Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2015shares | |
Document and Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2015 |
Entity Registrant Name | Allot Communications Ltd. |
Entity Central Index Key | 1,365,767 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2,015 |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 33,558,102 |
Entity Current Reporting Status | Yes |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 15,470 | $ 19,180 |
Restricted deposit | 203 | |
Short-term bank deposits | 42,700 | $ 59,000 |
Available-for-sale marketable securities | 64,921 | 54,271 |
Trade receivables (net of allowance for doubtful accounts of $657 and $707 at December 31, 2015 and 2014, respectively) | 23,874 | 23,759 |
Other receivables and prepaid expenses | 4,513 | 5,383 |
Inventories | 10,169 | 10,109 |
Total current assets | 161,850 | 171,702 |
NON-CURRENT ASSETS: | ||
Severance pay fund | 282 | 262 |
Deferred taxes | 501 | 1,716 |
Other assets | 2,712 | 4,948 |
Total non-current assets | 3,495 | 6,926 |
PROPERTY AND EQUIPMENT, NET | 5,189 | 5,957 |
INTANGIBLE ASSETS, NET | 6,119 | 7,549 |
GOODWILL | 31,562 | 20,814 |
Total assets | 208,215 | 212,948 |
CURRENT LIABILITIES: | ||
Trade payables | 7,107 | 6,300 |
Employees and payroll accruals | 8,211 | 7,237 |
Deferred revenues | 14,066 | 12,704 |
Other payables and accrued expenses | 5,710 | 7,287 |
Total current liabilities | 35,094 | 33,528 |
LONG-TERM LIABILITIES: | ||
Deferred revenues | 4,912 | 4,158 |
Accrued severance pay | 651 | $ 282 |
Other long term liability | 4,153 | |
Total long-term liabilities | $ 9,716 | $ 4,440 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
SHAREHOLDERS' EQUITY: | ||
Share capital - Ordinary shares of NIS 0.1 par value - Authorized: 200,000,000 shares at December 31, 2015 and 2014; Issued and outstanding: 33,558,102 and 33,319,923 shares at December 31, 2015 and 2014, respectively | $ 837 | $ 819 |
Additional paid-in capital | 259,385 | $ 252,120 |
Treasury stock | (166) | |
Accumulated other comprehensive loss | (470) | $ (1,620) |
Accumulated deficit | (96,181) | (76,339) |
Total shareholders' equity | 163,405 | 174,980 |
Total liabilities and shareholders' equity | $ 208,215 | $ 212,948 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICALS) $ in Thousands | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Allowance for doubtful accounts | $ | $ 657 | $ 707 |
Ordinary shares, shares authorized | 200,000,000 | 200,000,000 |
Ordinary shares, shares issued | 33,558,102 | 33,319,923 |
Ordinary shares, shares outstanding | 33,558,102 | 33,319,923 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||
Products | $ 62,642 | $ 77,240 | $ 66,318 |
Services | 37,325 | 39,946 | 30,227 |
Total revenues | 99,967 | 117,186 | 96,545 |
Cost of revenues: | |||
Products | 26,707 | 27,389 | 20,572 |
Services | 6,720 | 7,350 | 6,246 |
Total cost of revenues | 33,427 | 34,739 | 26,818 |
Gross profit | 66,540 | 82,447 | 69,727 |
Operating expenses: | |||
Research and development (net of grant participations of $1,252, $984 and $1,051 for the years ended December 31, 2015, 2014 and 2013, respectively) | 26,422 | 29,014 | 27,022 |
Sales and marketing | 43,318 | 44,599 | 39,817 |
General and administrative | 12,702 | 11,941 | 9,952 |
Total operating expenses | 82,442 | 85,554 | 76,791 |
Operating loss | (15,902) | (3,107) | (7,064) |
Financial income (expense), net | (584) | 660 | 727 |
Loss before income tax expense | (16,486) | (2,447) | (6,337) |
Income tax expense | 3,356 | 50 | 120 |
Net loss | (19,842) | (2,497) | (6,457) |
Unrealized loss on available-for-sale marketable securities | (261) | (205) | (20) |
Unrealized gain (loss) on foreign currency cash flow hedges transactions | 1,411 | (1,781) | (1,374) |
Total comprehensive loss | $ (18,692) | $ (4,483) | $ (7,851) |
Net loss per share: | |||
Basic and diluted | $ (0.59) | $ (0.08) | $ (0.20) |
Weighted average number of shares used in per share computations of net loss: | |||
Basic and diluted | 33,419,917 | 33,143,168 | 32,680,766 |
CONSOLIDATED STATEMENTS OF COM5
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (PARENTHETICALS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS [Abstract] | |||
Grants participations excluded from research and development costs | $ 1,252 | $ 984 | $ 1,051 |
STATEMENTS OF CHANGES IN SHAREH
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Ordinary shares [Member] | Additional paid-in capital [Member] | Treasury Stock [Member] | Accumulated other comprehensive income (loss) [Member] | Accumulated deficit [Member] | ||
Balance at Dec. 31, 2012 | $ 169,121 | $ 761 | $ 233,985 | $ 1,760 | $ (67,385) | |||
Balance, shares at Dec. 31, 2012 | 32,547,151 | |||||||
Exercise of stock options | $ 926 | $ 13 | 913 | |||||
Exercise of stock options, shares | 329,872 | 329,967 | ||||||
Stock-based compensation | $ 7,731 | $ 7,731 | ||||||
Other comprehensive income (loss) | (1,394) | $ (1,394) | ||||||
Net loss | (6,457) | $ (6,457) | ||||||
Balance at Dec. 31, 2013 | 169,927 | $ 774 | $ 242,629 | $ 366 | $ (73,842) | |||
Balance, shares at Dec. 31, 2013 | 32,877,118 | |||||||
Exercise of stock options | $ 1,476 | $ 45 | 1,431 | |||||
Exercise of stock options, shares | 353,368 | 442,805 | ||||||
Stock-based compensation | $ 8,060 | $ 8,060 | ||||||
Other comprehensive income (loss) | (1,986) | $ (1,986) | ||||||
Net loss | (2,497) | $ (2,497) | ||||||
Balance at Dec. 31, 2014 | $ 174,980 | $ 819 | $ 252,120 | $ (1,620) | $ (76,339) | |||
Balance, shares at Dec. 31, 2014 | 33,319,923 | 33,319,923 | ||||||
Exercise of stock options | $ 132 | $ 18 | 114 | |||||
Exercise of stock options, shares | 103,267 | 263,179 | ||||||
Treasury stock acquired, net | [1] | $ (166) | $ (166) | |||||
Treasury stock acquired, net, shares | (25,000) | (25,000) | [1] | |||||
Stock-based compensation | $ 7,151 | $ 7,151 | ||||||
Other comprehensive income (loss) | 1,150 | $ 1,150 | ||||||
Net loss | (19,842) | $ (19,842) | ||||||
Balance at Dec. 31, 2015 | $ 163,405 | $ 837 | $ 259,385 | $ (166) | $ (470) | $ (96,181) | ||
Balance, shares at Dec. 31, 2015 | 33,558,102 | 33,558,102 | ||||||
[1] | *) net of issuance expenses of $35. |
STATEMENTS OF CHANGES IN SHARE7
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (PARENTHETICALS) - USD ($) $ in Thousands | 24 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated other comprehensive income (loss): | |||
Accumulated unrealized gain (loss) on available-for-sale marketable securities | $ (425) | $ (164) | $ 41 |
Accumulated unrealized gain (loss) on foreign currency cash flows hedge transactions | (45) | (1,456) | 325 |
Accumulated other comprehensive (loss) income | (470) | $ (1,620) | $ 366 |
Issuance costs for issuance of shares capital related to secondary offering | $ 35 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net loss | $ (19,842) | $ (2,497) | $ (6,457) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 5,708 | $ 5,166 | $ 6,338 |
Impairment of intangible assets | 5,777 | ||
Stock-based compensation | 7,170 | $ 8,095 | $ 7,731 |
Capital loss | 328 | 18 | |
Increase (decrease) in accrued severance pay, net | 349 | $ (8) | (13) |
Decrease (increase) in other assets | 1,205 | 100 | (532) |
Decrease in accrued interest and amortization of premium on marketable securities | 967 | 793 | 366 |
Decrease (increase) in trade receivables | (847) | (6,851) | 3,328 |
Increase in other receivables and prepaid expenses | (2,623) | (1,321) | (2,749) |
Decrease (increase) in inventories | (60) | 3,689 | (3,835) |
Decrease (increase) in long-term deferred taxes, net | 1,403 | (224) | (77) |
Increase (decrease) in trade payables | 2,218 | 3,109 | (1,618) |
Increase (decrease) in employees and payroll accruals | 901 | 1,073 | (2,053) |
Increase (decrease) in deferred revenues | 1,961 | 1,911 | (2,823) |
Increase (decrease) in other payables and accrued expenses | $ (429) | $ 2,800 | (988) |
Liability related to settlement of OCS grants | (15,886) | ||
Net cash provided by (used in) operating activities | $ 4,186 | $ 15,835 | (19,250) |
Cash flows from investing activities: | |||
Decrease (increase) in restricted deposits | (203) | $ 146 | |
Investments in short-term bank deposits | (21,700) | $ (50,500) | |
Proceeds from short-term bank deposits | 38,000 | 29,500 | $ 40,042 |
Purchase of property and equipment | (2,223) | (3,391) | (2,706) |
Investment in available-for sale marketable securities | (34,098) | $ (22,736) | (32,805) |
Proceeds from sales of available-for-sale marketable securities | 7,176 | 2,597 | |
Proceeds from maturity of available-for-sale marketable securities | $ 15,045 | $ 8,266 | $ 3,864 |
Loan granted to third party | (2,735) | ||
Repayment of loan to third party | $ 652 | ||
Acquisition of Optenet, net of cash (see schedule A below) | $ (9,859) | ||
Net cash (used in) provided by investing activities | (7,862) | $ (40,944) | $ 11,138 |
Cash flows from financing activities: | |||
Proceeds from exercise of stock options | 132 | $ 1,476 | $ 899 |
Purchase of treasury stock, net | (166) | ||
Net cash provided by (used in) financing activities | (34) | $ 1,476 | $ 899 |
Decrease in cash and cash equivalents | (3,710) | (23,633) | (7,213) |
Cash and cash equivalents at the beginning of the year | 19,180 | 42,813 | 50,026 |
Cash and cash equivalents at the end of the year | 15,470 | 19,180 | 42,813 |
Supplementary cash flow information: | |||
Cash paid (received) during the year for taxes | 139 | $ 82 | $ (9) |
Estimated net fair value of assets acquired and liabilities assumed at the date of acquisition was as follows: | |||
Working capital, net (excluding cash and cash equivalents) | (204) | ||
Equipment and other assets | 152 | ||
Intangible assets | 7,242 | ||
Goodwill | 10,748 | ||
Total consideration | 17,938 | ||
Non cash consideration | (8,079) | ||
Payment for acquisition, net of cash | $ 9,859 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2015 | |
GENERAL [Abstract] | |
GENERAL | NOTE 1: - GENERAL Allot Communications Ltd. (the "Company") was incorporated in November 1996 under the laws of the State of Israel. The Company is engaged in developing, selling and marketing intelligent service optimization and monetization solutions for mobile, fixed and cloud service providers, and enterprises. The Company's flexible and highly scalable service delivery framework, in the form of hardware platforms and software applications, leverages the intelligence in data networks enabling service providers to get closer to their customers; to safeguard network assets and users; and to accelerate time-to-revenue for value-added services. The Company's products consist of the Service Gateway and NetEnforcer service delivery platforms, the NetXplorer and Subscriber Management Platform network management and provisioning suites and value added services such as WebSafe Personal and Business Security solution, Service Protector network protection solution, ClearSee for Network analytics and MediaSwift E and VideoClass for media optimization. The Company's Ordinary Shares are listed in the NASDAQ Global Select Market under the symbol "ALLT" from its initial public offering in November 2006. Since November, 2010, the Company's Ordinary Shares have been listed for trading in the Tel Aviv Stock Exchange as well. The Company holds twelve wholly-owned subsidiaries (the Company together with said subsidiaries shall collectively be referred to as "Allot"): Allot Communications, Inc. in Woburn, Massachusetts, United-States (the "U.S. subsidiary"), which was incorporated in 1997 under the laws of the State of California, Allot Communication Europe SARL in Sophia, France (the "European subsidiary"), which was incorporated in 1998 under the laws of France, Allot Communications Japan K.K. in Tokyo, Japan (the "Japanese subsidiary"), which was incorporated in 2004 under the laws of Japan, Allot Communication (UK) Limited (the "UK subsidiary"), which was incorporated in 2006 under the laws of England and Wales, Allot Communications (Asia Pacific) Pte. Ltd. ("the Singaporean subsidiary"), which was incorporated in 2006 under the laws of Singapore, Allot Communications (New Zealand) Limited. (the "NZ subsidiary"), which was incorporated in 2007 under the laws of New Zealand, Allot India Private Limited. (the "Indian subsidiary”), which was incorporated in 2012 under the laws of India and commenced its activity in 2013, Allot Communications Africa (PTY) Ltd. (the "African subsidiary”), which was incorporated in 2013 under the laws of South Africa. Allot Communications (Hong Kong) Limited (the "HK”), which was incorporated in 2013 under the laws of Hong-Kong. Allot Communications Spain, S.L. Sociedad Unipersonal, which was incorporated in 2015 under the laws of Spain, Allot Communications (Colombia) S.A.S, which was incorporated in 2015 under the laws of Colombia and Allot MexSub, which was incorporated in 2015 under the laws of Mexico. The U.S. subsidiary is engaged in the sale, marketing and technical support and development services in the Americas of products manufactured and imported by the Company. The European, Japanese, NZ, UK, Singaporean, Indian, African, Colombian and Mexican subsidiaries are engaged in marketing and technical support services of the Company's products in Europe, Japan, Oceania, UK, Asia Pacific and Latin America, respectively. The Spanish subsidiary commenced its operations in 2015 and is engaged in the marketing, technical support and development activities of one of the Company's product lines. b. Acquisitions: On March 23, 2015 (the "Optenet acquisition date"), the Company entered into an asset purchase agreement (the "Optenet APA") with the shareholders of Optenet S.A. ("Optenet") a private, global IT security company that develops security solutions for internet service providers and enterprises. The total consideration for the acquisition was $ 17,938 9,859 8,079 7,809 The contingent consideration is payable over a five 27,500 The acquisition was accounted for using the purchase method of accounting in accordance with ASC No. 805, “Business Combinations” ("ASC No. 805"). Accordingly, the purchase price was allocated according to the estimated fair values of the assets acquired and liabilities assumed and the excess of the purchase price over the net tangible and identified intangible assets was assigned to goodwill. The fair value of intangible assets was determined by management with the assistance of a third party valuation. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date: Fair value Current assets $ 54 Equipment 152 Deferred revenues (155 ) Current and non-current liabilities (103 ) Technology 4,032 Customer relationships 2,824 Backlog 386 Goodwill 10,748 Net assets acquired $ 17,938 Technology includes security solutions for internet service providers and enterprises such as encompass parental control, anti-malware and anti-spam products. The technology is amortized over the estimated useful life of 4.34 Backlog 2.8 Customer relationships 4.8 The Company acquisition transaction costs amounted to $ 397 Unaudited pro forma condensed results of operations: The following represents the unaudited consolidated pro forma revenue and net loss for the years ended December 31, 2015 and 2014, to give effect to the acquisition of Optenet as if it had occurred on January 1, 2014. The pro forma information is not necessarily indicative of the results of operations that would have been had the acquisition actually occurred on January 1, 2014, nor does it purport to represent the results of operations for future periods. Year ended December 31, 2015 2014 Unaudited Revenues $ 100,683 $ 124,244 Net loss $ (21,177 ) $ (17,976 ) |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2: - SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("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. The Company's 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: The majority of the revenues of the Company and its subsidiaries are generated in U.S. dollars ("dollar") or linked to the dollar. In addition, a major portion of the Company's and certain of its subsidiaries' costs are incurred or determined in dollars. The Company's management believes that the dollar is the currency of the primary economic environment in which the Company and its subsidiaries operate. Thus, the functional and reporting currency of the Company and its subsidiaries is the dollar. Accordingly, monetary accounts maintained in currencies other than the dollar are remeasured into U.S. dollars in accordance with Accounting Standards Codification No. 830, "Foreign Currency Matters" ("ASC No. 830"). All transactions gains and losses from the remeasurement of 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 subsidiaries. Intercompany balances and transactions have been eliminated upon consolidation. d. Cash and cash equivalents: The Company considers all unrestricted highly liquid investments which are readily convertible into cash, with maturity of three months or less at the date of acquisition, to be cash equivalents. e. Restricted deposits: The restricted deposits are held in favor of financial institutions in respect of fulfillments of forward contract and operating obligations. f. Short-term bank deposits: Short-term bank deposits are deposits with maturities of more than three months but less than one year at the balance sheet date. The deposits are in dollars and bear interest at annual weighted average rate of 0.93 0.56 g. Marketable securities: The Company accounts for investments in marketable securities in accordance with ASC 320, "Investments - Debt and Equity Securities". Management determines the appropriate classification of its investments in debt securities at the time of purchase and re-evaluates such determinations at each balance sheet date. Marketable securities classified as "available-for-sale" are carried at fair value, based on quoted market prices. Unrealized gains and losses are reported in a separate component of shareholders' equity in accumulated other comprehensive income (loss). Gains and losses are recognized when realized, on a specific identification basis, in the Company's consolidated statements of comprehensive loss. The Company's securities are reviewed for impairment in accordance with ASC 320-10-35. If such assets are considered to be impaired, the impairment charge is recognized in earnings when a decline in the fair value of its investments below the cost basis is judged to be Other-Than-Temporary Impairment (OTTI). 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 Company's intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. Based on the above factors, the Company concluded that unrealized losses on its available-for-sale securities, for the years ended 2015, 2014 and 2013, were not OTTI. h. Inventories: Inventories are stated at the lower of cost or market value. Inventory write-offs are provided to cover risks arising primarily from end of life products and from slow-moving items, technological obsolescence, and excess inventory. Inventory write-offs during the year ended December 31, 2015, 2014 and 2013 totaled $ 775 4,097 1,531 Inventory write-off provision as of December 31, 2015 and 2014 amounted of $ 1,663 4,560 Cost is determined as follows: Raw materials and finished goods – weighted average cost method i. Property and equipment, net: 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: % Lab equipment 25 33 Computers and peripheral equipment 15 33 Office furniture 6 15 Leasehold improvements By the shorter of term of the lease or the useful life of the asset j. Goodwill impairment: Goodwill represents the excess of the purchase price over the fair value of net assets of purchased businesses. Under Accounting Standards Codification No. 350, "Intangibles-Goodwill and Other" ("ASC No. 350"), goodwill is not amortized, but rather subject to an annual impairment test, or more often if there are indicators of impairment present. In accordance with ASC No. 350 the Company performs an annual impairment test at December 31 each year. The Company operates in a single reportable unit. The Company has performed an annual impairment analysis as of December 31, 2015 and determined that the carrying value of the reporting unit was less than the fair value of the reporting unit. Fair value is determined using market capitalization. During years 2015, 2014 and 2013 no impairment losses were recorded. k. Impairment of long lived assets and intangible assets subject to amortization: Property and equipment and intangible assets subject to amortization are reviewed for impairment in accordance with ASC No. 360, "Accounting for the Impairment or Disposal of Long-Lived Assets," whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. 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 exceeds the fair value of the assets. Intangible assets acquired in a business combination are recorded at fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets that are not considered to have an indefinite useful life are amortized over their estimated useful lives. Some of the acquired intangible assets are amortized over their estimated useful lives in proportion to the economic benefits realized. This accounting policy results in accelerated amortization of such customer relationships as compared to the straight-line method. All other intangible assets are amortized over their estimated useful lives on a straight-line basis. During 2015 the Company recorded impairment losses of $ 5,777 l. Revenue recognition: The Company generates revenues mainly from selling its products along with related maintenance and support services. At times, these arrangements may also include professional services, such as installation services or training. The Company generally sells its products through resellers, distributors, OEMs and system integrators, all of whom are considered end-users. Revenues from product sales are recognized when persuasive evidence of an agreement exists, title and risk of loss have transferred, no significant performance obligations remain, product payment is not contingent upon performance of installation or service obligations, the fee is fixed or determinable and collectability is probable. In instances where final acceptance of the product or service is specified by the customer, revenue recognition is deferred until all acceptance criteria have been met. Maintenance and support related revenues included in multiple element arrangements are deferred and recognized on a straight-line basis over the term of the applicable maintenance and support agreement. Other services are recognized upon the completion of installation or when the service is provided. In instances where the services provided in a multiple element arrangement are considered essential to the functionality of the product and payment of the product is contingent upon performance of the services, the sales of the products and services would be considered one unit of accounting. Pursuant to the guidance of ASU 2009-13, "Multiple-Deliverable Revenue Arrangements, (amendments to ASC Topic 605, Revenue Recognition)" (ASU 2009-13) and ASU 2009-14, when a sales arrangement contains multiple elements, such as products and services, the Company allocates revenues to each element based on a selling price hierarchy. The selling price for a deliverable is based on VSOE if available, third party evidence ("TPE") if VSOE is not available, or estimated selling price ("ESP") if neither VSOE nor TPE is available. In multiple element arrangements, revenues are allocated to each separate unit of accounting for each of the deliverables using the relative selling prices of each of the deliverables in the arrangement based on the aforementioned selling price hierarchy. Revenue arrangements with multiple deliverables are allocated using the relative selling price method. The Company determines the estimated selling price in multiple elements arrangements as follows: The Company determines the ESP in multiple-element arrangements for the products, based on reviewing historical transactions, and considering several other external and internal factors including, but not limited to, pricing practices including discounting and competition. Deferred revenues are classified as short and long term based on their contractual term and recognized as revenues at the time the respective elements are provided The Company records a provision for estimated product returns based on its experience with historical product returns and other known factors. Such provisions amounted to $ 688 1,147 m. Advertising expenses: Advertising expenses are charged to the statement of comprehensive loss, as incurred. Advertising expenses for the years ended December 31, 2015, 2014 and 2013 amounted to $ 1,201 1,131 973 n. Research and development costs: Accounting Standards Codification No. 985-20, 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 comprehensive loss as incurred. o. Severance pay: The liability in Israel for substantially all of the Company`s employees in respect of severance pay liability is calculated in accordance with Section 14 of the Severance Pay Law -1963 (herein- "Section 14"). Section 14 states that Company's contributions for severance pay shall be in line of severance compensation and upon release of the policy to the employee, no additional obligations shall be conducted between the parties regarding the matter of severance pay and no additional payments shall be made by the Company to the employee. Furthermore, the related obligation and amounts deposited on behalf of such obligation under Section 14, are not stated on the balance sheet, because pursuant to current ruling, they are legally released from obligation to employees once the deposits have been paid. There are a limited number of employees in Israel, for whom the Company is liable for severance pay. The Company's liability for severance pay for its Israeli employees was calculated pursuant to Section 14, based on the most recent monthly salary of its Israeli employees multiplied by the number of years of employment as of the balance sheet date for such employees. The Company's liability was partly provided by monthly deposits with severance pay funds and insurance policies and the remainder by an accrual. Severance expense for the years ended December 31, 2015, 2014 and 2013, amounted to $ 2,286 2,092 2,070 p. Accounting for stock-based compensation: The Company accounts for stock based compensation in accordance with Accounting Standards Codification No. 718, "Compensation - Stock Compensation" ("ASC No. 718") that requires companies to estimate the fair value of equity-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 comprehensive loss. ASC No. 718 requires forfeitures to be estimated at the time of the grant and revised in subsequent periods if actual forfeitures differ from those estimates. The following table sets forth the total stock-based compensation expense resulting from stock options and RSUs granted to employees included in the consolidated statements of comprehensive loss, for the years ended December 31, 2015, 2014 and 2013: Year ended 2015 2014 20 13 Cost of revenues $ 324 $ 353 $ 368 Research and development 1,637 1,919 1,666 Sales and marketing 2,802 3,322 3,106 General and administrative 2,407 2,501 2,591 Total stock-based compensation expense $ 7,170 $ 8,095 $ 7,731 The Company selected the binomial option pricing model as the most appropriate fair value method for its stock-based compensation awards with the following assumptions for the years ended December 31, 2015, 2014 and 2013: Year ended 2015 2014 20 13 Suboptimal exercise multiple 3 3 3 Risk free interest rate 0.23 2.35 0.1 2.73 0.1 2.77 Volatility 37 55 44 60 53 63 Dividend yield 0 % 0 % 0 % The expected annual post-vesting and pre-vesting forfeiture rates affects the number of exercisable options. Based on the Company's historical experience, the annual post-vesting in 2015, 2014, and 2013 are 0 14 The computations of expected volatility and suboptimal exercise multiple is based on the average of the Company's realized historical stock price volatility based on market capitalization and type of technology platform. The computation of the suboptimal exercise multiple and the forfeiture rates are based on the grantees expected exercise prior and post vesting termination behavior. The interest rate for period within the contractual life of the award is based on the U.S. Treasury Bills yield curve in effect at the time of grant. The Company currently has no plans to distribute dividends and intends to retain future earnings to finance the development of its business. The expected life of the stock options represents the weighted-average period the stock options are expected to remain outstanding and is a derived output of the binomial model. The expected life of the stock options is impacted by all of the underlying assumptions used in the Company's model. q. Treasury stock:: The Company repurchases its Ordinary shares from time to time on the open market and holds such shares as treasury stock. The Company presents the cost to repurchase treasury stock as a reduction of shareholders' equity. r. Concentration of credit risks: Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, short-term bank deposits, trade receivables and derivative instruments. The majority of cash and cash equivalents, marketable securities and short-term deposits of the Company are invested in dollar deposits in major U.S. and Israeli banks. Such deposits in the United States may be in excess of insured limits and are not insured in other jurisdictions. Generally, the cash and cash equivalents and short-term bank deposits may be redeemed upon demand, and therefore, bear minimal risk. The Company's trade receivables are primarily derived from sales to customers located mainly in the United States, as well as in EMEA, APAC and Latin America. Concentration of credit risk with respect to trade receivables is limited by credit limits, ongoing credit evaluation and account monitoring procedures. The Company performs ongoing credit evaluations of its customers and establishes an allowance for doubtful accounts on a specific basis. Allowance for doubtful accounts amounted to $ 657 707 The Company has no significant off balance sheet concentrations of credit risk. s. Grants from the OCS: Participation grants from the Office of the Chief Scientist of the Ministry of Industry, Trade and Labor in Israel ("OCS") 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 non royalty bearing grants recognized amounted to $ 1,252 984 1,051 t. Income taxes: The Company accounts for income taxes in accordance with Accounting Standards Codification No. 740, "Income Taxes" ("ASC No. 740"). ASC No. 740 prescribes the use of the liability method, whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides 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 assets will not be realized. ASC No. 740 contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return 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. u. Basic and diluted net income (loss) per share: Basic net income per share is computed based on the weighted average number of Ordinary Shares outstanding during each year. Diluted net income per share is computed based on the weighted average number of Ordinary Shares outstanding during each year, plus dilutive potential Ordinary Shares considered outstanding during the year, in accordance with FASB ASC 260 "Earnings Per Share". For the years ended December 31, 2015, 2014 and 2013, all outstanding options and warrants have been excluded from the calculation of the diluted net loss per share since their effect was anti-dilutive. See Note 16. v. Comprehensive income (loss): The Company accounts for comprehensive loss in accordance with Accounting Standards Codification No. 220, "Comprehensive Income" ("ASC No. 220"). 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 loss represents all changes in shareholders' equity during the period except those resulting from investments by, or distributions to shareholders. The Company determined that its items of comprehensive income (loss) relate to unrealized gains and losses on hedging derivative instruments and unrealized gains and losses on available-for-sale marketable securities. The following table shows the components and the effects on net loss of amounts reclassified from accumulated other comprehensive loss as of December 31, 2015: Year ended December 31, 2015 Unrealized Unrealized Total Balance as of December 31, 2014 $ (164 ) $ (1,456 ) $ (1,620 ) Changes in other comprehensive income (loss) before reclassifications (266 ) 4 (252 ) Amounts reclassified from accumulated other comprehensive income (loss) to : Cost of revenues - 76 76 Operating expenses - 1,331 1,331 Financial income, net 5 - (5 ) Net current-period other comprehensive income (loss) (261 ) 1,411 1,150 Balance as of December 31, 2015 $ (425 ) $ (45 ) $ (470 ) w. Fair value of financial instruments: The Company measures its cash and cash equivalents, marketable securities, derivative instruments, short-term bank deposits, trade receivables, other receivables, trade payables and other payables at fair value. Fair value is an exit price, representing the amount that would be received if the Company were 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. The Company uses 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 - Include other inputs that are directly or indirectly observable in the marketplace, other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets with insufficient volume or infrequent transactions, or other inputs that are observable (model-derived valuations in which significant inputs are observable), or can be derived principally from or corroborated by observable market data; and Level 3 - Unobservable inputs which are supported by little or no market activity. The Company categorized each of its fair value measurements in one of those three levels of hierarchy. 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. The Company's earn-out consideration is classified within Level 3. The valuation methodology used by the Company to calculate the fair value consideration is the discounted cash flow using Monte-Carlo simulation method by taking into account, forecast future revenues, expected volatility and weighted average cost of debt of 2 x. Derivatives and hedging: The Company accounts for derivatives and hedging based on Accounting Standards Codification No. 815, "Derivatives and Hedging" ("ASC No. 815"). The Company 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. 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 shareholders' equity and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The ineffective portion of the gain or loss on the derivative instrument is recognized in current earnings. To apply hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. y. Business combinations: The Company accounts for business combinations in accordance with ASC No. 805. ASC No. 805 requires recognition of assets acquired, liabilities assumed, and any non-controlling interest at the acquisition date, measured at their fair values as of that date. Any excess of the fair value of net assets acquired over the purchase price is recorded as goodwill and any subsequent changes in estimated contingencies are to be recorded in earnings. In addition, changes in valuation allowance related to acquired deferred tax assets and acquired income tax positions are to be recognized in earnings. z. Warranty costs: The Company generally provides three months software and a one year hardware warranty for all of its products. A provision is recorded for estimated warranty costs at the time revenues are recognized based on the Company's experience. Warranty expenses for the years ended December 31, 2015, 2014 and 2013 were immaterial. aa. Recently Issued Accounting Pronouncements: In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes”, which simplifies the presentation of deferred income taxes. This ASU requires that deferred tax assets and liabilities be classified as non-current in a statement of financial position. The Company early adopted ASU 2015-17 effective December 31, 2015 on a prospective basis. No prior periods were retrospectively adjusted. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”, an updated standard on revenue recognition. ASU 2014-09 provides enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies reporting using IFRS and US GAAP. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration (that is, payment) to which the company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and improve guidance for multiple-element arrangements. ASU 2014-09 was initially scheduled to be effective for annual and interim reporting periods beginning after December 15, 2016 and may be adopted either on a full retrospective or modified retrospective approach. However, on July 9, 2015, the FASB approved a one year deferral of the effective date of ASU 2014-09. The revised effective date is for annual reporting periods beginning after December 15, 2017 and interim periods thereafter, with an early adoption permitted as of the original effective date. The Company is still evaluating the impact of implementation of this standard on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)", which will replace the existing guidance in ASC 840, "Leases." The updated standard aims to increase transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. This ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods; early adoption is permitted and modified retrospective application is required. The Company is in the process of evaluating this guidance to determine the impact it will have on its financial statements. |
AVAILABLE-FOR-SALE MARKETABLE S
AVAILABLE-FOR-SALE MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2015 | |
AVAILABLE-FOR-SALE MARKETABLE SECURITIES [Abstract] | |
AVAILABLE-FOR-SALE MARKETABLE SECURITIES | NOTE 3 : - AVAILABLE - FOR - SALE MARKETABLE SECURITIES The following is a summary of available-for-sale marketable securities: December 31, 2015 December 31, 2014 Amortized Gross Gross loss Fair value Amortized Gross unrealized gain Gross loss Fair value Available-for-sale - matures within one year: Governmental debentures $ 293 $ - $ (0 ) $ 293 $ 912 $ 1 $ - $ 913 Corporate debentures 20,077 1 (19 ) 20,059 14,231 18 (1 ) 14,248 20,370 1 (19 ) 20,352 15,143 19 (1 ) 15,161 Available-for-sale - matures after one year through three years: Governmental debentures 978 - (6 ) 972 562 - (9 ) 553 Corporate debentures 29,004 3 (230 ) 28,777 30,036 - (89 ) 29,947 29,982 3 (236 ) 29,749 30,598 - (98 ) 30,500 Available-for-sale - matures after three years through five years: Governmental debentures 344 - (5 ) 339 - - - - Corporate debentures 14,650 5 (174 ) 14,481 8,694 - (84 ) 8,610 14,994 5 (179 ) 14,820 8,694 - (84 ) 8,610 $ 65,346 $ 9 $ (434 ) $ 64,921 $ 54,435 $ 19 $ (183 ) $ 54,271 All investments with an unrealized loss as of December 31, 2015 are with continuous unrealized losses for less than 12 months. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2015 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 4 : - FAIR VALUE MEASUREMENTS In accordance with ASC No. 820, the Company measures its cash equivalents, marketable securities and foreign currency derivative instruments at fair value. Cash equivalents and available for sale marketable securities are classified within Level 1 or Level 2. This is because these assets are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. The Company ' s financial assets measured at fair value on a recurring basis, including accrued interest components , consisted of the following types of instruments as of December 31, 2015 and 20 14 , respectively: As of December 31, 2015 Fair value measurements using input type Level 1 Level 2 Level 3 Total Available-for-sale marketable securities $ - $ 64,921 $ - $ 64,921 Foreign currency derivative contracts - 401 - 401 Total financial assets $ - $ 65,322 $ - $ 65,322 As of December 31, 2014 Fair value measurements using input type Level 1 Level 2 Level 3 Total Available-for-sale marketable securities $ - $ 54,271 $ - $ 54,271 Foreign currency derivative contracts - (899 ) - (899 ) Total financial assets $ - $ 53,372 $ - $ 53,372 |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2015 | |
DERIVATIVE INSTRUMENTS [Abstract] | |
DERIVATIVE INSTRUMENTS | NOTE 5 : - DERIVATIVE INSTRUMENTS The Company 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 related expenses that are designated as cash flow hedges) in currencies other than U.S. dollar, and forecasted revenues denominated in Euro. The net loss (income) recognized in "Financial income, net" during the years ended December 31, 2015, 2014 and 2013 was $ (1,200) (2,144) 181 The Company currently hedges such future exposures for a maximum period of one year. However, the Company 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 Company records all derivatives on the consolidated balance sheets at fair value in accordance with ASC No. 820 at Level 2. The effective portion of cash flow hedges are recorded in other comprehensive income (loss) until the hedged item is recognized in earnings. The ineffective portion of cash flow hedges are adjusted to fair value through earnings in financial income, net. The Company does not enter into derivative transactions for trading purposes. The Company had a net unrealized gain (loss) associated with cash flow hedges of $ (45) (1,456) As of December 31, 2015 and 2014, the Company had outstanding hedge transactions in the amount of $ 18,361 28,436 The fair value of the outstanding foreign exchange contracts recorded by the Company on its consolidated balance sheets as of December 31, 2015 and 2014, as assets and liabilities is as follows: Foreign exchange forward and December 31, options contracts Balance sheet 2015 20 14 Fair value of foreign exchange hedge transactions Other receivables and prepaid expenses $ 104 $ 41 Fair value of foreign exchange hedge transactions Accrued expenses (149 ) (1,497 ) Total derivatives designated as hedging instruments $ (45 ) $ (1,456 ) Gain or loss on the derivative instruments, which partially offset the foreign currency impact from the underlying exposures, reclassified from other comprehensive income (loss) to operating expenses for the years ended December 31, 2015 and 2014 were $ 1,407 717 Non-designated hedges The Company also uses foreign currency forward contracts to mitigate variability in gains and losses generated from the re-measurement of certain monetary assets and liabilities denominated in foreign currencies. These derivatives do not qualify for special hedge accounting treatment. These derivatives are carried at fair value with changes recorded in financial income, net. Changes in the fair value of these derivatives are largely offset by re-measurement of the underlying assets and liabilities. Cash flows from such derivatives are classified as operating activities. The derivatives have maturities of approximately twelve months. As of December 31, 2015 and 2014, the Company's transactions were $ 14,901 17,580 |
OTHER RECEIVABLES AND PREPAID E
OTHER RECEIVABLES AND PREPAID EXPENSES | 12 Months Ended |
Dec. 31, 2015 | |
OTHER RECEIVABLES AND PREPAID EXPENSES [Abstract] | |
OTHER RECEIVABLES AND PREPAID EXPENSES | NOTE 6 : - OTHER RECEIVABLE S AND PREPAID EXPENSES December 31, 2015 2014 Prepaid expenses $ 1,959 $ 1,920 Government authorities 898 1,918 Grants receivable from the OCS 728 41 Foreign currency derivative contracts 566 676 Short-term lease deposits 215 136 Loan to third-party (1) - 607 Others 147 85 $ 4,513 $ 5,383 (1) Represents a loan granted on January 1, 2014 to Optenet in the total amount of € 2,000, 1,215 125 Eurobor 5 . As of March 23, 2015, as part of the acquisition of Optenet, the remaining outstanding loan was considered part of the purchase price. (See Note 1b) |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2015 | |
INVENTORIES [Abstract] | |
INVENTORIES | NOTE 7 : - INVENTORIES December 31, 2015 2014 Raw materials $ 1,584 $ 1,796 Finished goods 8,585 8,313 $ 10,169 $ 10,109 As of December 31, 2015 and 2014, the finished products line item above includes deferral of the cost of goods sold for which revenue was not yet recognized in the amount of approximately $ 572 1,336 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2015 | |
PROPERTY AND EQUIPMENT, NET [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 8 :- PROPERTY AND EQUIPMENT , NET December 31, 2015 2014 Cost: Lab equipment $ 12,527 $ 11,366 Computers and peripheral equipment 18,667 18,200 Office furniture and equipment 955 847 Leasehold improvements 1,164 1,056 33,313 31,469 Accumulated depreciation: Lab equipment 9,483 8,089 Computers and peripheral equipment 17,453 16,418 Office furniture and equipment 568 463 Leasehold improvements 620 542 28,124 25,512 Depreciated cost $ 5,189 $ 5,957 Depreciation expense for the years ended December 31, 2015, 2014 and 2013 was $ 2,813 3,308 3,423 |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2015 | |
INTANGIBLE ASSETS, NET [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 9 : - INTANGIBLE ASSETS, NET a. The following table shows the Company's intangible assets for the periods presented: December 31, 2015 2014 Original Cost: Technology *) $ 9,111 $ 10,725 Backlog 1,877 1,491 Customer relationships **) 3,592 899 $ 14,580 $ 13,115 Accumulated amortization: Technology $ 5,765 $ 3,592 Backlog 1,632 1,437 Customer relationships 1,064 537 $ 8,461 $ 5,566 Amortized cost $ 6,119 $ 7,549 *) During 2015, the Company recorded an impairment loss of $ 3,214 2,432 The impairment loss was recorded in cost of revenues. **) During 2015, the Company recorded an impairment loss of $ 131 b. Amortization expense for the years ended December 31, 2015, 2014 and 2013 was $ 2,895 1,858 2,915 c. Estimated amortization expense for the years ending: Year ending December 31, 2016 1,666 2017 1,488 2018 1,647 2019 1,318 Total 6,119 |
OTHER PAYABLES AND ACCRUED EXPE
OTHER PAYABLES AND ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2015 | |
OTHER PAYABLES AND ACCRUED EXPENSES [Abstract] | |
OTHER PAYABLES AND ACCRUED EXPENSES | NOTE 1 0 : - OTHER PAYABLES AND ACCRUED EXPENSES December 31, 2015 2014 Contingent consideration $ 1,949 $ - Accrued expenses 1,758 3,241 Advances from customers 1,103 1,853 Accrued taxes 473 384 Foreign currency derivative contracts 163 1,575 Others 264 234 $ 5,710 $ 7,287 |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2015 | |
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 1 1 : - COMMITMENTS AND CONTINGENT LIABILITIES a. Lease commitments: In March 2013, the Company signed a non-cancelable agreement to rent offices for an average period of five 137 The U.S. subsidiary has an operating lease for office facilities in Woburn, Massachusetts and in San Diego, California, the leases expire on August 31, 2019 and on April 30, 2018, respectively. The Company's subsidiaries maintain smaller offices in South Africa, China, Singapore, Japan, New Zealand, UK, Spain, Colombia and various locations in Europe. In addition, the Company has operating lease agreements for its motor vehicles, which terminate in 2016 through 2019. Operating leases (offices and motor vehicles) expense for the years ended December 31, 2015, 2014 and 2013 was $ 2,828 3,155 3,273 As of December 31, 2015, the aggregate future minimum lease obligations (offices and motor vehicles) under non-cancelable operating leases agreements were as follows: Year ending December 31, 2016 $ 2,690 2017 1,948 2018 894 2019 100 Total $ 5,632 b. Major subcontractor: The Company currently depends on one subcontractor to manufacture and provide hardware, warranty and support for its traffic management systems. If the subcontractor experiences delays, disruptions, quality control problems or a loss in capacity, shipments of products may be delayed and the Company's ability to deliver products could be materially adversely affected. Certain hardware components for the Company's products come from single or limited sources, and the Company could lose sales if these sources fail to satisfy its supply requirements. In the event that the Company terminates its business connection with the subcontractor, it will have to compensate the subcontractor for certain inventory costs, as specified in the agreement with the subcontractor. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2015 | |
SHAREHOLDERS' EQUITY [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 1 2 : - SHAREHOLDERS' EQUITY a. Company ' s shares : As of December 31, 2015 , the Company ' s authorized share capital consists of NIS 20,000,000 200,000,000 0.1 b . Treasury stock: In August 2015 the Company's Board of Directors authorized the repurchase of up to an aggregate of $ 15 25,000 166,000 c. Stock option plan: A summary of the Company ' s stock option activity, pertaining to its option plans for employees and related information is as follows: Year ended December 31, 2015 20 14 20 13 Number of shares Weighted average exercise price Number of shares upon exercise Weighted exercise price Number of shares upon exercise Weighted Outstanding at beginning of year 2,531,381 $ 11.99 2,875,003 $ 12.02 2,709,910 $ 11.03 Granted 704,348 $ 6.73 572,533 $ 11.93 749,255 $ 11.74 Forfeited (320,496 ) $ 15.13 (562,787 ) $ 17.02 (254,290 ) $ 11.64 Exercised (103,267 ) $ 1.28 (353,368 ) $ 4.18 (329,872 ) $ 2.83 Outstanding at end of year 2,811,966 $ 10.70 2,531,381 $ 11.99 2,875,003 $ 12.02 Exercisable at end of year 1,646,204 $ 11.99 1,440,143 $ 11.75 1,364,620 $ 10.38 Vested and expected to vest 2,197,848 $ 11.16 1,950,116 $ 11.97 2,117,348 $ 11.65 The aggregate intrinsic value represents the total intrinsic value (the difference between the Company ' s closing stock price on the last trading day of the fiscal year 2015 and the exercise price, multiplied by the number of in - the - money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2015 . This amount may change based on the fair market value of the Company ' s stock. The total intrinsic value of options outstanding at December 31, 2015 , was $ 1,580 . The total intrinsic value of exercisable options at December 31, 2015 was approximately $ 1,170 . The total intrinsic value of options vested and expected to vest at December 31, 2015 was approximately $ 1,363 . The total intrinsic value of options exercised during the year ended December 31, 2015 was approximately $ 469 . The number of options vested during the year ended December 31, 2015 was 300,466 . The weighted - average remaining contractual life of the outstanding options as of December 31, 2015 is 6.26 years. The weighted - average remaining contractual life of exercisable options as of December 31, 2015 is 5.66 years. The options outstan ding as of December 31, 2015 , have been classified by exercise price, as follows: Exercise price Shares upon exercise of options outstanding as of 20 15 Weighted remaining contractual life Shares upon options exercisable as of December 31, 20 15 Years $ 23.31 27.58 161,176 5.56 143,345 $ 15.20 17.07 404,229 5.57 373,760 $ 10.16 14.68 997,927 7.47 578,824 $ 5.25 9.25 892,063 5.89 237,348 $ 0.03 4.95 356,571 4.92 312,927 2,811,966 1,646,204 The following provides a summary of the restricted stock unit activity for the Company for the two years ended December 31, 2015: Year ended December 31, 2015 2014 Number of shares upon Weighted Number of shares upon Weighted Outstanding at beginning of year 445,264 $ 12.43 14,208 $ 13.57 Granted 158,551 $ 8.52 561,873 $ 12.96 Vested (159,912 ) $ 11.22 (89,437 ) $ 14.68 Forfeited (84,499 ) $ 12.57 (41,380 ) $ 15.13 Unvested at end of year 359,404 $ 10.95 445,264 $ 12.43 As of December 31, 2015 , $ 5,339 3,312 unrecognized compensation cost related to stock options and RSUs respectively is expected to be recognized over a weighted average vesting period of 2.13 years. As of December 31, 2015, the Company holds outstanding options under the 2006 option plan. The outstanding options and RSUs are exercisable to 2,811,966 and 359,404 Ordinary shares respectively . Under the terms of the above option plan, options may be granted to employees, officers, directors and various service providers of the Company and its subsidiaries. The options generally become exercisable quarterly over a four - year period, commencing one year after date of the grant, subject to the continued employment of the employee. The options generally expire no later than ten The exercise price of the options at the date of grant under the plans may not be less than the nominal value of the shares into which such options are exercised, any options, which are forfeited or cancelled before expiration, become available for future grants. As of December 31, 2015 , 319,507 Ordinary shares are available for future issuance under the option plan s . In 2015 and 2014 the Company granted 1,732 and 8,333 options respectively to employees with an exercise price of $ 0.03 In addition to granting stock options, the Company granted 158,551 and 561,873 RSUs in 2015 and 2014 respectively under the 2006 option plan . RSUs vest over a four |
TAXES ON INCOME
TAXES ON INCOME | 12 Months Ended |
Dec. 31, 2015 | |
TAXES ON INCOME [Abstract] | |
TAXES ON INCOME | NOTE 13 :- TAXES ON INCOME a. Corporate tax rates: The Israeli corporate tax rate in 2014 and 2015 is 26.5 25 In August 2013, the Israeli Parliament issued the Law for Changing National Priorities (Legislative Amendments for Achieving Budget Targets for 2013 and 2014), 2013 ("the Budget Law"), which consists, among others, of taxation of revaluation gains effective from August 1, 2013 but contingent on the publication of regulations that define what should be considered as "retained earnings not subject to corporate tax" and regulations that set forth provisions for avoiding double taxation of foreign assets. As of the date of approval of these financial statements, no such regulations were issued. Foreign Exchange Regulations: Commencing in taxable year 2013, the Company has elected to measure its taxable income and file its tax return under the Israeli Income Foreign Tax Regulations. Under the Foreign Exchange Regulations, an Israeli company must calculate its tax liability in U.S. Dollars according to certain orders. The tax liability, as calculated in U.S. Dollars is translated into NIS according to the exchange rate as of December 31st of each year. c. Tax benefits under Israel's law for the Encouragement of Capital Investments, 1959 ("the Law"): In 1998, the production facilities of the Company related to its computational technologies were granted the status of an "Approved Enterprise" under the Law. In 2004, expansion program was granted the status of "Approved Enterprise". According to the provisions of the Law, the Company has elected the alternative track of benefits and has waived Government grants in return for tax benefits. The period of tax benefits, detailed above, is limited to the earlier of 12 14 According to the provisions of the Law under the alternative track, the Company's income may be tax-exempt for a period of two 10 25 five eight The Law was significantly amended effective April 1, 2005 ("the Amendment"). The Amendment includes revisions to the criteria for investments qualified to receive tax benefits as a Beneficiary Enterprise and among other things, simplifies the approval process. The Amendment applies to new investment programs. Therefore, investment programs commencing after December 31, 2004, do not affect the approved programs of the Company. In addition, the Law provides that terms and benefits included in any letter of approval already granted will remain subject to the provisions of the Law as they were on the date of such approval. Therefore, the Company's existing Approved Enterprise will generally not be subject to the provisions of the Amendment. The Company elected 2006 and 2009 as "year of election" under the Amendment. The entitlement to the above benefits is contingent upon the fulfillment of the conditions stipulated in the Law, regulations published there under and the criteria set forth in the specific letters of approval. 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 and linked to changes in the Israeli CPI. As of December 31, 2015, management believes that the Company meets the aforementioned conditions. If the Company pays a dividend out of exempt income derived from the Approved and Beneficiary Enterprise, it will be subject to corporate tax in respect of the gross amount distributed, including any taxes thereon, at the rate which would have been applicable had it not enjoyed the alternative benefits, generally 10%-25%, depending on the percentage of the Company's Ordinary shares held by foreign shareholders. The dividend recipient is subject to withholding tax at the rate of 15 Income from sources other than the "Approved and Beneficiary Enterprise" during the benefit period will be subject to tax at the regular corporate tax rate. As of January 1, 2011 new legislation amending to the Investment Law came into effect (the "2011 Amendment"). The 2011 Amendment introduced a new status of "Preferred Company" and "Preferred Enterprise", replacing the existed status of "Beneficiary Company" and "Beneficiary Enterprise". Similarly to "Beneficiary Company", a Preferred Company is an industrial company owning a Preferred Enterprise which meets certain conditions (including a minimum threshold of 25% export). However, under this new legislation the requirement for a minimum investment in productive assets was cancelled. Under the 2011 Amendment, a uniform corporate tax rate will apply to all qualifying income of the Preferred Company, as opposed to the former law, which was limited to income from the Approved Enterprises and Beneficiary Enterprise during the benefits period. The uniform corporate tax rate was 7 12.5 9 16 The Company has not yet made an election to qualify as a Preferred Enterprise and therefore the rules of the 2011 amendment is not yet applied to the Company. As the Company operates outside of Zone A, once it will be elected it will be subject to the 16 A dividend distributed from income which is attributed to a Preferred Enterprise/Special Preferred Enterprise will be subject to withholding tax at source at the following rates: (i) Israeli resident corporation – 0 15 20 15 20 Under the transition provisions of the new legislation, the Company may decide to irrevocably implement the new law while waiving benefits provided under the current law or to remain subject to the current law. e. 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, enjoys tax benefits, including: (1) deduction of purchase of know-how and patents and/or right to use a patent over an eight three 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, then 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. f. Pre-tax income (loss) is comprised as follows: Year ended 2015 2014 20 13 Domestic $ (16,898 ) $ (3,792 ) $ (6,556 ) Foreign 412 1,345 219 $ (16,486 ) $ (2,447 ) $ (6,337 ) g. A reconciliation of the theoretical tax expenses, assuming all income is taxed at the statutory tax rate applicable to the income of the Company and the actual tax expenses is as follows: Year ended 2015 2014 2013 Loss before taxes on income $ (16,486 ) $ (2,447 ) $ (6,337 ) Theoretical tax expense computed at the Israeli statutory tax rate ( 26.5 26.5 25 $ (4,369 ) $ (649 ) $ (1,584 ) Changes in valuation allowance 3,716 (1,328 ) 3,987 Increase (decrease) in losses and temporary differences due to change in Israeli corporate and “Approved Enterprise" tax 679 611 (3,650 ) Write off of prepaid and withholding taxes 1,150 - - Foreign tax rates differences related to subsidiaries 103 (34 ) 4 Non-deductible expenses and other 181 (381 ) (227 ) Non-deductible share-based compensation expense 1,896 1,831 1,590 Actual tax expense $ 3,356 $ 50 $ 120 h. Income tax expense is comprised as follows: Year ended December 31, 2015 2014 20 13 Current taxes $ 146 $ 612 $ 408 Deferred taxes (benefit) 2,060 (562 ) (288 ) Write off of prepaid and withholding taxes 1,150 - - $ 3,356 $ 50 $ 120 i. Net operating losses carry forward: The Company has accumulated net operating losses for tax purposes as of December 31, 2015, in the amount of approximately $ 39,900 14 50 1,331 1,150 27,300 The U.S. subsidiary has accumulated losses for U.S. federal income tax return purposes of approximately $ 4,075 1,707 Such losses are subject to limitations of Internal Revenue Code, Section 382, which in general provides that utilization of net operating losses is subject to an annual limitation if an ownership change results from transactions increasing the ownership of certain shareholders or public groups in the stock of a corporation by more than 50 percentage points over a three-year period. The annual limitations may result in the expiration of losses before utilization. The European subsidiary is subject to French income taxes and has a net operating loss carry forward as of December 31, 2015 of approximately $ 4,000 The Spanish subsidiary is subject to Spanish income taxes and has a net operating loss carry forward as of December 31, 2015 of approximately $ 750 j. 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 Company's deferred income taxes are as follows: December 31, 2015 2014 Deferred tax assets: Operating and capital loss carryforwards $ 14,842 $ 13,103 Reserves and allowances 948 1,183 Deferred tax asset before valuation allowance 15,790 14,286 Valuation allowance (15,124 ) (11,408 ) Net deferred tax asset 666 2,878 Deferred tax liability (157 ) (309 ) Net deferred tax asset $ 509 $ 2,569 k. As of December 31, 2015 and 2014, the provision in respect of ASC 740-10 was $ 293 279 The Company conducts business globally and, as a result, the Company or one or more of its subsidiaries file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world, including such major jurisdictions as Israel, France, and the United States. With a few exceptions, the Company is no longer subject to Israeli final tax assessment through the year 2011 and the European and U.S. subsidiaries have final tax assessments through 2011. |
GEOGRAPHIC INFORMATION
GEOGRAPHIC INFORMATION | 12 Months Ended |
Dec. 31, 2015 | |
GEOGRAPHIC INFORMATION [Abstract] | |
GEOGRAPHIC INFORMATION | NOTE 1 4 : - GEOGRAPHIC INFORMATION Allot operates in a single reportable segment. Revenues are based on the location of the Company's channel partners which are considered as end customers, as well as direct customers of the Company: Year ended 2015 2014 20 13 Europe $ 39,110 $ 41,238 $ 35,143 Asia and Oceania 28,495 41,990 29,909 Americas (excluding the United States) 14,347 3,299 5,323 Middle East and Africa 9,809 15,352 4,820 United States 8,206 15,307 21,350 $ 99,967 $ 117,186 $ 96,545 The following are the Company's major customers: Year ended 2015 2014 20 13 Customer A 27 % 27 % 17 % Customer B 10 % 17 % 17 % Customer C - - 11 % 37 % 44 % 45 % The following presents total long-lived assets as of December 31, 2015 and 2014: December 31, 2015 2014 Long-lived assets: Israel $ 4,924 $ 5,603 United States 109 181 Other 156 173 $ 5,189 $ 5,957 |
FINANCIAL INCOME, NET
FINANCIAL INCOME, NET | 12 Months Ended |
Dec. 31, 2015 | |
FINANCIAL INCOME, NET [Abstract] | |
FINANCIAL INCOME, NET | NOTE 1 5 : - FINANCIAL INCOME , NET Year ended 2015 2014 20 13 Financial income: Interest income $ 2,174 $ 1,900 $ 1,358 Financial expenses: Exchange rate differences and other 1,480 174 47 Amortization/accretion of premium/discount on marketable securities, net 1,278 1,066 584 $ (584 ) $ 660 $ 727 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2015 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | NOTE 1 6 :- EARNINGS PER SHARE The following table sets forth the computation of basic and diluted net earnings (loss) per share: Year ended 2015 2014 20 13 Numerator: Net loss $ (19,842 ) $ (2,497 ) $ (6,457 ) Denominator: Weighted average number of shares outstanding used in computing diluted net earnings per share 33,419,917 33,143,168 32,680,766 Basic and diluted net loss per share $ (0.59 ) $ (0.08 ) $ (0.20 ) The following numbers of shares were excluded from the computation of diluted net less per ordinary share for the periods presented because including them would have had an anti-dilutive effect: Year ended 2015 2014 20 13 Ordinary shares 3,424,891 2,300,425 2,018,751 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2015 | |
SUBSEQUENT EVENT [Abstract] | |
SUBSEQUENT EVENT | NOTE 17:- SUBSEQUENT EVENT On January 4, 2016, the Israeli Parliament's Plenum approved by a second and third reading the Bill for Amending the Income Tax Ordinance (No. 217) (Reduction of Corporate Tax Rate), 2015, which consists of the reduction of the corporate tax rate from 26.5 25 The deferred tax balances included in the financial statements as of December 31, 2015 are calculated according to the tax rates that were in effect as of the reporting date and do not take into account the potential effects of the reduction in the tax rate. Said effects will be included in the financial statements that will be issued starting from the date on which the new tax rate is substantially enacted, namely in the first quarter of 2016. |
SIGNIFICANT ACCOUNTING POLICI26
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Use of estimates | 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. The Company's 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 in U.S. dollars | b. Financial statements in U.S. dollars: The majority of the revenues of the Company and its subsidiaries are generated in U.S. dollars ("dollar") or linked to the dollar. In addition, a major portion of the Company's and certain of its subsidiaries' costs are incurred or determined in dollars. The Company's management believes that the dollar is the currency of the primary economic environment in which the Company and its subsidiaries operate. Thus, the functional and reporting currency of the Company and its subsidiaries is the dollar. Accordingly, monetary accounts maintained in currencies other than the dollar are remeasured into U.S. dollars in accordance with Accounting Standards Codification No. 830, "Foreign Currency Matters" ("ASC No. 830"). All transactions gains and losses from the remeasurement of monetary balance sheet items are reflected in the statements of operations as financial income or expenses as appropriate. |
Principles of consolidation | c. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions have been eliminated upon consolidation. |
Cash and cash equivalents | d. Cash and cash equivalents: The Company considers all unrestricted highly liquid investments which are readily convertible into cash, with maturity of three months or less at the date of acquisition, to be cash equivalents. |
Restricted deposits | e. Restricted deposits: The restricted deposits are held in favor of financial institutions in respect of fulfillments of forward contract and operating obligations. |
Short-term bank deposits | f. Short-term bank deposits: Short-term bank deposits are deposits with maturities of more than three months but less than one year at the balance sheet date. The deposits are in dollars and bear interest at annual weighted average rate of 0.93 0.56 |
Marketable securities | g. Marketable securities: The Company accounts for investments in marketable securities in accordance with ASC 320, "Investments - Debt and Equity Securities". Management determines the appropriate classification of its investments in debt securities at the time of purchase and re-evaluates such determinations at each balance sheet date. Marketable securities classified as "available-for-sale" are carried at fair value, based on quoted market prices. Unrealized gains and losses are reported in a separate component of shareholders' equity in accumulated other comprehensive income (loss). Gains and losses are recognized when realized, on a specific identification basis, in the Company's consolidated statements of comprehensive loss. The Company's securities are reviewed for impairment in accordance with ASC 320-10-35. If such assets are considered to be impaired, the impairment charge is recognized in earnings when a decline in the fair value of its investments below the cost basis is judged to be Other-Than-Temporary Impairment (OTTI). 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 Company's intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. Based on the above factors, the Company concluded that unrealized losses on its available-for-sale securities, for the years ended 2015, 2014 and 2013, were not OTTI. |
Inventories | h. Inventories: Inventories are stated at the lower of cost or market value. Inventory write-offs are provided to cover risks arising primarily from end of life products and from slow-moving items, technological obsolescence, and excess inventory. Inventory write-offs during the year ended December 31, 2015, 2014 and 2013 totaled $ 775 4,097 1,531 Inventory write-off provision as of December 31, 2015 and 2014 amounted of $ 1,663 4,560 Cost is determined as follows: Raw materials and finished goods – weighted average cost method |
Property and equipment, net | i. Property and equipment, net: 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: % Lab equipment 25 33 Computers and peripheral equipment 15 33 Office furniture 6 15 Leasehold improvements By the shorter of term of the lease or the useful life of the asset |
Goodwill impairment | j. Goodwill impairment: Goodwill represents the excess of the purchase price over the fair value of net assets of purchased businesses. Under Accounting Standards Codification No. 350, "Intangibles-Goodwill and Other" ("ASC No. 350"), goodwill is not amortized, but rather subject to an annual impairment test, or more often if there are indicators of impairment present. In accordance with ASC No. 350 the Company performs an annual impairment test at December 31 each year. The Company operates in a single reportable unit. The Company has performed an annual impairment analysis as of December 31, 2015 and determined that the carrying value of the reporting unit was less than the fair value of the reporting unit. Fair value is determined using market capitalization. During years 2015, 2014 and 2013 no impairment losses were recorded. |
Impairment of long lived assets and intangible assets subject to amortization | k. Impairment of long lived assets and intangible assets subject to amortization: Property and equipment and intangible assets subject to amortization are reviewed for impairment in accordance with ASC No. 360, "Accounting for the Impairment or Disposal of Long-Lived Assets," whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. 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 exceeds the fair value of the assets. Intangible assets acquired in a business combination are recorded at fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets that are not considered to have an indefinite useful life are amortized over their estimated useful lives. Some of the acquired intangible assets are amortized over their estimated useful lives in proportion to the economic benefits realized. This accounting policy results in accelerated amortization of such customer relationships as compared to the straight-line method. All other intangible assets are amortized over their estimated useful lives on a straight-line basis. During 2015 the Company recorded impairment losses of $ 5,777 |
Revenue recognition | l. Revenue recognition: The Company generates revenues mainly from selling its products along with related maintenance and support services. At times, these arrangements may also include professional services, such as installation services or training. The Company generally sells its products through resellers, distributors, OEMs and system integrators, all of whom are considered end-users. Revenues from product sales are recognized when persuasive evidence of an agreement exists, title and risk of loss have transferred, no significant performance obligations remain, product payment is not contingent upon performance of installation or service obligations, the fee is fixed or determinable and collectability is probable. In instances where final acceptance of the product or service is specified by the customer, revenue recognition is deferred until all acceptance criteria have been met. Maintenance and support related revenues included in multiple element arrangements are deferred and recognized on a straight-line basis over the term of the applicable maintenance and support agreement. Other services are recognized upon the completion of installation or when the service is provided. In instances where the services provided in a multiple element arrangement are considered essential to the functionality of the product and payment of the product is contingent upon performance of the services, the sales of the products and services would be considered one unit of accounting. Pursuant to the guidance of ASU 2009-13, "Multiple-Deliverable Revenue Arrangements, (amendments to ASC Topic 605, Revenue Recognition)" (ASU 2009-13) and ASU 2009-14, when a sales arrangement contains multiple elements, such as products and services, the Company allocates revenues to each element based on a selling price hierarchy. The selling price for a deliverable is based on VSOE if available, third party evidence ("TPE") if VSOE is not available, or estimated selling price ("ESP") if neither VSOE nor TPE is available. In multiple element arrangements, revenues are allocated to each separate unit of accounting for each of the deliverables using the relative selling prices of each of the deliverables in the arrangement based on the aforementioned selling price hierarchy. Revenue arrangements with multiple deliverables are allocated using the relative selling price method. The Company determines the estimated selling price in multiple elements arrangements as follows: The Company determines the ESP in multiple-element arrangements for the products, based on reviewing historical transactions, and considering several other external and internal factors including, but not limited to, pricing practices including discounting and competition. Deferred revenues are classified as short and long term based on their contractual term and recognized as revenues at the time the respective elements are provided The Company records a provision for estimated product returns based on its experience with historical product returns and other known factors. Such provisions amounted to $ 688 1,147 |
Advertising expenses | m. Advertising expenses: Advertising expenses are charged to the statement of comprehensive loss, as incurred. Advertising expenses for the years ended December 31, 2015, 2014 and 2013 amounted to $ 1,201 1,131 973 |
Research and development costs | n. Research and development costs: Accounting Standards Codification No. 985-20, 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 comprehensive loss as incurred. |
Severance pay | o. Severance pay: The liability in Israel for substantially all of the Company`s employees in respect of severance pay liability is calculated in accordance with Section 14 of the Severance Pay Law -1963 (herein- "Section 14"). Section 14 states that Company's contributions for severance pay shall be in line of severance compensation and upon release of the policy to the employee, no additional obligations shall be conducted between the parties regarding the matter of severance pay and no additional payments shall be made by the Company to the employee. Furthermore, the related obligation and amounts deposited on behalf of such obligation under Section 14, are not stated on the balance sheet, because pursuant to current ruling, they are legally released from obligation to employees once the deposits have been paid. There are a limited number of employees in Israel, for whom the Company is liable for severance pay. The Company's liability for severance pay for its Israeli employees was calculated pursuant to Section 14, based on the most recent monthly salary of its Israeli employees multiplied by the number of years of employment as of the balance sheet date for such employees. The Company's liability was partly provided by monthly deposits with severance pay funds and insurance policies and the remainder by an accrual. Severance expense for the years ended December 31, 2015, 2014 and 2013, amounted to $ 2,286 2,092 2,070 |
Accounting for stock-based compensation | p. Accounting for stock-based compensation: The Company accounts for stock based compensation in accordance with Accounting Standards Codification No. 718, "Compensation - Stock Compensation" ("ASC No. 718") that requires companies to estimate the fair value of equity-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 comprehensive loss. ASC No. 718 requires forfeitures to be estimated at the time of the grant and revised in subsequent periods if actual forfeitures differ from those estimates. The following table sets forth the total stock-based compensation expense resulting from stock options and RSUs granted to employees included in the consolidated statements of comprehensive loss, for the years ended December 31, 2015, 2014 and 2013: Year ended 2015 2014 20 13 Cost of revenues $ 324 $ 353 $ 368 Research and development 1,637 1,919 1,666 Sales and marketing 2,802 3,322 3,106 General and administrative 2,407 2,501 2,591 Total stock-based compensation expense $ 7,170 $ 8,095 $ 7,731 The Company selected the binomial option pricing model as the most appropriate fair value method for its stock-based compensation awards with the following assumptions for the years ended December 31, 2015, 2014 and 2013: Year ended 2015 2014 20 13 Suboptimal exercise multiple 3 3 3 Risk free interest rate 0.23 2.35 0.1 2.73 0.1 2.77 Volatility 37 55 44 60 53 63 Dividend yield 0 % 0 % 0 % The expected annual post-vesting and pre-vesting forfeiture rates affects the number of exercisable options. Based on the Company's historical experience, the annual post-vesting in 2015, 2014, and 2013 are 0 14 The computations of expected volatility and suboptimal exercise multiple is based on the average of the Company's realized historical stock price volatility based on market capitalization and type of technology platform. The computation of the suboptimal exercise multiple and the forfeiture rates are based on the grantees expected exercise prior and post vesting termination behavior. The interest rate for period within the contractual life of the award is based on the U.S. Treasury Bills yield curve in effect at the time of grant. The Company currently has no plans to distribute dividends and intends to retain future earnings to finance the development of its business. The expected life of the stock options represents the weighted-average period the stock options are expected to remain outstanding and is a derived output of the binomial model. The expected life of the stock options is impacted by all of the underlying assumptions used in the Company's model. |
Treasury Stock | q. Treasury stock:: The Company repurchases its Ordinary shares from time to time on the open market and holds such shares as treasury stock. The Company presents the cost to repurchase treasury stock as a reduction of shareholders' equity. |
Concentration of credit risks | r. Concentration of credit risks: Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, short-term bank deposits, trade receivables and derivative instruments. The majority of cash and cash equivalents, marketable securities and short-term deposits of the Company are invested in dollar deposits in major U.S. and Israeli banks. Such deposits in the United States may be in excess of insured limits and are not insured in other jurisdictions. Generally, the cash and cash equivalents and short-term bank deposits may be redeemed upon demand, and therefore, bear minimal risk. The Company's trade receivables are primarily derived from sales to customers located mainly in the United States, as well as in EMEA, APAC and Latin America. Concentration of credit risk with respect to trade receivables is limited by credit limits, ongoing credit evaluation and account monitoring procedures. The Company performs ongoing credit evaluations of its customers and establishes an allowance for doubtful accounts on a specific basis. Allowance for doubtful accounts amounted to $ 657 707 The Company has no significant off balance sheet concentrations of credit risk. |
Grants from the OCS | s. Grants from the OCS: Participation grants from the Office of the Chief Scientist of the Ministry of Industry, Trade and Labor in Israel ("OCS") 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 non royalty bearing grants recognized amounted to $ 1,252 984 1,051 |
Income taxes | t. Income taxes: The Company accounts for income taxes in accordance with Accounting Standards Codification No. 740, "Income Taxes" ("ASC No. 740"). ASC No. 740 prescribes the use of the liability method, whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides 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 assets will not be realized. ASC No. 740 contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return 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. |
Basic and diluted net income/loss per share | u. Basic and diluted net income (loss) per share: Basic net income per share is computed based on the weighted average number of Ordinary Shares outstanding during each year. Diluted net income per share is computed based on the weighted average number of Ordinary Shares outstanding during each year, plus dilutive potential Ordinary Shares considered outstanding during the year, in accordance with FASB ASC 260 "Earnings Per Share". For the years ended December 31, 2015, 2014 and 2013, all outstanding options and warrants have been excluded from the calculation of the diluted net loss per share since their effect was anti-dilutive. See Note 16. |
Comprehensive income (loss) | v. Comprehensive income (loss): The Company accounts for comprehensive loss in accordance with Accounting Standards Codification No. 220, "Comprehensive Income" ("ASC No. 220"). 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 loss represents all changes in shareholders' equity during the period except those resulting from investments by, or distributions to shareholders. The Company determined that its items of comprehensive income (loss) relate to unrealized gains and losses on hedging derivative instruments and unrealized gains and losses on available-for-sale marketable securities. The following table shows the components and the effects on net loss of amounts reclassified from accumulated other comprehensive loss as of December 31, 2015: Year ended December 31, 2015 Unrealized Unrealized Total Balance as of December 31, 2014 $ (164 ) $ (1,456 ) $ (1,620 ) Changes in other comprehensive income (loss) before reclassifications (266 ) 4 (252 ) Amounts reclassified from accumulated other comprehensive income (loss) to : Cost of revenues - 76 76 Operating expenses - 1,331 1,331 Financial income, net 5 - (5 ) Net current-period other comprehensive income (loss) (261 ) 1,411 1,150 Balance as of December 31, 2015 $ (425 ) $ (45 ) $ (470 ) |
Fair value of financial instruments | w. Fair value of financial instruments: The Company measures its cash and cash equivalents, marketable securities, derivative instruments, short-term bank deposits, trade receivables, other receivables, trade payables and other payables at fair value. Fair value is an exit price, representing the amount that would be received if the Company were 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. The Company uses 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 - Include other inputs that are directly or indirectly observable in the marketplace, other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets with insufficient volume or infrequent transactions, or other inputs that are observable (model-derived valuations in which significant inputs are observable), or can be derived principally from or corroborated by observable market data; and Level 3 - Unobservable inputs which are supported by little or no market activity. The Company categorized each of its fair value measurements in one of those three levels of hierarchy. 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. The Company's earn-out consideration is classified within Level 3. The valuation methodology used by the Company to calculate the fair value consideration is the discounted cash flow using Monte-Carlo simulation method by taking into account, forecast future revenues, expected volatility and weighted average cost of debt of 2 |
Derivatives and hedging | x. Derivatives and hedging: The Company accounts for derivatives and hedging based on Accounting Standards Codification No. 815, "Derivatives and Hedging" ("ASC No. 815"). The Company 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. 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 shareholders' equity and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The ineffective portion of the gain or loss on the derivative instrument is recognized in current earnings. To apply hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. |
Business combinations | y. Business combinations: The Company accounts for business combinations in accordance with ASC No. 805. ASC No. 805 requires recognition of assets acquired, liabilities assumed, and any non-controlling interest at the acquisition date, measured at their fair values as of that date. Any excess of the fair value of net assets acquired over the purchase price is recorded as goodwill and any subsequent changes in estimated contingencies are to be recorded in earnings. In addition, changes in valuation allowance related to acquired deferred tax assets and acquired income tax positions are to be recognized in earnings. |
Warranty costs | z. Warranty costs: The Company generally provides three months software and a one year hardware warranty for all of its products. A provision is recorded for estimated warranty costs at the time revenues are recognized based on the Company's experience. Warranty expenses for the years ended December 31, 2015, 2014 and 2013 were immaterial. |
Recently Issued Accounting Pronouncement | aa. Recently Issued Accounting Pronouncements: In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes”, which simplifies the presentation of deferred income taxes. This ASU requires that deferred tax assets and liabilities be classified as non-current in a statement of financial position. The Company early adopted ASU 2015-17 effective December 31, 2015 on a prospective basis. No prior periods were retrospectively adjusted. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”, an updated standard on revenue recognition. ASU 2014-09 provides enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies reporting using IFRS and US GAAP. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration (that is, payment) to which the company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and improve guidance for multiple-element arrangements. ASU 2014-09 was initially scheduled to be effective for annual and interim reporting periods beginning after December 15, 2016 and may be adopted either on a full retrospective or modified retrospective approach. However, on July 9, 2015, the FASB approved a one year deferral of the effective date of ASU 2014-09. The revised effective date is for annual reporting periods beginning after December 15, 2017 and interim periods thereafter, with an early adoption permitted as of the original effective date. The Company is still evaluating the impact of implementation of this standard on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)", which will replace the existing guidance in ASC 840, "Leases." The updated standard aims to increase transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. This ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods; early adoption is permitted and modified retrospective application is required. The Company is in the process of evaluating this guidance to determine the impact it will have on its financial statements. |
GENERAL (Tables)
GENERAL (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Acquisition [Line Items] | |
Schedule of pro forma revenue and net loss | Year ended December 31, 2015 2014 Unaudited Revenues $ 100,683 $ 124,244 Net loss $ (21,177 ) $ (17,976 ) |
Optenet SA [Member] | |
Business Acquisition [Line Items] | |
Schedule of the Fair Value of Assets Acquired and Liabilities Assumed | Fair value Current assets $ 54 Equipment 152 Deferred revenues (155 ) Current and non-current liabilities (103 ) Technology 4,032 Customer relationships 2,824 Backlog 386 Goodwill 10,748 Net assets acquired $ 17,938 |
SIGNIFICANT ACCOUNTING POLICI28
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Schedule of Estimated Useful Lives at an Annual Rate | % Lab equipment 25 33 Computers and peripheral equipment 15 33 Office furniture 6 15 Leasehold improvements By the shorter of term of the lease or the useful life of the asset |
Schedule of Stock-Based Compensation Expense | Year ended 2015 2014 20 13 Cost of revenues $ 324 $ 353 $ 368 Research and development 1,637 1,919 1,666 Sales and marketing 2,802 3,322 3,106 General and administrative 2,407 2,501 2,591 Total stock-based compensation expense $ 7,170 $ 8,095 $ 7,731 |
Schedule of Stock-Based Compensation Assumptions | Year ended 2015 2014 20 13 Suboptimal exercise multiple 3 3 3 Risk free interest rate 0.23 2.35 0.1 2.73 0.1 2.77 Volatility 37 55 44 60 53 63 Dividend yield 0 % 0 % 0 % |
Schedule of Accumulated Other Comprehensive Income | Year ended December 31, 2015 Unrealized Unrealized Total Balance as of December 31, 2014 $ (164 ) $ (1,456 ) $ (1,620 ) Changes in other comprehensive income (loss) before reclassifications (266 ) 4 (252 ) Amounts reclassified from accumulated other comprehensive income (loss) to : Cost of revenues - 76 76 Operating expenses - 1,331 1,331 Financial income, net 5 - (5 ) Net current-period other comprehensive income (loss) (261 ) 1,411 1,150 Balance as of December 31, 2015 $ (425 ) $ (45 ) $ (470 ) |
AVAILABLE-FOR-SALE MARKETABLE29
AVAILABLE-FOR-SALE MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
AVAILABLE-FOR-SALE MARKETABLE SECURITIES [Abstract] | |
Summary of Available-for-Sale Marketable Securities | December 31, 2015 December 31, 2014 Amortized Gross Gross loss Fair value Amortized Gross unrealized gain Gross loss Fair value Available-for-sale - matures within one year: Governmental debentures $ 293 $ - $ (0 ) $ 293 $ 912 $ 1 $ - $ 913 Corporate debentures 20,077 1 (19 ) 20,059 14,231 18 (1 ) 14,248 20,370 1 (19 ) 20,352 15,143 19 (1 ) 15,161 Available-for-sale - matures after one year through three years: Governmental debentures 978 - (6 ) 972 562 - (9 ) 553 Corporate debentures 29,004 3 (230 ) 28,777 30,036 - (89 ) 29,947 29,982 3 (236 ) 29,749 30,598 - (98 ) 30,500 Available-for-sale - matures after three years through five years: Governmental debentures 344 - (5 ) 339 - - - - Corporate debentures 14,650 5 (174 ) 14,481 8,694 - (84 ) 8,610 14,994 5 (179 ) 14,820 8,694 - (84 ) 8,610 $ 65,346 $ 9 $ (434 ) $ 64,921 $ 54,435 $ 19 $ (183 ) $ 54,271 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
Schedule of Financial Assets Measured at Fair Value on a Recurring Basis | As of December 31, 2015 Fair value measurements using input type Level 1 Level 2 Level 3 Total Available-for-sale marketable securities $ - $ 64,921 $ - $ 64,921 Foreign currency derivative contracts - 401 - 401 Total financial assets $ - $ 65,322 $ - $ 65,322 As of December 31, 2014 Fair value measurements using input type Level 1 Level 2 Level 3 Total Available-for-sale marketable securities $ - $ 54,271 $ - $ 54,271 Foreign currency derivative contracts - (899 ) - (899 ) Total financial assets $ - $ 53,372 $ - $ 53,372 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
DERIVATIVE INSTRUMENTS [Abstract] | |
Schedule of the Fair Value of Open Foreign Exchange Contracts | Foreign exchange forward and December 31, options contracts Balance sheet 2015 20 14 Fair value of foreign exchange hedge transactions Other receivables and prepaid expenses $ 104 $ 41 Fair value of foreign exchange hedge transactions Accrued expenses (149 ) (1,497 ) Total derivatives designated as hedging instruments $ (45 ) $ (1,456 ) |
OTHER RECEIVABLES AND PREPAID32
OTHER RECEIVABLES AND PREPAID EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
OTHER RECEIVABLES AND PREPAID EXPENSES [Abstract] | |
Schedule of Other Accounts Receivable and Prepaid Expenses | December 31, 2015 2014 Prepaid expenses $ 1,959 $ 1,920 Government authorities 898 1,918 Grants receivable from the OCS 728 41 Foreign currency derivative contracts 566 676 Short-term lease deposits 215 136 Loan to third-party (1) - 607 Others 147 85 $ 4,513 $ 5,383 (1) Represents a loan granted on January 1, 2014 to Optenet in the total amount of € 2,000, 1,215 125 Eurobor 5 . As of March 23, 2015, as part of the acquisition of Optenet, the remaining outstanding loan was considered part of the purchase price. (See Note 1b) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
INVENTORIES [Abstract] | |
Schedule of Inventory | December 31, 2015 2014 Raw materials $ 1,584 $ 1,796 Finished goods 8,585 8,313 $ 10,169 $ 10,109 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
PROPERTY AND EQUIPMENT, NET [Abstract] | |
Schedule of Property and Equipment | December 31, 2015 2014 Cost: Lab equipment $ 12,527 $ 11,366 Computers and peripheral equipment 18,667 18,200 Office furniture and equipment 955 847 Leasehold improvements 1,164 1,056 33,313 31,469 Accumulated depreciation: Lab equipment 9,483 8,089 Computers and peripheral equipment 17,453 16,418 Office furniture and equipment 568 463 Leasehold improvements 620 542 28,124 25,512 Depreciated cost $ 5,189 $ 5,957 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
INTANGIBLE ASSETS, NET [Abstract] | |
Schedule of Intangible Assets | December 31, 2015 2014 Original Cost: Technology *) $ 9,111 $ 10,725 Backlog 1,877 1,491 Customer relationships **) 3,592 899 $ 14,580 $ 13,115 Accumulated amortization: Technology $ 5,765 $ 3,592 Backlog 1,632 1,437 Customer relationships 1,064 537 $ 8,461 $ 5,566 Amortized cost $ 6,119 $ 7,549 *) During 2015, the Company recorded an impairment loss of $ 3,214 2,432 The impairment loss was recorded in cost of revenues. **) During 2015, the Company recorded an impairment loss of $ 131 |
Schedule of Estimated Amortization Expense | Year ending December 31, 2016 1,666 2017 1,488 2018 1,647 2019 1,318 Total 6,119 |
OTHER PAYABLES AND ACCRUED EX36
OTHER PAYABLES AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
OTHER PAYABLES AND ACCRUED EXPENSES [Abstract] | |
Schedule of Other Payables and Accrued Expenses | December 31, 2015 2014 Contingent consideration $ 1,949 $ - Accrued expenses 1,758 3,241 Advances from customers 1,103 1,853 Accrued taxes 473 384 Foreign currency derivative contracts 163 1,575 Others 264 234 $ 5,710 $ 7,287 |
COMMITMENTS AND CONTINGENT LI37
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract] | |
Schedule of Future Minimum Lease Obligations | Year ending December 31, 2016 $ 2,690 2017 1,948 2018 894 2019 100 Total $ 5,632 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SHAREHOLDERS' EQUITY [Abstract] | |
Schedule of Stock Option Activity | Year ended December 31, 2015 20 14 20 13 Number of shares Weighted average exercise price Number of shares upon exercise Weighted exercise price Number of shares upon exercise Weighted Outstanding at beginning of year 2,531,381 $ 11.99 2,875,003 $ 12.02 2,709,910 $ 11.03 Granted 704,348 $ 6.73 572,533 $ 11.93 749,255 $ 11.74 Forfeited (320,496 ) $ 15.13 (562,787 ) $ 17.02 (254,290 ) $ 11.64 Exercised (103,267 ) $ 1.28 (353,368 ) $ 4.18 (329,872 ) $ 2.83 Outstanding at end of year 2,811,966 $ 10.70 2,531,381 $ 11.99 2,875,003 $ 12.02 Exercisable at end of year 1,646,204 $ 11.99 1,440,143 $ 11.75 1,364,620 $ 10.38 Vested and expected to vest 2,197,848 $ 11.16 1,950,116 $ 11.97 2,117,348 $ 11.65 |
Schedule of Stock Options Outstanding | Exercise price Shares upon exercise of options outstanding as of 20 15 Weighted remaining contractual life Shares upon options exercisable as of December 31, 20 15 Years $ 23.31 27.58 161,176 5.56 143,345 $ 15.20 17.07 404,229 5.57 373,760 $ 10.16 14.68 997,927 7.47 578,824 $ 5.25 9.25 892,063 5.89 237,348 $ 0.03 4.95 356,571 4.92 312,927 2,811,966 1,646,204 |
Summary of Restricted Stock Unit Activity | Year ended December 31, 2015 2014 Number of shares upon Weighted Number of shares upon Weighted Outstanding at beginning of year 445,264 $ 12.43 14,208 $ 13.57 Granted 158,551 $ 8.52 561,873 $ 12.96 Vested (159,912 ) $ 11.22 (89,437 ) $ 14.68 Forfeited (84,499 ) $ 12.57 (41,380 ) $ 15.13 Unvested at end of year 359,404 $ 10.95 445,264 $ 12.43 |
TAXES ON INCOME (Tables)
TAXES ON INCOME (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
TAXES ON INCOME [Abstract] | |
Schedule of Pre-tax Income (Loss) | Year ended 2015 2014 20 13 Domestic $ (16,898 ) $ (3,792 ) $ (6,556 ) Foreign 412 1,345 219 $ (16,486 ) $ (2,447 ) $ (6,337 ) |
Schedule of the Reconciliation of the Theoretical Tax Expenses | Year ended 2015 2014 2013 Loss before taxes on income $ (16,486 ) $ (2,447 ) $ (6,337 ) Theoretical tax expense computed at the Israeli statutory tax rate ( 26.5 26.5 25 $ (4,369 ) $ (649 ) $ (1,584 ) Changes in valuation allowance 3,716 (1,328 ) 3,987 Increase (decrease) in losses and temporary differences due to change in Israeli corporate and “Approved Enterprise" tax 679 611 (3,650 ) Write off of prepaid and withholding taxes 1,150 - - Foreign tax rates differences related to subsidiaries 103 (34 ) 4 Non-deductible expenses and other 181 (381 ) (227 ) Non-deductible share-based compensation expense 1,896 1,831 1,590 Actual tax expense $ 3,356 $ 50 $ 120 |
Schedule of Income Tax Expense | Year ended December 31, 2015 2014 20 13 Current taxes $ 146 $ 612 $ 408 Deferred taxes (benefit) 2,060 (562 ) (288 ) Write off of prepaid and withholding taxes 1,150 - - $ 3,356 $ 50 $ 120 |
Schedule of Deferred Income Taxes | December 31, 2015 2014 Deferred tax assets: Operating and capital loss carryforwards $ 14,842 $ 13,103 Reserves and allowances 948 1,183 Deferred tax asset before valuation allowance 15,790 14,286 Valuation allowance (15,124 ) (11,408 ) Net deferred tax asset 666 2,878 Deferred tax liability (157 ) (309 ) Net deferred tax asset $ 509 $ 2,569 |
GEOGRAPHIC INFORMATION (Tables)
GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
GEOGRAPHIC INFORMATION [Abstract] | |
Schedule of Revenues by Geographic Location | Year ended 2015 2014 20 13 Europe $ 39,110 $ 41,238 $ 35,143 Asia and Oceania 28,495 41,990 29,909 Americas (excluding the United States) 14,347 3,299 5,323 Middle East and Africa 9,809 15,352 4,820 United States 8,206 15,307 21,350 $ 99,967 $ 117,186 $ 96,545 |
Schedule of Major Customers | Year ended 2015 2014 20 13 Customer A 27 % 27 % 17 % Customer B 10 % 17 % 17 % Customer C - - 11 % 37 % 44 % 45 % |
Schedule of Long-Lived Assets by Geographic Location | December 31, 2015 2014 Long-lived assets: Israel $ 4,924 $ 5,603 United States 109 181 Other 156 173 $ 5,189 $ 5,957 |
FINANCIAL INCOME, NET (Tables)
FINANCIAL INCOME, NET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
FINANCIAL INCOME, NET [Abstract] | |
Schedule of Financial Income, Net | Year ended 2015 2014 20 13 Financial income: Interest income $ 2,174 $ 1,900 $ 1,358 Financial expenses: Exchange rate differences and other 1,480 174 47 Amortization/accretion of premium/discount on marketable securities, net 1,278 1,066 584 $ (584 ) $ 660 $ 727 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
EARNINGS PER SHARE [Abstract] | |
Schedule of the Computation of Basic and Diluted Net Earnings (Loss) per Share | Year ended 2015 2014 20 13 Numerator: Net loss $ (19,842 ) $ (2,497 ) $ (6,457 ) Denominator: Weighted average number of shares outstanding used in computing diluted net earnings per share 33,419,917 33,143,168 32,680,766 Basic and diluted net loss per share $ (0.59 ) $ (0.08 ) $ (0.20 ) |
Summary of numbers of shares were excluded from the computation of diluted net loss per ordinary | Year ended 2015 2014 20 13 Ordinary shares 3,424,891 2,300,425 2,018,751 |
GENERAL (Narrative) (Details)
GENERAL (Narrative) (Details) - USD ($) $ in Thousands | Mar. 23, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||
Cash paid to acquire entity | $ 9,859 | |||
Fair value of contingent liability | 1,949 | |||
Acquisition transaction costs | 397 | |||
Optenet SA [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Mar. 23, 2015 | |||
Cash paid to acquire entity | $ 9,859 | |||
Total purchase consideration | 17,938 | |||
Fair value of contingent liability | $ 8,079 | $ 7,809 | ||
Payment term for contingent consideration | 5 years | |||
Optenet SA [Member] | Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Weighted average remaining useful life | 4 years 4 months 2 days | |||
Optenet SA [Member] | Backlog [Member] | ||||
Business Acquisition [Line Items] | ||||
Weighted average remaining useful life | 2 years 9 months 18 days | |||
Optenet SA [Member] | Customer Relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Weighted average remaining useful life | 4 years 9 months 18 days | |||
Optenet [Member] | ||||
Business Acquisition [Line Items] | ||||
Contingent consideration payments cap based on achievement of certain thresholds of revenues | $ 27,500 |
GENERAL (Schedule of Estimated
GENERAL (Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Mar. 23, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||
Goodwill | $ 31,562 | $ 20,814 | |
Optenet SA [Member] | |||
Business Acquisition [Line Items] | |||
Current assets | $ 54 | ||
Equipment | 152 | ||
Deferred revenues | (155) | ||
Current and non-current liabilities | (103) | ||
Goodwill | 10,748 | ||
Net assets acquired | 17,938 | ||
Optenet SA [Member] | Technology [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets | 4,032 | ||
Optenet SA [Member] | Backlog [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets | 386 | ||
Optenet SA [Member] | Customer Relationships [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 2,824 |
GENERAL (Schedule of pro forma
GENERAL (Schedule of pro forma revenue and net loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Unaudited pro forma condensed results of operations | ||
Revenues | $ 100,683 | $ 124,244 |
Net loss | $ (21,177) | $ (17,976) |
SIGNIFICANT ACCOUNTING POLICI46
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Short-term deposits, weighted average interest rate | 0.93% | 0.56% | |
Inventory write-offs | $ 775 | $ 4,097 | $ 1,531 |
Cumulative inventory write-off | $ 1,663 | $ 4,560 | |
Impairment of long-lived assets held for use | |||
Impairment of intangible assets | $ 5,777 | ||
Reserve for sales returns | 688 | $ 1,147 | |
Advertising expenses | 1,201 | 1,131 | $ 973 |
Severance expense | 2,286 | 2,092 | 2,070 |
Allowance for doubtful accounts | 657 | 707 | |
Grants participations excluded from research and development costs | $ 1,252 | $ 984 | $ 1,051 |
Weighted average cost of capital, percent | 2.00% | ||
Minimum [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Annual post-vesting and pre-vesting forfeiture rate | 0.00% | 0.00% | 0.00% |
Maximum [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Annual post-vesting and pre-vesting forfeiture rate | 14.00% | 14.00% | 14.00% |
SIGNIFICANT ACCOUNTING POLICI47
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Estimated Useful Lives at Annual Rates) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Lab equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, annual rate | 25.00% |
Lab equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, annual rate | 33.00% |
Computers and peripheral equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, annual rate | 15.00% |
Computers and peripheral equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, annual rate | 33.00% |
Office furniture [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, annual rate | 6.00% |
Office furniture [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, annual rate | 15.00% |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | By the shorter of term of the lease or the useful life of the asset |
SIGNIFICANT ACCOUNTING POLICI48
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 7,170 | $ 8,095 | $ 7,731 |
Cost of revenues [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 324 | 353 | 368 |
Research and development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 1,637 | 1,919 | 1,666 |
Sales and marketing [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 2,802 | 3,322 | 3,106 |
General and administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 2,407 | $ 2,501 | $ 2,591 |
SIGNIFICANT ACCOUNTING POLICI49
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Stock-Based Compensation Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Suboptimal exercise multiple | 3 | 3 | 3 |
Risk free interest rate, minimum | 0.23% | 0.10% | 0.10% |
Risk free interest rate, maximum | 2.35% | 2.73% | 2.77% |
Volatility, minimum | 37.00% | 44.00% | 53.00% |
Volatility, maximum | 55.00% | 60.00% | 63.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
SIGNIFICANT ACCOUNTING POLICI50
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of December 31, 2014 | $ (1,620) | $ 366 | |
Changes in other comprehensive income (loss) before reclassifications | (252) | ||
Amounts reclassified from accumulated other comprehensive income (loss) to : | |||
Net current-period other comprehensive income (loss) | 1,150 | (1,986) | $ (1,394) |
Balance as of December 31, 2015 | (470) | (1,620) | $ 366 |
Cost of revenues [Member] | |||
Amounts reclassified from accumulated other comprehensive income (loss) to : | |||
Amounts reclassified from accumulated other comprehensive income | 76 | ||
Operating expenses [Member] | |||
Amounts reclassified from accumulated other comprehensive income (loss) to : | |||
Amounts reclassified from accumulated other comprehensive income | 1,331 | ||
Financial income, net [Member] | |||
Amounts reclassified from accumulated other comprehensive income (loss) to : | |||
Amounts reclassified from accumulated other comprehensive income | (5) | ||
Unrealized gains (losses) on marketable securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of December 31, 2014 | (164) | ||
Changes in other comprehensive income (loss) before reclassifications | (266) | ||
Amounts reclassified from accumulated other comprehensive income (loss) to : | |||
Net current-period other comprehensive income (loss) | (261) | ||
Balance as of December 31, 2015 | $ (425) | (164) | |
Unrealized gains (losses) on marketable securities [Member] | Cost of revenues [Member] | |||
Amounts reclassified from accumulated other comprehensive income (loss) to : | |||
Amounts reclassified from accumulated other comprehensive income | |||
Unrealized gains (losses) on marketable securities [Member] | Operating expenses [Member] | |||
Amounts reclassified from accumulated other comprehensive income (loss) to : | |||
Amounts reclassified from accumulated other comprehensive income | |||
Unrealized gains (losses) on marketable securities [Member] | Financial income, net [Member] | |||
Amounts reclassified from accumulated other comprehensive income (loss) to : | |||
Amounts reclassified from accumulated other comprehensive income | $ 5 | ||
Unrealized gains (losses) on cash flow hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of December 31, 2014 | (1,456) | ||
Changes in other comprehensive income (loss) before reclassifications | 4 | ||
Amounts reclassified from accumulated other comprehensive income (loss) to : | |||
Net current-period other comprehensive income (loss) | 1,411 | ||
Balance as of December 31, 2015 | (45) | $ (1,456) | |
Unrealized gains (losses) on cash flow hedges [Member] | Cost of revenues [Member] | |||
Amounts reclassified from accumulated other comprehensive income (loss) to : | |||
Amounts reclassified from accumulated other comprehensive income | 76 | ||
Unrealized gains (losses) on cash flow hedges [Member] | Operating expenses [Member] | |||
Amounts reclassified from accumulated other comprehensive income (loss) to : | |||
Amounts reclassified from accumulated other comprehensive income | $ 1,331 | ||
Unrealized gains (losses) on cash flow hedges [Member] | Financial income, net [Member] | |||
Amounts reclassified from accumulated other comprehensive income (loss) to : | |||
Amounts reclassified from accumulated other comprehensive income |
AVAILABLE-FOR-SALE MARKETABLE51
AVAILABLE-FOR-SALE MARKETABLE SECURITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 65,346 | $ 54,435 |
Gross unrealized gain | 9 | 19 |
Gross unrealized loss | (434) | (183) |
Fair value | 64,921 | 54,271 |
Available-for-sale securities matures within one year [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 20,370 | 15,143 |
Gross unrealized gain | 1 | 19 |
Gross unrealized loss | (19) | (1) |
Fair value | 20,352 | 15,161 |
Available-for-sale securities matures after one year through three years [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 29,982 | $ 30,598 |
Gross unrealized gain | 3 | |
Gross unrealized loss | (236) | $ (98) |
Fair value | 29,749 | 30,500 |
Available-for-sale securities matures after three year through five years [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 14,994 | $ 8,694 |
Gross unrealized gain | 5 | |
Gross unrealized loss | (179) | $ (84) |
Fair value | 14,820 | 8,610 |
Governmental debentures [Member] | Available-for-sale securities matures within one year [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 293 | 912 |
Gross unrealized gain | $ 1 | |
Gross unrealized loss | $ 0 | |
Fair value | 293 | $ 913 |
Governmental debentures [Member] | Available-for-sale securities matures after one year through three years [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 978 | $ 562 |
Gross unrealized gain | ||
Gross unrealized loss | $ (6) | $ (9) |
Fair value | 972 | $ 553 |
Governmental debentures [Member] | Available-for-sale securities matures after three year through five years [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 344 | |
Gross unrealized gain | ||
Gross unrealized loss | $ (5) | |
Fair value | 339 | |
Corporate debentures [Member] | Available-for-sale securities matures within one year [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 20,077 | $ 14,231 |
Gross unrealized gain | 1 | 18 |
Gross unrealized loss | (19) | (1) |
Fair value | 20,059 | 14,248 |
Corporate debentures [Member] | Available-for-sale securities matures after one year through three years [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 29,004 | $ 30,036 |
Gross unrealized gain | 3 | |
Gross unrealized loss | (230) | $ (89) |
Fair value | 28,777 | 29,947 |
Corporate debentures [Member] | Available-for-sale securities matures after three year through five years [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 14,650 | $ 8,694 |
Gross unrealized gain | 5 | |
Gross unrealized loss | (174) | $ (84) |
Fair value | $ 14,481 | $ 8,610 |
FAIR VALUE MEASUREMENTS (Schedu
FAIR VALUE MEASUREMENTS (Schedule of Financial Assets Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale marketable securities | $ 64,921 | $ 54,271 |
Foreign currency derivative contracts | 401 | |
Foreign currency derivative contracts | (899) | |
Total financial assets | $ 65,322 | $ 53,372 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale marketable securities | ||
Foreign currency derivative contracts | ||
Foreign currency derivative contracts | ||
Total financial assets | ||
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale marketable securities | $ 64,921 | $ 54,271 |
Foreign currency derivative contracts | 401 | |
Foreign currency derivative contracts | (899) | |
Total financial assets | $ 65,322 | $ 53,372 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale marketable securities | ||
Foreign currency derivative contracts | ||
Foreign currency derivative contracts | ||
Total financial assets |
DERIVATIVE INSTRUMENTS (Narrati
DERIVATIVE INSTRUMENTS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
DERIVATIVE INSTRUMENTS [Abstract] | |||
Net losses recognized from currency transactions | $ (1,200) | $ (2,144) | $ 181 |
Unrealized gain (loss) on forward contracts, net | (45) | (1,456) | $ 325 |
Outstanding hedge transactions | 18,361 | 28,436 | |
Gain (loss) on derivative instruments reclassified from OCI to operating expenses | 1,407 | 717 | |
Changes in fair value of derivatives not designated as hedging instrument | $ 14,901 | $ 17,580 |
DERIVATIVE INSTRUMENTS (Schedul
DERIVATIVE INSTRUMENTS (Schedule of the Fair Value Open Foreign Exchange Contracts) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
DERIVATIVE INSTRUMENTS [Abstract] | ||
Fair value of foreign exchange hedge transactions | $ 104 | $ 41 |
Fair value of foreign exchange hedge transactions | (149) | (1,497) |
Total derivatives designated as hedging instruments | $ (45) | $ (1,456) |
OTHER RECEIVABLES AND PREPAID55
OTHER RECEIVABLES AND PREPAID EXPENSES (Schedule of Other Accounts Receivable and Prepaid Expenses) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Other accounts receivables and prepaid expenses [Line Items] | |||
Prepaid expenses | $ 1,959 | $ 1,920 | |
Government authorities | 898 | 1,918 | |
Grants receivable from the OCS | 728 | 41 | |
Short-term lease deposits | $ 215 | 136 | |
Loan to third-party | [1] | 607 | |
Others | $ 147 | 85 | |
Other receivables and prepaid expenses | 4,513 | 5,383 | |
Foreign Exchange Contract [Member] | |||
Other accounts receivables and prepaid expenses [Line Items] | |||
Foreign currency derivative contracts | $ 566 | $ 676 | |
[1] | Represents a loan granted on January 1, 2014 to Optenet in the total amount of € 2,000, of which an amount of $ 1,215 is presented in non-current other assets as of December 31, 2014. The loan is due in equal payments in the amount of € 125 per quarter, and bears an annual interest rate of Eurobor + 5%. As of March 23, 2015, as part of the acquisition of Optenet, the remaining outstanding loan was considered part of the purchase price. (See Note 1b) |
OTHER RECEIVABLES AND PREPAID56
OTHER RECEIVABLES AND PREPAID EXPENSES (Narrative) (Details) - Optenet [Member] € in Thousands, $ in Thousands | Jan. 02, 2014EUR (€) | Dec. 31, 2015 | Dec. 31, 2014USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans granted | € 2,000 | ||
Quarterly loan payment amount | € 125 | ||
Description of variable rate basis | Eurobor | ||
Basis spread on variable rate | 5.00% | ||
Non-current other assets [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans granted | $ | $ 1,215 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
INVENTORIES [Abstract] | ||
Raw materials | $ 1,584 | $ 1,796 |
Finished goods | 8,585 | 8,313 |
Total inventory | 10,169 | 10,109 |
Cost of goods sold, deferred finished goods inventory | $ 572 | $ 1,336 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Cost | $ 33,313 | $ 31,469 | |
Accumulated depreciation | 28,124 | 25,512 | |
Deprecated cost | 5,189 | 5,957 | |
Depreciation | 2,813 | 3,308 | $ 3,423 |
Lab equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 12,527 | 11,366 | |
Accumulated depreciation | 9,483 | 8,089 | |
Computers and peripheral equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 18,667 | 18,200 | |
Accumulated depreciation | 17,453 | 16,418 | |
Office furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 955 | 847 | |
Accumulated depreciation | 568 | 463 | |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 1,164 | 1,056 | |
Accumulated depreciation | $ 620 | $ 542 |
INTANGIBLE ASSETS, NET (Narrati
INTANGIBLE ASSETS, NET (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 2,895 | $ 1,858 | $ 2,915 |
Technology [Member] | Ortiva [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment loss | 3,214 | ||
Technology [Member] | Oversi [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment loss | 2,432 | ||
Customer Relationships [Member] | Oversi [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment loss | $ 131 |
INTANGIBLE ASSETS, NET (Schedul
INTANGIBLE ASSETS, NET (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Cost | $ 14,580 | $ 13,115 | |
Accumulated amortization | 8,461 | 5,566 | |
Total | 6,119 | 7,549 | |
Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | [1] | 9,111 | 10,725 |
Accumulated amortization | 5,765 | 3,592 | |
Backlog [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 1,877 | 1,491 | |
Accumulated amortization | 1,632 | 1,437 | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | [2] | 3,592 | 899 |
Accumulated amortization | $ 1,064 | $ 537 | |
[1] | During 2015, the Company recorded an impairment loss of $ 3,214 and $ 2,432 related to technology purchased in 2012 from acquisitions of Ortiva Wireless Inc. and Oversi Networks Ltd. ("Oversi"), respectively, due to the Company's decision to reach end of life on the respective product lines. The impairment loss was recorded in cost of revenues. | ||
[2] | During 2015, the Company recorded an impairment loss of $ 131 related to Oversi's customer relationships, due to the Company's decision to reach end of life on the respective product line. The impairment loss was recorded in sales and marketing. |
INTANGIBLE ASSETS, NET (Sched61
INTANGIBLE ASSETS, NET (Schedule of Estimated Amortization Expense) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
INTANGIBLE ASSETS, NET [Abstract] | ||
2,016 | $ 1,666 | |
2,017 | 1,488 | |
2,018 | 1,647 | |
2,019 | 1,318 | |
Total | $ 6,119 | $ 7,549 |
OTHER PAYABLES AND ACCRUED EX62
OTHER PAYABLES AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
OTHER PAYABLES AND ACCRUED EXPENSES [Abstract] | ||
Contingent consideration | $ 1,949 | |
Accrued expenses | 1,758 | $ 3,241 |
Advances from customers | 1,103 | 1,853 |
Accrued taxes | 473 | 384 |
Others | 264 | 234 |
Total other payables and accrued expenses | 5,710 | 7,287 |
Foreign Exchange Contract [Member] | ||
Other payables and accrued expenses [Line Items] | ||
Foreign currency derivative contracts | $ 163 | $ 1,575 |
COMMITMENTS AND CONTINGENT LI63
COMMITMENTS AND CONTINGENT LIABILITIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies [Line Items] | |||
Lease period | 5 years | ||
Monthly rental expenses | $ 137 | ||
Rent expense | $ 2,828 | $ 3,155 | $ 3,273 |
COMMITMENTS AND CONTINGENT LI64
COMMITMENTS AND CONTINGENT LIABILITIES (Schedule of Aggregate Future Minimum Lease Obligations) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract] | |
2,016 | $ 2,690 |
2,017 | 1,948 |
2,018 | 894 |
2,019 | 100 |
Total | $ 5,632 |
SHAREHOLDERS' EQUITY (Narrative
SHAREHOLDERS' EQUITY (Narrative) (Details) ₪ / shares in Units, $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($)shares | Dec. 31, 2015ILS (₪)₪ / sharesshares | Aug. 31, 2015USD ($) | Dec. 31, 2014₪ / sharesshares | Dec. 31, 2012shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share capital, amount authorized | ₪ | ₪ 20,000,000 | ||||||
Ordinary shares, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 | ||||
Ordinary shares, par value per share | ₪ / shares | ₪ 0.1 | ₪ 0.1 | |||||
Authorized amount of ordinary shares to repurchase | $ | $ 15,000 | ||||||
Number of ordinary shares repurchased | 25,000 | ||||||
Purchase of ordinary shares | $ | $ 166 | ||||||
Intrinsic value of options outstanding | $ | 1,580 | ||||||
Intrinsic value of options exercisable | $ | 1,170 | ||||||
Intrinsic value of options vested and expected to vest | $ | 1,363 | ||||||
Intrinsic value of options exercised | $ | $ 469 | ||||||
Stock options vested during period | 300,466 | ||||||
Weighted average remaining contractual life of options outstanding | 6 years 3 months 4 days | ||||||
Weighted-average remaining contractual life of exercisable options | 5 years 7 months 28 days | ||||||
Options outstanding | 2,811,966 | 2,875,003 | 2,811,966 | 2,531,381 | 2,709,910 | ||
Employees [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted | 1,732 | 8,333 | |||||
Exercise Price | $ / shares | $ 0.03 | ||||||
2006 option plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options outstanding | 2,811,966 | 2,811,966 | |||||
Stock Compensation Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation cost related to non-vested stock options | $ | $ 5,339 | ||||||
Unrecognized compensation cost, recognition period | 2 years 1 month 17 days | ||||||
Shares available for future issuance | 319,507 | 319,507 | |||||
Vesting period for plan | 4 years | ||||||
Options, expiration period | 10 years | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation cost related to non-vested stock options | $ | $ 3,312 | ||||||
Unrecognized compensation cost, recognition period | 2 years 1 month 17 days | ||||||
Number of restricted stock units outstanding | 359,404 | 14,208 | 359,404 | 445,264 | |||
Granted | 158,551 | 561,873 | |||||
Restricted Stock Units (RSUs) [Member] | 2006 option plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period for plan | 4 years | ||||||
Number of restricted stock units outstanding | 359,404 | 359,404 | |||||
Granted | 158,551 | 561,873 |
SHAREHOLDERS' EQUITY (Schedule
SHAREHOLDERS' EQUITY (Schedule of Stock Option Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Number of shares upon exercise | |||
Outstanding at beginning of year | 2,531,381 | 2,875,003 | 2,709,910 |
Granted | 704,348 | 572,533 | 749,255 |
Forfeited | (320,496) | (562,787) | (254,290) |
Exercised | (103,267) | (353,368) | (329,872) |
Outstanding at end of year | 2,811,966 | 2,531,381 | 2,875,003 |
Exercisable at end of year | 1,646,204 | 1,440,143 | 1,364,620 |
Vested and expected to vest | 2,197,848 | 1,950,116 | 2,117,348 |
Weighted average exercise price | |||
Outstanding at beginning of year | $ 11.99 | $ 12.02 | $ 11.03 |
Granted | 6.73 | 11.93 | 11.74 |
Forfeited | 15.13 | 17.02 | 11.64 |
Exercised | 1.28 | 4.18 | 2.83 |
Outstanding at end of year | 10.70 | 11.99 | 12.02 |
Exercisable at end of year | 11.99 | 11.75 | 10.38 |
Vested and expected to vest | $ 11.16 | $ 11.97 | $ 11.65 |
SHAREHOLDERS' EQUITY (Schedul67
SHAREHOLDERS' EQUITY (Schedule of Options Outstanding) (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options outstanding | 2,811,966 | 2,531,381 | 2,875,003 | 2,709,910 |
Weighted average remaining contractual life of options outstanding | 6 years 3 months 4 days | |||
Shares upon exercise of options exercisable as of December 31, 2015 | 1,646,204 | 1,440,143 | 1,364,620 | |
$23.31-27.58 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise Prices, minimum | $ 23.31 | |||
Exercise Prices, maximum | $ 27.58 | |||
Options outstanding | 161,176 | |||
Weighted average remaining contractual life of options outstanding | 5 years 6 months 22 days | |||
Shares upon exercise of options exercisable as of December 31, 2015 | 143,345 | |||
$15.20-17.07 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise Prices, minimum | $ 15.20 | |||
Exercise Prices, maximum | $ 17.07 | |||
Options outstanding | 404,229 | |||
Weighted average remaining contractual life of options outstanding | 5 years 6 months 25 days | |||
Shares upon exercise of options exercisable as of December 31, 2015 | 373,760 | |||
$10.16-14.68 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise Prices, minimum | $ 10.16 | |||
Exercise Prices, maximum | $ 14.68 | |||
Options outstanding | 997,927 | |||
Weighted average remaining contractual life of options outstanding | 7 years 5 months 19 days | |||
Shares upon exercise of options exercisable as of December 31, 2015 | 578,824 | |||
$5.25-9.25 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise Prices, minimum | $ 5.25 | |||
Exercise Prices, maximum | $ 9.25 | |||
Options outstanding | 892,063 | |||
Weighted average remaining contractual life of options outstanding | 5 years 10 months 20 days | |||
Shares upon exercise of options exercisable as of December 31, 2015 | 237,348 | |||
$0.03-4.95 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise Prices, minimum | $ 0.03 | |||
Exercise Prices, maximum | $ 4.95 | |||
Options outstanding | 356,571 | |||
Weighted average remaining contractual life of options outstanding | 4 years 11 months 1 day | |||
Shares upon exercise of options exercisable as of December 31, 2015 | 312,927 |
SHAREHOLDERS' EQUITY (Summary o
SHAREHOLDERS' EQUITY (Summary of Restricted Stock Unit Activity) (Details) - Restricted Stock Units [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Number of shares upon exercise | ||
Outstanding at beginning of year | 445,264 | 14,208 |
Granted | 158,551 | 561,873 |
Vested | (159,912) | (89,437) |
Forfeited | (84,499) | (41,380) |
Outstanding at end of year | 359,404 | 445,264 |
Weighted average exercise price | ||
Outstanding at beginning of year | $ 12.43 | $ 13.57 |
Granted | 8.52 | 12.96 |
Vested | 11.22 | 14.68 |
Forfeited | 12.57 | 15.13 |
Outstanding at end of year | $ 10.95 | $ 12.43 |
TAXES ON INCOME (Narrative) (De
TAXES ON INCOME (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Taxes on Income [Line Items] | |||
Israeli Income tax rate | 26.50% | 26.50% | 25.00% |
Tax-exempt period | 2 years | ||
Dividend, withholding tax rate | 15.00% | ||
Patent use right, period | 8 years | ||
Expense deductible period | 3 years | ||
Net operating loss carry forwards | $ 39,900 | ||
Net operating loss offset limitation, percentage of accumulated losses | 14.00% | ||
Net operating loss offset limitation, percentage of taxable income | 50.00% | ||
Capital loss carry forwards | $ 27,300 | ||
Provision | 293 | $ 279 | |
Deferred tax assets valuation allowance | $ 15,124 | $ 11,408 | |
Israeli resident corporation [Member] | |||
Taxes on Income [Line Items] | |||
Dividend, withholding tax rate | 0.00% | 0.00% | 0.00% |
Israeli resident individual [Member] | |||
Taxes on Income [Line Items] | |||
Dividend, withholding tax rate | 20.00% | 20.00% | 15.00% |
non-Israeli resident [Member] | |||
Taxes on Income [Line Items] | |||
Dividend, withholding tax rate | 20.00% | 20.00% | 15.00% |
United States of America [Member] | |||
Taxes on Income [Line Items] | |||
Net operating loss carry forwards | $ 4,075 | ||
Excess tax deductions from stock options | 1,707 | ||
France [Member] | |||
Taxes on Income [Line Items] | |||
Net operating loss carry forwards | 4,000 | ||
Spanish [Member] | |||
Taxes on Income [Line Items] | |||
Net operating loss carry forwards | 750 | ||
Israel [Member] | |||
Taxes on Income [Line Items] | |||
Deferred tax assets valuation allowance | 1,331 | ||
Wrote-off prepaid and withholding taxes | $ 1,150 | ||
Development Zone A [Member] | |||
Taxes on Income [Line Items] | |||
Israeli Income tax rate | 9.00% | 9.00% | 7.00% |
Outside Development Zone [Member] | |||
Taxes on Income [Line Items] | |||
Israeli Income tax rate | 16.00% | 16.00% | 12.50% |
Commencement of production [Member] | |||
Taxes on Income [Line Items] | |||
Tax benefit period | 12 years | ||
Approval date [Member] | |||
Taxes on Income [Line Items] | |||
Tax benefit period | 14 years | ||
Minimum [Member] | |||
Taxes on Income [Line Items] | |||
Change in corporate tax rate | 10.00% | ||
Tax-exempt period | 5 years | ||
Minimum [Member] | United States of America [Member] | |||
Taxes on Income [Line Items] | |||
Expiration of operating loss carry forward | Dec. 31, 2024 | ||
Maximum [Member] | |||
Taxes on Income [Line Items] | |||
Change in corporate tax rate | 25.00% | ||
Tax-exempt period | 8 years | ||
Maximum [Member] | United States of America [Member] | |||
Taxes on Income [Line Items] | |||
Expiration of operating loss carry forward | Dec. 31, 2033 |
TAXES ON INCOME (Schedule of Pr
TAXES ON INCOME (Schedule of Pre-tax Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
TAXES ON INCOME [Abstract] | |||
Domestic | $ (16,898) | $ (3,792) | $ (6,556) |
Foreign | 412 | 1,345 | 219 |
Pre-tax income (loss) | $ (16,486) | $ (2,447) | $ (6,337) |
TAXES ON INCOME (Schedule of th
TAXES ON INCOME (Schedule of the Reconciliation of the Theoretical Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
TAXES ON INCOME [Abstract] | |||
Loss before taxes on income | $ (16,486) | $ (2,447) | $ (6,337) |
Theoretical tax expense computed at the Israeli statutory tax rate (26.5%, 26.5% and 25% for the years 2015, 2014 and 2013, respectively) | (4,369) | (649) | (1,584) |
Changes in valuation allowance | 3,716 | (1,328) | 3,987 |
Increase (decrease) in losses and temporary differences due to change in Israeli corporate and "Approved Enterprise" tax | 679 | $ 611 | $ (3,650) |
Write off of prepaid and withholding taxes | 1,150 | ||
Foreign tax rates differences related to subsidiaries | 103 | $ (34) | $ 4 |
Non-deductible expenses and other | 181 | (381) | (227) |
Non-deductible share-based compensation expense | 1,896 | 1,831 | 1,590 |
Actual tax expense | $ 3,356 | $ 50 | $ 120 |
Israeli Income tax rate | 26.50% | 26.50% | 25.00% |
TAXES ON INCOME (Schedule of In
TAXES ON INCOME (Schedule of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
TAXES ON INCOME [Abstract] | |||
Current taxes | $ 146 | $ 612 | $ 408 |
Deferred taxes (benefit) | 2,060 | $ (562) | $ (288) |
Write off of prepaid and withholding taxes | 1,150 | ||
Actual tax expense (benefit) | $ 3,356 | $ 50 | $ 120 |
TAXES ON INCOME (Schedule of De
TAXES ON INCOME (Schedule of Deferred Income Taxes) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Operating and capital loss carry forward | $ 14,842 | $ 13,103 |
Reserves and allowances | 948 | 1,183 |
Deferred tax asset before valuation allowance | 15,790 | 14,286 |
Valuation allowance | (15,124) | (11,408) |
Net deferred tax asset | 666 | 2,878 |
Deferred tax liability | (157) | (309) |
Net deferred tax asset | $ 509 | $ 2,569 |
GEOGRAPHIC INFORMATION (Schedul
GEOGRAPHIC INFORMATION (Schedule of Revenue by Geographic Location) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | $ 99,967 | $ 117,186 | $ 96,545 |
Europe [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 39,110 | 41,238 | 35,143 |
Asia and Oceania [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 28,495 | 41,990 | 29,909 |
Americas (excluding the United States) [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 14,347 | 3,299 | 5,323 |
Middle East and Africa [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 9,809 | 15,352 | 4,820 |
United States [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | $ 8,206 | $ 15,307 | $ 21,350 |
GEOGRAPHIC INFORMATION (Sched75
GEOGRAPHIC INFORMATION (Schedule of Major Customers) (Details) - Sales [Member] | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 37.00% | 44.00% | 45.00% |
Customer A [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 27.00% | 27.00% | 17.00% |
Customer B [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 10.00% | 17.00% | 17.00% |
Customer C [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 11.00% |
GEOGRAPHIC INFORMATION (Sched76
GEOGRAPHIC INFORMATION (Schedule of Long-Lived Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Long-lived assets | $ 5,189 | $ 5,957 |
Israel [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Long-lived assets | 4,924 | 5,603 |
United States [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Long-lived assets | 109 | 181 |
Other [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Long-lived assets | $ 156 | $ 173 |
FINANCIAL INCOME, NET (Details)
FINANCIAL INCOME, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financial income: | |||
Interest income | $ 2,174 | $ 1,900 | $ 1,358 |
Financial expenses: | |||
Exchange rate differences and other | 1,480 | 174 | 47 |
Amortization/accretion of premium/discount on marketable securities , net | 1,278 | 1,066 | 584 |
Financial and other expenses, total | $ (584) | $ 660 | $ 727 |
EARNINGS PER SHARE (Schedule of
EARNINGS PER SHARE (Schedule of Basic and Diluted Net Earnings (loss) Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator: | |||
Net loss | $ (19,842) | $ (2,497) | $ (6,457) |
Weighted average number of shares used in per share computations of net earnings (loss): | |||
Weighted average number of shares outstanding used in computing diluted net earnings per share | 33,419,917 | 33,143,168 | 32,680,766 |
Basic and diluted | $ (0.59) | $ (0.08) | $ (0.20) |
EARNINGS PER SHARE (Summary of
EARNINGS PER SHARE (Summary of Shares Excluded From Computation of Diluted Net Loss Per Ordinary) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Ordinary shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of shares excluded from computation of diluted net loss per share | 3,424,891 | 2,300,425 | 2,018,751 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) | Jan. 04, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Subsequent Event [Line Items] | ||||
Corporate tax rate (as a percent) | 26.50% | 26.50% | 25.00% | |
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Corporate tax rate (as a percent) | 25.00% |