magicJack VocalTec (CALL) 10-Q 12 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014	Apr. 30, 2014
Document And Entity Information [Abstract]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	31-Mar-14	'
Entity Registrant Name	'MAGICJACK VOCALTEC LTD	'
Entity Central Index Key	'0001005699	'
Current Fiscal Year End Date	'--12-31	'
Document Fiscal Period Focus	'Q1	'
Document Fiscal Year Focus	'2014	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	17,832,130

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2014		Dec. 31, 2013
In Thousands, unless otherwise specified
Current assets:	'		'
Cash and cash equivalents	$58,843		$45,997
Marketable securities, at fair value	8,418		8,782
Accounts receivable, net of allowance for doubtful accounts and billing adjustments of $4,026 and $3,912, respectively	4,812		3,626
Inventories	3,385		4,490
Deferred costs	3,309		4,662
Prepaid income taxes	10,373		11,956
Deferred tax assets, current	10,621		11,267
Deposits and other current assets	756		818
Total current assets	100,517		91,598
Property and equipment, net	3,252		1,959
Intangible assets, net	14,381		15,656
Goodwill	32,304		32,304
Deferred tax assets, non-current	29,684		29,684
Deposits and other non-current assets	712		693
Total assets	180,850		171,894
Current liabilities:	'		'
Accounts payable	5,287		4,237
Accrued expenses and other current liabilities	8,493		9,236
Deferred revenue, current portion	58,598		54,541
Total current liabilities	72,378		68,014
Deferred revenue, net of current portion	56,329	[1]	59,951	[1]
Other non-current liabilities	7,061		6,487
Total liabilities	135,768		134,452
Commitments and contingencies (Note 9)	'		'
Capital equity:	'		'
Ordinary shares, No par value; 100,000 shares authorized; 25,031 and 25,029 shares issued at March 31, 2014 and December 31, 2013, respectively	111,760		111,744
Additional paid-in capital	6,336		3,692
Accumulated other comprehensive loss	-1,006		-642
Treasury stock, at cost (7,200 and 7,202 shares at March 31, 2014 and December 31, 2013, respectively)	-108,126		-108,151
Retained earnings	36,118		30,799
Total capital equity	45,082		37,442
Total liabilities and capital equity	$180,850		$171,894
[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 $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, except Share data, unless otherwise specified
CONDENSED CONSOLIDATED BALANCE SHEETS [Abstract]	'	'
Allowance for doubtful accounts and billing adjustments	$4,026	$3,912
Ordinary shares, shares authorized	100,000,000	100,000,000
Ordinary shares, no par value	$0	$0
Ordinary shares, shares issued	25,031,000	25,029,000
Treasury stock, shares	7,200,227	7,202,242

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract]	'	'
Net revenues	$35,313	$36,877
Cost of revenues	13,022	11,143
Gross profit	22,291	25,734
Operating expenses:	'	'
Advertising	4,296	2,814
General and administrative	8,650	6,818
Research and development	1,744	862
Total operating expenses	14,690	10,494
Operating income	7,601	15,240
Other income (expense):	'	'
Gains on investments	'	527
Interest and dividend income	46	156
Interest expense	-65	-93
Fair value loss on common equity put options	'	-1,047
Other income, net	1	1
Total other expense	-18	-456
Income before income taxes	7,583	14,784
Income tax expense	2,264	5,198
Net income	$5,319	$9,586
Income per ordinary share:	'	'
Basic	$0.30	$0.51
Diluted	$0.30	$0.51
Weighted average ordinary shares outstanding:	'	'
Basic	17,827	18,685
Diluted	17,830	18,694

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]	'	'
Net income	$5,319	$9,586
Other comprehensive income (loss):	'	'
Reclassification of unrealized loss on marketable securities to gain on investments	'	362
Net unrealized loss on marketable securities	-364	-1,081
Comprehensive income	$4,955	$8,867

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENT OF CAPITAL EQUITY (USD $)	Total	Ordinary Shares [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Loss [Member]	Treasury Stock [Member]	Retained Earnings [Member]
In Thousands, except Share data
Balance at Dec. 31, 2013	$37,442	$111,744	$3,692	($642)	($108,151)	$30,799
Balance, shares at Dec. 31, 2013	'	25,029,000	'	'	-7,202,000	'
Exercise of ordinary options	16	16	'	'	'	'
Exercise of ordinary options, shares	1,990	2,000	'	'	'	'
Share-based compensation	2,669	'	2,669	'	'	'
Issuance of ordinary shares	'	'	-25	'	25	'
Issuance of ordinary shares, shares	'	'	'	'	2,000	'
Unrealized loss on marketable securities	-364	'	'	-364	'	'
Net income	5,319	'	'	'	'	5,319
Balance at Mar. 31, 2014	$45,082	$111,760	$6,336	($1,006)	($108,126)	$36,118
Balance, shares at Mar. 31, 2014	'	25,031,000	'	'	-7,200,000	'

CONDENSED_CONSOLIDATED_STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities:	'	'
Net income	$5,319	$9,586
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Provision for doubtful accounts and billing adjustments	114	1,237
Share-based issuances and compensation	2,669	400
Depreciation and amortization	1,391	1,163
Deferred income tax provision	646	23
Interest expense - non-cash	65	93
Gain on investments	'	-527
Fair value loss on common equity put options	'	1,047
Change in operating assets and liabilities	'	'
Accounts receivable	-1,300	-268
Inventories	1,105	198
Deferred costs	1,353	-104
Deposits and other current assets	1,627	454
Deposits and other non-current assets	-19	17
Accounts payable	1,001	4,107
Accrued expenses and other current liabilities	-725	-3,568
Deferred revenue	435	2,769
Other non-current liabilities	509	-1
Net cash provided by operating activities	14,190	16,626
Cash flows from investing activities:	'	'
Proceeds from sales of investments	'	10,564
Purchases of property and equipment	-1,360	-84
Acquisition of intangible assets	'	-114
Net cash (used in) provided by investing activities	-1,360	10,366
Cash flows from financing activities:	'	'
Purchase of treasury stock	'	-5,704
Proceeds from exercise of ordinary share options	16	'
Net cash provided by (used in) financing activities	16	-5,704
Net increase in cash and cash equivalents	12,846	21,288
Cash and cash equivalents, beginning of period	45,997	18,959
Cash and cash equivalents, end of period	58,843	40,247
Supplemental disclosures:	'	'
Interest paid	'	'
Income taxes paid	5	1,913
Non-cash investing and financing activities:	'	'
Property and equipment (acquired but not paid)	$49	'

DESCRIPTION_OF_BUSINESS_AND_BA

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2014
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 customers 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 an updated magicJack device 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 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 Jerusalem, 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-X. 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, 2013. 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 statement of operations in the period they occur.
	The Company prepares its unaudited condensed consolidated financial statements on the basis of being a single reporting entity. Approximately 90% of the Company's revenues in the three months ended March 31, 2014 and 2013 were from sales to customers located in the United States. The majority of the Company's revenues recognized were generated from sales of the magicJack product line and from the software access right that accompanies these products, which were $30.8 million and $32.1 million for the three months ended March 31, 2014 and 2013, respectively. The Company also provides its customers the ability to make prepaid calls using the magicJack devices and magicJack APP by purchasing prepaid minutes. Revenues generated from the usage of prepaid minutes were $2.8 million and $3.2 million for the three months ended March 31, 2014 and 2013, respectively.
	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 months ended March 31, 2014 may not be indicative of the results for the entire year ending December 31, 2014. The interim unaudited condensed consolidated financial statements should be read in conjunction with the Company's 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, 2013 filed on March 12, 2014.

SUMMARY_OF_ACCOUNTING_POLICIES

SUMMARY OF ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2014
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 revenue and expenses during the reporting period. Such estimates and judgments are revised periodically as required. Actual results could differ from those estimates. Significant estimates include allowances for billing adjustments and doubtful accounts, the recoverability of long-lived assets and goodwill, income taxes, income tax valuation allowance, uncertain tax liabilities, the value of ordinary shares issued in asset acquisitions, business combinations or underlying the Company's ordinary share options, 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 domestic and international 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 the 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 months ended March 31, 2014 and 2013, the Company's estimates of returns and actual returns from initial stocking orders have not been materially different.
	Prepaid Minutes and Access and Wholesale Charges
	Revenue from prepaid minutes and access and wholesale charges are recognized as minutes are used. These revenues are generated from the usage of prepaid minutes, fees for origination of calls to 800-numbers, 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, less a provision for billing adjustments of $19 thousand and $1.2 million for the three months ended March 31, 2014 and 2013, respectively.
	Deferred Revenues
	Deferred revenues consist primarily of billings and payments for magicJack devices and sales of access rights 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. 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 consolidated balance sheets. The remaining amounts are classified as non-current in the 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, server 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 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 $1.2 million and $1.4 million for the three months ended March 31, 2014 and 2013, respectively.
	Advertising Expenses
	Advertising expenses of $4.3 million and $2.8 million for the three months ended March 31, 2014 and 2013, respectively, consist primarily of television infomercials and commercials, Internet advertising and print advertising. Advertising costs are expensed when incurred.
	Research and Development Expenses
	The Company's research and development activities consist primarily of the design and development of its proprietary software used in the magicJack devices, magicJack APP and its servers, as well as the development of new products and applications for use in its broadband service offerings. The Company accounts for research and development costs in accordance with applicable accounting pronouncements. These pronouncements specify that costs incurred internally in researching and developing a product should be charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, all costs should be capitalized until the product is available for general release to customers. The Company has determined that technological feasibility for its products is reached after all high-risk development issues have been resolved through internal and customer base testing. Generally, new products offered to customers and improvements to the Company's servers are placed in service on attainment of technological feasibility. The Company has not capitalized any of its research and development activities and related costs. Research and development expenses were $1.7 million and $0.9 million for the three months ended March 31, 2014 and 2013, respectively.
	Earnings per Ordinary Share
	Net Income per share attributable to the Company's shareholders - basic, is calculated by dividing net income attributable to shareholders by the weighted average number of ordinary shares outstanding during each period, including redeemable ordinary shares (if applicable). Income per share attributable to the Company's shareholders - diluted, is computed using the weighted average number of ordinary and potentially diluted ordinary share equivalents outstanding during the period, including redeemable ordinary shares (if applicable). Potentially dilutive ordinary share equivalents consist of shares issuable upon the exercise or settlement of options to purchase ordinary shares or restricted stock units.
	Cash and Cash Equivalents
	The Company considers all highly liquid investments with a maturity at acquisition of three months or less to be cash equivalents.
	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 telecommunications carriers and are common in the telecommunications 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 other comprehensive income (loss) and as a separate component of capital equity in the 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.
	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 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 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 in high quality financial institutions and management believes that 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 March 31, 2014, the Company had cash and cash equivalents totaling $58.8 million, which included (i) $58.5 million in U.S. banks, and (ii) $0.3 million in an Israeli financial institution.
	The Company's non-interest bearing cash balances in U.S. banks, which included $1.3 million in one individual financial institution, were fully insured. The Company had money market accounts with a brokerage institution with balances totaling approximately $57.2 million.
	One telecommunications carrier accounted for approximately 25% and 28% of gross accounts receivable at March 31, 2014 and December 31, 2013, respectively. For the three months ended March 31, 2014 and 2013, no telecommunications 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 March 31, 2014 and December 31, 2013. For the three months ended March 31, 2014 and 2013, no retailer accounted for more than 10% of the Company's total net revenues.
	Fair Value
	Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  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, time deposits, securities sold, not yet purchased, and common equity put options in the Company's own stock. As of March 31, 2014 and December 31, 2013, all of them are Level 1 instruments. 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, in May 2014 and 2015. The liability for such payments has been discounted at a rate of 10% to a total fair value of $2.8 million at March 31, 2014 and December 31, 2013, with $1.5 million included in accrued expenses and other current liabilities at March 31, 2014 and December 31, 2013, and $1.3 million included in other non-current liabilities in the Company's March 31, 2014 and December 31, 2013 unaudited condensed consolidated balance sheets. The Company believes that the $2.8 million carrying value at March 31, 2014 approximates fair value based on observable market inputs other than quoted prices for similar traded debt securities, which are Level 2 instruments. The $0.2 million unamortized discount at March 31, 2014 is being amortized using the effective interest method and recorded as interest expense in the Company's unaudited 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 unaudited 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 March 31, 2014 and December 31, 2013, there were no common equity put options outstanding.
	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. Changes in estimated useful lives are accounted on a prospective basis starting with the period in which the change in estimate is made in accordance with ASC Subtopic 250-10, "Accounting Changes and Error Corrections."
	Long-lived assets, such as property, plant and equipment, and 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 March 31, 2014.
	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 currently has one reporting unit.
	The Company may utilize a qualitative assessment to determine if it is "more-likely-than-not" that the fair value of the reporting unit is less than its carrying value. If so, the two-step goodwill impairment test is required to be performed. If not, no further testing is required and the Company documents the relevant qualitative factors that support the strength of its fair value. Qualitative factors may include, but are not limited to: macroeconomic conditions, industry and market considerations, cost factors that may have a negative effect on earnings, overall financial performance, and other relevant entity-specific events.
	If the two-step goodwill impairment test is required to be performed, under the first step, the fair value of the reporting unit is compared with its carrying value (including goodwill). If the fair value of the reporting unit is less than its carrying value, the Company proceeds to step two of the goodwill impairment test. 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.
	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, 2013, 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 March 31, 2014.
	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. 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 to the valuation allowance during the three months ended March 31, 2014 or 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 permanent nontaxable items. The tax benefits of net operating loss carryforwards expected to be realized through 2014 and changes in other deferred tax assets and liabilities are recognized during interim periods based on an annual forecast as of the interim reporting date. At March 31, 2014, the estimated annual effective income tax rate is expected to approximate 29.9%, which includes federal, foreign, state and local taxes. This rate may fluctuate due to changes in jurisdictional income and to the timing of other discrete period transactions during the remainder of the year.

MARKETABLE_SECURITIES

MARKETABLE SECURITIES	3 Months Ended
	Mar. 31, 2014
MARKETABLE SECURITIES [Abstract]	'
MARKETABLE SECURITIES	'
	NOTE 3 - MARKETABLE SECURITIES
	The Company's marketable securities are classified as available-for-sale. As of March 31, 2014 and December 31, 2013, the available-for-sale securities consisted primarily of equity securities and time deposits, which are invested in the following (in thousands):
		March 31, 2014 (Unaudited)
		Fair		Unrealized		Unrealized
		Value		Gains		Losses
	Common equity securities	$	8,051	$	-	$	(1,006	)
	Time deposits		367		-		-
	Total	$	8,418	$	-	$	(1,006	)
		31-Dec-13
		Fair		Unrealized		Unrealized
		Value		Gains		Losses
	Common equity securities	$	8,415	$	-	$	(642	)
	Time deposits		367		-		-
	Total	$	8,782	$	-	$	(642	)
	The fair value of common equity securities at March 31, 2014 and December 31, 2013 was determined based on unadjusted quoted prices in active markets for identical assets, which are Level 1 inputs. The fair value of time deposits at March 31, 2014 and December 31, 2013 was determined based on its face value, which approximates its fair value and is a Level 1 input.
	As of March 31, 2014, the Company considers the declines in fair value of its common equity securities 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 has the ability and intends to hold its common equity securities and has determined there is no other-than-temporary impairment of such securities at March 31, 2014.
	There were no gain or loss on investments for the three months ended March 31, 2014. Gain on investments for the three months ended March 31, 2013 was $0.5 million and included reclassification of unrealized loss on marketable securities from other comprehensive loss to gains on investments of $0.4 million.

INVENTORIES

INVENTORIES	3 Months Ended
	Mar. 31, 2014
INVENTORIES [Abstract]	'
INVENTORIES	'
	NOTE 4 - INVENTORIES
	Inventories are comprised of the following (in thousands):
		March 31,		December 31,
		2014		2013
		(Unaudited)
	Raw materials	$	1,419	$	1,266
	Finished goods		1,966		3,224
	Total	$	3,385	$	4,490
	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 three months ended March 31, 2014 and 2013.

PROPERTY_AND_EQUIPMENT

PROPERTY AND EQUIPMENT	3 Months Ended
	Mar. 31, 2014
PROPERTY AND EQUIPMENT [Abstract]	'
PROPERTY AND EQUIPMENT	'
	NOTE 5 - PROPERTY AND EQUIPMENT
	Property and equipment are summarized as follows (in thousands):
		Estimated
		Useful Lives	March 31,			December 31,
		(in years)	2014			2013
			(Unaudited)
	Switches	15-Mar	$	8,332		$	7,099
	Computers	10-Mar		2,418			2,370
	Furniture	5-Mar		165			160
	Leasehold-improvements	*		351			228
	Accumulated depreciation
	and amortization			(8,014	)		(7,898	)
	Total		$	3,252		$	1,959
	* The estimated useful life for leasehold improvements is the shorter of the term of the lease or life of the asset.
	Depreciation expense for the three months ended March 31, 2014 and 2013 was $0.1 million.

INTANGIBLES_ASSETS

INTANGIBLES ASSETS	3 Months Ended
	Mar. 31, 2014
INTANGIBLES ASSETS [Abstract]	'
INTANGIBLES ASSETS	'
	NOTE 6 - INTANGIBLES ASSETS
	As of March 31, 2014 and December 31, 2013, the Company had intangible assets with carrying values of $14.4 million and $15.7 million, respectively. Identified intangible assets not subject to amortization consisted of tradename and domain names with combined carrying value of $1.2 million as of March 31, 2014 and December 31, 2013. Identified intangible assets with finite lives subject to amortization consist of the following (in thousands):
				March 31, 2014 (Unaudited)									31-Dec-13
		Estimated		Gross		Accumulated					Weighted-		Gross		Accumulated					Weighted-
		Useful Lives		Carrying									Carrying
		(in years)		Amount		Amortization			Net		Average Life		Amount		Amortization			Net		Average Life
	Technology	17-Mar		$	5,221	$	(4,329	)	$	892		5.97	$	5,221	$	(4,254	)	$	967		6.19
	Intellectual property rights	17-Mar			14,161		(5,888	)		8,273		5.59		14,161		(5,280	)		8,881		5.69
	Covenants not-to-
	compete and	5-Feb			5,781		(1,951	)		3,830		1.72		5,781		(1,385	)		4,396		1.97
	not-to-sue
	Tradename	6-Mar			321		(280	)		41		1.75		321		(274	)		47		2
	Customer relationships	7-May			750		(601	)		149		3.33		750		(581	)		169		3.58
	Backlog	1			800		(800	)		-		-		800		(800	)		-		-
	Total			$	27,034	$	(13,849	)	$	13,185			$	27,034	$	(12,574	)	$	14,460
	Amortization expense for the three months ended March 31, 2014 and 2013 were $1.3 million and $1.0 million, respectively. Amortization expense for the three months ended March 31, 2013 included a $0.2 million impairment of certain technology and customer relationships related to the VocalTec legacy products, which the Company discontinued selling in 2013. Based on the carrying value of identified intangible assets recorded at March 31, 2014, 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
	Nine months ending December 31, 2014		$	3,825
	2015			4,163
	2016			1,564
	2017			1,331
	2018			854
	Thereafter			1,448
			$	13,185

DEFERRED_COSTS_AND_REVENUES

DEFERRED COSTS AND REVENUES	3 Months Ended
	Mar. 31, 2014
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 March 31, 2014 and December 31, 2013 (in thousands):
		March 31,		December 31,
		2014		2013
		(Unaudited)
	magicJack devices	$	9,190	$	14,855
	Access right renewals		46,889		37,108
	Prepaid minutes		2,519		2,578
	Deferred revenue, current		58,598		54,541
	Deferred revenue, non-current*		56,329		59,951
	Total deferred revenues	$	114,927	$	114,492
	* 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 $5.5 million and $6.0 million for the three months ended March 31, 2014 and 2013, respectively.

OTHER_LIABILITIES

OTHER LIABILITIES	3 Months Ended
	Mar. 31, 2014
OTHER LIABILITIES [Abstract]	'
OTHER LIABILITIES	'
	NOTE 8 - OTHER LIABILITIES
	As of March 31, 2014 and December 31, 2013, 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 is required to make two non-interest bearing future annual payments of $1.5 million beginning May 31, 2014. The liability for such payments has been discounted at a rate of 10% to a total net present value of $2.8 million at March 31, 2014 and December 31, 2013, with $1.5 million included in accrued expenses and other current liabilities at March 31, 2014 and December 31, 2013, and $1.3 million included in other non-current liabilities in the accompanying March 31, 2014 and December 31, 2013 unaudited condensed consolidated balance sheets.

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2014
COMMITMENTS AND CONTINGENCIES [Abstract]	'
COMMITMENTS AND CONTINGENCIES	'
	NOTE 9 - COMMITMENTS AND CONTINGENCIES
	Legal Proceedings
	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 Default Judgment, seeking, (i) a judgment for money damages against all three named Defendants, jointly and severally, for approximately $5.9 million, together with interest since May 31, 2012, 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 Default 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 Complaint, 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. On September 4, 2013, the Plaintiffs filed a "Motion to Correct Misnomer in the Name of one of the Defendants." That Motion acknowledged that references to "magicJack VocalTec, LLC" in the Complaint, and in the corresponding summons, service return and Clerk's Default, were incorrect, and that the party being sued is properly referred to as "magicJack VocalTec, Ltd."  Plaintiff's Motion asks the Court to amend the pleadings and process, so that they accurately reflect the name the entity that Plaintiffs contend they sought to sue, and so that Plaintiffs might gain benefit of the Clerk's Default against the correctly named entity.The Court has scheduled a hearing to address the merits of the various pending motions commencing on May 29, 2014. The Company believes it has raised multiple grounds that will result in the Default entered by the Clerk of the Court being vacated or set aside. 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. 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.

TREASURY_STOCK_AND_FAIR_VALUE_

TREASURY STOCK AND FAIR VALUE (LOSS) GAIN ON COMMON EQUITY PUT OPTIONS	3 Months Ended
	Mar. 31, 2014
TREASURY STOCK AND FAIR VALUE (LOSS) GAIN ON COMMON EQUITY PUT OPTIONS [Abstract]	'
TREASURY STOCK AND FAIR VALUE (LOSS) GAIN ON COMMON EQUITY PUT OPTIONS	'
	NOTE 10 -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 of $100 million as of March 31, 2014. 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 March 31, 2014. At March 31, 2014, 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.
	In prior years, 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 March 31, 2014 and December 31, 2013. The Company did not repurchase any shares in the three months ended March 31, 2014 in connection with its share repurchase program. 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 the Company expended approximately $3.3 million purchasing 190,000 shares of outstanding ordinary shares at an average price of $17.27 during the three months ended March 31, 2013.
	The Company issued 2,015 of its ordinary shares held as treasury stock with a cost of $25 thousand, $12.32 per share, to a director as a result of restricted stock units that were granted in mid-2013, which vested in the three months ended March 31, 2014 (see Note 11 below for further information).
	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 three months ended March 31, 2013.
	The changes in treasury stock during the three months ended March 31, 2014 are as follows (in thousands, except for number of shares):
		Three Months Ended
		31-Mar-14
		Number			Amount
		(Unaudited)
	Balance, beginning of period		7,202,242		$	108,151
	Ordinary shares issued due to
	vesting of restricted stock units		(2,015	)		(25	)
	Balance, end of period		7,200,227		$	108,126

SHAREBASED_COMPENSATION

SHARE-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2014
SHARE-BASED COMPENSATION [Abstract]	'
SHARE-BASED COMPENSATION	'
	NOTE 11 - SHARE-BASED COMPENSATION
	The Company has granted ordinary share options, issued restricted stock units and ordinary shares as an alternative or supplement to the compensation of its executives, employees, directors and outside consultants. The Company's share-based compensation program is a long-term retention program intended to attract and reward talented executives, employees and outside consultants, and align their interests with stockholders. The Company is currently granting share-based awards under the magicJack Vocaltec Ltd. 2013 Stock Incentive Plan and the magicJack Vocaltec Ltd. 2013 Israeli Stock Incentive Plan ( together, the "2013 Plans"). In July 2013, the shareholders approved the 2013 Plans at the annual general meeting of shareholders to allow grants of ordinary share options, restricted stock units and ordinary shares. As of March 31, 2014, the aggregate number of shares subject to awards under the Plans is 2,250,000. The Company had previously granted shares under the VocalTec amended Master Stock Plan (the "2003 Plan") which expired in April 2013. Share-based awards are generally exercisable or issuable upon vesting. The Company's policy is to recognize compensation expense for awards with only service conditions and a graded vesting on a straight-line basis over the requisite vesting period for the entire award.
	The Company's share-based compensation expense for ordinary share options, issued restricted stock units and ordinary shares for the three months ended March 31, 2014 and 2013 was as follows (in thousands):
		Three Months Ended
		March 31st
		2014			2013
		(Unaudited)
	Ordinary share options	$	2,439		$	-
	Restricted stock units		230			-
	Ordinary shares		-			400
		$	2,669		$	400
	The detail of total stock-based compensation recognized by income statement classification is as follows (in thousands):
		Three Months Ended
		March 31st
		2014			2013
		(Unaudited)
	Cost of revenues	$	225		$	-
	Advertising		712			-
	General and administrative		1,471			400
	Research and development		261			-
		$	2,669		$	400
	Ordinary Share Options
	Ordinary share options granted under the 2013 Plans have a five-year life and vest over a period of 24 to 36 months beginning at the date of grant. The 2013 Plans currently allow for a maximum term of ten years for awards granted. The following table provides additional information regarding ordinary share options issued, outstanding and exercisable for the year ended December 31, 2013, and three months ended March 31, 2014 (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-13		11,500		$	6.25		7.13	$	165
	Granted		1,274,607		$	15.04
	Exercised		(900	)	$	0.45
	Expired or cancelled		-		$	-
	31-Dec-13		1,285,207		$	14.95		4.41	$	-
	Granted		492,500		$	13.6
	Exercised		(1,990	)	$	8.35
	Expired or cancelled		(30	)	$	147.55
	Outstanding at March 31, 2014 (unaudited)		1,775,687		$	14.58		4.47	$	11,808
	Vested at March 31, 2014 (unaudite)		381,520		$	15.25		4.22	$	2,281
	* 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 was approximately $2.4 million and $0 for the three months ended March 31, 2014 and 2013, respectively. The total intrinsic value of ordinary share options exercised during the three months ended March 31, 2014 and 2013 was $17 thousand and $0, respectively. As of March 31, 2014, there was approximately $8.2 million of unrecognized share-based compensation expense related to unvested ordinary share options, which is expected to be recognized over a weighted average period of 2.05 years.
	The Company uses the Black-Scholes option pricing model to determine the fair value of stock options. The determination of the fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the Company's stock price, as well as assumptions regarding a number of complex and subjective variables. These variables include the Company's expected stock price volatility over the term of the awards, assumed employee exercise behaviors, risk-free interest rate and expected dividends. For purposes of valuing ordinary share options, the Company used historical volatility at the date of grant. The approximate risk-free interest rate was based on the U.S. Treasury yield for comparable periods. As the Company does not have historical data available regarding employee exercise patterns, it did not anticipate any forfeiture of the ordinary share options granted and the expected term of the ordinary share options was calculated using the simplified method in accordance with SAB No. 107, "Share Based Payment." The Company does not expect to pay dividends on its ordinary shares in the foreseeable future. Accordingly, the Company used a dividend yield of zero in its option pricing model. The weighted average fair value of ordinary share options granted during the three months ended March 31, 2014 is $5.71, and was measured at the date of grant using the following assumptions:
		Three Months Ended
		March 31st
		2014
	Expected term (in years)		3.2 - 3.5
	Dividend yield		0	%
	Expected volatility	57.2% to 57.3		%
	Risk free interest rate	1.44% to 1.64		%
	Forfeiture rate		0	%
	Restricted Stock Units
	The Company may also award non-vested restricted stock units to its executives, employees, directors and outside consultants under the 2013 Plan, which may vest based on service or a combination or service and other conditions, such as market. The compensation expense for the award will be recognized assuming that the requisite service is rendered regardless of whether the market conditions are achieved. Each non-vested stock unit, upon vesting, represents the right to receive one ordinary share of the Company. During the three months ended March 31, 2014, the Company did not grant any restricted stock units under the 2013 Plans.
	The following table summarizes the Company's restricted stock unit activity for the three months ended March 31, 2014:
					Average
		Number of			Fair Value
		Shares			at Grant Date
	31-Dec-13		154,746		$	14.08
	Granted		-		$	-
	Vested		(2,015	)	$	14.42
	Forfeited		-		$	-
	Non-vested at December 31, 2013		152,731		$	14.08
	During the three months ended March 31, 2014, the Company recognized approximately $0.2 million in share-based compensation expense related to restricted stock units. As of March 31, 2014, there was $1.7 million in unrecognized share-based compensation costs related to restricted stock units. The unrecognized share-based compensation expense is expected to be recognized over a weighted average period of 1.43 years.

INCOME_TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2014
INCOME TAXES [Abstract]	'
INCOME TAXES	'
	NOTE 12 - INCOME TAXES
	Total income tax expense was $2.3 million and $5.2 million for the three months ended March 31, 2014 and 2013, respectively. Income taxes for the three months ended March 31, 2014 and 2013 are the following (in thousands):
		Three Months Ended
		March 31,
		2014			2013
	Income before taxes	$	7,583		$	14,784
	Income tax expense		2,264			5,198
	Effective income tax rate		29.86	%		35.16	%
	The effective income tax rate for the three months ended March 31, 2014 is lower than the federal statutory rate due, in part, to the net impact of increases in the effective rate for items that are not deductible for tax purposes and state income tax expense, offset by a lower statutory tax rate on the Company's Israeli operations, which is 26.5%. The 2014 estimated annual effective tax rate is expected to approximate 29.9%, but may fluctuate during the year due to changes in the Company's jurisdictional income and other discrete period transactions.

INCOME_PER_SHARE

INCOME PER SHARE	3 Months Ended
	Mar. 31, 2014
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 dilutive 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, restricted stock unit grants 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
		March 31,
		2014		2013
	Numerator:	(Unaudited)		(Unaudited)
	Net income	$	5,319	$	9,586
	Denominator:
	Denominator for basic net income per share - weighted
	average ordinary shares outstanding		17,827		18,685
	Effect of dilutive options to purchase ordinary shares		-		9
	Effect of dilutive options or restircted stock units vesting,
	exercised or expired during the year		3		-
	Denominator for diluted net income per share - weighted
	average ordinary shares outstanding		17,830		18,694
	Net income per ordinary share attributable to shareholders
	Basic	$	0.3	$	0.51
	Diluted	$	0.3	$	0.51

SUMMARY_OF_ACCOUNTING_POLICIES1

SUMMARY OF ACCOUNTING POLICIES (Policy)	3 Months Ended
	Mar. 31, 2014
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 revenue and expenses during the reporting period. Such estimates and judgments are revised periodically as required. Actual results could differ from those estimates. Significant estimates include allowances for billing adjustments and doubtful accounts, the recoverability of long-lived assets and goodwill, income taxes, income tax valuation allowance, uncertain tax liabilities, the value of ordinary shares issued in asset acquisitions, business combinations or underlying the Company's ordinary share options, 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 domestic and international 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 the 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 months ended March 31, 2014 and 2013, the Company's estimates of returns and actual returns from initial stocking orders have not been materially different.
	Prepaid Minutes and Access and Wholesale Charges
	Revenue from prepaid minutes and access and wholesale charges are recognized as minutes are used. These revenues are generated from the usage of prepaid minutes, fees for origination of calls to 800-numbers, 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, less a provision for billing adjustments of $19 thousand and $1.2 million for the three months ended March 31, 2014 and 2013, respectively.
Deferred Revenues	'
	Deferred Revenues
	Deferred revenues consist primarily of billings and payments for magicJack devices and sales of access rights 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. 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 consolidated balance sheets. The remaining amounts are classified as non-current in the 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, server 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 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 $1.2 million and $1.4 million for the three months ended March 31, 2014 and 2013, respectively.
Advertising Expenses	'
	Advertising Expenses
	Advertising expenses of $4.3 million and $2.8 million for the three months ended March 31, 2014 and 2013, respectively, consist primarily of television infomercials and commercials, Internet advertising and print advertising. Advertising costs are expensed when incurred.
Research and Development Expenses	'
	Research and Development Expenses
	The Company's research and development activities consist primarily of the design and development of its proprietary software used in the magicJack devices, magicJack APP and its servers, as well as the development of new products and applications for use in its broadband service offerings. The Company accounts for research and development costs in accordance with applicable accounting pronouncements. These pronouncements specify that costs incurred internally in researching and developing a product should be charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, all costs should be capitalized until the product is available for general release to customers. The Company has determined that technological feasibility for its products is reached after all high-risk development issues have been resolved through internal and customer base testing. Generally, new products offered to customers and improvements to the Company's servers are placed in service on attainment of technological feasibility. The Company has not capitalized any of its research and development activities and related costs. Research and development expenses were $1.7 million and $0.9 million for the three months ended March 31, 2014 and 2013, respectively.
Earnings per Ordinary Share	'
	Earnings per Ordinary Share
	Net Income per share attributable to the Company's shareholders - basic, is calculated by dividing net income attributable to shareholders by the weighted average number of ordinary shares outstanding during each period, including redeemable ordinary shares (if applicable). Income per share attributable to the Company's shareholders - diluted, is computed using the weighted average number of ordinary and potentially diluted ordinary share equivalents outstanding during the period, including redeemable ordinary shares (if applicable). Potentially dilutive ordinary share equivalents consist of shares issuable upon the exercise or settlement of options to purchase ordinary shares or restricted stock units.
Cash and Cash Equivalents	'
	Cash and Cash Equivalents
	The Company considers all highly liquid investments with a maturity at acquisition of three months or less to be cash equivalents.
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 telecommunications carriers and are common in the telecommunications 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 other comprehensive income (loss) and as a separate component of capital equity in the 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.
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 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 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 in high quality financial institutions and management believes that 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 March 31, 2014, the Company had cash and cash equivalents totaling $58.8 million, which included (i) $58.5 million in U.S. banks, and (ii) $0.3 million in an Israeli financial institution.
	The Company's non-interest bearing cash balances in U.S. banks, which included $1.3 million in one individual financial institution, were fully insured. The Company had money market accounts with a brokerage institution with balances totaling approximately $57.2 million.
	One telecommunications carrier accounted for approximately 25% and 28% of gross accounts receivable at March 31, 2014 and December 31, 2013, respectively. For the three months ended March 31, 2014 and 2013, no telecommunications 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 March 31, 2014 and December 31, 2013. For the three months ended March 31, 2014 and 2013, no retailer accounted for more than 10% of the Company's total net revenues.
Fair Value	'
	Fair Value
	Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  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, time deposits, securities sold, not yet purchased, and common equity put options in the Company's own stock. As of March 31, 2014 and December 31, 2013, all of them are Level 1 instruments. 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, in May 2014 and 2015. The liability for such payments has been discounted at a rate of 10% to a total fair value of $2.8 million at March 31, 2014 and December 31, 2013, with $1.5 million included in accrued expenses and other current liabilities at March 31, 2014 and December 31, 2013, and $1.3 million included in other non-current liabilities in the Company's March 31, 2014 and December 31, 2013 unaudited condensed consolidated balance sheets. The Company believes that the $2.8 million carrying value at March 31, 2014 approximates fair value based on observable market inputs other than quoted prices for similar traded debt securities, which are Level 2 instruments. The $0.2 million unamortized discount at March 31, 2014 is being amortized using the effective interest method and recorded as interest expense in the Company's unaudited 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 unaudited 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 March 31, 2014 and December 31, 2013, there were no common equity put options outstanding.
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. Changes in estimated useful lives are accounted on a prospective basis starting with the period in which the change in estimate is made in accordance with ASC Subtopic 250-10, "Accounting Changes and Error Corrections."
	Long-lived assets, such as property, plant and equipment, and 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 March 31, 2014.
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 currently has one reporting unit.
	The Company may utilize a qualitative assessment to determine if it is "more-likely-than-not" that the fair value of the reporting unit is less than its carrying value. If so, the two-step goodwill impairment test is required to be performed. If not, no further testing is required and the Company documents the relevant qualitative factors that support the strength of its fair value. Qualitative factors may include, but are not limited to: macroeconomic conditions, industry and market considerations, cost factors that may have a negative effect on earnings, overall financial performance, and other relevant entity-specific events.
	If the two-step goodwill impairment test is required to be performed, under the first step, the fair value of the reporting unit is compared with its carrying value (including goodwill). If the fair value of the reporting unit is less than its carrying value, the Company proceeds to step two of the goodwill impairment test. 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.
	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, 2013, 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 March 31, 2014.
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. 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 to the valuation allowance during the three months ended March 31, 2014 or 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 permanent nontaxable items. The tax benefits of net operating loss carryforwards expected to be realized through 2014 and changes in other deferred tax assets and liabilities are recognized during interim periods based on an annual forecast as of the interim reporting date. At March 31, 2014, the estimated annual effective income tax rate is expected to approximate 29.9%, which includes federal, foreign, state and local taxes. This rate may fluctuate due to changes in jurisdictional income and to the timing of other discrete period transactions during the remainder of the year.

MARKETABLE_SECURITIES_Tables

MARKETABLE SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2014
MARKETABLE SECURITIES [Abstract]	'
Schedule of Available-for-Sale Securities	'
		March 31, 2014 (Unaudited)
		Fair		Unrealized		Unrealized
		Value		Gains		Losses
	Common equity securities	$	8,051	$	-	$	(1,006	)
	Time deposits		367		-		-
	Total	$	8,418	$	-	$	(1,006	)
		31-Dec-13
		Fair		Unrealized		Unrealized
		Value		Gains		Losses
	Common equity securities	$	8,415	$	-	$	(642	)
	Time deposits		367		-		-
	Total	$	8,782	$	-	$	(642	)

INVENTORIES_Tables

INVENTORIES (Tables)	3 Months Ended
	Mar. 31, 2014
INVENTORIES [Abstract]	'
Schedule of Inventories	'
		March 31,		December 31,
		2014		2013
		(Unaudited)
	Raw materials	$	1,419	$	1,266
	Finished goods		1,966		3,224
	Total	$	3,385	$	4,490

PROPERTY_AND_EQUIPMENT_Tables

PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2014
PROPERTY AND EQUIPMENT [Abstract]	'
Schedule of Property and Equipment	'
		Estimated
		Useful Lives	March 31,			December 31,
		(in years)	2014			2013
			(Unaudited)
	Switches	15-Mar	$	8,332		$	7,099
	Computers	10-Mar		2,418			2,370
	Furniture	5-Mar		165			160
	Leasehold-improvements	*		351			228
	Accumulated depreciation
	and amortization			(8,014	)		(7,898	)
	Total		$	3,252		$	1,959
	* The estimated useful life for leasehold improvements is the shorter of the term of the lease or life of the asset.

INTANGIBLES_ASSETS_Tables

INTANGIBLES ASSETS (Tables)	3 Months Ended
	Mar. 31, 2014
INTANGIBLES ASSETS [Abstract]	'
Schedule of Finite-Lived Intangible Assets	'
				March 31, 2014 (Unaudited)									31-Dec-13
		Estimated		Gross		Accumulated					Weighted-		Gross		Accumulated					Weighted-
		Useful Lives		Carrying									Carrying
		(in years)		Amount		Amortization			Net		Average Life		Amount		Amortization			Net		Average Life
	Technology	17-Mar		$	5,221	$	(4,329	)	$	892		5.97	$	5,221	$	(4,254	)	$	967		6.19
	Intellectual property rights	17-Mar			14,161		(5,888	)		8,273		5.59		14,161		(5,280	)		8,881		5.69
	Covenants not-to-
	compete and	5-Feb			5,781		(1,951	)		3,830		1.72		5,781		(1,385	)		4,396		1.97
	not-to-sue
	Tradename	6-Mar			321		(280	)		41		1.75		321		(274	)		47		2
	Customer relationships	7-May			750		(601	)		149		3.33		750		(581	)		169		3.58
	Backlog	1			800		(800	)		-		-		800		(800	)		-		-
	Total			$	27,034	$	(13,849	)	$	13,185			$	27,034	$	(12,574	)	$	14,460
Schedule of Future Amortization Expense	'
	Fiscal Year		Amortization
			Expense
	Nine months ending December 31, 2014		$	3,825
	2015			4,163
	2016			1,564
	2017			1,331
	2018			854
	Thereafter			1,448
			$	13,185

DEFERRED_COSTS_AND_REVENUES_Ta

DEFERRED COSTS AND REVENUES (Tables)	3 Months Ended
	Mar. 31, 2014
DEFERRED COSTS AND REVENUES [Abstract]	'
Schedule of Deferred Revenue	'
		March 31,		December 31,
		2014		2013
		(Unaudited)
	magicJack devices	$	9,190	$	14,855
	Access right renewals		46,889		37,108
	Prepaid minutes		2,519		2,578
	Deferred revenue, current		58,598		54,541
	Deferred revenue, non-current*		56,329		59,951
	Total deferred revenues	$	114,927	$	114,492
	* Deferred revenues, non-current, is comprised entirely of deferred revenues originating from the sale of access right renewals.

TREASURY_STOCK_AND_FAIR_VALUE_1

TREASURY STOCK AND FAIR VALUE (LOSS) GAIN ON COMMON EQUITY PUT OPTIONS (Tables)	3 Months Ended
	Mar. 31, 2014
TREASURY STOCK AND FAIR VALUE (LOSS) GAIN ON COMMON EQUITY PUT OPTIONS [Abstract]	'
Schedule of Changes in Treasury Stock	'
		Three Months Ended
		31-Mar-14
		Number			Amount
		(Unaudited)
	Balance, beginning of period		7,202,242		$	108,151
	Ordinary shares issued due to
	vesting of restricted stock units		(2,015	)		(25	)
	Balance, end of period		7,200,227		$	108,126

SHAREBASED_COMPENSATION_Tables

SHARE-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2014
SHARE-BASED COMPENSATION [Abstract]	'
Schedule of Share-Based Compensation Expense	'
		Three Months Ended
		March 31st
		2014			2013
		(Unaudited)
	Ordinary share options	$	2,439		$	-
	Restricted stock units		230			-
	Ordinary shares		-			400
		$	2,669		$	400
Schedule of Stock-Based Compensation Expense by Income Statement Classification	'
		Three Months Ended
		March 31st
		2014			2013
		(Unaudited)
	Cost of revenues	$	225		$	-
	Advertising		712			-
	General and administrative		1,471			400
	Research and development		261			-
		$	2,669		$	400
Schedule of Stock Option Activity	'
							Weighted
							Average
					Weighted		Remaining
					Average		Contractual		Aggregate
		Number of			Exercise		Term		Intrinsic
	Date of Grant	Options			Price		(in years)		Value *
	1-Jan-13		11,500		$	6.25		7.13	$	165
	Granted		1,274,607		$	15.04
	Exercised		(900	)	$	0.45
	Expired or cancelled		-		$	-
	31-Dec-13		1,285,207		$	14.95		4.41	$	-
	Granted		492,500		$	13.6
	Exercised		(1,990	)	$	8.35
	Expired or cancelled		(30	)	$	147.55
	Outstanding at March 31, 2014 (unaudited)		1,775,687		$	14.58		4.47	$	11,808
	Vested at March 31, 2014 (unaudite)		381,520		$	15.25		4.22	$	2,281
	* 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.
Schedule of Fair Value Assumptions	'
		Three Months Ended
		March 31st
		2014
	Expected term (in years)		3.2 - 3.5
	Dividend yield		0	%
	Expected volatility	57.2% to 57.3		%
	Risk free interest rate	1.44% to 1.64		%
	Forfeiture rate		0	%
Schedule of Restricted Stock Unit Activity	'
					Average
		Number of			Fair Value
		Shares			at Grant Date
	31-Dec-13		154,746		$	14.08
	Granted		-		$	-
	Vested		(2,015	)	$	14.42
	Forfeited		-		$	-
	Non-vested at December 31, 2013		152,731		$	14.08

INCOME_TAXES_Tables

INCOME TAXES (Tables)	3 Months Ended
	Mar. 31, 2014
INCOME TAXES [Abstract]	'
Schedule of Effective Income Tax Rate	'
		Three Months Ended
		March 31,
		2014			2013
	Income before taxes	$	7,583		$	14,784
	Income tax expense		2,264			5,198
	Effective income tax rate		29.86	%		35.16	%

INCOME_PER_SHARE_Tables

INCOME PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2014
INCOME PER SHARE [Abstract]	'
Schedule of Computation of Net Income Per Share	'
		Three Months Ended
		March 31,
		2014		2013
	Numerator:	(Unaudited)		(Unaudited)
	Net income	$	5,319	$	9,586
	Denominator:
	Denominator for basic net income per share - weighted
	average ordinary shares outstanding		17,827		18,685
	Effect of dilutive options to purchase ordinary shares		-		9
	Effect of dilutive options or restircted stock units vesting,
	exercised or expired during the year		3		-
	Denominator for diluted net income per share - weighted
	average ordinary shares outstanding		17,830		18,694
	Net income per ordinary share attributable to shareholders
	Basic	$	0.3	$	0.51
	Diluted	$	0.3	$	0.51

DESCRIPTION_OF_BUSINESS_AND_BA1

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Magicjack Product Line [Member]	'	'
Product Information [Line Items]	'	'
Revenues	$30,800	$32,100
Prepaid Minutes [Member]	'	'
Product Information [Line Items]	'	'
Revenues	$2,800	$3,200

SUMMARY_OF_ACCOUNTING_POLICIES2

SUMMARY OF ACCOUNTING POLICIES (Details) (USD $)

1 Months Ended

3 Months Ended

3 Months Ended

3 Months Ended

12 Months Ended

In Thousands, unless otherwise specified

31-May-13

31-May-12

31-May-11

Mar. 31, 2014

Mar. 31, 2013

Dec. 31, 2013

Dec. 31, 2012

Mar. 31, 2014

Mar. 31, 2014

Mar. 31, 2014

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Mar. 31, 2014

Minimum [Member]

Maximum [Member]

Single Financial Institution, Concentration Risk [Member]

Telecommunications Carrier One [Member]

Telecommunications Carrier One [Member]

United States [Member]

Israel [Member]

Accounts Receivable [Member]

Accounts Receivable [Member]

SUMMARY OF ACCOUNTING POLICIES [Abstract]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Allowance for billing adjustments

'

'

'

$19

$1,200

'

'

'

'

'

'

'

'

'

Cost of Revenues

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Shipping and handling and credit card charges

'

'

'

1,200

1,400

'

'

'

'

'

'

'

'

'

Advertising Expenses

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Advertising

'

'

'

4,296

2,814

'

'

'

'

'

'

'

'

'

Research and Development Expenses

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Research and development

'

'

'

1,744

862

'

'

'

'

'

'

'

'

'

Certain Risks and Concentrations

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Cash and cash equivalents

'

'

'

58,843

40,247

45,997

18,959

'

'

1,300

'

'

58,500

300

Insured cash balance

'

'

'

250

'

'

'

'

'

'

'

'

'

'

Money market accounts

'

'

'

57,200

'

'

'

'

'

'

'

'

'

'

Percentage of concentration risk

'

'

'

10.00%

10.00%

'

'

'

'

'

25.00%

28.00%

'

'

Payment for intangible assets

1,500

1,500

1,500

'

114

'

'

'

'

'

'

'

'

'

Future payment amount for intangible assets

'

'

'

1,500

'

'

'

'

'

'

'

'

'

'

Discount rate

'

'

'

10.00%

'

'

'

'

'

'

'

'

'

'

Future payment amount, fair value

'

'

'

2,800

'

2,800

'

'

'

'

'

'

'

'

Future payment liability, current

'

'

'

1,500

'

1,500

'

'

'

'

'

'

'

'

Future payment liability, non-current

'

'

'

1,300

'

1,300

'

'

'

'

'

'

'

'

Unamortized discount

'

'

'

$200

'

'

'

'

'

'

'

'

'

'

Effective income tax rate

'

'

'

29.86%

35.16%

'

'

'

'

'

'

'

'

'

Property, Plant and Equipment [Line Items]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Property and equipment, estimated useful lives

'

'

'

'

'

'

'

'3 years

'15 years

'

'

'

'

'

MARKETABLE_SECURITIES_Details

MARKETABLE SECURITIES (Details) (USD $)	3 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]	'	'	'
Fair Value	$8,418	'	$8,782
Unrealized Gains	'	'	'
Unrealized Losses	-1,006	'	-642
Gains on investments	'	527	'
Reclassification of unrealized loss on marketable securities to gain on investments	'	362	'
Common Equity Securities [Member]	'	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'	'
Fair Value	8,051	'	8,415
Unrealized Gains	'	'	'
Unrealized Losses	-1,006	'	-642
Debt Securities [Member]	'	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'	'
Fair Value	367	'	367
Unrealized Gains	'	'	'
Unrealized Losses	'	'	'

INVENTORIES_Details

INVENTORIES (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
INVENTORIES [Abstract]	'	'
Raw materials	$1,419	$1,266
Finished goods	1,966	3,224
Total	$3,385	$4,490

PROPERTY_AND_EQUIPMENT_Details

PROPERTY AND EQUIPMENT (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Property, Plant and Equipment [Line Items]	'	'	'
Accumulated depreciation and amortization	($8,014)	'	($7,898)
Property and equipment, net	3,252	'	1,959
Depreciation expense	100	100	'
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	8,332	'	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]	'	'	'
Property and equipment, gross	2,418	'	2,370
Computers [Member] | Minimum [Member]	'	'	'
Property, Plant and Equipment [Line Items]	'	'	'
Estimated useful life	'3 years	'	'
Computers [Member] | Maximum [Member]	'	'	'
Property, Plant and Equipment [Line Items]	'	'	'
Estimated useful life	'10 years	'	'
Furniture [Member]	'	'	'
Property, Plant and Equipment [Line Items]	'	'	'
Property and equipment, gross	165	'	160
Furniture [Member] | Minimum [Member]	'	'	'
Property, Plant and Equipment [Line Items]	'	'	'
Estimated useful life	'3 years	'	'
Furniture [Member] | Maximum [Member]	'	'	'
Property, Plant and Equipment [Line Items]	'	'	'
Estimated useful life	'5 years	'	'
Leasehold-improvements [Member]	'	'	'
Property, Plant and Equipment [Line Items]	'	'	'
Property and equipment, gross	$351	'	$228

INTANGIBLES_ASSETS_Details

INTANGIBLES ASSETS (Details) (USD $)

3 Months Ended

3 Months Ended

12 Months Ended

3 Months Ended

12 Months Ended

3 Months Ended

12 Months Ended

3 Months Ended

12 Months Ended

3 Months Ended

12 Months Ended

3 Months Ended

In Thousands, unless otherwise specified

Mar. 31, 2014

Mar. 31, 2013

Dec. 31, 2013

Mar. 31, 2014

Mar. 31, 2014

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Mar. 31, 2014

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Mar. 31, 2014

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Mar. 31, 2014

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Mar. 31, 2014

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Mar. 31, 2014

Mar. 31, 2014

Dec. 31, 2013

Minimum [Member]

Maximum [Member]

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]

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]

Minimum [Member]

Maximum [Member]

INTANGIBLES ASSETS [Abstract]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Intangible assets, net

$14,381

'

$15,656

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Indefinite lived intangible assets

1,200

'

1,200

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Finite-Lived Intangible Assets [Line Items]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Estimated useful life

'

'

'

'1 year

'17 years

'

'

'3 years

'17 years

'

'

'3 years

'17 years

'

'

'2 years

'5 years

'

'

'3 years

'6 years

'

'

'5 years

'7 years

'1 year

'

Gross Carrying Amount

27,034

'

27,034

'

'

5,221

5,221

'

'

14,161

14,161

'

'

5,781

5,781

'

'

321

321

'

'

750

750

'

'

800

800

Accumulated Amortization

-13,849

'

-12,574

'

'

-4,329

-4,254

'

'

-5,888

-5,280

'

'

-1,951

-1,385

'

'

-280

-274

'

'

-601

-581

'

'

-800

-800

Net

13,185

'

14,460

'

'

892

967

'

'

8,273

8,881

'

'

3,830

4,396

'

'

41

47

'

'

149

169

'

'

'

'

Weighted-Average Life

'

'

'

'

'

'5 years 11 months 19 days

'6 years 2 months 9 days

'

'

'5 years 7 months 2 days

'5 years 8 months 9 days

'

'

'1 year 8 months 19 days

'1 year 11 months 19 days

'

'

'1 year 9 months

'2 years

'

'

'3 years 3 months 29 days

'3 years 6 months 29 days

'

'

'

'

Asset impairment charges

200

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Amortization expense

$1,300

$1,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

INTANGIBLES_ASSETS_Schedule_of

INTANGIBLES ASSETS (Schedule of Future Amortization Expense) (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
INTANGIBLES ASSETS [Abstract]	'	'
Nine months ending December 31, 2014	$3,825	'
2015	4,163	'
2016	1,564	'
2017	1,331	'
2018	854	'
Thereafter	1,448	'
Net	$13,185	$14,460

DEFERRED_COSTS_AND_REVENUES_De

DEFERRED COSTS AND REVENUES (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014		Mar. 31, 2013	Dec. 31, 2013
Deferred Revenue Arrangement [Line Items]	'		'	'
Deferred revenue, current portion	$58,598		'	$54,541
Deferred revenue, net of current portion	56,329	[1]	'	59,951	[1]
Total deferred revenues	114,927		'	114,492
Costs incurred to fulfill obligations	5,500		6,000	'
Magicjack Product Line [Member]	'		'	'
Deferred Revenue Arrangement [Line Items]	'		'	'
Deferred revenue, current portion	9,190		'	14,855
Access Right Renewals [Member]	'		'	'
Deferred Revenue Arrangement [Line Items]	'		'	'
Deferred revenue, current portion	46,889		'	37,108
Prepaid Minutes [Member]	'		'	'
Deferred Revenue Arrangement [Line Items]	'		'	'
Deferred revenue, current portion	$2,519		'	$2,578
[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) (Capital Addition Purchase Commitments, Intangibles [Member], USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Capital Addition Purchase Commitments, Intangibles [Member]	'	'
Recorded Unconditional Purchase Obligation [Line Items]	'	'
Current year payment for intangible assets	$1,500	'
Second year payment for intangible assets	1,500	'
Present value of liability	2,800	2,800
Discount rate	10.00%	'
Current portion of debt	1,500	1,500
Non-current portion of debt	$1,300	$1,300

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Details) (USD $)	1 Months Ended
In Thousands, unless otherwise specified	Jun. 04, 2013	Mar. 31, 2014	Mar. 31, 2014
		Minimum [Member]	Maximum [Member]
Loss Contingencies [Line Items]	'	'	'
Damages being sought	$5,900	'	'
Additional potential liability	'	'	$2,500

TREASURY_STOCK_AND_FAIR_VALUE_2

TREASURY STOCK AND FAIR VALUE (LOSS) GAIN ON COMMON EQUITY PUT OPTIONS (Details) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
TREASURY STOCK AND FAIR VALUE (LOSS) GAIN ON COMMON EQUITY PUT OPTIONS [Abstract]	'	'
Stock repurchase plan, authorized amount	$100,000	'
The total amount expended under the stock repurchase program since inception of the program	91,300	'
Available funds to purchase ordinary shares	8,700	'
Value of shares repurchased	'	3,300
Number of shares repurchased	'	190,000
Share price	'	$17.27
Common stock price per share	$12.32	$15.54
Number	'	'
Balance, beginning of period	7,202,242	'
Ordinary shares issued due to vesting of restricted stock units	-2,015	-32,129
Balance, end of period	7,200,227	'
Amount	'	'
Balance, beginning of period	108,151	'
Ordinary shares issued due to vesting of restricted stock units	-25	-500
Balance, end of period	108,126	'
Treasury stock, fair value	'	$400
Treasury stock, fair value, price per share	'	$12.45

SHAREBASED_COMPENSATION_Narrat

SHARE-BASED COMPENSATION (Narrative) (Details) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Options authorized	2,250,000	'
Share-based compensation	$2,669	$400
Ordinary share options [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Options, contractual term	'5 years	'
Share-based compensation	2,439	'
Intrinsic value of options exercised during the period	17	'
Unrecognized compensation expense	8,200	'
Expected cost period to be recognized	'2 years 18 days	'
Weighted-average fair value of options granted	$5.71	'
Ordinary share options [Member] | Minimum [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Vesting period	'24 months	'
Ordinary share options [Member] | Maximum [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Options, contractual term	'10 years	'
Vesting period	'36 months	'
Restricted stock units [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Share-based compensation	230	'
Unrecognized compensation expense	$1,700	'
Expected cost period to be recognized	'1 year 5 months 5 days	'

SHAREBASED_COMPENSATION_Schedu

SHARE-BASED COMPENSATION (Schedule of Share-Based Compensation Expense) (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Share-based issuances and compensation	$2,669	$400
Ordinary share options [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Share-based issuances and compensation	2,439	'
Restricted stock units [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Share-based issuances and compensation	230	'
Ordinary shares [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Share-based issuances and compensation	'	$400

SHAREBASED_COMPENSATION_Schedu1

SHARE-BASED COMPENSATION (Schedule of Stock-Based Compensation by Income Statement Classification) (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Share-based issuances and compensation	$2,669	$400
Cost of revenues [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Share-based issuances and compensation	225	'
Advertising [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Share-based issuances and compensation	712	'
General and administrative [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Share-based issuances and compensation	1,471	400
Research and development [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Share-based issuances and compensation	$261	'

SHAREBASED_COMPENSATION_Schedu2

SHARE-BASED COMPENSATION (Schedule of Stock Option Activity) (Details) (USD $)	3 Months Ended		12 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
Number of Options	'		'		'
Beginning Balance	1,285,207		11,500		'
Granted	492,500		1,274,607		'
Exercised	-1,990		-900		'
Expired or cancelled	-30		'		'
Ending Balance	1,775,687		1,285,207		11,500
Vested at March 31, 2014	381,520		'		'
Weighted Average Exercise Price	'		'		'
Beginning Balance	$14.95		$6.25		'
Granted	$13.60		$15.04		'
Exercised	$8.35		$0.45		'
Expired or cancelled	$147.55		$0		'
Ending Balance	$14.58		$14.95		$6.25
Vested at March 31, 2014	$15.25		'		'
Weighted Average Remaining Contractual Term	'		'		'
Beginning balance	'4 years 5 months 19 days		'4 years 4 months 28 days		'7 years 1 month 17 days
Ending balance	'4 years 5 months 19 days		'4 years 4 months 28 days		'7 years 1 month 17 days
Vested at March 31, 2014	'4 years 2 months 19 days		'		'
Aggregate Intrinsic Value	'		'		'
Beginning balance	'	[1]	$165	[1]	'
Ending balance	11,808	[1]	'	[1]	165	[1]
Vested at March 31, 2014	$2,281	[1]	'		'
[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.

SHAREBASED_COMPENSATION_Schedu3

SHARE-BASED COMPENSATION (Schedule of Fair Value Assumptions) (Details)	3 Months Ended
	Mar. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Dividend yield	0.00%
Forfeiture rate	0.00%
Minimum [Member]	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Expected term	'3 years 2 months 12 days
Expected volatility	57.20%
Risk free interest rate	1.44%
Maximum [Member]	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Expected term	'3 years 6 months
Expected volatility	57.30%
Risk free interest rate	1.64%

SHAREBASED_COMPENSATION_Schedu4

SHARE-BASED COMPENSATION (Schedule of Restricted Stock Unit Activity) (Details) (USD $)	3 Months Ended
	Mar. 31, 2014
Number of Shares	'
31-Dec-13	154,746
Granted	'
Vested	-2,015
Forfeited	'
Non-vested at March 31, 2014	152,731
Average Fair Value at Grant Date	'
31-Dec-13	$14.08
Granted	$0
Vested	$14.42
Forfeited	$0
Non-vested at March 31, 2014	$14.08

INCOME_TAXES_Details

INCOME TAXES (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
INCOME TAXES [Abstract]	'	'
Income before taxes	$7,583	$14,784
Income tax expense	$2,264	$5,198
Effective income tax rate	29.86%	35.16%

INCOME_PER_SHARE_Details

INCOME PER SHARE (Details) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
INCOME PER SHARE [Abstract]	'	'
Net income	$5,319	$9,586
Denominator for basic net income per share - weighted average ordinary shares outstanding	17,827	18,685
Effect of dilutive options to purchase ordinary shares	'	9
Effect of dilutive options or restricted stock units vesting, exercised or expired during the year	3	'
Denominator for diluted net income per share - weighted average ordinary shares outstanding	17,830	18,694
Basic	$0.30	$0.51
Diluted	$0.30	$0.51