SOURCE: Given Imaging

Given Imaging

August 07, 2012 16:30 ET

Given Imaging Reports Second Quarter 2012 Results

Second Quarter 2012 Revenues $44.5 Million vs. $44.8 in Second Quarter 2011; Second Quarter Americas Revenues Increase 6%; Excluding Adverse Effect of Foreign Currency Translation, Second Quarter Revenues $46 Million, 3% Over Second Quarter 2011; Second Quarter 2012 Non-GAAP Gross Margin 78.2% vs. 76.0% in Second Quarter 2011; Second Quarter GAAP and Non-GAAP EPS Increase 58% and 20% to $0.10 and $0.16, Respectively; Company Provides PillCam COLON Update; Company Updates 2012 Financial Guidance

YOQNEAM, ISRAEL--(Marketwire - Aug 7, 2012) - Given Imaging Ltd. (NASDAQ: GIVN) today announced financial results for the second quarter ended June 30, 2012. 

Revenues were $44.5 million in the second quarter of 2012, compared to $44.8 million in the second quarter of 2011. Excluding the negative impact of foreign currency translation, second quarter 2012 revenues were $46 million, a three percent increase compared to the same period last year. 

Gross margin on a GAAP basis in the second quarter of 2012 was 76.6 percent, compared to 75.5 percent in the second quarter of 2011. Gross margin on a non-GAAP basis in the second quarter of 2012 was 78.2 percent, compared to 76.0 percent in the second quarter of 2011. The increase in non-GAAP gross margin is attributable to higher production volume, and a more favorable product and geographic mix.

On a GAAP basis, operating profit was $3.4 million, compared to $2.5 million in the second quarter of 2011. Non-GAAP operating profit was $5.5 million, compared to $4.8 million in the second quarter of 2011. On a GAAP basis, net income for the second quarter of 2012 increased 59 percent to $3.0 million, or $0.10 per share, compared to $1.9 million, or $0.06 per share, in the same quarter of last year. On a non-GAAP basis, net income for the second quarter of 2012 increased 21 percent to $4.9 million, or $0.16 per share on a fully diluted basis, compared to $4.1 million, or $0.13 per share on a fully diluted basis, in the second quarter of 2011.

A reconciliation of GAAP results to non-GAAP results is attached.

Cash and cash equivalents, short-term investments and marketable securities on June 30, 2012 totaled $111.3 million.

"We are pleased that ongoing initiatives to maximize efficiencies resulted in a solid increase in second quarter GAAP and Non-GAAP earnings per share. Our top line revenue of $44.5 million reflects a six percent increase in revenues from the Americas region. However, revenue growth was offset by a challenging southern European market, the weakness of the Euro, as well as lower than anticipated revenue growth in the APAC region," said Homi Shamir, President and CEO, Given Imaging.

Second Quarter 2012 Revenue Analysis

Revenues in the Americas region in the second quarter of 2012 increased by six percent to $28.4 million from $26.9 million in the same period last year. Revenues in the EMEA region decreased by 9 percent to $10.7 million compared to $11.8 million in the same period last year due to lower PillCam sales in the southern European countries and the weakness of the Euro. Excluding the negative impact of foreign currency translation, revenues in the EMEA region increased by $1.4 million, or three percent compared to the same period last year. APAC revenues decreased by 10 percent to $5.4 million, compared to $6.0 million in the same period in 2011.

Worldwide PillCam SB sales grew by one percent to 59,200 capsules in the second quarter of 2012, compared to 58,700 capsules in the same period last year. PillCam SB sales in the Americas region also increased by one percent to approximately 36,500 capsules, compared to 36,200 capsules in the second quarter last year. PillCam SB sales in the EMEA region increased by two percent to 15,500 capsules, compared to 15,200 capsules in the second quarter of 2011, while PillCam SB sales in the APAC region decreased by three percent to 7,100 capsules, compared to 7,300 capsules in the same period in 2011.

Worldwide sales of functional GI diagnostics products including the Bravo pH Monitoring System, Digitrapper pH-Z and Manoscan increased by 13 percent to $12.6 million in the second quarter of 2012 compared to $11.2 million in the same period last year. In the Americas region, functional diagnostics products revenue increased by 13% in the second quarter of 2012 to $9.9 million compared to $8.8 million in the same period last year. Functional GI diagnostics revenue in the EMEA region decreased by 11 percent to $1.6 million, while revenue in the APAC region increased by 58 percent to $1 million.

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

Six Month Financial Results

For the six month period ended June 30, 2012, revenues increased by two percent to $86.3 million compared to $84.8 million in the same period last year. Revenues in the Americas region in the first half of 2012 increased by eight percent to $55.2 million from $51.0 million in the same period last year. Revenues in the EMEA region decreased by seven percent to $21.4 million compared to $23.0 million in the same period last year due to lower PillCam sales in the southern European countries and the weakness of the Euro. EMEA revenues in the first half of 2012 increased by one percent compared to the same period last year, excluding the $1.9 million negative impact of the weaker Euro. APAC revenues decreased by nine percent to $9.7 million, compared to $10.7 million in the same period in 2011. 

Worldwide PillCam SB sales increased by two percent to 115,600 capsules in the first half of 2012, compared to 113,000 capsules in the same period last year. PillCam SB sales in the Americas region were approximately 70,200 capsules, a one percent increase compared to 69,600 capsules that were sold in the first half of 2011. PillCam SB sales in the EMEA region increased by one percent to 30,600 capsules, compared to 30,200 capsules in the first half of 2011, while PillCam SB sales in the APAC region increased by 12 percent to 14,800 capsules, compared to 13,200 capsules in the same period in 2011.

Worldwide sales of Given Imaging's functional GI diagnostics products increased by 19 percent to $25.2 million in the first half of 2012 compared to $21.1 million in the same period last year. In the Americas region, functional GI diagnostics product revenue increased by 24% in the first half of 2012 to $19.9 million compared to $16.1 million in the same period last year. Functional diagnostics revenue in the EMEA region were $3.6 million, similar to the first half of 2011, while revenue in the APAC region increased by 21 percent to $1.6 million.

Recent Developments

  • PillCam COLON 2 Clinical Trials Update
    Given Imaging has completed the 885-patient PillCam COLON 2 clinical trial for submission to the U.S. Food and Drug Administration (FDA). In the Company's view, its analysis of the data from the PillCam COLON 2 clinical trial in the U.S. support an FDA submission for visualization of the colon in patients who are unable to undergo colonoscopy or in cases of incomplete colonoscopies, rather than a submission for general screening.

    The Company plans to submit this product for FDA clearance in the fourth quarter of this year, following a meeting it plans to have with the FDA in the near future. Feedback from FDA may impact our planned submission.

    In Japan, the Company has completed the 72-patient PillCam COLON trial for submission to PMDA, the Japanese regulatory authority. The trial has been designed to evaluate the use of PillCam COLON for visualization of the gastrointestinal mucosa for diagnosis of colonic pathologies. Based on a preliminary review of the trial data, the Company believes the results support submission for the intended indication and plans to submit the results to PMDA in the fourth quarter of this year.

    The Company believes that submission for the proposed indications in the U.S. and Japan may provide a significant opportunity for Given Imaging, with an addressable market which is estimated by the Company to be $1.7 billion in our main markets, comprising 3.3 million procedures annually, one-third of which are in the U.S. and one-third in Japan.

    The Company continues to explore ways to expand the use of the PillCam COLON 2 capsule for a screening indication in the U.S.

    Given Imaging believes that it is on target toward achieving its goal of at least $450 million in annual revenues by 2016, which includes revenue projections for use of PillCam COLON for visualization of the colon as described above.

  • PillCam SB Expanded Indications Reimbursement
    Japan's Ministry of Health, Labor and Welfare (MHLW) issued reimbursement codes for the PillCam Patency Capsule for use with PillCam SB and for the PillCam SB video capsule for expanded indications for those patients with known or suspected small bowel disease, including the visualization and diagnosis of Crohn's disease. Reimbursement is effective for the entire 105-million adult population as of July 1, 2012.

  • Korea Intellectual Property Tribunal Upholds Given Imaging Patents
    In July, the Intellectual Property Tribunal of the Korean Intellectual Property Office (KIPO) re-affirmed the validity of two Given Imaging Korean patents asserted against Intromedic Co. Ltd. in Seoul's Central District Court. Intromedic has appealed this decision. In the meantime, the infringement proceedings that have been stayed pending a resolution in the invalidity proceedings before the KIPO have been resumed. Rulings in these proceedings are expected by the end of this year.

2012 Guidance Update

As a result of ongoing economic weakness in Europe, associated with the weak Euro and the lower than forecast revenue in the Asia Pacific region in the first half of 2012, the Company is lowering its revenue guidance for fiscal year 2012 from between $190 million and $200 million to between $185 and $190 million. Despite lowering top-line guidance, the Company believes that initiatives to maximize profitability will enable the Company to achieve its earnings per share guidance of between $0.45 and $0.55 on a GAAP basis, and between $0.70 and $0.80 on a non-GAAP basis. However, the Company expects that 2012 earnings per share will be closer to the lower range of the guidance.

Conference Call / Webcast Information

Given Imaging will host a conference call on Wednesday, August 8, 2012 at 9:00am ET, 4:00pm Israel time to discuss second quarter 2012 financial results. To participate in the teleconference, please dial the following numbers fifteen minutes before the call is scheduled to begin: U.S. and Canada, 1-877-604-9665; Israel, 1-80-925-8243. Callers in other countries should dial 719-325-4838. 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 August 22, 2012, by dialing 888-203-1112. Callers outside of the U.S. should dial 719-457-0820. The replay participant code is 1564690.

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 principles (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.

About Given Imaging Ltd.
Since pioneering the field of capsule endoscopy in 2001, Given Imaging has become a world leader in GI medical devices, offering health care providers a range of innovative options for visualizing, diagnosing and monitoring the digestive system. The company offers a broad product portfolio including PillCam® video capsules for the small bowel, esophagus and colon, industry-leading ManoScan high-resolution manometry and Bravo® wireless and Digitrapper® pH and impedance products. Given Imaging is committed to delivering breakthrough innovations to the GI community and supporting its ongoing clinical needs. Given Imaging's headquarters are located in Yoqneam, Israel, with operating subsidiaries in the United States, Germany, France, Japan, Australia, Vietnam and Hong Kong. For more information, please visit www.givenimaging.com.

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 successfully complete any necessary or required clinical studies with our products, (3) our ability to receive regulatory clearance or approval to market our products or changes in regulatory environment, (4) our success in implementing our sales, marketing and manufacturing plans, (5) the level of adoption of our products by medical practitioners, (6) the emergence of other products that may make our products obsolete, (7) lack of an appropriate bowel preparation materials to be used with our PillCam COLON capsule, (8) protection and validity of patents and other intellectual property rights, (9) the impact of currency exchange rates, (10) the effect of competition by other companies, (11) the outcome of significant litigation, (12) our ability to obtain reimbursement for our product from government and commercial payors, (13) quarterly variations in operating results, (14) the possibility of armed conflict or civil or military unrest in Israel, (15) the impact of global economic conditions, (16) our ability to successfully integrate acquired businesses, (17) changes and reforms in applicable healthcare laws and regulations, (18) quality issues and adverse events related to our products, such as capsule retention, aspiration and failure to attach or detach, bleeding or perforation that could require us to recall products and impact our sales and net income, and (19) 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, 2011. 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.

Given Imaging Ltd. and its Consolidated Subsidiaries
Excluded Items
For the Three Months Ended June 30, 2011 and 2012
(Unaudited, dollars in thousands)
 
    Gross
Profit
  Research
And
Development
  Selling
And
Marketing
  General
And
Admin
  Tax
Expense
(Benefit)
 
 
  Total
Three month period ended June 30, 2012                                      
Compensation expenses   $ -   $ 192   $ 509   $ 856   $ -     $ 1,557
Sierra PPA     237     222     81     -     (217 )     323
Total   $ 237   $ 414   $ 590   $ 856   $ (217 )   $ 1,880
Three month period ended June 30, 2011                                      
Compensation expenses   $ -   $ 160   $ 499   $ 1,306   $ -     $ 1,965
Sierra PPA     237     -     81     -     (128 )     190
Total   $ 237   $ 160   $ 580   $ 1,306   $ (128 )   $ 2,155
                           
                           
Given Imaging Ltd. and its Consolidated Subsidiaries
Excluded Items
For the Six Months Ended June 30, 2011 and 2012
(Unaudited, dollars in thousands)
                           
   
Gross
Profit
  Research
And
Development
  Selling
And
Marketing
  General
And
Admin
  Tax
Expense
(Benefit)
   

Total
Six month period ended June 30, 2012                                      
Compensation expenses   $ -   $ 350   $ 738   $ 1,898   $ -     $ 2,986
Sierra PPA     474     222     162     -     (344 )     514
Total   $ 474   $ 572   $ 900   $ 1,898   $ (344 )   $ 3,500
Six month period ended June 30, 2011                                      
Compensation expenses   $ -   $ 342   $ 1,060   $ 2,700   $ -     $ 4,102
Tax (benefit)     474     -     162     -     (255 )     381
Total   $ 474   $ 342   $ 1,222   $ 2,700   $ (255 )   $ 4,483
                                       
 
Given Imaging Ltd. and its Consolidated Subsidiaries
Reconciliation of GAAP results to non-GAAP results
For the three months ended June 30, 2011 and 2012
Condensed, in thousands except share and per share data
 
   

GAAP
  Q2/12
Specified
Items (*)
   
Non
GAAP
 

GAAP
  Q2/11
Specified
Items (*)
   
Non
GAAP
Gross profit   $ 34,555   $ 237     $ 34,792   $ 33,788   $ 237     $ 34,025
Research and development, net     6,479     (414 )     6,065     5,619     (160 )     5,459
Sales and marketing     19,073     (590 )     18,483     19,869     (580 )     19,289
General and administrative     5,568     (856 )     4,712     5,729     (1,306 )     4,423
Income tax expense     360     217       577     716     128       844
Net income attributable to shareholders   $ 3,043   $ 1,880     $ 4,923   $ 1,917   $ 2,155     $ 4,072
Diluted EPS attributable to shareholders   $ 0.10   $ 0.06     $ 0.15606   $ 0.06   $ 0.07     $ 0.13006
                                         
(*)See specified items
 
 
Given Imaging Ltd. and its Consolidated Subsidiaries
Reconciliation of GAAP results to non-GAAP results
For the three months ended June 30, 2011 and 2012
Condensed, in thousands except share and per share data
                             
   

GAAP
  YTD 12
Specified
Items (*)
   
Non
GAAP
 

GAAP
  YTD 11
Specified
Items (*)
   
Non
GAAP
Gross profit   $ 66,201   $ 474     $ 66,675   $ 64,490   $ 474     $ 64,964
Research and development, net     13,223     (572 )     12,651     11,080     (342 )     10,738
Sales and marketing     37,836     (900 )     36,936     37,118     (1,222 )     35,896
General and administrative     11,205     (1,898 )     9,307     12,251     (2,700 )     9,551
Income tax expense     984     344       1,328     1,308     255       1,563
Net income attributable to shareholders   $ 3,244   $ 3,500     $ 6,744   $ 2,594   $ 4,483     $ 7,077
Diluted EPS attributable to shareholders   $ 0.10   $ 0.11     $ 0.21   $ 0.08   $ 0.14     $ 0.22
                                         
(*)See specified items
 
 
Given Imaging Ltd. and its Consolidated Subsidiaries
Interim Consolidated Balance Sheets
In thousands except share data
(Unaudited)
 
    June 30   December 31
    2012   2011
             
Assets            
             
Current assets            
Cash and cash equivalents   $ 27,091   $ 24,285
Short-term investments     44,549     64,762
Accounts receivable:            
  Trade     29,064     32,406
  Other     5,413     5,259
Inventories     24,329     22,921
Prepaid expenses     2,253     1,373
Deferred tax assets     3,389     1,538
Advances to suppliers     1,799     1,207
             
Total current assets     137,887     153,751
             
             
Assets held for employee severance payments     7,033     6,854
             
Long-term investments     39,656     16,003
             
Non-current Inventory     4,202     4,926
             
Other long term assets     1,030     1,266
             
Fixed assets, at cost, less accumulated depreciation     12,628     12,301
             
Intangible assets, less accumulated amortization     27,828     29,075
             
Goodwill     24,089     24,089
             
             
Total Assets   $ 254,353   $ 248,265
             
   
   
Given Imaging Ltd. and its Consolidated Subsidiaries  
Interim Consolidated Balance Sheets  
In thousands except share data  
(Unaudited)  
   
    June 30     December 31  
    2012     2011  
                 
Liabilities and equity                
                 
Current liabilities                
                 
Current installments of obligation under capital lease   $ 62     $ 139  
Accounts payable:                
  Trade     8,413       8,081  
  Other     25,841       28,397  
Deferred income     497       521  
Total current liabilities     34,813       37,138  
                 
Long-term liabilities                
Obligation under capital lease, net     108       120  
Liability in respect of employees' severance payments     7,795       7,720  
Deferred tax liabilities     5,018       5,362  
Total long-term liabilities     12,921       13,202  
Total liabilities     47,734       50,340  
                 
Equity                
Shareholders' equity                
Ordinary Shares, NIS 0.05 par value each (90,000,000 shares authorized; 30,927,116 and 30,448,838 shares issued and fully paid as of June 30, 2012 and December 31, 2011, respectively)    


366
     


359
 
Additional paid-in capital     214,742       208,838  
Capital reserve     1,591       2,051  
Accumulated other comprehensive loss     (595 )     (885 )
Accumulated deficit     (9,485 )     (12,729 )
Total shareholders' equity     206,619       197,634  
Non-controlling interest     -       291  
Total Equity     206,619       197,925  
                 
                 
Total liabilities and equity   $ 254,353     $ 248,265  
   
   
Given Imaging Ltd. and its Consolidated Subsidiaries  
Interim Consolidated Statements of Operations  
In thousands except share and per share data  
(Unaudited)  
   
    Six-month period ended
June 30
  Three-month period ended
June 30
  Year ended
December 31
 
    2012   2011   2012   2011   2011  
                                 
Revenues   $ 86,351   $ 84,742   $ 44,512   $ 44,773   $ 177,955  
                                 
Cost of revenues     (20,372 )   (20,252 )   (10,179 )   (10,985 )   (41,466 )
                                 
Gross profit     65,979     64,490     34,333     33,788     136,489  
                                 
Operating expenses                                
Research and development, gross     (14,130 )   (11,615 )   (6,974 )   (5,842 )   (26,129 )
                                 
Government grants     785     535     373     223     1,113  
Research and development, net     (13,345 )   (11,080 )   (6,601 )   (5,619 )   (25,016 )
                                 
Sales and marketing     (37,492 )   (37,118 )   (18,729 )   (19,869 )   (75,014 )
General and administrative     (11,205 )   (12,251 )   (5,568 )   (5,729 )   (23,078 )
Other, net     (170 )   (76 )   (69 )   (59 )   (397 )
                                 
Total operating expenses     (62,212 )   (60,525 )   (30,967 )   (31,276 )   (123,505 )
                                 
Operating income     3,767     3,965     3,366     2,512     12,984  
Financing income, net     368     22     37     118     1,343  
                                 
Income before taxes on income    
4,135
   
3,987
   
3,403
   
2,630
   
14,327
 
Income tax expense     (984 )   (1,308 )   (360 )   (716 )   (2,158 )
                                 
Net income     3,151     2,679     3,043     1,914     12,169  
                                 
Net loss (income) attributable to non-controlling interest    
93
   
(85
)  
-
   
3
   
(191
)
                                 
Net income attributable to shareholders   $
3,244
  $
2,594
  $
3,043
  $
1,917
  $
11,978
 
                                 
Net change in respect of available for sale securities    
290
   
(108
)  
(140
)  
(107
)  
(980
)
Total comprehensive income attributable to shareholders   $
3,534
  $
2,486
  $
2,903
  $
1,810
  $
10,998
 
                                 
Total comprehensive income (loss) attributable to non-controlling interest    
(93
)  
85
   
-
   
(3
)  
191
 
                                 
Total comprehensive income   $ 3,441   $ 2,571   $ 2,903   $ 1,807   $ 11,189  
                                 
Earnings per share                                
                                 
Basic Earnings attributable to shareholders per Ordinary Share   $
0.11
  $
0.09
  $
0.10
  $
0.06
  $
0.40
 
                                 
Diluted Earnings attributable to shareholders per Ordinary Share   $ 0.10   $ 0.08   $ 0.10   $ 0.06   $ 0.39  
                                 
Weighted average number of Ordinary Shares used to compute basic Earnings per Ordinary share     30,696,679     30,009,592     30,814,268     30,126,138     30,212,787  
                                 
Weighted average number of Ordinary Shares used to compute diluted Earnings per Ordinary share     31,511,329     31,062,476     31,544,729     31,309,679     31,089,499  
   
   
Given Imaging Ltd. and its Consolidated Subsidiaries  
Consolidated Statements of Cash Flows  
In thousands  
(Unaudited)  
   
    Six-month period ended
June 30
    Three-month period ended
June 30
    Year ended
December 31
 
    2012     2011     2012     2011     2011  
Cash flows from operating activities:                                        
Net income   $ 3,151     $ 2,679     $ 3,043     $ 1,914     $ 12,169  
                                         
Adjustments required to reconcile net income to net cash provided by operating activities:                                        
Depreciation and amortization     4,211       4,070       2,215       2,072       8,296  
Deferred tax assets     (1,851 )     (262 )     (971 )     (236 )     100  
Deferred tax liabilities     (344 )     (255 )     (217 )     (128 )     (509 )
Stock based compensation     2,986       4,102       1,557       1,965       7,363  
Loss from disposal of long term assets     176       100       74       73       397  
Other     (46 )     31       4       41       158  
Decrease (increase) in accounts receivable - trade     3,192       (170 )     372       (1,416 )     (4,544 )
Decrease (increase) in accounts receivable - other     469       1,336       (886 )     685       (968 )
Decrease (increase) in prepaid expenses     (880 )     (239 )     (28 )     482       212  
Increase in advances to suppliers     (592 )     (756 )     (420 )     (824 )     (766 )
Increase in inventories     (684 )     (2,102 )     (212 )     (218 )     (3,145 )
Increase (decrease) in accounts payable     (2,181 )     (4,400 )     2,414       912       1,433  
Decrease in deferred income     (24 )     (152 )     (36 )     (216 )     (267 )
Net cash provided by operating activities     7,583       3,982       6,909       5,106       19,929  
                                         
Cash flows from investing activities:                                        
Purchase of fixed assets and intangible assets     (3,317 )     (8,058 )     (1,837 )     (759 )     (10,551 )
Other long term assets, net     (610 )     (38 )     (11 )     (10 )     (39 )
Changes in short term deposits, net     16,419       720       (4,198 )     (4,352 )     (20,176 )
Proceeds from sales and maturity of marketable securities     4,050       13,212       2,050       4,240       11,141  
Investments in marketable securities     (23,460 )     (14,910 )     (11,138 )     (1,762 )     (16,910 )
Net cash used in investing activities     (6,918 )     (9,074 )     (15,134 )     (2,643 )     (36,535 )
                                         
   
   
Given Imaging Ltd. and its Consolidated Subsidiaries  
Consolidated Statements of Cash Flows  
In thousands  
(Unaudited)  
   
    Six-month period ended
June 30
    Three-month period ended
June 30
    Year ended December 31
 
    2012     2011     2012     2011     2011  
                                         
Cash flows from financing activities:                                        
Principal payments on capital lease obligation, net     (83 )     (82 )     (42 )     (41 )     (168 )
Proceeds from the issuance of Ordinary Shares     2,925       5,281       1,588       3,432       6,585  
                                         
Purchase of shares from a non-controlling shareholder in a subsidiary     (658 )     -       -       -       -  
Net cash provided by financing activities     2,184       5,199       1,546       3,391       6,417  
                                         
Effect of exchange rate changes on cash and cash equivalents     (43 )     90       (89 )     40       (145 )
                                         
Increase (decrease) in cash and cash equivalents     2,806       197       (6,768 )     5,894       (10,334 )
Cash and cash equivalents at beginning of period     24,285       34,619       33,859       28,922       34,619  
                                         
Cash and cash equivalents at end of period   $ 27,091     $ 34,816     $ 27,091     $ 34,816     $ 24,285  
                                         
Supplementary cash flow information                                        
Income taxes paid   $ 1,157     $ 1,095     $ 1,035     $ 1,045     $ 2,179  

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