magicJack VocalTec (CALL) 10-Q 12 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Oct. 31, 2013
Document And Entity Information [Abstract]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Sep-13	'
Entity Registrant Name	'MAGICJACK VOCALTEC LTD	'
Entity Central Index Key	'0001005699	'
Current Fiscal Year End Date	'--12-31	'
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2013	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	18,552,420

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2013		Dec. 31, 2012
In Thousands, unless otherwise specified
Current assets:	'		'
Cash and cash equivalents	$53,017		$18,959
Marketable securities, at fair value	7,151		19,390
Accounts receivable, net of allowance for doubtful accounts and billing adjustments of $5,820 and $20,498, respectively	4,189		6,004
Inventories	4,565		5,340
Deferred costs	7,217		7,066
Deferred tax assets, current	1,843		1,114
Prepaid income taxes	'		98
Deposits and other current assets	1,378		1,313
Total current assets	79,360		59,284
Property and equipment, net	2,073		2,348
Intangible assets, net	13,116		16,136
Goodwill	32,304		32,304
Deferred tax assets, non-current	9,831		9,831
Deposits and other non-current assets	685		864
Total assets	137,369		120,767
Current liabilities:	'		'
Accounts payable	3,363		3,651
Accrued expenses and other current liabilities	9,482		13,569
Deferred revenue, current portion	65,367		67,038
Total current liabilities	78,212		84,258
Deferred revenue, net of current portion	57,489	[1]	58,165	[1]
Other non-current liabilities	2,674		3,114
Total liabilities	138,375		145,537
Commitments and contingencies (Note 9)	'		'
Capital deficit:	'		'
Ordinary shares, No par value; 100,000 shares authorized; 24,729 and 24,728 shares issued and outstanding, respectively	108,048		108,048
Additional paid-in capital	2,861		1,729
Accumulated other comprehensive loss	-1,905		-1,494
Treasury stock, at cost (6,176 and 6,018 shares at September 30, 2013 and December 31, 2012, respectively)	-95,495		-93,541
Accumulated deficit	-14,515		-39,512
Total capital deficit	-1,006		-24,770
Total liabilities and capital deficit	$137,369		$120,767
[1]	Deferred revenues, non-current, is comprised entirely of deferred revenues originating from the sale of access right renewals.

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, except Share data, unless otherwise specified
CONDENSED CONSOLIDATED BALANCE SHEETS [Abstract]	'	'
Allowance for doubtful accounts and billing adjustments	$5,820	$20,498
Ordinary shares, shares authorized	100,000	100,000
Ordinary shares, no par value	'	'
Ordinary shares, shares issued	24,729	24,728
Ordinary shares, shares outstanding	24,729	24,728
Treasury stock, shares	6,176,117	6,018,246

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract]	'	'	'	'
Net revenues	$35,533	$40,789	$105,312	$116,935
Cost of revenues	12,134	16,746	35,333	47,365
Gross profit	23,399	24,043	69,979	69,570
Operating expenses:	'	'	'	'
Advertising	2,866	4,892	8,437	19,336
General and administrative	6,892	7,373	20,386	21,079
Research and development	990	592	3,626	1,820
Total operating expenses	10,748	12,857	32,449	42,235
Operating income	12,651	11,186	37,530	27,335
Other income (expense):	'	'	'	'
Gains on investments	'	508	722	1,340
Interest and dividend income	45	86	275	538
Interest expense	-65	-94	-242	-318
Fair value (loss) gain on common equity put options	'	3,449	-1,047	4,734
Other income, net	15	10	16	31
Total other income (expense)	-5	3,959	-276	6,325
Income before income taxes	12,646	15,145	37,254	33,660
Income tax expense	3,743	29	12,257	78
Net income	$8,903	$15,116	$24,997	$33,582
Income per ordinary share:	'	'	'	'
Basic	$0.48	$0.78	$1.34	$1.66
Diluted	$0.48	$0.77	$1.34	$1.64
Weighted average ordinary shares outstanding:	'	'	'	'
Basic	18,552	19,407	18,596	20,234
Diluted	18,560	19,507	18,604	20,447

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]	'	'	'	'
Net income	$8,903	$15,116	$24,997	$33,582
Other comprehensive income (loss):	'	'	'	'
Reclassification of unrealized (gain) loss on marketable securities to gain on investments	'	'	420	539
Net unrealized loss on marketable securities	1,204	-114	-831	-357
Comprehensive income	$10,107	$15,002	$24,586	$33,764

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT (USD $)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Loss [Member]	Treasury Stock [Member]	Accumulated Deficit [Member]
In Thousands, except Share data
Balance at Dec. 31, 2012	($24,770)	$108,048	$1,729	($1,494)	($93,541)	($39,512)
Balance, shares at Dec. 31, 2012	24,728	24,728	'	'	-6,018	'
Exercise of ordinary options	'	'	'	'	'	'
Exercise of ordinary options, shares	-900	1	'	'	'	'
Share-based issuance issued to settle liability	1,631	'	1,132	'	499	'
Share-based issuance issued to settle liability, shares	'	'	'	'	32	'
Purchase of treasury stock	-2,453	'	'	'	-2,453	'
Purchase of treasury stock, shares	-32,129	'	'	'	-190	'
Unrealized loss on marketable securities	-411	'	'	-411	'	'
Net income	24,997	'	'	'	'	24,997
Balance at Sep. 30, 2013	($1,006)	$108,048	$2,861	($1,905)	($95,495)	($14,515)
Balance, shares at Sep. 30, 2013	24,729	24,729	'	'	-6,176	'

CONDENSED_CONSOLIDATED_STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:	'	'
Net income	$24,997	$33,582
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Provision for doubtful accounts and billing adjustments	-3,827	6,042
Share-based issuance to settle liability	1,631	2,253
Depreciation and amortization	3,496	2,140
Deferred income tax provision	70	71
Interest expense - non-cash	242	318
Gain on investments	-722	-1,340
Fair value loss (gain) on common equity put options	1,047	-4,734
Contributed services	'	60
Change in operating assets and liabilities	'	'
Accounts receivable	5,642	-3,597
Inventories	775	2,025
Deferred costs	-151	-60
Deposits and other current assets	-137	237
Prepaid income taxes	98	-902
Deposits and other non-current assets	126	34
Accounts payable	-288	-2,596
Accrued expenses and other current liabilities	-1,830	1,549
Deferred revenue	-2,347	9,427
Other non-current liabilities	19	-37
Net cash provided by operating activities	28,841	44,472
Cash flows from investing activities:	'	'
Purchases of investments	'	-77,365
Proceeds from sales of investments	12,622	92,140
Purchases of property and equipment	-84	-217
Acquisition of intangible assets	-117	-5,732
Net cash provided by investing activities	12,421	8,826
Cash flows from financing activities:	'	'
Purchase of treasury stock	-5,704	-52,308
Proceeds from sale of common equity put options	'	11,722
Proceeds from exercise of ordinary share options	'	1,210
Payment of other non-current liabilities	-1,500	-1,500
Net cash used in financing activities	-7,204	-40,876
Net increase in cash and cash equivalents	34,058	12,422
Cash and cash equivalents, beginning of period	18,959	12,961
Cash and cash equivalents, end of period	53,017	25,383
Supplemental disclosures:	'	'
Interest paid	'	'
Income taxes paid	12,578	8
Non-cash investing and financing activities:	'	'
Ordinary shares issued for purchase of intangible asset	'	$1,657

DESCRIPTION_OF_BUSINESS_AND_BA

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2013
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION [Abstract]	'
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	'
	NOTE 1 -DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
	Description of Business
	magicJack VocalTec Ltd. and its Subsidiaries (the "Company") is a cloud communications leader that is the inventor of the magicJack devices and other magicJack products and services. magicJacks weigh about one ounce and plug into the USB port on a computer or into a power adapter and high speed Internet source, providing users with complete phone service for home, enterprise and while traveling. The Company charges highly competitive rates for the right (the "access right") to access its servers, and the Company's customers then continue to have the ability to obtain free telephone services. The Company also provides additional products and services, which include voice apps on smart phones, as well as the magicJack PLUS, which is a standalone magicJack that has its own CPU and can connect a regular phone directly to the user's broadband modem/router and function as a standalone phone without using a computer. The Company's products and services allow users to make and/or receive free telephone calls to and from anywhere in the world where the customer has broadband access to the Internet, and allow customers to make free calls back to the United States and Canada from anywhere legally permitted in the world.
	magicJack VocalTec is a vertically integrated group of companies. The Company owns a micro processor chip design company, an appserver and session border controller company, a wholesale provider of voice-over-Internet-Protocol ("VoIP") services, a softphone company, and the developer and provider of the magicJack  product line. The Company intends to expand these existing platforms to allow its customers to use search, shopping, click-to-call and other services via the Internet through intellectual property rights pending and proprietary technologies. The Company also wholesales telephone service to VoIP providers and telecommunication carriers.
	The Company was incorporated in the State of Israel in 1989 and is domiciled in Netanya, Israel.
	Basis of Presentation
	The Company's unaudited condensed consolidated financial statements are prepared in conformity with United States generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of regulation S-K. Accordingly, the Company's unaudited condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements that are included in the Company's Annual report on Form 10-K for the year ended December 31, 2012. The balance sheet at December 31, 2012 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. Management believes, however, that all adjustments of a normal, recurring nature considered necessary for a fair presentation have been included.
	The Company's unaudited condensed consolidated financial statements are the basis for the discussion and analysis of the Company's results of operations, liquidity and capital resources. References to authoritative accounting literature in this report, where applicable, are based on the Accounting Standards Codification ("ASC"). The Company's functional and reporting currency is the United States Dollar ("U.S. Dollar"), which is the currency of the primary economic environment in which its consolidated operations are conducted. Transactions and balances originally denominated in U.S. Dollars are presented at their original amounts. Transactions and balances in currencies other than U.S. Dollars, including Israeli New Shekel ("NIS"), are re-measured in dollars and any gains or losses are recognized in the Company's unaudited condensed consolidated financial statements in the period they occur.
	The Company prepares its unaudited condensed consolidated financial statements on the basis of being a single reporting entity. Over 90% of the Company's revenues in the three and nine months ended September 30, 2013 and 2012 were derived from sales to customers located in the United States. The majority of the Company's revenues were generated from sales of the magicJack product line and from the software access right that accompanies these products, which were $30.9 million and $35.1 million for the three months ended September 30, 2013 and 2012, respectively, and $91.3 million and $97.3 million for the nine months ended September 30, 2013 and 2012, respectively. The Company also provides its customers the ability to make prepaid calls using a magicJack device or magicJack APP by purchasing prepaid minutes. Revenues generated from the usage of prepaid minutes were $3.2 million and $3.3 million for the three months ended September 30, 2013 and 2012, respectively, and $9.6 million and $12.2 million for the nine months ended September 30, 2013 and 2012, respectively. In February 2012, the Company made an operational change which allowed it to identify the point in time when prepaid minutes expire under the terms of service and approximately $3.0 million attributable to prepaid minutes that expired between February 2008 and February 2012 were reversed from deferred revenue and recognized as revenue during the quarter ended March 31, 2012 since such amounts were considered earned. As a result, the Company's diluted earnings per ordinary share for the nine months ended September 30, 2012 were increased by approximately $0.15 per ordinary share.
	Basis of Consolidation
	The Company's unaudited condensed consolidated financial statements include the accounts of magicJack VocalTec and its wholly-owned subsidiaries, YMax Corporation, YMax Communications Corp., magicJack Holdings Corporation, magicJack, LP, SJ Labs, Inc., Tiger Jet Network, Inc., VocalTec Communications, LLC ("VocalTec US", formerly Stratus Telecommunications, LLC), and Predictive Marketing, LLC and B Kruse and Associates, LLC (collectively, "Dialmaxx"). All intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications may have been made to prior period financial statement amounts to conform to the current presentation. The results for the three and nine months ended September 30, 2013 may not be indicative of the results for the entire year. The interim unaudited condensed consolidated financial statements should be read in conjunction with the Company's consolidated financial statements and Management's Discussion and Analysis of Financial Condition and Results of Operations included in this report and in the Company's Annual Report on Form 10-K for the year ended December 31, 2012 filed on April 2, 2013.

SUMMARY_OF_ACCOUNTING_POLICIES

SUMMARY OF ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2013
SUMMARY OF ACCOUNTING POLICIES [Abstract]	'
SUMMARY OF ACCOUNTING POLICIES	'
	NOTE 2 - SUMMARY OF ACCOUNTING POLICIES
	A summary of significant accounting policies used in preparing the Company's financial statements, including a summary of recent accounting pronouncements that may affect its financial statements in the future, follows:
	Use of Estimates
	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include allowances for billing adjustments and doubtful accounts, the recoverability of long-lived assets and goodwill, income tax valuation allowance (and related matters), the expected forfeitures of ordinary share options and estimates of likely outcomes related to certain contingent liabilities.
	The Company evaluates its estimates on an ongoing basis. The Company's estimates and assumptions are based on factors such as historical experience, trends within the Company and the telecommunications industry, general economic conditions and on various other assumptions that it believes to be reasonable under the circumstances. The results of such assumptions form the basis for making judgments about the carrying values of assets and liabilities that are not readily available. Actual results may differ from the Company's estimates and assumptions as a result of varying market and economic conditions, and may result in lower revenues and lower net income.
	Net Revenues
	Net revenues consists of revenue from sales of magicJack devices   to retailers, wholesalers or directly to customers, access right renewal fees, fees charged for shipping magicJack, usage of prepaid minutes, access charges to other carriers and other miscellaneous charges. Revenue is recorded net of sales returns and allowances.
	Revenue Recognition
	magicJack Devices Revenue
	The Company recognizes revenues from sales and shipping of direct sales of magicJack devices over the period associated with the initial access right period. Customers may purchase access rights for continued use of its software to access the Company's servers for additional years either when the original purchase is made, or at any time thereafter. The revenue associated with the access right for additional years is deferred and recognized ratably over the extended access right period.
	Sales Return Policy
	The Company offers some of its direct sales customers a 30-day free trial before they have to pay for their magicJack device. The Company does not record or recognize revenue until the 30-day trial period has expired and a customer's credit card has been charged.
	Returns from retailers are accepted on an authorized basis for devices deemed defective. The Company may offer certain retailers the limited right to return any unsold merchandise from their initial stocking orders. The Company estimates potential returns under these arrangements at point of sale and re-estimates potential returns on a quarterly basis. For the three and nine months ended September 30, 2013 and 2012, the Company's estimates of returns and actual returns from initial stocking orders have not been materially different.
	Telephony Services Revenue
	Telephony revenue is recognized as minutes are used. Telephony revenue is generated from the usage of prepaid minutes, fees for origination of calls to 800-numbers and access fees charged to other telecommunication carriers on a per-minute basis for Interexchange Carriers ("IXC") calls terminated on the Company's servers. Revenues from access fee charges to other telecommunication carriers are recorded based on rates set forth in the respective state and federal tariffs or negotiated contract rates, less a provision for billing adjustments of $0.4 million and $1.5 million for the three months ended September 30, 2013 and 2012, respectively, and $2.4 million and $5.7 million for the nine months ended September 30, 2013 and 2012, respectively.
	Deferred Revenues
	Deferred revenues consist primarily of billings and payments for magicJack devices and sales of telecommunication service agreements received in advance of revenue recognition. The Company bills and collects in advance for magicJack Devices, which include the access right for the software to access its servers for an initial access right period in order to obtain free domestic local and long distance broadband telephone service. The Company also bills for extended service agreements. Deferred revenues to be recognized over the next twelve months are classified as current and included in deferred revenue, current portion in the Company's condensed consolidated balance sheets. The remaining amounts are classified as non-current in the condensed consolidated balance sheets and included in deferred revenue, net of current portion.
	Cost of Revenues
	Cost of revenues includes direct costs of operation of the Company's servers, which are expensed as incurred. These costs include the Company's internal operating costs, depreciation and amortization expense, access and interconnection charges to terminate domestic and international telephone calls on the public switched telephone network and related taxes. Direct costs also include regulatory costs, servers maintenance, and costs to co-locate the Company's equipment in other telephone companies' facilities. Direct costs of producing magicJack devices are deferred on shipment and charged to cost of sales ratably over the initial access right period. Deferred costs are included in current assets in the Company's condensed consolidated balance sheets.
	Costs incurred for shipping and handling and credit card charges are included in cost of revenues and are expensed as incurred. Costs for shipping and handling and credit card charges were $1.5 million and $0.9 million for the three months ended September 30, 2013 and 2012, respectively, and $4.0 million and $4.3 million for the nine months ended September 30, 2013 and 2012, respectively.
	Allowance for Doubtful Accounts and Billing Adjustments
	The Company maintains an allowance for doubtful accounts based on the expected collectability of its accounts receivables. That estimate is based on historical collection experience, current economic and market conditions and a review of the current status of each customer's trade accounts receivable. The allowance includes estimates of billing adjustments, which are negotiated with other telecommunication carriers and are common in the telecommunication industry.
	Marketable Securities and Other Investments
	Marketable securities are considered available-for-sale. Available-for-sale securities are recorded at fair value with any unrealized gains and losses reported in accumulated other comprehensive loss and as a separate component of capital deficit in the condensed consolidated balance sheets. Gains and losses are recorded based on specific identification by asset. The Company does not recognize changes in the fair value of its available-for-sale investments in income unless a decline in value is considered other-than-temporary in accordance with the authoritative guidance.
	Securities sold, not yet purchased are considered liabilities, and are included in accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheets. These liabilities are recorded at fair value with any unrealized gains and losses recognized as gains or losses on investments in the Company's condensed consolidated statements of operations as the Company is liable for the current market price as of the balance sheet date.
	Common Equity Put Options
	Common equity put option ("put option") contracts sold in connection with the Company's share repurchase program may expire unexercised or be assigned to the Company on or before the contract expiration date. Put option contracts exercised result in the Company purchasing its ordinary shares. Put option contracts outstanding at the end of a period are liabilities under ASC Subtopic 480-10, "Distinguishing Liabilities from Equity," and are included in accrued expenses and other current liabilities in the Company's condensed consolidated balance sheets. These liabilities are marked-to-market at the unadjusted quoted prices in active markets for identical assets, which are Level 1 inputs. Any unrealized gains or losses are recognized as fair value gains (losses) on common equity put options in the Company's condensed consolidated statements of operations.
	Certain Risks and Concentrations
	Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, marketable securities and accounts receivable. Cash equivalents generally consist of money market instruments and U.S. government notes. Marketable securities generally consist of equity and debt securities as well as a variety of mutual funds which primarily invest in government securities, debt, preferred stocks and equity securities.
	The Company places its cash and cash equivalents with high quality financial institutions and management believes the Company is not exposed to any significant risk on its cash accounts. The Company maintains accounts with various banks and brokerage organizations and constantly monitors the creditworthiness of these institutions. Cash accounts at each U.S. bank are insured by the FDIC up to $250 thousand in the aggregate and may exceed federally insured limits. Cash accounts at each Israeli bank are not insured. We have never experienced any losses related to these balances. At September 30, 2013, the Company had cash and cash equivalents totaling $53.0 million, which included (i) $52.8 million in U.S. banks, and (ii) $0.2 million in an Israeli financial institution.
	The Company's non-interest bearing cash balances in U.S. banks, which included $2.0 million in one individual financial institution, were fully insured, except for $0.4 million that exceed insurance limits at September 30, 2013. The Company had money market accounts with a financial institution with balances totaling approximately $50.7 million.
	Two telecommunication carriers accounted for approximately 22% and 14% of gross accounts receivable at September 30, 2013. One telecommunication carrier accounted for approximately 63% of gross accounts receivable at December 31, 2012, respectively. For the three and nine months ended September 30, 2013 and 2012, no telecommunication carrier accounted for more than 10% of the Company's total net revenues.
	One U.S. retail customer accounted for approximately 10% of gross accounts receivable at September 30, 2013. No other retail customer accounted for more than 10% of gross accounts receivable at September 30, 2013 and December 31, 2012. For the three and nine months ended September 30, 2013 and 2012, no retailer accounted for more than 10% of the Company's total net revenues.
	Fair Value
	GAAP 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 hierarchy is broken down into three levels based on the reliability of inputs as follows:
	Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities.
	Level 2 - Valuations based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
	Level 3 - Valuation based on inputs that are unobservable and significant to the overall fair value measurement.
	When available, the Company uses quoted market prices to determine fair value, and it classifies such measurements within Level 1. Fair value measurements are classified according to the lowest level input or value-driver that is significant to the valuation. Fair value includes the consideration of nonperformance risk. Nonperformance risk refers to the risk that an obligation (either by a counterparty or the Company) will not be fulfilled. For the Company's financial assets traded in an active market (Level 1), the nonperformance risk is included in the market price. The Company's assets and liabilities measured on a recurring basis at fair value may include marketable securities, securities sold, not yet purchased, and common equity put options in the Company's own stock. As of September 30, 2013 and December 31, 2012, all of them are Level 1 instruments, except for debt securities, which are level 2 instruments. The fair value of Level 2 securities is estimated based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The carrying amounts of the Company's financial instruments, including cash and cash equivalents, accounts payable and accrued expenses are expected to approximate fair value because of their immediate availability, near term maturities or potential interest payments at settlement.
	In connection with the Company's purchase of certain intangible assets during June 2011, the Company made payments of $1.5 million in May 2011, May 2012 and May 2013, respectively, and is required to make non-interest bearing annual future payments of $1.5 million for each of the next two years, beginning May 31, 2014. The liability for such payments has been discounted at a rate of 10% to a total fair value of $2.7 million and $3.9 million at September 30, 2013 and December 31, 2012, respectively, with $1.5 million included in accrued expenses and other current liabilities at September 30, 2013 and December 31, 2012, and $1.2 million and $2.4 million included in other non-current liabilities in the Company's September 30, 2013 and December 31, 2012 condensed consolidated balance sheets, respectively. The Company believes that the $2.7 million carrying value at September 30, 2013 approximates fair value based on observable market inputs other than quoted prices for similar traded debt securities, which are Level 2 instruments. The $0.3 million unamortized discount at September 30, 2013 is being amortized using the effective interest method and recorded as interest expense in the Company's condensed consolidated statements of operations.
	Any unrealized gains or losses related to put option contracts sold in connection with the Company's share repurchase program are recognized as fair value gains (losses) on common equity put options in the Company's condensed consolidated statements of operations. These liabilities are marked-to-market at the unadjusted quoted prices in active markets for identical assets, which are Level 1 inputs. As of September 30, 2013, there were no common equity put options outstanding. At December 31, 2012, outstanding common equity put options had a fair value of $2.2 million, which was included in accrued expenses and other current liabilities in the Company's condensed consolidated balance sheet.
	Property, Equipment and Depreciation Expense
	Property and equipment consist primarily of servers, computer hardware, furniture, and leasehold improvements. Fixed assets, other than leasehold improvements, are stated at cost with depreciation provided using the straight-line method over the estimated useful lives of the related assets, which range from three to fifteen years. Leasehold improvements are stated at cost and amortized over the shorter of the term of the lease or useful life of the assets. The cost of substantial improvements is capitalized while the cost of maintenance and repairs are charged to operating expenses as incurred.
	The Company's hardware consists of routers, gateways and servers that enable the Company's telephony services. Some of these assets may be subject to technological risks and rapid market changes due to the introduction of new technology, products and services and changing customer demand. These changes may result in future adjustments to the estimated useful lives and the carrying value of these assets.
	Long-lived assets, such as property, plant and equipment, and purchased intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Management believes there is no impairment at September 30, 2013.
	Goodwill
	Goodwill represents the excess of the purchase price over the fair value of the identifiable net assets acquired. Goodwill and other intangible assets with indefinite lives are not amortized to operations, but instead are reviewed for impairment at least annually, or when there is an indicator of impairment. The Company is currently defined as one reporting unit.
	The goodwill impairment test is a two-step test. Under the first step, the fair value of the reporting unit is compared with its carrying value (including goodwill). Since the Company has negative carrying value, we apply the guidance in ASC No. 2010-28," Intangibles-Goodwill and Other (Topic 350): When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts," ("ASU 2010-28") to determine whether Step 2 is required. Accounting Standard Update ("ASU") 2010-28 modified current guidance such that Step 2 of the goodwill impairment test must be performed for reporting units with zero or negative carrying amounts if qualitative factors indicate that it is more likely than not that a goodwill impairment exists. Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit's goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit is determined using a discounted cash flow analysis. An impairment loss shall be recognized to the extent that the carrying amount of goodwill exceeds its implied fair value. It is Company's policy to conduct impairment testing based on its current business strategy in light of present industry and economic conditions, as well as its future expectations.
	The Company evaluates the carrying value of its goodwill annually or more frequently if impairment indicators arise. Indicators include, but are not limited to: sustained operating losses or a trend of poor operating performance and a decrease in the Company's market capitalization below its book value. The Company's valuation methodology for assessing impairment requires management to make judgments and assumptions based on historical experience and projections of future operating performance. If these assumptions differ materially from future results, the Company may record impairment charges in the future.
	In connection with the Company's annual goodwill impairment analysis, as of October 1, 2012, the annual measurement date, the Company's analysis did not indicate any impairment of goodwill has occurred. There were no goodwill impairment indicators as of September 30, 2013.
	Income Taxes
	The Company recognizes deferred tax assets and liabilities for the expected tax consequences of temporary differences between the tax basis of assets and liabilities and their book basis using enacted tax rates.  Any changes in enacted rates or tax laws are included in the provision for income taxes in the period of enactment. The Company's net deferred tax assets consist of primarily foreign net operating loss carryforwards and timing differences between recognition of income for book and tax purposes. The Company records a valuation allowance to reduce the net deferred tax assets to the amount that it estimates is more-likely-than-not to be realized. At December 31, 2012, the Company, based on cumulative profitability over the preceding three years and expected 2013 results, released $10.9 million of the valuation allowance recorded against its net deferred tax assets and determined that a remaining valuation allowance of $55.4 million was necessary to reduce the net deferred tax assets to the amount that will more likely than not be realized. The Company periodically reviews the composition of its net deferred tax assets and related valuation allowances and will make adjustments if available evidence indicates that it is more likely than not a change in the carrying amounts is required. No adjustments were made during the three and nine months ended September 30, 2013.
	The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon its evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where there is greater than 50% likelihood that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is 50% or less likelihood that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements.
	The Company records its income tax expense for interim financial statements by using an estimated annual effective income tax rate based on its expected annual results after elimination of nontaxable items. The tax benefits of net operating loss carryforwards expected to be realized through 2013 and certain other deferred tax assets were recognized for financial reporting purposes at December 31, 2012. At September 30, 2013, the estimated annual effective tax rate is expected to approximately 32.9%, which includes state and local taxes. This rate may fluctuate in the future if we are able to realize additional tax benefits or utilize available tax strategies, as well as due to the timing of other discrete period transactions during the remainder of the year.
	Recent Accounting Pronouncements
	In February 2013, the Financial Accounting Standards Board issued ASU No. 2013-02, Reporting Amounts Reclassified Out of Accumulated Other Comprehensive Income ("ASU 2013-02"). ASU 2013-02 requires an entity to present, either on the face of the statement where net income is presented or in the notes to the financial statements, significant amounts reclassified out of accumulated other comprehensive income (loss) by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. Amounts that are not required to be reclassified in their entirety to net income must be cross-referenced to other disclosures that provide additional detail. This guidance was effective on a prospective basis for the annual and interim reporting periods for the Company beginning January 1, 2013. The Company's adoption of this standard did not have a significant impact on its consolidated financial statements. The Company's accumulated other comprehensive loss is comprised of one item pertaining to the Company's unrealized gains and losses on marketable securities. Reclassification of the gains or losses occurs when the specific investments are sold.

MARKETABLE_SECURITIES

MARKETABLE SECURITIES	9 Months Ended
	Sep. 30, 2013
MARKETABLE SECURITIES [Abstract]	'
MARKETABLE SECURITIES	'
	NOTE 3 - MARKETABLE SECURITIES
	The Company's marketable securities are classified as available-for-sale. As of September 30, 2013 and December 31, 2012, the available-for-sale securities consisted primarily of debt and equity securities, which are invested in the following (in thousands):
		September 30, 2013 (Unaudited)
		Fair		Unrealized		Unrealized
		Value		Gains		Losses
	Common equity securities	$	7,151	$	-	$	(1,905	)
		31-Dec-12
		Fair		Unrealized		Unrealized
		Value		Gains		Losses
	Common equity securities	$	7,983	$	-	$	(1,074	)
	Debt securities		11,407		-		(420	)
	Total	$	19,390	$	-	$	(1,494	)
	The fair value of common equity securities at September 30, 2013 and December 31, 2012 was determined based on unadjusted quoted prices in active markets for identical assets, which are Level 1 inputs. The fair value of debt securities at December 31, 2012 was determined based on valuations based on inputs other than quoted prices included within Level 1 that are directly observable for the asset, which are Level 2 inputs.
	As of September 30, 2013, the Company considers the declines in fair value of its common equity security to be temporary in nature and does not consider those investments other-than-temporarily impaired. Fair values are determined for each individual marketable security. When evaluating an investment for other-than-temporary impairment, the Company reviews factors such as the quality of the issuer, the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer before and after the decline in market value, and the Company's intent to sell, or whether it is more likely than not it will be required to sell the investment before recovery of the investment's cost basis. Management intends to hold its common equity securities and has determined there is no other-than-temporary impairment of such securities at September 30, 2013.
	Gains on investments for the three months ended September 30, 2013 and 2012 was $0 and $0.5 million, respectively, and did not include any reclassification of unrealized gain (loss) on marketable securities from other comprehensive gains (losses) on investments. Gains on investments for the nine months ended September 30, 2013 and 2012 was $0.7 million and $1.3 million, respectively, and included reclassification of unrealized loss on marketable securities from other comprehensive loss to gains on investments of $0.4 million and $0.5 million, respectively.

INVENTORIES

INVENTORIES	9 Months Ended
	Sep. 30, 2013
INVENTORIES [Abstract]	'
INVENTORIES	'
	NOTE 4 - INVENTORIES
	Inventories are comprised of the following (in thousands):
		September 30,		December 31,
		2013		2012
		(Unaudited)
	Raw materials	$	1,462	$	3,009
	Finished goods		3,103		2,331
	Total	$	4,565	$	5,340
	Raw materials represent components used in the manufacturing of the magicJack devices, held by the Company or by a Chinese manufacturer on consignment. Finished products are comprised primarily of magicJack devices on hand or in transit to the Company's distribution center in the United States. There were no write-downs of obsolete inventory for the nine months ended September 30, 2013. The Company wrote-off approximately $3.5 million of obsolete inventory during the nine months ended September 30, 2012.

PROPERTY_AND_EQUIPMENT

PROPERTY AND EQUIPMENT	9 Months Ended
	Sep. 30, 2013
PROPERTY AND EQUIPMENT [Abstract]	'
PROPERTY AND EQUIPMENT	'
	NOTE 5 - PROPERTY AND EQUIPMENT
	Property and equipment are summarized as follows (in thousands):
		Estimated
		Useful Lives		September 30,			December 31,
		(in years)		2013			2012
				(Unaudited)
	Switches		15-Mar	$	7,099		$	7,099
	Computers		3		2,278			2,194
	Furniture		5		160			173
	Leasehold-improvements		*		227			227
	Accumulated depreciation
	and amortization				(7,691	)		(7,345	)
	Total			$	2,073		$	2,348
	Depreciation expense for the three months ended September 30, 2013 and 2012 was $0.1 million. Depreciation expense for the nine months ended September 30, 2013 and 2012 was $0.4 million.

INTANGIBLES_ASSETS

INTANGIBLES ASSETS	9 Months Ended
	Sep. 30, 2013
INTANGIBLES ASSETS [Abstract]	'
INTANGIBLES ASSETS	'
	NOTE 6 - INTANGIBLES ASSETS
	As of September 30, 2013 and December 31, 2012, the Company had intangible assets with carrying values of $13.1 million and $16.1 million, respectively. Identified intangible assets not subject to amortization at September 30, 2013 consisted of tradename and domain names with combined carrying value of $1.2 million. Identified intangible assets not subject to amortization at December 31, 2012 consisted of tradename, a purchased carrier interconnection agreement, and domain names with combined carrying value of $1.5 million. Identified intangible assets with finite lives subject to amortization consist of the following (in thousands):
		Estimated		September 30, 2013 (Unaudited)									31-Dec-12
		Useful
		Lives		Gross Carrying		Accumulated					Weighted-		Gross Carrying		Accumulated					Weighted-
		(in years)		Amount		Amortization			Net		Average Life		Amount		Amortization			Net		Average Life
	Technology		17-Mar	$	5,221	$	(4,168	)	$	1,053		6.39	$	5,221	$	(3,735	)	$	1,486		6.69
	Intellectual property rights		17-Mar		14,161		(4,653	)		9,508		4.37		14,161		(2,772	)		11,389		4.91
	Covenant not-to-sue		5		2,085		(973	)		1,112		2.67		2,085		(660	)		1,425		3.42
	Tradename		6-Mar		321		(268	)		53		2.25		321		(250	)		71		3
	Customer relationships		7-May		750		(555	)		195		3.83		750		(464	)		286		4.55
	Backlog		1		800		(800	)		-		-		800		(800	)		-		-
	Total			$	23,338	$	(11,417	)	$	11,921			$	23,338	$	(8,681	)	$	14,657
	Amortization expense for the three months ended September 30, 2013 and 2012 was $0.8 million. Amortization expense for the nine months ended September 30, 2013 and 2012 were $3.1 million and $1.7 million, respectively. Amortization expense for the nine months ended September 30, 2013 included (i) a $0.2 million impairment of certain technology and customer relationships related to the VocalTec legacy products, which the Company discontinued selling in 2013, and (ii) a $0.4 million impairment of a carrier interconnection agreement as a result of more favorable rates that have become available to the Company. Based on the carrying value of identified intangible assets recorded at September 30, 2013, and assuming no subsequent impairment of the underlying assets, the amortization expense for the future fiscal years is expected to be as follows (in thousands):
	Fiscal Year	Amortization
		Expense
	Three months ending December 31, 2013	$	848
	2014		3,252
	2015		2,624
	2016		1,565
	2017		1,331
	Thereafter		2,301
		$	11,921

DEFERRED_COSTS_AND_REVENUES

DEFERRED COSTS AND REVENUES	9 Months Ended
	Sep. 30, 2013
DEFERRED COSTS AND REVENUES [Abstract]	'
DEFERRED COSTS AND REVENUES	'
	NOTE 7 - DEFERRED COSTS AND REVENUES
	Deferred costs and revenues to be recognized over the next twelve months are classified as current and included in the Company's condensed consolidated balance sheets. The remaining deferred revenue amounts are classified as non-current in the condensed consolidated balance sheets.
	Deferred revenues are comprised of the following at September 30, 2013 and December 31, 2012 (in thousands):
		September 30,		December 31,
		2013		2012
	magicJack devices	$	25,122	$	31,481
	Access right renewals		37,678		32,969
	Prepaid minutes		2,567		2,588
	Deferred revenue, current		65,367		67,038
	Deferred revenue, non-current*		57,489		58,165
	Total deferred revenues	$	122,856	$	125,203
	* Deferred revenues, non-current, is comprised entirely of deferred revenues originating from the sale of access right renewals.
	Costs necessary to fulfill the Company's obligations to provide broadband telephone service to new and existing customers who have purchased magicJack devices or access rights to access the Company's servers are expensed as incurred. Such costs were approximately $5.2 million and $7.2 million for the three months ended September 30, 2013 and 2012, respectively, and approximately $16.5 million and $21.8 million for the nine months ended September 30, 2013 and 2012, respectively.

OTHER_LIABILITIES

OTHER LIABILITIES	9 Months Ended
	Sep. 30, 2013
OTHER LIABILITIES [Abstract]	'
OTHER LIABILITIES	'
	NOTE 8 - OTHER LIABILITIES
	As of September 30, 2013 and December 31, 2012, the Company had outstanding indebtedness in connection with an agreement entered during June 2011 for the purchase of certain intangible assets, and secured only by such intangible assets, under which the Company was required to make four non-interest bearing future annual payments of $1.5 million beginning May 31, 2012. The liability for such payments has been discounted at a rate of 10% to a total net present value of $2.7 million and $3.9 million at September 30, 2013 and December 31, 2012, respectively, with $1.5 million included in accrued expenses and other current liabilities and the remaining portion included in other non-current liabilities in the accompanying September 30, 2013 and December 31, 2012 condensed consolidated balance sheets, respectively.

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2013
COMMITMENTS AND CONTINGENCIES [Abstract]	'
COMMITMENTS AND CONTINGENCIES	'
	NOTE 9 - COMMITMENTS AND CONTINGENCIES
	The Company is subject to various legal proceedings and claims, including intellectual property claims, contractual and commercial disputes, employment claims, state and local tax matters and other matters which arise in the ordinary course of business. The Company's policy is to vigorously defend any legal proceedings. Management regularly evaluates the status of legal proceedings in which the Company is involved in order to assess whether a loss is probable or there is a reasonable possibility that a loss or additional loss may have been incurred and to determine if accruals are appropriate. While the outcome of these claims cannot be predicted with certainty, management does not believe that the outcome of any of these legal matters will have a material adverse effect on the Company's business, operating results, financial condition or cash flows. However, an unexpected adverse resolution of one or more of these matters could have a material adverse effect on the Company's results of operations in a particular fiscal year or quarter.
	On April 22, 2013, Arthur M. Bussel (a/k/a "Mel Arthur"), Lori A. Bussel and As Seen On TV.US, Inc. filed a lawsuit against Daniel M. Borislow, "magicJack VocalTec LLC," and YMax Corporation in Florida's Sixth Judicial Circuit Court, Pinellas County, for various claims including breach of contract. The suit is captioned Bussel v. Borislow, et al., Case No. 13-004178-CI. The Plaintiffs contend that the three Defendants were served with Summonses and Complaints on May 8, 2013; the three Defendants dispute that they were served. The three Plaintiffs filed a Motion for Default on May 29, 2013, and the Clerk of the Court entered Defaults against the three named Defendants on May 31, 2013. On June 4, 2013, the three Plaintiffs filed a Motion for Final Judgment, seeking, (i) a $5.9 million (approx.) money damages judgment against all three named Defendants, and (ii) an Order awarding to the three Plaintiffs legal title to a 2009 Cadillac Escalade motor vehicle. No ruling has been made on Plaintiffs' Motion for Final Judgment. On June 18, 2013, the Company and the other Defendants filed several Motions, including a Motion to Vacate Clerk's Default, together with Motions seeking to Dismiss the lawsuit, to Quash Service, and to Transfer or Dismiss the suit based on improper venue. The Company and the other Defendants also filed affidavits in support of their Motions. The Court has yet to set a hearing to address the merits of the various pending motions. The Company believes it has raised grounds that will require that the Default entered by the Clerk of the Court be vacated or set aside (including, but not limited to, the complete lack of and/or improper service of process); the Company also believes that it has meritorious defenses to the claims asserted in the Plaintiffs' Complaint. The Company intends to defend the litigation vigorously, and may have counterclaims against Arthur and Lori Bussel that the Company believes may exceed their $5.9 million claim. However, the Company can provide no assurance as to the ultimate outcome of this matter and if the default judgment is upheld it could have a material adverse effect on the Company's financial condition, results of operation and cash flows.
	The Company believes that it files all required tax returns and pays all required state and municipal taxes (such as sales, excise, utility, and ad valorem taxes), fees and surcharges. The Company is the subject of inquiries and examinations by various state and municipalities in the normal course of business. In accordance with generally accepted accounting principles, the Company makes a provision for a liability for taxes when it is both probable that a liability has been incurred and the amount of the liability can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. The Company strongly believes any possible claims are without merit and vigorously defends its rights. However, if a state or municipality were to prevail in any matter, it could have a material adverse effect on the Company's financial condition, results of operation and cash flows. In addition, it is at least reasonably possible that a potential loss may exist for tax contingencies in addition to the provisions taken by the Company. For those potential additional tax contingencies which can be reasonably estimated, that additional potential liability ranges from $0 to $2.5 million dollars.

ORDINARY_SHARES_TREASURY_STOCK

ORDINARY SHARES, TREASURY STOCK AND FAIR VALUE (LOSS) GAIN ON COMMON EQUITY PUT OPTIONS	9 Months Ended
	Sep. 30, 2013
ORDINARY SHARES, TREASURY STOCK AND FAIR VALUE (LOSS) GAIN ON COMMON EQUITY PUT OPTIONS [Abstract]	'
ORDINARY SHARES, TREASURY STOCK AND FAIR VALUE (LOSS) GAIN ON COMMON EQUITY PUT OPTIONS	'
	NOTE 10 -ORDINARY SHARES, TREASURY STOCK AND FAIR VALUE (LOSS) GAIN ON COMMON EQUITY PUT OPTIONS
	Ordinary Shares
	During the nine months ended September 30, 2012, the Company issued: (i) 10,000 ordinary shares valued at approximately $0.2 million to its new President for a sign-on bonus, (ii) 21,564 ordinary shares valued at approximately $0.4 million for the purchase of a carrier interconnection agreement, (iii) 19,350 ordinary shares valued at approximately $0.4 million for marketing-related sponsorships, and (iv) 62,563 ordinary shares valued at $1.3 million as consideration for the purchase or certain intangible assets.
	Treasury Stock and Fair Value (Loss) Gain on Common Equity Put Options
	The Company's Board of Directors authorized a stock repurchase program to enable the Company to purchase its ordinary shares at such times as management deems appropriate up to a maximum cumulative repurchase authority granted to us of $100 million as of September 30, 2013. The primary objective of the Company's stock repurchase program is to improve stockholders' returns. The Company expended $91.3 million under its repurchase program through September 30, 2013. At September 30, 2013, there was $8.7 million authorized to purchase ordinary shares pursuant to the stock repurchase program. All shares purchased, not yet retired, are recorded as treasury stock.
	The Company has bought call option contracts and has sold put option contracts in connection with its share repurchase program in order to attempt to lower the average price paid for ordinary shares it purchases. There were no outstanding put option contracts at September 30, 2013. Taking into consideration the proceeds received from the sale of put option contracts exercised, put option contracts that expired unexercised and purchase price of call option contracts exercised during the nine months ended September 30, 2013 and 2012, the Company expended approximately: (i) $3.3 million purchasing 190,000 shares of outstanding ordinary shares at an average price of $17.27 during the nine months ended September 30, 2013, and (ii) $42.4 million purchasing 2,362,949 shares of outstanding ordinary shares at an average price of $17.95 during the nine months ended September 30, 2012.
	The Company issued 32,129 of its ordinary shares held as treasury stock with a cost of $0.5 million, $15.54 per share (and a fair value of $0.4 million, $12.45 per share), to settle a liability in the nine months ended September 30, 2013.
	The Company issued 74,992 of its ordinary shares held as treasury shares with a fair value of $1.5 million, $20.25 per share, to employees and outside consultants for services rendered in the first nine months of 2012.
	The changes in treasury stock during the nine months ended September 30, 2013 are as follows (in thousands, except for number of shares):
		Nine Months Ended
		30-Sep-13
		Number			Amount
		(Unaudited)
	Balance, beginning of period		6,018,246		$	93,541
	Ordinary shares purchased through
	the stock repurchase program		190,000			2,453
	Treasury stock issued to settle liability		(32,129	)		(499	)
	Balance, end of period		6,176,117		$	95,495

SHAREBASED_COMPENSATION

SHARE-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2013
SHARE-BASED COMPENSATION [Abstract]	'
SHARE-BASED COMPENSATION	'
	NOTE 11 - SHARE-BASED COMPENSATION
	The Company has granted ordinary share options and issued restricted stock units and ordinary shares as an alternative or supplement to the compensation of its executives, employees and consultants. The following table provides additional information regarding ordinary share options issued, outstanding and exercisable for year ended December 31, 2012 and nine months September 30, 2013 (aggregate intrinsic value in thousands):
							Weighted
							Average
					Weighted		Remaining
					Average		Contractual		Aggregate
		Number of			Exercise		Term		Intrinsic
	Date of Grant	Options			Price		(in years)		Value *
	1-Jan-12		290,232		$	4.86		1.66	$	2,554
	Granted		-		$	-
	Exercised		(270,088	)	$	4.54
	Expired or cancelled		(8,644	)	$	16.17
	31-Dec-12		11,500		$	3.85		7.13	$	165
	Granted		1,018,813		$	15.73
	Exercised		(900	)	$	0.45
	Expired or cancelled		-		$	-
	30-Sep-13		1,029,413		$	15.61		4.49	$	(2,821	)
	Vested at September 30, 2013		10,350		$	4.13		3.4	$	90
	* The aggregate intrinsic value is the difference between the estimated market value for the Company's common stock and the exercise price of the outstanding stock options.
	Share-based compensation expense recognized for ordinary share options and restricted stock units was $1.2 million and $0 for the three months ended September 30, 2013 and 2012 and was $1.2 million and $0.2 million for the nine months ended September 30, 2013 and 2012. The total intrinsic value of ordinary share options exercised during the nine months ended September 30, 2013 and year ended December 31, 2012 was $12 thousand and $3.8 million, respectively. As of September 30, 2013, there was approximately $9.3 million of unrecognized compensation expense related to unvested ordinary share options and restricted stock units, which is expected to be recognized until December 2015.

INCOME_TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2013
INCOME TAXES [Abstract]	'
INCOME TAXES	'
	NOTE 12 - INCOME TAXES
	Total income tax expense was $3.7 million and $29 thousand for the three months ended September 30, 2013 and 2012, respectively, and $12.3 million and $78 thousand for the nine months ended September 30, 2013 and 2012, respectively. Income taxes for the three and nine months ended September 30, 2013 and 2012 are the following (in thousands):
		Three Months Ended						Nine Months Ended
		September 30						30-Sep
		2013			2012			2013			2012
	Income before taxes	$	12,646		$	15,145		$	37,254		$	33,660
	Income tax expense		3,743			29			12,257			78
	Effective income tax rate		29.6	%		0.19	%		32.9	%		0.23	%
	Income tax expense for the three and nine months ended September 30, 2012 was offset by the utilization of net operating loss carryforwards. The income tax provision also includes state and local income taxes. There are no income taxes associated with the accumulated other comprehensive loss.
	The effective tax rate is calculated by dividing the income tax expense by income before income tax expense. The effective rate for the three and nine months ended September 30, 2013 vary from the federal statutory rate due, in part, to items that are not deductible for income tax purposes, as well as state income tax expense, offset by a lower statutory rate on our Israeli operations. The 2013 estimated annual effective tax rate is expected to be approximately 32.9%, but may fluctuate each quarter due to the timing of other discrete period transactions.
	During the quarter ended September 30, 2013, the Internal Revenue Service commenced an examination of the Company's U.S. income tax return for 2010 and 2011. The calculation of the Company's provision (benefit) for income taxes requires the use of significant judgment and involves dealing with uncertainties in the application of complex tax laws and regulations. The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon its evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where there is greater than 50% likelihood that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is 50% or less likelihood that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements.
	Based on the Company's current assessment of the laws, rulings, negotiations, potential settlements, and advice from legal counsel in connection with its income tax positions, the Company has not reserved for potential adjustments to its provision for income taxes that may result from these examinations.

INCOME_PER_SHARE

INCOME PER SHARE	9 Months Ended
	Sep. 30, 2013
INCOME PER SHARE [Abstract]	'
INCOME PER SHARE	'
	NOTE 13 - INCOME PER SHARE
	Net Income per share - basic, is calculated by dividing net income by the weighted average number of ordinary shares outstanding during each period. Net income per share - diluted, is computed by dividing net income attributable to shareholders and dividing it by the weighted average number of ordinary and potentially diluted ordinary share equivalents outstanding during the period. Potentially dilutive ordinary share equivalents consist of shares issuable upon the exercise or settlement of options to purchase ordinary shares and outstanding put option contracts on the Company's own stock (if applicable).
	Potentially dilutive securities, using the treasury stock method are set forth in the following table, which presents the computation of basic and diluted net income per ordinary share attributable to shareholders (in thousands, except for per share information):
		Three Months Ended September 30,				Nine Months Ended September 30,
		2013		2012		2013		2012
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
	Numerator:
	Net income	$	8,903	$	15,116	$	24,997	$	33,582
	Denominator:
	Denominator for basic net income per share - weighted
	average ordinary shares outstanding		18,552		19,407		18,596		20,234
	Effect of dilutive options to purchase ordinary shares		8		11		8		10
	Effect of dilutive options exercised or expired during the year		-		3		-		64
	Effect of dilutive common equity put options outstanding		-		86		-		139
	Denominator for diluted net income per share - weighted
	average ordinary shares outstanding		18,560		19,507		18,604		20,447
	Net income per ordinary share attributable to shareholders
	Basic	$	0.48	$	0.78	$	1.34	$	1.66
	Diluted	$	0.48	$	0.77	$	1.34	$	1.64

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2013
SUBSEQUENT EVENTS [Abstract]	'
SUBSEQUENT EVENTS	'
	NOTE 14 - SUBSEQUENT EVENTS
	Following his departure from the position of Chief Executive Officer, on December 31, 2012, Mr. Daniel Borislow provided services to the Company relating to, among other matters, product development, marketing, telecommunications regulatory issues and litigation support. Mr. Borislow also agreed to comply in principle with certain restrictions with respect to voting his shares and prohibiting Mr. Borislow from competing with the Company or soliciting its employees, pending the negotiation of a formal agreement on such matters. In consideration for the services performed and Mr. Borislow's compliance with such restrictions, the Company made three quarterly payments b eginning January 1, 2013 to Mr. Borislow of $500,000 ,which are included in expenses. As previously reported in a Current Report on Form 8-K filed with the Securities and Exchange Commission on November 12, 2013, the Company and Mr. Borislow entered into a formal agreement on November 6, 2013 that includes a two-year standstill requirement, non-compete/no solicit provision, and an assignment of certain intellectual property rights by Mr. Borislow to the Company.  The Company has issued 300,000 ordinary shares in exchange for Mr. Borislow's obligations under this formal agreement. In addition, the Company repurchased $13 million of ordinary shares from the independent trustees of two irrevocable trusts previously created by Mr. Borislow and executed a letter of intent committing to negotiate an agreement to outsource to a customer care company affiliated with Mr. Borislow certain live chat customer care activities currently provided to the Company primarily by a third party. The letter of intent provides for the Company to pay a $1.5 million break-up fee to the customer care company if an agreement on the terms of such customer care activities is not reached by December 20, 2013.

SUMMARY_OF_ACCOUNTING_POLICIES1

SUMMARY OF ACCOUNTING POLICIES (Policy)	9 Months Ended
	Sep. 30, 2013
SUMMARY OF ACCOUNTING POLICIES [Abstract]	'
Use of Estimates	'
	Use of Estimates
	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include allowances for billing adjustments and doubtful accounts, the recoverability of long-lived assets and goodwill, income tax valuation allowance (and related matters), the expected forfeitures of ordinary share options and estimates of likely outcomes related to certain contingent liabilities.
	The Company evaluates its estimates on an ongoing basis. The Company's estimates and assumptions are based on factors such as historical experience, trends within the Company and the telecommunications industry, general economic conditions and on various other assumptions that it believes to be reasonable under the circumstances. The results of such assumptions form the basis for making judgments about the carrying values of assets and liabilities that are not readily available. Actual results may differ from the Company's estimates and assumptions as a result of varying market and economic conditions, and may result in lower revenues and lower net income.
Net Revenues	'
	Net Revenues
	Net revenues consists of revenue from sales of magicJack devices   to retailers, wholesalers or directly to customers, access right renewal fees, fees charged for shipping magicJack, usage of prepaid minutes, access charges to other carriers and other miscellaneous charges. Revenue is recorded net of sales returns and allowances.
Revenue Recognition	'
	Revenue Recognition
	magicJack Devices Revenue
	The Company recognizes revenues from sales and shipping of direct sales of magicJack devices over the period associated with the initial access right period. Customers may purchase access rights for continued use of its software to access the Company's servers for additional years either when the original purchase is made, or at any time thereafter. The revenue associated with the access right for additional years is deferred and recognized ratably over the extended access right period.
	Sales Return Policy
	The Company offers some of its direct sales customers a 30-day free trial before they have to pay for their magicJack device. The Company does not record or recognize revenue until the 30-day trial period has expired and a customer's credit card has been charged.
	Returns from retailers are accepted on an authorized basis for devices deemed defective. The Company may offer certain retailers the limited right to return any unsold merchandise from their initial stocking orders. The Company estimates potential returns under these arrangements at point of sale and re-estimates potential returns on a quarterly basis. For the three and nine months ended September 30, 2013 and 2012, the Company's estimates of returns and actual returns from initial stocking orders have not been materially different.
	Telephony Services Revenue
	Telephony revenue is recognized as minutes are used. Telephony revenue is generated from the usage of prepaid minutes, fees for origination of calls to 800-numbers and access fees charged to other telecommunication carriers on a per-minute basis for Interexchange Carriers ("IXC") calls terminated on the Company's servers. Revenues from access fee charges to other telecommunication carriers are recorded based on rates set forth in the respective state and federal tariffs or negotiated contract rates, less a provision for billing adjustments of $0.4 million and $1.5 million for the three months ended September 30, 2013 and 2012, respectively, and $2.4 million and $5.7 million for the nine months ended September 30, 2013 and 2012, respectively.
Deferred Revenues	'
	Deferred Revenues
	Deferred revenues consist primarily of billings and payments for magicJack devices and sales of telecommunication service agreements received in advance of revenue recognition. The Company bills and collects in advance for magicJack Devices, which include the access right for the software to access its servers for an initial access right period in order to obtain free domestic local and long distance broadband telephone service. The Company also bills for extended service agreements. Deferred revenues to be recognized over the next twelve months are classified as current and included in deferred revenue, current portion in the Company's condensed consolidated balance sheets. The remaining amounts are classified as non-current in the condensed consolidated balance sheets and included in deferred revenue, net of current portion.
Cost of Revenues	'
	Cost of Revenues
	Cost of revenues includes direct costs of operation of the Company's servers, which are expensed as incurred. These costs include the Company's internal operating costs, depreciation and amortization expense, access and interconnection charges to terminate domestic and international telephone calls on the public switched telephone network and related taxes. Direct costs also include regulatory costs, servers maintenance, and costs to co-locate the Company's equipment in other telephone companies' facilities. Direct costs of producing magicJack devices are deferred on shipment and charged to cost of sales ratably over the initial access right period. Deferred costs are included in current assets in the Company's condensed consolidated balance sheets.
	Costs incurred for shipping and handling and credit card charges are included in cost of revenues and are expensed as incurred. Costs for shipping and handling and credit card charges were $1.5 million and $0.9 million for the three months ended September 30, 2013 and 2012, respectively, and $4.0 million and $4.3 million for the nine months ended September 30, 2013 and 2012, respectively.
Allowance for Doubtful Accounts and Billing Adjustments	'
	Allowance for Doubtful Accounts and Billing Adjustments
	The Company maintains an allowance for doubtful accounts based on the expected collectability of its accounts receivables. That estimate is based on historical collection experience, current economic and market conditions and a review of the current status of each customer's trade accounts receivable. The allowance includes estimates of billing adjustments, which are negotiated with other telecommunication carriers and are common in the telecommunication industry.
Marketable Securities and Other Investments	'
	Marketable Securities and Other Investments
	Marketable securities are considered available-for-sale. Available-for-sale securities are recorded at fair value with any unrealized gains and losses reported in accumulated other comprehensive loss and as a separate component of capital deficit in the condensed consolidated balance sheets. Gains and losses are recorded based on specific identification by asset. The Company does not recognize changes in the fair value of its available-for-sale investments in income unless a decline in value is considered other-than-temporary in accordance with the authoritative guidance.
	Securities sold, not yet purchased are considered liabilities, and are included in accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheets. These liabilities are recorded at fair value with any unrealized gains and losses recognized as gains or losses on investments in the Company's condensed consolidated statements of operations as the Company is liable for the current market price as of the balance sheet date.
Common Equity Put Options	'
	Common Equity Put Options
	Common equity put option ("put option") contracts sold in connection with the Company's share repurchase program may expire unexercised or be assigned to the Company on or before the contract expiration date. Put option contracts exercised result in the Company purchasing its ordinary shares. Put option contracts outstanding at the end of a period are liabilities under ASC Subtopic 480-10, "Distinguishing Liabilities from Equity," and are included in accrued expenses and other current liabilities in the Company's condensed consolidated balance sheets. These liabilities are marked-to-market at the unadjusted quoted prices in active markets for identical assets, which are Level 1 inputs. Any unrealized gains or losses are recognized as fair value gains (losses) on common equity put options in the Company's condensed consolidated statements of operations.
Certain Risks and Concentrations	'
	Certain Risks and Concentrations
	Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, marketable securities and accounts receivable. Cash equivalents generally consist of money market instruments and U.S. government notes. Marketable securities generally consist of equity and debt securities as well as a variety of mutual funds which primarily invest in government securities, debt, preferred stocks and equity securities.
	The Company places its cash and cash equivalents with high quality financial institutions and management believes the Company is not exposed to any significant risk on its cash accounts. The Company maintains accounts with various banks and brokerage organizations and constantly monitors the creditworthiness of these institutions. Cash accounts at each U.S. bank are insured by the FDIC up to $250 thousand in the aggregate and may exceed federally insured limits. Cash accounts at each Israeli bank are not insured. We have never experienced any losses related to these balances. At September 30, 2013, the Company had cash and cash equivalents totaling $53.0 million, which included (i) $52.8 million in U.S. banks, and (ii) $0.2 million in an Israeli financial institution.
	The Company's non-interest bearing cash balances in U.S. banks, which included $2.0 million in one individual financial institution, were fully insured, except for $0.4 million that exceed insurance limits at September 30, 2013. The Company had money market accounts with a financial institution with balances totaling approximately $50.7 million.
	Two telecommunication carriers accounted for approximately 22% and 14% of gross accounts receivable at September 30, 2013. One telecommunication carrier accounted for approximately 63% of gross accounts receivable at December 31, 2012, respectively. For the three and nine months ended September 30, 2013 and 2012, no telecommunication carrier accounted for more than 10% of the Company's total net revenues.
	One U.S. retail customer accounted for approximately 10% of gross accounts receivable at September 30, 2013. No other retail customer accounted for more than 10% of gross accounts receivable at September 30, 2013 and December 31, 2012. For the three and nine months ended September 30, 2013 and 2012, no retailer accounted for more than 10% of the Company's total net revenues.
Fair Value	'
	Fair Value
	GAAP 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 hierarchy is broken down into three levels based on the reliability of inputs as follows:
	Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities.
	Level 2 - Valuations based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
	Level 3 - Valuation based on inputs that are unobservable and significant to the overall fair value measurement.
	When available, the Company uses quoted market prices to determine fair value, and it classifies such measurements within Level 1. Fair value measurements are classified according to the lowest level input or value-driver that is significant to the valuation. Fair value includes the consideration of nonperformance risk. Nonperformance risk refers to the risk that an obligation (either by a counterparty or the Company) will not be fulfilled. For the Company's financial assets traded in an active market (Level 1), the nonperformance risk is included in the market price. The Company's assets and liabilities measured on a recurring basis at fair value may include marketable securities, securities sold, not yet purchased, and common equity put options in the Company's own stock. As of September 30, 2013 and December 31, 2012, all of them are Level 1 instruments, except for debt securities, which are level 2 instruments. The fair value of Level 2 securities is estimated based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The carrying amounts of the Company's financial instruments, including cash and cash equivalents, accounts payable and accrued expenses are expected to approximate fair value because of their immediate availability, near term maturities or potential interest payments at settlement.
	In connection with the Company's purchase of certain intangible assets during June 2011, the Company made payments of $1.5 million in May 2011, May 2012 and May 2013, respectively, and is required to make non-interest bearing annual future payments of $1.5 million for each of the next two years, beginning May 31, 2014. The liability for such payments has been discounted at a rate of 10% to a total fair value of $2.7 million and $3.9 million at September 30, 2013 and December 31, 2012, respectively, with $1.5 million included in accrued expenses and other current liabilities at September 30, 2013 and December 31, 2012, and $1.2 million and $2.4 million included in other non-current liabilities in the Company's September 30, 2013 and December 31, 2012 condensed consolidated balance sheets, respectively. The Company believes that the $2.7 million carrying value at September 30, 2013 approximates fair value based on observable market inputs other than quoted prices for similar traded debt securities, which are Level 2 instruments. The $0.3 million unamortized discount at September 30, 2013 is being amortized using the effective interest method and recorded as interest expense in the Company's condensed consolidated statements of operations.
	Any unrealized gains or losses related to put option contracts sold in connection with the Company's share repurchase program are recognized as fair value gains (losses) on common equity put options in the Company's condensed consolidated statements of operations. These liabilities are marked-to-market at the unadjusted quoted prices in active markets for identical assets, which are Level 1 inputs. As of September 30, 2013, there were no common equity put options outstanding. At December 31, 2012, outstanding common equity put options had a fair value of $2.2 million, which was included in accrued expenses and other current liabilities in the Company's condensed consolidated balance sheet.
Property, Equipment and Depreciation Expense	'
	Property, Equipment and Depreciation Expense
	Property and equipment consist primarily of servers, computer hardware, furniture, and leasehold improvements. Fixed assets, other than leasehold improvements, are stated at cost with depreciation provided using the straight-line method over the estimated useful lives of the related assets, which range from three to fifteen years. Leasehold improvements are stated at cost and amortized over the shorter of the term of the lease or useful life of the assets. The cost of substantial improvements is capitalized while the cost of maintenance and repairs are charged to operating expenses as incurred.
	The Company's hardware consists of routers, gateways and servers that enable the Company's telephony services. Some of these assets may be subject to technological risks and rapid market changes due to the introduction of new technology, products and services and changing customer demand. These changes may result in future adjustments to the estimated useful lives and the carrying value of these assets.
	Long-lived assets, such as property, plant and equipment, and purchased intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Management believes there is no impairment at September 30, 2013.
Goodwill	'
	Goodwill
	Goodwill represents the excess of the purchase price over the fair value of the identifiable net assets acquired. Goodwill and other intangible assets with indefinite lives are not amortized to operations, but instead are reviewed for impairment at least annually, or when there is an indicator of impairment. The Company is currently defined as one reporting unit.
	The goodwill impairment test is a two-step test. Under the first step, the fair value of the reporting unit is compared with its carrying value (including goodwill). Since the Company has negative carrying value, we apply the guidance in ASC No. 2010-28," Intangibles-Goodwill and Other (Topic 350): When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts," ("ASU 2010-28") to determine whether Step 2 is required. Accounting Standard Update ("ASU") 2010-28 modified current guidance such that Step 2 of the goodwill impairment test must be performed for reporting units with zero or negative carrying amounts if qualitative factors indicate that it is more likely than not that a goodwill impairment exists. Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit's goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit is determined using a discounted cash flow analysis. An impairment loss shall be recognized to the extent that the carrying amount of goodwill exceeds its implied fair value. It is Company's policy to conduct impairment testing based on its current business strategy in light of present industry and economic conditions, as well as its future expectations.
	The Company evaluates the carrying value of its goodwill annually or more frequently if impairment indicators arise. Indicators include, but are not limited to: sustained operating losses or a trend of poor operating performance and a decrease in the Company's market capitalization below its book value. The Company's valuation methodology for assessing impairment requires management to make judgments and assumptions based on historical experience and projections of future operating performance. If these assumptions differ materially from future results, the Company may record impairment charges in the future.
	In connection with the Company's annual goodwill impairment analysis, as of October 1, 2012, the annual measurement date, the Company's analysis did not indicate any impairment of goodwill has occurred. There were no goodwill impairment indicators as of September 30, 2013.
Income Taxes	'
	Income Taxes
	The Company recognizes deferred tax assets and liabilities for the expected tax consequences of temporary differences between the tax basis of assets and liabilities and their book basis using enacted tax rates.  Any changes in enacted rates or tax laws are included in the provision for income taxes in the period of enactment. The Company's net deferred tax assets consist of primarily foreign net operating loss carryforwards and timing differences between recognition of income for book and tax purposes. The Company records a valuation allowance to reduce the net deferred tax assets to the amount that it estimates is more-likely-than-not to be realized. At December 31, 2012, the Company, based on cumulative profitability over the preceding three years and expected 2013 results, released $10.9 million of the valuation allowance recorded against its net deferred tax assets and determined that a remaining valuation allowance of $55.4 million was necessary to reduce the net deferred tax assets to the amount that will more likely than not be realized. The Company periodically reviews the composition of its net deferred tax assets and related valuation allowances and will make adjustments if available evidence indicates that it is more likely than not a change in the carrying amounts is required. No adjustments were made during the three and nine months ended September 30, 2013.
	The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon its evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where there is greater than 50% likelihood that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is 50% or less likelihood that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements.
	The Company records its income tax expense for interim financial statements by using an estimated annual effective income tax rate based on its expected annual results after elimination of nontaxable items. The tax benefits of net operating loss carryforwards expected to be realized through 2013 and certain other deferred tax assets were recognized for financial reporting purposes at December 31, 2012. At September 30, 2013, the estimated annual effective tax rate is expected to approximately 32.9%, which includes state and local taxes. This rate may fluctuate in the future if we are able to realize additional tax benefits or utilize available tax strategies, as well as due to the timing of other discrete period transactions during the remainder of the year.
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements
	In February 2013, the Financial Accounting Standards Board issued ASU No. 2013-02, Reporting Amounts Reclassified Out of Accumulated Other Comprehensive Income ("ASU 2013-02"). ASU 2013-02 requires an entity to present, either on the face of the statement where net income is presented or in the notes to the financial statements, significant amounts reclassified out of accumulated other comprehensive income (loss) by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. Amounts that are not required to be reclassified in their entirety to net income must be cross-referenced to other disclosures that provide additional detail. This guidance was effective on a prospective basis for the annual and interim reporting periods for the Company beginning January 1, 2013. The Company's adoption of this standard did not have a significant impact on its consolidated financial statements. The Company's accumulated other comprehensive loss is comprised of one item pertaining to the Company's unrealized gains and losses on marketable securities. Reclassification of the gains or losses occurs when the specific investments are sold.

MARKETABLE_SECURITIES_Tables

MARKETABLE SECURITIES (Tables)	9 Months Ended
	Sep. 30, 2013
MARKETABLE SECURITIES [Abstract]	'
Schedule of Available-for-Sale Securities	'
	As of September 30, 2013 and December 31, 2012, the available-for-sale securities consisted primarily of debt and equity securities, which are invested in the following (in thousands):
		September 30, 2013 (Unaudited)
		Fair		Unrealized		Unrealized
		Value		Gains		Losses
	Common equity securities	$	7,151	$	-	$	(1,905	)
		31-Dec-12
		Fair		Unrealized		Unrealized
		Value		Gains		Losses
	Common equity securities	$	7,983	$	-	$	(1,074	)
	Debt securities		11,407		-		(420	)
	Total	$	19,390	$	-	$	(1,494	)

INVENTORIES_Tables

INVENTORIES (Tables)	9 Months Ended
	Sep. 30, 2013
INVENTORIES [Abstract]	'
Schedule of Inventories	'
	Inventories are comprised of the following (in thousands):
		September 30,		December 31,
		2013		2012
		(Unaudited)
	Raw materials	$	1,462	$	3,009
	Finished goods		3,103		2,331
	Total	$	4,565	$	5,340

PROPERTY_AND_EQUIPMENT_Tables

PROPERTY AND EQUIPMENT (Tables)	9 Months Ended
	Sep. 30, 2013
PROPERTY AND EQUIPMENT [Abstract]	'
Schedule of Property and Equipment	'
	Property and equipment are summarized as follows (in thousands):
		Estimated
		Useful Lives		September 30,			December 31,
		(in years)		2013			2012
				(Unaudited)
	Switches		15-Mar	$	7,099		$	7,099
	Computers		3		2,278			2,194
	Furniture		5		160			173
	Leasehold-improvements		*		227			227
	Accumulated depreciation
	and amortization				(7,691	)		(7,345	)
	Total			$	2,073		$	2,348

INTANGIBLES_ASSETS_Tables

INTANGIBLES ASSETS (Tables)	9 Months Ended
	Sep. 30, 2013
INTANGIBLES ASSETS [Abstract]	'
Schedule of Finite-Lived Intangible Assets	'
	Identified intangible assets with finite lives subject to amortization consist of the following (in thousands):
		Estimated		September 30, 2013 (Unaudited)									31-Dec-12
		Useful
		Lives		Gross Carrying		Accumulated					Weighted-		Gross Carrying		Accumulated					Weighted-
		(in years)		Amount		Amortization			Net		Average Life		Amount		Amortization			Net		Average Life
	Technology		17-Mar	$	5,221	$	(4,168	)	$	1,053		6.39	$	5,221	$	(3,735	)	$	1,486		6.69
	Intellectual property rights		17-Mar		14,161		(4,653	)		9,508		4.37		14,161		(2,772	)		11,389		4.91
	Covenant not-to-sue		5		2,085		(973	)		1,112		2.67		2,085		(660	)		1,425		3.42
	Tradename		6-Mar		321		(268	)		53		2.25		321		(250	)		71		3
	Customer relationships		7-May		750		(555	)		195		3.83		750		(464	)		286		4.55
	Backlog		1		800		(800	)		-		-		800		(800	)		-		-
	Total			$	23,338	$	(11,417	)	$	11,921			$	23,338	$	(8,681	)	$	14,657
Schedule of Future Amortization Expense	'
	Based on the carrying value of identified intangible assets recorded at September 30, 2013, and assuming no subsequent impairment of the underlying assets, the amortization expense for the future fiscal years is expected to be as follows (in thousands):
	Fiscal Year	Amortization
		Expense
	Three months ending December 31, 2013	$	848
	2014		3,252
	2015		2,624
	2016		1,565
	2017		1,331
	Thereafter		2,301
		$	11,921

DEFERRED_COSTS_AND_REVENUES_Ta

DEFERRED COSTS AND REVENUES (Tables)	9 Months Ended
	Sep. 30, 2013
DEFERRED COSTS AND REVENUES [Abstract]	'
Schedule of Deferred Revenue	'
	Deferred revenues are comprised of the following at September 30, 2013 and December 31, 2012 (in thousands):
		September 30,		December 31,
		2013		2012
	magicJack devices	$	25,122	$	31,481
	Access right renewals		37,678		32,969
	Prepaid minutes		2,567		2,588
	Deferred revenue, current		65,367		67,038
	Deferred revenue, non-current*		57,489		58,165
	Total deferred revenues	$	122,856	$	125,203
	* Deferred revenues, non-current, is comprised entirely of deferred revenues originating from the sale of access right renewals.

ORDINARY_SHARES_TREASURY_STOCK1

ORDINARY SHARES, TREASURY STOCK AND FAIR VALUE (LOSS) GAIN ON COMMON EQUITY PUT OPTIONS (Tables)	9 Months Ended
	Sep. 30, 2013
ORDINARY SHARES, TREASURY STOCK AND FAIR VALUE (LOSS) GAIN ON COMMON EQUITY PUT OPTIONS [Abstract]	'
Schedule of Changes in Treasury Stock	'
	The changes in treasury stock during the nine months ended September 30, 2013 are as follows (in thousands, except for number of shares):
		Nine Months Ended
		30-Sep-13
		Number			Amount
		(Unaudited)
	Balance, beginning of period		6,018,246		$	93,541
	Ordinary shares purchased through
	the stock repurchase program		190,000			2,453
	Treasury stock issued to settle liability		(32,129	)		(499	)
	Balance, end of period		6,176,117		$	95,495

SHAREBASED_COMPENSATION_Tables

SHARE-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2013
SHARE-BASED COMPENSATION [Abstract]	'
Schedule of Share-Based Compensation Activity	'
	The following table provides additional information regarding ordinary share options issued, outstanding and exercisable for year ended December 31, 2012 and nine months September 30, 2013 (aggregate intrinsic value in thousands):
							Weighted
							Average
					Weighted		Remaining
					Average		Contractual		Aggregate
		Number of			Exercise		Term		Intrinsic
	Date of Grant	Options			Price		(in years)		Value *
	1-Jan-12		290,232		$	4.86		1.66	$	2,554
	Granted		-		$	-
	Exercised		(270,088	)	$	4.54
	Expired or cancelled		(8,644	)	$	16.17
	31-Dec-12		11,500		$	3.85		7.13	$	165
	Granted		1,018,813		$	15.73
	Exercised		(900	)	$	0.45
	Expired or cancelled		-		$	-
	30-Sep-13		1,029,413		$	15.61		4.49	$	(2,821	)
	Vested at September 30, 2013		10,350		$	4.13		3.4	$	90
	* The aggregate intrinsic value is the difference between the estimated market value for the Company's common stock and the exercise price of the outstanding stock options.

INCOME_TAXES_Tables

INCOME TAXES (Tables)	9 Months Ended
	Sep. 30, 2013
INCOME TAXES [Abstract]	'
Schedule of Effective Income Tax Rate	'
	Income taxes for the three and nine months ended September 30, 2013 and 2012 are the following (in thousands):
		Three Months Ended						Nine Months Ended
		September 30						30-Sep
		2013			2012			2013			2012
	Income before taxes	$	12,646		$	15,145		$	37,254		$	33,660
	Income tax expense		3,743			29			12,257			78
	Effective income tax rate		29.6	%		0.19	%		32.9	%		0.23	%

INCOME_PER_SHARE_Tables

INCOME PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2013
INCOME PER SHARE [Abstract]	'
Schedule of Computation of Net Income Per Share	'
	Potentially dilutive securities, using the treasury stock method are set forth in the following table, which presents the computation of basic and diluted net income per ordinary share attributable to shareholders (in thousands, except for per share information):
		Three Months Ended September 30,				Nine Months Ended September 30,
		2013		2012		2013		2012
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
	Numerator:
	Net income	$	8,903	$	15,116	$	24,997	$	33,582
	Denominator:
	Denominator for basic net income per share - weighted
	average ordinary shares outstanding		18,552		19,407		18,596		20,234
	Effect of dilutive options to purchase ordinary shares		8		11		8		10
	Effect of dilutive options exercised or expired during the year		-		3		-		64
	Effect of dilutive common equity put options outstanding		-		86		-		139
	Denominator for diluted net income per share - weighted
	average ordinary shares outstanding		18,560		19,507		18,604		20,447
	Net income per ordinary share attributable to shareholders
	Basic	$	0.48	$	0.78	$	1.34	$	1.66
	Diluted	$	0.48	$	0.77	$	1.34	$	1.64

DESCRIPTION_OF_BUSINESS_AND_BA1

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
International Prepaid Minutes [Member]	'	'	'	'
Deferred Revenue Arrangement [Line Items]	'	'	'	'
Deferred revenue recognized during period	'	'	$3,000	'
Effect of recognition of revenue on diluted EPS	'	'	$0.15	'
Magicjack Product Line [Member]	'	'	'	'
Product Information [Line Items]	'	'	'	'
Revenues	30,900	35,100	91,300	97,300
Prepaid Minutes [Member]	'	'	'	'
Product Information [Line Items]	'	'	'	'
Revenues	$3,200	$3,300	$9,600	$12,200

SUMMARY_OF_ACCOUNTING_POLICIES2

SUMMARY OF ACCOUNTING POLICIES (Details) (USD $)	1 Months Ended			3 Months Ended		9 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	31-May-13	31-May-12	31-May-11	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	Dec. 31, 2011
SUMMARY OF ACCOUNTING POLICIES [Abstract]	'	'	'	'	'	'	'	'	'
Allowance for billing adjustments	'	'	'	$400	$1,500	$2,400	$5,700	'	'
Cost of Revenues	'	'	'	'	'	'	'	'	'
Shipping and handling and credit card charges	'	'	'	1,500	900	4,000	4,300	'	'
Certain Risks and Concentrations	'	'	'	'	'	'	'	'	'
Cash and cash equivalents	'	'	'	53,017	25,383	53,017	25,383	18,959	12,961
Insured cash balance	'	'	'	250	'	250	'	'	'
Fair Value	'	'	'	'	'	'	'	'	'
Fair value of put options	'	'	'	'	'	'	'	2,200	'
Payment for intangible assets	1,500	1,500	1,500	'	'	117	5,732	'	'
Future payment amount for intangible assets	'	'	'	'	'	1,500	'	'	'
Intangible asset, fair value	'	'	'	2,700	'	2,700	'	3,900	'
Fair value of noncurrent liabilities	'	'	'	1,200	'	1,200	'	2,400	'
Unamortized discount	'	'	'	300	'	300	'	'	'
Valuation allowance released	'	'	'	'	'	'	'	10,900	'
Deferred tax assets, valuation allowance	'	'	'	'	'	'	'	55,400	'
Effective income tax rate	'	'	'	29.60%	0.19%	32.90%	0.23%	'	'
Minimum [Member]	'	'	'	'	'	'	'	'	'
Property, Plant and Equipment [Line Items]	'	'	'	'	'	'	'	'	'
Property and equipment, estimated useful lives	'	'	'	'	'	'3 years	'	'	'
Maximum [Member]	'	'	'	'	'	'	'	'	'
Property, Plant and Equipment [Line Items]	'	'	'	'	'	'	'	'	'
Property and equipment, estimated useful lives	'	'	'	'	'	'15 years	'	'	'
Single Financial Institution, Concentration Risk [Member]	'	'	'	'	'	'	'	'	'
Certain Risks and Concentrations	'	'	'	'	'	'	'	'	'
Cash and cash equivalents	'	'	'	2,000	'	2,000	'	'	'
Total cash balance not insured by the FDIC	'	'	'	400	'	400	'	'	'
Money market accounts	'	'	'	50,700	'	50,700	'	'	'
Accounts Receivable [Member]	'	'	'	'	'	'	'	'	'
Certain Risks and Concentrations	'	'	'	'	'	'	'	'	'
Percentage of concentration risk	'	'	'	'	'	14.00%	'	63.00%	'
Telecommunications Carrier One [Member]	'	'	'	'	'	'	'	'	'
Certain Risks and Concentrations	'	'	'	'	'	'	'	'	'
Percentage of concentration risk	'	'	'	'	'	22.00%	'	'	'
United States [Member]	'	'	'	'	'	'	'	'	'
Certain Risks and Concentrations	'	'	'	'	'	'	'	'	'
Cash and cash equivalents	'	'	'	52,800	'	52,800	'	'	'
Percentage of concentration risk	'	'	'	'	'	10.00%	'	'	'
Israel [Member]	'	'	'	'	'	'	'	'	'
Certain Risks and Concentrations	'	'	'	'	'	'	'	'	'
Cash and cash equivalents	'	'	'	$200	'	$200	'	'	'

MARKETABLE_SECURITIES_Details

MARKETABLE SECURITIES (Details) (USD $)	3 Months Ended		9 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]	'	'	'	'	'
Fair Value	'	'	'	'	$19,390
Unrealized Gains	'	'	'	'	'
Unrealized Losses	'	'	'	'	-1,494
Gains on investments	'	508	722	1,340	'
Reclassification of unrealized loss on marketable securities to realized gain on investments	'	'	-420	-539	'
Common Equity Securities [Member]	'	'	'	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'	'	'	'
Fair Value	7,151	'	7,151	'	7,983
Unrealized Gains	'	'	'	'	'
Unrealized Losses	'	'	-1,905	'	-1,074
Debt Securities [Member]	'	'	'	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'	'	'	'
Fair Value	'	'	'	'	11,407
Unrealized Gains	'	'	'	'	'
Unrealized Losses	'	'	'	'	($420)

INVENTORIES_Details

INVENTORIES (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2012	Sep. 30, 2013
INVENTORIES [Abstract]	'	'
Raw materials	$3,009	$1,462
Finished goods	2,331	3,103
Total	5,340	4,565
Write-down of obsolete inventory	$3,500	'

PROPERTY_AND_EQUIPMENT_Details

PROPERTY AND EQUIPMENT (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013		Sep. 30, 2012	Dec. 31, 2012
Property, Plant and Equipment [Line Items]	'		'	'
Accumulated depreciation and amortization	($7,691)		'	($7,345)
Property and equipment, net	2,073		'	2,348
Depreciation expense	100		400	'
Minimum [Member]	'		'	'
Property, Plant and Equipment [Line Items]	'		'	'
Estimated useful life	'3 years		'	'
Maximum [Member]	'		'	'
Property, Plant and Equipment [Line Items]	'		'	'
Estimated useful life	'15 years		'	'
Switches [Member]	'		'	'
Property, Plant and Equipment [Line Items]	'		'	'
Property and equipment, gross	7,099		'	7,099
Switches [Member] | Minimum [Member]	'		'	'
Property, Plant and Equipment [Line Items]	'		'	'
Estimated useful life	'3 years		'	'
Switches [Member] | Maximum [Member]	'		'	'
Property, Plant and Equipment [Line Items]	'		'	'
Estimated useful life	'15 years		'	'
Computers [Member]	'		'	'
Property, Plant and Equipment [Line Items]	'		'	'
Estimated useful life	'3 years		'	'
Property and equipment, gross	2,278		'	2,194
Furniture [Member]	'		'	'
Property, Plant and Equipment [Line Items]	'		'	'
Estimated useful life	'5 years		'	'
Property and equipment, gross	160		'	173
Leasehold-improvements [Member]	'		'	'
Property, Plant and Equipment [Line Items]	'		'	'
Estimated useful life	'	[1]	'	'
Property and equipment, gross	$227		'	$227
[1]	The estimated useful life for leasehold improvements is the shorter of the term of the lease or life of the asset.

INTANGIBLES_ASSETS_Details

INTANGIBLES ASSETS (Details) (USD $)

3 Months Ended

9 Months Ended

9 Months Ended

12 Months Ended

9 Months Ended

12 Months Ended

9 Months Ended

12 Months Ended

9 Months Ended

12 Months Ended

9 Months Ended

12 Months Ended

9 Months Ended

In Thousands, unless otherwise specified

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Dec. 31, 2012

Technology [Member]

Technology [Member]

Technology [Member]

Technology [Member]

Intellectual Property [Member]

Intellectual Property [Member]

Intellectual Property [Member]

Intellectual Property [Member]

Covenant Not-to-Sue [Member]

Covenant Not-to-Sue [Member]

Tradename [Member]

Tradename [Member]

Tradename [Member]

Tradename [Member]

Customer Relationships [Member]

Customer Relationships [Member]

Customer Relationships [Member]

Customer Relationships [Member]

Backlog [Member]

Backlog [Member]

Minimum [Member]

Maximum [Member]

Minimum [Member]

Maximum [Member]

Minimum [Member]

Maximum [Member]

Minimum [Member]

Maximum [Member]

INTANGIBLES ASSETS [Abstract]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Intangible assets, net

$13,116

'

$13,116

'

$16,136

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Indefinite lived intangible assets

1,200

'

1,200

'

1,500

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Finite-Lived Intangible Assets [Line Items]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Estimated useful life

'

'

'

'

'

'

'

'3 years

'17 years

'

'

'3 years

'17 years

'5 years

'

'

'

'3 years

'6 years

'

'

'5 years

'7 years

'1 year

'

Gross Carrying Amount

23,338

'

23,338

'

23,338

5,221

5,221

'

'

14,161

14,161

'

'

2,085

2,085

321

321

'

'

750

750

'

'

800

800

Accumulated Amortization

-11,417

'

-11,417

'

-8,681

-4,168

-3,735

'

'

-4,653

-2,772

'

'

-973

-660

-268

-250

'

'

-555

-464

'

'

-800

-800

Net

11,921

'

11,921

'

14,657

1,053

1,486

'

'

9,508

11,389

'

'

1,112

1,425

53

71

'

'

195

286

'

'

'

'

Weighted-Average Life

'

'

'

'

'

'6 years 4 months 21 days

'6 years 8 months 3 days

'

'

'4 years 4 months 19 days

'4 years 10 months 28 days

'

'

'2 years 8 months

'3 years 4 months 27 days

'2 years 3 months

'3 years

'

'

'3 years 10 months

'4 years 6 months 10 days

'

'

'

'

Asset impairment charges

400

'

'

'

'

200

'

'

'

'

'

'

'

'

'

'

'

'

'

200

'

'

'

'

'

Amortization expense

$800

$800

$3,100

$1,700

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

INTANGIBLES_ASSETS_Schedule_of

INTANGIBLES ASSETS (Schedule of Future Amortization Expense) (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
INTANGIBLES ASSETS [Abstract]	'	'
Three months ending December 31, 2013	$848	'
2014	3,252	'
2015	2,624	'
2016	1,565	'
2017	1,331	'
Thereafter	2,301	'
Net	$11,921	$14,657

DEFERRED_COSTS_AND_REVENUES_De

DEFERRED COSTS AND REVENUES (Details) (USD $)	3 Months Ended			9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013		Sep. 30, 2012	Sep. 30, 2013		Sep. 30, 2012	Dec. 31, 2012
Deferred Revenue Arrangement [Line Items]	'		'	'		'	'
Deferred revenue, current portion	$65,367		'	$65,367		'	$67,038
Deferred revenue, net of current portion	57,489	[1]	'	57,489	[1]	'	58,165	[1]
Total deferred revenues	122,856	[1]	'	122,856	[1]	'	125,203	[1]
Costs incurred to fulfill obligations	5,200		7,200	16,500		21,800	'
Magicjack Product Line [Member]	'		'	'		'	'
Deferred Revenue Arrangement [Line Items]	'		'	'		'	'
Deferred revenue, current portion	25,122		'	25,122		'	31,481
Access Right Renewals [Member]	'		'	'		'	'
Deferred Revenue Arrangement [Line Items]	'		'	'		'	'
Deferred revenue, current portion	37,678		'	37,678		'	32,969
Prepaid Minutes [Member]	'		'	'		'	'
Deferred Revenue Arrangement [Line Items]	'		'	'		'	'
Deferred revenue, current portion	$2,567		'	$2,567		'	$2,588
[1]	Deferred revenues, non-current, is comprised entirely of deferred revenues originating from the sale of access right renewals.

OTHER_LIABILITIES_Details

OTHER LIABILITIES (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Recorded Unconditional Purchase Obligation [Line Items]	'	'
Annual payment made during the current year for intangible asset purchase	$1,500	'
Present value of liability	2,700	3,900
Discount rate	10.00%	'
Current portion of debt	$1,500	$1,500

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Details) (USD $)	1 Months Ended
	29-May-13	Sep. 30, 2013	Sep. 30, 2013
		Minimum [Member]	Maximum [Member]
Loss Contingencies [Line Items]	'	'	'
Damages being sought	$5,900,000	'	'
Additional potential liability	'	$0	$2,500,000

ORDINARY_SHARES_TREASURY_STOCK2

ORDINARY SHARES, TREASURY STOCK AND FAIR VALUE (LOSS) GAIN ON COMMON EQUITY PUT OPTIONS (Details) (USD $)	0 Months Ended	1 Months Ended			9 Months Ended
In Thousands, except Share data, unless otherwise specified	Nov. 06, 2013	Jun. 30, 2012	Apr. 30, 2012	Jan. 31, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Equity, Class of Treasury Stock [Line Items]	'	'	'	'	'	'	'
Stock repurchase plan, authorized amount	'	'	'	$55,000	$100,000	'	'
Increase in authorized amount	'	25,000	20,000	20,000	'	'	'
The total amount expended under the stock repurchase program since inception of the program	'	'	'	'	91,300	'	'
Available funds to purchase ordinary shares	'	'	'	'	8,700	'	'
Option Indexed to Issuer's Equity [Line Items]	'	'	'	'	'	'	'
Shares issued for services rendered	'	'	'	'	10,000	'	'
Common stock issued for services, value	'	'	'	'	200	'	'
Stock issued for purchase of asset, shares	'	'	'	'	21,564	'	'
Stock issued for purchase of asset	'	'	'	'	400	'	'
Stock issued for sponsorships, shares	'	'	'	'	19,350	'	'
Stock issued for sponsorships	'	'	'	'	400	'	'
Stock issued for purchase of intangible assets, shares	'	'	'	'	62,563	'	'
Stock issued for the purchase of intangible assets	'	'	'	'	1,300	'	'
Proceeds from sale of common equity put options	'	'	'	'	'	11,722	'
Fair value of put options	'	'	'	'	'	'	2,200
Net cost of treasury stock	'	'	'	'	500	'	'
Price per share of treasury stock reissued	'	'	'	'	$15.54	'	'
Number	'	'	'	'	'	'	'
Balance, beginning of period	'	'	'	'	6,018,246	'	'
Ordinary shares purchased through the stock repurchase program	'	'	'	'	190,000	'	'
Treasury stock issued to settle liability	'	'	'	'	-32,129	'	'
Balance, end of period	'	'	'	'	6,176,117	'	'
Amount	'	'	'	'	'	'	'
Balance, beginning of period	'	'	'	'	93,541	'	'
Ordinary shares purchased through the stock repurchase program	'	'	'	'	2,453	'	'
Treasury stock issued to settle liabilities	'	'	'	'	-499	'	'
Balance, end of period	'	'	'	'	95,495	'	'
Number of shares repurchased	'	'	'	'	190,000	2,362,949	'
Value of common stock shares repurchased in the open market	13,000	'	'	'	3,300	42,400	'
Common stock price per share	'	'	'	'	$17.27	$17.95	'
Other Share Repurchases [Member]	'	'	'	'	'	'	'
Option Indexed to Issuer's Equity [Line Items]	'	'	'	'	'	'	'
Net cost of treasury stock	'	'	'	'	$400	'	'
Price per share of treasury stock reissued	'	'	'	'	$12.45	'	'

SHAREBASED_COMPENSATION_Detail

SHARE-BASED COMPENSATION (Details) (USD $)	3 Months Ended			9 Months Ended			12 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013		Sep. 30, 2012	Sep. 30, 2013		Sep. 30, 2012	Dec. 31, 2012	Dec. 31, 2011
Number of Options	'		'	'		'	'	'
Beginning Balance	'		'	11,500		290,232	290,232	'
Granted	'		'	1,018,813		'	'	'
Exercised	'		'	-900		'	-270,088	'
Expired or cancelled	'		'	'		'	-8,644	'
Ending Balance	1,029,413		'	1,029,413		'	11,500	290,232
Vested at September 30, 2013	10,350		'	10,350		'	'	'
Weighted Average Exercise Price	'		'	'		'	'	'
Beginning Balance	'		'	$3.85		$4.86	$4.86	'
Granted	'		'	$15.73		'	'	'
Exercised	'		'	$0.45		'	$4.54	'
Expired or cancelled	'		'	'		'	$16.17	'
Ending Balance	$15.61		'	$15.61		'	$3.85	$4.86
Vested at September 30, 2013	$4.13		'	$4.13		'	'	'
Weighed Average Contractual Term (in years)	'		'	'		'	'	'
Outstanding term	'		'	'4 years 5 months 30 days		'	'7 years 1 month 16 days	'1 year 8 months
Vested at September 30, 2013	'		'	'3 years 4 months 20 days		'	'	'
Aggregate Intrinsic Value	'		'	'		'	'	'
Aggregate intrinsic value	($2,821)	[1]	'	($2,821)	[1]	'	$165	$2,554	[1]
Vested at September 30, 2013	90	[1]	'	90	[1]	'	'	'
Compensation expense	1,200		'	1,200		200	'	'
Total intrinsic value of options exercised during the period	'		'	12		'	3,800	'
Unrecognized compensation expense	$9,300		'	$9,300		'	'	'
[1]	The aggregate intrinsic value is the difference between the estimated market value for the Company's common stock and the exercise price of the outstanding stock options.

INCOME_TAXES_Details

INCOME TAXES (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
INCOME TAXES [Abstract]	'	'	'	'
Income before taxes	$12,646	$15,145	$37,254	$33,660
Income tax expense	$3,743	$29	$12,257	$78
Effective income tax rate	29.60%	0.19%	32.90%	0.23%

INCOME_PER_SHARE_Details

INCOME PER SHARE (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
INCOME PER SHARE [Abstract]	'	'	'	'
Net income attributable to shareholders	$8,903	$15,116	$24,997	$33,582
Denominator for basic net income per share - weighted average ordinary shares outstanding	18,552	19,407	18,596	20,234
Effect of dilutive options to purchase ordinary shares	8	11	8	10
Effect of dilutive options exercised or expired during the year	'	3	'	64
Effect of dilutive common equity put options outstanding	'	86	'	139
Denominator for diluted net income per share - weighted average ordinary shares outstanding	18,560	19,507	18,604	20,447
Basic	$0.48	$0.78	$1.34	$1.66
Diluted	$0.48	$0.77	$1.34	$1.64

SUBSEQUENT_EVENTS_Details

SUBSEQUENT EVENTS (Details) (USD $)	0 Months Ended	9 Months Ended
In Thousands, except Share data, unless otherwise specified	Nov. 06, 2013	Sep. 30, 2013	Sep. 30, 2012	Dec. 20, 2013
SUBSEQUENT EVENTS [Abstract]	'	'	'	'
Quarterly retainer	'	$500,000	'	'
Stock issued for CEO obligations	300,000	'	'	'
Amount of stock repurchased	13,000	3,300	42,400	'
Payment amount if agreement terms are not met	'	'	'	$1,500