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CONSOLIDATED STATEMENTS OF INCOME - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Revenues:      
Telematics services $ 182,944 $ 204,728 $ 181,357
Telematics products 62,683 74,604 71,978
Total revenues 245,627 279,332 253,335
Cost of revenues:      
Telematics services 81,365 90,158 70,329
Telematics products 48,747 58,656 55,678
Total cost of revenues 130,112 148,814 126,007
Gross profit 115,515 130,518 127,328
Research and development expenses 12,767 13,913 6,223
Selling and marketing expenses 11,014 12,778 11,340
General and administrative expenses 49,705 55,166 47,693
Impairment of goodwill (Note 10) 10,508 [1] 12,292 [2]
Impairment of intangible assets and other expenses (income), net (Note 9) 3,690 13,715 (306)
Operating income 27,831 22,654 62,378
Other income (expense), net (Note 15) (272) (26) 13,138
Financing income, net (Note 16) 1,480 576 717
Income before income tax 29,039 23,204 76,233
Income tax expenses (Note 17) (10,856) (12,234) (17,273)
Share in gains (losses) of affiliated companies, net (Note 5A) (842) (3,203) 4,219
Net income for the year 17,341 7,767 63,179
Less: Net income attributable to non-controlling interest (1,218) (878) (2,504)
Net income attributable to the Company $ 16,123 $ 6,889 $ 60,675
Basic and diluted earnings per share attributable to Company's stockholders $ 0.77 $ 0.33 $ 2.88
Basic and diluted weighted average number of shares outstanding 20,813 21,037 21,077
[1] As a result of the circumstances described in note 9(**) the company recorded on June 30, 2020, a goodwill impairment in the total amount of US$ 10.5 million in connection with two reporting unit (both units related to Road track operations, see Note 3). One reporting unit within the Telematics services and the other reporting unit within the Telematics product's segments. The impairment was based on valuation performed by the management using the assistance of a third-party appraiser in accordance with the income approach. The significant assumptions used for the assessment were 3.5 years of projected net cash flows, a discount rate of 17.5% and a long-term growth rate of 0.5%. As of December 31, 2020, management preformed additional quantitative analysis and determined that no further impairment is required to be recognized.
[2] As a result of the circumstances described in note 9(*) the company recorded on December 31, 2019, a goodwill impairment in the total amount of US$ 12.3 million in connection with two reporting units (both units related to Road track operations, see Note 3). One reporting unit within the Telematics services and the other reporting unit within the Telematics product's segments. The impairment was based on valuation performed by the management using the assistance of a third party appraiser in accordance with the income approach. The significant assumptions used for the assessment were discount rate of 14.9% and a long-term growth rate of 0.5%.