Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2016shares | |
Document Information [Line Items] | |
Entity Registrant Name | AUDIOCODES LTD |
Entity Central Index Key | 1,086,434 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Accelerated Filer |
Trading Symbol | AUDC |
Entity Common Stock, Shares Outstanding | 32,411,296 |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2016 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2,016 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 24,344 | $ 18,908 |
Short-term and restricted bank deposits | 3,401 | 5,661 |
Short-term marketable securities and accrued interest | 6,778 | 2,480 |
Trade receivables (net of allowance for doubtful accounts of $2,732 and $2,573 at December 31, 2015 and 2016, respectively) | 25,448 | 25,622 |
Other receivables and prepaid expenses | 3,377 | 4,405 |
Inventories | 16,333 | 16,778 |
Total current assets | 79,681 | 73,854 |
LONG-TERM ASSETS: | ||
Long-term marketable securities | 29,540 | 50,294 |
Long-term restricted bank deposits and accrued interest | 5,407 | 3,034 |
Deferred income tax assets | 11,607 | 2,216 |
Severance pay funds | 17,820 | 16,086 |
Total long-term assets | 64,374 | 71,630 |
PROPERTY AND EQUIPMENT, NET | 3,867 | 4,090 |
INTANGIBLE ASSETS, NET | 2,832 | 4,024 |
GOODWILL | 36,222 | 36,222 |
Total assets | 186,976 | 189,820 |
CURRENT LIABILITIES: | ||
Current maturities of long-term bank loans | 3,451 | 5,338 |
Trade payables | 7,710 | 7,304 |
Other payables and accrued expenses | 18,618 | 17,951 |
Deferred revenues | 14,951 | 12,885 |
Total current liabilities | 44,730 | 43,478 |
LONG-TERM LIABILITIES: | ||
Accrued severance pay | 18,941 | 16,377 |
Long-term bank loans, net of current maturities | 8,493 | 6,032 |
Deferred revenues and other liabilities | 6,153 | 6,480 |
Total long-term liabilities | 33,587 | 28,889 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
SHAREHOLDERS' EQUITY: | ||
Ordinary shares of NIS 0.01 par value - Authorized: 100,000,000 shares at December 31, 2015 and 2016; Issued: 55,009,730 and 55,777,786 shares at December 31, 2015 and 2016, respectively; Outstanding: 37,841,603 and 32,411,296 shares at December 31, 2015 and 2016, respectively | 101 | 112 |
Additional paid-in capital | 243,082 | 238,525 |
Treasury stock at cost- 17,168,127 and 23,366,490 shares at December 31, 2015 and 2016, respectively | (89,923) | (60,542) |
Accumulated other comprehensive loss | (203) | (137) |
Accumulated deficit | (44,398) | (60,505) |
Total shareholders' equity | 108,659 | 117,453 |
Total liabilities and shareholders' equity | $ 186,976 | $ 189,820 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands | Dec. 31, 2016USD ($)shares | Dec. 31, 2016₪ / shares | Dec. 31, 2015USD ($)shares | Dec. 31, 2015₪ / shares |
Allowance for doubtful accounts receivable (in dollars) | $ | $ 2,573 | $ 2,732 | ||
Ordinary shares, par value (in NIS per share) | ₪ / shares | ₪ 0.01 | ₪ 0.01 | ||
Ordinary shares, shares authorized | 100,000,000 | 100,000,000 | ||
Ordinary shares, shares issued | 55,777,786 | 55,009,730 | ||
Ordinary shares, shares outstanding | 32,411,296 | 37,841,603 | ||
Treasury stock, shares | 23,366,490 | 17,168,127 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||
Products | $ 102,279 | $ 101,990 | $ 118,561 |
Services | 43,292 | 37,769 | 33,018 |
Total revenues | 145,571 | 139,759 | 151,579 |
Cost of revenues: | |||
Products | 46,935 | 47,227 | 54,349 |
Services | 10,295 | 9,744 | 8,243 |
Total cost of revenues | 57,230 | 56,971 | 62,592 |
Gross profit | 88,341 | 82,788 | 88,987 |
Operating expenses: | |||
Research and development, net | 29,139 | 27,996 | 32,275 |
Selling and marketing | 45,084 | 43,360 | 45,534 |
General and administrative | 6,364 | 8,726 | 7,677 |
Total operating expenses | 80,587 | 80,082 | 85,486 |
Operating income | 7,754 | 2,706 | 3,501 |
Financial income (expenses), net | (160) | 442 | (196) |
Income before taxes on income | 7,594 | 3,148 | 3,305 |
Income tax benefit (expense), net | 8,644 | (2,782) | (3,391) |
Net income (loss) | $ 16,238 | $ 366 | $ (86) |
Earnings (loss) per share | |||
Basic (in dollars per share) | $ 0.46 | $ 0.01 | $ 0 |
Diluted (in dollars per share) | $ 0.45 | $ 0.01 | $ 0 |
Weighted average number of shares used in computations of earnings (loss) per share: | |||
Basic (in shares) | 35,173,562 | 40,178,292 | 42,285,919 |
Diluted (in shares) | 35,778,854 | 40,564,945 | 42,285,919 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net income (loss) | $ 16,238 | $ 366 | $ (86) |
Change in unrealized gains (losses) on marketable securities available-for-sale: | |||
Gain (loss) on marketable securities recognized in OCI | 376 | (35) | (388) |
Loss (gain) on marketable securities recognized in income | (27) | 13 | 0 |
Other comprehensive income (loss), related to unrealized loss on marketable securities available-for-sale | 349 | (22) | (388) |
Change in unrealized gains (losses) on cash flow hedges: | |||
Gain (loss) on derivatives recognized in OCI | 608 | 374 | (367) |
Loss (gain) on derivatives (effective portion) recognized in income | (1,023) | (228) | 494 |
Other comprehensive income (loss), related to unrealized gains (loss) on cash flow hedges | (415) | 146 | 127 |
Other comprehensive income (loss) | (66) | 124 | (261) |
Total comprehensive income (loss) | $ 16,172 | $ 490 | $ (347) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Share capital [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Defecit [Member] | |
Balance at Dec. 31, 2013 | $ 104,809 | $ 114 | $ 201,248 | $ (35,768) | $ 0 | $ (60,785) | |
Purchase of treasury stock | (5,267) | (3) | 0 | (5,264) | 0 | 0 | |
Issuance of ordinary shares | 29,744 | 12 | 29,732 | 0 | 0 | 0 | |
Issuance of shares upon exercise of options and warrants | 2,236 | 2 | 2,234 | 0 | 0 | 0 | |
Stock-based compensation related to options and RSUs granted to employees and non-employees | 2,546 | 0 | 2,546 | 0 | 0 | 0 | |
Other comprehensive income (loss) | (261) | 0 | 0 | 0 | (261) | 0 | |
Net income (loss) | (86) | 0 | 0 | 0 | 0 | (86) | |
Balance at Dec. 31, 2014 | 133,721 | 125 | 235,760 | (41,032) | (261) | (60,871) | |
Purchase of treasury stock | (19,523) | (13) | 0 | (19,510) | 0 | 0 | |
Issuance of shares upon exercise of options and warrants | 392 | 0 | [1] | 392 | 0 | 0 | 0 |
Stock-based compensation related to options and RSUs granted to employees and non-employees | 2,373 | 0 | 2,373 | 0 | 0 | 0 | |
Other comprehensive income (loss) | 124 | 0 | 0 | 0 | 124 | 0 | |
Net income (loss) | 366 | 0 | 0 | 0 | 0 | 366 | |
Balance at Dec. 31, 2015 | 117,453 | 112 | 238,525 | (60,542) | (137) | (60,505) | |
Purchase of treasury stock | (29,394) | (13) | 0 | (29,381) | 0 | 0 | |
Issuance of shares upon exercise of options and warrants | 2,014 | 2 | 2,012 | 0 | 0 | 0 | |
Cumulative effect adjustment resulting from adoption of ASU 2016-09 (Note 2s) | 0 | 0 | 131 | 0 | 0 | (131) | |
Stock-based compensation related to options and RSUs granted to employees and non-employees | 2,414 | 0 | 2,414 | 0 | 0 | 0 | |
Other comprehensive income (loss) | (66) | 0 | 0 | 0 | (66) | 0 | |
Net income (loss) | 16,238 | 0 | 0 | 0 | 0 | 16,238 | |
Balance at Dec. 31, 2016 | $ 108,659 | $ 101 | $ 243,082 | $ (89,923) | $ (203) | $ (44,398) | |
[1] | Representing amount lower the $1. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 16,238 | $ 366 | $ (86) |
Adjustments required to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 2,892 | 2,963 | 3,230 |
Amortization of marketable securities premiums and accretion of discounts, net | 1,000 | 1,094 | 820 |
Realized loss (gain) on sale of marketable securities, net | (27) | 13 | 0 |
Stock-based compensation related to options and RSUs granted to employees and non-employees | 2,414 | 2,373 | 2,546 |
Decrease in accrued interest on loans, marketable securities, convertible notes, and bank deposits | 114 | 56 | 152 |
Decrease (increase) in deferred income tax assets | (9,475) | 1,976 | 2,940 |
Decrease (increase) in trade receivables, net | 174 | 5,575 | (4,625) |
Decrease (increase) in other receivables and prepaid expenses | 732 | 1,777 | (2,249) |
Decrease (increase) in inventories | 445 | (2,013) | (925) |
Increase (decrease) in trade payables | 406 | (2,987) | 2,896 |
Increase (decrease) in other payables and accrued expenses and other liabilities | (596) | 2,394 | (2,114) |
Increase in deferred revenues | 3,195 | 3,758 | 3,595 |
Increase (decrease) in accrued severance pay, net | 830 | 218 | (223) |
Net cash provided by operating activities | 18,342 | 17,563 | 5,957 |
Cash flows from investing activities: | |||
Purchase of marketable securities | 0 | 0 | (60,286) |
Purchase of property and equipment | (1,477) | (1,976) | (2,539) |
Proceeds from sale of marketable securities | 12,429 | 2,557 | 0 |
Short-term and restricted bank deposits, net | 2,260 | 1,969 | 1,471 |
Proceeds from redemption of marketable securities upon maturity | 3,215 | 2,711 | 15,390 |
Decrease (increase) in long-term bank deposits | (2,367) | 1,032 | 2,685 |
Purchase of intangible asset | 0 | 0 | (100) |
Net cash paid for acquisition of a subsidiary | 0 | (1,960) | 0 |
Net cash provided by (used in) investing activities | 14,060 | 4,333 | (43,379) |
Cash flows from financing activities: | |||
Purchase of treasury stock | (29,394) | (19,523) | (5,267) |
Repayment of senior convertible notes | 0 | 0 | (338) |
Repayment of long-term bank loans | (5,353) | (4,685) | (4,686) |
Proceeds from bank loans | 6,000 | 6,264 | 0 |
Payment related to the acquisition of Mailvision | (233) | (233) | (233) |
Proceeds from issuance of shares in a public offering, net | 0 | 0 | 29,744 |
Proceeds from issuance of shares upon exercise of options and warrants | 2,014 | 392 | 2,236 |
Net cash provided by (used in) financing activities | (26,966) | (17,785) | 21,456 |
Increase (decrease) in cash and cash equivalents | 5,436 | 4,111 | (15,966) |
Cash and cash equivalents at the beginning of the year | 18,908 | 14,797 | 30,763 |
Cash and cash equivalents at the end of the year | 24,344 | 18,908 | 14,797 |
Supplemental disclosure of cash flow activities: | |||
Cash paid during the year for income taxes | 612 | 301 | 658 |
Cash paid during the year for interest | $ 363 | $ 329 | $ 415 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Nature of Operations [Text Block] | NOTE 1:- GENERAL a. Business overview: AudioCodes Ltd. (the "Company") and its subsidiaries (together the "Group") design, develop and market products and services for voice, data and video over IP networks to service providers and channels (such as distributors), OEMs, network equipment providers and systems integrators. The Company operates through its wholly-owned subsidiaries in the United States, Europe, Asia, Latin America, Australia and Israel. b. Asset Purchase Agreement with Mailvision Ltd ("Mailvision"): In May 2013, the Company acquired Mailvision, in which the Company held 29.2 Pursuant to the acquisition agreement, the Company acquired certain assets and assumed certain liabilities of Mailvision. The acquisition was accounted for using the purchase method. The $ 3,434 221 233 432 233 1,472 376 The MV Earn-Out liability was marked to market at fair value at each reporting date with subsequent changes in the value of the liability recorded in "financial income (expenses), net" in the statement of operations, while changes due to changes in estimates are recorded within "operating income or expenses" in the statement of operations. As of December 31, 2015, the MV Earn-Out estimated fair value amounted to $ 228 c. Acquisition of Active Communications Europe. ("ACS"): On December 31, 2015 the Company acquired 100 ( See also Note 3 d. The Group is dependent upon sole source suppliers for certain key components used in its products, including certain digital signal processing chips. Although there are a limited number of manufacturers of these particular components, management believes that other suppliers could provide similar components at comparable terms. A change in suppliers, however, could cause a delay in manufacturing and a possible loss of sales, which could adversely affect the operating results of the Group and its financial position. e. The Group had a major customer in the years ended December 31, 2014, 2015 and 2016, which accounted for 14.9 15.0 16.7 10.5 12.6 11.9 10 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). a. Use of estimates: The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. Management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. b. Financial statements in U.S. dollars ("dollars"): A majority of the Group's revenues is generated in dollars. In addition, most of the Group's costs are denominated and determined in dollars and in new Israeli shekels. Management believes that the dollar is the currency in the primary economic environment in which the Group operates. Thus, the functional and reporting currency of the Group is the dollar. Accordingly, monetary accounts maintained in currencies other than the dollar are remeasured into dollars in accordance with ASC 830, "Foreign Currency Matters". All transaction gains and losses of the remeasured monetary balance sheet items are reflected in the statements of operations as "financial income or expenses", as appropriate c. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany transactions and balances, including profits from intercompany sales not yet realized outside the Group, have been eliminated upon consolidation. d. Cash equivalents: Cash equivalents represent short-term highly liquid investments that are readily convertible into cash with original maturities of three months or less, at the date acquired. Short-term and restricted bank deposits: Short-term and restricted bank deposits are deposits with maturities of more than three months, but less than one year. The deposits are mainly in dollars and bear interest at an average rate of 1.30% and 0.72%, for the years ended December 31, 2015 and 2016, respectively. Short-term and restricted deposits are presented at amortized cost. Any accrued interest on these deposits is included in other receivables and prepaid expenses. In connection with long-term bank loans and their related covenants, the Company is required to maintain compensating balances with the banks and to maintain deposits in the same banks that provided the loans to the Company (see Note 10). In addition, the Company maintains restricted deposits in connection with foreign exchange derivatives and an office lease agreement (see also Note 11a). Out of the short-term and restricted bank deposits, a total of $5,356 and $3,401, are restricted short-term deposits as of December 31, 2015 and 2016, respectively. Marketable securities: The Group accounts for investments in debt securities in accordance with ASC 320, "Investments-Debt and Equity Securities". Management determines the appropriate classification of its investments in marketable debt securities at the time of purchase and reevaluates such determinations at each balance sheet date. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization together with interest on securities is included in “financial income (expenses), net”. The Group recognizes an impairment charge when a decline in the fair value of its investments in debt securities below the cost basis of such securities is considered to be other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Group's intent to sell, including whether it is more-likely-than-not that the Group will be required to sell the investment before recovery of cost basis. For securities that are deemed other-than-temporarily impaired, the amount of impairment is recognized in the statements of operations and is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income (loss). For the years ended December 31, 2014, 2015 and 2016, no other-than-temporary impairment losses have been identified. g. Inventories: Inventories are stated at the lower of cost or market value. Cost is determined as follows: Raw materials - using the "weighted average cost" method; finished products - using the "weighted average cost" method with the addition of direct manufacturing costs. The Group periodically evaluates the quantities on hand relative to current and historical selling prices, historical and projected sales volume and technological obsolescence. Based on these evaluations, inventory write-offs are taken based on slow moving items, technological obsolescence, excess inventories, discontinuation of products lines, and for market prices lower than cost. h. Long-term and restricted bank deposits: Bank deposits and the related accrued interest with maturities of more than one year are included in long-term investments and presented at their cost. Accrued interest that is payable within a one-year period is included in other receivables and prepaid expenses. The deposits are denominated in dollars and bear interest at an average rate of 1.00% and 1.50%, for the years ended December 31, 2015 and 2016, respectively. In connection with the long-term bank loans, the Company is required to maintain compensating balances with the banks (see also Note 10). Out of the total long-term bank deposits, a total of $3,034 and $5,407, are restricted long-term deposits as of December 31, 2015 and 2016, respectively. i. Property and equipment: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets, at the following annual rates: Computers and peripheral equipment 33% Office furniture and equipment 6% 20% (mainly 15%) Leasehold improvements Over the shorter of the term of the The Group's long-lived assets are reviewed for impairment in accordance with ASC 360-10-35, "Property, Plant and Equipment - Subsequent Measurement", whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. Recoverability of assets (asset group) to be held and used is measured by a comparison of the carrying amount of an asset (asset group) to the future undiscounted cash flows expected to be generated by the asset if such assets are considered to be impaired. The impairment to be recognized is measured by the amount by which the carrying amount of the assets (asset groups) exceeds the fair value of the assets (asset groups). During the years ended December 31, 2014, 2015 and 2016, no impairment losses had been identified for property and equipment. j. Intangible assets: Intangible assets are comprised of acquired technology, customer relations and licenses. Intangible assets that are not considered to have an indefinite useful life are amortized using the straight-line basis over their estimated useful lives, which range from four and a half to ten years. Recoverability of these assets is measured by a comparison of the carrying amount of the asset to the undiscounted future cash flows expected to be generated by the assets. If the assets are considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired assets. During the years ended December 31, 2014, 2015 and 2016, no impairment losses were identified. k. Goodwill: Goodwill and certain other purchased intangible assets have been recorded as a result of acquisitions. Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill is not amortized, but rather is subject to an impairment test. The Group performs an annual impairment test during the fourth quarter of each fiscal year, or more frequently if impairment indicators are present. The Group operates in one operating segment, and this segment comprises its only reporting unit. ASC 350, "Intangibles Goodwill and Other", prescribes a two-phase process for impairment testing of goodwill. The first phase screens for impairment, while the second phase (if necessary) measures impairment. Goodwill impairment is deemed to exist if the net book value of a reporting unit exceeds its estimated fair value. In such case, the second phase is then performed, and the Group measures impairment by comparing the carrying amount of the reporting unit's goodwill to the implied fair value of that goodwill. An impairment loss is recognized in an amount equal to the excess. The Group has an option to perform a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount prior to performing the two-step goodwill impairment test. If this is the case, the two-step goodwill impairment test is required. If it is more-likely-than-not that the fair value of a reporting unit is greater than its carrying amount, the two-step goodwill impairment test is not required. For each of the three years in the period ended December 31, 2016, the Group performed an annual impairment analysis, using market capitalization, and no impairment losses have been identified. l. Revenue recognition: The Group generates its revenues primarily from the sale of products through a direct sales force and sales representatives. The Group's products are delivered to its customers, which include original equipment manufacturers, network equipment providers, systems integrators and distributors in the telecommunications and networking industries, all of whom are considered end-users. Revenues from products and services are recognized in accordance with ASC 605, "Revenue Recognition" ("ASC 605"), when the following criteria are met: persuasive evidence of an arrangement exists, delivery of the product has occurred, the fee is fixed or determinable, and collectability is reasonably assured. The Group has no remaining obligation to customers after the date on which products are delivered other than pursuant to warranty obligations and right of return. In a multiple element arrangement, Accounting Standards Update ("ASU") 2009-13, Topic 605, "Multiple-Deliverable Revenue Arrangements" requires the allocation of arrangement consideration to each deliverable to be based on the relative selling price. The selling price for a deliverable is based on its vendor-specific objective evidence ("VSOE") if available, third-party evidence ("TPE") if VSOE is not available, or estimated selling price ("ESP") if neither VSOE nor TPE is available. The Group then recognizes revenue on each deliverable in accordance with its policies for product and service revenue recognition. VSOE of selling price is based on the price charged when the element is sold separately. In determining VSOE, the Group requires that a substantial majority of the selling prices fall within a narrow range based on stand-alone rates. TPE of selling price is established by evaluating largely interchangeable competitor products or services in stand-alone sales to similarly situated customers. However, as the Group's products contain a significant element of proprietary technology and its solutions offer substantially different features and functionality, the comparable pricing of products with similar functionality typically cannot be obtained. Additionally, as the Group is unable to reliably determine what competitor’s products' selling prices are on a stand-alone basis, the Group is not typically able to determine TPE. The ESP is established considering multiple factors including, but not limited to, pricing practices in different geographical areas and through different sales channels, gross margin objectives, internal costs, competitors' pricing strategies, and industry technology lifecycles. The selling price of the products and professional services was based on ESP. Maintenance selling price was based on either VSOE or ESP. The Group limits the amount of revenue recognition for delivered elements to the amount that is not contingent on the future delivery of products or services or subject to customer- specific return or refund privileges. The Group evaluates each deliverable in an arrangement to determine whether they represent separate units of accounting. The Group grants to certain customers a right of return or the ability to exchange a specific percentage of the total price paid for products they have purchased over a limited period for other products. The Group maintains a provision for product returns and exchanges and other incentives based on its experience with historical sales returns, analysis of credit memo data and other known factors, in accordance with ASC 605. The provision was deducted from revenues and amounted to $1,737 and $1,948, as of December 31, 2015 and 2016, respectively. Revenues from the sale of products which were not yet determined to be final sales due to acceptance provisions are deferred and included in deferred revenues. In cases where collectability is not probable, revenues are deferred and recognized upon collection. Deferred revenues include amounts invoiced to customers for which revenue has not yet been recognized. m. Warranty costs: The Group usually provides a warranty period of 12 months at no extra charge. The Group estimates the costs that may be incurred under its basic limited warranty and records a liability in the amount of such costs at the time product revenue is recognized. Factors that affect the Group's warranty liability include the number of installed units, historical and anticipated rates of warranty claims, and cost per claim. The Group periodically assesses the adequacy of its recorded warranty liability and adjusts the amount as necessary. As of December 31, 2015 and 2016, the provision for warranty amounted to $407 and $349, respectively. n. Research and development costs: ASC 985-20, "Costs of Software to Be Sold, Leased, or Marketed", requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. Based on the Company's product development process, technological feasibility is established upon the completion of a working model. The Company does not incur material costs between the completion of a working model and the point at which the products are ready for general release. Therefore, research and development costs are charged to the consolidated statement of operations as incurred. Participation grants from the Israel National Authority for Technology and Innovation (formerly known as the Office of the Chief Scientist) of the Israeli Ministry of Economy and Industry, ("NATI") for research and development activity are recognized at the time the Company is entitled to such grants on the basis of the costs incurred and included as a deduction of research and development costs. Research and development grants recognized during the years ended December 31, 2014, 2015 and 2016 were $3,871, $5,448 and $7,335, respectively. o. Income taxes: The Group accounts for income taxes in accordance with ASC 740, "Income Taxes", ("ASC 740"). ASC 740 prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and for carry forward tax losses. Deferred taxes are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Group records a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value if it is more-likely-than-not that some portion or all of the deferred tax asset will not be realized. In addition, ASC 740 prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The first step is to evaluate the tax position taken or expected to be taken in a tax return. This is done by determining if the weight of available evidence indicates that it is more-likely-than-not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Group accounts for deferred income taxes in accordance with ASU 2015-17 which require that all deferred tax liabilities and assets be classified as noncurrent in the consolidated balance sheet. Interest and penalties assessed by taxing authorities on an underpayment of income taxes are included as a component of income tax expense in the consolidated statements of operations. p. Accumulated other comprehensive income (loss) ("AOCI"): The Company accounts for comprehensive income in accordance with ASC topic 220, "Comprehensive Income". This statement establishes standards for the reporting and display of comprehensive income (loss) and its components in a full set of general purpose financial statements. Comprehensive income (loss) generally represents all changes in shareholders' equity during the period except those resulting from investments by, or distributions to, shareholders. Unrealized Unrealized Total Balance as of January 1, 2016 $ (410 ) $ 273 $ (137 ) Other comprehensive income before reclassifications 376 608 984 Amounts reclassified from AOCI (27 ) (1,023 ) (1,050 ) Other comprehensive income (loss) 349 (415 ) (66 ) Balance as of December 31, 2016 $ (61 ) $ (142 ) $ (203 ) The effects on net income of amounts reclassified from AOCI for the year ended December 31, 2016 derive from realized gains on cash flow hedges recorded in operating expenses and from realized gains on available-for sale marketable securities recorded in financial expenses (income). q. Concentrations of credit risk: Financial instruments that potentially subject the Group to concentrations of credit risk consist principally of cash and cash equivalents, bank deposits, trade receivables, marketable securities and foreign currency derivative contracts. The majority of the Group's cash and cash equivalents, bank deposits and foreign currency derivative contracts are invested in dollar instruments with major banks in Israel and the United States. Deposits in U.S. banks are federally insured up to $250 per account. Such investments in the United States may be in excess of insured limits and are not insured in other jurisdictions. Management believes that the financial institutions that hold the Group's investments are corporations with high credit standing. Accordingly, management believes that low credit risk exists with respect to these financial investments. Marketable securities include investments in dollar-linked corporate bonds. Marketable securities consist of highly liquid debt instruments with high credit standing. The Company’s investment policy, approved by the Board of Directors, limits the amount the Group may invest in any one type of investment or issuer, thereby reducing credit risk concentrations. Management believes that the portfolio is well diversified and, accordingly, minimal credit risk exists with respect to these marketable debt securities. The trade receivables of the Group are derived from sales to customers located primarily in the Americas, the Far East, Israel and Europe. Under certain circumstances, the Group may require letters of credit, other collateral, additional guarantees or advance payments. Regarding certain credit balances, the Group is covered by foreign trade risk insurance. The Group performs ongoing credit evaluations of its customers and establishes an allowance for doubtful accounts based upon a specific review. r. Basic and diluted earnings (loss) per share: Basic earnings (loss) per share are computed based on the weighted average number of ordinary shares outstanding during each year. Diluted earnings (loss) per share are computed based on the weighted average number of ordinary shares outstanding during each year, plus potential dilutive ordinary shares considered outstanding during the year, in accordance with ASC 260, "Earnings per Share". Certain outstanding stock options, restricted share units ("RSUs") and warrants have been excluded from the calculation of the diluted earnings per share since such securities are anti-dilutive for all years presented. The total weighted average number of shares related to the outstanding options, RSUs and warrants that have been excluded from the calculation of diluted earnings (loss) per share was 954,823, 2,250,433 and 1,927,281 for the years ended December 31, 2014, 2015 and 2016, respectively. s. Accounting for stock-based compensation: The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation-Stock Compensation" ("ASC 718"). ASC 718 requires companies to estimate the fair value of stock-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company's consolidated statement of operations. The Company recognizes compensation expenses for the value of its awards based on the accelerated method over the requisite service period of each of the awards. Prior to January 1, 2016, stock-based compensation expense was recorded net of estimated forfeitures in the Company’s consolidated statements of operations and, accordingly, was recorded for only those stock-based awards that the Company expected to vest. The Company applies ASC 718 and ASC 505-50, "Equity-Based Payments to Non-Employees" ("ASC 505-50") with respect to options and warrants issued to non-employees. Accordingly, the Company uses option valuation models to measure the fair value of the options and warrants at the measurement date as defined in ASC 505-50. The Company performed-based options are subject to certain performance criteria; accordingly, compensation expense is recognized for such awards when it becomes probable that the related performance condition will be satisfied. The Company recognizes compensation expenses for the value of awards granted based on the accelerated method for performance-based awards. The weighted-average estimated fair value of employee stock options granted during the years ended December 31, 2014, 2015 and 2016, was $2.97, $2.04 and $2.01 per share, respectively, using the Black-Scholes option pricing formula. Fair values were estimated using the following weighted-average assumptions (annualized percentages): Year Ended December 31, 2014 2015 2016 Dividend yield 0% 0% 0% Expected volatility 54.8%-59.4% 53.32%-55.86% 47.64%-52.95% Risk-free interest 1.48%-1.86% 1.14%-1.74% 1.11%-1.86% Expected life 4.74-5.43 years 4.75-5.43 years 4.76-5.30 years Forfeiture rate 4.0% 4.0% 0% The Company used its historical volatility in accordance with ASC 718. The computation of volatility uses historical volatility derived from the Company's exchange traded shares. The expected term of options granted is estimated based on historical experience and represents the period of time that options granted are expected to be outstanding. The risk free interest rate assumption is the implied yield currently available on United States treasury zero-coupon issues with a remaining term equal to the expected life of the Company's options. The dividend yield assumption is based on the Company's historical experience and expectation of no future dividend payouts and may be subject to substantial change in the future. The Company has historically not paid cash dividends and has no foreseeable plans to pay cash dividends in the future. The Company estimated the forfeiture rate based on historical forfeitures of equity awards and adjusted the rate to reflect changes in facts and circumstances, if any. The Company revised its estimated forfeiture rate if actual forfeitures differed from its initial estimates. Effective as of January 1, 2016, the Company adopted a change in accounting policy in accordance with Accounting Standards Update 2016-09, “Compensation Stock Compensation (Topic 718)” (“ASU 2016-09”) to account for forfeitures as they occur. The change was applied on a modified retrospective basis with a cumulative effect adjustment to retained earnings of $131 thousand (which increased the accumulated deficit) as of January 1, 2016. No prior periods were recast as a result of this change in accounting policy. The total stock-based compensation expenses relating to all of the Company's stock-based awards recognized for the years ended December 31, 2014, 2015 and 2016 were included in items of the consolidated statements of operations, as follows: Year Ended December 31, 2014 2015 2016 Cost of revenues $ 89 $ 101 $ 118 Research and development expenses, net 585 429 459 Selling and marketing expenses 1,105 1,061 1,101 General and administrative expenses 767 782 736 Total stock-based compensation expenses $ 2,546 $ 2,373 $ 2,414 t. Treasury stock: The Company has repurchased its ordinary shares from time to time in the open market or, in 2016, pursuant to a self-tender offer in Israel and the U.S., and holds such repurchased shares as treasury stock. The Company presents the cost to repurchase treasury stock as a reduction of shareholders' equity. See also Note 12a. u. Severance pay: The liability for severance pay for Israeli employees is calculated pursuant to Israel's Severance Pay Law, 1963, based on the most recent salary of the employees multiplied by the number of years of employment as of the balance sheet date for all employees in Israel. Employees who have been employed for more than a one-year period are entitled to one month's salary for each year of employment or a portion thereof. The Group's liability for all of its Israeli employees is fully provided for by monthly deposits with severance pay funds, pension funds, insurance policies and by an accrual. The value of these deposits is recorded as an asset in the Company's consolidated balance sheet. The deposited funds include profits accumulated up to the consolidated balance sheets date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israel's Severance Pay Law, 1963 or labor agreements. Since March 2011, the Group's agreements with new Israeli employees are under Section 14 of the Israeli Severance Pay Law, 1963. The Group's contributions for severance pay have replaced its severance obligation. Upon contribution of the full amount of the employee's monthly salary for each year of service, no additional calculations are conducted between the parties regarding the matter of severance pay and no additional payments are made by the Group to the employee. The Group is legally released from the obligations to employees once the deposit amounts have been paid, and therefore the severance pay liability is not reflected in the balance sheet. Severance pay expenses for the years ended December 31, 2014, 2015 and 2016, amounted to $1,961, $2,153 and $3,217, respectively. v. Employee benefit plan: The Group has 401(k) defined contribution plans covering employees in the U.S. All eligible employees may elect to contribute a portion of their annual compensation to the plan through salary deferrals, subject to the IRS limit of $18 during the years ended December 31, 2015 and 2016, plus a catch-up contribution of $6 for participants age 50 or over. The Group matches 50% of employees’ contributions, up to a maximum of 6% of the employees' annual pay. In the years ended December 31, 2014, 2015 and 2016, the Group matched contributions in the amount of $284, $287 and $286, respectively. w. Advertising expenses: Advertising expenses are charged to the statements of operations as incurred. Advertising expenses for the years ended December 31, 2014, 2015 and 2016 amounted to $562, $604 and $687, respectively. x. Fair value of financial instruments: The estimated fair value of financial instruments has been determined by the Group using available market information and valuation methodologies. Considerable judgment is required in estimating fair values. Accordingly, the estimates may not be indicative of the amounts the Group could realize in a current market exchange. The following methods and assumptions were used by the Group in estimating its fair value disclosures for financial instruments: The carrying amounts of cash and cash equivalents, short-term bank deposits, trade receivables, trade payables, other receivables and other payables and accrued expenses approximate their fair value due to the short-term maturity of such instruments. The fair value of long-term bank loans also approximates their carrying value, since they bear interest at rates close to the prevailing market rates. The fair value of foreign currency contracts is estimated by obtaining current quotes from banks and market observable data of similar instruments. The fair value of marketable securities is estimated by obtaining the fair value of the marketable securities from the bank, which is based on current quotes and market value provided by external service providers. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC 820, "Fair Value Measurements and Disclosures" ("ASC 820") establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets Level 2 - Observable inputs, other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data Level 3 - Unobservable inputs which are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. See also Note 8. y. Derivatives and hedging: The Group accounts for derivatives and hedging based on ASC 815, "Derivatives and Hedging" ("ASC 815"). The Group accounts for its derivative instruments as either assets or liabilities and carries them at fair value. Derivative instruments that are not designated and qualified as hedging instruments must be adjusted to fair value through earnings. The changes in fair value of such instruments are included as earnings in "Financial income (expenses), net" at each reporting period. For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income (loss) in equity and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings and is classified as payroll and rent expenses. The ineffective portion of the gain or loss on the derivative instrument is recognized in current earnings and classified as "financial income or expenses". To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future |
ACQUISITION OF ACTIVE COMMUNICA
ACQUISITION OF ACTIVE COMMUNICATIONS EUROPE. (''ACS'') | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | ACQUISITION OF ACTIVE COMMUNICATIONS EUROPE. ("ACS") On December 31, 2015 (the "Closing Date"), the Company entered into a share purchase agreement, according to which the Company acquired 100 As part of the share purchase agreement, the Company agreed to pay an earn-out amount based on the sales of the Company’s products related to ACS technology (the “ACS Products”). The earn-out amount is calculated based on: (a) 20% of ACS Products net revenues (the "ACS Revenues") after the first $2,000 ACS Revenues up to an earn-out payment of $2,000, plus (b) an additional amount of 10% of ACS Revenues after the first $20,000 of ACS Revenues (the "ACS Earn-Out"). The acquisition was accounted for using the purchase method. The $ 4,109 2,000 2,109 In addition, the Company agreed to pay $ 500 500 750 448 Current assets $ 305 Property and equipment 20 Technology 1,917 Customer relationships 312 Total identifiable assets acquired 2,554 Current liabilities (361) Deferred tax liability (557) Total identifiable liabilities assumed (918) Net identifiable assets acquired 1,636 Goodwill 2,473 Net assets acquired $ 4,109 The Company allocated the acquired assets and liabilities assumed based on a preliminary purchase price allocation. The fair values of the acquired technology and customer relationships were valued using the income approach. This method utilized a forecast of expected cash inflows, cash outflows and contributory charges for economic returns on tangible and intangible assets employed. The excess of the purchase price over the preliminary assessment of the net tangible and intangible assets acquired resulted in goodwill of $ 2,473 7 5 7 The fair value of the Earn-Out was estimated by utilizing the income approach, taking into account the potential cash payments discounted to arrive at a present value amount, based on the Company's expectation as to future revenues of ACS products Since the actual revenues of ACS products in 2016 and the expected revenues of ACS products in 2017 and 2018 were lower than the Company’s expectation as of the Closing Date, the Company recorded net income of $ 1,674 As of December 31, 2015 and 2016, the estimated fair value of the Earn-Out amounted to $2,109 and $ 487 |
MARKETABLE SECURITIES AND ACCRU
MARKETABLE SECURITIES AND ACCRUED INTEREST | 12 Months Ended |
Dec. 31, 2016 | |
Marketable Securities and Accrued Interest [Abstract] | |
Marketable Securities and Accrued Interest Disclosure [Text Block] | MARKETABLE SECURITIES AND ACCRUED INTEREST December 31, 2015 Amortized Unrealized Unrealized Fair cost gains losses Value Corporate bonds: Maturing within one year $ 1,997 $ - $ (4) $ 1,993 Maturing between one to five years 50,700 7 (413) 50,294 Accrued interest 487 - - 487 $ 53,184 $ 7 $ (417) $ 52,774 December 31, 2016 Amortized Unrealized Unrealized Fair cost gains losses Value Corporate bonds: Maturing within one year $ 6,479 $ 4 $ (5) $ 6,478 Maturing between one to five years 29,602 32 (94) 29,540 Accrued interest 300 - - 300 $ 36,381 $ 36 $ (99) $ 36,318 These investments were issued by highly rated corporations. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost of the Group's investment. As of December 31, 2015 and 2016, the Group did not have any investment in marketable securities that were in an unrealized loss position for a period of twelve months or greater. Since the Group had the ability and intent to hold these investments until an anticipated recovery of fair value, which may be until maturity, the Group did not consider these investments to be other-than-temporarily impaired as of December 31, 2015 and 2016. Unrealized gains (losses) are valued using alternative pricing sources and models utilizing observable market inputs. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | NOTE 5:- INVENTORIES December 31, 2015 2016 Raw materials $ 6,687 $ 5,779 Finished products 10,091 10,554 $ 16,778 $ 16,333 In the years ended December 31, 2014, 2015 and 2016, the Group wrote-off inventories in a total amount of $ 82 724 2,173 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 6:- PROPERTY AND EQUIPMENT, NET December 31, 2015 2016 Cost: Computers and peripheral equipment $ 27,495 $ 28,799 Office furniture and equipment 11,593 11,707 Leasehold improvements 3,354 3,395 42,442 43,901 Accumulated depreciation: Computers and peripheral equipment 25,833 27,104 Office furniture and equipment 10,264 10,501 Leasehold improvements 2,255 2,429 38,352 40,034 Depreciated cost $ 4,090 $ 3,867 Depreciation expenses amounted to $ 1,874 1,761 1,700 |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | INTANGIBLE ASSETS, NET Useful life December 31, (years) 2015 2016 a. Impaired cost: Acquired technology and license 5 - 10 $ 19,857 $ 19,857 Customer relationship 4.5 - 9 4,750 4,750 24,607 24,607 Accumulated amortization: Acquired technology and license 16,240 17,292 Customer relationship 4,343 4,483 20,583 21,775 Amortized cost $ 4,024 $ 2,832 b. Amortization expenses related to intangible assets amounted to $ 1,356 1,202 1,192 c. Year ending December 31, 2017 $ 835 2018 749 2019 354 2020 334 Thereafter 560 $ 2,832 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | NOTE 8:- FAIR VALUE MEASUREMENTS In accordance with ASC 820, the Group measures its foreign currency derivative instruments, marketable securities, the earn-out provided to Mailvision, and Earn-Out liability related to the acquisition of ACS, at fair value. Investments in foreign currency derivative instruments and marketable securities are classified within Level 2 of the fair value hierarchy. This is because these assets are valued using alternative pricing sources and models utilizing market observable inputs. The contingent consideration of the earn-out provided to Mailvision and the Earn-Out liability related to the acquisition of ACS are classified within Level 3 of the fair value hierarchy because these liabilities are based on present value calculations and an external valuation model whose inputs include market interest rates, estimated operational capitalization rates and volatilities. Unobservable inputs used in these models are significant. As of December 31, 2016 the Company contingent consideration related to Mailvision was paid in full (see also Note 1b). December 31, 2015 Fair value measurements using input type Level 2 Level 3 Total Financial assets related to foreign currency derivative hedging contracts $ 101 $ - $ 101 Marketable securities 52,774 - 52,774 Contingent consideration related to Mailvision - (228) (228) Earn-Out liability related to the acquisition of ACS - (2,109) (2,109) Total financial net assets (liabilities) $ 52,875 $ (2,337) $ 50,538 December 31, 2016 Fair value measurements using input type Level 2 Level 3 Total Financial liabilities related to foreign currency derivative hedging contracts $ (142) $ - $ (142) Marketable securities 36,318 - 36,318 Earn-Out liability related to the acquisition of ACS - (487) (487) Total financial net assets (liabilities) $ 36,176 $ (487) $ 35,689 Balance at January 1, 2016 $ (2,337) Payment of MV Earn Out liability 233 Adjustment due to change in the forecast of earn-out consideration 1,674 Adjustment due to time change value (57) Balance at December 31, 2016 $ (487) |
OTHER PAYABLES AND ACCRUED EXPE
OTHER PAYABLES AND ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | NOTE 9:- OTHER PAYABLES AND ACCRUED EXPENSES December 31, 2015 2016 Payroll and other employee related accruals $ 3,474 $ 4,214 Vacation accrual 2,931 3,096 Royalties provision 966 1,170 Government authorities 288 979 Accrued expenses 9,864 8,517 Others 428 642 $ 17,951 $ 18,618 |
LONG-TERM BANK LOANS
LONG-TERM BANK LOANS | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | NOTE 10:- LONG-TERM BANK LOANS In September and December 2011, the Company entered into loan agreements with Israeli commercial banks that provided loans in the total principal amount of $ 23,750 LIBOR plus 2.1%-4.35% principal amount. The remaining $3,900 of original principal amount bear interest at 0.5 19,850 3,900 of principal amount is repayable in 10 equal semiannual payments In December 2015, the Company entered into loan agreements with Israeli commercial bank that provided loans in the total principal amount of $ 3,000 3,000 LIBOR plus 1%-2.5 20 equal quarterly installments through December 2020 In December 2016, the Company entered into loan agreements with Israeli commercial bank that provided loans in the total principal amount of $ 6,000 LIBOR plus 1.1%-2.5% 20 equal quarterly installments through December 2021 As of December 31, 2015 and 2016, the banks have a lien on the Company's assets that secures the 2011 Loans, 2015 Loans and 2016 Loans. As of December 31, 2015 and 2016, the Company is required to maintain a total of $ 5,553 5,910 As of December 31, 2015 and 2016, the compensating balances are included in $ 2,643 1,710 2,910 4,200 As of December 31, 2015 and 2016, the Company was in compliance with all of its Covenants. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 11:- COMMITMENTS AND CONTINGENT LIABILITIES a. Lease commitments: The Group's facilities are leased under several lease agreements in Israel, Europe, Asia and the Americas for periods ending in 2024 In addition, the Company has various operating lease agreements with respect to motor vehicles. The terms of the lease agreements are for 36 months, which expire on various dates, the latest of which is in 2019. Year ending December 31, 2017 $ 6,250 2018 5,835 2019 5,129 2020 5,023 2021 and thereafter 16,510 Total minimum lease payments *) $ 38,747 *) Minimum payments have been reduced by minimum sublease rental of $ 2,801 In connection with the Company's facilities lease agreement in Israel, the lessor has a lien of approximately $ 1,500 Lease expenses for the years ended December 31, 2014, 2015 and 2016, were approximately $ 6,236 5,930 5,784 943 960 801 b. Inventory purchase commitments: The Group is obligated under certain agreements with its suppliers to purchase specified items of excess inventory which is expected to be utilized in 2017. As of December 31, 2016, non-cancelable purchase obligations were approximately $ 15,893 c. Royalty commitment to the NATI: Under the research and development agreements of the Company and its Israeli subsidiaries with the NATI and pursuant to applicable laws, the Company and its Israeli subsidiaries are required to pay royalties at the rate of 1.3 5 100 The place of manufacturing of a product that was developed with the support of the NATI, or based on know-how developed with the support of the NATI, shall be according to the supported company's declaration in the application for support (including manufacturing abroad). In case the Company or any of its Israeli subsidiaries wish to transfer their manufacturing activities abroad, in addition to their statement in the application for support, they will be required to receive approval from the NATI research committee. The committee is entitled to increase both the royalty liability and the rate of the royalty payments. The increased repayment is calculated according to the percentage of the manufacturing activities that are intended to be carried out outside Israel, and can reach up to 300 1 1.3 5 As of December 31, 2015 and 2016, the Company and its Israeli subsidiaries have a contingent obligation to pay royalties in the amount of approximately $ 45,563 52,717 As of December 31, 2015 and 2016, the Company and its Israeli subsidiaries have paid or accrued royalties to the NATI in the amount of $ 4,723 6,186 On March 27, 2016, the Company received a notification from the NATI that according to an audit conducted on their behalf the Company is said to owe the NATI an amount of $ 999 d. Royalty commitments to third parties: The Group has entered into technology licensing fee agreements with third parties. Under the agreements, the Group agreed to pay the third parties royalties, based on sales of relevant products . See also Note 9 e. Legal proceedings: 1. In November 2013, a former employee filed a claim against the Company’s subsidiary in Brazil alleging that he is entitled to approximately $ 600 2. In January 2015, the Manufacturers Association of Israel (“MAI”) filed a claim against the Company with the Israeli Labor Court, for unpaid handling charges, allegedly due for the years 2008 - 2013. In January 2017, the parties agreed to settle this claim, and appropriate provision was recorded accordingly. 3. In January 2017, a complaint for patent infringement was filed against the Company’s subsidiary in the U.S. and against a customer of the Company. The proceedings were served and no monetary demands were made. At this early stage, the Company cannot predict the outcome of this matter |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 12:- SHAREHOLDERS' EQUITY a. Treasury stock: During the year ended December 31, 2014, the Company's Board of Directors approved a program to repurchase up to $ 3,000 30,000 15,000 As part of the share repurchase program, on June 16, 2016, the Company commenced an offer in the U.S. and Israel to purchase up to 3,000,000 0.01 4.35 3,000,000 150 As of December 31, 2016, pursuant to this program, the Company had repurchased a total of 23,366,490 89,980 6,198,363 29,394 b. Issuance of ordinary shares: On March 10, 2014, the Company sold in a public offering 4,025,000 525,000 8.00 29,744 2,456 c. Employee and Non-employee Stock Option Plan: In 2008, the Company's Board of Directors approved the 2008 Equity Incentive Plan (the "Plan") that became effective in January 2009. As of December 31, 2016, the total number of shares authorized for future grant under the Plan is 1,708,155 Stock options granted under the Plan are generally exercisable at the fair market value of the ordinary shares at the date of grant and usually expire seven or ten years from the date of grant. The options generally vest over four years from the date of grant. Any options that are forfeited or cancelled before expiration become available for future grants. Amount Weighted Weighted Aggregate Options outstanding at beginning of year 3,670,134 $ 4.25 4.3 $ 1,370 Changes during the year: Granted 532,500 $ 4.35 Exercised (651,427) $ 3.09 Forfeited (193,750) $ 4.34 Expired (4,000) $ 2.12 Options outstanding at end of year 3,353,457 $ 4.50 4.1 $ 6,346 Vested and expected to vest 3,353,457 $ 4.50 4.1 $ 6,346 Options exercisable at end of year 1,906,208 $ 4.46 3.1 $ 3,724 The weighted-average grant-date fair value of options granted during the years ended December 31, 2014, 2015 and 2016 was $ 2.97 2.04 2.01 Total intrinsic value of options exercised for the years ended December 31, 2014, 2015 and 2016 was $ 1,870 219 1,583 The following is a summary of the Company's restricted stock units ("RSUs") activity and related information for the year ended December 31, 2016: Number of Weighted RSUs outstanding at beginning of year 298,923 $ 4.25 Changes during the year: Granted 218,740 $ 4.50 Vested (116,629) $ 4.31 Forfeited (7,500) $ 3.54 RSUs outstanding at end of year 393,534 $ 4.38 During the years ended December 31, 2014, 2015 and 2016, the stock based compensation expenses related to RSUs granted amounted to $ 517 483 803 Number of Weighted Warrants outstanding at beginning of year 65,000 $ 4.435 Changes during the year: Forfeited (60,000) $ 4.38 Warrants outstanding at end of year 5,000 $ 5.00 Warrants exercisable at end of year 2,500 $ 5.00 The Group recorded immaterial compensation expenses with respect to the grants of these warrants in accordance with ASC 505-50. As of December 31, 2016, there was $ 2,575 1.03 Range of Number of Weighted Weighted Number of Weighted (Years) $ 0.00-1.10 6,250 1.69 $ 0.00 5,500 $ 0.00 $ 1.50-2.51 58,525 2.70 $ 2.09 58,525 $ 2.09 $ 2.57-4.00 1,239,377 3.86 $ 3.47 799,752 $ 3.338 $ 4.03-6.49 1,782,274 4.47 $ 4.95 826,908 $ 5.11 $ 6.51-9.24 272,031 3.07 $ 6.88 218,023 $ 6.95 3,358,457 4.10 $ 4.50 1,908,708 $ 4.47 |
TAXES ON INCOME
TAXES ON INCOME | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 13:- TAXES ON INCOME a. Israeli taxation: 1 Measurement of taxable income in U.S. dollars: The Company has elected to measure its taxable income and file its tax return under the Israeli Income Tax Regulations (Principles Regarding the Management of Books of Account of Foreign Invested Companies and Certain Partnerships and the Determination of Their Taxable Income), 1986. Accordingly, results for tax purposes are measured in terms of earnings in dollars. 2. Tax benefits under the Israeli Law for the Encouragement of Capital Investments, 1959 (the "Investment Law"): The Company's production facilities in Israel have been granted the status of an "Approved Enterprise" in accordance with the Investment Law under four separate investment programs. According to the provisions of the Investment Law, the Company has been granted the "Alternative Benefit Plan", under which the main benefits are tax exemptions and reduced tax rates. Therefore, the Company's income derived from the "Approved Enterprise" will be entitled to a tax exemption for a period of two years and to an additional period of five to eight years of reduced tax rates of 10% - 25% (based on the percentage of foreign ownership). The duration of tax benefits of reduced tax rates is subject to a limitation of the earlier of 12 years from commencement of production, or 14 years from the approval date. The Company utilized tax benefits from the first program in 1998 and has been no longer eligible for benefits since 2007. As of December 31, 2016, retained earnings included approximately $ 540 10 25 180 The entitlement to the above benefits is conditional upon the Company fulfilling the conditions stipulated by the Investment Law, regulations published thereunder and the certificate of approval for the specific investments in "Approved Enterprises". In the event of failure to comply with these conditions, the benefits may be canceled and the Company may be required to refund the amount of the benefits, in whole or in part, including interest. As of December 31, 2016, management believes that the Company is in compliance with all of the aforementioned conditions. However, the Investment Law provides that terms and benefits included in any certificate of approval already granted will remain subject to the provisions of the Investment Law as they were on the date of such approval. Therefore, the Company's existing "Approved Enterprises" are generally not subject to the provisions of the 2005 Amendment. As a result of the 2005 Amendment, tax-exempt income generated under the provisions of the Investment Law, as amended, will subject the Company to taxes upon distribution or liquidation and the Company may be required to record a deferred tax liability with respect to such tax-exempt income. Income from sources other than the "Approved Enterprise" during the benefit period will be subject to tax at the regular tax rate prevailing at that time. On April 1, 2005, an amendment to the Investment Law came into effect (the "2005 Amendment") that significantly changed the provisions of the Investment Law. The 2005 Amendment limits the scope of enterprises that may be approved by the Investment Center by setting criteria for the approval of a facility as a "Beneficiary Enterprise" including a provision generally requiring that at least 25% of the Beneficiary Enterprise's income will be derived from export. Additionally, the 2005 Amendment enacted major changes in the manner in which tax benefits are awarded under the Investment Law so that companies no longer require Investment Center approval in order to qualify for tax benefits. As of December 31, 2016, there was no taxable income attributable to the Beneficiary Enterprise. In December 2010, another amendment to the Investment Law came into effect ("the 2010 Amendment"). The 2010 Amendment became effective as of January 1, 2011. According to the 2010 Amendment, the benefit tracks in the Investment Law were modified and a flat tax rate applies to the Company's entire income subject to this amendment (the "Preferred Income"). The Company may elect to adopt the 2010 Amendment. Once an election is made, the Company's income will be subject to the amended tax rate which ranges from 9 16 The Company does not currently intend to adopt the 2010 Amendment and intends to continue to comply with the Investment Law as in effect prior to enactment of the 2010 Amendment. The Company has evaluated the effect on its financial statements of the transition to the preferred enterprise tax track, and as of the date of the approval of the financial statements, the Company believes that it will not transition to the preferred enterprise tax track. Accordingly, the Company did not adjust its deferred tax balances as of December 31, 2016. The Company's position may change in the future. In December 2016, the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), 2016 which includes Amendment 73 to the Law ("Amendment 73") was published. According to Amendment 73, a preferred enterprise located in development area A will be subject to a tax rate of 7.5 9 16 The new tax tracks under the Amendment are as follows: technological preferred enterprise - an enterprise for which total consolidated revenues of its parent company and all subsidiaries are less than NIS 10 billion. A technological preferred enterprise, as defined in the Law, which is located in the center of Israel will be subject to tax at a rate of 12 7.5 The Amendment also prescribes special tax tracks for technological enterprises, which are subject to rules that are to be issued by the Minister of Finance by March 31, 2017. Since as of December 31, 2016 definitive criteria to determine the tax benefits had not yet been established, it cannot be determined if the legislation in respect of technological enterprises had been enacted or substantively enacted as of that date. Accordingly, the above changes in the tax rates relating to technological enterprises were not taken into account in the computation of deferred taxes as of December 31, 2016. 3. Net operating loss carry-forward: As of December 31, 2016, the Company has cumulative losses for tax purposes in the amount of approximately $ 5,700 7,849 As of December 31, 2016, the Company's Israeli subsidiaries have estimated total available carry-forward tax losses of approximately $ 67,800 The Company's U.S. subsidiary has estimated total available carry-forward tax losses of approximately $ 71,000 5,000 3,758 4. Tax benefits under the law for the Encouragement of Industry (taxes), 1969 (the "Encouragement Law"): The Encouragement Law provides several tax benefits for industrial companies. An industrial company is defined as a company resident in Israel, at least 90% of the income of which in a given tax year exclusive of income from specified Government loans, capital gains, interest and dividends, is derived from an industrial enterprise owned by it. An industrial enterprise is defined as an enterprise whose major activity in a given tax year is industrial production activity. Management believes that the Company is currently qualified as an "industrial company" under the Encouragement Law and, as such, is entitled to tax benefits, including: (1) deduction of purchase of know-how and patents and/or right to use a patent over an eight-year period; (2) the right to elect, under specified conditions, to file a consolidated tax return with additional related Israeli industrial companies and an industrial holding company; (3) accelerated depreciation rates on equipment and buildings; and (4) expenses related to a public offering on the Tel-Aviv Stock Exchange and on recognized stock markets outside of Israel, are deductible in equal amounts over three years. Eligibility for benefits under the Encouragement Law is not subject to receipt of prior approval from any Governmental authority. No assurance can be given that the Israeli tax authorities will agree that the Company qualifies, or, if the Company qualifies, that the Company will continue to qualify as an industrial company or that the benefits described above will be available to the Company in the future. 5. Tax rates: Taxable income of the Company is subject to a corporate tax rate as follow: 2014 and 2015 - 26.5 25 In December 2016, the Israeli Parliament approved the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), 2016 which reduces the corporate income tax rate to 24 25 23 The deferred tax balances as of December 31, 2016 have been calculated based on the revised tax rates. The effective tax rate payable by a company which is taxed under the Investment Law may be considerably lower (see also Note 13.a2 b. Income before taxes on income is comprised as follows: Year Ended December 31, 2014 2015 2016 Domestic $ 1,087 $ 1,007 $ 4,151 Foreign 2,218 2,141 3,443 $ 3,305 $ 3,148 $ 7,594 c. Taxes on income are comprised as follows: Year Ended December 31, 2014 2015 2016 Current taxes $ 451 $ 806 $ 831 Deferred taxes expense (income) 2,940 1,976 (9,475) $ 3,391 $ 2,782 $ (8,644) Domestic $ 2,122 $ 1,458 $ (6,576) Foreign 1,269 1,324 (2,068) $ 3,391 $ 2,782 $ (8,644) d. Deferred income taxes: Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Group's deferred tax liabilities and assets are as follows: December 31, 2015 2016 Deferred tax assets: Net operating loss carry-forward $ 47,646 $ 41,781 Reserves and allowances 9,682 8,916 Net deferred tax assets before valuation allowance 57,328 50,697 Less - Valuation allowance (55,112) (39,090) Deferred tax asset $ 2,216 $ 11,607 Deferred tax liability $ (557) $ (473) Deferred tax asset Domestic: 1,141 7,849 Foreign: 1,075 3,758 $ 2,216 $ 11,607 Deferred tax liability Foreign: $ (557) $ (473) Utilization of U.S. net operating losses may be subject to substantial annual limitations due to the "change in ownership" provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitation may result in the expiration of net operating losses before utilization. e. Reconciliation of the theoretical tax expenses: A reconciliation between the theoretical tax expense, assuming all income is taxed at the statutory tax rate applicable to income of the Company, and the actual tax expense (benefit) as reported in the statement of operations is as follows: Year Ended December 31, 2014 2015 2016 Income before taxes, as reported in the consolidated statements of operations $ 3,305 $ 3,148 $ 7,594 Statutory tax rate 26.5 % 26.5 % 25.0 % Theoretical tax expense on the above amount at the Israeli statutory tax rate $ 876 $ 834 $ 1,898 Income tax at rate other than the Israeli statutory tax rate 353 361 (749) Tax advances, withholding tax and non-deductible expenses, including stock-based compensation expenses 897 1,338 744 Losses for which a valuation allowance was provided (utilized) 1,101 209 (11,373) Tax adjustment in respect of different tax rates - - 679 State and Federal taxes 136 137 176 Other 28 (97) (19) Actual tax expense (benefit) $ 3,391 $ 2,782 $ (8,644) f. Unrecognized tax benefits: The Company's unrecognized tax benefits as of December 31, 2015 and 2016 are $ 158 The Company recognized interest and penalties related to unrecognized tax benefits in tax expenses in the amount of $ 8 7 9 219 228 The Company has received final tax assessment through the tax year 2012. The Company is currently under examination by the Israeli Tax Authorities for the tax years 2013 through 2015. |
BASIC AND DILUTED EARNINGS (LOS
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | NOTE 14:- BASIC AND DILUTED EARNINGS (LOSS) PER SHARE Year Ended December 31, 2014 2015 2016 Numerator: Net income (loss) $ (86) $ 366 $ 16,238 Denominator: Denominator for basic earnings (loss) per share - weighted average number of ordinary shares, net of treasury stock 42,285,919 40,178,292 35,173,562 Effect of dilutive securities: Employee stock options, warrants and RSU's *) - 386,653 605,292 Denominator for diluted earnings (loss) per share - adjusted weighted average number of shares 42,285,919 40,564,945 35,778,854 *) Antidilutive. |
FINANCIAL INCOME (EXPENSES), NE
FINANCIAL INCOME (EXPENSES), NET | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other Nonoperating Income and Expense [Text Block] | FINANCIAL INCOME (EXPENSES), NET Year Ended December 31, 2014 2015 2016 Financial expenses: Loss related to non-hedging derivative instruments $ - $ (230) $ (90) Interest (415) (278) (262) Amortization of marketable securities premiums and accretion of discounts, net (820) (1,094) (853) Exchange rate (722) - (519) Others (205) (286) (283) (2,162) (1,888) (2,007) Financial income - Gain related to non-hedging derivative instruments 196 - - Interest and others 1,770 2,302 1,847 Exchange rate - 28 - 1,966 2,330 1,847 $ (196) $ 442 $ (160) |
GEOGRAPHIC INFORMATION
GEOGRAPHIC INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | NOTE 16:- GEOGRAPHIC INFORMATION a. Summary information about geographic areas: The Group manages its business on a basis of one reportable segment ( see Note 1 2014 2015 2016 Total Long- Total Long- Total Long- revenues assets revenues assets revenues assets Israel $ 7,994 $ 3,576 $ 6,414 $ 3,836 $ 6,061 $ 3,625 Americas, principally U.S. 76,429 141 72,079 96 74,161 95 Europe 43,989 56 38,873 79 39,134 68 Far East 23,167 83 22,393 79 26,215 79 $ 151,579 $ 3,856 $ 139,759 $ 4,090 $ 145,571 $ 3,867 b. Product lines: Year Ended December 31, 2014 2015 2016 Technology $ 19,680 $ 15,965 $ 13,649 Networking 131,899 123,794 131,922 $ 151,579 $ 139,759 $ 145,571 |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | NOTE 17:- DERIVATIVE INSTRUMENTS The Group enters into hedge transactions with a major financial institution, using derivative instruments, primarily forward contracts and options to purchase and sell foreign currencies, in order to reduce the net currency exposure associated with anticipated expenses (primarily salaries and rent expenses) in currencies other than the dollar. The Group currently hedges such future exposures for a maximum period of one year. However, the Group may choose not to hedge certain foreign currency exchange exposures for a variety of reasons, including but not limited to immateriality, accounting considerations and the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign currency exchange rates. The Group records all derivatives in the consolidated balance sheet at fair value. The effective portions of cash flow hedges are recorded in other comprehensive income until the hedged item is recognized in earnings. The ineffective portions of cash flow hedges are adjusted to fair value through earnings in financial income or expense. As of December 31, 2015 and 2016, the Group had accumulated unrealized gain (loss) associated with cash flow hedges of $ 273 (142) The Group entered into forward and options contracts that did not meet the requirement for hedge accounting. The Group measured the fair value of the contracts in accordance with ASC 820, at Level 2. The net gains (losses) recognized in "financial expenses (income), net" during the years ended December 31, 2014, 2015 and 2016 were $ 196 (230) and $ (90) As of December 31, 2015 and 2016, the Group had outstanding forward and options collar (cylinder) contracts in the amount of $ 18,000 27,000 Foreign exchange forward December 31, and options contracts Balance sheet 2015 2016 Fair value of foreign exchange forward and options collar (cylinder) contracts "Other receivables and prepaid expenses" $ 291 $ - "Other payables and accrued expenses" $ (189) $ (142) Gains (losses) recognized in other comprehensive income (loss) (effective portion) "Other comprehensive income (loss)" $ 146 $ (415) Foreign exchange forward Comprehensive Year Ended and options contracts Income (loss) 2015 2016 Comprehensive income from derivatives before reclassifications "Other comprehensive income (loss)" $ 374 $ 608 Income reclassified from accumulated other comprehensive income (effective portion) "Operating expenses" $ 228 $ 1,023 |
SIGNIFICANT ACCOUNTING POLICI25
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | a. Use of estimates: The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. Management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Financial Statements [Policy Text Block] | b. Financial statements in U.S. dollars ("dollars"): A majority of the Group's revenues is generated in dollars. In addition, most of the Group's costs are denominated and determined in dollars and in new Israeli shekels. Management believes that the dollar is the currency in the primary economic environment in which the Group operates. Thus, the functional and reporting currency of the Group is the dollar. Accordingly, monetary accounts maintained in currencies other than the dollar are remeasured into dollars in accordance with ASC 830, "Foreign Currency Matters". All transaction gains and losses of the remeasured monetary balance sheet items are reflected in the statements of operations as "financial income or expenses", as appropriate |
Consolidation, Policy [Policy Text Block] | c. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany transactions and balances, including profits from intercompany sales not yet realized outside the Group, have been eliminated upon consolidation. |
Cash and Cash Equivalents, Policy [Policy Text Block] | d. Cash equivalents: Cash equivalents represent short-term highly liquid investments that are readily convertible into cash with original maturities of three months or less, at the date acquired. |
Short Term Bank Deposits [Policy Text Block] | Short-term and restricted bank deposits: Short-term and restricted bank deposits are deposits with maturities of more than three months, but less than one year. The deposits are mainly in dollars and bear interest at an average rate of 1.30% and 0.72%, for the years ended December 31, 2015 and 2016, respectively. Short-term and restricted deposits are presented at amortized cost. Any accrued interest on these deposits is included in other receivables and prepaid expenses. In connection with long-term bank loans and their related covenants, the Company is required to maintain compensating balances with the banks and to maintain deposits in the same banks that provided the loans to the Company (see Note 10). In addition, the Company maintains restricted deposits in connection with foreign exchange derivatives and an office lease agreement (see also Note 11a). Out of the short-term and restricted bank deposits, a total of $5,356 and $3,401, are restricted short-term deposits as of December 31, 2015 and 2016, respectively. |
Marketable Securities, Policy [Policy Text Block] | Marketable securities: The Group accounts for investments in debt securities in accordance with ASC 320, "Investments-Debt and Equity Securities". Management determines the appropriate classification of its investments in marketable debt securities at the time of purchase and reevaluates such determinations at each balance sheet date. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization together with interest on securities is included in “financial income (expenses), net”. The Group recognizes an impairment charge when a decline in the fair value of its investments in debt securities below the cost basis of such securities is considered to be other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Group's intent to sell, including whether it is more-likely-than-not that the Group will be required to sell the investment before recovery of cost basis. For securities that are deemed other-than-temporarily impaired, the amount of impairment is recognized in the statements of operations and is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income (loss). For the years ended December 31, 2014, 2015 and 2016, no other-than-temporary impairment losses have been identified. |
Inventory, Policy [Policy Text Block] | g. Inventories: Inventories are stated at the lower of cost or market value. Cost is determined as follows: Raw materials - using the "weighted average cost" method; finished products - using the "weighted average cost" method with the addition of direct manufacturing costs. The Group periodically evaluates the quantities on hand relative to current and historical selling prices, historical and projected sales volume and technological obsolescence. Based on these evaluations, inventory write-offs are taken based on slow moving items, technological obsolescence, excess inventories, discontinuation of products lines, and for market prices lower than cost. |
Long Term Bank Deposits [Policy Text Block] | h. Long-term and restricted bank deposits: Bank deposits and the related accrued interest with maturities of more than one year are included in long-term investments and presented at their cost. Accrued interest that is payable within a one-year period is included in other receivables and prepaid expenses. The deposits are denominated in dollars and bear interest at an average rate of 1.00% and 1.50%, for the years ended December 31, 2015 and 2016, respectively. In connection with the long-term bank loans, the Company is required to maintain compensating balances with the banks (see also Note 10). Out of the total long-term bank deposits, a total of $3,034 and $5,407, are restricted long-term deposits as of December 31, 2015 and 2016, respectively. |
Property, Plant and Equipment, Policy [Policy Text Block] | i. Property and equipment: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets, at the following annual rates: Computers and peripheral equipment 33% Office furniture and equipment 6% 20% (mainly 15%) Leasehold improvements Over the shorter of the term of the The Group's long-lived assets are reviewed for impairment in accordance with ASC 360-10-35, "Property, Plant and Equipment - Subsequent Measurement", whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. Recoverability of assets (asset group) to be held and used is measured by a comparison of the carrying amount of an asset (asset group) to the future undiscounted cash flows expected to be generated by the asset if such assets are considered to be impaired. The impairment to be recognized is measured by the amount by which the carrying amount of the assets (asset groups) exceeds the fair value of the assets (asset groups). During the years ended December 31, 2014, 2015 and 2016, no impairment losses had been identified for property and equipment. |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | j. Intangible assets: Intangible assets are comprised of acquired technology, customer relations and licenses. Intangible assets that are not considered to have an indefinite useful life are amortized using the straight-line basis over their estimated useful lives, which range from four and a half to ten years. Recoverability of these assets is measured by a comparison of the carrying amount of the asset to the undiscounted future cash flows expected to be generated by the assets. If the assets are considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired assets. During the years ended December 31, 2014, 2015 and 2016, no impairment losses were identified. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | k. Goodwill: Goodwill and certain other purchased intangible assets have been recorded as a result of acquisitions. Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill is not amortized, but rather is subject to an impairment test. The Group performs an annual impairment test during the fourth quarter of each fiscal year, or more frequently if impairment indicators are present. The Group operates in one operating segment, and this segment comprises its only reporting unit. ASC 350, "Intangibles Goodwill and Other", prescribes a two-phase process for impairment testing of goodwill. The first phase screens for impairment, while the second phase (if necessary) measures impairment. Goodwill impairment is deemed to exist if the net book value of a reporting unit exceeds its estimated fair value. In such case, the second phase is then performed, and the Group measures impairment by comparing the carrying amount of the reporting unit's goodwill to the implied fair value of that goodwill. An impairment loss is recognized in an amount equal to the excess. The Group has an option to perform a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount prior to performing the two-step goodwill impairment test. If this is the case, the two-step goodwill impairment test is required. If it is more-likely-than-not that the fair value of a reporting unit is greater than its carrying amount, the two-step goodwill impairment test is not required. For each of the three years in the period ended December 31, 2016, the Group performed an annual impairment analysis, using market capitalization, and no impairment losses have been identified. |
Revenue Recognition, Policy [Policy Text Block] | l. Revenue recognition: The Group generates its revenues primarily from the sale of products through a direct sales force and sales representatives. The Group's products are delivered to its customers, which include original equipment manufacturers, network equipment providers, systems integrators and distributors in the telecommunications and networking industries, all of whom are considered end-users. Revenues from products and services are recognized in accordance with ASC 605, "Revenue Recognition" ("ASC 605"), when the following criteria are met: persuasive evidence of an arrangement exists, delivery of the product has occurred, the fee is fixed or determinable, and collectability is reasonably assured. The Group has no remaining obligation to customers after the date on which products are delivered other than pursuant to warranty obligations and right of return. In a multiple element arrangement, Accounting Standards Update ("ASU") 2009-13, Topic 605, "Multiple-Deliverable Revenue Arrangements" requires the allocation of arrangement consideration to each deliverable to be based on the relative selling price. The selling price for a deliverable is based on its vendor-specific objective evidence ("VSOE") if available, third-party evidence ("TPE") if VSOE is not available, or estimated selling price ("ESP") if neither VSOE nor TPE is available. The Group then recognizes revenue on each deliverable in accordance with its policies for product and service revenue recognition. VSOE of selling price is based on the price charged when the element is sold separately. In determining VSOE, the Group requires that a substantial majority of the selling prices fall within a narrow range based on stand-alone rates. TPE of selling price is established by evaluating largely interchangeable competitor products or services in stand-alone sales to similarly situated customers. However, as the Group's products contain a significant element of proprietary technology and its solutions offer substantially different features and functionality, the comparable pricing of products with similar functionality typically cannot be obtained. Additionally, as the Group is unable to reliably determine what competitor’s products' selling prices are on a stand-alone basis, the Group is not typically able to determine TPE. The ESP is established considering multiple factors including, but not limited to, pricing practices in different geographical areas and through different sales channels, gross margin objectives, internal costs, competitors' pricing strategies, and industry technology lifecycles. The selling price of the products and professional services was based on ESP. Maintenance selling price was based on either VSOE or ESP. The Group limits the amount of revenue recognition for delivered elements to the amount that is not contingent on the future delivery of products or services or subject to customer- specific return or refund privileges. The Group evaluates each deliverable in an arrangement to determine whether they represent separate units of accounting. The Group grants to certain customers a right of return or the ability to exchange a specific percentage of the total price paid for products they have purchased over a limited period for other products. The Group maintains a provision for product returns and exchanges and other incentives based on its experience with historical sales returns, analysis of credit memo data and other known factors, in accordance with ASC 605. The provision was deducted from revenues and amounted to $1,737 and $1,948, as of December 31, 2015 and 2016, respectively. Revenues from the sale of products which were not yet determined to be final sales due to acceptance provisions are deferred and included in deferred revenues. In cases where collectability is not probable, revenues are deferred and recognized upon collection. Deferred revenues include amounts invoiced to customers for which revenue has not yet been recognized. |
Standard Product Warranty, Policy [Policy Text Block] | m. Warranty costs: The Group usually provides a warranty period of 12 months at no extra charge. The Group estimates the costs that may be incurred under its basic limited warranty and records a liability in the amount of such costs at the time product revenue is recognized. Factors that affect the Group's warranty liability include the number of installed units, historical and anticipated rates of warranty claims, and cost per claim. The Group periodically assesses the adequacy of its recorded warranty liability and adjusts the amount as necessary. As of December 31, 2015 and 2016, the provision for warranty amounted to $407 and $349, respectively. |
Research and Development Expense, Policy [Policy Text Block] | n. Research and development costs: ASC 985-20, "Costs of Software to Be Sold, Leased, or Marketed", requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. Based on the Company's product development process, technological feasibility is established upon the completion of a working model. The Company does not incur material costs between the completion of a working model and the point at which the products are ready for general release. Therefore, research and development costs are charged to the consolidated statement of operations as incurred. Participation grants from the Israel National Authority for Technology and Innovation (formerly known as the Office of the Chief Scientist) of the Israeli Ministry of Economy and Industry, ("NATI") for research and development activity are recognized at the time the Company is entitled to such grants on the basis of the costs incurred and included as a deduction of research and development costs. Research and development grants recognized during the years ended December 31, 2014, 2015 and 2016 were $3,871, $5,448 and $7,335, respectively. |
Income Tax, Policy [Policy Text Block] | o. Income taxes: The Group accounts for income taxes in accordance with ASC 740, "Income Taxes", ("ASC 740"). ASC 740 prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and for carry forward tax losses. Deferred taxes are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Group records a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value if it is more-likely-than-not that some portion or all of the deferred tax asset will not be realized. In addition, ASC 740 prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The first step is to evaluate the tax position taken or expected to be taken in a tax return. This is done by determining if the weight of available evidence indicates that it is more-likely-than-not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Group accounts for deferred income taxes in accordance with ASU 2015-17 which require that all deferred tax liabilities and assets be classified as noncurrent in the consolidated balance sheet. Interest and penalties assessed by taxing authorities on an underpayment of income taxes are included as a component of income tax expense in the consolidated statements of operations. |
Comprehensive Income, Policy [Policy Text Block] | p. Accumulated other comprehensive income (loss) ("AOCI"): The Company accounts for comprehensive income in accordance with ASC topic 220, "Comprehensive Income". This statement establishes standards for the reporting and display of comprehensive income (loss) and its components in a full set of general purpose financial statements. Comprehensive income (loss) generally represents all changes in shareholders' equity during the period except those resulting from investments by, or distributions to, shareholders. Unrealized Unrealized Total Balance as of January 1, 2016 $ (410 ) $ 273 $ (137 ) Other comprehensive income before reclassifications 376 608 984 Amounts reclassified from AOCI (27 ) (1,023 ) (1,050 ) Other comprehensive income (loss) 349 (415 ) (66 ) Balance as of December 31, 2016 $ (61 ) $ (142 ) $ (203 ) The effects on net income of amounts reclassified from AOCI for the year ended December 31, 2016 derive from realized gains on cash flow hedges recorded in operating expenses and from realized gains on available-for sale marketable securities recorded in financial expenses (income). |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | q. Concentrations of credit risk: Financial instruments that potentially subject the Group to concentrations of credit risk consist principally of cash and cash equivalents, bank deposits, trade receivables, marketable securities and foreign currency derivative contracts. The majority of the Group's cash and cash equivalents, bank deposits and foreign currency derivative contracts are invested in dollar instruments with major banks in Israel and the United States. Deposits in U.S. banks are federally insured up to $250 per account. Such investments in the United States may be in excess of insured limits and are not insured in other jurisdictions. Management believes that the financial institutions that hold the Group's investments are corporations with high credit standing. Accordingly, management believes that low credit risk exists with respect to these financial investments. Marketable securities include investments in dollar-linked corporate bonds. Marketable securities consist of highly liquid debt instruments with high credit standing. The Company’s investment policy, approved by the Board of Directors, limits the amount the Group may invest in any one type of investment or issuer, thereby reducing credit risk concentrations. Management believes that the portfolio is well diversified and, accordingly, minimal credit risk exists with respect to these marketable debt securities. The trade receivables of the Group are derived from sales to customers located primarily in the Americas, the Far East, Israel and Europe. Under certain circumstances, the Group may require letters of credit, other collateral, additional guarantees or advance payments. Regarding certain credit balances, the Group is covered by foreign trade risk insurance. The Group performs ongoing credit evaluations of its customers and establishes an allowance for doubtful accounts based upon a specific review. |
Earnings Per Share, Policy [Policy Text Block] | r. Basic and diluted earnings (loss) per share: Basic earnings (loss) per share are computed based on the weighted average number of ordinary shares outstanding during each year. Diluted earnings (loss) per share are computed based on the weighted average number of ordinary shares outstanding during each year, plus potential dilutive ordinary shares considered outstanding during the year, in accordance with ASC 260, "Earnings per Share". Certain outstanding stock options, restricted share units ("RSUs") and warrants have been excluded from the calculation of the diluted earnings per share since such securities are anti-dilutive for all years presented. The total weighted average number of shares related to the outstanding options, RSUs and warrants that have been excluded from the calculation of diluted earnings (loss) per share was 954,823, 2,250,433 and 1,927,281 for the years ended December 31, 2014, 2015 and 2016, respectively. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | s. Accounting for stock-based compensation: The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation-Stock Compensation" ("ASC 718"). ASC 718 requires companies to estimate the fair value of stock-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company's consolidated statement of operations. The Company recognizes compensation expenses for the value of its awards based on the accelerated method over the requisite service period of each of the awards. Prior to January 1, 2016, stock-based compensation expense was recorded net of estimated forfeitures in the Company’s consolidated statements of operations and, accordingly, was recorded for only those stock-based awards that the Company expected to vest. The Company applies ASC 718 and ASC 505-50, "Equity-Based Payments to Non-Employees" ("ASC 505-50") with respect to options and warrants issued to non-employees. Accordingly, the Company uses option valuation models to measure the fair value of the options and warrants at the measurement date as defined in ASC 505-50. The Company performed-based options are subject to certain performance criteria; accordingly, compensation expense is recognized for such awards when it becomes probable that the related performance condition will be satisfied. The Company recognizes compensation expenses for the value of awards granted based on the accelerated method for performance-based awards. The weighted-average estimated fair value of employee stock options granted during the years ended December 31, 2014, 2015 and 2016, was $2.97, $2.04 and $2.01 per share, respectively, using the Black-Scholes option pricing formula. Fair values were estimated using the following weighted-average assumptions (annualized percentages): Year Ended December 31, 2014 2015 2016 Dividend yield 0% 0% 0% Expected volatility 54.8%-59.4% 53.32%-55.86% 47.64%-52.95% Risk-free interest 1.48%-1.86% 1.14%-1.74% 1.11%-1.86% Expected life 4.74-5.43 years 4.75-5.43 years 4.76-5.30 years Forfeiture rate 4.0% 4.0% 0% The Company used its historical volatility in accordance with ASC 718. The computation of volatility uses historical volatility derived from the Company's exchange traded shares. The expected term of options granted is estimated based on historical experience and represents the period of time that options granted are expected to be outstanding. The risk free interest rate assumption is the implied yield currently available on United States treasury zero-coupon issues with a remaining term equal to the expected life of the Company's options. The dividend yield assumption is based on the Company's historical experience and expectation of no future dividend payouts and may be subject to substantial change in the future. The Company has historically not paid cash dividends and has no foreseeable plans to pay cash dividends in the future. The Company estimated the forfeiture rate based on historical forfeitures of equity awards and adjusted the rate to reflect changes in facts and circumstances, if any. The Company revised its estimated forfeiture rate if actual forfeitures differed from its initial estimates. Effective as of January 1, 2016, the Company adopted a change in accounting policy in accordance with Accounting Standards Update 2016-09, “Compensation Stock Compensation (Topic 718)” (“ASU 2016-09”) to account for forfeitures as they occur. The change was applied on a modified retrospective basis with a cumulative effect adjustment to retained earnings of $131 thousand (which increased the accumulated deficit) as of January 1, 2016. No prior periods were recast as a result of this change in accounting policy. The total stock-based compensation expenses relating to all of the Company's stock-based awards recognized for the years ended December 31, 2014, 2015 and 2016 were included in items of the consolidated statements of operations, as follows: Year Ended December 31, 2014 2015 2016 Cost of revenues $ 89 $ 101 $ 118 Research and development expenses, net 585 429 459 Selling and marketing expenses 1,105 1,061 1,101 General and administrative expenses 767 782 736 Total stock-based compensation expenses $ 2,546 $ 2,373 $ 2,414 |
Treasury Stock [Policy Text Block] | t. Treasury stock: The Company has repurchased its ordinary shares from time to time in the open market or, in 2016, pursuant to a self-tender offer in Israel and the U.S., and holds such repurchased shares as treasury stock. The Company presents the cost to repurchase treasury stock as a reduction of shareholders' equity. See also Note 12a. |
Severance Pay [Policy Text Block] | u. Severance pay: The liability for severance pay for Israeli employees is calculated pursuant to Israel's Severance Pay Law, 1963, based on the most recent salary of the employees multiplied by the number of years of employment as of the balance sheet date for all employees in Israel. Employees who have been employed for more than a one-year period are entitled to one month's salary for each year of employment or a portion thereof. The Group's liability for all of its Israeli employees is fully provided for by monthly deposits with severance pay funds, pension funds, insurance policies and by an accrual. The value of these deposits is recorded as an asset in the Company's consolidated balance sheet. The deposited funds include profits accumulated up to the consolidated balance sheets date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israel's Severance Pay Law, 1963 or labor agreements. Since March 2011, the Group's agreements with new Israeli employees are under Section 14 of the Israeli Severance Pay Law, 1963. The Group's contributions for severance pay have replaced its severance obligation. Upon contribution of the full amount of the employee's monthly salary for each year of service, no additional calculations are conducted between the parties regarding the matter of severance pay and no additional payments are made by the Group to the employee. The Group is legally released from the obligations to employees once the deposit amounts have been paid, and therefore the severance pay liability is not reflected in the balance sheet. Severance pay expenses for the years ended December 31, 2014, 2015 and 2016, amounted to $1,961, $2,153 and $3,217, respectively. |
Employee Benefit Plan [Policy Text Block] | v. Employee benefit plan: The Group has 401(k) defined contribution plans covering employees in the U.S. All eligible employees may elect to contribute a portion of their annual compensation to the plan through salary deferrals, subject to the IRS limit of $18 during the years ended December 31, 2015 and 2016, plus a catch-up contribution of $6 for participants age 50 or over. The Group matches 50% of employees’ contributions, up to a maximum of 6% of the employees' annual pay. In the years ended December 31, 2014, 2015 and 2016, the Group matched contributions in the amount of $284, $287 and $286, respectively. |
Advertising Costs, Policy [Policy Text Block] | w. Advertising expenses: Advertising expenses are charged to the statements of operations as incurred. Advertising expenses for the years ended December 31, 2014, 2015 and 2016 amounted to $562, $604 and $687, respectively. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | x. Fair value of financial instruments: The estimated fair value of financial instruments has been determined by the Group using available market information and valuation methodologies. Considerable judgment is required in estimating fair values. Accordingly, the estimates may not be indicative of the amounts the Group could realize in a current market exchange. The following methods and assumptions were used by the Group in estimating its fair value disclosures for financial instruments: The carrying amounts of cash and cash equivalents, short-term bank deposits, trade receivables, trade payables, other receivables and other payables and accrued expenses approximate their fair value due to the short-term maturity of such instruments. The fair value of long-term bank loans also approximates their carrying value, since they bear interest at rates close to the prevailing market rates. The fair value of foreign currency contracts is estimated by obtaining current quotes from banks and market observable data of similar instruments. The fair value of marketable securities is estimated by obtaining the fair value of the marketable securities from the bank, which is based on current quotes and market value provided by external service providers. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC 820, "Fair Value Measurements and Disclosures" ("ASC 820") establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets Level 2 - Observable inputs, other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data Level 3 - Unobservable inputs which are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. See also Note 8. |
Derivatives, Methods of Accounting, Hedging Derivatives [Policy Text Block] | y. Derivatives and hedging: The Group accounts for derivatives and hedging based on ASC 815, "Derivatives and Hedging" ("ASC 815"). The Group accounts for its derivative instruments as either assets or liabilities and carries them at fair value. Derivative instruments that are not designated and qualified as hedging instruments must be adjusted to fair value through earnings. The changes in fair value of such instruments are included as earnings in "Financial income (expenses), net" at each reporting period. For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income (loss) in equity and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings and is classified as payroll and rent expenses. The ineffective portion of the gain or loss on the derivative instrument is recognized in current earnings and classified as "financial income or expenses". To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. |
New Accounting Pronouncements, Policy [Policy Text Block] | z. Impact of recently issued accounting pronouncements: In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09"). Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has recently issued several amendments to the standard, including clarification on identifying performance obligations. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). The Company currently anticipates adopting the standard using the modified retrospective method rather than full retrospective method. The new standard will be effective for the Company beginning January 1, 2018, and adoption as of the original effective date of January 1, 2017 is permitted. The Company will adopt the new standard as of January 1, 2018. The Company has made progress toward completing its evaluation of the potential changes from adopting this new standard on its financial reporting and disclosures. The Company has evaluated the impact of the standard on majority of its revenue streams and associated contracts. The Company formed an implementation work group and expects to complete the evaluation of the impact of the accounting and disclosure changes on its business processes, controls and systems throughout 2017, design any changes to such business processes, controls and systems, and implement the changes before the end of 2017. Currently, the Company is analyzing the impact that the adoption of the standard will have on specific performance obligations and variable consideration transactions. In addition, incremental costs that are related to sales commission from contracts signed during the period would require capitalization. The company also will consider if there is a significant financing component if the time between payment and delivery is more than one year. The Company continues to assess all potential impacts under the new revenues standard. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), whereby, lessees will be required to recognize for all leases at the commencement date a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. A modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements must be applied. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Companies may not apply a full retrospective transition approach. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018. Early application is permitted. The Company is evaluating the potential impact of this pronouncement. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses (Topic 326)" ("ASU 2016-13"). ASU 2016-13 requires that financial assets measured at amortized cost be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. ASU 2016-13 will become effective for the Company for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact of the guidance on its consolidated financial statements. In August 2016, FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This update will make eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. The update is effective for fiscal years beginning after December 15, 2017. The new standard will require adoption on a retrospective basis unless it is impracticable to apply, in which case it would be required to apply the amendments prospectively as of the earliest date practicable. The Company is currently evaluating the effect of this update on its financial statements and related disclosures. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Amendment to Restricted Cash, on the classification and presentation of changes in restricted cash on the statement of cash flows. Amounts generally described as restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the effect of this update on its financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" ("ASU 2017-04"). ASU 2017-04 eliminates the requirement to measure the implied fair value of goodwill by assigning the fair value of a reporting unit to all assets and liabilities within that unit (the "Step 2 test") from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited by the amount of goodwill in that reporting unit. ASU 2017-04 will become effective for the Company beginning January 1, 2020 and must be applied to any annual or interim goodwill impairment assessments after that date. Early adoption is permitted. The Company is currently evaluating the effect that the adoption of ASU 2017-04 will have on its consolidated financial statements. |
SIGNIFICANT ACCOUNTING POLICI26
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Property Plant And Equipment Estimated Useful Lives [Table Text Block] | Depreciation is calculated by the straight-line method over the estimated useful lives of the assets, at the following annual rates: Computers and peripheral equipment 33% Office furniture and equipment Leasehold improvements |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The components of AOCI were as follows: Unrealized (losses) on available- for-sale Unrealized Total Balance as of January 1, 2016 $ (410 ) $ 273 $ (137 ) Other comprehensive income before reclassifications 376 608 984 Amounts reclassified from AOCI (27 ) (1,023 ) (1,050 ) Other comprehensive income (loss) 349 (415 ) (66 ) Balance as of December 31, 2016 $ (61 ) $ (142 ) $ (203 ) |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Fair values were estimated using the following weighted-average assumptions (annualized percentages): Year Ended December 31, 2014 2015 2016 Dividend yield 0% 0% 0% Expected volatility 54.8%-59.4% 53.32%-55.86% 47.64%-52.95% Risk-free interest 1.48%-1.86% 1.14%-1.74% 1.11%-1.86% Expected life 4.74-5.43 years 4.75-5.43 years 4.76-5.30 years Forfeiture rate 4.0% 4.0% 0% |
Schedule Of Equity Based Compensation Expenses [Table Text Block] | Year Ended December 31, 2014 2015 2016 Cost of revenues $ 89 $ 101 $ 118 Research and development expenses, net 585 429 459 Selling and marketing expenses 1,105 1,061 1,101 General and administrative expenses 767 782 736 Total stock-based compensation expenses $ 2,546 $ 2,373 $ 2,414 |
ACQUISITION OF ACTIVE COMMUNI27
ACQUISITION OF ACTIVE COMMUNICATIONS EUROPE. (''ACS'') (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the acquisition date: Current assets $ 305 Property and equipment 20 Technology 1,917 Customer relationships 312 Total identifiable assets acquired 2,554 Current liabilities (361) Deferred tax liability (557) Total identifiable liabilities assumed (918) Net identifiable assets acquired 1,636 Goodwill 2,473 Net assets acquired $ 4,109 |
MARKETABLE SECURITIES AND ACC28
MARKETABLE SECURITIES AND ACCRUED INTEREST (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Marketable Securities and Accrued Interest [Abstract] | |
Available-for-sale Securities [Table Text Block] | The following is a summary of available for sale marketable securities: December 31, 2015 Amortized Unrealized Unrealized Fair cost gains losses Value Corporate bonds: Maturing within one year $ 1,997 $ - $ (4) $ 1,993 Maturing between one to five years 50,700 7 (413) 50,294 Accrued interest 487 - - 487 $ 53,184 $ 7 $ (417) $ 52,774 December 31, 2016 Amortized Unrealized Unrealized Fair cost gains losses Value Corporate bonds: Maturing within one year $ 6,479 $ 4 $ (5) $ 6,478 Maturing between one to five years 29,602 32 (94) 29,540 Accrued interest 300 - - 300 $ 36,381 $ 36 $ (99) $ 36,318 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Product Information [Table Text Block] | December 31, 2015 2016 Raw materials $ 6,687 $ 5,779 Finished products 10,091 10,554 $ 16,778 $ 16,333 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | December 31, 2015 2016 Cost: Computers and peripheral equipment $ 27,495 $ 28,799 Office furniture and equipment 11,593 11,707 Leasehold improvements 3,354 3,395 42,442 43,901 Accumulated depreciation: Computers and peripheral equipment 25,833 27,104 Office furniture and equipment 10,264 10,501 Leasehold improvements 2,255 2,429 38,352 40,034 Depreciated cost $ 4,090 $ 3,867 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Useful life December 31, (years) 2015 2016 a. Impaired cost: Acquired technology and license 5 - 10 $ 19,857 $ 19,857 Customer relationship 4.5 - 9 4,750 4,750 24,607 24,607 Accumulated amortization: Acquired technology and license 16,240 17,292 Customer relationship 4,343 4,483 20,583 21,775 Amortized cost $ 4,024 $ 2,832 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Expected amortization expenses are as follows: Year ending December 31, 2017 $ 835 2018 749 2019 354 2020 334 Thereafter 560 $ 2,832 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The Group's financial assets and liabilities measured at fair value on a recurring basis, consisted of the following types of instruments as of the following dates: December 31, 2015 Fair value measurements using input type Level 2 Level 3 Total Financial assets related to foreign currency derivative hedging contracts $ 101 $ - $ 101 Marketable securities 52,774 - 52,774 Contingent consideration related to Mailvision - (228) (228) Earn-Out liability related to the acquisition of ACS - (2,109) (2,109) Total financial net assets (liabilities) $ 52,875 $ (2,337) $ 50,538 December 31, 2016 Fair value measurements using input type Level 2 Level 3 Total Financial liabilities related to foreign currency derivative hedging contracts $ (142) $ - $ (142) Marketable securities 36,318 - 36,318 Earn-Out liability related to the acquisition of ACS - (487) (487) Total financial net assets (liabilities) $ 36,176 $ (487) $ 35,689 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Fair value measurements using significant unobservable inputs (Level 3): Balance at January 1, 2016 $ (2,337) Payment of MV Earn Out liability 233 Adjustment due to change in the forecast of earn-out consideration 1,674 Adjustment due to time change value (57) Balance at December 31, 2016 $ (487) |
OTHER PAYABLES AND ACCRUED EX33
OTHER PAYABLES AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Schedule Of Other Payables And Accrued Expenses [Text Block] | December 31, 2015 2016 Payroll and other employee related accruals $ 3,474 $ 4,214 Vacation accrual 2,931 3,096 Royalties provision 966 1,170 Government authorities 288 979 Accrued expenses 9,864 8,517 Others 428 642 $ 17,951 $ 18,618 |
COMMITMENTS AND CONTINGENT LI34
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum rental commitments under non-cancelable operating leases are as follows: Year ending December 31, 2017 $ 6,250 2018 5,835 2019 5,129 2020 5,023 2021 and thereafter 16,510 Total minimum lease payments *) $ 38,747 *) Minimum payments have been reduced by minimum sublease rental of $ 2,801 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following is a summary of the Company's stock option activity and related information for the year ended December 31, 2016: Amount Weighted Weighted Aggregate Options outstanding at beginning of year 3,670,134 $ 4.25 4.3 $ 1,370 Changes during the year: Granted 532,500 $ 4.35 Exercised (651,427) $ 3.09 Forfeited (193,750) $ 4.34 Expired (4,000) $ 2.12 Options outstanding at end of year 3,353,457 $ 4.50 4.1 $ 6,346 Vested and expected to vest 3,353,457 $ 4.50 4.1 $ 6,346 Options exercisable at end of year 1,906,208 $ 4.46 3.1 $ 3,724 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | The following is a summary of the Company's restricted stock units ("RSUs") activity and related information for the year ended December 31, 2016: Number of Weighted RSUs outstanding at beginning of year 298,923 $ 4.25 Changes during the year: Granted 218,740 $ 4.50 Vested (116,629) $ 4.31 Forfeited (7,500) $ 3.54 RSUs outstanding at end of year 393,534 $ 4.38 |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | The following is a summary of warrants issued to non-employees for the year ended December 31, 2016: Number of Weighted Warrants outstanding at beginning of year 65,000 $ 4.435 Changes during the year: Forfeited (60,000) $ 4.38 Warrants outstanding at end of year 5,000 $ 5.00 Warrants exercisable at end of year 2,500 $ 5.00 |
Schedule Of Share Based Compensation Stock Options Outstanding [Table Text Block] | The options and warrants outstanding as of December 31, 2016, have been separated into ranges of exercise prices, as follows: Range of Number of Weighted Weighted Number of Weighted (Years) $ 0.00-1.10 6,250 1.69 $ 0.00 5,500 $ 0.00 $ 1.50-2.51 58,525 2.70 $ 2.09 58,525 $ 2.09 $ 2.57-4.00 1,239,377 3.86 $ 3.47 799,752 $ 3.338 $ 4.03-6.49 1,782,274 4.47 $ 4.95 826,908 $ 5.11 $ 6.51-9.24 272,031 3.07 $ 6.88 218,023 $ 6.95 3,358,457 4.10 $ 4.50 1,908,708 $ 4.47 |
TAXES ON INCOME (Tables)
TAXES ON INCOME (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | b. Income before taxes on income is comprised as follows: Year Ended December 31, 2014 2015 2016 Domestic $ 1,087 $ 1,007 $ 4,151 Foreign 2,218 2,141 3,443 $ 3,305 $ 3,148 $ 7,594 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | c. Taxes on income are comprised as follows: Year Ended December 31, 2014 2015 2016 Current taxes $ 451 $ 806 $ 831 Deferred taxes expense (income) 2,940 1,976 (9,475) $ 3,391 $ 2,782 $ (8,644) Domestic $ 2,122 $ 1,458 $ (6,576) Foreign 1,269 1,324 (2,068) $ 3,391 $ 2,782 $ (8,644) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | d. Deferred income taxes: Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Group's deferred tax liabilities and assets are as follows: December 31, 2015 2016 Deferred tax assets: Net operating loss carry-forward $ 47,646 $ 41,781 Reserves and allowances 9,682 8,916 Net deferred tax assets before valuation allowance 57,328 50,697 Less - Valuation allowance (55,112) (39,090) Deferred tax asset $ 2,216 $ 11,607 Deferred tax liability $ (557) $ (473) Deferred tax asset Domestic: 1,141 7,849 Foreign: 1,075 3,758 $ 2,216 $ 11,607 Deferred tax liability Foreign: $ (557) $ (473) |
Schedule Of Income Tax Reconciliation Between Theoretical And Actual Tax Expenses Benefit [Table Text Block] | e. Reconciliation of the theoretical tax expenses: A reconciliation between the theoretical tax expense, assuming all income is taxed at the statutory tax rate applicable to income of the Company, and the actual tax expense (benefit) as reported in the statement of operations is as follows: Year Ended December 31, 2014 2015 2016 Income before taxes, as reported in the consolidated statements of operations $ 3,305 $ 3,148 $ 7,594 Statutory tax rate 26.5 % 26.5 % 25.0 % Theoretical tax expense on the above amount at the Israeli statutory tax rate $ 876 $ 834 $ 1,898 Income tax at rate other than the Israeli statutory tax rate 353 361 (749) Tax advances, withholding tax and non-deductible expenses, including stock-based compensation expenses 897 1,338 744 Losses for which a valuation allowance was provided (utilized) 1,101 209 (11,373) Tax adjustment in respect of different tax rates - - 679 State and Federal taxes 136 137 176 Other 28 (97) (19) Actual tax expense (benefit) $ 3,391 $ 2,782 $ (8,644) |
BASIC AND DILUTED EARNINGS (L37
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Table Text Block] | Year Ended December 31, 2014 2015 2016 Numerator: Net income (loss) $ (86) $ 366 $ 16,238 Denominator: Denominator for basic earnings (loss) per share - weighted average number of ordinary shares, net of treasury stock 42,285,919 40,178,292 35,173,562 Effect of dilutive securities: Employee stock options, warrants and RSU's *) - 386,653 605,292 Denominator for diluted earnings (loss) per share - adjusted weighted average number of shares 42,285,919 40,564,945 35,778,854 *) Antidilutive. |
FINANCIAL INCOME (EXPENSES), 38
FINANCIAL INCOME (EXPENSES), NET (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | Year Ended December 31, 2014 2015 2016 Financial expenses: Loss related to non-hedging derivative instruments $ - $ (230) $ (90) Interest (415) (278) (262) Amortization of marketable securities premiums and accretion of discounts, net (820) (1,094) (853) Exchange rate (722) - (519) Others (205) (286) (283) (2,162) (1,888) (2,007) Financial income - Gain related to non-hedging derivative instruments 196 - - Interest and others 1,770 2,302 1,847 Exchange rate - 28 - 1,966 2,330 1,847 $ (196) $ 442 $ (160) |
GEOGRAPHIC INFORMATION (Tables)
GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | The following presents total revenues for the years ended December 31, 2014, 2015 and 2016 and long-lived assets as of December 31, 2014, 2015 and 2016. 2014 2015 2016 Total Long- Total Long- Total Long- revenues assets revenues assets revenues assets Israel $ 7,994 $ 3,576 $ 6,414 $ 3,836 $ 6,061 $ 3,625 Americas, principally U.S. 76,429 141 72,079 96 74,161 95 Europe 43,989 56 38,873 79 39,134 68 Far East 23,167 83 22,393 79 26,215 79 $ 151,579 $ 3,856 $ 139,759 $ 4,090 $ 145,571 $ 3,867 |
Revenue from External Customers by Products and Services [Table Text Block] | Total revenues from external customers divided on the basis of the Company's product lines are as follows: Year Ended December 31, 2014 2015 2016 Technology $ 19,680 $ 15,965 $ 13,649 Networking 131,899 123,794 131,922 $ 151,579 $ 139,759 $ 145,571 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block] | The fair value of the Group's outstanding derivative instruments and the effect of derivative instruments in cash flow hedging relationship on other comprehensive income for the years ended December 31, 2015 and 2016 are summarized below: Foreign exchange forward December 31, and options contracts Balance sheet 2015 2016 Fair value of foreign exchange forward and options collar (cylinder) contracts "Other receivables and prepaid expenses" $ 291 $ - "Other payables and accrued expenses" $ (189) $ (142) Gains (losses) recognized in other comprehensive income (loss) (effective portion) "Other comprehensive income (loss)" $ 146 $ (415) |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The effect of derivative instruments in cash flow hedging relationship on income for the years ended December 31, 2015 and 2016 is summarized below: Foreign exchange forward Comprehensive Year Ended and options contracts Income (loss) 2015 2016 Comprehensive income from derivatives before reclassifications "Other comprehensive income (loss)" $ 374 $ 608 Income reclassified from accumulated other comprehensive income (effective portion) "Operating expenses" $ 228 $ 1,023 |
GENERAL (Details Textual)
GENERAL (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
May 31, 2016 | May 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | May 31, 2013 | |
Entity-Wide Revenue, Major Customer, Percentage | 16.70% | 15.00% | 14.90% | |||
Acquisition Costs | $ 233 | $ 233 | $ 233 | |||
Net Assets Acquired | $ 4,109 | 3,434 | ||||
Present Value Of Acquisition Cost | $ 221 | |||||
Business Combination Fair Value Of Earn Out Consideration | $ 487 | 2,109 | $ 432 | |||
Fair Value Estimate Not Practicable First Earn Out | $ 228 | |||||
Business Acquisition Percentage Of Outstanding Shares Acquired | 100.00% | |||||
Additional Major Customer [Member] | ||||||
Equity Method Investment, Ownership Percentage | 11.90% | 12.60% | 10.50% | |||
Mailvision Affiliated Company [Member] | ||||||
Equity Method Investment, Ownership Percentage | 29.20% | |||||
Business Combination Wavier Amount Recognized | $ 1,472 | |||||
Business Combination Fair Value Of Sale Options | $ 376 | |||||
Minimum [Member] | ||||||
Entity-Wide Revenue, Major Customer, Percentage | 10.00% |
SIGNIFICANT ACCOUNTING POLICI42
SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Computers and peripheral equipment | |
Disclosure On Annual Depreciation Rate Using Straight Line Method | 33% |
Office furniture and equipment | |
Disclosure On Annual Depreciation Rate Using Straight Line Method | 6% – 20% (mainly 15%) |
Leasehold improvements | |
Disclosure On Annual Depreciation Rate Using Straight Line Method | Over the shorter of the term of the lease or the useful life of the asset |
SIGNIFICANT ACCOUNTING POLICI43
SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Amounts reclassified from AOCI | $ 27 | $ (13) | $ 0 |
AOCI | |||
Balance as of January 1, 2016 | (137) | ||
Other comprehensive income before reclassifications | 984 | ||
Amounts reclassified from AOCI | (1,050) | ||
Other comprehensive income (loss) | (66) | ||
Balance as of December 31, 2016 | (203) | (137) | |
Unrealized (losses) on Available-For-Sale Marketable Securities | AOCI | |||
Balance as of January 1, 2016 | (410) | ||
Other comprehensive income before reclassifications | 376 | ||
Amounts reclassified from AOCI | (27) | ||
Other comprehensive income (loss) | 349 | ||
Balance as of December 31, 2016 | (61) | (410) | |
Unrealized gains (losses) on cash flow hedges | AOCI | |||
Balance as of January 1, 2016 | 273 | ||
Other comprehensive income before reclassifications | 608 | ||
Amounts reclassified from AOCI | (1,023) | ||
Other comprehensive income (loss) | (415) | ||
Balance as of December 31, 2016 | $ (142) | $ 273 |
SIGNIFICANT ACCOUNTING POLICI44
SIGNIFICANT ACCOUNTING POLICIES (Details 2) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Dividend yield | 0.00% | 0.00% | 0.00% |
Forfeiture rate | 0.00% | 4.00% | 4.00% |
Maximum [Member] | |||
Expected volatility | 52.95% | 55.86% | 59.40% |
Risk-free interest | 1.86% | 1.74% | 1.86% |
Expected life | 5 years 3 months 18 days | 5 years 5 months 5 days | 5 years 5 months 5 days |
Minimum [Member] | |||
Expected volatility | 47.64% | 53.32% | 54.80% |
Risk-free interest | 1.11% | 1.14% | 1.48% |
Expected life | 4 years 9 months 4 days | 4 years 9 months | 4 years 8 months 26 days |
SIGNIFICANT ACCOUNTING POLICI45
SIGNIFICANT ACCOUNTING POLICIES (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Total stock-based compensation expenses | $ 2,414 | $ 2,373 | $ 2,546 |
Cost of revenues | |||
Total stock-based compensation expenses | 118 | 101 | 89 |
Research and development expenses, net | |||
Total stock-based compensation expenses | 459 | 429 | 585 |
Selling and marketing expenses | |||
Total stock-based compensation expenses | 1,101 | 1,061 | 1,105 |
General and administrative expenses | |||
Total stock-based compensation expenses | $ 736 | $ 782 | $ 767 |
SIGNIFICANT ACCOUNTING POLICI46
SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Short Term Bank Deposits Bear Interest Average Rate | 0.72% | 1.30% | ||
Restricted Short Term Deposits | $ 3,401 | $ 5,356 | ||
Long Term Bank Deposits Bear Interest Average Rate | 1.50% | 1.00% | ||
Restricted Long Term Deposits | $ 5,407 | $ 3,034 | ||
Revenue from Grants | $ 7,335 | $ 5,448 | $ 3,871 | |
Antidilutive Securities and Outstanding Options, RSUs and Warrants Excluded from Computation of Earings Per Share, Amount | 1,927,281 | 2,250,433 | 954,823 | |
Severance Cost | $ 3,217 | $ 2,153 | $ 1,961 | |
Catch Up Contribution Amount Eligible For Participants With Age 50 Or More | $ 6 | $ 6 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 2.01 | $ 2.04 | $ 2.97 | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Amount | $ 286 | $ 287 | $ 284 | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 6.00% | |||
Advertising Expense | $ 687 | 604 | $ 562 | |
Cash, FDIC Insured Amount | 250 | |||
Internal Revenue Service (IRS) [Member] | ||||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Amount | 18 | 18 | ||
Warranty Reserves [Member] | ||||
Valuation Allowances and Reserves, Balance | 349 | 407 | ||
Allowance for Sales Returns [Member] | ||||
Valuation Allowances and Reserves, Balance | $ 1,948 | $ 1,737 | ||
Accounting Standards Update 2016-09 [Member] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 131 |
ACQUISITION OF ACTIVE COMMUNI47
ACQUISITION OF ACTIVE COMMUNICATIONS EUROPE. (''ACS'') (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill | $ 36,222 | $ 36,222 |
ACTIVE COMMUNICATIONS EUROPE [Member] | ||
Current assets | 305 | |
Property and equipment | 20 | |
Technology | 1,917 | |
Customer relationships | 312 | |
Total identifiable assets acquired | 2,554 | |
Current liabilities | (361) | |
Deferred tax liability | (557) | |
Total identifiable liabilities assumed | (918) | |
Net identifiable assets acquired | 1,636 | |
Goodwill | 2,473 | |
Net assets acquired | $ 4,109 |
ACQUISITION OF ACTIVE COMMUNI48
ACQUISITION OF ACTIVE COMMUNICATIONS EUROPE. (''ACS'') (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | May 31, 2013 | |
Net assets acquired | $ 4,109 | $ 3,434 | |||
Payments to Acquire Businesses, Gross | 2,000 | ||||
Business Combination Fair Value Of Earn Out Consideration | $ 487 | 2,109 | $ 432 | ||
Goodwill | 36,222 | $ 36,222 | |||
Business Combination Acquired Core Technology Useful Life | 7 years | ||||
Business Acquisition Percentage Of Outstanding Shares Acquired | 100.00% | ||||
Earn Out Payment Description | (a) 20% of ACS Products net revenues (the "ACS Revenues") after the first $2,000 ACS Revenues up to an earn-out payment of $2,000, plus (b) an additional amount of 10% of ACS Revenues after the first $20,000 of ACS Revenues (the "ACS Earn-Out"). | ||||
Net Income (Loss) Attributable to Parent, Total | 16,238 | $ 366 | $ (86) | ||
Revaluation of Fair Value of Earn Out Consideration [Member] | |||||
Net Income (Loss) Attributable to Parent, Total | 1,674 | ||||
Minimum [Member] | |||||
Business Combination Customer Relationship Useful Life | 5 years | ||||
Maximum [Member] | |||||
Business Combination Customer Relationship Useful Life | 7 years | ||||
ACTIVE COMMUNICATIONS EUROPE [Member] | |||||
Goodwill | $ 2,473 | ||||
Business Combination, Deferred Payments Current | 500 | ||||
Business Combination, Deferred Payments Noncurrent | $ 500 | ||||
Business Acquisition Deferred Payment Expenses | $ 750 | ||||
ACTIVE COMMUNICATIONS EUROPE [Member] | Subsequent Event [Member] | |||||
Payments to Acquire Businesses, Gross | $ 448 |
MARKETABLE SECURITIES AND ACC49
MARKETABLE SECURITIES AND ACCRUED INTEREST (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Amortized cost | $ 36,381 | $ 53,184 |
Unrealized gains | 36 | 7 |
Unrealized losses | (99) | (417) |
Fair Value | 36,318 | 52,774 |
Corporate Bonds [Member] | Maturing within one year [Member] | ||
Amortized cost | 6,479 | 1,997 |
Unrealized gains | 4 | 0 |
Unrealized losses | (5) | (4) |
Fair Value | 6,478 | 1,993 |
Corporate Bonds [Member] | Maturing between one to five years [Member] | ||
Amortized cost | 29,602 | 50,700 |
Unrealized gains | 32 | 7 |
Unrealized losses | (94) | (413) |
Fair Value | 29,540 | 50,294 |
Accrued interest [Member] | ||
Amortized cost | 300 | 487 |
Unrealized gains | 0 | 0 |
Unrealized losses | 0 | 0 |
Fair Value | $ 300 | $ 487 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory [Line Items] | ||
Raw materials | $ 5,779 | $ 6,687 |
Finished products | 10,554 | 10,091 |
Inventory, Net | $ 16,333 | $ 16,778 |
INVENTORIES (Details Textual)
INVENTORIES (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Inventory [Line Items] | |||
Inventory Write-down | $ 2,173 | $ 724 | $ 82 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, plant and equipment, Cost | $ 43,901 | $ 42,442 |
Accumulated depreciation | 40,034 | 38,352 |
Depreciated cost | 3,867 | 4,090 |
Computers and Peripheral Equipment [Member] | ||
Property, plant and equipment, Cost | 28,799 | 27,495 |
Accumulated depreciation | 27,104 | 25,833 |
Office Furniture And Equipment [Member] | ||
Property, plant and equipment, Cost | 11,707 | 11,593 |
Accumulated depreciation | 10,501 | 10,264 |
Leasehold Improvements [Member] | ||
Property, plant and equipment, Cost | 3,395 | 3,354 |
Accumulated depreciation | $ 2,429 | $ 2,255 |
PROPERTY AND EQUIPMENT, NET (53
PROPERTY AND EQUIPMENT, NET (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Depreciation | $ 1,700 | $ 1,761 | $ 1,874 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets, Gross | $ 24,607 | $ 24,607 |
Finite-Lived Intangible Assets, Accumulated amortization | 21,775 | 20,583 |
Finite-Lived Intangible Assets, Net | 2,832 | 4,024 |
Acquired technology and license [Member] | ||
Finite-Lived Intangible Assets, Gross | 19,857 | 19,857 |
Finite-Lived Intangible Assets, Accumulated amortization | $ 17,292 | $ 16,240 |
Acquired technology and license [Member] | Maximum [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | 10 years |
Acquired technology and license [Member] | Minimum [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | 5 years |
Customer Relationship [Member] | ||
Finite-Lived Intangible Assets, Gross | $ 4,750 | $ 4,750 |
Finite-Lived Intangible Assets, Accumulated amortization | $ 4,483 | $ 4,343 |
Customer Relationship [Member] | Maximum [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 9 years | 9 years |
Customer Relationship [Member] | Minimum [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 4 years 6 months | 4 years 6 months |
INTANGIBLE ASSETS, NET (Detai55
INTANGIBLE ASSETS, NET (Details 1) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
2,017 | $ 835 | |
2,018 | 749 | |
2,019 | 354 | |
2,020 | 334 | |
Thereafter | 560 | |
Finite-Lived Intangible Assets, Net | $ 2,832 | $ 4,024 |
INTANGIBLE ASSETS, NET (Detai56
INTANGIBLE ASSETS, NET (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Amortization of Intangible Assets | $ 1,192 | $ 1,202 | $ 1,356 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Financial assets related to foreign currency derivative hedging contracts | $ 101 | |
Financial liabilities related to foreign currency derivative hedging contracts | $ (142) | |
Marketable securities | 36,318 | 52,774 |
Contingent consideration related to Mailvision | (228) | |
Earn-Out liability related to the acquisition of ACS | (487) | (2,109) |
Total financial net assets (liabilities) | 35,689 | 50,538 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial assets related to foreign currency derivative hedging contracts | 101 | |
Financial liabilities related to foreign currency derivative hedging contracts | (142) | |
Marketable securities | 36,318 | 52,774 |
Contingent consideration related to Mailvision | 0 | |
Earn-Out liability related to the acquisition of ACS | 0 | 0 |
Total financial net assets (liabilities) | 36,176 | 52,875 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial assets related to foreign currency derivative hedging contracts | 0 | |
Financial liabilities related to foreign currency derivative hedging contracts | 0 | |
Marketable securities | 0 | 0 |
Contingent consideration related to Mailvision | (228) | |
Earn-Out liability related to the acquisition of ACS | (487) | (2,109) |
Total financial net assets (liabilities) | $ (487) | $ (2,337) |
FAIR VALUE MEASUREMENTS (Deta58
FAIR VALUE MEASUREMENTS (Details 1) - Fair Value, Inputs, Level 3 [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Balance at January 1, 2016 | $ (2,337) |
Payment of MV Earn Out liability | 233 |
Adjustment due to change in the forecast of earn-out consideration | 1,674 |
Adjustment due to time change value | (57) |
Balance at December 31, 2016 | $ (487) |
OTHER PAYABLES AND ACCRUED EX59
OTHER PAYABLES AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Payroll and other employee related accruals | $ 4,214 | $ 3,474 |
Vacation accrual | 3,096 | 2,931 |
Royalties provision | 1,170 | 966 |
Government authorities | 979 | 288 |
Accrued expenses | 8,517 | 9,864 |
Others | 642 | 428 |
Other Payables And Accrued Expenses | $ 18,618 | $ 17,951 |
LONG-TERM BANK LOANS (Details T
LONG-TERM BANK LOANS (Details Textual) € in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2015EUR (€) | |
Compensating Bank Deposit Included In Short Term Deposit | $ 1,710 | $ 2,643 | ||
Compensating Bank Deposit Included In Long Term Deposit | 4,200 | 2,910 | ||
Compensating Bank Deposit | 5,910 | 5,553 | ||
2015 Loans | ||||
Debt Instrument, Face Amount | $ 3,000 | € 3,000 | ||
Debt Instrument, Frequency of Periodic Payment | 20 equal quarterly installments through December 2020 | |||
2015 Loans | Loans With Israeli Commercial Banks First Principal [Member] | ||||
Debt Instrument, Interest Rate Terms | LIBOR plus 1%-2.5 | |||
2011 Loans | ||||
Debt Instrument, Face Amount | $ 23,750 | |||
Debt Instrument, Maturity Date | Sep. 30, 2017 | |||
2011 Loans | Loans With Israeli Commercial Banks First Principal [Member] | ||||
Debt Instrument, Face Amount | $ 19,850 | |||
Debt Instrument, Interest Rate During Period | 0.50% | |||
Debt Instrument, Interest Rate Terms | LIBOR plus 2.1%-4.35% | |||
2011 Loans | Loans With Israeli Commercial Banks Second Principal [Member] | ||||
Debt Instrument, Face Amount | $ 3,900 | |||
Debt Instrument, Frequency of Periodic Payment | 10 equal semiannual payments | |||
2016 Loans | ||||
Debt Instrument, Face Amount | $ 6,000 | |||
Debt Instrument, Frequency of Periodic Payment | 20 equal quarterly installments through December 2021 | |||
2016 Loans | Loans With Israeli Commercial Banks First Principal [Member] | ||||
Debt Instrument, Interest Rate Terms | LIBOR plus 1.1%-2.5% |
COMMITMENTS AND CONTINGENT LI61
COMMITMENTS AND CONTINGENT LIABILITIES (Details) $ in Thousands | Dec. 31, 2016USD ($) | |
2,017 | $ 6,250 | |
2,018 | 5,835 | |
2,019 | 5,129 | |
2,020 | 5,023 | |
2021 and thereafter | 16,510 | |
Total minimum lease payments | $ 38,747 | [1] |
[1] | Minimum payments have been reduced by minimum sublease rental of $2,801 due in the future under non-cancelable subleases. |
COMMITMENTS AND CONTINGENT LI62
COMMITMENTS AND CONTINGENT LIABILITIES (Details Textual) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 27, 2016 | Nov. 01, 2013 | |
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals | $ 2,801,000 | ||||
Operating Leases, Rent Expense | 5,784,000 | $ 5,930,000 | $ 6,236,000 | ||
Purchase Obligation | $ 15,893,000 | ||||
Claim relating to Termination Of Employment | $ 600,000 | ||||
Lease Agreement Expiration Period | 2,024 | ||||
Maximum Amount Of Royalties To Be Paid Out Of Research And Development Grants Received | 100.00% | ||||
Increased Rate Of Royalties Payable As Percentage On Sales | 1.00% | ||||
Accrued Royalties | $ 999,000 | ||||
Operating Leases, Rent Expense, Sublease Rentals | $ 801,000 | 960,000 | $ 943,000 | ||
Royalty Agreement Terms [Member] | |||||
Contractual Obligation | 52,717,000 | 45,563,000 | |||
Accumulated Royalties | $ 6,186,000 | $ 4,723,000 | |||
Product Manufacturing in Israel [Member] | Minimum [Member] | |||||
rate Of Royalties Payable As Percentage On Sales | 1.30% | ||||
Product Manufacturing in Israel [Member] | Maximum [Member] | |||||
rate Of Royalties Payable As Percentage On Sales | 5.00% | ||||
Product Manufacturing, Outside of Israel [Member] | |||||
Maximum Amount Of Royalties To Be Paid Out Of Research And Development Grants Received | 300.00% | ||||
Lease Agreements [Member] | |||||
Approximate Amount of Lien by Lessor | $ 1,500 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amount of options, Outstanding at beginning of year | 3,670,134 | |
Amount of options, Granted | 532,500 | |
Amount of options, Exercised | (651,427) | |
Amount of options, Forfeited | (193,750) | |
Amount of options, Expired | (4,000) | |
Amount of options, Outstanding at end of year | 3,353,457 | 3,670,134 |
Amount of options, Vested and expected to vest | 3,353,457 | |
Amount of options, exercisable at end of year | 1,906,208 | |
Weighted average exercise price, Outstanding at beginning of year | $ 4.25 | |
Weighted average exercise price, Granted | 4.35 | |
Weighted average exercise price, Exercised | 3.09 | |
Weighted average exercise price, Forfeited | 4.34 | |
Weighted average exercise price, Expired | 2.12 | |
Weighted average exercise price, Options outstanding at end of year | 4.5 | $ 4.25 |
Weighted average exercise price, Vested and expected to vest | 4.5 | |
Weighted average exercise price, Option exercisable at end of year | $ 4.46 | |
Weighted average remaining contractual term, Options outstanding (in years) | 4 years 1 month 6 days | 4 years 3 months 18 days |
Weighted average remaining contractual term, Vested and expected to vest (in years) | 4 years 1 month 6 days | |
Weighted average remaining contractual term, Options exercisable at end of year (in years) | 3 years 1 month 6 days | |
Aggregate intrinsic value, Outstanding | $ 6,346 | $ 1,370 |
Aggregate intrinsic value, Vested and expected to vest | 6,346 | |
Aggregate intrinsic value, Options exercisable at end of year | $ 3,724 |
SHAREHOLDERS' EQUITY (Details 1
SHAREHOLDERS' EQUITY (Details 1) - Restricted Stock Units (RSUs) [Member] | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Stockholders' Equity Note [Line Items] | |
Number of shares, RSUs outstanding at beginning of year | shares | 298,923 |
Number of shares, Granted | shares | 218,740 |
Number of shares, Vested | shares | (116,629) |
Number of shares, Forfeited | shares | (7,500) |
Number of shares, RSUs outstanding at end of year | shares | 393,534 |
Weighted average grant date fair value, RSUs Outstanding at beginning of year | $ / shares | $ 4.25 |
Weighted average grant date fair value, Granted | $ / shares | 4.5 |
Weighted average grant date fair value, Vested | $ / shares | 4.31 |
Weighted average grant date fair value, Forfeited | $ / shares | 3.54 |
Weighted average grant date fair value, RSUs outstanding at end of year | $ / shares | $ 4.38 |
SHAREHOLDERS' EQUITY (Details 2
SHAREHOLDERS' EQUITY (Details 2) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Stockholders' Equity Note [Line Items] | |
Number of shares, Outstanding at beginning of year | shares | 65,000 |
Number of shares, Forfeited | shares | (60,000) |
Number of shares, Warrants outstanding at end of year | shares | 5,000 |
Number of shares, Warrants exercisable at end of year | shares | 2,500 |
Weighted average exercise price, Warrants Outstanding at beginning of year | $ / shares | $ 4.435 |
Weighted average exercise price, Forfeited | $ / shares | 4.38 |
Weighted average exercise price, Warrants outstanding at end of year | $ / shares | 5 |
Weighted average exercise price, Warrants exercisable at end of year | $ / shares | $ 5 |
SHAREHOLDERS' EQUITY (Details 3
SHAREHOLDERS' EQUITY (Details 3) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options outstanding | 3,353,457 | 3,670,134 |
Weighted average exercise price | $ 4.5 | $ 4.25 |
Number of options exercisable | 1,906,208 | |
Weighted average exercise price of exercisable options | $ 4.46 | |
Warrant [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options outstanding | 3,358,457 | |
Weighted average remaining contractual life (in years) | 4 years 1 month 6 days | |
Weighted average exercise price | $ 4.50 | |
Number of options exercisable | 1,908,708 | |
Weighted average exercise price of exercisable options | $ 4.47 | |
Range of Exercise Price 0.00-1.10 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options outstanding | 6,250 | |
Weighted average remaining contractual life (in years) | 1 year 8 months 8 days | |
Weighted average exercise price | $ 0 | |
Number of options exercisable | 5,500 | |
Weighted average exercise price of exercisable options | $ 0 | |
Range of Exercise Price 1.50-2.51 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options outstanding | 58,525 | |
Weighted average remaining contractual life (in years) | 2 years 8 months 12 days | |
Weighted average exercise price | $ 2.09 | |
Number of options exercisable | 58,525 | |
Weighted average exercise price of exercisable options | $ 2.09 | |
Range of Exercise Price 2.57-4.00 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options outstanding | 1,239,377 | |
Weighted average remaining contractual life (in years) | 3 years 10 months 10 days | |
Weighted average exercise price | $ 3.47 | |
Number of options exercisable | 799,752 | |
Weighted average exercise price of exercisable options | $ 3.338 | |
Range of Exercise Price 4.03-6.49 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options outstanding | 1,782,274 | |
Weighted average remaining contractual life (in years) | 4 years 5 months 19 days | |
Weighted average exercise price | $ 4.95 | |
Number of options exercisable | 826,908 | |
Weighted average exercise price of exercisable options | $ 5.11 | |
Range of Exercise Price 6.51-9.24 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options outstanding | 272,031 | |
Weighted average remaining contractual life (in years) | 3 years 25 days | |
Weighted average exercise price | $ 6.88 | |
Number of options exercisable | 218,023 | |
Weighted average exercise price of exercisable options | $ 6.95 |
SHAREHOLDERS' EQUITY (Details T
SHAREHOLDERS' EQUITY (Details Textual) $ / shares in Units, $ in Thousands | Mar. 10, 2014USD ($)$ / sharesshares | Oct. 31, 2016USD ($) | Jun. 16, 2016USD ($)$ / sharesshares | May 31, 2016USD ($) | Jan. 31, 2016USD ($) | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / shares | Dec. 31, 2015USD ($)shares | Jun. 16, 2016₪ / sharesshares |
Class of Stock [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 2.01 | $ 2.04 | $ 2.97 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 2,575 | |||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 11 days | |||||||||
Stock Repurchase Program, Authorized Amount | $ 3,000 | |||||||||
Treasury Stock, Shares | shares | 23,366,490 | 17,168,127 | 17,168,127 | |||||||
Additional Stock Repurchase Program Authorized Amount | $ 15,000 | $ 15,000 | $ 15,000 | $ 30,000 | ||||||
Stock Issued During Period, Shares, New Issues | shares | 4,025,000 | |||||||||
Over-Allotment Option | shares | 525,000 | |||||||||
Share Price | $ / shares | $ 8 | |||||||||
Proceeds from Issuance of Common Stock | $ 29,744 | $ 0 | $ 0 | 29,744 | ||||||
Stock Issuance Costs | $ 2,456 | |||||||||
Legal And Other Expenses | $ 150 | |||||||||
Share Repurchase Program [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | shares | 3,000,000 | 3,000,000 | ||||||||
Treasury Stock, Shares | shares | 3,000,000 | 23,366,490 | 3,000,000 | |||||||
Share Price | (per share) | $ 4.35 | ₪ 0.01 | ||||||||
Stock Redeemed or Called During Period, Value | $ 89,980 | |||||||||
Stock Repurchased and Retired During Period, Value | $ 29,394 | |||||||||
Stock Repurchased and Retired During Period, Shares | shares | 6,198,363 | |||||||||
Restricted Stock Units (RSUs) [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Allocated Share-based Compensation Expense, Net of Tax | $ 803 | 483 | 517 | |||||||
Employee and non-employee Stock Option Plan [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | shares | 1,708,155 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 1,583 | $ 219 | $ 1,870 |
TAXES ON INCOME (Details)
TAXES ON INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Domestic | $ 4,151 | $ 1,007 | $ 1,087 |
Foreign | 3,443 | 2,141 | 2,218 |
Income (loss) before taxes on income | $ 7,594 | $ 3,148 | $ 3,305 |
TAXES ON INCOME (Details 1)
TAXES ON INCOME (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current taxes | $ 831 | $ 806 | $ 451 |
Deferred taxes expense (income) | (9,475) | 1,976 | 2,940 |
Income Tax Expense (Benefit) | (8,644) | 2,782 | 3,391 |
Domestic | (6,576) | 1,458 | 2,122 |
Foreign | (2,068) | 1,324 | 1,269 |
Income Tax Expense (Benefit) | $ (8,644) | $ 2,782 | $ 3,391 |
TAXES ON INCOME (Details 2)
TAXES ON INCOME (Details 2) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Net operating loss carry-forward | $ 41,781 | $ 47,646 |
Reserves and allowances | 8,916 | 9,682 |
Net deferred tax assets before valuation allowance | 50,697 | 57,328 |
Less - Valuation allowance | (39,090) | (55,112) |
Deferred tax asset | 11,607 | 2,216 |
Deferred tax liability | (473) | (557) |
Domestic Tax Authority [Member] | ||
Deferred tax assets: | ||
Deferred tax asset | 7,849 | 1,141 |
Foreign Tax Authority [Member] | ||
Deferred tax assets: | ||
Deferred tax asset | 3,758 | 1,075 |
Deferred tax liability | $ (473) | $ (557) |
TAXES ON INCOME (Details 3)
TAXES ON INCOME (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income before taxes, as reported in the consolidated statements of operations | $ 7,594 | $ 3,148 | $ 3,305 |
Statutory tax rate | 25.00% | 26.50% | 26.50% |
Theoretical tax expense on the above amount at the Israeli statutory tax rate | $ 1,898 | $ 834 | $ 876 |
Income tax at rate other than the Israeli statutory tax rate | (749) | 361 | 353 |
Tax advances, withholding tax and non-deductible expenses, including stock-based compensation expenses | 744 | 1,338 | 897 |
Losses for which a valuation allowance was provided (utilized) | (11,373) | 209 | 1,101 |
Tax adjustment in respect of different tax rates | 679 | 0 | 0 |
State and Federal taxes | 176 | 137 | 136 |
Other | (19) | (97) | 28 |
Actual tax expense (benefit) | $ (8,644) | $ 2,782 | $ 3,391 |
TAXES ON INCOME (Details Textua
TAXES ON INCOME (Details Textual) - USD ($) $ in Thousands | Jan. 02, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2010 |
Unrecognized Tax Benefits Excludes Income Tax Penalties And Interest Accrued | $ 158 | $ 158 | ||||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 9 | 7 | $ 8 | |||||
Unrecognized Tax Benefits, Interest on Income Taxes Expense | $ 228 | $ 219 | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% | 26.50% | 26.50% | |||||
Preferred Enterprise Located in Development Area A[] [Member] | ||||||||
Effective Income Tax Rate Reconciliation, Percent | 7.50% | |||||||
Preferred Enterprise Located in Other Area [Member] | ||||||||
Effective Income Tax Rate Reconciliation, Percent | 16.00% | |||||||
Subsequent Event [Member] | ||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 12.00% | |||||||
Subsequent Event [Member] | Preferred Enterprise Located in Development Area A[] [Member] | ||||||||
Effective Income Tax Rate Reconciliation, Percent | 9.00% | |||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 7.50% | |||||||
Scenario, Forecast [Member] | ||||||||
Effective Income Tax Rate Reconciliation, Percent | 23.00% | 24.00% | ||||||
U S Subsidiaries [Member] | ||||||||
Deferred Tax Assets, Net | $ 3,758 | |||||||
Year 2014 [Member] | ||||||||
Percentage Of Amendment Tax Rate | 9.00% | |||||||
Thereafter [Member] | ||||||||
Percentage Of Amendment Tax Rate | 16.00% | |||||||
U S Federal [Member] | ||||||||
Operating Loss Carryforwards | $ 71,000 | |||||||
Israeli Taxation [Member] | ||||||||
Income Tax Holiday, Description | the Company's income derived from the "Approved Enterprise" will be entitled to a tax exemption for a period of two years and to an additional period of five to eight years of reduced tax rates of 10% - 25% (based on the percentage of foreign ownership). The duration of tax benefits of reduced tax rates is subject to a limitation of the earlier of 12 years from commencement of production, or 14 years from the approval date. The Company utilized tax benefits from the first program in 1998 and has been no longer eligible for benefits since 2007. | |||||||
Tax Exempt Income Earned By Approved Enterprise Of Company Included In Retained Earnings | $ 540 | |||||||
Operating Loss Carryforwards | 5,700 | |||||||
Deferred Tax Assets, Net | $ 7,849 | |||||||
Effective Income Tax Rate Reconciliation, Percent | 25.00% | 26.50% | 26.50% | |||||
Israeli Taxation [Member] | Israeli Subsidiaries [Member] | ||||||||
Operating Loss Carryforwards | $ 67,800 | |||||||
Israeli Taxation [Member] | Minimum [Member] | ||||||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 10.00% | |||||||
Israeli Taxation [Member] | Maximum [Member] | ||||||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 25.00% | |||||||
Accrued Income Taxes, Current | $ 180 | |||||||
State and Local Jurisdiction [Member] | ||||||||
Operating Loss Carryforwards | $ 5,000 |
BASIC AND DILUTED EARNINGS (L73
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Numerator: | ||||
Net income (loss) | $ 16,238 | $ 366 | $ (86) | |
Denominator: | ||||
Denominator for basic earnings (loss) per share - weighted average number of ordinary shares, net of treasury stock | 35,173,562 | 40,178,292 | 42,285,919 | |
Effect of dilutive securities: | ||||
Employee stock options, warrants and RSU's | 605,292 | 386,653 | 0 | [1] |
Denominator for diluted earnings (loss) per share - adjusted weighted average number of shares | 35,778,854 | 40,564,945 | 42,285,919 | |
[1] | Antidilutive. |
FINANCIAL INCOME (EXPENSES), 74
FINANCIAL INCOME (EXPENSES), NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financial expenses: | |||
Loss related to non-hedging derivative instruments | $ (90) | $ (230) | $ 0 |
Interest | (262) | (278) | (415) |
Amortization of marketable securities premiums and accretion of discounts, net | (853) | (1,094) | (820) |
Exchange rate | (519) | 0 | (722) |
Others | (283) | (286) | (205) |
Financial expenses, Total | (2,007) | (1,888) | (2,162) |
Financial income - | |||
Gain related to non-hedging derivative instruments | 0 | 0 | 196 |
Interest and others | 1,847 | 2,302 | 1,770 |
Exchange rate | 0 | 28 | 0 |
Financial income, Total | 1,847 | 2,330 | 1,966 |
Financial Income, Net | $ (160) | $ 442 | $ (196) |
GEOGRAPHIC INFORMATION (Details
GEOGRAPHIC INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | $ 145,571 | $ 139,759 | $ 151,579 |
Long-Lived Assets | 3,867 | 4,090 | 3,856 |
Israel [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 6,061 | 6,414 | 7,994 |
Long-Lived Assets | 3,625 | 3,836 | 3,576 |
Americas principally U.S. [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 74,161 | 72,079 | 76,429 |
Long-Lived Assets | 95 | 96 | 141 |
Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 39,134 | 38,873 | 43,989 |
Long-Lived Assets | 68 | 79 | 56 |
Far East [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 26,215 | 22,393 | 23,167 |
Long-Lived Assets | $ 79 | $ 79 | $ 83 |
GEOGRAPHIC INFORMATION (Detai76
GEOGRAPHIC INFORMATION (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from External Customers | $ 145,571 | $ 139,759 | $ 151,579 |
Networking [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from External Customers | 131,922 | 123,794 | 131,899 |
Technology [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from External Customers | $ 13,649 | $ 15,965 | $ 19,680 |
DERIVATIVE INSTRUMENTS (Details
DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Gains (losses) recognized in other comprehensive income (loss) (effective portion) | $ (415) | $ 146 | $ 127 |
Other Comprehensive Income (Loss) [Member] | |||
Description of Location of Gain (Loss) on Foreign Currency Cash Flow Hedge Derivatives in Financial Statements | Other comprehensive income (loss) | Other comprehensive income (loss) | |
Gains (losses) recognized in other comprehensive income (loss) (effective portion) | $ (415) | $ 146 | |
Other receivables and prepaid expenses [Member] | |||
Description of Location of Foreign Currency Cash Flow Hedge Derivatives on Balance Sheet | Other receivables and prepaid expenses | Other receivables and prepaid expenses | |
Fair value of foreign exchange forward and options collar (cylinder) contracts | $ 0 | $ 291 | |
Other payables and accrued expenses [Member] | |||
Description of Location of Foreign Currency Cash Flow Hedge Derivatives on Balance Sheet | Other payables and accrued expenses | Other payables and accrued expenses | |
Fair value of foreign exchange forward and options collar (cylinder) contracts | $ (142) | $ (189) |
DERIVATIVE INSTRUMENTS (Detai78
DERIVATIVE INSTRUMENTS (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Comprehensive income (loss) from derivatives before reclassifications | $ 608 | $ 374 | $ (367) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | $ 1,023 | $ 228 | $ (494) |
Operating Expense [Member] | |||
Description Of Location Of Foreign Currency Cash Flow Hedge Derivatives On Statement Of Operations | Operating expenses | Operating expenses | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | $ 1,023 | $ 228 | |
Other Comprehensive Income (Loss) [Member] | |||
Description Of Location Of Foreign Currency Cash Flow Hedge Derivatives On Statement Of Operations | Other comprehensive income (loss) | Other comprehensive income (loss) | |
Comprehensive income (loss) from derivatives before reclassifications | $ 608 | $ 374 |
DERIVATIVE INSTRUMENTS (Detai79
DERIVATIVE INSTRUMENTS (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ (90) | $ (230) | $ 196 |
Net Deferred Gain Loss Associated With Cash Flow Hedges Recorded In Other Comprehensive Income | (142) | 273 | |
Derivatives Contracts Outstanding | 27,000 | $ 18,000 | |
Derivative, Forward Contracts Outstanding | $ 0 |