Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2016shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | FY |
Trading Symbol | SPNS |
Entity Registrant Name | SAPIENS INTERNATIONAL CORP N V |
Entity Central Index Key | 885,740 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 49,035,951 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 60,908 | $ 54,351 |
Marketable securities | 18,220 | 8,776 |
Trade receivables (net of allowance for doubtful accounts of $ 199 and $ 623 at December 31, 2015 and 2016, respectively) | 34,684 | 29,761 |
Other receivables and prepaid expenses | 6,389 | 5,455 |
Total current assets | 120,201 | 98,343 |
LONG-TERM ASSETS: | ||
Marketable securities | 17,228 | 30,875 |
Capitalized software development costs, net | 20,755 | 19,856 |
Other intangible assets, net | 7,599 | 7,684 |
Property and equipment, net | 9,807 | 5,675 |
Goodwill | 73,597 | 70,035 |
Other long-term assets | 4,623 | 4,252 |
Severance pay fund | 4,041 | 5,551 |
Total long-term assets | 137,650 | 143,928 |
Total assets | 257,851 | 242,271 |
CURRENT LIABILITIES: | ||
Trade payables | 6,562 | 4,721 |
Employees and payroll accruals | 18,143 | 17,119 |
Accrued expenses and other liabilities | 13,906 | 14,893 |
Deferred revenues and customer advances | 9,137 | 10,268 |
Total current liabilities | 47,748 | 47,001 |
LONG-TERM LIABILITIES: | ||
Other long-term liabilities | 9,864 | 6,414 |
Accrued severance pay | 4,940 | 6,662 |
Total long-term liabilities | 14,804 | 13,076 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
REDEEMABLE NON-CONTROLLING INTEREST | 908 | 385 |
Share capital: | ||
Common shares of € 0.01 par value: Authorized: 70,000,000 shares at December 31, 2015 and 2016, respectively; Issued: 51,088,077 and 51,364,247 shares at December 31, 2015 and 2016, respectively; Outstanding: 48,759,781 and 49,035,951 shares at December 31, 2015 and 2016, respectively | 681 | 678 |
Additional paid-in capital | 226,782 | 233,980 |
Treasury shares, at cost - 2,328,296 Common shares at December 31, 2015 and 2016 | (9,423) | (9,423) |
Accumulated other comprehensive loss | (11,167) | (11,679) |
Accumulated deficit | (13,278) | (32,614) |
Total Sapiens International Corporation N.V. shareholders' equity | 193,595 | 180,942 |
Non-controlling interests | 796 | 867 |
Total equity | 194,391 | 181,809 |
Total liabilities and equity | $ 257,851 | $ 242,271 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | Dec. 31, 2016USD ($)shares | Dec. 31, 2016€ / shares | Dec. 31, 2015USD ($)shares | Dec. 31, 2015€ / shares |
Trade receivables, allowance for doubtful accounts | $ | $ 623 | $ 199 | ||
Common shares, par value | € / shares | € 0.01 | € 0.01 | ||
Common shares, Authorized | 70,000,000 | 70,000,000 | ||
Common shares, Issued | 51,364,247 | 51,088,077 | ||
Common shares, Outstanding | 49,035,951 | 48,759,781 | ||
Treasury shares, shares | 2,328,296 | 2,328,296 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | $ 216,190 | $ 185,636 | $ 157,450 |
Cost of revenues | 130,402 | 111,192 | 99,095 |
Gross profit | 85,788 | 74,444 | 58,355 |
Operating expenses: | |||
Research and development | 16,488 | 10,235 | 11,352 |
Selling, marketing, general and administrative | 44,460 | 39,859 | 32,097 |
Total operating expenses | 60,948 | 50,094 | 43,449 |
Operating income | 24,840 | 24,350 | 14,906 |
Financial income, net | 533 | 163 | 124 |
Income before taxes on income | 25,373 | 24,513 | 15,030 |
Taxes on income | (5,772) | (4,213) | (454) |
Net income | 19,601 | 20,300 | 14,576 |
Attributed to non-controlling interests | (43) | 59 | 131 |
Attributed to redeemable non-controlling interest | (135) | 1 | (18) |
Adjustment to redeemable non-controlling interest | 443 | 224 | 0 |
Net income attributable to Sapiens' shareholders | $ 19,336 | $ 20,016 | $ 14,463 |
Net earnings per share attributable to Sapiens' shareholders | |||
Basic | $ 0.4 | $ 0.42 | $ 0.31 |
Diluted | $ 0.4 | $ 0.41 | $ 0.3 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net income | $ 19,601 | $ 20,300 | $ 14,576 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 476 | (1,367) | (11,181) |
Unrealized gains (losses) arising from marketable securities during the period, net of tax | 41 | (37) | (158) |
Losses reclassified into earnings from marketable securities, net of tax | 0 | 5 | 3 |
Other Comprehensive Income (Loss), Net of Tax | 517 | (1,399) | (11,336) |
Total comprehensive income | 20,118 | 18,901 | 3,240 |
Comprehensive income (loss) attributed to non-controlling interests | (38) | 59 | 158 |
Comprehensive income (loss) attributed to redeemable non-controlling interest | (135) | 1 | (18) |
Comprehensive income adjustment to redeemable non-controlling interest | 443 | 224 | 0 |
Comprehensive income attributable to Sapiens' shareholders | $ 19,848 | $ 18,617 | $ 3,100 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Treasury shares | Accumulated other comprehensive income (loss) | Accumulated deficit | Non-controlling interests | |
Balance at Dec. 31, 2013 | $ 170,408 | $ 645 | $ 244,560 | $ (9,423) | $ 1,082 | $ (67,093) | $ 637 | |
Balance (in shares) at Dec. 31, 2013 | 46,014,982 | |||||||
Stock-based compensation | 1,067 | $ 0 | 1,067 | 0 | 0 | 0 | 0 | |
Employee stock options exercised (cash and cashless) | 1,569 | $ 17 | 1,552 | 0 | 0 | 0 | 0 | |
Employee stock options exercised (cash and cashless) (in shares) | 1,225,368 | |||||||
Warrants exercised (cashless) (in shares) | 438,961 | |||||||
Warrants exercised (cashless) | 0 | $ 5 | (5) | 0 | 0 | 0 | 0 | |
Dividend to non-controlling interests | (106) | 0 | 0 | 0 | 0 | 0 | (106) | |
Other comprehensive loss | (11,336) | 0 | 0 | 0 | (11,363) | 0 | 27 | |
Net income | 14,594 | 0 | 0 | 0 | 0 | 14,463 | 131 | |
Balance at Dec. 31, 2014 | 176,196 | $ 667 | 247,174 | (9,423) | (10,281) | (52,630) | 689 | |
Balance (in shares) at Dec. 31, 2014 | 47,679,311 | |||||||
Adjustment for acquisition under common control | 2,097 | $ 0 | 2,097 | 0 | 0 | 0 | 0 | |
Balance at Dec. 31, 2014 | [1] | 178,293 | $ 667 | 249,271 | (9,423) | (10,281) | (52,630) | 689 |
Balance (in shares) at Dec. 31, 2014 | [1] | 47,679,311 | ||||||
Stock-based compensation | 1,349 | $ 0 | 1,153 | 0 | 0 | 0 | 196 | |
Employee stock options exercised (cash and cashless) | 1,568 | $ 11 | 1,557 | 0 | 0 | 0 | 0 | |
Employee stock options exercised (cash and cashless) (in shares) | 1,080,470 | |||||||
Distribution of dividend | (7,186) | $ 0 | (7,186) | 0 | 0 | 0 | 0 | |
Dividend to non-controlling interests | (77) | 0 | 0 | 0 | 0 | 0 | (77) | |
Other comprehensive loss | (1,399) | 0 | 0 | 0 | (1,398) | 0 | (1) | |
Redeemable non-controlling interest | (224) | 0 | 0 | 0 | 0 | (224) | 0 | |
Distribution to ultimate parent for a business acquisition under common control | (10,815) | 0 | (10,815) | 0 | 0 | 0 | 0 | |
Net income | 20,300 | 0 | 0 | 0 | 0 | 20,240 | 60 | |
Balance at Dec. 31, 2015 | 181,809 | $ 678 | 233,980 | (9,423) | (11,679) | (32,614) | 867 | |
Balance (in shares) at Dec. 31, 2015 | 48,759,781 | |||||||
Stock-based compensation | 1,741 | $ 0 | 1,701 | 0 | 0 | 40 | ||
Stock-based compensation (in shares) | 0 | |||||||
Employee stock options exercised (cash and cashless) | 890 | $ 3 | 887 | 0 | 0 | 0 | 0 | |
Employee stock options exercised (cash and cashless) (in shares) | 276,170 | |||||||
Distribution of dividend | (9,859) | $ 0 | (9,786) | 0 | 0 | 0 | (73) | |
Other comprehensive loss | 517 | 0 | 0 | 0 | 512 | 0 | 5 | |
Redeemable non-controlling interest | (308) | 0 | 0 | 0 | 0 | (308) | 0 | |
Net income | 19,601 | 0 | 0 | 0 | 0 | 19,644 | (43) | |
Balance at Dec. 31, 2016 | $ 194,391 | $ 681 | $ 226,782 | $ (9,423) | $ (11,167) | $ (13,278) | $ 796 | |
Balance (in shares) at Dec. 31, 2016 | 49,035,951 | |||||||
[1] | Derived from the audited financial statements of the Company as of December 31, 2014, adjusted for the acquisition of Insseco (see note 1(d)(2)). |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 19,601 | $ 20,300 | $ 14,576 |
Reconciliation of net income to net cash provided by operating activities: | |||
Depreciation and amortization | 10,021 | 9,625 | 8,717 |
Stock-based compensation | 1,955 | 1,349 | 1,067 |
Amortization of premium and accrued interest on marketable securities | (516) | (453) | (225) |
Net changes in operating assets and liabilities | |||
Trade receivables, net | (5,435) | 1,893 | (6,637) |
Other operating assets | (3,309) | (1,229) | 127 |
Deferred tax assets, net | 1,664 | 2,169 | (1,020) |
Trade payables | 1,101 | 1,511 | (3,297) |
Other operating liabilities | 2,223 | 4,134 | 8,469 |
Deferred revenues and customer advances | (1,035) | 1,300 | (223) |
Accrued severance pay, net | (231) | (159) | 7 |
Net cash provided by operating activities | 26,039 | 40,440 | 21,561 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (4,664) | (2,815) | (1,468) |
Capitalized software development costs | (5,545) | (6,032) | (6,094) |
Net cash paid for acquisitions (b) | (4,382) | (2,934) | (2,064) |
Investment in marketable securities | (9,017) | (7,678) | (34,906) |
Proceeds from sales of marketable securities | 13,898 | 1,499 | 1,543 |
Restricted cash, net | 1,393 | (893) | 239 |
Net cash used in investing activities | (8,317) | (18,853) | (42,750) |
Cash flows from financing activities: | |||
Proceeds from employee stock options exercised | 890 | 1,568 | 1,569 |
Distribution to ultimate parent for a business acquisition under common control (c) | (1,440) | (8,482) | 0 |
Repayment of loan | (824) | 0 | 0 |
Distribution of dividend | (9,786) | (7,186) | 0 |
Dividend to non-controlling interest | (73) | (77) | (106) |
Net cash provided by (used in) financing activities | (11,233) | (14,177) | 1,463 |
Effect of exchange rate changes on cash | 68 | (459) | (3,187) |
Increase (decrease) in cash and cash equivalents | 6,557 | 6,951 | (22,913) |
Cash and cash equivalents at beginning of year | 54,351 | 47,400 | 70,313 |
Cash and cash equivalents at end of year | 60,908 | 54,351 | 47,400 |
Supplemental cash flow activities: | |||
Interest paid | 48 | 6 | 5 |
Interest received | (1,321) | (1,199) | (604) |
Income taxes | 1,196 | 2,234 | 665 |
Other long term liabilities | |||
Working capital, net (excluding cash and cash equivalents) | 1,547 | (1,221) | (228) |
Other long term assets | (2,089) | (183) | 0 |
Other long term liabilities | 1,420 | 1,424 | 0 |
Goodwill and other intangible assets | (5,260) | (3,903) | (2,013) |
Contingent payments | 0 | 949 | 0 |
Redeemable non-controlling interest | 0 | 0 | 177 |
Fair Value Of Net Assets Acquired | (4,382) | (2,934) | (2,064) |
Non-cash transactions: | |||
Loan and contingent payments to ultimate parent | $ 0 | $ (2,333) | $ 0 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |
GENERAL | NOTE 1: GENERAL a. General: Sapiens International Corporation N.V. (“Sapiens”) and its subsidiaries (collectively, the “Company”), a member of the Formula Systems (1985) Ltd. Group, is a global provider of software solutions for the insurance industry, with an emerging focus on the broader financial services sector. The Company's offerings include a broad range of software solutions and services, comprised of: (i) core software solutions for the insurance industry, including Property & Casualty/General Insurance (“P&C”) and Life, Annuities and Pensions (“L&P”) products, and record keeping software solutions for providers of Retirement Services; (ii) variety of technology based solutions including business decision management solutions for the financial services industry, including insurance, banking and capital markets; and (iii) global services including project delivery and implementation of the Company’ software solutions. The Company operates primarily in North America, United Kingdom, Europe, Israel, and Asia Pacific. b. Acquisition of Maximum Processing: On May 26, 2016, Sapiens entered into an agreement to purchase 100% of Maximum Processing Inc.’s (MaxPro) total shares outstanding. MaxPro specializes in providing business and technology solutions across the insurance industry. Sapiens paid the acquisition consideration in cash, consisting of $4,278 (of which $1,490 was deposited at closing in escrow). In addition, the seller has performance based payments relating to achievements of revenue and profitability targets over three years (2016-2018) of up to $3,126 that are subject to continued employment and therefore, not part of the purchase price. c. Acquisition of 4Sight business intelligence: On June 7, 2016, Sapiens entered into an agreement to purchase 100% of 4Sight Business Intelligence Inc.’s (4Sight) total shares outstanding. 4sight's system provides analytics software for the insurance industry. Sapiens paid the acquisition consideration of $330. In addition, the seller has performance based payments relating to achievements of revenue and profitability targets over three years (2016-2018) of up to $2,600. Such payments are also subject to continued employment and therefore, are not part of the purchase price. d. Acquisitions in previous years: 1. On May 6, 2015, the Company completed the agreement to acquire all of the outstanding shares of Ibexi Solution Private Limited (Ibexi), an India-based provider of insurance business and technology solutions, in total consideration of $4,764 including a contingent obligation valued at $949 at the acquisition date. As of December 31, 2016, the estimated fair value of the contingent payment is $1,680. In addition, an amount of approximately $1,900 is subject to continued employment and therefore not part of the purchase price, but is recognized over the service period. 2. On August 18, 2015 (the “acquisition date”), Sapiens completed the acquisition from Asseco Poland S.A. (“Asseco” or the “Seller”) of all issued and outstanding shares of Insseco. Asseco is the ultimate parent company of Sapiens, through holding in Formula Systems, which has been lastly effective as of December 23, 2014 and thereafter, the direct parent company of Sapiens. Insseco is a newly established company into which Asseco transferred all of its Polish insurance employees, certain fixed assets, certain customer contracts and certain software including intellectual property rights. Insseco has an established presence in the Polish insurance market, and services major insurance customers in Poland, including top tier insurance carriers. Sapiens paid the acquisition consideration in cash, consisting of 34.3 million Polish Zloty or approximately $9,100. In addition, the seller has upside or downside performance based payments relating to achievements of revenue goals and profitability over the next five years. If the aggregate revenues generated by Insseco from its activity from July 1, 2015 through June 30, 2020 exceed 90 million Polish Zloty or approximately $23,800, the Seller shall be entitled to receive additional amounts ranging from 3% to 15% of the excess amount of the respective revenues. If the aggregate revenues generated by Insseco for the period from July 1, 2015 through June 30, 2018 are below 84 million Polish Zloty or $22,200, the seller shall pay Sapiens an amount equal to 35% of the deficiency below such amount. In addition, the amounts payable to the seller may be adjusted upwards or downwards as a result of changes in the profitability of a specific account that Sapiens acquired as part of the acquisition. The estimated fair value of the contingent payments as of December 31, 2016 is $1,000. The acquisition of Insseco from Asseco, which is the ultimate parent company of Sapiens is a transaction between entities under common control, and therefore accounted for under the pooling of interest method in accordance with ASC 805, Business Combinations. Under the pooling-of-interests method, combination between two businesses under common control is accounted for at carrying amounts with retrospective adjustment of prior period financial statements. As the common control achieved on December 23, 2014, the balance sheet as of December 31, 2014 of Sapiens was adjusted to reflect the carrying amounts combination between Sapiens and Insseco. The results of Sapiens for the twelve-month period ended December 31, 2015 were also adjusted to reflect the combination with Insseco, accordingly. Under the pooling-of-interest method, the equity accounts of the combining entities are combined and the difference between the consideration paid and the net assets acquired is reflected as an equity transaction (i.e., distribution to parent company). As opposed to the purchase method of accounting, no intangible assets are recognized in the transaction, other than those existed in the combining entities and no goodwill is recognized as a result of the combination. The application of the pooling-of-interest method with respect to the acquisition of Insseco increased the total assets, liabilities and equity as of December 31, 2014 by $4,387, $2,290, and $2,097, respectively. Revenues, pretax income and net income of Insseco for the twelve-month period ended December 31, 2015, which are included in the consolidated statements of income amounted to $10,516, $1,324 and $1,165, respectively. 3. On August 1, 2014, the Company completed the acquisition of all of the outstanding shares of Knowledge Partners International (KPI), a pioneer and recognized leader in decision management consultancy, services and training, in consideration of $ 2,380, composed of the following: Cash $ 2,203 Share consideration * 177 Total purchase price $ 2,380 *) Sapiens issued 57,000 shares of its subsidiary, Sapiens Software Solution (Decision) Ltd, reflecting 3% of the subsidiary's outstanding shares. According to the agreement, the sellers will have the right to sell their minority interests to the Company during the period commencing on the date that is 48 months following the acquisition date, and the Company will have a corresponding call option. Sapiens issued additional 88,500 restricted shares of its subsidiary, Sapiens Software Solution (Decision) Ltd, expensed over a vesting period of three years commencing on the acquisition date. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2: SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in United States ("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 United States dollars: The currency of the primary economic environment in which the operations of Sapiens and certain subsidiaries are conducted is the U.S. dollar ("dollar"); thus, the dollar is the functional currency of Sapiens and certain subsidiaries. Sapiens and certain subsidiaries' transactions and balances denominated in dollars are presented at their original amounts. Non-dollar transactions and balances have been remeasured to dollars in accordance with ASC 830, "Foreign Currency Matters". All transaction gains and losses from remeasurement of monetary balance sheet items denominated in non-dollar currencies are reflected in the statements of income as financial income or expenses, as appropriate. For those subsidiaries, whose functional currency has been determined to be their local currency, assets and liabilities are translated at year-end exchange rates and statement of income items are translated at average exchange rates prevailing during the year. Such translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) in equity. c. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. Non-controlling interests of subsidiaries represent the non-controlling shareholders' share of the total comprehensive income (loss) of the subsidiaries and fair value of the net assets upon the acquisition of the subsidiaries. The non-controlling interests are presented in equity separately from the equity attributable to the equity holders of the Company. Redeemable non-controlling interests are classified as mezzanine equity, separate from permanent equity, on the consolidated balance sheets and measured at each reporting period at the higher of their redemption amount or the non-controlling interest book value, in accordance with the requirements of Accounting Standards Codification d. Cash equivalents: Cash equivalents are short-term highly liquid investments that are readily convertible to cash, with original maturities of three months or less at acquisition. e. Restricted cash: The Company maintains certain cash amounts restricted as to withdrawal or use. As of December 31, 2015, the Company maintained a restricted cash balance of $1,370 that represented security deposits with respect to lease agreements, hedging transactions and credit lines from banks. The restricted cash balance was released during 2016. Restricted cash included in other receivables and prepaid expenses. f. Marketable securities: The Company accounts for all its investments in debt securities, in accordance with ASC 320, “Investments - Debt and Equity Securities”. The Company classifies all debt securities as “available-for-sale”. All of the Company’s investments in available-for-sale securities are reported at fair value. Unrealized gains and losses are comprised of the difference between fair value and the amortized cost of such securities and are recognized, net of tax, in accumulated other comprehensive income (loss). The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization together with interest on securities is included in “financial income, net”. The Company recognizes an impairment charge when a decline in the fair value of its investments in debt securities below the cost basis of such securities is judged to be other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the 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. Securities that are deemed other-than-temporarily impaired, the amount of impairment is recognized in “net gain on sale of marketable securities previously impaired” in the statements of income and is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income. During 2014, 2015 and 2016, the Company did not recognize an impairment charge as the decline in fair value of its investment in marketable securities is not judged to be other-than-temporary. g. Property and equipment, net: Property and equipment are stated at cost, net of accumulated depreciation using the straight-line method over the estimated useful lives of the assets, at the following annual rates: % Computers and peripheral equipment 33 Office furniture and equipment 6 - 20 Buildings 2.5 Leasehold improvements are amortized using the straight-line method over the term of the lease (including option terms that are deemed to be reasonably assured) or the estimated useful life of the improvements, whichever is shorter. h. Research and development costs: Research and development costs incurred in the process of software production before establishment of technological feasibility are charged to expenses as incurred. Costs incurred to develop software to be sold are capitalized after technological feasibility is established in accordance with ASC 985-20, “Software - Costs of Software to be Sold, Leased, or Marketed”. Based on the Company’s product development process, technological feasibility is established upon completion of a detailed program design. Costs incurred by the Company between completion of the detailed program design and the point at which the product is ready for general release, have been capitalized. Capitalized software development costs are amortized by the straight-line method over the estimated useful life of the software product (between 5-7 years). i. Other intangible assets, net: Technology and patents acquired are amortized over their estimated useful life on a straight-line basis. The acquired customer relationships are amortized over their estimated useful lives in proportion to the economic benefits realized or the straight-line method. The weighted average annual rates for other intangible assets are as follows: % Technology 13 - 25 Customer relationships 10 - 17 Patent 10 j. Impairment of long-lived assets: The Company's long-lived assets and identifiable intangibles that are subject to amortization are reviewed for impairment in accordance with ASC 360 "Property, Plant, and Equipment", 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. During 2014, 2015 and 2016, no impairment losses have been identified. k. Goodwill: Goodwill represents the excess of the purchase price in a business combination over the fair value of the net tangible and intangible assets acquired. Under ASC 350,"Intangibles- Goodwill and Other" ("ASC 350"), goodwill is subject to an annual impairment test or more frequently if impairment indicators are present. Goodwill impairment is deemed to exist if the net book value of a reporting unit exceeds its estimated fair value. The Company operates in four reporting units: Emerge, L&P, Decision and P&C. The Company applied the provisions of ASC 350 for the Company's annual impairment test. Under the provisions, an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. The Company performed a qualitative assessment during the fourth quarter of each of 2014, 2015 and 2016 and concluded that the qualitative assessment did not result in a more likely than not indication of impairment, and therefore no further impairment testing was required. l. Revenue recognition: The Company generates revenues from sales of software licenses which normally include significant implementation services that are considered essential to the functionality of the software license. In addition, the Company generates revenues from post implementation consulting services and maintenance services. Revenues are recognized when persuasive evidence of an agreement exists, delivery of the product has occurred, the fee is fixed or determinable, and collectability is probable. The Company considers all arrangements with payment terms extending beyond six months from the delivery of the elements not to be fixed or determinable. If the fee is not fixed or determinable, revenue is recognized as payments become due from the customer, provided that all other revenue recognition criteria have been met. The Company accounts for revenues from its services (either fixed price or Time and Materials (T&M)) that require significant customization, integration and installation under ASC 605-35, "Construction-Type and Production-Type Contracts", using the percentage-of-completion ("POC") method of accounting based on the ratio of costs related to contract performance incurred to date to the total estimated amount of such project costs. The revenues recognized are limited to revenues derived from the Company's enforceable right to receive payment for services provided by it in accordance with its contracts with its customers. In accordance with ASC 985-605, the Company establishes Vendor Specific Objective Evidence ("VSOE") of fair value of maintenance services (PCS). The Company's policy for establishing VSOE of fair value of maintenance services is based on the price charged when the maintenance is renewed separately. Provisions for estimated losses on contracts in progress are made in the period in which they are first determined, in the amount of the estimated loss on the entire contact. Maintenance revenue is recognized ratably over the term of the maintenance agreement. Deferred revenues and customer advances include unearned amounts received under maintenance and support agreements and amounts received from customers, for which revenues have not yet been recognized. In addition, the Company derives a significant portion of its revenues from post implementation consulting services provided on a "Time and Materials" ("T&M") basis which are recognized as services are performed. m. Income taxes: The Company accounts for income taxes in accordance with ASC 740, "Income Taxes". This topic prescribes the use of the asset and liability method, whereby deferred tax asset and liability account balances are determined based on the differences between the 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. The Company implements a two-step approach to recognize and measure 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% (cumulative basis) likely to be realized upon ultimate settlement. The Company classifies interest as financial expenses and penalties as selling, marketing, general and administration expenses. n. Concentrations of credit risks: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, restricted cash, trade receivables, marketable securities and foreign currency derivative contracts. The Company's cash and cash equivalents and restricted cash are invested in bank deposits mainly in dollars, with a significant portion also invested in NIS. Deposits in the U.S. may be in excess of insured limits and are not insured in other jurisdictions. Generally, these banks deposits may be redeemed upon demand and therefore bear minimal risk. The Company's trade receivables are generally derived from sales to large and solid organizations located mainly in North America, Israel, United Kingdom, Rest of Europe and Asia Pacific. The Company performs ongoing credit evaluations of its customers and to date has not experienced any material losses. In certain circumstances, the Company may require prepayment. An allowance for doubtful accounts is determined with respect to those amounts that the Company has determined to be doubtful of collection. Provisions for doubtful accounts are recorded in selling, marketing, general and administrative expenses. The Company's marketable securities include investment in corporate and government debentures. The Company's investment policy limits the amount that the Company may invest in any one type of investment or issuer, thereby reducing credit risk concentrations. The Company entered into forward contracts, and option contracts intended to protect against the increase in value of forecasted non-dollar currency cash flows. The derivative instruments hedge a portion of the Company's non-dollar currency exposure. No off-balance sheet concentrations of credit risk exist. o. Accrued severance pay: The Company's liability for severance pay for its Israeli employees is calculated pursuant to Israel's Severance Pay Law based on the most recent monthly salary of the employees multiplied by the number of years of employment as of the balance sheet date. Employees are entitled to one month's salary for each year of employment, or a portion thereof. The Company's liability is fully provided by monthly deposits with insurance policies and severance pay funds and by an accrual. The deposited funds include profits (losses) accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israel's Severance Pay Law or employment agreements. The value of the deposited funds is based on the cash surrendered value of these policies and recorded as an asset in the Company's consolidated balance sheets. In addition, the Company signed a collective agreement with certain employees, according to which the Company's contributions for severance pay shall be in lieu of severance compensation and that upon release of the policy to the employee, no additional payments shall be made by the Company to the employee. Generally, the Company, under its sole discretion, pays to these employees the entire liability, irrespective of the collective agreement described per above. Therefore, the net obligation related to those employees is stated on the balance sheet as accrued severance pay. The Company's agreements with certain employees in Israel are in accordance with Section 14 of the Severance Pay Law, 1963, whereas, the Company's contributions for severance pay shall be in lieu of its severance liability. Upon contribution of the full amount of the employee's monthly salary, and release of the policy to the employee, no additional calculations shall be conducted between the parties regarding the matter o severance pay and no additional payments shall be made by the Company to the employee. Further, the related obligation and amounts deposited on behalf of such obligation are not stated on the balance sheet, as they are legally released from obligation to employees once the deposit amounts have been paid. Severance expense for the years 2014, 2015 and 2016 amounted to $3,022, $3,518 and $4,094, respectively. p. Basic and diluted net earnings per share: Basic net earnings per share are computed based on the weighted average number of common shares outstanding during each year. Diluted net earnings per share are computed based on the weighted average number of common shares outstanding during each year plus dilutive potential equivalent common shares considered outstanding during the year, in accordance with ASC 260, "Earnings Per Share". q. Stock-based compensation: The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation - Stock Compensation" ("ASC 718"), which requires the measurement and recognition of compensation expense based on estimated fair values for all share-based payment awards made. ASC 718 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 statements of income. The Company uses the Binomial Lattice ("Binomial model") option-pricing model to estimate the fair value for any options granted. The Binomial model takes into account variables such as volatility, dividend yield rate, and risk free interest rate and also allows for the use of dynamic assumptions and considers the contractual term of the option, the probability that the option will be exercised prior to the end of its contractual life, and the probability of termination or retirement of the option holder in computing the value of the option. Stock-based compensation cost is measured at the grant date, based on the fair value of the award. The Company recognizes compensation expense for the value of its awards, which have graded vesting, based on the straight-line basis over the requisite service period of the award, net of estimated forfeitures. Estimated forfeitures are based on actual historical pre-vesting forfeitures. The fair value of each option granted in 2014, 2015 and 2016 using the Binomial model, was estimated on the date of grant with the following assumptions: Year ended December 31, 2014 2015 2016 Contractual life 6 years 6 years 6 years Expected exercise factor 1.5-2 1.5-2.5 2-2.8 Dividend yield 0% 0% 0% Expected volatility (weighted average) 48.9% 43.0%-44.1% 34.9%-42.4% Risk-free interest rate 1.8%-1.9% 1.6%-1.8% 1.3%-1.7% The risk-free interest rate assumption is based on the yield from U.S. Treasury zero-coupon bonds with an equivalent term as of the Company's employee stock options. Since dividend payment is applied to reduce the exercise price of the option, the effect of the dividend protection is reflected by using an expected dividend assumption of zero. The expected life of options granted is derived from the output of the option valuation model and represents the period of time the options are expected to be outstanding. The expected exercise factor is based on industry acceptable rates since no actual historical behavior by option holders exists. Expected volatility is based on the historical volatility of the Company. r. Fair value of financial instruments: ASC 820, "Fair Value Measurements and Disclosures" ("ASC 820"), defines fair value as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. 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. As a basis for considering such assumptions, ASC 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 - Valuations based on quoted prices in active markets for identical assets that the Company has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. Level 2 - Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The Company measures its marketable debt securities and foreign currency derivative instruments at fair value. The Company's marketable debts securities are traded in markets that are not considered to be active, but are valued based on quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency and accordingly are categorized as Level 2. Foreign currency derivative contracts are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, and accounts payable approximate fair value due to the short-term maturities of such instruments. s. Derivatives and hedging: The Company enters into option contracts and forward contracts to hedge certain transactions denominated in foreign currencies. The purpose of the Company's foreign currency hedging activities is to protect the Company from risk that the eventual dollar cash flows from international activities will be adversely affected by changes in the exchange rates. The Company's option and forward contracts do not qualify as hedging instruments under ASC 815, "Derivatives and hedging". Changes in the fair value of option strategies are reflected in the consolidated statements of income as financial income or expense. In 2014, 2015 and 2016, the Company entered into option contracts in the notional amounts of $33,270, $9,250 and $26,336, respectively, and in 2014, 2015 and 2016 the Company entered into forward contracts in the notional amounts of $7,383, $42,770 and $17,668, respectively, in order to protect against foreign currency fluctuations. As of December 31, 2014, 2015 and 2016, the Company had outstanding options and forward contracts, in the notional amount of $25,772, $21,876 and $0, respectively. In 2014, 2015 and 2016, the Company recorded income (expenses) of $(397), $230 and $849, respectively, with respect to the above transactions, presented in the statements of income as financial income (expenses). t. Treasury shares: Repurchased common shares are held as treasury shares. The Company presents the cost to repurchase treasury stock as a reduction of shareholders’ equity. u. Comprehensive income (loss): The Company accounts for comprehensive income (loss) in accordance with ASC 220, "Comprehensive Income". Comprehensive income generally represents all changes in shareholders' equity during the period except those resulting from investments by, or distributions to, shareholders. The components of accumulated other comprehensive loss, in the amount of $11,679 and $11,167 at December 31, 2015 and 2016, respectively, were as follows: December 31, 2015 2016 Foreign currency translation differences $ 11,492 $ 11,021 Unrealized losses on available-for-sale marketable securities, net of tax 187 146 $ (11,679 ) $ (11,167 ) v. Impact of recently issued accounting standards: In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), which amends the existing accounting standards for revenue recognition. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which delays the effective date of ASU 2014-09 by one year. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. The new revenue recognition standard will be effective in the first quarter of 2018, with the option to adopt it in the first quarter of 2017. The Company currently anticipates adopting the new standard effective January 1, 2018. The new standard also permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective method). The Company preliminarily anticipates adopting the standard using the modified retrospective method. However, the Company is continuing to evaluate the impact of the standard on its consolidated financial statements and related disclosures and the adoption method is subject to change. In February 2016, the FASB issued ASU 2016-02, “Leases” (Topic 842), whereby, lessees will be required to recognize for all leases at the commencement date a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. A modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements must be applied. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Companies may not apply a full retrospective transition approach. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018. Early application is permitted. The Company is evaluating the potential impact of this pronouncement. In March 2016, the FASB issued ASU 2016-09, which provides for improvements to employee share-based payment accounting. ASU 2016-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. ASU 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Company does not expect that this new guidance will have a material impact on the Company’s consolidated financial statements. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing” (“ASU 2016-10”), which clarifies the following two aspects of Topic 606: (a) identifying performance obligations; and (b) the licensing implementation guidance. The amendments do not change the core principle of the guidance in Topic 606. The new guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, which will be our interim period beginning January 1, 2018. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods with that reporting period. We are evaluating the impact of this standard. In November 2016, the FASB issued Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18), which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This guidance will be effective for us in the first quarter of 2018 and early adoption is permitted. The Company is still evaluating the effect that this guidance will have on its consolidated financial statements and related disclosures |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
MARKETABLE SECURITIES | NOTE 3: MARKETABLE SECURITIES December 31, 2016 Gross Gross Amortized unrealized unrealized Fair cost gains losses value Government debentures fixed interest rate $ 3,167 - $ (3) $ 3,164 Corporate debentures fixed interest rate 32,473 - (189) 32,284 $ 35,640 - $ (192) $ 35,448 December 31, 2015 Gross Gross Amortized unrealized unrealized Fair cost gains losses value Government debentures fixed interest rate $ 5,242 - $ (19) $ 5,223 Corporate debentures fixed interest rate 34,663 - (235) 34,428 $ 39,905 - $ (254) $ 39,651 As of December 31, 2016, the contractual maturities of available-for-sale marketable securities are up to three years. $ 18,220 334 226 |
OTHER LONG-TERM ASSETS
OTHER LONG-TERM ASSETS | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER LONG TERM ASSETS | NOTE 4: OTHER LONG TERM ASSETS December 31, 2015 2016 Deferred tax assets $ 2,779 $ 2,261 Other 1,473 2,362 $ 4,252 $ 4,623 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 5: PROPERTY AND EQUIPMENT, NET December 31, 2015 2016 Cost: Computers and peripheral equipment $ 15,477 $ 18,503 Office furniture, equipment and other 4,228 4,309 Buildings and Leasehold improvements 2,780 6,051 22,485 28,863 Accumulated depreciation: Computers and peripheral equipment 12,712 14,737 Office furniture, equipment and other 2,607 2,682 Leasehold improvements 1,491 1,637 16,810 19,056 Depreciated cost $ 5,675 $ 9,807 Depreciation expense totaled $ 1,582 2,080 2,835 |
CAPITALIZED SOFTWARE DEVELOPMEN
CAPITALIZED SOFTWARE DEVELOPMENT COSTS, NET | 12 Months Ended |
Dec. 31, 2016 | |
Research and Development [Abstract] | |
CAPITALIZED SOFTWARE DEVELOPMENT COSTS, NET | NOTE 6: CAPITALIZED SOFTWARE DEVELOPMENT COSTS, NET Year ended December 31, 2015 2016 Balance at the beginning of the year $ 19,243 $ 19,856 Capitalization 6,032 5,545 Amortization (5,439) (4,929) Functional currency translation adjustments 20 283 Balance at the year end $ 19,856 $ 20,755 Amortization of capitalized software development costs for 2014, 2015 and 2016, was $ 4,926 5,439 4,929 |
OTHER INTANGIBLE ASSETS, NET
OTHER INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
OTHER INTANGIBLE ASSETS, NET | NOTE 7: OTHER INTANGIBLE ASSETS, NET a. Other intangible assets, net, are comprised of the following: weighted average December 31, (years) 2015 2016 Original amounts: Customer relationships 3.92 $ 10,853 $ 11,804 Technology 4.47 6,717 8,080 Patent 7.5 1,230 1,248 18,800 21,132 Accumulated amortization: Customer relationships 6,361 7,756 Technology 4,581 5,475 Patent 174 302 11,116 13,533 Other intangible assets, net $ 7,684 $ 7,599 b. Amortization of other intangible assets was $ 2,209 2,106 2,257 c. Estimated amortization expense for future periods: For the year ended December 31, 2017 $ 2,294 2018 1,951 2019 1,323 2020 524 2021 and thereafter 1,507 $ 7,599 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | NOTE 8: GOODWILL Year ended December 31, 2015 2016 Balance at the beginning of the year $ 67,698 $ 70,035 Acquisition of subsidiaries 2,588 2,967 Functional currency translation adjustments (251) 595 Balance at year- end $ 70,035 $ 73,597 |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER LIABILITIES | NOTE 9: ACCRUED EXPENSES AND OTHER LIABILITIES December 31, 2015 2016 Government authorities $ 3,419 $ 5,009 Accrued royalties to the IIA (Note 10a) 251 259 Accrued expenses 11,223 8,638 $ 14,893 $ 13,906 |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 10: COMMITMENTS AND CONTINGENT LIABILITIES a. Sapiens Technologies (1982) Ltd. ("Sapiens Technologies"), a subsidiary incorporated in Israel, was partially financed under programs sponsored by the Israel Innovation Authority ("IIA"), formerly the Office of the Chief Scientist, for the support of certain research and development activities conducted in Israel. I n exchange for participation in the programs by the IIA, the Company agreed to pay 3.5 0.35 The royalties will be paid up to a maximum amount equaling 100 150 Royalty expense amounted to $ 618 505 503 As of December 31, 2016, the Company had a contingent liability to pay royalties of $ 7,119 b. Lease commitments: The Company leases office space, office equipment and various motor vehicles under operating leases. 1. The Company's office space and office equipment are rented under several operating leases. Future minimum lease commitments under non-cancelable operating leases for the years ended December 31, were as follows: 2017 $ 4,050 2018 3,426 2019 2,974 2020 1,085 2021 and thereafter 83 $ 11,618 Rent expense for the years ended December 31, 2014, 2015 and 2016 was $ 3,782 4,418 6,284 2. The Company leases its motor vehicles under cancelable operating lease agreements. The minimum payment under these operating leases, upon cancellation of these lease agreements was $ 168 c. The Company provided bank guarantees in the amount of $ 827 850 As of December 31, 2016, the Company had no restricted bank deposits in favor of the bank guarantees. d. On August 27, 2015, the Company's wholly-owned subsidiary was summoned to a hearing at a court in Amsterdam in connection with a claim initiated against it by one of its customers. Although the software system provided by the Company's subsidiary has been used by the customer since 2008, the customer claims that the software system furnished it did not comply with its requirements and that the subsidiary failed to correct errors in the software systems in accordance with the service level agreement between the parties. The remedies sought by the customer are: (i) termination of all contracts with the subsidiary; and (ii) refund of all amounts paid by the customer to the subsidiary under the foregoing contracts plus damages in an aggregate amount of approximately € 21.5 As of the date of publication of these financial statements, the legal proceedings are at its early stage and the Company has included in these financial statements a provision which reflects the Company’s current estimate of the potential outcome of the foregoing claim. |
TAXES ON INCOME
TAXES ON INCOME | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
TAXES ON INCOME | NOTE 11: TAXES ON INCOME a. Israeli taxation: 1. Corporate tax rates in Israel: The Israeli corporate income tax rate was 25 26.5 25 In December 2016, the Israeli Parliament approved the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), 2016 which reduces the corporate income tax rate to 24 25 23 2. Tax benefits under the Israel Law for the Encouragement of Capital Investments, 1959 ("the Law"): The entitlement to the above benefits is conditional upon the fulfilling of the conditions stipulated by the Laws and regulations. Should the certain Israeli subsidiaries fail to meet such requirements in the future, income attributable to their Approved Enterprise and Preferred Enterprise programs could be subject to the statutory Israeli corporate tax rate and they could be required to refund a portion of the tax benefits already received, with respect to such programs. As of December 31, 2016, management believes that these subsidiaries are following all the conditions required by the Law. Approved enterprise tax regime Under Approved Enterprise track, the Company is tax exempt in the first two years/six years/ten years of the benefit period (dependent on the development area) and subject to tax at the reduced rate of 10 25 If a dividend is distributed out of tax exempt profits, as above, the Company will become liable for tax at the rate applicable to its profits from the approved enterprise in the year in which the income was earned, as if it was not under the Approved Enterprise track. The Company's policy is not to distribute such a dividend. Preferred enterprise tax regime In August 2013, the Law for Changing National Priorities (Legislative Amendments for Achieving Budget Targets for 2013 and 2014), 2013 which includes Amendment 71 to the Law for the Encouragement of Capital Investments ("the Amendment") was enacted. Per the Amendment, the tax rate on preferred income from a preferred enterprise in 2014 and thereafter will be 16% (in development area A - 9%). As for changes in tax rates resulting from the enactment of Amendment 73 to the Law, see below. As of December 31, 2015, some of the Company Israeli subsidiaries had filed a request to apply the new benefits under the 2011 Amendment and therefore subjected to the amended tax rate of 16%. The Amendment also prescribes that any dividends distributed to individuals or foreign residents from the preferred enterprise's earnings as above will be subject to tax at a rate of 20 New Amendment- Technological preferred enterprise In December 2016, the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), 2016, which includes Amendment 73 to the Law for the Encouragement of Capital Investments ("the Amendment"), was published. The Amendment prescribes special tax tracks for technological enterprises, which are subject to rules that are to be issued by the Minister of Finance by March 31, 2017. The new tax track that may be relevant to certain of the Company ' 12 Since as of December 31, 2016 definitive criteria to determine the tax benefits has not yet been established, it cannot be concluded that the legislation in respect of technological enterprises had been enacted or substantively enacted as of that date. Accordingly, the above changes in the tax rates relating to technological enterprises were not taken into account in the computation of deferred taxes as of December 31, 2016. 3. Foreign Exchange Regulations: Under the Foreign Exchange Regulations, some of the Company's Israeli subsidiaries calculate their 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. Income taxes on non-Israeli subsidiaries: Non-Israeli subsidiaries are taxed according to the tax laws in their respective country of residence. Neither Israeli income taxes, foreign withholding taxes nor deferred income taxes were provided in relation to undistributed earnings of the non-Israeli subsidiaries. This is because the Company intends to permanently reinvest undistributed earnings in the foreign subsidiaries in which those earnings arose. If these earnings were distributed in the form of dividends or otherwise, the Company would be subject to additional Israeli income taxes (subject to an adjustment for foreign tax credits) and non-Israeli withholding taxes. The amount of undistributed earnings of foreign subsidiaries that are considered to be reinvested as of December 31, 2016 was $ 23,495 1,665 d. Net operating losses carry forward: As of December 31, 2016, certain subsidiaries had tax loss carry-forwards totaling approximately $ 24,177 e. Deferred tax assets and liabilities: Deferred 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 tax purposes. Significant components of the Company deferred tax assets are as follows: December 31, 2015 2016 Deferred tax assets: Net operating losses carry forward $ 7,275 $ 6,515 Research and development 2,123 1,619 Other 3,188 3,155 Deferred tax assets before valuation allowance 12,586 11,289 Valuation allowance (6,212) (6,589) Deferred tax assets 6,374 4,700 Deferred tax liabilities: Capitalized software development costs (2,804) (3,011) Acquired intangibles (1,472) (1,202) Property and equipment (53) (369) Other (163) (24) Deferred tax liabilities (4,492) (4,606) Deferred tax assets, net $ 1,882 $ 94 December 31, 2015 2016 Long-term deferred tax assets, net 2,779 2,261 Long-term deferred tax liabilities, net (897) (2,167) Deferred tax assets, net $ 1,882 $ 94 Long-term deferred tax assets are included in other long-term assets in the balance sheets. Long-term deferred tax liabilities are included in other long-term liabilities in the balance sheets. The Company has provided valuation allowances in respect of certain deferred tax assets resulting from operating losses carry forwards and other reserves and allowances due to uncertainty concerning realization of these deferred tax assets. f. Year ended December 31, 2014 2015 2016 Domestic (Israel) $ 11,281 $ 19,478 $ 13,701 Foreign 3,749 5,035 11,672 $ 15,030 $ 24,513 $ 25,373 g. A reconciliation between the theoretical tax expense, assuming all income is taxed at the statutory tax rate applicable to income for an Israeli company, and the actual tax expense as reported in the statements of income is as follows: Year ended December 31, 2014 2015 2016 Income before taxes on income, as reported in the statements of income $ 15,030 $ 24,513 $ 25,373 Statutory tax rate in Israel 26.5 % 26.5 % 25 % Theoretical taxes on income $ 3,983 $ 6,496 $ 6,343 Increase (decrease) in taxes resulting from: Effect of different tax rates 362 117 (382) Effect of “Approved, Beneficiary or Preferred Enterprise” status (2,323) (2,406) (1,338) Utilization of carry forward tax losses for which valuation allowance was provided (1,177) (195) - Non-deductible expenses 80 569 584 Recognition of deferred taxes during the year for which valuation allowance was provided in prior years (1,496) - - Losses and temporary differences for which valuation allowance was provided 580 127 377 Others 445 (495) 188 Taxes on income, as reported in the statements of income $ 454 $ 4,213 $ 5,772 h. Taxes on income are comprised as follows: Year ended December 31, 2014 2015 2016 Current $ 1,474 $ 2,627 $ 4,122 Deferred (1,020) 1,586 1,650 $ 454 $ 4,213 $ 5,772 Year ended December 31, 2014 2015 2016 Domestic (Israel) $ (443) $ 2,684 $ 2,824 Foreign 897 1,529 2,948 $ 454 $ 4,213 $ 5,772 i. Uncertain tax positions: A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits is as follows: December 31, 2015 2016 Balance at the beginning of the year $ 705 $ 1,365 Increase in tax positions 570 688 Decrease in tax positions (64) (293) Acquisition of subsidiary (*) 154 227 Balance at the end of the year $ 1,365 $ 1,987 (*) The amount initially consolidated as part of the acquisition of subsidiary in 2015 was net of Withholding taxes assets of $ 635 The entire balance of unrecognized tax benefits, if recognized, would reduce the Company's annual effective tax rate. As of December 31, 2015 and 2016, accrued interest related to uncertain tax positions amounted to $ 422 490 Tax assessments filed by Part of the Company's Israeli subsidiaries through the year ended December 31, 2011 are considered to be final. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
EQUITY | NOTE 12: EQUITY a. The common shares of the Company are traded on the NASDAQ and on the Tel-Aviv Stock Exchange. Common shares confer upon their holders voting rights, the right to receive cash dividends and the right to share in excess assets upon liquidation of the Company. b. Stock option plans: In 2011, the Company's board of directors approved its 2011 Share Incentive Plan (the “2011 Plan”) pursuant to which the Company's employees, directors, officers, consultants, advisors, suppliers, business partner, customer and any other person or entity whose services are considered valuable are eligible to receive awards of share options, restricted shares, restricted share units and other share-based awards. Options granted under the 2011 Plan may be exercised for a period of up to six years from the date of grant and become exercisable in four equal, annual installments, beginning with the first anniversary of the date of the grant, or pursuant to such other schedule as may provide in the option agreement. The total number of Common Shares available under the 2011 Plan was set at 4,000,000. Upon the approval of the 2011 Plan, the board of directors determined that no further awards would be issued under the Company's previously existing share incentive plans. In February 2016, our Board of Directors approved the reservation of an additional 4,000,000 Common Shares for issuance under the 2011 Plan. As of December 31, 2016, 3,900,284 common shares of the Company were available for future grant under the 2011 Plan. Any options granted under the 2011 Plan which are forfeited, cancelled, terminated or expired, will become available for future grant under the 2011 Plan. A summary of the stock option activities in 2016 is as follows: Year ended December 31, 2016 Amount of Weighted average exercise Weighted average Aggregate Outstanding at January 1, 2016 2,175,488 5.36 3.49 $ 9,274 Granted 310,000 11.63 Exercised (276,170 ) 3.52 Expired and forfeited (71,535 ) 6.17 Outstanding at December 31, 2016 2,137,783 6.91 3.43 15,171 Vested and expected to vest 2,085,779 6.85 3.41 14,927 Exercisable at December 31, 2016 1,172,950 4.84 2.56 $ 10,646 In 2014, 2015 and 2016, the Company granted 340,000, 673,408 and 310,000 stock options to employees and directors, respectively. The weighted average grant date fair values of the options granted during the years ended December 31, 2014, 2015 and 2016 were $ 3.19, $ 3.79 and $ 4.30, respectively. All outstanding options are in the money as of December 31, 2016. The total intrinsic value of options exercised during the years ended December 31, 2014, 2015 and 2016 was $7,446, $10,294 and $2,304, respectively. The options outstanding under the Company's stock option plans as of December 31, 2016 have been separated into ranges of exercise price as follows: Weighted Options Weighted Options Average outstanding Average Weighted Exercisable Exercise as of remaining average as of price of Ranges of December 31, contractual exercise December 31, Options exercise price 2016 Term price 2016 Exercisable (Years) $ $ 1.28-1.88 64,590 2.87 1.44 64,590 1.44 2.06-2.50 273,972 1.69 2.40 273,972 2.40 3.25-3.57 288,221 1.53 3.37 288,221 3.37 4.52 74,000 2.40 4.52 43,000 4.52 5.05-5.33 67,500 2.60 5.08 48,750 5.07 6.07-6.81 230,000 3.15 6.48 174,167 6.38 7.21-7.48 209,500 3.21 7.44 90,250 7.42 8.22-9.73 500,000 4.63 8.80 140,000 8.65 10.58-11.21 280,000 4.78 10.76 50,000 10.58 12.43-13.02 150,000 5.69 12.73 - - 2,137,783 3.43 6.91 1,172,950 4.84 The total equity-based compensation expense related to all of the Company's equity-based awards, recognized for the years ended December 31, 2014, 2015 and 2016, was $1,067, $1,349 and $1,955, respectively. c. As of December 31, 2016, there was $3,288 of total unrecognized compensation cost related to non-vested options, which is expected to be recognized over a period of up to four years. d. During 2016, 29,500 of the 88,500 restricted shares of Sapiens Decision, the Company's majority-owned subsidiary that were granted to one of the former shareholders of KPI in 2014 (as described in note 1(d)(3)) vested, thereby reducing the Company's percentage ownership of Sapiens Decision from 95.7% to 94.25%. During 2016, Sapiens Decision granted 10,000 options to certain of its employees to purchase shares of Sapiens Decision. e. Dividend: On April 7, 2016, the Company's extraordinary general meeting of shareholders approved the distribution of a cash dividend of $0.20 per common share for a total amount of $9,786 that was paid during June 2016. On April 22, 2015, the Company's extraordinary general meeting of shareholders approved the distribution of a cash dividend of $0.15 per common share for a total amount of $7,186 that was paid during June and July 2015. |
RELATED PARTIES TRANSACTIONS
RELATED PARTIES TRANSACTIONS | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES TRANSACTIONS | NOTE 13: RELATED PARTIES TRANSACTIONS Agreements with controlling shareholder and its affiliates: The Company has in effect services agreements with certain companies that are affiliated with Formula Systems (1985) Ltd. (“Formula”), Sapiens' parent company (most recently since December 23, 2014 and thereafter), pursuant to which the Company has received services amounting to approximately $ 1,100 2,600 6,100 200 1,100 1,000 131 On August 18, 2015, Sapiens completed the acquisition from Asseco Poland S.A. (“Asseco”) of all issued and outstanding shares of Insseco. Asseco is the ultimate parent company of Sapiens, through its holdings in Formula. Please see note 1(d)(2) above for further information concerning this acquisition. Under the share purchase agreement for that acquisition, Asseco committed to assign all customer contracts to Insseco that relate to the intellectual property that the Company acquired as part of the acquisition. In the event that Asseco cannot obtain the consent of any customer to the assignment of its contract to Insseco, Asseco will hold that customer's contract in trust for the benefit of Insseco. Under that arrangement, in 2016, Insseco invoiced Asseco in a back-to-back manner for all invoices issued by Asseco on Insseco's behalf to customers under those contracts that were not yet assigned by Asseco to Insseco. During the years ended December 31, 2014, 2015 and 2016, Asseco provided back office and professional services and fixed assets to Insseco in an amount totaling approximately $ 200 1,700 1,900 As of December 31, 2015 and 2016, the Company had trade payables balances due to its related parties in amount of approximately $ 2,700 1,300 3,200 1,400 |
BASIC AND DILUTED NET EARNINGS
BASIC AND DILUTED NET EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
BASIC AND DILUTED NET EARNINGS PER SHARE | NOTE 14: BASIC AND DILUTED NET EARNINGS PER SHARE Year ended December 31, 2014 2015 2016 Numerator: Net income attributed to Sapiens shareholders $ 14,463 $ 20,016 $ 19,336 Adjustment to redeemable non-controlling interest - 224 443 Net income used for earnings per share $ 14,463 $ 20,240 $ 19,779 Denominator (thousands): Denominator for basic earnings per share - weighted average number of common shares, net of treasury stock 47,210 48,121 48,947 Stock options and warrants 1,427 1,206 833 Denominator for diluted net earnings per share - adjusted weighted average number of shares 48,637 49,327 49,780 The weighted average number of shares related to outstanding anti-dilutive options and warrants excluded from the calculations of diluted net earnings per share was 599,287 582,570 250,809 |
GEOGRAPHIC INFORMATION
GEOGRAPHIC INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
GEOGRAPHIC INFORMATION | NOTE 15: GEOGRAPHIC INFORMATION a. The Company operates in a single reportable segment as a provider of software solutions. See Note 1 for a brief description of the Company's business. The data below is presented in accordance with ASC 280, "Segment Reporting". b. Geographic information: The following table sets forth revenues by country based on the billing address of the customer. Other than as shown below, no other country accounted for more than 10% of the Company's revenues during the years ended December 31, 2014, 2015 and 2016. Year ended December 31, 2014 2015 2016 1. Revenues: North America* $ 49,585 $ 61,332 $ 74,455 United Kingdom 34,961 42,580 46,892 Rest of Europe 28,351 32,897 35,535 Israel 28,821 28,315 29,085 Asia Pacific 15,732 20,512 30,223 $ 157,450 $ 185,636 $ 216,190 * Revenue amounts for North America that are shown in the above table consist primarily of revenues from the United States, except for approximately $558, $471 and $854 of revenues derived from Canada in the years ended December 31, 2014, 2015 and 2016, respectively. December 31, 2015 2016 2. Property and equipment: Israel $ 4,224 $ 5,987 North America 147 2,136 Others 1,304 1,684 $ 5,675 $ 9,807 c. Major customer data: The following table sets forth revenues from major customers during the years ended December 31, 2014, 2015 and 2016. Year ended December 31, 2014 2015 2016 Customer A 11 % 12 % 14 % |
SELECTED STATEMENTS OF OPERATIO
SELECTED STATEMENTS OF OPERATIONS DATA | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |
SELECTED STATEMENTS OF OPERATIONS DATA | NOTE 16: SELECTED STATEMENTS OF OPERATIONS DATA Research and development expenses: Year ended December 31, 2014 2015 2016 Total costs $ 17,446 $ 16,267 $ 22,033 Less - capitalized software development costs (6,094) (6,032) (5,545) Research and development expenses, net $ 11,352 $ 10,235 $ 16,488 Financial income, net: Financial income: Interest $ 356 $ 657 $ 784 Derivatives gains - 230 849 Foreign currency translation 883 556 191 1,239 1,443 1,824 Financial expenses: Derivatives losses 397 - - Foreign currency translation 586 981 735 Bank charges and other 132 299 556 (1,115) (1,280) (1,291) Financial income, net $ 124 $ 163 $ 533 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 17: SUBSEQUENT EVENTS a. Share Purchase Agreement for Acquisition of StoneRiver On February 14, 2017, the Company entered into a share purchase agreement with StoneRiver Group L.P. (or the "Seller") and StoneRiver, Inc. (or "StoneRiver"), for the acquisition of all of the issued and outstanding share capital of StoneRiver. The Company consummated the acquisition in the first quarter in 2017. StoneRiver is a Denver, Colorado- based provider of technology solutions and services to the insurance industry. The acquisition consideration is approximately $ 100 Immediately prior to closing, the Company purchased a representations and warranties insurance policy covering certain indemnifiable damages under the agreement (which is referred to as the "Insurance"). The Insurance provides for coverage of $ 12,500 500 2,000 b. HSBC Term Loan Credit Agreement On February 28, 2017, the Company (via our wholly-owned subsidiary, Sapiens Americas Corporation, or the Borrower) entered into a secured credit agreement, or the Credit Agreement, with HSBC Bank USA, National Association, (or the "Lender") as financing for, the acquisition of StoneRiver. Pursuant to the Credit Agreement, Company borrowed $ 40 The repayment of the Bank Loan is secured by first priority liens over: (i) substantially all assets of the Borrower and its US subsidiaries; and (ii) the shares of the Borrower held by Sapiens International Corporation B.V. Certain affiliated entities of the Borrower have guaranteed the repayment of the Bank Loan. The Credit Agreement contains customary representations and warranties, affirmative covenants and negative covenants, which include, without limitation, restrictions on indebtedness, liens, investments, and certain dispositions with respect to the property secured by the lien. The Credit Agreement also contains customary events of default that entitle the Lender to cause any or all of the Company's indebtedness to become immediately due and payable and to foreclose on the lien, and includes customary grace periods before certain events are deemed events of default. c. Dispute with Customer Subsequent to the balance sheet date, the Company received a letter from one of its significant customers, in which the customer alleged that the Company has materially breached a software development project agreement between them. The Company informed the customer that it has not materially breached any of its obligations under the agreement and that the customer itself has materially breached the agreement.Work on the project has been halted due to the dispute. The Company believes that this does not have an impact on its financial statements for the year ended December 31, 2016. |
SIGNIFICANT ACCOUNTING POLICI25
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
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 United States dollars | b. Financial statements in United States dollars: The currency of the primary economic environment in which the operations of Sapiens and certain subsidiaries are conducted is the U.S. dollar ("dollar"); thus, the dollar is the functional currency of Sapiens and certain subsidiaries. Sapiens and certain subsidiaries' transactions and balances denominated in dollars are presented at their original amounts. Non-dollar transactions and balances have been remeasured to dollars in accordance with ASC 830, "Foreign Currency Matters". All transaction gains and losses from remeasurement of monetary balance sheet items denominated in non-dollar currencies are reflected in the statements of income as financial income or expenses, as appropriate. For those subsidiaries, whose functional currency has been determined to be their local currency, assets and liabilities are translated at year-end exchange rates and statement of income items are translated at average exchange rates prevailing during the year. Such translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) in equity. |
Principles of consolidation | c. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. Non-controlling interests of subsidiaries represent the non-controlling shareholders' share of the total comprehensive income (loss) of the subsidiaries and fair value of the net assets upon the acquisition of the subsidiaries. The non-controlling interests are presented in equity separately from the equity attributable to the equity holders of the Company. Redeemable non-controlling interests are classified as mezzanine equity, separate from permanent equity, on the consolidated balance sheets and measured at each reporting period at the higher of their redemption amount or the non-controlling interest book value, in accordance with the requirements of Accounting Standards Codification (“ASC”) 810 “Consolidation” and ASC 480-10-S99-3A, “Distinguishing Liabilities from Equity”. |
Cash equivalents | d. Cash equivalents: Cash equivalents are short-term highly liquid investments that are readily convertible to cash, with original maturities of three months or less at acquisition. |
Restricted cash | e. Restricted cash: The Company maintains certain cash amounts restricted as to withdrawal or use. As of December 31, 2015, the Company maintained a restricted cash balance of $ 1,370 |
Marketable securities | f. Marketable securities: The Company accounts for all its investments in debt securities, in accordance with ASC 320, “Investments - Debt and Equity Securities”. The Company classifies all debt securities as “available-for-sale”. All of the Company’s investments in available-for-sale securities are reported at fair value. Unrealized gains and losses are comprised of the difference between fair value and the amortized cost of such securities and are recognized, net of tax, in accumulated other comprehensive income (loss). The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization together with interest on securities is included in “financial income, net”. The Company recognizes an impairment charge when a decline in the fair value of its investments in debt securities below the cost basis of such securities is judged to be other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the 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. Securities that are deemed other-than-temporarily impaired, the amount of impairment is recognized in “net gain on sale of marketable securities previously impaired” in the statements of income and is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income. During 2014, 2015 and 2016, the Company did not recognize an impairment charge as the decline in fair value of its investment in marketable securities is not judged to be other-than-temporary. |
Property and equipment, net | g. Property and equipment, net: % Computers and peripheral equipment 33 Office furniture and equipment 6 - 20 Buildings 2.5 Leasehold improvements are amortized using the straight-line method over the term of the lease (including option terms that are deemed to be reasonably assured) or the estimated useful life of the improvements, whichever is shorter. |
Research and development costs | h. Research and development costs: Research and development costs incurred in the process of software production before establishment of technological feasibility are charged to expenses as incurred. Costs incurred to develop software to be sold are capitalized after technological feasibility is established in accordance with ASC 985-20, “Software - Costs of Software to be Sold, Leased, or Marketed”. Based on the Company’s product development process, technological feasibility is established upon completion of a detailed program design. Costs incurred by the Company between completion of the detailed program design and the point at which the product is ready for general release, have been capitalized. Capitalized software development costs are amortized by the straight-line method over the estimated useful life of the software product (between 5 7 |
Other intangible assets, net | i. Other intangible assets, net: % Technology 13 - 25 Customer relationships 10 - 17 Patent 10 |
Impairment of long-lived assets | j. Impairment of long-lived assets: The Company's long-lived assets and identifiable intangibles that are subject to amortization are reviewed for impairment in accordance with ASC 360 "Property, Plant, and Equipment", 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. During 2014, 2015 and 2016, no impairment losses have been identified. |
Goodwill | k. Goodwill: Goodwill represents the excess of the purchase price in a business combination over the fair value of the net tangible and intangible assets acquired. Under ASC 350,"Intangibles- Goodwill and Other" ("ASC 350"), goodwill is subject to an annual impairment test or more frequently if impairment indicators are present. Goodwill impairment is deemed to exist if the net book value of a reporting unit exceeds its estimated fair value. The Company operates in four reporting units: Emerge, L&P, Decision and P&C. The Company applied the provisions of ASC 350 for the Company's annual impairment test. Under the provisions, an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. The Company performed a qualitative assessment during the fourth quarter of each of 2014, 2015 and 2016 and concluded that the qualitative assessment did not result in a more likely than not indication of impairment, and therefore no further impairment testing was required. |
Revenue recognition | l. Revenue recognition: The Company generates revenues from sales of software licenses which normally include significant implementation services that are considered essential to the functionality of the software license. In addition, the Company generates revenues from post implementation consulting services and maintenance services. Revenues are recognized when persuasive evidence of an agreement exists, delivery of the product has occurred, the fee is fixed or determinable, and collectability is probable. The Company considers all arrangements with payment terms extending beyond six months from the delivery of the elements not to be fixed or determinable. If the fee is not fixed or determinable, revenue is recognized as payments become due from the customer, provided that all other revenue recognition criteria have been met. In accordance with ASC 985-605, the Company establishes Vendor Specific Objective Evidence ("VSOE") of fair value of maintenance services (PCS). The Company's policy for establishing VSOE of fair value of maintenance services is based on the price charged when the maintenance is renewed separately. Provisions for estimated losses on contracts in progress are made in the period in which they are first determined, in the amount of the estimated loss on the entire contact. Maintenance revenue is recognized ratably over the term of the maintenance agreement. Deferred revenues and customer advances include unearned amounts received under maintenance and support agreements and amounts received from customers, for which revenues have not yet been recognized. In addition, the Company derives a significant portion of its revenues from post implementation consulting services provided on a "Time and Materials" ("T&M") basis which are recognized as services are performed. |
Income taxes | m. Income taxes: The Company accounts for income taxes in accordance with ASC 740, "Income Taxes". This topic prescribes the use of the asset and liability method, whereby deferred tax asset and liability account balances are determined based on the differences between the 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. The Company implements a two-step approach to recognize and measure 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 The Company classifies interest as financial expenses and penalties as selling, marketing, general and administration expenses. |
Concentrations of credit risks | n. Concentrations of credit risks: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, restricted cash, trade receivables, marketable securities and foreign currency derivative contracts. The Company's cash and cash equivalents and restricted cash are invested in bank deposits mainly in dollars, with a significant portion also invested in NIS. Deposits in the U.S. may be in excess of insured limits and are not insured in other jurisdictions. Generally, these banks deposits may be redeemed upon demand and therefore bear minimal risk. The Company's trade receivables are generally derived from sales to large and solid organizations located mainly in North America, Israel, United Kingdom, Rest of Europe and Asia Pacific. The Company performs ongoing credit evaluations of its customers and to date has not experienced any material losses. In certain circumstances, the Company may require prepayment. An allowance for doubtful accounts is determined with respect to those amounts that the Company has determined to be doubtful of collection. Provisions for doubtful accounts are recorded in selling, marketing, general and administrative expenses. The Company's marketable securities include investment in corporate and government debentures. The Company's investment policy limits the amount that the Company may invest in any one type of investment or issuer, thereby reducing credit risk concentrations. The Company entered into forward contracts, and option contracts intended to protect against the increase in value of forecasted non-dollar currency cash flows. The derivative instruments hedge a portion of the Company's non-dollar currency exposure. No off-balance sheet concentrations of credit risk exist. |
Accrued severance pay | o. Accrued severance pay: The Company's liability for severance pay for its Israeli employees is calculated pursuant to Israel's Severance Pay Law based on the most recent monthly salary of the employees multiplied by the number of years of employment as of the balance sheet date. Employees are entitled to one month's salary for each year of employment, or a portion thereof. The Company's liability is fully provided by monthly deposits with insurance policies and severance pay funds and by an accrual. The deposited funds include profits (losses) accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israel's Severance Pay Law or employment agreements. The value of the deposited funds is based on the cash surrendered value of these policies and recorded as an asset in the Company's consolidated balance sheets. In addition, the Company signed a collective agreement with certain employees, according to which the Company's contributions for severance pay shall be in lieu of severance compensation and that upon release of the policy to the employee, no additional payments shall be made by the Company to the employee. Generally, the Company, under its sole discretion, pays to these employees the entire liability, irrespective of the collective agreement described per above. Therefore, the net obligation related to those employees is stated on the balance sheet as accrued severance pay. The Company's agreements with certain employees in Israel are in accordance with Section 14 of the Severance Pay Law, 1963, whereas, the Company's contributions for severance pay shall be in lieu of its severance liability. Upon contribution of the full amount of the employee's monthly salary, and release of the policy to the employee, no additional calculations shall be conducted between the parties regarding the matter o severance pay and no additional payments shall be made by the Company to the employee. Further, the related obligation and amounts deposited on behalf of such obligation are not stated on the balance sheet, as they are legally released from obligation to employees once the deposit amounts have been paid. S everance expense for the years 2014, 2015 and 2016 amounted to $ 3,022 3,518 4,094 |
Basic and diluted net earnings per share | p. Basic and diluted net earnings per share: Basic net earnings per share are computed based on the weighted average number of common shares outstanding during each year. Diluted net earnings per share are computed based on the weighted average number of common shares outstanding during each year plus dilutive potential equivalent common shares considered outstanding during the year, in accordance with ASC 260, "Earnings Per Share |
Stock-based compensation | q. Stock-based compensation: The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation - Stock Compensation" ("ASC 718"), which requires the measurement and recognition of compensation expense based on estimated fair values for all share-based payment awards made. ASC 718 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 statements of income. The Company uses the Binomial Lattice ("Binomial model") option-pricing model to estimate the fair value for any options granted. The Binomial model takes into account variables such as volatility, dividend yield rate, and risk free interest rate and also allows for the use of dynamic assumptions and considers the contractual term of the option, the probability that the option will be exercised prior to the end of its contractual life, and the probability of termination or retirement of the option holder in computing the value of the option. Stock-based compensation cost is measured at the grant date, based on the fair value of the award. The Company recognizes compensation expense for the value of its awards, which have graded vesting, based on the straight-line basis over the requisite service period of the award, net of estimated forfeitures. Estimated forfeitures are based on actual historical pre-vesting forfeitures. Year ended December 31, 2014 2015 2016 Contractual life 6 years 6 years 6 years Expected exercise factor 1.5-2 1.5-2.5 2-2.8 Dividend yield 0% 0% 0% Expected volatility (weighted average) 48.9% 43.0%-44.1% 34.9%-42.4% Risk-free interest rate 1.8%-1.9% 1.6%-1.8% 1.3%-1.7% The risk-free interest rate assumption is based on the yield from U.S. Treasury zero-coupon bonds with an equivalent term as of the Company's employee stock options. Since dividend payment is applied to reduce the exercise price of the option, the effect of the dividend protection is reflected by using an expected dividend assumption of zero. The expected life of options granted is derived from the output of the option valuation model and represents the period of time the options are expected to be outstanding. The expected exercise factor is based on industry acceptable rates since no actual historical behavior by option holders exists. Expected volatility is based on the historical volatility of the Company. |
Fair value of financial instruments | r. Fair value of financial instruments: ASC 820, "Fair Value Measurements and Disclosures" ("ASC 820"), defines fair value as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. 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. As a basis for considering such assumptions, ASC 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 - Valuations based on quoted prices in active markets for identical assets that the Company has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. Level 2 - Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The Company measures its marketable debt securities and foreign currency derivative instruments at fair value. The Company's marketable debts securities are traded in markets that are not considered to be active, but are valued based on quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency and accordingly are categorized as Level 2. Foreign currency derivative contracts are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, and accounts payable approximate fair value due to the short-term maturities of such instruments. |
Derivatives and hedging | s. Derivatives and hedging: The Company enters into option contracts and forward contracts to hedge certain transactions denominated in foreign currencies. The purpose of the Company's foreign currency hedging activities is to protect the Company from risk that the eventual dollar cash flows from international activities will be adversely affected by changes in the exchange rates. The Company's option and forward contracts do not qualify as hedging instruments under ASC 815, "Derivatives and hedging". Changes in the fair value of option strategies are reflected in the consolidated statements of income as financial income or expense. In 2014, 2015 and 2016, the Company entered into option contracts in the notional amounts of $ 33,270 9,250 26,336 7,383 42,770 17,668 As of December 31, 2014, 2015 and 2016, the Company had outstanding options and forward contracts, in the notional amount of $ 25,772 21,876 0 In 2014, 2015 and 2016, the Company recorded income (expenses) of $ (397) 230 |
Treasury shares | t. Treasury shares: Repurchased common shares are held as treasury shares. The Company presents the cost to repurchase treasury stock as a reduction of shareholders’ equity. |
Comprehensive income (loss) | u. Comprehensive income (loss): The Company accounts for comprehensive income (loss) in accordance with ASC 220, "Comprehensive Income". Comprehensive income generally represents all changes in shareholders' equity during the period except those resulting from investments by, or distributions to, shareholders. The components of accumulated other comprehensive loss, in the amount of $ 11,679 11,167 December 31, 2015 2016 Foreign currency translation differences $ 11,492 $ 11,021 Unrealized losses on available-for-sale marketable securities, net of tax 187 146 $ (11,679) $ (11,167) |
Impact of recently issued accounting standards | v. Impact of recently issued accounting standards: In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), which amends the existing accounting standards for revenue recognition. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which delays the effective date of ASU 2014-09 by one year. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. The new revenue recognition standard will be effective in the first quarter of 2018, with the option to adopt it in the first quarter of 2017. The Company currently anticipates adopting the new standard effective January 1, 2018. The new standard also permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective method). The Company preliminarily anticipates adopting the standard using the modified retrospective method. However, the Company is continuing to evaluate the impact of the standard on its consolidated financial statements and related disclosures and the adoption method is subject to change. In February 2016, the FASB issued ASU 2016-02, “Leases” (Topic 842), whereby, lessees will be required to recognize for all leases at the commencement date a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. A modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements must be applied. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Companies may not apply a full retrospective transition approach. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018. Early application is permitted. The Company is evaluating the potential impact of this pronouncement. In March 2016, the FASB issued ASU 2016-09, which provides for improvements to employee share-based payment accounting. ASU 2016-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. ASU 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Company does not expect that this new guidance will have a material impact on the Company’s consolidated financial statements. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing” (“ASU 2016-10”), which clarifies the following two aspects of Topic 606: (a) identifying performance obligations; and (b) the licensing implementation guidance. The amendments do not change the core principle of the guidance in Topic 606. The new guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, which will be our interim period beginning January 1, 2018. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods with that reporting period. We are evaluating the impact of this standard. In November 2016, the FASB issued Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18), which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This guidance will be effective for us in the first quarter of 2018 and early adoption is permitted. The Company is still evaluating the effect that this guidance will have on its consolidated financial statements and related disclosures |
GENERAL (Tables)
GENERAL (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Business Acquisitions by Acquisition, Equity Interest Issued or Issuable | 3. On August 1, 2014, the Company completed the acquisition of all of the outstanding shares of Knowledge Partners International (KPI), a pioneer and recognized leader in decision management consultancy, services and training, in consideration of $ 2,380 Cash $ 2,203 Share consideration * 177 Total purchase price $ 2,380 *) Sapiens issued 57,000 3 |
SIGNIFICANT ACCOUNTING POLICI27
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Property Plant And Equipment Useful Life | Property and equipment are stated at cost, net of accumulated depreciation using the straight-line method over the estimated useful lives of the assets, at the following annual rates: % Computers and peripheral equipment 33 Office furniture and equipment 6 - 20 Buildings 2.5 |
Schedule Of Amortization Rate Of Other Intangible Assets | The weighted average annual rates for other intangible assets are as follows: % Technology 13 - 25 Customer relationships 10 - 17 Patent 10 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | The fair value of each option granted in 2014, 2015 and 2016 using the Binomial model, was estimated on the date of grant with the following assumptions: Year ended December 31, 2014 2015 2016 Contractual life 6 years 6 years 6 years Expected exercise factor 1.5-2 1.5-2.5 2-2.8 Dividend yield 0% 0% 0% Expected volatility (weighted average) 48.9% 43.0%-44.1% 34.9%-42.4% Risk-free interest rate 1.8%-1.9% 1.6%-1.8% 1.3%-1.7% |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss), in the amount of $ (11,679) (11,167) December 31, 2015 2016 Foreign currency translation differences $ (11,492) $ (11,021) Unrealized losses on available-for-sale marketable securities, net of tax (187) (146) $ (11,679) $ (11,167) |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost and Gross Unrealized Holding Gains and Losses of Available-for-Sale Marketable Securities | As of December 31, 2015 and 2016, the fair value, amortized cost and gross unrealized holding gains and losses of available-for-sale marketable securities were as follows: December 31, 2016 Gross Gross Amortized unrealized unrealized Fair cost gains losses value Government debentures fixed interest rate $ 3,167 - $ (3) $ 3,164 Corporate debentures fixed interest rate 32,473 - (189) 32,284 $ 35,640 - $ (192) $ 35,448 December 31, 2015 Gross Gross Amortized unrealized unrealized Fair cost gains losses value Government debentures fixed interest rate $ 5,242 - $ (19) $ 5,223 Corporate debentures fixed interest rate 34,663 - (235) 34,428 $ 39,905 - $ (254) $ 39,651 |
OTHER LONG-TERM ASSETS (Tables)
OTHER LONG-TERM ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets, Noncurrent | December 31, 2015 2016 Deferred tax assets $ 2,779 $ 2,261 Other 1,473 2,362 $ 4,252 $ 4,623 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | December 31, 2015 2016 Cost: Computers and peripheral equipment $ 15,477 $ 18,503 Office furniture, equipment and other 4,228 4,309 Buildings and Leasehold improvements 2,780 6,051 22,485 28,863 Accumulated depreciation: Computers and peripheral equipment 12,712 14,737 Office furniture, equipment and other 2,607 2,682 Leasehold improvements 1,491 1,637 16,810 19,056 Depreciated cost $ 5,675 $ 9,807 |
CAPITALIZED SOFTWARE DEVELOPM31
CAPITALIZED SOFTWARE DEVELOPMENT COSTS, NET (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Research and Development [Abstract] | |
Changes In Capitalized Software Development Costs | The changes in capitalized software development costs during the years ended December 31, 2015 and 2016 were as follows: Year ended December 31, 2015 2016 Balance at the beginning of the year $ 19,243 $ 19,856 Capitalization 6,032 5,545 Amortization (5,439) (4,929) Functional currency translation adjustments 20 283 Balance at the year end $ 19,856 $ 20,755 |
OTHER INTANGIBLE ASSETS, NET (T
OTHER INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Schedule Of Other Intangible Assets | a. Other intangible assets, net, are comprised of the following: weighted average December 31, (years) 2015 2016 Original amounts: Customer relationships 3.92 $ 10,853 $ 11,804 Technology 4.47 6,717 8,080 Patent 7.5 1,230 1,248 18,800 21,132 Accumulated amortization: Customer relationships 6,361 7,756 Technology 4,581 5,475 Patent 174 302 11,116 13,533 Other intangible assets, net $ 7,684 $ 7,599 |
Schedule Of Other Intangible Assets Future Amortization Expense | c. Estimated amortization expense for future periods: For the year ended December 31, 2017 $ 2,294 2018 1,951 2019 1,323 2020 524 2021 and thereafter 1,507 $ 7,599 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2016 are as follows: Year ended December 31, 2015 2016 Balance at the beginning of the year $ 67,698 $ 70,035 Acquisition of subsidiaries 2,588 2,967 Functional currency translation adjustments (251) 595 Balance at year- end $ 70,035 $ 73,597 |
ACCRUED EXPENSES AND OTHER LI34
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Weighted Average Annual Rate Other intangible Assets | December 31, 2015 2016 Government authorities $ 3,419 $ 5,009 Accrued royalties to the IIA (Note 10a) 251 259 Accrued expenses 11,223 8,638 $ 14,893 $ 13,906 |
COMMITMENTS AND CONTINGENT LI35
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | 1. The Company's office space and office equipment are rented under several operating leases. Future minimum lease commitments under non-cancelable operating leases for the years ended December 31, were as follows: 2017 $ 4,050 2018 3,426 2019 2,974 2020 1,085 2021 and thereafter 83 $ 11,618 |
TAXES ON INCOME (Tables)
TAXES ON INCOME (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities | December 31, 2015 2016 Deferred tax assets: Net operating losses carry forward $ 7,275 $ 6,515 Research and development 2,123 1,619 Other 3,188 3,155 Deferred tax assets before valuation allowance 12,586 11,289 Valuation allowance (6,212) (6,589) Deferred tax assets 6,374 4,700 Deferred tax liabilities: Capitalized software development costs (2,804) (3,011) Acquired intangibles (1,472) (1,202) Property and equipment (53) (369) Other (163) (24) Deferred tax liabilities (4,492) (4,606) Deferred tax assets, net $ 1,882 $ 94 December 31, 2015 2016 Long-term deferred tax assets, net 2,779 2,261 Long-term deferred tax liabilities, net (897) (2,167) Deferred tax assets, net $ 1,882 $ 94 |
Schedule of Income before Income Tax, Domestic and Foreign | f. Year ended December 31, 2014 2015 2016 Domestic (Israel) $ 11,281 $ 19,478 $ 13,701 Foreign 3,749 5,035 11,672 $ 15,030 $ 24,513 $ 25,373 |
Schedule of Effective Income Tax Rate Reconciliation | g. A reconciliation between the theoretical tax expense, assuming all income is taxed at the statutory tax rate applicable to income for an Israeli company, and the actual tax expense as reported in the statements of income is as follows: Year ended December 31, 2014 2015 2016 Income before taxes on income, as reported in the statements of income $ 15,030 $ 24,513 $ 25,373 Statutory tax rate in Israel 26.5 % 26.5 % 25 % Theoretical taxes on income $ 3,983 $ 6,496 $ 6,343 Increase (decrease) in taxes resulting from: Effect of different tax rates 362 117 (382) Effect of “Approved, Beneficiary or Preferred Enterprise” status (2,323) (2,406) (1,338) Utilization of carry forward tax losses for which valuation allowance was provided (1,177) (195) - Non-deductible expenses 80 569 584 Recognition of deferred taxes during the year for which valuation allowance was provided in prior years (1,496) - - Losses and temporary differences for which valuation allowance was provided 580 127 377 Others 445 (495) 188 Taxes on income, as reported in the statements of income $ 454 $ 4,213 $ 5,772 |
Schedule of Components of Income Tax Expense (Benefit) | h. Taxes on income are comprised as follows: Year ended December 31, 2014 2015 2016 Current $ 1,474 $ 2,627 $ 4,122 Deferred (1,020) 1,586 1,650 $ 454 $ 4,213 $ 5,772 Year ended December 31, 2014 2015 2016 Domestic (Israel) $ (443) $ 2,684 $ 2,824 Foreign 897 1,529 2,948 $ 454 $ 4,213 $ 5,772 |
Schedule of Unrecognized Tax Benefits Roll Forward | i. Uncertain tax positions: A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits is as follows: December 31, 2015 2016 Balance at the beginning of the year $ 705 $ 1,365 Increase in tax positions 570 688 Decrease in tax positions (64) (293) Acquisition of subsidiary (*) 154 227 Balance at the end of the year $ 1,365 $ 1,987 (*) The amount initially consolidated as part of the acquisition of subsidiary in 2015 was net of Withholding taxes assets of $ 635 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of the stock option activities in 2016 is as follows: Year ended December 31, 2016 Weighted Weighted average average remaining Amount of exercise contractual life Aggregate options price (in years) intrinsic value Outstanding at January 1, 2016 2,175,488 5.36 3.49 $ 9,274 Granted 310,000 11.63 Exercised (276,170) 3.52 Expired and forfeited (71,535) 6.17 Outstanding at December 31, 2016 2,137,783 6.91 3.43 15,171 Vested and expected to vest 2,085,779 6.85 3.41 14,927 Exercisable at December 31, 2016 1,172,950 4.84 2.56 $ 10,646 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | The options outstanding under the Company's stock option plans as of December 31, 2016 have been separated into ranges of exercise price as follows: Weighted Options Weighted Options Average outstanding Average Weighted Exercisable Exercise as of remaining average as of price of Ranges of December 31, contractual exercise December 31, Options exercise price 2016 Term price 2016 Exercisable (Years) $ $ 1.28-1.88 64,590 2.87 1.44 64,590 1.44 2.06-2.50 273,972 1.69 2.40 273,972 2.40 3.25-3.57 288,221 1.53 3.37 288,221 3.37 4.52 74,000 2.40 4.52 43,000 4.52 5.05-5.33 67,500 2.60 5.08 48,750 5.07 6.07-6.81 230,000 3.15 6.48 174,167 6.38 7.21-7.48 209,500 3.21 7.44 90,250 7.42 8.22-9.73 500,000 4.63 8.80 140,000 8.65 10.58-11.21 280,000 4.78 10.76 50,000 10.58 12.43-13.02 150,000 5.69 12.73 - - 2,137,783 3.43 6.91 1,172,950 4.84 |
BASIC AND DILUTED NET EARNING38
BASIC AND DILUTED NET EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Year ended December 31, 2014 2015 2016 Numerator: Net income attributed to Sapiens shareholders $ 14,463 $ 20,016 $ 19,336 Adjustment to redeemable non-controlling interest - 224 443 Net income used for earnings per share $ 14,463 $ 20,240 $ 19,779 Denominator (thousands): Denominator for basic earnings per share - weighted average number of common shares, net of treasury stock 47,210 48,121 48,947 Stock options and warrants 1,427 1,206 833 Denominator for diluted net earnings per share - adjusted weighted average number of shares 48,637 49,327 49,780 |
GEOGRAPHIC INFORMATION (Tables)
GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segments, Geographical Areas [Abstract] | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | The following table sets forth revenues by country based on the billing address of the customer. Other than as shown below, no other country accounted for more than 10% of the Company's revenues during the years ended December 31, 2014, 2015 and 2016. Year ended December 31, 2014 2015 2016 1. Revenues: North America* $ 49,585 $ 61,332 $ 74,455 United Kingdom 34,961 42,580 46,892 Rest of Europe 28,351 32,897 35,535 Israel 28,821 28,315 29,085 Asia Pacific 15,732 20,512 30,223 $ 157,450 $ 185,636 $ 216,190 * Revenue amounts for North America that are shown in the above table consist primarily of revenues from the United States, except for approximately $558, $471 and $854 of revenues derived from Canada in the years ended December 31, 2014, 2015 and 2016, respectively. |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country | December 31, 2015 2016 2. Property and equipment: Israel $ 4,224 $ 5,987 North America 147 2,136 Others 1,304 1,684 $ 5,675 $ 9,807 |
Schedule of Revenue by Major Customers by Reporting Segments | The following table sets forth revenues from major customers during the years ended December 31, 2014, 2015 and 2016. Year ended December 31, 2014 2015 2016 Customer A 11 % 12 % 14 % |
SELECTED STATEMENTS OF OPERAT40
SELECTED STATEMENTS OF OPERATIONS DATA (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |
Schedule Of Selected Statements Of Operations Data | Research and development expenses: Year ended December 31, 2014 2015 2016 Total costs $ 17,446 $ 16,267 $ 22,033 Less - capitalized software development costs (6,094) (6,032) (5,545) Research and development expenses, net $ 11,352 $ 10,235 $ 16,488 |
Schedule Of Net Of Financial Income | Financial income, net: Financial income: Interest $ 356 $ 657 $ 784 Derivatives gains - 230 849 Foreign currency translation 883 556 191 1,239 1,443 1,824 Financial expenses: Derivatives losses 397 - - Foreign currency translation 586 981 735 Bank charges and other 132 299 556 (1,115) (1,280) (1,291) Financial income, net $ 124 $ 163 $ 533 |
GENERAL (Details)
GENERAL (Details) - KPI [Member] $ in Thousands | 1 Months Ended | |
Aug. 01, 2014USD ($) | ||
Business Acquisition [Line Items] | ||
Cash | $ 2,203 | |
Share consideration | 177 | [1] |
Total purchase price | $ 2,380 | |
[1] | Sapiens issued 57,000 shares of its subsidiary, Sapiens Software Solution (Decision) Ltd, reflecting 3% of the subsidiary's outstanding shares. According to the agreement, the sellers will have the right to sell their minority interests to the Company during the period commencing on the date that is 48 months following the acquisition date, and the Company will have a corresponding call option. |
GENERAL (Details Textual)
GENERAL (Details Textual) $ in Thousands, PLN in Millions | May 06, 2015USD ($) | Jun. 07, 2016USD ($) | May 26, 2016USD ($) | Aug. 18, 2015USD ($) | Aug. 18, 2015PLN | Aug. 01, 2014USD ($)shares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($) |
Business Acquisition [Line Items] | |||||||||
Stock Issued During Period, Shares, Acquisitions | shares | 88,500 | ||||||||
Business Acquisition Description For Payments | the seller shall pay Sapiens an amount equal to 35% of the deficiency below such amount. | ||||||||
Revenues, Total | $ 216,190 | $ 185,636 | $ 157,450 | ||||||
Assets | 257,851 | 242,271 | |||||||
Stockholders Equity | 193,595 | 180,942 | |||||||
Net Income (Loss) Attributable To Parent | 19,336 | 20,016 | 14,463 | ||||||
Insseco [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Payments to Acquire Businesses, Gross | PLN | PLN 34.3 | ||||||||
Business Combination, Contingent Consideration, Liability | 1,000 | ||||||||
Revenues, Total | 10,516 | ||||||||
Pretax Income | 1,324 | ||||||||
Assets | 4,387 | ||||||||
Liabilities, Total | 2,290 | ||||||||
Stockholders Equity | $ 2,097 | ||||||||
Net Income (Loss) Attributable To Parent | $ 1,165 | ||||||||
Insseco [Member] | July 1 2015 Through June 30 2020 [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Revenues, Total | $ 23,800 | ||||||||
Insseco [Member] | July 1 2015 Through June 30 2018 [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Revenues, Total | $ 22,200 | ||||||||
Minimum [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business Acquisition Percentage for Additional Amounts Ranging | 3.00% | 3.00% | |||||||
Maximum [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business Acquisition Percentage for Additional Amounts Ranging | 15.00% | 15.00% | |||||||
KPI [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Subsidiary Equity Percentage | 3.00% | ||||||||
Call option Period | 48 months | ||||||||
Restricted Shares Vesting period | 3 years | ||||||||
Stock Issued During Period, Shares, Acquisitions | shares | 88,500 | ||||||||
Noncash or Part Noncash Acquisition, Noncash Financial or Equity Instrument Consideration, Shares Issued | shares | 57,000 | ||||||||
Total assets acquired, net | $ 2,380 | ||||||||
Business Combination, Consideration Transferred, Total | 2,380 | ||||||||
Payments to Acquire Businesses, Gross | $ 2,203 | ||||||||
Ibexi [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business Combination, Consideration Transferred, Total | $ 4,764 | ||||||||
Business Combination, Contingent Consideration, Liability | 1,680 | ||||||||
Business Combination Contingent Payment | 1,900 | ||||||||
Polish Zloty [Member] | Insseco [Member] | July 1 2015 Through June 30 2020 [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Revenues, Total | PLN | PLN 90 | ||||||||
Polish Zloty [Member] | Insseco [Member] | July 1 2015 Through June 30 2018 [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Revenues, Total | PLN | PLN 84 | ||||||||
Maximum Processing Inc [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Payments to Acquire Businesses, Gross | $ 4,278 | ||||||||
Escrow Deposit Related to Business Acquisition | $ 1,490 | ||||||||
Maximum Earn Out Future Obligation | 3,126 | ||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||||||||
4 Sight business intelligence Inc. [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Payments to Acquire Businesses, Gross | $ 330 | ||||||||
Maximum Earn Out Future Obligation | $ 2,600 | ||||||||
Ibexi Solution Private Limited [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Payments to Acquire Businesses, Gross | 9,100 | ||||||||
Business Combination Contingent Payment | $ 949 | ||||||||
4 Sight business intelligence Inc.’s 4Sight | |||||||||
Business Acquisition [Line Items] | |||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% |
SIGNIFICANT ACCOUNTING POLICI43
SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Computers and Peripheral Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 33.00% |
Office Furniture and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 6.00% |
Office Furniture and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 20.00% |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 2.50% |
SIGNIFICANT ACCOUNTING POLICI44
SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 12 Months Ended |
Dec. 31, 2016 | |
Technology [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Annual Rate Other intangible Assets | 13.00% |
Technology [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Annual Rate Other intangible Assets | 25.00% |
Customer relationships [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Annual Rate Other intangible Assets | 10.00% |
Customer relationships [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Annual Rate Other intangible Assets | 17.00% |
Patent [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Annual Rate Other intangible Assets | 10.00% |
SIGNIFICANT ACCOUNTING POLICI45
SIGNIFICANT ACCOUNTING POLICIES (Details 2) - Stock Option [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contractual life | 6 years | 6 years | 6 years |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility (weighted average) | 48.90% | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected exercise factor | $ 2.8 | $ 2.5 | $ 2 |
Expected volatility (weighted average) | 42.40% | 44.10% | |
Risk-free interest rate | 1.70% | 1.80% | 1.90% |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected exercise factor | $ 2 | $ 1.5 | $ 1.5 |
Expected volatility (weighted average) | 34.90% | 43.00% | |
Risk-free interest rate | 1.30% | 1.60% | 1.80% |
SIGNIFICANT ACCOUNTING POLICI46
SIGNIFICANT ACCOUNTING POLICIES (Details 3) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Foreign currency translation differences | $ 11,021 | $ 11,492 |
Unrealized losses on available-for-sale marketable securities, net of tax | 146 | 187 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (11,167) | $ (11,679) |
SIGNIFICANT ACCOUNTING POLICI47
SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Line Items] | |||
Security Deposit | $ 1,370 | ||
Severance Costs | $ 4,094 | 3,518 | $ 3,022 |
Derivative, Gain (Loss) on Derivative, Net, Total | $ 849 | 230 | (397) |
Effective Income Tax Rate Reconciliation, Percent, Total | 50.00% | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (11,167) | (11,679) | |
Options Strategies Contracts [Member] | |||
Accounting Policies [Line Items] | |||
Derivative, Notional Amount | 26,336 | 9,250 | 33,270 |
Forward Contracts [Member] | |||
Accounting Policies [Line Items] | |||
Derivative, Notional Amount | 17,668 | 42,770 | 7,383 |
Options and Forward Contracts [Member] | |||
Accounting Policies [Line Items] | |||
Derivative, Notional Amount | $ 0 | $ 21,876 | $ 25,772 |
Software Development [Member] | Maximum [Member] | |||
Accounting Policies [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 7 years | ||
Software Development [Member] | Minimum [Member] | |||
Accounting Policies [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 5 years |
MARKETABLE SECURITIES (Details)
MARKETABLE SECURITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 35,640 | $ 39,905 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (192) | (254) |
Fair value | 35,448 | 39,651 |
Government debentures - fixed interest rate | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 3,167 | 5,242 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (3) | (19) |
Fair value | 3,164 | 5,223 |
Corporate debentures - fixed interest rate | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 32,473 | 34,663 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (189) | (235) |
Fair value | $ 32,284 | $ 34,428 |
MARKETABLE SECURITIES (Details
MARKETABLE SECURITIES (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities maturity year | 3 years | |
Interest receivable | $ 226 | $ 334 |
Other Marketable Securities, Current | $ 18,220 |
OTHER LONG-TERM ASSETS (Details
OTHER LONG-TERM ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Deferred tax assets | $ 2,261 | $ 2,779 |
Other | 2,362 | 1,473 |
Other Assets, Noncurrent | $ 4,623 | $ 4,252 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 28,863 | $ 22,485 |
Accumulated depreciation | 19,056 | 16,810 |
Depreciated cost | 9,807 | 5,675 |
Computers and Peripheral Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 18,503 | 15,477 |
Accumulated depreciation | 14,737 | 12,712 |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 4,309 | 4,228 |
Accumulated depreciation | 2,682 | 2,607 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation | 1,637 | 1,491 |
Buildings and Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 6,051 | $ 2,780 |
PROPERTY AND EQUIPMENT, NET (52
PROPERTY AND EQUIPMENT, NET (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 2,835 | $ 2,080 | $ 1,582 |
CAPITALIZED SOFTWARE DEVELOPM53
CAPITALIZED SOFTWARE DEVELOPMENT COSTS, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Capitalized Computer Software, Net [Roll Forward] | |||
Balance at the beginning of the year | $ 19,856 | $ 19,243 | |
Capitalization | 5,545 | 6,032 | |
Amortization | (4,929) | (5,439) | $ (4,926) |
Functional currency translation adjustments | 283 | 20 | |
Balance at the year end | $ 20,755 | $ 19,856 | $ 19,243 |
CAPITALIZED SOFTWARE DEVELOPM54
CAPITALIZED SOFTWARE DEVELOPMENT COSTS, NET (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Capitalized Computer Software, Net [Roll Forward] | |||
Capitalized Computer Software, Amortization | $ 4,929 | $ 5,439 | $ 4,926 |
OTHER INTANGIBLE ASSETS, NET (D
OTHER INTANGIBLE ASSETS, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets Gross | $ 21,132 | $ 18,800 |
Intangible Assets Accumulated Amortization | 13,533 | 11,116 |
Other intangible assets, net | 7,599 | 7,684 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets Gross | 11,804 | 10,853 |
Intangible Assets Accumulated Amortization | $ 7,756 | 6,361 |
Finite-Lived Intangible Asset, Useful Life | 3 years 11 months 1 day | |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets Gross | $ 8,080 | 6,717 |
Intangible Assets Accumulated Amortization | $ 5,475 | 4,581 |
Finite-Lived Intangible Asset, Useful Life | 4 years 5 months 19 days | |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets Gross | $ 1,248 | 1,230 |
Intangible Assets Accumulated Amortization | $ 302 | $ 174 |
Finite-Lived Intangible Asset, Useful Life | 7 years 6 months |
OTHER INTANGIBLE ASSETS, NET 56
OTHER INTANGIBLE ASSETS, NET (Details 1) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,017 | $ 2,294 | |
2,018 | 1,951 | |
2,019 | 1,323 | |
2,020 | 524 | |
2021 and thereafter | 1,507 | |
Other Intangible Assets Amortization Expense | $ 7,599 | $ 7,684 |
OTHER INTANGIBLE ASSETS, NET 57
OTHER INTANGIBLE ASSETS, NET (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 2,257 | $ 2,106 | $ 2,209 |
GOODWILL (Details)
GOODWILL (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | ||
Balance at the beginning of the year | $ 70,035 | $ 67,698 |
Acquisition of subsidiaries | 2,967 | 2,588 |
Functional currency translation adjustments | 595 | (251) |
Balance at year- end | $ 73,597 | $ 70,035 |
ACCRUED EXPENSES AND OTHER LI59
ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Government authorities | $ 5,009 | $ 3,419 |
Accrued royalties to the IIA (Note 10a) | 259 | 251 |
Accrued expenses | 8,638 | 11,223 |
Accrued expenses and other liabilities | $ 13,906 | $ 14,893 |
COMMITMENTS AND CONTINGENT LI60
COMMITMENTS AND CONTINGENT LIABILITIES (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,017 | $ 4,050 |
2,018 | 3,426 |
2,019 | 2,974 |
2,020 | 1,085 |
2021 and thereafter | 83 |
Operating Leases, Future Minimum Payments Due | $ 11,618 |
COMMITMENTS AND CONTINGENT LI61
COMMITMENTS AND CONTINGENT LIABILITIES (Details Textual) $ in Thousands, € in Millions | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Commitments And Contingencies [Line Items] | ||||
Percentage Of Total Net Consolidated License and Maintenance Revenue | 3.50% | 3.50% | ||
Percentage Of Net Consolidated Consulting Services Revenue | 0.35% | 0.35% | ||
Royalty Expense | $ 503 | $ 505 | $ 618 | |
Contingent Liability Royalties | 7,119 | |||
Operating Leases Minimum Payments Upon Cancellation Of Lease Agreements | $ 168 | |||
Loss Contingency, Damages Sought, Value | € | € 21.5 | |||
Maximum [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Percentage Of Royalties To Be Paid Against Grants Received | 150.00% | 150.00% | ||
Minimum [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Percentage Of Royalties To Be Paid Against Grants Received | 100.00% | 100.00% | ||
Lease Commitment [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Operating Leases, Rent Expense | $ 6,284 | $ 4,418 | $ 3,782 | |
Property Lease Guarantee [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Property Lease Guarantee Provided | 827 | |||
Property Leases Guarantee Renewal | 850 | |||
Performance Guarantee [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Amount Of Bank Guarantee Provided | $ 426 |
TAXES ON INCOME (Details)
TAXES ON INCOME (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Net operating losses carry forward | $ 6,515 | $ 7,275 |
Research and development | 1,619 | 2,123 |
Other | 3,155 | 3,188 |
Deferred tax assets before valuation allowance | 11,289 | 12,586 |
Valuation allowance | (6,589) | (6,212) |
Deferred tax assets | 4,700 | 6,374 |
Deferred tax liabilities: | ||
Capitalized software development costs | (3,011) | (2,804) |
Acquired intangibles | (1,202) | (1,472) |
Property and equipment | (369) | (53) |
Other | (24) | (163) |
Deferred tax liabilities | (4,606) | (4,492) |
Deferred tax assets, net | 94 | 1,882 |
Long-term deferred tax assets, net | 2,261 | 2,779 |
Long-term deferred tax liabilities, net | (2,167) | (897) |
Deferred tax assets, net | $ 94 | $ 1,882 |
TAXES ON INCOME (Details 1)
TAXES ON INCOME (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Line Items] | |||
Domestic (Israel) | $ 13,701 | $ 19,478 | $ 11,281 |
Foreign | 11,672 | 5,035 | 3,749 |
Income before taxes on income | $ 25,373 | $ 24,513 | $ 15,030 |
TAXES ON INCOME (Details 2)
TAXES ON INCOME (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Line Items] | |||
Income before taxes on income, as reported in the statements of income | $ 25,373 | $ 24,513 | $ 15,030 |
Statutory tax rate in Israel | 25.00% | 26.50% | 26.50% |
Theoretical taxes on income | $ 6,343 | $ 6,496 | $ 3,983 |
Increase (decrease) in taxes resulting from: | |||
Effect of different tax rates | (382) | 117 | 362 |
Effect of “Approved, Beneficiary or Preferred Enterprise” status | (1,338) | (2,406) | (2,323) |
Utilization of carry forward tax losses for which valuation allowance was provided | 0 | (195) | (1,177) |
Non-deductible expenses | 584 | 569 | 80 |
Recognition of deferred taxes during the year for which valuation allowance was provided in prior years | 0 | 0 | (1,496) |
Losses and temporary differences for which valuation allowance was provided | 377 | 127 | 580 |
Others | 188 | (495) | 445 |
Taxes on income, as reported in the statements of income | $ 5,772 | $ 4,213 | $ 454 |
TAXES ON INCOME (Details 3)
TAXES ON INCOME (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Line Items] | |||
Current | $ 4,122 | $ 2,627 | $ 1,474 |
Deferred | 1,650 | 1,586 | (1,020) |
Taxes on income, as reported in the statements of income | $ 5,772 | $ 4,213 | $ 454 |
TAXES ON INCOME (Details 4)
TAXES ON INCOME (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Contingency [Line Items] | |||
Domestic (Israel) | $ 2,824 | $ 2,684 | $ (443) |
Foreign | 2,948 | 1,529 | 897 |
Taxes on income, as reported in the statements of income | $ 5,772 | $ 4,213 | $ 454 |
TAXES ON INCOME (Details 5)
TAXES ON INCOME (Details 5) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Income Tax Contingency [Line Items] | |||
Balance at the beginning of the year | $ 1,365 | $ 705 | |
Increase in tax positions | 688 | 570 | |
Decrease in tax positions | (293) | (64) | |
Acquisition of subsidiary | [1] | 227 | 154 |
Balance at the end of the year | $ 1,987 | $ 1,365 | |
[1] | The amount initially consolidated as part of the acquisition of subsidiary in 2015 was net of Witholding taxes assets of $635. |
TAXES ON INCOME (Details Textua
TAXES ON INCOME (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2018 | Jan. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Line Items] | |||||
Corporate Tax Rate | 25.00% | 26.50% | 26.50% | ||
Operating Loss Carryforwards | $ 24,177 | ||||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 490 | $ 422 | |||
Undistributed Earnings of Foreign Subsidiaries | 23,495 | ||||
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | $ 1,665 | ||||
Reduced Corporate Tax Rate | 25.00% | ||||
Tax Deducted at Source Assets | $ 635 | ||||
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate | 25.00% | 26.50% | 26.50% | ||
Intellectual Property [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 12.00% | ||||
Legislative Amendments [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | 20.00% | ||||
Legislative Amendments [Member] | Scenario, Forecast [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Corporate Tax Rate | 23.00% | 24.00% | |||
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate | 23.00% | 24.00% | |||
Maximum [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Corporate Tax Rate | 25.00% | ||||
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate | 25.00% | ||||
Minimum [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Corporate Tax Rate | 10.00% | ||||
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate | 10.00% |
EQUITY (Details)
EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding, Amount of options | 2,175,488 | |
Granted, Amount of options | 310,000 | |
Exercised, Amount of options | (276,170) | |
Expired and forfeited, Amount of options | (71,535) | |
Outstanding, Amount of options | 2,137,783 | 2,175,488 |
Vested and expected to vest, Amount of options | 2,085,779 | |
Exercisable, Amount of options | 1,172,950 | |
Outstanding, Weighted average exercise price | $ 5.36 | |
Granted, Weighted average exercise price | 11.63 | |
Exercised, Weighted average exercise price | 3.52 | |
Expired and forfeited, Weighted average exercise price | 6.17 | |
Outstanding , Weighted average exercise price | 6.91 | $ 5.36 |
Vested and expected to vest, Weighted average exercise price | 6.85 | |
Exercisable, Weighted average exercise price | $ 4.84 | |
Outstanding, Weighted average remaining contractual life (in years) | 3 years 5 months 5 days | 3 years 5 months 26 days |
Vested and expected to vest, Weighted average remaining contractual life (in years) | 3 years 4 months 28 days | |
Exercisable, Weighted average remaining contractual life (in years) | 2 years 6 months 22 days | |
Outstanding, Aggregate intrinsic value | $ 9,274 | |
Outstanding, Aggregate intrinsic value | 15,171 | $ 9,274 |
Vested and expected to vest, Aggregate intrinsic value | 14,927 | |
Exercisable, Aggregate intrinsic value | $ 10,646 |
EQUITY (Details 1)
EQUITY (Details 1) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding | 2,137,783 | 2,175,488 |
Weighted Average remaining contractual Term (in years) | 3 years 5 months 5 days | |
Weighted average exercise price | $ 6.91 | |
Options Exercisable | 1,172,950 | |
Weighted Average Exercise price of Options Exercisable | $ 4.84 | |
Ranges of Exercise Price 1.28-1.88 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Ranges of exercise price, minimum | 1.28 | |
Ranges of exercise price, maximum | $ 1.88 | |
Options outstanding | 64,590 | |
Weighted Average remaining contractual Term (in years) | 2 years 10 months 13 days | |
Weighted average exercise price | $ 1.44 | |
Options Exercisable | 64,590 | |
Weighted Average Exercise price of Options Exercisable | $ 1.44 | |
Ranges of Exercise Price 2.06-2.50 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Ranges of exercise price, minimum | 2.06 | |
Ranges of exercise price, maximum | $ 2.50 | |
Options outstanding | 273,972 | |
Weighted Average remaining contractual Term (in years) | 1 year 8 months 8 days | |
Weighted average exercise price | $ 2.40 | |
Options Exercisable | 273,972 | |
Weighted Average Exercise price of Options Exercisable | $ 2.40 | |
Ranges of Exercise Price 3.25-3.57 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Ranges of exercise price, minimum | 3.25 | |
Ranges of exercise price, maximum | $ 3.57 | |
Options outstanding | 288,221 | |
Weighted Average remaining contractual Term (in years) | 1 year 6 months 11 days | |
Weighted average exercise price | $ 3.37 | |
Options Exercisable | 288,221 | |
Weighted Average Exercise price of Options Exercisable | $ 3.37 | |
Ranges of Exercise Price 4.52 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Ranges of exercise price, minimum | $ 4.52 | |
Options outstanding | 74,000 | |
Weighted Average remaining contractual Term (in years) | 2 years 4 months 24 days | |
Weighted average exercise price | $ 4.52 | |
Options Exercisable | 43,000 | |
Weighted Average Exercise price of Options Exercisable | $ 4.52 | |
Ranges of Exercise Price 5.05-5.33 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Ranges of exercise price, minimum | 5.05 | |
Ranges of exercise price, maximum | $ 5.33 | |
Options outstanding | 67,500 | |
Weighted Average remaining contractual Term (in years) | 2 years 7 months 6 days | |
Weighted average exercise price | $ 5.08 | |
Options Exercisable | 48,750 | |
Weighted Average Exercise price of Options Exercisable | $ 5.07 | |
Ranges of Exercise Price 6.07-6.81 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Ranges of exercise price, minimum | 6.07 | |
Ranges of exercise price, maximum | $ 6.81 | |
Options outstanding | 230,000 | |
Weighted Average remaining contractual Term (in years) | 3 years 1 month 24 days | |
Weighted average exercise price | $ 6.48 | |
Options Exercisable | 174,167 | |
Weighted Average Exercise price of Options Exercisable | $ 6.38 | |
Ranges of Exercise Price 7.21-7.48 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Ranges of exercise price, minimum | 7.21 | |
Ranges of exercise price, maximum | $ 7.48 | |
Options outstanding | 209,500 | |
Weighted Average remaining contractual Term (in years) | 3 years 2 months 16 days | |
Weighted average exercise price | $ 7.44 | |
Options Exercisable | 90,250 | |
Weighted Average Exercise price of Options Exercisable | $ 7.42 | |
Ranges of Exercise Price 8.22-9.73 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Ranges of exercise price, minimum | 8.22 | |
Ranges of exercise price, maximum | $ 9.73 | |
Options outstanding | 500,000 | |
Weighted Average remaining contractual Term (in years) | 4 years 7 months 17 days | |
Weighted average exercise price | $ 8.80 | |
Options Exercisable | 140,000 | |
Weighted Average Exercise price of Options Exercisable | $ 8.65 | |
Ranges of Exercise Price 10.58-11.21 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Ranges of exercise price, minimum | 10.58 | |
Ranges of exercise price, maximum | $ 11.21 | |
Options outstanding | 280,000 | |
Weighted Average remaining contractual Term (in years) | 4 years 9 months 11 days | |
Weighted average exercise price | $ 10.76 | |
Options Exercisable | 50,000 | |
Weighted Average Exercise price of Options Exercisable | $ 10.58 | |
Ranges of Exercise Price 12.43-13.02 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Ranges of exercise price, minimum | 12.43 | |
Ranges of exercise price, maximum | $ 13.02 | |
Options outstanding | 150,000 | |
Weighted Average remaining contractual Term (in years) | 5 years 8 months 8 days | |
Weighted average exercise price | $ 12.73 | |
Options Exercisable | 0 | |
Weighted Average Exercise price of Options Exercisable | $ 0 |
EQUITY (Details Textual)
EQUITY (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 2 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Jul. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 29, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options | $ 3,288 | |||||
Share Price | $ 0.20 | $ 0.15 | ||||
Payments Of Dividends | $ 9,786 | $ 7,186 | $ 9,786 | $ 7,186 | $ 0 | |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 29,500 | |||||
Stock Issued During Period, Shares, Acquisitions | 88,500 | |||||
Equity Method Investment, Ownership Percentage | 94.25% | 95.70% | ||||
Share Based Compensation | $ 1,955 | $ 1,349 | $ 1,067 | |||
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Gross | 310,000 | |||||
Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Gross | 10,000 | |||||
Employees and Directors [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 310,000 | 673,408 | 340,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 4.30 | $ 3.79 | $ 3.19 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | $ 2,304 | $ 10,294 | $ 7,446 | |||
2011 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | 6 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 4,000,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 3,900,284 | |||||
2011 Plan [Member] | Director [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 4,000,000 |
RELATED PARTIES TRANSACTIONS (D
RELATED PARTIES TRANSACTIONS (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction Payment | $ 131 | ||
Related Party Transaction, Expenses from Transactions with Related Party | 6,100 | $ 2,600 | $ 1,100 |
Professional Fees | 1,900 | 1,700 | 200 |
Due to Related Parties, Current | 1,300 | 2,700 | |
Due from Related Parties, Current | 1,400 | 3,200 | |
Hardware And Software [Member] | |||
Related Party Transaction, Purchases from Related Party | $ 1,000 | $ 1,100 | $ 200 |
BASIC AND DILUTED NET EARNING73
BASIC AND DILUTED NET EARNINGS PER SHARE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator: | |||
Net income attributed to Sapiens shareholders | $ 19,336 | $ 20,016 | $ 14,463 |
Adjustment to redeemable non-controlling interest | 443 | 224 | 0 |
Net income used for earnings per share | $ 19,779 | $ 20,240 | $ 14,463 |
Denominator (thousands): | |||
Denominator for basic earnings per share - weighted average number of common shares, net of treasury stock | 48,947 | 48,121 | 47,210 |
Stock options and warrants | 833 | 1,206 | 1,427 |
Denominator for diluted net earnings per share - adjusted weighted average number of shares | 49,780 | 49,327 | 48,637 |
BASIC AND DILUTED NET EARNING74
BASIC AND DILUTED NET EARNINGS PER SHARE (Details Textual) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 250,809 | 582,570 | 599,287 |
GEOGRAPHIC INFORMATION (Details
GEOGRAPHIC INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 216,190 | $ 185,636 | $ 157,450 | |
Property and equipment | 9,807 | 5,675 | ||
North America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | [1] | 74,455 | 61,332 | 49,585 |
Property and equipment | 2,136 | 147 | ||
United Kingdom [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 46,892 | 42,580 | 34,961 | |
Rest Of Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 35,535 | 32,897 | 28,351 | |
Israel [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 29,085 | 28,315 | 28,821 | |
Property and equipment | 5,987 | 4,224 | ||
Asia Pacific [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 30,223 | 20,512 | $ 15,732 | |
Others [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Property and equipment | $ 1,684 | $ 1,304 | ||
[1] | Revenue amounts for North America that are shown in the above table consist primarily of revenues from the United States, except for approximately $558, $471 and $854 of revenues derived from Canada in the years ended December 31, 2014, 2015 and 2016, respectively. |
GEOGRAPHIC INFORMATION (Detai76
GEOGRAPHIC INFORMATION (Details 1) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Customer A [Member] | |||
Revenue, Major Customer [Line Items] | |||
Entity-Wide Revenue, Major Customer, Percentage | 14.00% | 12.00% | 11.00% |
GEOGRAPHIC INFORMATION (Detai77
GEOGRAPHIC INFORMATION (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Product Information [Line Items] | |||
Revenues, Total | $ 216,190 | $ 185,636 | $ 157,450 |
Total Revenues | |||
Product Information [Line Items] | |||
Entity-Wide Revenue, Major Customer, Percentage | 10.00% | ||
Canada [Member] | |||
Product Information [Line Items] | |||
Revenues, Total | $ 854 | $ 471 | $ 558 |
SELECTED STATEMENTS OF OPERAT78
SELECTED STATEMENTS OF OPERATIONS DATA (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Research and Development Expense [Abstract] | |||
Total costs | $ 22,033 | $ 16,267 | $ 17,446 |
Less - capitalized software development costs | (5,545) | (6,032) | (6,094) |
Research and development expenses, net | $ 16,488 | $ 10,235 | $ 11,352 |
SELECTED STATEMENTS OF OPERAT79
SELECTED STATEMENTS OF OPERATIONS DATA (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financial income: | |||
Interest | $ 784 | $ 657 | $ 356 |
Derivatives gains | 849 | 230 | 0 |
Foreign currency translation | 191 | 556 | 883 |
Financial Income Total | 1,824 | 1,443 | 1,239 |
Financial expenses: | |||
Derivatives losses | 0 | 0 | 397 |
Foreign currency translation | 735 | 981 | 586 |
Bank charges and other | 556 | 299 | 132 |
Financial Expenses Loss | (1,291) | (1,280) | (1,115) |
Financial income, net | $ 533 | $ 163 | $ 124 |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) - Subsequent Event [Member] $ in Thousands | 1 Months Ended |
Feb. 28, 2017USD ($) | |
Secured Credit Agreement [Member] | |
Subsequent Event [Line Items] | |
Long-term Line of Credit | $ 40,000 |
London Interbank Offered Rate (LIBOR) [Member] | Secured Credit Agreement [Member] | |
Subsequent Event [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.85% |
StoneRiver [Member] | |
Subsequent Event [Line Items] | |
Payments to Acquire Businesses, Gross | $ 100,000 |
Business Combination, Consideration Transferred, Other | 12,500 |
Escrow Deposit | 500 |
Escrow Deposit For Period Eighteen Months | $ 2,000 |