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Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2013

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

The following table summarizes information regarding stock options as at December 31, 2013:

	Options outstanding				Options exercisable
			Weighted average				Weighted average
			remaining				remaining
Exercise price	Number		contractual life		Number		contractual life
US$	of options		(in years)		of options		(in years)

18.82		42,500		4.97		42,500		4.97
15.28		230,250		6.70		-		-

		272,750				42,500

Stock Option Activity

The stock option activity under the abovementioned plans is as follows:

						Weighted
				Weighted		average
	Number			average		grant date
	of options			exercise price		fair value
				US$		US$

Balance at January 1, 2011		305,825

Exercised		(45,400	)		3.62		1.75
Forfeited		(3,000	)		16.32		7.54

Balance at December 31, 2011		257,425

Granted		240,000			15.28		6.54
Exercised		(82,338	)		3.35		1.81
Forfeited		(2,000	)		15.28		6.54

Balance at December 31, 2012		413,087

Exercised		(132,587	)		14.28		6.61
Forfeited		(7,750	)		15.28		6.54

Balance at December 31, 2013		272,750
Exercisable at December 31, 2013		42,500

Summary of Allocation of the Stock-Based Compensation Expenses

During 2011, 2012 and 2013, the Company recorded share-based compensation expenses. The following summarizes the allocation of the stock-based compensation expenses:

	Year ended December 31
	2011		2012		2013
	US$ thousands		US$ thousands		US$ thousands

Cost of sales		24		46		103
Research and development costs		96		130		193
Selling and marketing expenses		134		159		177
General and administrative expenses		183		209		195

		437		544		668

$3.82 [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Fair Value Assumptions

The Company recognizes compensation expenses on these options based on estimated grant date fair value using the Monte Carlo option-pricing model with the following assumptions:

Average Risk-free interest rate (a)	3.73%
Expected dividend yield	0.0%
Average expected volatility (b)	112.42%
Termination rate	11%
Suboptimal rate (c)	3.45

	(a)	Risk-free interest rate represents risk free US$ zero-coupon US Government Bonds at time of grant.
	(b)	Expected average volatility represents a weighted average standard deviation rate for the price of the Company's ordinary shares on the NASDAQ National Market.
	(c)	Suboptimal rate represents the multiple of the increase in the market share price on the day of grant of the option which, should it come to pass, will lead to exercise of the option by the employee. It is the average suboptimal rate of the Company and similar companies.

$18.82 [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Fair Value Assumptions

The Company recognizes compensation expenses on these options based on estimated grant date fair value using the Binomial option-pricing model with the following assumptions:

Average Risk-free interest rate (a)	3.00%
Expected dividend yield	0.0%
Average expected volatility (b)	82.64%
Termination rate	9%
Suboptimal rate (c)	3.45

	(a)	Risk-free interest rate represents risk free US$ zero-coupon US Government Bonds at time of grant.
	(b)	Expected average volatility represents a weighted average standard deviation rate for the price of the Company's ordinary shares on the NASDAQ National Market.
	(c)	Suboptimal rate represents the multiple of the increase in the market share price on the day of grant of the option which, should it come to pass, will lead to exercise of the option by the employee. It is the average suboptimal rate of the Company and similar companies.

$15.28 [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Fair Value Assumptions

The Company recognizes compensation expenses on these options based on estimated grant date fair value using the Binomial option-pricing model with the following assumptions:

Average Risk-free interest rate (a)	1.33 %
Expected dividend yield	0.0%
Average expected volatility (b)	64.71 %
Termination rate	9%
Suboptimal rate (c)	3.2

	(a)	Risk-free interest rate represents risk free US$ zero-coupon US Government Bonds at time of grant.
	(b)	Expected average volatility represents a weighted average standard deviation rate for the price of the Company's ordinary shares on the NASDAQ National Market.
	(c)	Suboptimal rate represents the multiple of the increase in the market share price on the day of grant of the option which, should it come to pass, will lead to exercise of the option by the employee. It is the average suboptimal rate of the Company and similar companies.