------- -------- Financing income, net 1,276 - 1,276 3,195 - 3,195 --------- --------- --------- -------- --------- -------- Profit before taxes on income 7,102 5,878 12,980 4,777 725 5,502 Income tax benefit (expense) 1,160 (1,390) (230) (233) - (233) --------- --------- --------- -------- --------- -------- Net Profit 8,262 4,488 12,750 4,544 725 5,269 Net loss attributable to non-controlling interest 704 - 704 1,525 - 1,525 --------- --------- --------- -------- --------- -------- Net profit attributable to sharehold- ers $ 8,966 $ 4,488 $ 13,454 $ 6,069 $ 725 $ 6,794 ========= ========= ========= ======== ========= ======== Net profit attributable to shareholders as a % of revenues 8.8% - 13.2% 6.6% - 7.4% Earnings per share Basic Earnings attributable to shareholders per Ordinary Share $ 0.31 $ 0.15 $ 0.46 $ 0.21 $ 0.02 $ 0.23 ========= ========= ========= ======== ========= ======== Diluted Earnings attributable to shareholders per Ordinary Share $ 0.30 $ 0.15 $ 0.45 $ 0.20 $ 0.02 $ 0.22 ========= ========= ========= ======== ========= ======== (*)See specified items Given Imaging Ltd. and its Consolidated Subsidiaries Consolidated Balance Sheets In thousands except share data (Unaudited) September 30 December 31 2009 2008 ------------ ------------ Assets Current assets Cash and cash equivalents $ 42,199 $ 31,697 Short-term investments 26,537 28,509 Accounts receivable: Trade (Net of provisions for doubtful debts of $287 and of $210 as of September 30, 2009 and December 31, 2008, respectively) 21,247 21,673 Other 3,093 4,662 Inventories 24,477 18,931 Advances to suppliers 577 3,540 Deferred tax assets 1,512 1,178 Prepaid expenses 1,960 1,631 ------------ ------------ Total current assets 121,602 111,821 ------------ ------------ Deposits 1,099 1,094 Assets held for employee severance payments 4,658 3,686 Marketable Securities 20,097 30,063 Fixed assets, at cost, less accumulated depreciation 14,365 15,115 Intangible assets less accumulated amortization 11,598 12,067 Goodwill 4,063 4,069 ------------ ------------ Total Assets $ 177,482 $ 177,915 ============ ============ Given Imaging Ltd. and its Consolidated Subsidiaries Consolidated Balance Sheets In thousands except share data (Unaudited) September 30 December 31 2009 2008 ----------- ----------- Liabilities and shareholders' equity Current liabilities Current installments of obligation under capital lease $ 149 $ 114 Accounts payable Trade 7,649 7,418 Other 18,665 17,612 Deferred income 219 1,523 ----------- ----------- Total current liabilities 26,682 26,667 ----------- ----------- Long-term liabilities Obligation under capital lease, net 401 485 Liability in respect of employees’ severance payments 5,257 4,599 ----------- ----------- Total long-term liabilities 5,658 5,084 ----------- ----------- Total liabilities 32,340 31,751 ----------- ----------- Equity Shareholders’ equity Ordinary Shares, NIS 0.05 par value each (90,000,000 shares authorized; 29,294,785 and 29,257,785 shares issued and fully paid as of September 30, 2009 and December 31, 2008, respectively) 344 343 Additional paid-in capital 179,910 173,983 Capital reserve 2,166 2,166 Accumulated other comprehensive income (loss) 431 (600) Accumulated deficit (38,554) (31,721) ----------- ----------- Shareholders' equity 144,297 144,171 ----------- ----------- Noncontrolling interest 845 1,993 ----------- ----------- Total Equity 145,142 146,164 ----------- ----------- Total liabilities and equity $ 177,482 $ 177,915 =========== =========== Given Imaging Ltd. and its Consolidated Subsidiaries Consolidated Statements of Operations In thousands except share and per share data (Unaudited) Nine-month period Three-month period ended ended September 30 September 30 Year ended ---------------------- ---------------------- December 31 2009 2008 2009 2008 2008 ---------- ---------- ---------- ---------- ---------- Revenues $ 101,723 $ 91,332 $ 35,220 $ 31,136 $ 125,108 Cost of revenues (23,766) (23,736) (7,827) (7,793) (33,001) ---------- ---------- ---------- ---------- ---------- Gross profit 77,957 67,596 27,393 23,343 92,107 ---------- ---------- ---------- ---------- ---------- Operating expenses Research and development, gross (13,543) (11,529) (5,019) (3,840) (15,126) In-process research and development acquired in a business combination - - - - (4,700) ---------- ---------- ---------- ---------- ---------- (13,543) (11,529) (5,019) (3,840) (19,826) Government grants 1,021 1,090 387 300 1,530 ---------- ---------- ---------- ---------- ---------- Research and development, net (12,522) (10,439) (4,632) (3,540) (18,296) Sales and marketing (45,257) (46,569) (14,758) (14,647) (60,902) General and administrative (14,021) (14,449) (5,042) (4,276) (19,320) Termination of marketing agreement - 5,443 - - 5,443 Other, net (331) - (316) - (867) ---------- ---------- ---------- ---------- ---------- Total operating expenses (72,131) (66,014) (24,748) (22,463) (93,942) ---------- ---------- ---------- ---------- ---------- Operating profit (loss) 5,826 1,582 2,645 880 (1,835) Financing income, net 1,276 3,195 1,086 729 4,004 ---------- ---------- ---------- ---------- ---------- Profit (loss) before taxes on income 7,102 4,777 3,731 1,609 2,169 Income tax (expense) benefit 1,160 (233) (6) (107) (250) ---------- ---------- ---------- ---------- ---------- Net Profit 8,262 4,544 3,725 1,502 1,919 Net loss attributable to noncontrolling interest 704 1,525 114 607 2,087 ---------- ---------- ---------- ---------- ---------- Net profit attributable to shareholders $ 8,966 $ 6,069 $ 3,839 $ 2,109 $ 4,006 ========== ========== ========== ========== ========== Earnings per share Basic Earnings attributable to shareholders per Ordinary Share $ 0.31 $ 0.21 $ 0.13 $ 0.07 $ 0.14 ========== ========== ========== ========== ========== Diluted Earnings attributable to shareholders per Ordinary Share $ 0.30 $ 0.20 $ 0.13 $ 0.07 $ 0.13 ========== ========== ========== ========== ========== Weighted average number of Ordinary Shares used to compute basic earnings per Ordinary share 29,264,952 29,252,785 29,278,785 29,254,618 29,254,035 ========== ========== ========== ========== ========== Weighted average number of Ordinary Shares used to compute diluted Earnings per Ordinary share 30,108,597 30,791,425 30,648,420 30,601,355 30,798,360 ========== ========== ========== ========== ========== The accompanying notes are an integral part of these consolidated financial statements. Given Imaging Ltd. and its Consolidated Subsidiaries Consolidated Statements of Cash Flows In thousands (Unaudited) Nine-month period Three-month period ended ended September 30, September 30, Year ended ------------------ ------------------ December 31, 2009 2008 2009 2008 2008 -------- -------- -------- -------- ---------- Cash flows from operating activities: Net profit $ 8,262 $ 4,544 $ 3,725 $ 1,502 $ 1,919 Adjustments required to reconcile net profit to net cash used in operating activities: Depreciation and amortization 4,513 3,839 1,531 1,298 5,183 In-process research and development - - - - 4,700 Goodwill impairment - - - - 406 Changes in deferred tax assets (334) 284 (517) 109 172 Stock option compensation 5,878 5,126 2,190 1,870 6,918 Other 100 197 236 188 621 Net increase in trading securities (6,355) - (2983) - - Decrease in accounts receivable - trade 426 4,295 1,134 1,507 1,642 Decrease (increase) in accounts receivable - other 1,569 6,775 (105) 2,192 5,723 (Increase) in prepaid expenses (329) (632) (711) (714) (342) Decrease (Increase) in advances to suppliers 2,963 (311) 262 (286) (3,350) Increase in inventories (5,546) (3,796) (2,858) (1,179) (2,971) Increase (decrease) in accounts payable 1,251 (2,792) 1,760 (1,007) (3,287) Decrease in deferred income (1,304) (6,585) (386) (72) (7,856) -------- -------- -------- -------- ---------- Net cash provided by operating activities 11,094 10,944 3,278 5,408 9,478 -------- -------- -------- -------- ---------- Cash flows from investing activities: Excess of cash investment over equity share in subsidiary - 965 - - - Purchase of fixed assets and intangible assets (3,619) (5,166) (1,171) (1,569) (6,300) Purchase of fixed assets, intangible assets and goodwill in a business combination - - - - (16,660) Deposits 16 (247) 26 (3) (192) Proceeds from sales of marketable securities and short term investments 32,424 52,396 11,698 17,682 67,743 Proceeds from sales of fixed assets - 30 - - 61 Investments in marketable securities (13,218) (54,071) (1,010) (21,557) (61,986) -------- -------- -------- -------- ---------- Net cash provided by (used in) investing activities 15,603 (6,093) 9,543 (5,447) (17,334) -------- -------- -------- -------- ---------- Cash flows from financing activities: Principal payments on capital lease obligation (97) (91) (32) (6) (120) Proceeds from the issuance of ordinary Shares 50 252 50 56 252 Dividend distribution (15,799) - - - - Purchase of shares from a noncontrolling shareholder in a subsidiary (382) - - - 2,288 Issuance of shares to a noncontrolling shareholder in a subsidiary - 1,207 - - - -------- -------- -------- -------- ---------- Net cash (used in) provided by financing activities (16,228) 1,368 18 50 2,420 -------- -------- -------- -------- ---------- Effect of exchange rate changes on cash 33 258 122 (15) 30 -------- -------- -------- -------- ---------- Increase (decrease) in cash and cash Equivalents 10,502 6,477 12,961 (4) (5,406) Cash and cash equivalents at beginning of period 31,697 37,103 29,238 43,584 37,103 -------- -------- -------- -------- ---------- Cash and cash equivalents at end of period $ 42,199 $ 43,580 $ 42,199 $ 43,580 $ 31,697 ======== ======== ======== ======== ========== Supplementary cash flow information Income taxes paid $ 728 $ 194 $ 643 $ 72 $ 259 ======== ======== ======== ======== ========== Assets acquired under capital lease $ - $ 109 $ - $ - $ 109 ======== ======== ======== ======== ==========