Document_And_Entity_Informatio
Document And Entity Information | 12 Months Ended |
Dec. 31, 2013 | |
Document Information [Line Items] | ' |
Entity Registrant Name | 'AUDIOCODES LTD |
Entity Central Index Key | '0001086434 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Accelerated Filer |
Trading Symbol | 'AUDC |
Entity Common Stock, Shares Outstanding | 38,733,989 |
Document Type | '20-F |
Amendment Flag | 'false |
Document Period End Date | 31-Dec-13 |
Document Fiscal Period Focus | 'FY |
Document Fiscal Year Focus | '2013 |
Entity Well-known Seasoned Issuer | 'No |
Entity Voluntary Filers | 'No |
Entity Current Reporting Status | 'Yes |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $30,763 | $15,219 |
Short-term and restricted bank deposits | 9,101 | 10,330 |
Short-term marketable securities and accrued interest | 15,706 | 7,966 |
Trade receivables (net of allowance for doubtful accounts of $ 2,146 and $ 2,347 at December 31, 2012 and 2013, respectively) | 26,431 | 24,198 |
Other receivables and prepaid expenses | 3,922 | 5,653 |
Deferred income tax assets, net | 2,277 | 1,621 |
Inventories | 13,811 | 16,797 |
Total current assets | 102,011 | 81,784 |
LONG-TERM ASSETS: | ' | ' |
Long-term and restricted bank deposits and accrued interest | 6,697 | 9,251 |
Long-term marketable securities | 0 | 15,762 |
Investment in an affiliated company | 0 | 1,084 |
Deferred income tax assets, net | 4,855 | 3,565 |
Severance pay funds | 19,549 | 15,772 |
Total long-term assets | 31,101 | 45,434 |
PROPERTY AND EQUIPMENT, NET | 3,191 | 3,619 |
INTANGIBLE ASSETS, NET | 4,252 | 2,857 |
GOODWILL | 33,749 | 32,095 |
Total assets | 174,304 | 165,789 |
CURRENT LIABILITIES: | ' | ' |
Short-term bank loan and current maturities of long-term bank loans | 4,686 | 8,436 |
Trade payables | 7,215 | 6,817 |
Senior convertible notes | 353 | 0 |
Other payables and accrued expenses | 17,958 | 15,062 |
Deferred revenues | 6,940 | 4,871 |
Total current liabilities | 37,152 | 35,186 |
LONG-TERM LIABILITIES: | ' | ' |
Accrued severance pay | 19,845 | 16,284 |
Senior convertible notes | 0 | 353 |
Long-term banks loans | 9,791 | 14,477 |
Deferred revenues and other liabilities | 2,707 | 1,192 |
Total long-term liabilities | 32,343 | 32,306 |
COMMITMENTS AND CONTINGENT LIABILITIES | ' | ' |
EQUITY: | ' | ' |
Ordinary shares of NIS 0.01 par value - Authorized: 100,000,000 shares at December 31, 2012 and 2013; Issued: 49,332,510 shares at and 50,090,696 shares at December 31, 2012 and 2013, respectively; Outstanding: 37,975,803 shares and 38,733,989 shares at December 31, 2012 and 2013, respectively | 114 | 112 |
Additional paid-in capital | 201,248 | 197,653 |
Treasury stock at cost- 11,356,707 shares as of December 31, 2012 and 2013 | -35,768 | -35,768 |
Accumulated other comprehensive income | 0 | 1,303 |
Accumulated deficit | -60,785 | -65,003 |
Total equity | 104,809 | 98,297 |
Total liabilities and equity | $174,304 | $165,789 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts receivable (in dollars) | $2,347 | $2,146 |
Ordinary shares, par value (in dollars per share) | $0.01 | $0.01 |
Ordinary shares, shares authorized | 100,000,000 | 100,000,000 |
Ordinary shares, shares issued | 50,090,696 | 49,332,510 |
Ordinary shares, shares outstanding | 38,733,989 | 37,975,803 |
Treasury stock, shares | 11,356,707 | 11,356,707 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues: | ' | ' | ' |
Products | $111,750 | $103,651 | $135,802 |
Services | 25,482 | 23,839 | 20,025 |
Total revenues | 137,232 | 127,490 | 155,827 |
Cost of revenues: | ' | ' | ' |
Products | 51,996 | 48,371 | 59,917 |
Services | 6,568 | 5,923 | 4,228 |
Total cost of revenues | 58,564 | 54,294 | 64,145 |
Gross profit | 78,668 | 73,196 | 91,682 |
Operating expenses: | ' | ' | ' |
Research and development, net | 28,194 | 28,677 | 32,150 |
Selling and marketing | 39,279 | 40,040 | 43,248 |
General and administrative | 8,456 | 8,214 | 9,028 |
Total operating expenses | 75,929 | 76,931 | 84,426 |
Operating income (loss) | 2,739 | -3,735 | 7,256 |
Financial income , net | 96 | 453 | 423 |
Income (loss) before taxes on income | 2,835 | -3,282 | 7,679 |
Income tax benefit (expense), net | 1,404 | -541 | -238 |
Equity in losses of an affiliated company | -21 | -354 | -277 |
Net income (loss) | $4,218 | ($4,177) | $7,164 |
Earnings (loss) per share: | ' | ' | ' |
Basic (in dollars per share) | $0.11 | ($0.11) | $0.17 |
Diluted (in dollars per share) | $0.11 | ($0.11) | $0.17 |
Weighted average number of shares used in per share computations of earnings (loss): | ' | ' | ' |
Basic (in shares) | 38,241,258 | 39,125,129 | 41,437,927 |
Diluted (in shares) | 39,096,758 | 39,125,129 | 41,935,097 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net income (loss) | $4,218 | ($4,177) | $7,164 |
Other comprehensive income (loss) (bOCIb), related to: | ' | ' | ' |
Gain (loss) on derivatives recognized in OCI | 1,292 | 1,211 | -205 |
Loss (gain) on derivatives (effective portion) recognized in income | -2,595 | 332 | -857 |
Other comprehensive income (loss), related to unrealized gains (loss) on cash flow hedges | -1,303 | 1,543 | -1,062 |
Total comprehensive income (loss) | $2,915 | ($2,634) | $6,102 |
STATEMENTS_OF_CHANGES_IN_EQUIT
STATEMENTS OF CHANGES IN EQUITY (USD $) | Total | Share capital [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Defecit [Member] |
In Thousands | ||||||
Balance at Dec. 31, 2010 | $99,180 | $128 | $191,277 | ($25,057) | $822 | ($67,990) |
Purchase of treasury stock | -4,009 | -11 | 0 | -3,998 | 0 | 0 |
Issuance of shares upon exercise of options and employee stock purchase plan | 1,705 | 2 | 1,703 | 0 | 0 | 0 |
Stock compensation related to options granted to employees | 3,041 | 0 | 3,041 | 0 | 0 | 0 |
Other comprehensive (loss) income | -1,062 | 0 | 0 | 0 | -1,062 | 0 |
Net income (loss) | 7,164 | 0 | 0 | 0 | 0 | 7,164 |
Balance at Dec. 31, 2011 | 106,019 | 119 | 196,021 | -29,055 | -240 | -60,826 |
Purchase of treasury stock | -6,720 | -7 | 0 | -6,713 | 0 | 0 |
Issuance of shares upon exercise of options and employee stock purchase plan | 103 | 0 | 103 | 0 | 0 | 0 |
Stock compensation related to options granted to employees | 1,529 | 0 | 1,529 | 0 | 0 | 0 |
Other comprehensive (loss) income | 1,543 | 0 | 0 | 0 | 1,543 | 0 |
Net income (loss) | -4,177 | 0 | 0 | 0 | 0 | -4,177 |
Balance at Dec. 31, 2012 | 98,297 | 112 | 197,653 | -35,768 | 1,303 | -65,003 |
Issuance of shares upon exercise of options and employee stock purchase plan | 1,896 | 2 | 1,894 | 0 | 0 | 0 |
Stock compensation related to options granted to employees | 1,701 | 0 | 1,701 | 0 | 0 | 0 |
Other comprehensive (loss) income | -1,303 | 0 | 0 | 0 | -1,303 | 0 |
Net income (loss) | 4,218 | 0 | 0 | 0 | 0 | 4,218 |
Balance at Dec. 31, 2013 | $104,809 | $114 | $201,248 | ($35,768) | $0 | ($60,785) |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income (loss) | $4,218 | ($4,177) | $7,164 |
Adjustments required to reconcile net income (loss) to net cash provided by or used in operating activities: | ' | ' | ' |
Depreciation and amortization | 3,207 | 2,883 | 3,239 |
Amortization of marketable securities premiums and accretion of discounts, net | 349 | 436 | 416 |
Equity in losses of an affiliated company, net of interest on loans to an affiliated company | 21 | 350 | 277 |
Stock-based compensation | 1,701 | 1,529 | 2,323 |
Decrease (increase) in accrued interest on loans, marketable securities and bank deposits | 73 | 4 | -182 |
Decrease (increase) in deferred income tax assets, net | -1,946 | 14 | -652 |
Decrease (increase) in trade receivables, net | -2,254 | 6,725 | -4,602 |
Decrease (increase) in other receivables and prepaid expenses | 110 | 127 | -403 |
Decrease (increase) in inventories | 2,986 | 3,618 | -4,136 |
Increase (decrease) in trade payables | 403 | -5,545 | -1,157 |
Increase (decrease) in other payables and accrued expenses and other liabilities | 2,577 | -3,054 | -5,464 |
Increase in deferred revenues | 3,138 | 270 | 1,978 |
Decrease in accrued severance pay, net | -495 | -184 | -86 |
Net cash provided by (used in) operating activities | 14,088 | 2,996 | -1,285 |
Cash flows from investing activities: | ' | ' | ' |
Net loans provided to an affiliated company | -1,211 | -183 | -211 |
Purchase of property and equipment | -1,586 | -2,006 | -1,579 |
Purchase of marketable securities | 0 | 0 | -24,402 |
Short-term and restricted bank deposits, net | 1,229 | 3,678 | -183 |
Proceeds from redemption of marketable securities upon maturity | 7,600 | 0 | 0 |
Proceeds from redemption of long-term bank deposits | 2,623 | ' | ' |
Investment in long-term and restricted bank deposits | 0 | -131 | -9,120 |
Net cash provided by (used in) investing activities | 8,655 | 1,358 | -35,495 |
Cash flows from financing activities: | ' | ' | ' |
Purchase of treasury stock | 0 | -6,917 | -3,812 |
Proceeds from long-term bank loans | 0 | 0 | 24,005 |
Repayment of long-term bank loans | -8,436 | -10,242 | -6,600 |
Payment for acquisition of NSC non-controlling interest | -515 | -336 | -278 |
Proceeds from issuance of shares upon exercise of options, warrants and employee stock purchase plan | 1,752 | 103 | 1,411 |
Net cash provided by (used in) financing activities | -7,199 | -17,392 | 14,726 |
Increase (decrease) in cash and cash equivalents | 15,544 | -13,038 | -22,054 |
Cash and cash equivalents at the beginning of the year | 15,219 | 28,257 | 50,311 |
Cash and cash equivalents at the end of the year | 30,763 | 15,219 | 28,257 |
Supplemental disclosure of cash flow activities: | ' | ' | ' |
Cash paid during the year for income taxes | 429 | 313 | 848 |
Cash paid during the year for interest | 583 | 789 | 356 |
Supplemental disclosures of non cash operational, financing and investing activities | ' | ' | ' |
Net change in gain (loss) on foreign currency cash flow hedges | -1,303 | 1,543 | -1,062 |
Total commitment in respect of treasury stock purchasing | 0 | 0 | 197 |
Conversion of employees stock purchase plan liability to equity upon issuance of shares | $0 | $0 | $294 |
GENERAL
GENERAL | 12 Months Ended | ||
Dec. 31, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Nature of Operations [Text Block] | ' | ||
NOTE 1:- GENERAL | |||
a. | Business overview: | ||
AudioCodes Ltd. ("the Company") and its subsidiaries (together the "Group") design, develop and market products and services for voice, data and video over IP networks to service providers and channels (such as distributors), OEMs, network equipment providers and systems integrators. | |||
The Company operates through its wholly-owned subsidiaries in the United States, Europe, Asia, Latin America and Israel. | |||
b. | Acquisition of Natural Speech Communication Ltd. ("NSC"): | ||
In January 2010, the Company entered into an agreement to acquire all of the outstanding equity of NSC that it did not own as of December 31, 2009. The closing of this transaction occurred in May 2010. | |||
The liability recorded was comprised of two components: (1) the contingent payments for which the Company recorded a contingent consideration liability of $ 329 based on its estimated fair value as of the closing of the transaction (the "Contingent Payment"). This amount was estimated by utilizing an income approach, taking into account the potential cash payments based on the Company's expectation as to NSC's future revenues in each of the years ended December 31, 2010, 2011 and 2012, and was discounted to arrive at a present value amount. The discount rate was based on the market interest rate and NSC's estimated operational capitalization rate. The Contingent Payment liability was marked to market at fair value at each reporting date based on the Company's policy with subsequent changes in the value of the liability recorded in financial expenses in the statement of operations, while changes due to changes in estimates were recorded within operating income or expenses and (2) a liability with respect to the commitment for future payments was recorded at present value which amounted to $ 967 (the "Committed Payment"). The Committed Payment liability is not re-measured at subsequent periods and would only be adjusted for changes in time value. | |||
As of December 31, 2012, the Committed Payment liability estimated fair value amounted to $ 391 and the Contingent Payment liability amounted to $ 115. During 2013, $ 395 was paid with respect to the Committed Payment liability and $ 120 was paid in respect of the Contingent Payment liability, since certain aggregate revenue milestones were met for the years ended December 31, 2010, 2011 and 2012. | |||
c. | Asset Purchase Agreement with Mailvision Ltd ("Mailvision"): | ||
In April 2013, the Company entered into an asset purchase agreement with Mailvision, an Israeli company which develops, markets and licenses VoIP solutions for mobile, PC and tablet devices for telecom operators and service providers, in which the Company held 29.2% of the outstanding share capital. Pursuant to the agreement, in May 2013, the Company acquired certain assets and assumed certain liabilities of Mailvision, (see also Note 3). | |||
d. | The Group is dependent upon sole source suppliers for certain key components used in its products, including certain digital signal processing chips. Although there are a limited number of manufacturers of these particular components, management believes that other suppliers could provide similar components at comparable terms. A change in suppliers, however, could cause a delay in manufacturing and a possible loss of sales, which could adversely affect the operating results of the Group and its financial position. | ||
e. | The Group's major customer in the years ended December 31, 2011, 2012 and 2013, accounted for 14.4%, 13.7% and 17.8%, respectively, of the total revenues in those years. No other customer accounted for more than 10% of the Group's revenues in those periods. | ||
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Accounting Policies [Abstract] | ' | ||||||||||
Significant Accounting Policies [Text Block] | ' | ||||||||||
NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"). | |||||||||||
a. | Use of estimates: | ||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements and accompanying notes. The Company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. As applicable to these consolidated financial statements, the most significant estimates and assumptions relate to revenue recognition and allowance for sales returns, allowance for doubtful accounts, inventories, intangible assets, goodwill, income taxes and related valuation allowance, stock-based compensation and contingent liabilities. Actual results could differ from those estimates. | |||||||||||
b. | Financial statements in U.S. dollars ("dollars"): | ||||||||||
A majority of the Group's revenues is generated in dollars. In addition, most of the Group's costs are denominated and determined in dollars and in new Israeli shekels. The Company's management believes that the dollar is the currency in the primary economic environment in which the Group operates. Thus, the functional and reporting currency of the Group is the dollar. | |||||||||||
Accordingly, monetary accounts maintained in currencies other than the dollar are remeasured into U.S. dollars in accordance with Accounting Standards Codification ("ASC”) 830, "Foreign Currency Matters". All transaction gains and losses of the remeasured monetary balance sheet items are reflected in the statements of operations as financial income or expenses, as appropriate. | |||||||||||
c. | Principles of consolidation: | ||||||||||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany transactions and balances, including profits from intercompany sales not yet realized outside the Group, have been eliminated upon consolidation. | |||||||||||
d. | Cash equivalents: | ||||||||||
Cash equivalents represent short-term highly liquid investments that are readily convertible into cash with original maturities of three months or less, at the date acquired. | |||||||||||
e. | Short-term and restricted bank deposits: | ||||||||||
Short-term and restricted bank deposits are deposits with maturities of more than three months, but less than one year. The deposits are mainly in dollars and bear interest at an average rate of 0.81% and 0.97% for the years ended December 31, 2012 and 2013, respectively. Short-term and restricted deposits are presented at their cost. Any accrued interest on these deposits is included in other receivables and prepaid expenses. | |||||||||||
In connection with the long-term bank loans and their related covenants, the Company is required to maintain compensating balances with the banks and to maintain deposits in the same banks that provided the loans (see Note 12). In addition, the Company maintains restricted deposits in connection with foreign exchange derivatives, guarantees for prepayment of account receivables and an office lease agreement (see also Note 13a). Out of the short-term and restricted bank deposits, a total of $ 10,330 and $ 7,321 are restricted short-term deposits as of December 31, 2012 and 2013, respectively. | |||||||||||
f. | Marketable securities: | ||||||||||
The Company accounts for investments in debt securities in accordance with ASC 320, "Investments-Debt and Equity Securities". | |||||||||||
Management determines the appropriate classification of its investments in marketable debt securities at the time of purchase and reevaluates such determinations at each balance sheet date. For the years ended December 31, 2012 and 2013, all securities are classified as held-to-maturity since the Company has the intent and ability to hold the securities to maturity and, accordingly, debt securities are stated at amortized cost. | |||||||||||
The amortized cost of held-to-maturity securities is adjusted for amortization of premiums and accretion of discounts to maturity and any other than temporary impairment losses. Such amortization and interest are included in the consolidated statement of operations as financial income or expenses, as appropriate. | |||||||||||
For the years ended December 31, 2011, 2012 and 2013, no other than temporary impairment losses have been identified. | |||||||||||
g. | Inventories: | ||||||||||
Inventories are stated at the lower of cost or market value. Cost is determined as follows: | |||||||||||
Raw materials - using the "weighted average cost" method. | |||||||||||
Finished products - using the "weighted average cost" method with the addition of direct manufacturing costs. | |||||||||||
The Group periodically evaluates the quantities on hand relative to current and historical selling prices, historical and projected sales volume and technological obsolescence. Based on these evaluations, inventory write-offs are taken based on slow moving items, technological obsolescence, excess inventories, discontinuation of products lines and for market prices lower than cost. | |||||||||||
h. | Long-term and restricted bank deposits: | ||||||||||
Bank deposits and the related accrued interest with maturities of more than one year are included in long-term investments and presented at their cost. Accrued interest that is paid within a one year period is included in other receivables and prepaid expenses. The deposits are denominated in dollars and bear interest at an average rate of 2.54% and 2.57% for the years ended December 31, 2012 and 2013, respectively. In connection with the long-term bank loans, the Company is required to maintain compensating balances with the banks (see also Note 12). Out of the total long-term bank deposits, a total of $ 9,251 and $ 6,596 are restricted long-term deposits as of December 31, 2012 and 2013, respectively. The Company is required to maintain deposits in the same banks that provided the loans. | |||||||||||
i. | Investment in an affiliated company: | ||||||||||
The Company accounts for investment in affiliated company in which it has the ability to exercise significant influence over the operating and financial policies, using the equity method of accounting in accordance with the requirements of ASC 323, "Investments - Equity Method and Joint Ventures". | |||||||||||
Investment in affiliated company represents investment in ordinary shares, preferred shares, convertible loans and non-convertible loans. According to ASC 323, additional losses of such company in excess of the carrying amount of the equity investment are recognized based on the seniority level (priority in liquidation) of the particular type of investment held by the Company. | |||||||||||
The Company's investment is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable in accordance with ASC 323. During the years ended December 31, 2011, 2012 and 2013, no impairment losses had been identified. In May 2013, the Company acquired the activity of the affiliated company. (see also Note 3). | |||||||||||
j. | Property and equipment: | ||||||||||
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets, at the following annual rates: | |||||||||||
% | |||||||||||
Computers and peripheral equipment | 33 | ||||||||||
Office furniture and equipment | 6 - 20 (mainly 15%) | ||||||||||
Leasehold improvements | Over the shorter of the term of | ||||||||||
the lease or the useful life of the asset | |||||||||||
The Group's long-lived assets are reviewed for impairment in accordance with ASC 360-10-35, "Property, Plant and Equipment - Subsequent Measurement", whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. Recoverability of assets (asset group) to be held and used is measured by a comparison of the carrying amount of an asset (asset group) to the future undiscounted cash flows expected to be generated by the asset if such assets are considered to be impaired. The impairment to be recognized is measured by the amount by which the carrying amount of the assets (asset groups) exceeds the fair value of the assets (asset groups). The loss is allocated to the long-lived assets of the Group on a pro rata basis using the relative carrying amounts of those assets, except that the loss allocated to an individual long-lived asset of the Group will not reduce the carrying amount of that asset below its fair value whenever that fair value is determinable. During the years ended December 31, 2011, 2012 and 2013, no impairment losses had been identified for property and equipment since the fair value of those assets (asset groups) was higher than its carrying amounts. | |||||||||||
k. | Intangible assets: | ||||||||||
Intangible assets are comprised of acquired technology, customer relations, trade names and existing contracts for maintenance. | |||||||||||
Intangible assets that are not considered to have an indefinite useful life are amortized using the straight-line basis over their estimated useful lives, which range from three to ten years. Recoverability of these assets is measured by a comparison of the carrying amount of the asset to the undiscounted future cash flows expected to be generated by the assets. If the assets are considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired assets. | |||||||||||
During the years ended December 31, 2011, 2012 and 2013, no impairment losses were identified. | |||||||||||
l. | Goodwill: | ||||||||||
Goodwill and certain other purchased intangible assets have been recorded as a result of acquisitions. Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill is not amortized, but rather is subject to an impairment test. | |||||||||||
The Group performs an annual impairment test during the fourth quarter of each fiscal year, or more frequently if impairment indicators are present. The Group operates in one operating segment, and this segment comprises its only reporting unit. | |||||||||||
ASC 350, "Intangibles – Goodwill and Other", prescribes a two-phase process for impairment testing of goodwill. The first phase screens for impairment, while the second phase (if necessary) measures impairment. Goodwill impairment is deemed to exist if the net book value of a reporting unit exceeds its estimated fair value. In such case, the second phase is then performed, and the Group measures impairment by comparing the carrying amount of the reporting unit's goodwill to the implied fair value of that goodwill. An impairment loss is recognized in an amount equal to the excess. The Group has an option to perform a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount prior to performing the two-step goodwill impairment test. If this is the case, the two-step goodwill impairment test is required. If it is more-likely-than-not that the fair value of a reporting unit is greater than its carrying amount, the two-step goodwill impairment test is not required. | |||||||||||
In addition, pursuant to ASC 350 an entity is allowed to perform a qualitative impairment assessment. If the entity determines that it is not more likely than not that the fair value of the reporting unit is less than the carrying amount, further testing of indefinite-lived intangible assets for impairment is not required and the entity would not need to calculate the fair value of the asset and perform a quantitative impairment test. The Group performed a quantitative impairment test during the year ended December 31, 2013. | |||||||||||
For each of the three years in the period ended December 31, 2013, the Group performed an annual impairment analysis, using market capitalization, and no impairment losses have been identified. | |||||||||||
m. | Revenue recognition: | ||||||||||
The Group generates its revenues primarily from the sale of products through a direct sales force and sales representatives. The Group's products are delivered to its customers, which include original equipment manufacturers, network equipment providers, systems integrators and distributors in the telecommunications and networking industries, all of whom are considered end-users. | |||||||||||
Revenues from products and services are recognized in accordance with Staff Accounting Bulletin ("SAB") No. 104, "Revenue Recognition", when the following criteria are met: persuasive evidence of an arrangement exists, delivery of the product has occurred, the fee is fixed or determinable, and collectability is probable. The Group has no remaining obligation to customers after the date on which products are delivered other than pursuant to warranty obligations and right of return. | |||||||||||
In a multiple element arrangement, Accounting Standards Update ("ASU”) No. 2009-13, Topic 605 - "Multiple-Deliverable Revenue Arrangements" requires the allocation of arrangement consideration to each deliverable to be based on the relative selling price. | |||||||||||
The selling price for a deliverable is based on its vendor-specific objective evidence ("VSOE") if available, third-party evidence ("TPE") if VSOE is not available, or estimated selling price ("ESP") if neither VSOE nor TPE is available. The Group then recognizes revenue on each deliverable in accordance with its policies for product and service revenue recognition. VSOE of selling price is based on the price charged when the element is sold separately. In determining VSOE, the Group requires that a substantial majority of the selling prices fall within a narrow range based on stand-alone rates. TPE of selling price is established by evaluating largely interchangeable competitor products or services in stand-alone sales to similarly situated customers. However, as the Group's products contain a significant element of proprietary technology and its solutions offer substantially different features and functionality, the comparable pricing of products with similar functionality typically cannot be obtained. Additionally, as the Group is unable to reliably determine what competitors products' selling prices are on a stand-alone basis, the Group is not typically able to determine TPE. The ESP is established considering multiple factors including, but not limited to, pricing practices in different geographical areas and through different sales channels, gross margin objectives, internal costs, competitors' pricing strategies, and industry technology lifecycles. The selling price of the products and professional services was based on ESP. Maintenance selling price was based on VSOE. | |||||||||||
The Group limits the amount of revenue recognition for delivered elements to the amount that is not contingent on the future delivery of products or services or subject to customer- specific return or refund privileges. The Group evaluates each deliverable in an arrangement to determine whether they represent separate units of accounting. | |||||||||||
The Group grants to certain customers a right of return or the ability to exchange a specific percentage of the total price paid for products they have purchased over a limited period for other products. The Group maintains a provision for product returns and exchanges and other incentives based on its experience with historical sales returns, analysis of credit memo data and other known factors, in accordance with SAB 104. The provision was deducted from revenues and amounted to $ 1,232 and $ 1,288 as of December 31, 2012 and 2013, respectively. | |||||||||||
Revenues from the sale of products which were not yet determined to be final sales due to acceptance provisions are deferred and included in deferred revenues. In cases where collectability is not probable, revenues are deferred and recognized upon collection. | |||||||||||
n. | Warranty costs: | ||||||||||
The Group generally provides a warranty period of 12 months at no extra charge. The Group estimates the costs that may be incurred under its basic limited warranty and records a liability in the amount of such costs at the time product revenue is recognized. Factors that affect the Group's warranty liability include the number of installed units, historical and anticipated rates of warranty claims, and cost per claim. The Group periodically assesses the adequacy of its recorded warranty liability and adjusts the amount as necessary. As of December 31, 2012 and 2013, the provision for warranty amounted to $ 497 and $ 406, respectively. | |||||||||||
o. | Research and development costs: | ||||||||||
Research and development costs, net of government grants received, are charged to the statement of operations as incurred. The total government grants presented as a reduction from research and development expenses during the years ended December 31, 2011, 2012 and 2013 were $ 2,776, $ 2,729 and $ 2,799, respectively. | |||||||||||
p. | Income taxes: | ||||||||||
The Group accounts for income taxes in accordance with ASC 740, "Income Taxes". ASC 740 prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and for carry forward losses. Deferred taxes are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Group records a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value if it is more likely than not that some portion or all of the deferred tax asset will not be realized. | |||||||||||
In addition, ASC 740 prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The first step is to evaluate the tax position taken or expected to be taken in a tax return. This is done by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. | |||||||||||
Interest and penalties assessed by taxing authorities on an underpayment of income taxes are included as a component of income tax expense in the consolidated statements of operations. | |||||||||||
q. | Comprehensive income (loss): | ||||||||||
The Group accounts for comprehensive income (loss) in accordance with ASC 220, "Comprehensive Income". ASC 220 establishes standards for the reporting and display of comprehensive income and its components in a full set of general purpose financial statements. Comprehensive income (loss) generally represents all changes in shareholders' equity during the period except those resulting from investments by, or distributions to, shareholders. The Group determined that its items of comprehensive income (loss) relate to gains and losses on hedging derivatives instruments. | |||||||||||
The Group presents total comprehensive income (loss) in accordance with ASU 2011-05, Topic 220. "Presentation of Comprehensive Income" and ASU 2011-12, Topic 220 - Comprehensive Income. ASU 2011-05 requires an entity to present, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements and eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders' equity. The Company chose to present the components of net income and other comprehensive income in two separate but consecutive statements. | |||||||||||
During the year ended December 31, 2013, the Company adopted ASU. 2013-02, Topic 350, "Comprehensive Income", which amends Topic 220 to improve the reporting of reclassifications out of accumulated other comprehensive income to the respective line items in net income. The adoption of ASU 2013-02, Topic 350 did not have a material impact on the consolidated financial statements. | |||||||||||
r. | Concentrations of credit risk: | ||||||||||
Financial instruments that potentially subject the Group to concentrations of credit risk consist principally of cash and cash equivalents, bank deposits, trade receivables and foreign currency derivative contracts. | |||||||||||
The majority of the Group's cash and cash equivalents and bank deposits are invested in dollar instruments with major banks in Israel and the United States. Such investments in the United States may be in excess of insured limits and are not insured in other jurisdictions. Management believes that the financial institutions that hold the Group's investments are corporations with high credit standing. Accordingly, management believes that low credit risk exists with respect to these financial investments. | |||||||||||
Marketable securities include investments in debentures of U.S corporations. Marketable securities consist of highly liquid debt instruments of corporations with high credit standing. Management believes that the portfolio is well diversified and, accordingly, minimal credit risk exists with respect to these marketable debt securities. | |||||||||||
The trade receivables of the Group are derived from sales to customers located primarily in the Americas, the Far East, Israel and Europe. However, under certain circumstances, the Group may require letters of credit, other collateral, additional guarantees or advance payments. Regarding certain credit balances, the Group is covered by foreign trade risk insurance. The Group performs ongoing credit evaluations of its customers and establishes an allowance for doubtful accounts based upon a specific review. | |||||||||||
s. | Senior convertible notes: | ||||||||||
The Company accounts for senior convertible notes in accordance with ASC 470-20, "Debt with Conversion and Other Options". ASC 470-20 specifies that issuers of such instruments should separately account for the liability and equity components on the issuance day in a manner that will reflect the entity's nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. See also Note 11. | |||||||||||
The Company presents the outstanding principal amount of its senior convertible notes as a long-term liability, in accordance with ASC 210-10-45, "Other Presentation Matters", (based on its expected redemption, taking into consideration redemption options of the holders). The debt is classified as a long-term liability until the date of conversion on which it would be reclassified to equity, or within one year of the first contractual redemption date, on which it would be reclassified as a short-term liability. Accrued interest on the senior convertible notes is included in "other payables and accrued expenses". | |||||||||||
According to ASC 470-20, if an instrument within its scope is repurchased, an issuer shall allocate the consideration transferred and related transaction costs incurred, to the extinguishment of the liability component and the reacquisition of the equity component. See also Note 11. | |||||||||||
t. | Basic and diluted earnings (loss) per share: | ||||||||||
Basic earnings (loss) per share are computed based on the weighted average number of ordinary shares outstanding during each year. Diluted earnings (loss) per share are computed based on the weighted average number of ordinary shares outstanding during each year, plus potential dilutive ordinary shares considered outstanding during the year, in accordance with ASC 260, "Earnings Per Share". | |||||||||||
Senior convertible notes and certain outstanding stock options, restricted share units ("RSUs") and warrants have been excluded from the calculation of the diluted earnings per share since such securities are anti-dilutive for all years presented. The total weighted average number of shares related to the senior convertible notes and outstanding options, RSUs and warrants that have been excluded from the calculation of diluted earnings (loss) per share was 2,727,374, 4,072,517 and 1,545,867 for the years ended December 31, 2011, 2012 and 2013, respectively. | |||||||||||
u. | Accounting for stock-based compensation: | ||||||||||
The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation-Stock Compensation". ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company's consolidated statement of operations. | |||||||||||
The Company recognizes compensation expenses for the value of its awards based on the accelerated method over the requisite service period of each of the awards, net of estimated forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Estimated forfeitures are based on actual historical pre-vesting forfeitures. | |||||||||||
The Company applies ASC 718 and ASC 505-50, "Equity-Based Payments to Non-Employees" with respect to options and warrants issued to non-employees. Accordingly, the Company uses option valuation models to measure the fair value of the options and warrants at the measurement date as defined in ASC 505-50. | |||||||||||
The Company accounted for changes in award terms as a modification in accordance with ASC 718. A modification to the terms of an award should be treated as an exchange of the original award for a new award with total compensation cost equal to the grant-date fair value of the original award plus the incremental value measured at the same date. Under ASC 718, the calculation of the incremental value is based on the excess of the fair value of the new (modified) award based on current circumstances over the fair value of the original award measured immediately before its terms are modified based on current circumstances. | |||||||||||
The weighted-average estimated fair value of employee stock options granted during the years ended December 31, 2011, 2012 and 2013, was $ 2.69, $ 1.35 and $ 3.00 per share, respectively, using the Black-Scholes option pricing formula. Fair values were estimated using the following weighted-average assumptions (annualized percentages): | |||||||||||
Year ended December 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
Dividend yield | 0% | 0% | 0% | ||||||||
Expected volatility | 53.5%-59.6% | 56.6%-61.5% | 58.9%-61.9% | ||||||||
Risk-free interest | 0.8%-2.04% | 0.54%-1.04% | 0.63%-1.78% | ||||||||
Expected life | 4.67-5.69 years | 4.79-5.70 years | 4.72-5.67 years | ||||||||
Forfeiture rate | 10.00% | 5.50% | 4.00% | ||||||||
The Company used its historical volatility in accordance with ASC 718. The computation of volatility uses historical volatility derived from the Company's exchange traded shares. The expected term of options granted is estimated based on historical experience and represents the period of time that options granted are expected to be outstanding. The risk free interest rate assumption is the implied yield currently available on United States treasury zero-coupon issues with a remaining term equal to the expected life of the Company's options. The dividend yield assumption is based on the Company's historical experience and expectation of no future dividend payouts and may be subject to substantial change in the future. The Company has historically not paid cash dividends and has no foreseeable plans to pay cash dividends in the future. | |||||||||||
The total equity-based compensation expenses relating to all of the Company's equity-based awards recognized for the years ended December 31, 2011, 2012 and 2013 were included in items of the consolidated statements of operations as follows: | |||||||||||
Year ended December 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
Cost of revenues | $ | 130 | $ | 61 | $ | 62 | |||||
Research and development expenses, net | 526 | 430 | 408 | ||||||||
Selling and marketing expenses | 964 | 437 | 625 | ||||||||
General and administrative expenses | 703 | 601 | 606 | ||||||||
Total equity-based compensation expenses | $ | 2,323 | *) | $ | 1,529 | $ | 1,701 | ||||
*) Also includes equity-based compensation that was classified as a liability. | |||||||||||
v. | Treasury stock: | ||||||||||
The Company has repurchased its ordinary shares from time to time in the open market and holds such shares as treasury stock. The Company presents the cost to repurchase treasury stock as a reduction of shareholders' equity. See also Note 14a. | |||||||||||
w. | Severance pay: | ||||||||||
The liability for severance pay for Israeli employees is calculated pursuant to Israel's Severance Pay Law, 1963, based on the most recent salary of the employees multiplied by the number of years of employment as of the balance sheet date for all employees in Israel. Employees who have been employed for more than one year period, are entitled to one month's salary for each year of employment, or a portion thereof. The Group's liability for all of its Israeli employees is fully provided for by monthly deposits with severance pay funds, insurance policies and by an accrual. The value of these deposits is recorded as an asset in the Company's balance sheet. | |||||||||||
The deposited funds include profits accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israel's Severance Pay Law or labor agreements. | |||||||||||
Since March 2011, the Company's agreements with new employees in Israel are under Section 14 of the Israeli Severance Pay Law, 1963. The Company's contributions for severance pay have replaced its severance obligation. Upon contribution of the full amount of the employee's monthly salary for each year of service, no additional calculations are conducted between the parties regarding the matter of severance pay and no additional payments are made by the Company to the employee. The Company is legally released from the obligations to employees once the deposit amounts have been paid. | |||||||||||
Severance pay expenses for the years ended December 31, 2011, 2012 and 2013, amounted to $ 2,162, $ 1,850 and $ 1,878, respectively. | |||||||||||
x. | Employee benefit plan: | ||||||||||
The Group has 401(k) defined contribution plans covering employees in the U.S. All eligible employees may elect to contribute a portion of their annual compensation to the plan through salary deferrals, subject to the IRS limit of $ 17 and $ 17.5 during the years ended December 31, 2012 and 2013, respectively, plus a catch-up contribution of $ 5.5 for participants age 50 or over. The Group matches 50% of employees contributions, up to a maximum of 6% of the employees annual pay. In the years ended December 31, 2011, 2012 and 2013, the Group matched contributions in the amount of $ 301, $ 276 and $ 244, respectively . | |||||||||||
y. | Advertising expenses: | ||||||||||
Advertising expenses are charged to the statements of operations as incurred. Advertising expenses for the years ended December 31, 2011, 2012 and 2013 amounted to $ 442, $ 329 and $ 342, respectively. | |||||||||||
z. | Fair value of financial instruments: | ||||||||||
The estimated fair value of financial instruments has been determined by the Group using available market information and valuation methodologies. Considerable judgment is required in estimating fair values. Accordingly, the estimates may not be indicative of the amounts the Group could realize in a current market exchange. | |||||||||||
The following methods and assumptions were used by the Group in estimating its fair value disclosures for financial instruments: | |||||||||||
The carrying amounts of cash and cash equivalents, short-term bank deposits, trade receivables, trade payables, other receivables and other payables approximate their fair value due to the short-term maturity of such instruments. The fair value of long-term bank loans and senior convertible loans also approximates their carrying value, since they bear interest at rates close to the prevailing market rates. | |||||||||||
The fair value of foreign currency contracts is estimated by obtaining current quotes from banks and market observable data of similar instruments. | |||||||||||
Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC 820, "Fair Value Measurements and Disclosures" establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: | |||||||||||
Level 1 - | Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets | ||||||||||
Level 2 - | Observable inputs, other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data | ||||||||||
Level 3 - | Unobservable inputs which are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs | ||||||||||
The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. See also Note 9. | |||||||||||
aa. | Derivatives and hedging: | ||||||||||
The Group accounts for derivatives and hedging based on ASC 815, "Derivatives and Hedging". | |||||||||||
The Group accounts for its derivative instruments as either assets or liabilities and carries them at fair value. Derivative instruments that are not designated and qualified as hedging instruments must be adjusted to fair value through earnings. The changes in fair value of such instruments are included as earnings in "Financial income, net" at each reporting year. | |||||||||||
For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income (loss) in equity and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings and is classified as payroll and rent expenses. The ineffective portion of the gain or loss on the derivative instrument is recognized in current earnings and classified as financial income or expenses. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. | |||||||||||
During the year ended December 31, 2012, the Group recorded accumulated other comprehensive income in the amount of $ 1,543 from its forward and options collar (cylinder) contracts with respect to payroll expenses which were expected to be incurred during the year ended December 31, 2013. Such amount was classified into earnings during the year ended December 31, 2013. As of December 31, 2013, there are no outstanding forward and options collar (cylinder) contracts. See also Note 19. | |||||||||||
ab. | Impact of recently issued accounting pronouncements: | ||||||||||
In July 2013, the Financial Accounting Standards Board ("FASB") issued ASU. 2013-11, Topic 740, " Income Taxes", which limits the situations in which unrecognized tax benefits are offset against a deferred tax asset for a net operating loss carryforward, similar tax loss or tax credit carryforward. ASU 2013-11 is effective for reporting periods beginning after December 15, 2013. The Company intends to adopt this standard in 2014 and does not expect the adoption will have a material impact on its consolidated results of operations or financial condition. | |||||||||||
ac. | Reclassification: | ||||||||||
Certain amounts in prior years' financial statements have been reclassified to conform to the current year's presentation. | |||||||||||
ASSET_PURCHASE_AGREEMENT_WITH_
ASSET PURCHASE AGREEMENT WITH MAILVISION LTD. ("MAILVISION") | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Business Combinations [Abstract] | ' | |||||||
Business Combination Disclosure [Text Block] | ' | |||||||
NOTE 3:- ASSET PURCHASE AGREEMENT WITH MAILVISION LTD. ("MAILVISION") | ||||||||
On May 13, 2013 (the "Closing Date"), pursuant to an Asset Purchase Agreement with Mailvision (the "APA"), the Company acquired certain assets and assumed certain liabilities of Mailvision. | ||||||||
The APA also provides that, under certain limited circumstances, if the Company were to sell the acquired assets and assumed liabilities of Mailvision to a third party prior to May 2014, the proceeds from such sale in excess of a specified amount would be payable to Mailvision, and, if the purchase price offered by a third party prior to May 2014 exceeds a specified amount, subject to a number of conditions, the Company would be required to sell the acquired assets and assumed liabilities (the "Sale Option"). | ||||||||
The acquisition was accounted for using the purchase method. The $ 3,434 in consideration for the acquisition was composed of the following amounts: (i) $ 221, which represented the present value of a payment of $ 233 payable on the anniversary date of the acquisition in 2014; (ii) $ 432 , which represented the fair value of the estimated earn-out consideration, that is payable in 2015 and 2016, if certain milestones of revenues from the sale of Mailvision’s product are met during the three annual periods following the Closing Date (the "Earn-Out"). (iii) waiver of $ 1,472 of debt owed by Mailvision to the Company; and (iv) $ 376, which represented the fair value of the Sale Option. In addition, on the Closing Date, the Company revalued its investment in Mailvision (see Note 7) to its fair value in the amount of $ 933 in accordance with ASC 805, "Business Combination". As a result of the revaluation of investment in Mailvision, the Company recognized a gain of $ 95 that was recorded in equity in losses of affiliated company, net in the statement of operations. | ||||||||
The payment of the consideration can be made, at the Company's option, in any combination of cash and the Company's ordinary shares. | ||||||||
The following table summarizes, as of May 13, 2013, the estimated fair values of the assets acquired and liabilities assumed with respect to the acquisition: | ||||||||
Core technology | $ | 2,322 | ||||||
Customer relationships | 266 | |||||||
Goodwill | 1,654 | |||||||
Total assets acquired | 4,242 | |||||||
Net working capital | -529 | |||||||
Other assumed liabilities | -279 | |||||||
Total assumed liabilities | -808 | |||||||
Net assets acquired | $ | 3,434 | ||||||
The fair values of the acquired core technology and customer relationships were valued using the income approach. This method utilized a forecast of expected cash inflows, cash outflows and contributory charges for economic returns on tangible and intangible assets employed. | ||||||||
The excess of the purchase price over the preliminary assessment of the net tangible and intangible assets acquired resulted in goodwill of $ 1,654. The acquired core technology and customer relationships are being amortized on a straight-line basis over a period of 5.5 and 4.5 years, respectively. | ||||||||
The fair value of the Earn-Out was estimated by utilizing the income approach, taking into account the potential cash payments discounted to arrive at a present value amount, based on the Company's expectation as to future revenues of Mailvision’s products in the three subsequent annual periods following the Closing Date. The discount rate was based on the market interest rate and estimated operational capitalization rate. The fair value of the Sale Option granted was valued by using the Black-Scholes call option pricing model. | ||||||||
The fair value of the Sale Option was estimated using the following assumptions (annualized percentages): | ||||||||
May 13, | December 31, | |||||||
2013 | 2013 | |||||||
Exercise price | $ | 7,097 | $ | 7,124 | ||||
Dividend yield | 0 | % | 0 | % | ||||
Expected volatility | 60 | % | 50 | % | ||||
Risk-free interest | 0.15 | % | 0.1 | % | ||||
Expected life | 1 year | 0.4 years | ||||||
In accordance with ASC 815, "Derivatives and Hedging", the Company measured the Sale Option at fair value at each reporting date, based on its fair value, with changes in the fair values being recognized in the Company's statement of operations as financial income or expense. | ||||||||
As of December 31, 2013, the Earn-Out and the Sale Option estimated fair value amounted to $ 446 and $ 110, respectively, of which an aggregate amount equal to $ 446 was classified as a long-term liability. | ||||||||
The consolidated financial statements include the operating results of the Mailvision business since May 13, 2013. The related revenues and expenses as well as the pro forma results were not presented as they were deemed immaterial. | ||||||||
MARKETABLE_SECURITIES_AND_ACCR
MARKETABLE SECURITIES AND ACCRUED INTEREST | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Marketable Securities and Accrued Interest [Abstract] | ' | ||||||||||
Marketable Securities and Accrued Interest Disclosure [Text Block] | ' | ||||||||||
NOTE 4:- MARKETABLE SECURITIES AND ACCRUED INTEREST | |||||||||||
The following is a summary of held to maturity marketable securities: | |||||||||||
December 31, 2012 | |||||||||||
Amortized | Unrealized | Fair | |||||||||
cost | gains | Value | |||||||||
Corporate debentures: | |||||||||||
Maturing within one year | $ | 7,625 | $ | 62 | $ | 7,687 | |||||
Maturing between one to two years | 15,762 | 299 | 16,061 | ||||||||
Accrued interest | 341 | - | 341 | ||||||||
$ | 23,728 | $ | 361 | $ | 24,089 | ||||||
December 31, 2013 | |||||||||||
Amortized | Unrealized | Fair | |||||||||
cost | gains | Value | |||||||||
Corporate debentures: | |||||||||||
Maturing within one year | $ | 15,438 | $ | 35 | $ | 15,473 | |||||
Accrued interest | 268 | - | 268 | ||||||||
$ | 15,706 | $ | 35 | $ | 15,741 | ||||||
These investments were issued by highly rated corporations. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost of the Company's investment. As of December 31, 2012 and 2013, the Group did not have any investment in marketable securities that was in an unrealized loss position for a period of twelve months or greater. Unrealized gains are valued using alternative pricing sources and models utilizing observable market inputs. | |||||||||||
INVENTORIES
INVENTORIES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventory Disclosure [Text Block] | ' | |||||||
NOTE 5:- INVENTORIES | ||||||||
December 31, | ||||||||
2012 | 2013 | |||||||
Raw materials | $ | 7,684 | $ | 5,931 | ||||
Finished products | 9,113 | 7,880 | ||||||
$ | 16,797 | $ | 13,811 | |||||
In the years ended December 31, 2011, 2012 and 2013, the Group wrote-off inventories in a total amount of $ 644, $ 2,306 and $ 1,746, respectively. | ||||||||
INVESTMENT_IN_AN_AFFILIATED_CO
INVESTMENT IN AN AFFILIATED COMPANY | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||||||||
Equity Method Investments Disclosure [Text Block] | ' | ||||||||||
NOTE 6:- INVESTMENT IN AN AFFILIATED COMPANY | |||||||||||
As of December 31, 2012, the Company owned 25.61% of Mailvision's outstanding share capital. The Company had an investment in equity in the amount of $ 1,655, convertible and non-convertible loans in the principal amount of $ 398, and accumulated net loss in the amount of $ 969. In April 2013, the Company entered into an asset purchase agreement with Mailvision, pursuant to which in May 2013, the Company acquired certain assets and assumed certain liabilities of Mailvision (See also Note 3). As of December 31, 2013, the Company owned 29.6% of the outstanding share capital of Mailvision. | |||||||||||
Balances and transactions with MailVision were as follows: | |||||||||||
a. | Balances: | ||||||||||
December 31, | |||||||||||
2012 | 2013 | ||||||||||
Other payables and accrued expenses | $ | 492 | $ | - | |||||||
b. | Transactions: | ||||||||||
Year ended December 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
Amounts charged - cost of revenues | $ | 2,164 | $ | 1,414 | $ | 432 | |||||
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | |||||||
NOTE 7:- PROPERTY AND EQUIPMENT | ||||||||
December 31, | ||||||||
2012 | 2013 | |||||||
Cost: | ||||||||
Computers and peripheral equipment | $ | 23,463 | $ | 24,871 | ||||
Office furniture and equipment | 10,652 | 10,753 | ||||||
Leasehold improvements | 2,336 | 2,253 | ||||||
36,451 | 37,877 | |||||||
Accumulated depreciation: | ||||||||
Computers and peripheral equipment | 21,556 | 23,075 | ||||||
Office furniture and equipment | 9,473 | 9,650 | ||||||
Leasehold improvements | 1,803 | 1,961 | ||||||
32,832 | 34,686 | |||||||
Depreciated cost | $ | 3,619 | $ | 3,191 | ||||
Depreciation expenses amounted to $ 1,914, $ 1,755 and $ 2,014 for the years ended December 31, 2011, 2012 and 2013, respectively. | ||||||||
INTANGIBLE_ASSETS_AND_DEFERRED
INTANGIBLE ASSETS AND DEFERRED CHARGES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Intangible Assets Disclosure [Text Block] | ' | ||||||||||||
NOTE 8:- | INTANGIBLE ASSETS AND DEFERRED CHARGES | ||||||||||||
Useful life | December 31, | ||||||||||||
(years) | 2012 | 2013 | |||||||||||
a. | Impaired Cost: | ||||||||||||
Acquired technology | 10-May | $ | 15,517 | $ | 17,839 | ||||||||
Customer relationship | 4.5-9 | 4,172 | 4,438 | ||||||||||
Trade name | 3 | 415 | 415 | ||||||||||
Existing contracts for maintenance | 3 | 181 | 181 | ||||||||||
20,285 | 22,873 | ||||||||||||
Accumulated amortization: | |||||||||||||
Acquired technology | 13,399 | 14,255 | |||||||||||
Customer relationship | 3,433 | 3,770 | |||||||||||
Trade name | 415 | 415 | |||||||||||
Existing contracts for maintenance | 181 | 181 | |||||||||||
17,428 | 18,621 | ||||||||||||
Amortized cost | $ | 2,857 | $ | 4,252 | |||||||||
b. | Amortization expenses related to intangible assets amounted to $ 1,325, $ 1,128 and $ 1,193 for the years ended December 31, 2011, 2012 and 2013, respectively. | ||||||||||||
c. | Expected amortization expenses are as follows: | ||||||||||||
Year ending December 31, | |||||||||||||
2014 | $ | 1,355 | |||||||||||
2015 | 1,180 | ||||||||||||
2016 | 846 | ||||||||||||
2017 | 481 | ||||||||||||
2018 | 390 | ||||||||||||
$ | 4,252 | ||||||||||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||
Fair Value Disclosures [Text Block] | ' | ||||||||||
NOTE 9:- FAIR VALUE MEASUREMENTS | |||||||||||
In accordance with ASC 820, the Group measures its foreign currency derivative instruments, its contingent consideration to NSC's former shareholders and its contingent consideration to Mailvision, at fair value. Investments in foreign currency derivative instruments are classified within Level 2 value hierarchy. This is because these assets are valued using alternative pricing sources and models utilizing market observable inputs. The contingent consideration to NSC's former shareholders and the Earn Out and the Sale Option provided to Mailvision are classified within Level 3 value hierarchy because these liabilities are based on present value calculations and an external valuation models whose inputs include market interest rates, estimated operational capitalization rates and volatilities. Unobservable inputs used in these models are significant. | |||||||||||
The Group's financial assets and liabilities measured at fair value on a recurring basis, consisted of the following types of instruments as of the following dates: | |||||||||||
December 31, 2012 | |||||||||||
Fair value measurements using input type | |||||||||||
Level 2 | Level 3 | Total | |||||||||
Financial assets related to foreign currency derivative hedging contracts | $ | 1,303 | $ | - | $ | 1,303 | |||||
Financial Liabilities: | |||||||||||
Foreign currency derivative contracts | $ | -362 | $ | - | $ | -362 | |||||
Contingent consideration related to NSC's former shareholders | - | -115 | -115 | ||||||||
Total Financial liability | $ | -362 | $ | -115 | $ | -477 | |||||
December 31, 2013 | |||||||||||
Fair value measurements using input type | |||||||||||
Level 2 | Level 3 | Total | |||||||||
Contingent consideration related to Mailvision | $ | - | $ | -556 | $ | -556 | |||||
Total Financial liability | $ | - | $ | -556 | $ | -556 | |||||
Fair value measurements using significant unobservable inputs (Level 3): | |||||||||||
Balance at January 1, 2013 | $ | -115 | |||||||||
Liabilities incurred in relation to the APA with Mailvision | -808 | ||||||||||
Repayment of NSC's contingent consideration | 120 | ||||||||||
Adjustment due to time change value | 247 | ||||||||||
Balance at December 31, 2013 | $ | -556 | |||||||||
OTHER_PAYABLES_AND_ACCRUED_EXP
OTHER PAYABLES AND ACCRUED EXPENSES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | ' | |||||||
NOTE 10:- | OTHER PAYABLES AND ACCRUED EXPENSES | |||||||
December 31, | ||||||||
2012 | 2013 | |||||||
Vacation accrual | $ | 2,476 | $ | 2,990 | ||||
Royalties provision | 420 | 500 | ||||||
Other employees and payroll accruals | 3,542 | 4,112 | ||||||
Government authorities | 385 | 667 | ||||||
Accrued expenses | 7,877 | 9,351 | ||||||
Others | 362 | 338 | ||||||
$ | 15,062 | $ | 17,958 | |||||
SENIOR_CONVERTIBLE_NOTES
SENIOR CONVERTIBLE NOTES | 12 Months Ended | |
Dec. 31, 2013 | ||
Senior Convertible Notes Disclosure [Abstract] | ' | |
Senior Convertible Notes Disclosure [Text Block] | ' | |
NOTE 11:- SENIOR CONVERTIBLE NOTES | ||
In November 2004, the Company issued an aggregate of $ 125,000 principal amount of its 2% Senior Convertible Notes due November 9, 2024 ("the Notes"). The Company is obligated to pay interest on the Notes semi-annually on May 9 and November 9 of each year. | ||
The Notes are convertible, at the option of the holders, at any time before the maturity date, into ordinary shares of the Company at a conversion rate of 53.4474 ordinary shares per $ 1 principal amount of Notes, representing a conversion price of approximately $ 18.71 per share. Upon such conversion in lieu of the delivering of ordinary shares, the Company may elect to pay the holders cash or a combination of cash and ordinary shares. The Notes are subject to redemption at any time, in whole or in part, at the option of the Company, at a redemption price of 100% of the principal amount plus accrued and unpaid interest. The Notes are subject to repurchase, at the holders' option, on November 9, 2014 or November 9, 2019, at a repurchase price equal to 100% of the principal amount plus accrued and unpaid interest, if any, on such repurchase date. The Company may choose to settle in cash upon conversion. | ||
As of December 31, 2012 and 2013, there was $ 353 in principal amount of the Notes outstanding. The effective interest rate for the years ended December 31, 2011, 2012 and 2013 amounted to 2% per year. In January 2014, the Company repurchased Notes in the principal amount of $300. | ||
LONGTERM_BANK_LOANS
LONG-TERM BANK LOANS | 12 Months Ended | |
Dec. 31, 2013 | ||
Debt Disclosure [Abstract] | ' | |
Long-term Debt [Text Block] | ' | |
NOTE 1 2:- LONG-TERM BANK LOANS | ||
In April and July 2008, the Company entered into loan agreements with Israeli commercial banks that provided for loans in the total principal amount of $ 30,000 (the "2008 Loans"). As of December 31, 2013, the 2008 Loans were fully paid. | ||
In September and December 2011, the Company entered into loan agreements with Israeli commercial banks that provided for loans in the total principal amount of $ 23,750 (the "2011 Loans"). The 2011 Loans bear interest at LIBOR plus 2.1%-4.35% with respect to $ 19,850 of the principal amount of the 2011 Loans. The remaining $ 3,900 of principal amount of the 2011 Loans was required to be maintained as a compensating bank deposit that decreases as the loans are repaid. This portion of the 2011 Loans bear interest at 0.5% above the interest rate paid on the bank deposit. Of these 2011 Loans, $ 19,850 of the principal amount is repayable in 20 equal quarterly installments and the remaining $ 3,900 of principal amount is repayable in 10 equal semiannual payments through September 2017. | ||
As of December 31, 2012 and 2013, the banks have a lien on the Company's assets that secures the 2011 Loans. As of December 31, 2012 and 2013, the Company is required to maintain a total of $ 13,456 and $ 7,239, respectively, in compensating balances with the banks, to secure the 2011 Loans. As of December 31, 2012 and 2013, the compensating balances are included in $ 4,205 and $ 2,343 of short-term and restricted bank deposits and $ 9,251 and $ 4,896 of long-term and restricted bank deposits, respectively. The amount of the compensating balances that is required decreases as the loan is repaid. The agreements with respect to the 2011 Loans require the Company, among other things, to meet certain financial covenants such as maintaining shareholders' equity, cash balances, and liabilities to banks at specified levels, as well as achieving certain levels of operating income. | ||
As of December 31, 2012, the Company was in compliance with its bank covenants except for the requirement to achieve certain levels of operating income. The Company received waivers from the banks with respect to these covenants until December 31, 2013, subject to compliance with revised financial covenants in 2012 and 2013, an increase in the interest rate with respect to one of the loans and an increase in required compensating balances. As of December 31, 2013, the Company was in compliance with all the financial covenants. | ||
COMMITMENTS_AND_CONTINGENT_LIA
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||
NOTE 13:- COMMITMENTS AND CONTINGENT LIABILITIES | |||||
a. | Lease commitments: | ||||
The Group's facilities are leased under several lease agreements in Israel, Europe and the U.S. for periods ending in 2024. | |||||
In addition, the Company has various operating lease agreements with respect to motor vehicles. The terms of the lease agreements are for 36 months, which expire on various dates, the latest of which is in 2016. | |||||
Future minimum rental commitments under non-cancelable operating leases are as follows: | |||||
Year ending December 31, | |||||
2014 | $ | 6,386 | |||
2015 | 6,310 | ||||
2016 | 6,614 | ||||
2017 | 6,361 | ||||
2018 and on | 42,346 | ||||
Total minimum lease payments *) | $ | 68,017 | |||
*) | Minimum payments have been reduced by minimum sublease rental of $ 1,297 due in the future under non-cancelable subleases. | ||||
In connection with the Company's facilities lease agreement in Israel, the lessor has a lien of approximately $ 5,500 on certain bank deposits. These deposits are included in short-term and restricted bank deposits. | |||||
Rent expenses for the years ended December 31, 2011, 2012 and 2013, were approximately $ 5,327, $ 5,745 and $ 5,282, respectively. | |||||
b. | Inventory purchase commitments: | ||||
The Group is obligated under certain agreements with its suppliers to purchase specified items of excess inventory which is expected to be utilized in 2014. As of December 31, 2013, non- cancelable obligations were approximately $ 14,357. | |||||
c. | Royalty commitment to the Office of the Chief Scientist of the Israeli Ministry of Economy ("OCS"): | ||||
Under the research and development agreements of the Company and its Israeli subsidiaries with the OCS and pursuant to applicable laws, the Company and its Israeli subsidiaries are required to pay royalties at the rate of 3%-5% on sales to end customers of products developed with funds provided by the OCS, up to an amount equal to 100% of the OCS research and development grants received, linked to the dollar plus interest on the unpaid amount received based on the 12-month LIBOR rate (from the year the grant was approved) applicable to dollar deposits. The Company and its Israeli subsidiaries are obligated to repay the Israeli Government for the grants received only to the extent that there are sales of the funded products. | |||||
The place of manufacturing of a product that was developed with the support of the OCS, or based on know-how developed with the support of the OCS, shall be according to the supported company's declaration in the application for support (including manufacturing abroad). In case the Company wishes to transfer its manufacturing activity abroad, in addition to its statement in the application for support, it will be required to receive approval from the OCS research committee. The committee is entitled to increase both the royalty liability and the rate of the royalty payments. The increased repayment is calculated according to the percentage of the manufacturing activities that are intended to be carried out outside Israel, and can reach up to 300% of the original sum. When the manufacturing of the product is being done outside of Israel, the Company is required to pay an increased royalty rate of an additional 1% (instead of paying 3%-5%). | |||||
As of December 31, 2012 and 2013, the Company and its Israeli subsidiaries have a contingent obligation to pay royalties in the amount of approximately $ 29,413 and $ 34,034, respectively. | |||||
As of December 31, 2012 and 2013, the Company and its Israeli subsidiaries have paid or accrued royalties to the OCS in the amount of $ 1,810 and $ 2,408, respectively, which were recorded in cost of revenues. | |||||
d. | Royalty commitments to third parties: | ||||
The Group has entered into technology licensing fee agreements with third parties. Under the agreements, the Group agreed to pay the third parties royalties, based on sales of relevant products. See also Note 10. | |||||
e. | Legal proceedings: | ||||
1 | In May 2007, the Company entered into an agreement with respect to property adjacent to its headquarters in Israel, pursuant to which a building of approximately 145,000 square feet was erected and was expected to be leased to the Company for a period of eleven years. This new building was substantially completed in May 2010. The landlord claimed that the Company should have taken delivery of the building at that time and started paying rent. The Company disagreed with the landlord's interpretation of the relevant agreement. As a result, the landlord terminated the agreement and leased the property to a third party. This dispute was referred to arbitration where the Company claimed that due to the landlord’s failure the Company lost significant potential revenues. The landlord counterclaimed alleging that it sustained losses equal to approximately one year’s rent and management fees in the aggregate amount of approximately NIS 14 million (approximately $ 4,000). In September 2013, the parties reached a settlement agreement in which each party withdrew its claim. | ||||
2 | In September 2011, an action was commenced against the Company's U.S subsidiary, AudioCodes Inc. and numerous other defendants, in Federal Court in Delaware alleging that AudioCodes Inc. and the other defendants, infringed the plaintiff's intellectual property rights in five patents. In December 2013, AudioCodes Inc. and the plaintiff reached a settlement agreement that provided for a dismissal of the action and a nominal payment by AudioCodes Inc. to plaintiff. | ||||
3 | In January 2013, one of the Company’s former senior executives sent a letter of demand claiming an amount of NIS 4 million (approximately $ 1,200) relating to the termination of his employment. The Company has denied all of his allegations and believes that it has valid defenses to this claim. At this point, the Company cannot predict the outcome of this demand. | ||||
4 | In February 2013, a patent infringement action was commenced against AudioCodes Inc. and other defendants, in Federal Court in California alleging that AudioCodes Inc. infringed the plaintiff’s intellectual property rights in one patent. One of the other defendants is a customer of the Group that has informed the Group that it believes it is entitled to indemnification from the Group with respect to this litigation. AudioCodes Inc. has filed an Answer to the Complaint and the parties have exchanged a first set of discovery requests. The Group believes it has valid defenses against this claim. This proceeding is at an early stage and it is not possible at this time to predict its outcome. | ||||
5 | In May 2013, the Company received letters from two of its customers who have been sued for alleged patent infringement. The customers seek to be indemnified by the Company. At this early stage, the Company cannot predict the outcome of these demands. | ||||
6 | In October 2013, the Company filed a claim against a customer and one of its employees in Hong Kong for damages in connection with a breach of a supply agreement, infringement of intellectual property and breach of confidentiality. In January 2014, a counterclaim was filed by that customer against the Company for an indeterminate amount. At this early stage, the Company cannot predict the outcome of this claim. | ||||
7 | In November 2013, a former employee filed a claim against the Company’s subsidiary in Brazil alleging that he is entitled to approximately $ 600 as a result of the termination of his employment by the subsidiary. The Company has denied all of his allegations and believes that it has valid defenses to this claim. At this early stage, the Company cannot predict the outcome of this claim. | ||||
EQUITY
EQUITY | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | ' | |||||||||||||||||
NOTE 14:- EQUITY | ||||||||||||||||||
a. | Treasury stock: | |||||||||||||||||
In October 2011, the Company's Board of Directors approved a share repurchase plan pursuant to which the Company was authorized to purchase up to 4,000,000 of its outstanding ordinary shares. During the year ended December 31, 2012, the Company purchased 2,759,594 of its outstanding ordinary shares under this share repurchase plan, at a weighted average price per share of $ 2.44. As of October 2012, the authorized stock repurchase program was completed. | ||||||||||||||||||
b. | Warrants issued to non-employees: | |||||||||||||||||
Number of | Weighted | |||||||||||||||||
shares | average exercise | |||||||||||||||||
price | ||||||||||||||||||
Outstanding at beginning of year | 26,500 | $ | 4.12 | |||||||||||||||
Changes during the year: | ||||||||||||||||||
Granted | 63,500 | $ | 4.36 | |||||||||||||||
Forfeited | -10,000 | $ | 3.65 | |||||||||||||||
Warrants outstanding at end of year | 80,000 | $ | 4.37 | |||||||||||||||
Warrants exercisable at end of year | 13,500 | $ | 4.52 | |||||||||||||||
The Company recorded immaterial compensation expenses with respect to the grants of these warrants in accordance with ASC 505. | ||||||||||||||||||
c. | Employee Stock Purchase Plan: | |||||||||||||||||
In May 2001, the Company's Board of Directors adopted the Employee Stock Purchase Plan ("ESPP" or the "Purchase Plan"), which was amended, in July 2007. The Purchase Plan, as amended, provides for the issuance of up to 6,500,000 ordinary shares. As of December 31, 2011, 1,761,317 shares were available for future issuance under the Purchase Plan. Eligible employees can have up to 10% of their wages, up to certain maximums, used to purchase ordinary shares. The Purchase Plan is implemented with purchases every six months. The price of the ordinary shares purchased under the Purchase Plan is equal to 85% of the lower of the fair market value of the ordinary shares on the commencement date of each offering period or on the semi-annual purchase date. The Purchase Plan is considered a compensatory plan. Therefore, the Company records compensation expense in accordance with ASC 718, "Compensation - Stock Compensation", with respect to purchases under the Purchase Plan. | ||||||||||||||||||
During the year ended December 31, 2011, 288,515 shares were issued under the Purchase Plan for aggregate consideration of $ 1,187. As of December 31, 2013, the Purchase Plan for the Company and its non-U.S subsidiaries has expired. | ||||||||||||||||||
d. | Employee Stock Option Plans: | |||||||||||||||||
In 2008, the Company's Board of Directors approved the 2008 Equity Incentive Plan that became effective in January 2009. As of December 31, 2013, the total number of shares authorized for grant under this Plan is 1,720,232. | ||||||||||||||||||
Stock options granted under the abovementioned plan are exercisable at the fair market value of the ordinary shares at the date of grant and usually expire seven or ten years from the date of grant. The options generally vest over four years from the date of grant. Any options that are forfeited or cancelled before expiration become available for future grants. | ||||||||||||||||||
The following is a summary of the Company's stock option activity and related information for the year ended December 31, 2013: | ||||||||||||||||||
Amount | Weighted | Weighted | Aggregate | |||||||||||||||
of options | average | average | intrinsic | |||||||||||||||
exercise | remaining | value | ||||||||||||||||
price | contractual | |||||||||||||||||
term (in | ||||||||||||||||||
years) | ||||||||||||||||||
Outstanding at beginning of year | 3,777,032 | $ | 4.74 | 4 | $ | 1,477 | ||||||||||||
Changes during the year: | ||||||||||||||||||
Granted | 817,531 | $ | 4.66 | |||||||||||||||
Exercised | -672,645 | $ | 2.82 | |||||||||||||||
Forfeited | -194,375 | $ | 5.16 | |||||||||||||||
Expired | -534,000 | $ | 10.78 | |||||||||||||||
Options outstanding at end of year | 3,193,543 | $ | 4.09 | 4.5 | $ | 9,845 | ||||||||||||
Vested and expected to vest | 3,065,801 | $ | 4.09 | 4.5 | $ | 9,451 | ||||||||||||
Options exercisable at end of year | 1,446,182 | $ | 4.25 | 3.1 | $ | 4,279 | ||||||||||||
The weighted-average grant-date fair value of options granted during the years ended December 31, 2011, 2012 and 2013 was $ 2.69, $ 1.35 and $ 3.00, respectively. The aggregate intrinsic value in the table above represents the total intrinsic value (the difference between the Company's closing stock price on the last trading day of the fiscal year and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on the last trading day of the fiscal year. This amount changes based on the fair market value of the Company's shares. | ||||||||||||||||||
Total intrinsic value of options exercised for the years ended December 31, 2011, 2012 and 2013 was $ 44, $ 63 and $ 2,052, respectively. | ||||||||||||||||||
During the year ended December 31, 2013, the Company granted 100,000 performance based options. The Company currently expects that the performance targets will not be met and therefore no equity based compensation expenses related to these options were recognized. | ||||||||||||||||||
The options outstanding as of December 31, 2013, have been separated into ranges of exercise prices, as follows: | ||||||||||||||||||
Range of | Options | Weighted | Weighted | Options | Weighted | |||||||||||||
exercise | outstanding | average | average | exercisable | average | |||||||||||||
price | as of | remaining | exercise | as of | exercise price | |||||||||||||
December 31, | contractual | price | December 31, | of exercisable | ||||||||||||||
2013 | life | 2012 | options | |||||||||||||||
(Years) | ||||||||||||||||||
$ | 0.00-1.10 | 52,316 | 3.85 | $ | 0.01 | 46,566 | $ | 0.01 | ||||||||||
$ | 1.50-2.51 | 363,500 | 4.22 | $ | 2.06 | 190,250 | $ | 2.11 | ||||||||||
$ | 2.57-4.00 | 1,404,365 | 5.15 | $ | 3.21 | 525,732 | $ | 3.08 | ||||||||||
$ | 4.08-6.49 | 1,086,331 | 3.83 | $ | 5.23 | 571,134 | $ | 5.63 | ||||||||||
$ | 6.51-9.24 | 251,031 | 5.14 | $ | 7.02 | 76,500 | $ | 7.24 | ||||||||||
$ | 9.32-14.76 | 36,000 | 0.1 | $ | 9.75 | 36,000 | $ | 9.75 | ||||||||||
3,193,543 | 4.5 | $ | 4.09 | 1,446,182 | $ | 4.25 | ||||||||||||
The following is a summary of the Company's RSUs activity and related information for the year ended December 31, 2013: | ||||||||||||||||||
Number of | Weighted | |||||||||||||||||
shares | average grant | |||||||||||||||||
date fair value | ||||||||||||||||||
Outstanding at beginning of year | 182,161 | $ | 3.79 | |||||||||||||||
Changes during the year: | ||||||||||||||||||
Granted | 175,841 | $ | 4.93 | |||||||||||||||
Exercised | -85,541 | $ | 3.74 | |||||||||||||||
RSUs outstanding at end of year | 272,461 | $ | 4.54 | |||||||||||||||
During the years ended December 31, 2011, 2012 and 2013, the share based compensation expenses related to the RSUs granted amounted to $ 786, $ 435 and $ 371, respectively. | ||||||||||||||||||
As of December 31, 2013, there was $ 3,380 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Company's stock option plans. That cost is expected to be recognized over a weighted-average period of 1.14 years. | ||||||||||||||||||
e. | Dividends: | |||||||||||||||||
In the event that cash dividends are declared in the future, such dividends will be paid in NIS. The Company does not intend to pay cash dividends in the foreseeable future. (See also Note 15a.) | ||||||||||||||||||
TAXES_ON_INCOME
TAXES ON INCOME | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||||||
NOTE 15:- TAXES ON INCOME | |||||||||||||
a. | Israeli taxation: | ||||||||||||
1 | Measurement of taxable income in U.S. dollars: | ||||||||||||
The Company has elected to measure its taxable income and file its tax return under the Israeli Income Tax Regulations (Principles Regarding the Management of Books of Account of Foreign Invested Companies and Certain Partnerships and the Determination of Their Taxable Income), 1986. Accordingly, results for tax purposes are measured in terms of earnings in dollars. | |||||||||||||
2 | Tax benefits under the Israeli Law for the Encouragement of Capital Investments, 1959 ("the Investment Law"): | ||||||||||||
The Company's production facilities in Israel have been granted the status of an "Approved Enterprise" in accordance with the Investment Law under four separate investment programs. According to the provisions of the Investment Law, the Company has been granted the "Alternative Benefit Plan", under which the main benefits are tax exemptions and reduced tax rates. | |||||||||||||
Therefore, the Company's income derived from the Approved Enterprise will be entitled to a tax exemption for a period of two years and to an additional period of five to eight years of reduced tax rates of 10% - 25% (based on the percentage of foreign ownership). The duration of tax benefits of reduced tax rates is subject to a limitation of the earlier of 12 years from commencement of production, or 14 years from the approval date. The Company utilized tax benefits from the first program in 1998 and has been no longer eligible for benefits since 2007. | |||||||||||||
As of December 31, 2013, retained earnings included approximately $ 540 in tax-exempt income earned by the Company's "Approved Enterprise". The Company's Board of Directors has decided not to declare dividends out of such tax-exempt income. Accordingly, no deferred income taxes have been provided on income attributable to the Company's "Approved Enterprise". | |||||||||||||
The entitlement to the above benefits is conditional upon the Company fulfilling the conditions stipulated by the above Investment Law, regulations published thereunder and the letters of approval for the specific investments in "Approved Enterprises". In the event of failure to comply with these conditions, the benefits may be canceled and the Company may be required to refund the amount of the benefits, in whole or in part, including interest. As of December 31, 2013, management believes that the Company is in compliance with all of the aforementioned conditions. | |||||||||||||
Income from sources other than the "Approved Enterprise" during the benefit period will be subject to tax at the regular tax rate prevailing at that time. | |||||||||||||
On April 1, 2005, an amendment to the Investment Law came into effect ("the 2005 Amendment") that significantly changed the provisions of the Investment Law. The 2005 Amendment limits the scope of enterprises that may be approved by the Investment Center by setting criteria for the approval of a facility as a Beneficiary Enterprise including a provision generally requiring that at least 25% of the Beneficiary Enterprise's income will be derived from export. Additionally, the Amendment enacted major changes in the manner in which tax benefits are awarded under the Investment Law so that companies no longer require Investment Center approval in order to qualify for tax benefits. | |||||||||||||
However, the Investment Law provides that terms and benefits included in any certificate of approval already granted will remain subject to the provisions of the Investment Law as they were on the date of such approval. Therefore, the Company's existing "Approved Enterprises" are generally not subject to the provisions of the Amendment. As a result of the Amendment, tax-exempt income generated under the provisions of the Investment Law, as amended, will subject the Company to taxes upon distribution or liquidation and the Company may be required to record a deferred tax liability with respect to such tax-exempt income. As of December 31, 2013, there was no taxable income attributable to the Beneficiary Enterprise. | |||||||||||||
In December 2010, an amendment to the Investment Law came into effect ("the 2010 Amendment"). The 2010 Amendment became effective as of January 1, 2011. According to the 2010 Amendment, the benefit tracks in the Investment Law were modified and a flat tax rate applies to the Company's entire preferred income. The Company may elect to adopt the 2010 Amendment. Once an election is made, the Company will be subject to the amended tax rate of 16% from 2014 and thereafter. | |||||||||||||
The Company does not currently intend to adopt the 2010 Amendment, and intends to continue to comply with the Investment Law as in effect prior to enactment of the 2010 Amendment. | |||||||||||||
3 | Net operating loss carry-forward: | ||||||||||||
As of December 31, 2013, the Company has cumulative losses for tax purposes in the amount of approximately $ 22,000, which can be carried forward and offset against taxable income in the future for an indefinite period. As of December 31, 2013, the Company recorded a deferred tax asset of $ 4,350 in respect of such carry-forward tax losses, since it believes it is more likely than not it will utilize carry-forward tax losses. | |||||||||||||
As of December 31, 2013, the Company's Israeli subsidiaries have estimated total available carry-forward tax losses of approximately $ 68,000. The net operating losses may be claimed and offset against taxable income in the future for an indefinite period. | |||||||||||||
4 | Tax benefits under the law for the Encouragement of Industry (taxes), 1969 ("the Encouragement Law"): | ||||||||||||
The Encouragement Law, provides several tax benefits for industrial companies. An industrial company is defined as a company resident in Israel, at least 90% of the income of which in a given tax year exclusive of income from specified Government loans, capital gains, interest and dividends, is derived from an industrial enterprise owned by it. An industrial enterprise is defined as an enterprise whose major activity in a given tax year is industrial production activity. | |||||||||||||
Management believes that the Company is currently qualified as an "industrial company" under the Encouragement Law and, as such, enjoys tax benefits, including: (1) deduction of purchase of know-how and patents and/or right to use a patent over an eight-year period; (2) the right to elect, under specified conditions, to file a consolidated tax return with additional related Israeli industrial companies and an industrial holding company; (3) accelerated depreciation rates on equipment and buildings; and (4) expenses related to a public offering on the Tel-Aviv Stock Exchange and on recognized stock markets outside of Israel, are deductible in equal amounts over three years. | |||||||||||||
Eligibility for benefits under the Encouragement Law is not subject to receipt of prior approval from any Governmental authority. No assurance can be given that the Israeli tax authorities will agree that the Company qualifies, or, if the Company qualifies, that the Company will continue to qualify as an industrial company or that the benefits described above will be available to the Company in the future. | |||||||||||||
5 | Tax rates: | ||||||||||||
Taxable income of Israeli companies is subject to tax at the rate of 24% and 25% in the years ended December 31, 2011 and 2012, respectively. | |||||||||||||
On July 30, 2013, the Israeli Parliament passed a law, which, among other things, was designated to increase the tax levy for 2014 and thereafter (the "New Law"). The New Law increases the Israeli corporate tax rate from 25%, which was the tax rate in effect for the year ended December 31, 2013, to 26.5%. | |||||||||||||
The effective tax rate payable by a company which is taxed under the Investment Law may be considerably lower (see also a2 above). | |||||||||||||
b. | Income (loss) before taxes on income is comprised as follows: | ||||||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Domestic | $ | 5,632 | $ | -2,555 | $ | 475 | |||||||
Foreign | 2,047 | -727 | 2,360 | ||||||||||
$ | 7,679 | $ | -3,282 | $ | 2,835 | ||||||||
c. | Taxes on income are comprised as follows: | ||||||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Current taxes | $ | 890 | $ | 527 | $ | 542 | |||||||
Deferred taxes | -652 | 14 | -1,946 | ||||||||||
$ | 238 | $ | 541 | $ | -1,404 | ||||||||
Domestic | $ | 151 | $ | 283 | $ | -634 | |||||||
Foreign | 87 | 258 | -770 | ||||||||||
$ | 238 | $ | 541 | $ | -1,404 | ||||||||
d. | Deferred income taxes: | ||||||||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Group's deferred tax liabilities and assets are as follows: | |||||||||||||
December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss carry-forward | $ | 52,035 | $ | 52,976 | |||||||||
Reserves and allowances | 7,016 | 7,843 | |||||||||||
Net deferred tax assets before valuation allowance | 59,051 | 60,819 | |||||||||||
Less - Valuation allowance | -53,865 | -53,687 | |||||||||||
Deferred tax asset | $ | 5,186 | $ | 7,132 | |||||||||
Domestic: | |||||||||||||
Short-term deferred tax asset | $ | 1,157 | $ | 1,397 | |||||||||
Long-term deferred tax asset | 2,547 | 2,953 | |||||||||||
$ | 3,704 | $ | 4,350 | ||||||||||
Foreign: | |||||||||||||
Short-term deferred tax asset | $ | 463 | $ | 880 | |||||||||
Long-term deferred tax asset | 1,019 | 1,902 | |||||||||||
$ | 1,482 | $ | 2,782 | ||||||||||
The Company's U.S. subsidiary has estimated total available carry-forward tax losses of approximately $ 80,000 to offset against future federal taxable income and $ 20,000 to offset against state federal taxable income. These carry-forward tax losses expire between 2020 and 2032. As of December 31, 2013, the Company's U.S subsidiary recorded a deferred tax asset of $ 2,782 relating to the available net carry forward tax losses. | |||||||||||||
Utilization of U.S. net operating losses may be subject to substantial annual limitations due to the "change in ownership" provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitation may result in the expiration of net operating losses before utilization. | |||||||||||||
e. | Reconciliation of the theoretical tax expenses: | ||||||||||||
A reconciliation between the theoretical tax expense, assuming all income is taxed at the statutory tax rate applicable to income of the Company, and the actual tax expense (benefit) as reported in the statement of operations is as follows: | |||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Income (loss) before taxes, as reported in the consolidated statements of operations | $ | 7,679 | $ | -3,282 | $ | 2,835 | |||||||
Statutory tax rate | 24 | % | 25 | % | 25 | % | |||||||
Theoretical tax expense (benefit) on the above amount at the Israeli statutory tax rate | $ | 1,843 | $ | -821 | $ | 709 | |||||||
Income tax at rate other than the Israeli statutory tax rate | 275 | -55 | 310 | ||||||||||
Tax advances, withholding tax and non-deductible expenses, including equity based compensation expenses | 1,373 | 807 | 518 | ||||||||||
Deferred taxes on losses for which a valuation allowance was provided | -1,083 | 755 | -2,929 | ||||||||||
Tax adjustment in respect of different tax rates | -1,219 | - | -148 | ||||||||||
Taxes in respect to prior years | -54 | -162 | - | ||||||||||
State and Federal taxes | 93 | 48 | 163 | ||||||||||
Foreign exchange | -901 | 89 | -20 | ||||||||||
Impairment of tax advances | - | - | 64 | ||||||||||
Other | -89 | -120 | -71 | ||||||||||
Actual tax expense (benefit) | $ | 238 | $ | 541 | $ | -1,404 | |||||||
f. | Unrecognized tax benefits: | ||||||||||||
The Company's unrecognized tax benefits as of December 31, 2012 and 2013 is $ 198. | |||||||||||||
The Company recognized interest and penalties related to unrecognized tax benefits in tax expenses in the amount of $ 16, $ 9 and $ 8 for the years ended December 31, 2011, 2012 and 2013, respectively. The liability for unrecognized tax benefits does not include the liability recorded for accrued interest and penalties of $ 196 and $ 204 at December 31, 2012 and 2013, respectively. | |||||||||||||
The Company has received final tax assessment through the year 2008. | |||||||||||||
BASIC_AND_DILUTED_EARNINGS_LOS
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||
Earnings Per Share [Text Block] | ' | ||||||||||
NOTE 16:- BASIC AND DILUTED EARNINGS (LOSS) PER SHARE | |||||||||||
Year ended | |||||||||||
December 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
Numerator: | |||||||||||
Net income (loss) | $ | 7,164 | $ | -4,177 | $ | 4,218 | |||||
Denominator: | |||||||||||
Denominator for basic earnings (loss) per share - weighted average number of ordinary shares, net of | 41,437,927 | 39,125,129 | 38,241,258 | ||||||||
treasury stock | |||||||||||
Effect of dilutive securities: | |||||||||||
Employee stock options and ESPP | 497,170 | - | *) | 855,500 | |||||||
Senior convertible notes | - | *) | - | *) | - | *) | |||||
Denominator for diluted earnings (loss) per share - adjusted weighted average number of shares | 41,935,097 | 39,125,129 | 39,096,758 | ||||||||
*) | Antidilutive. | ||||||||||
FINANCIAL_INCOME_NET
FINANCIAL INCOME, NET | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Financial Expenses Disclosure [Abstract] | ' | ||||||||||
Financial Expenses Disclosure [Text Block] | ' | ||||||||||
NOTE 17:- FINANCIAL INCOME, NET | |||||||||||
Year ended | |||||||||||
December 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
Financial expenses: | |||||||||||
Interest | $ | -346 | $ | -900 | $ | -617 | |||||
Amortization of marketable securities premiums and accretion of discounts, net | -416 | -436 | -349 | ||||||||
Exchange rate | -612 | -4 | - | ||||||||
Others | -133 | -201 | -229 | ||||||||
-1,507 | -1,541 | -1,195 | |||||||||
Financial income - | |||||||||||
Interest and others | 1,930 | 1,994 | 1,103 | ||||||||
Exchange rate | - | - | 188 | ||||||||
1,930 | 1,994 | 1,291 | |||||||||
$ | 423 | $ | 453 | $ | 96 | ||||||
GEOGRAPHIC_INFORMATION
GEOGRAPHIC INFORMATION | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | |||||||||||||||||||
NOTE 18:- GEOGRAPHIC INFORMATION | ||||||||||||||||||||
a. | Summary information about geographic areas: | |||||||||||||||||||
The Group manages its business on a basis of one reportable segment (see Note 1 for a brief description of the Group's business). The data is presented in accordance with ASC 280, "Segment Reporting". Revenues in the table below are attributed to geographical areas based on the location of the end customers. | ||||||||||||||||||||
The following presents total revenues for the years ended December 31, 2011, 2012 and 2013 and long-lived assets as of December 31, 2011, 2012 and 2013. | ||||||||||||||||||||
2011 | 2012 | 2013 | ||||||||||||||||||
Total | Long- | Total | Long- | Total | Long- | |||||||||||||||
lived | lived | lived | ||||||||||||||||||
revenues | assets | revenues | assets | revenues | assets | |||||||||||||||
Israel | $ | 11,887 | $ | 2,884 | $ | 7,773 | $ | 3,227 | $ | 7,887 | $ | 2,941 | ||||||||
Americas | 85,630 | 314 | 66,443 | 230 | 71,527 | 147 | ||||||||||||||
Europe | 36,322 | 125 | 35,876 | 119 | 37,310 | 74 | ||||||||||||||
Far East | 21,988 | 45 | 17,398 | 43 | 20,508 | 29 | ||||||||||||||
$ | 155,827 | $ | 3,368 | $ | 127,490 | $ | 3,619 | $ | 137,232 | $ | 3,191 | |||||||||
b. | Product lines: | |||||||||||||||||||
Total revenues from external customers divided on the basis of the Company's product lines are as follows: | ||||||||||||||||||||
Year ended | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2011 | 2012 | 2013 | ||||||||||||||||||
Technology | $ | 35,017 | $ | 24,673 | $ | 22,048 | ||||||||||||||
Networking | 120,810 | 102,817 | 115,184 | |||||||||||||||||
$ | 155,827 | $ | 127,490 | $ | 137,232 | |||||||||||||||
DERIVATIVE_INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | ' | |||||||||
NOTE 19:- DERIVATIVE INSTRUMENTS | ||||||||||
The Group enters into hedge transactions with a major financial institution, using derivative instruments, primarily forward contracts and options to purchase and sell foreign currencies, in order to reduce the net currency exposure associated with anticipated expenses (primarily salaries and rent expenses) in currencies other than the dollar. The Group currently hedges such future exposures for a maximum period of one year. However, the Group may choose not to hedge certain foreign currency exchange exposures for a variety of reasons, including but not limited to immateriality, accounting considerations and the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign currency exchange rates. | ||||||||||
The Group records all derivatives in the consolidated balance sheet at fair value. The effective portions of cash flow hedges are recorded in other comprehensive income until the hedged item is recognized in earnings. The ineffective portions of cash flow hedges are adjusted to fair value through earnings in financial income or expense. | ||||||||||
The Group had a net deferred gain (loss) associated with cash flow hedges of $ 1,303 recorded in other comprehensive income as of December 31, 2012. As of December 31, 2013, there was no deferred gain associated with cash flow hedges recorded in other comprehensive income. | ||||||||||
The Group entered into forward and options contracts that did not meet the requirement for hedge accounting. The Group measured the fair value of the contracts in accordance with ASC 820, at Level 2. The net gains (losses) recognized in "financial and other expenses, net" during the years ended December 31, 2011, 2012 and 2013 were $ 187, $ 452 and $ (191), respectively. | ||||||||||
As of December 31, 2012, the Group had outstanding forward and options collar (cylinder) contracts in the amount of $ 33,600 which were designated as salary hedging contracts. As of December 31, 2013, the Group had no outstanding forward and options collar (cylinder) contracts. | ||||||||||
The fair value of the Group's outstanding derivative instruments and the effect of derivative instruments in cash flow hedging relationship on other comprehensive income for the years ended December 31, 2012 and 2013, are summarized below: | ||||||||||
Foreign exchange forward and | December 31, | |||||||||
options contracts | Balance sheet | 2012 | 2013 | |||||||
Fair value of foreign exchange forward and options collar (cylinder) contracts | "Other receivables and prepaid expenses" | $ | 1,303 | $ | - | |||||
Gains (losses) recognized in OCI (effective portion) | "Other comprehensive income" | $ | 1,543 | $ | -1,303 | |||||
The effect of derivative instruments in cash flow hedging relationship on income for the years ended December 31, 2012 and 2013 is summarized below: | ||||||||||
Foreign exchange forward and | Statements of | Year ended | ||||||||
December 31, | ||||||||||
options contracts | operations | 2012 | 2013 | |||||||
Gain on derivatives recognized in OCI | "Operating expenses" | $ | 1,211 | $ | 1,292 | |||||
Loss (gain) recognized in income on derivatives (effective portion) | "Operating expenses" | $ | 332 | $ | -2,595 | |||||
SUBSEQUENT_EVENT
SUBSEQUENT EVENT | 12 Months Ended | |
Dec. 31, 2013 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events [Text Block] | ' | |
NOTE 20:- SUBSEQUENT EVENT | ||
On March 10, 2014, the Company sold in a public offering 4,025,000 of its ordinary shares, including 525,000 shares sold pursuant to the underwriters’ full exercise of their over-allotment option, at a price of $ 8.00 per share. The Company’s net proceeds from this offering were approximately $ 29,700, after deducting underwriting discounts, commissions and other estimated offering expenses. | ||
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Accounting Policies [Abstract] | ' | ||||||||||
Use of Estimates, Policy [Policy Text Block] | ' | ||||||||||
a. | Use of estimates: | ||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements and accompanying notes. The Company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. As applicable to these consolidated financial statements, the most significant estimates and assumptions relate to revenue recognition and allowance for sales returns, allowance for doubtful accounts, inventories, intangible assets, goodwill, income taxes and related valuation allowance, stock-based compensation and contingent liabilities. Actual results could differ from those estimates. | |||||||||||
Financial Statements [Policy Text Block] | ' | ||||||||||
b. | Financial statements in U.S. dollars ("dollars"): | ||||||||||
A majority of the Group's revenues is generated in dollars. In addition, most of the Group's costs are denominated and determined in dollars and in new Israeli shekels. The Company's management believes that the dollar is the currency in the primary economic environment in which the Group operates. Thus, the functional and reporting currency of the Group is the dollar. | |||||||||||
Accordingly, monetary accounts maintained in currencies other than the dollar are remeasured into U.S. dollars in accordance with Accounting Standards Codification ("ASC”) 830, "Foreign Currency Matters". All transaction gains and losses of the remeasured monetary balance sheet items are reflected in the statements of operations as financial income or expenses, as appropriate. | |||||||||||
Consolidation, Policy [Policy Text Block] | ' | ||||||||||
c. | Principles of consolidation: | ||||||||||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany transactions and balances, including profits from intercompany sales not yet realized outside the Group, have been eliminated upon consolidation. | |||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | ||||||||||
d. | Cash equivalents: | ||||||||||
Cash equivalents represent short-term highly liquid investments that are readily convertible into cash with original maturities of three months or less, at the date acquired. | |||||||||||
Short Term Bank Deposits [Policy Text Block] | ' | ||||||||||
e. | Short-term and restricted bank deposits: | ||||||||||
Short-term and restricted bank deposits are deposits with maturities of more than three months, but less than one year. The deposits are mainly in dollars and bear interest at an average rate of 0.81% and 0.97% for the years ended December 31, 2012 and 2013, respectively. Short-term and restricted deposits are presented at their cost. Any accrued interest on these deposits is included in other receivables and prepaid expenses. | |||||||||||
In connection with the long-term bank loans and their related covenants, the Company is required to maintain compensating balances with the banks and to maintain deposits in the same banks that provided the loans (see Note 12). In addition, the Company maintains restricted deposits in connection with foreign exchange derivatives, guarantees for prepayment of account receivables and an office lease agreement (see also Note 13a). Out of the short-term and restricted bank deposits, a total of $ 10,330 and $ 7,321 are restricted short-term deposits as of December 31, 2012 and 2013, respectively. | |||||||||||
Marketable Securities, Policy [Policy Text Block] | ' | ||||||||||
f. | Marketable securities: | ||||||||||
The Company accounts for investments in debt securities in accordance with ASC 320, "Investments-Debt and Equity Securities". | |||||||||||
Management determines the appropriate classification of its investments in marketable debt securities at the time of purchase and reevaluates such determinations at each balance sheet date. For the years ended December 31, 2012 and 2013, all securities are classified as held-to-maturity since the Company has the intent and ability to hold the securities to maturity and, accordingly, debt securities are stated at amortized cost. | |||||||||||
The amortized cost of held-to-maturity securities is adjusted for amortization of premiums and accretion of discounts to maturity and any other than temporary impairment losses. Such amortization and interest are included in the consolidated statement of operations as financial income or expenses, as appropriate. | |||||||||||
For the years ended December 31, 2011, 2012 and 2013, no other than temporary impairment losses have been identified. | |||||||||||
Inventory, Policy [Policy Text Block] | ' | ||||||||||
g. | Inventories: | ||||||||||
Inventories are stated at the lower of cost or market value. Cost is determined as follows: | |||||||||||
Raw materials - using the "weighted average cost" method. | |||||||||||
Finished products - using the "weighted average cost" method with the addition of direct manufacturing costs. | |||||||||||
The Group periodically evaluates the quantities on hand relative to current and historical selling prices, historical and projected sales volume and technological obsolescence. Based on these evaluations, inventory write-offs are taken based on slow moving items, technological obsolescence, excess inventories, discontinuation of products lines and for market prices lower than cost. | |||||||||||
Long Term Bank Deposits [Policy Text Block] | ' | ||||||||||
h. | Long-term and restricted bank deposits: | ||||||||||
Bank deposits and the related accrued interest with maturities of more than one year are included in long-term investments and presented at their cost. Accrued interest that is paid within a one year period is included in other receivables and prepaid expenses. The deposits are denominated in dollars and bear interest at an average rate of 2.54% and 2.57% for the years ended December 31, 2012 and 2013, respectively. In connection with the long-term bank loans, the Company is required to maintain compensating balances with the banks (see also Note 12). Out of the total long-term bank deposits, a total of $ 9,251 and $ 6,596 are restricted long-term deposits as of December 31, 2012 and 2013, respectively. The Company is required to maintain deposits in the same banks that provided the loans. | |||||||||||
Investment, Policy [Policy Text Block] | ' | ||||||||||
i. | Investment in an affiliated company: | ||||||||||
The Company accounts for investment in affiliated company in which it has the ability to exercise significant influence over the operating and financial policies, using the equity method of accounting in accordance with the requirements of ASC 323, "Investments - Equity Method and Joint Ventures". | |||||||||||
Investment in affiliated company represents investment in ordinary shares, preferred shares, convertible loans and non-convertible loans. According to ASC 323, additional losses of such company in excess of the carrying amount of the equity investment are recognized based on the seniority level (priority in liquidation) of the particular type of investment held by the Company. | |||||||||||
The Company's investment is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable in accordance with ASC 323. During the years ended December 31, 2011, 2012 and 2013, no impairment losses had been identified. In May 2013, the Company acquired the activity of the affiliated company. (see also Note 3). | |||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | ||||||||||
j. | Property and equipment: | ||||||||||
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets, at the following annual rates: | |||||||||||
% | |||||||||||
Computers and peripheral equipment | 33 | ||||||||||
Office furniture and equipment | 6 - 20 (mainly 15%) | ||||||||||
Leasehold improvements | Over the shorter of the term of | ||||||||||
the lease or the useful life of the asset | |||||||||||
The Group's long-lived assets are reviewed for impairment in accordance with ASC 360-10-35, "Property, Plant and Equipment - Subsequent Measurement", whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. Recoverability of assets (asset group) to be held and used is measured by a comparison of the carrying amount of an asset (asset group) to the future undiscounted cash flows expected to be generated by the asset if such assets are considered to be impaired. The impairment to be recognized is measured by the amount by which the carrying amount of the assets (asset groups) exceeds the fair value of the assets (asset groups). The loss is allocated to the long-lived assets of the Group on a pro rata basis using the relative carrying amounts of those assets, except that the loss allocated to an individual long-lived asset of the Group will not reduce the carrying amount of that asset below its fair value whenever that fair value is determinable. During the years ended December 31, 2011, 2012 and 2013, no impairment losses had been identified for property and equipment since the fair value of those assets (asset groups) was higher than its carrying amounts. | |||||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ' | ||||||||||
k. | Intangible assets: | ||||||||||
Intangible assets are comprised of acquired technology, customer relations, trade names and existing contracts for maintenance. | |||||||||||
Intangible assets that are not considered to have an indefinite useful life are amortized using the straight-line basis over their estimated useful lives, which range from three to ten years. Recoverability of these assets is measured by a comparison of the carrying amount of the asset to the undiscounted future cash flows expected to be generated by the assets. If the assets are considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired assets. | |||||||||||
During the years ended December 31, 2011, 2012 and 2013, no impairment losses were identified. | |||||||||||
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | ' | ||||||||||
l. | Goodwill: | ||||||||||
Goodwill and certain other purchased intangible assets have been recorded as a result of acquisitions. Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill is not amortized, but rather is subject to an impairment test. | |||||||||||
The Group performs an annual impairment test during the fourth quarter of each fiscal year, or more frequently if impairment indicators are present. The Group operates in one operating segment, and this segment comprises its only reporting unit. | |||||||||||
ASC 350, "Intangibles – Goodwill and Other", prescribes a two-phase process for impairment testing of goodwill. The first phase screens for impairment, while the second phase (if necessary) measures impairment. Goodwill impairment is deemed to exist if the net book value of a reporting unit exceeds its estimated fair value. In such case, the second phase is then performed, and the Group measures impairment by comparing the carrying amount of the reporting unit's goodwill to the implied fair value of that goodwill. An impairment loss is recognized in an amount equal to the excess. The Group has an option to perform a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount prior to performing the two-step goodwill impairment test. If this is the case, the two-step goodwill impairment test is required. If it is more-likely-than-not that the fair value of a reporting unit is greater than its carrying amount, the two-step goodwill impairment test is not required. | |||||||||||
In addition, pursuant to ASC 350 an entity is allowed to perform a qualitative impairment assessment. If the entity determines that it is not more likely than not that the fair value of the reporting unit is less than the carrying amount, further testing of indefinite-lived intangible assets for impairment is not required and the entity would not need to calculate the fair value of the asset and perform a quantitative impairment test. The Group performed a quantitative impairment test during the year ended December 31, 2013. | |||||||||||
For each of the three years in the period ended December 31, 2013, the Group performed an annual impairment analysis, using market capitalization, and no impairment losses have been identified. | |||||||||||
Revenue Recognition, Policy [Policy Text Block] | ' | ||||||||||
m. | Revenue recognition: | ||||||||||
The Group generates its revenues primarily from the sale of products through a direct sales force and sales representatives. The Group's products are delivered to its customers, which include original equipment manufacturers, network equipment providers, systems integrators and distributors in the telecommunications and networking industries, all of whom are considered end-users. | |||||||||||
Revenues from products and services are recognized in accordance with Staff Accounting Bulletin ("SAB") No. 104, "Revenue Recognition", when the following criteria are met: persuasive evidence of an arrangement exists, delivery of the product has occurred, the fee is fixed or determinable, and collectability is probable. The Group has no remaining obligation to customers after the date on which products are delivered other than pursuant to warranty obligations and right of return. | |||||||||||
In a multiple element arrangement, Accounting Standards Update ("ASU”) No. 2009-13, Topic 605 - "Multiple-Deliverable Revenue Arrangements" requires the allocation of arrangement consideration to each deliverable to be based on the relative selling price. | |||||||||||
The selling price for a deliverable is based on its vendor-specific objective evidence ("VSOE") if available, third-party evidence ("TPE") if VSOE is not available, or estimated selling price ("ESP") if neither VSOE nor TPE is available. The Group then recognizes revenue on each deliverable in accordance with its policies for product and service revenue recognition. VSOE of selling price is based on the price charged when the element is sold separately. In determining VSOE, the Group requires that a substantial majority of the selling prices fall within a narrow range based on stand-alone rates. TPE of selling price is established by evaluating largely interchangeable competitor products or services in stand-alone sales to similarly situated customers. However, as the Group's products contain a significant element of proprietary technology and its solutions offer substantially different features and functionality, the comparable pricing of products with similar functionality typically cannot be obtained. Additionally, as the Group is unable to reliably determine what competitors products' selling prices are on a stand-alone basis, the Group is not typically able to determine TPE. The ESP is established considering multiple factors including, but not limited to, pricing practices in different geographical areas and through different sales channels, gross margin objectives, internal costs, competitors' pricing strategies, and industry technology lifecycles. The selling price of the products and professional services was based on ESP. Maintenance selling price was based on VSOE. | |||||||||||
The Group limits the amount of revenue recognition for delivered elements to the amount that is not contingent on the future delivery of products or services or subject to customer- specific return or refund privileges. The Group evaluates each deliverable in an arrangement to determine whether they represent separate units of accounting. | |||||||||||
The Group grants to certain customers a right of return or the ability to exchange a specific percentage of the total price paid for products they have purchased over a limited period for other products. The Group maintains a provision for product returns and exchanges and other incentives based on its experience with historical sales returns, analysis of credit memo data and other known factors, in accordance with SAB 104. The provision was deducted from revenues and amounted to $ 1,232 and $ 1,288 as of December 31, 2012 and 2013, respectively. | |||||||||||
Revenues from the sale of products which were not yet determined to be final sales due to acceptance provisions are deferred and included in deferred revenues. In cases where collectability is not probable, revenues are deferred and recognized upon collection. | |||||||||||
Standard Product Warranty, Policy [Policy Text Block] | ' | ||||||||||
n. | Warranty costs: | ||||||||||
The Group generally provides a warranty period of 12 months at no extra charge. The Group estimates the costs that may be incurred under its basic limited warranty and records a liability in the amount of such costs at the time product revenue is recognized. Factors that affect the Group's warranty liability include the number of installed units, historical and anticipated rates of warranty claims, and cost per claim. The Group periodically assesses the adequacy of its recorded warranty liability and adjusts the amount as necessary. As of December 31, 2012 and 2013, the provision for warranty amounted to $ 497 and $ 406, respectively. | |||||||||||
Research and Development Expense, Policy [Policy Text Block] | ' | ||||||||||
o. | Research and development costs: | ||||||||||
Research and development costs, net of government grants received, are charged to the statement of operations as incurred. The total government grants presented as a reduction from research and development expenses during the years ended December 31, 2011, 2012 and 2013 were $ 2,776, $ 2,729 and $ 2,799, respectively. | |||||||||||
Income Tax, Policy [Policy Text Block] | ' | ||||||||||
p. | Income taxes: | ||||||||||
The Group accounts for income taxes in accordance with ASC 740, "Income Taxes". ASC 740 prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and for carry forward losses. Deferred taxes are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Group records a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value if it is more likely than not that some portion or all of the deferred tax asset will not be realized. | |||||||||||
In addition, ASC 740 prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The first step is to evaluate the tax position taken or expected to be taken in a tax return. This is done by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. | |||||||||||
Interest and penalties assessed by taxing authorities on an underpayment of income taxes are included as a component of income tax expense in the consolidated statements of operations. | |||||||||||
Comprehensive Income, Policy [Policy Text Block] | ' | ||||||||||
q. | Comprehensive income (loss): | ||||||||||
The Group accounts for comprehensive income (loss) in accordance with ASC 220, "Comprehensive Income". ASC 220 establishes standards for the reporting and display of comprehensive income and its components in a full set of general purpose financial statements. Comprehensive income (loss) generally represents all changes in shareholders' equity during the period except those resulting from investments by, or distributions to, shareholders. The Group determined that its items of comprehensive income (loss) relate to gains and losses on hedging derivatives instruments. | |||||||||||
The Group presents total comprehensive income (loss) in accordance with ASU 2011-05, Topic 220. "Presentation of Comprehensive Income" and ASU 2011-12, Topic 220 - Comprehensive Income. ASU 2011-05 requires an entity to present, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements and eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders' equity. The Company chose to present the components of net income and other comprehensive income in two separate but consecutive statements. | |||||||||||
During the year ended December 31, 2013, the Company adopted ASU. 2013-02, Topic 350, "Comprehensive Income", which amends Topic 220 to improve the reporting of reclassifications out of accumulated other comprehensive income to the respective line items in net income. The adoption of ASU 2013-02, Topic 350 did not have a material impact on the consolidated financial statements. | |||||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' | ||||||||||
r. | Concentrations of credit risk: | ||||||||||
Financial instruments that potentially subject the Group to concentrations of credit risk consist principally of cash and cash equivalents, bank deposits, trade receivables and foreign currency derivative contracts. | |||||||||||
The majority of the Group's cash and cash equivalents and bank deposits are invested in dollar instruments with major banks in Israel and the United States. Such investments in the United States may be in excess of insured limits and are not insured in other jurisdictions. Management believes that the financial institutions that hold the Group's investments are corporations with high credit standing. Accordingly, management believes that low credit risk exists with respect to these financial investments. | |||||||||||
Marketable securities include investments in debentures of U.S corporations. Marketable securities consist of highly liquid debt instruments of corporations with high credit standing. Management believes that the portfolio is well diversified and, accordingly, minimal credit risk exists with respect to these marketable debt securities. | |||||||||||
The trade receivables of the Group are derived from sales to customers located primarily in the Americas, the Far East, Israel and Europe. However, under certain circumstances, the Group may require letters of credit, other collateral, additional guarantees or advance payments. Regarding certain credit balances, the Group is covered by foreign trade risk insurance. The Group performs ongoing credit evaluations of its customers and establishes an allowance for doubtful accounts based upon a specific review. | |||||||||||
Senior Convertible Notes [Policy Text Block] | ' | ||||||||||
s. | Senior convertible notes: | ||||||||||
The Company accounts for senior convertible notes in accordance with ASC 470-20, "Debt with Conversion and Other Options". ASC 470-20 specifies that issuers of such instruments should separately account for the liability and equity components on the issuance day in a manner that will reflect the entity's nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. See also Note 11. | |||||||||||
The Company presents the outstanding principal amount of its senior convertible notes as a long-term liability, in accordance with ASC 210-10-45, "Other Presentation Matters", (based on its expected redemption, taking into consideration redemption options of the holders). The debt is classified as a long-term liability until the date of conversion on which it would be reclassified to equity, or within one year of the first contractual redemption date, on which it would be reclassified as a short-term liability. Accrued interest on the senior convertible notes is included in "other payables and accrued expenses". | |||||||||||
According to ASC 470-20, if an instrument within its scope is repurchased, an issuer shall allocate the consideration transferred and related transaction costs incurred, to the extinguishment of the liability component and the reacquisition of the equity component. See also Note 11. | |||||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | ||||||||||
t. | Basic and diluted earnings (loss) per share: | ||||||||||
Basic earnings (loss) per share are computed based on the weighted average number of ordinary shares outstanding during each year. Diluted earnings (loss) per share are computed based on the weighted average number of ordinary shares outstanding during each year, plus potential dilutive ordinary shares considered outstanding during the year, in accordance with ASC 260, "Earnings Per Share". | |||||||||||
Senior convertible notes and certain outstanding stock options, restricted share units ("RSUs") and warrants have been excluded from the calculation of the diluted earnings per share since such securities are anti-dilutive for all years presented. The total weighted average number of shares related to the senior convertible notes and outstanding options, RSUs and warrants that have been excluded from the calculation of diluted earnings (loss) per share was 2,727,374, 4,072,517 and 1,545,867 for the years ended December 31, 2011, 2012 and 2013, respectively. | |||||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | ||||||||||
u. | Accounting for stock-based compensation: | ||||||||||
The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation-Stock Compensation". ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company's consolidated statement of operations. | |||||||||||
The Company recognizes compensation expenses for the value of its awards based on the accelerated method over the requisite service period of each of the awards, net of estimated forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Estimated forfeitures are based on actual historical pre-vesting forfeitures. | |||||||||||
The Company applies ASC 718 and ASC 505-50, "Equity-Based Payments to Non-Employees" with respect to options and warrants issued to non-employees. Accordingly, the Company uses option valuation models to measure the fair value of the options and warrants at the measurement date as defined in ASC 505-50. | |||||||||||
The Company accounted for changes in award terms as a modification in accordance with ASC 718. A modification to the terms of an award should be treated as an exchange of the original award for a new award with total compensation cost equal to the grant-date fair value of the original award plus the incremental value measured at the same date. Under ASC 718, the calculation of the incremental value is based on the excess of the fair value of the new (modified) award based on current circumstances over the fair value of the original award measured immediately before its terms are modified based on current circumstances. | |||||||||||
The weighted-average estimated fair value of employee stock options granted during the years ended December 31, 2011, 2012 and 2013, was $ 2.69, $ 1.35 and $ 3.00 per share, respectively, using the Black-Scholes option pricing formula. Fair values were estimated using the following weighted-average assumptions (annualized percentages): | |||||||||||
Year ended December 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
Dividend yield | 0% | 0% | 0% | ||||||||
Expected volatility | 53.5%-59.6% | 56.6%-61.5% | 58.9%-61.9% | ||||||||
Risk-free interest | 0.8%-2.04% | 0.54%-1.04% | 0.63%-1.78% | ||||||||
Expected life | 4.67-5.69 years | 4.79-5.70 years | 4.72-5.67 years | ||||||||
Forfeiture rate | 10.00% | 5.50% | 4.00% | ||||||||
The Company used its historical volatility in accordance with ASC 718. The computation of volatility uses historical volatility derived from the Company's exchange traded shares. The expected term of options granted is estimated based on historical experience and represents the period of time that options granted are expected to be outstanding. The risk free interest rate assumption is the implied yield currently available on United States treasury zero-coupon issues with a remaining term equal to the expected life of the Company's options. The dividend yield assumption is based on the Company's historical experience and expectation of no future dividend payouts and may be subject to substantial change in the future. The Company has historically not paid cash dividends and has no foreseeable plans to pay cash dividends in the future. | |||||||||||
The total equity-based compensation expenses relating to all of the Company's equity-based awards recognized for the years ended December 31, 2011, 2012 and 2013 were included in items of the consolidated statements of operations as follows: | |||||||||||
Year ended December 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
Cost of revenues | $ | 130 | $ | 61 | $ | 62 | |||||
Research and development expenses, net | 526 | 430 | 408 | ||||||||
Selling and marketing expenses | 964 | 437 | 625 | ||||||||
General and administrative expenses | 703 | 601 | 606 | ||||||||
Total equity-based compensation expenses | $ | 2,323 | *) | $ | 1,529 | $ | 1,701 | ||||
*) Also includes equity-based compensation that was classified as a liability. | |||||||||||
Treasury Stock [Policy Text Block] | ' | ||||||||||
v. | Treasury stock: | ||||||||||
The Company has repurchased its ordinary shares from time to time in the open market and holds such shares as treasury stock. The Company presents the cost to repurchase treasury stock as a reduction of shareholders' equity. See also Note 14a. | |||||||||||
Severance Pay [Policy Text Block] | ' | ||||||||||
w. | Severance pay: | ||||||||||
The liability for severance pay for Israeli employees is calculated pursuant to Israel's Severance Pay Law, 1963, based on the most recent salary of the employees multiplied by the number of years of employment as of the balance sheet date for all employees in Israel. Employees who have been employed for more than one year period, are entitled to one month's salary for each year of employment, or a portion thereof. The Group's liability for all of its Israeli employees is fully provided for by monthly deposits with severance pay funds, insurance policies and by an accrual. The value of these deposits is recorded as an asset in the Company's balance sheet. | |||||||||||
The deposited funds include profits accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israel's Severance Pay Law or labor agreements. | |||||||||||
Since March 2011, the Company's agreements with new employees in Israel are under Section 14 of the Israeli Severance Pay Law, 1963. The Company's contributions for severance pay have replaced its severance obligation. Upon contribution of the full amount of the employee's monthly salary for each year of service, no additional calculations are conducted between the parties regarding the matter of severance pay and no additional payments are made by the Company to the employee. The Company is legally released from the obligations to employees once the deposit amounts have been paid. | |||||||||||
Severance pay expenses for the years ended December 31, 2011, 2012 and 2013, amounted to $ 2,162, $ 1,850 and $ 1,878, respectively. | |||||||||||
Employee Benefit Plan [Policy Text Block] | ' | ||||||||||
x. | Employee benefit plan: | ||||||||||
The Group has 401(k) defined contribution plans covering employees in the U.S. All eligible employees may elect to contribute a portion of their annual compensation to the plan through salary deferrals, subject to the IRS limit of $ 17 and $ 17.5 during the years ended December 31, 2012 and 2013, respectively, plus a catch-up contribution of $ 5.5 for participants age 50 or over. The Group matches 50% of employees contributions, up to a maximum of 6% of the employees annual pay. In the years ended December 31, 2011, 2012 and 2013, the Group matched contributions in the amount of $ 301, $ 276 and $ 244, respectively . | |||||||||||
Advertising Costs, Policy [Policy Text Block] | ' | ||||||||||
y. | Advertising expenses: | ||||||||||
Advertising expenses are charged to the statements of operations as incurred. Advertising expenses for the years ended December 31, 2011, 2012 and 2013 amounted to $ 442, $ 329 and $ 342, respectively. | |||||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' | ||||||||||
z. | Fair value of financial instruments: | ||||||||||
The estimated fair value of financial instruments has been determined by the Group using available market information and valuation methodologies. Considerable judgment is required in estimating fair values. Accordingly, the estimates may not be indicative of the amounts the Group could realize in a current market exchange. | |||||||||||
The following methods and assumptions were used by the Group in estimating its fair value disclosures for financial instruments: | |||||||||||
The carrying amounts of cash and cash equivalents, short-term bank deposits, trade receivables, trade payables, other receivables and other payables approximate their fair value due to the short-term maturity of such instruments. The fair value of long-term bank loans and senior convertible loans also approximates their carrying value, since they bear interest at rates close to the prevailing market rates. | |||||||||||
The fair value of foreign currency contracts is estimated by obtaining current quotes from banks and market observable data of similar instruments. | |||||||||||
Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC 820, "Fair Value Measurements and Disclosures" establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: | |||||||||||
Level 1 - | Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets | ||||||||||
Level 2 - | Observable inputs, other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data | ||||||||||
Level 3 - | Unobservable inputs which are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs | ||||||||||
The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. See also Note 9. | |||||||||||
Derivatives, Methods of Accounting, Hedging Derivatives [Policy Text Block] | ' | ||||||||||
aa. | Derivatives and hedging: | ||||||||||
The Group accounts for derivatives and hedging based on ASC 815, "Derivatives and Hedging". | |||||||||||
The Group accounts for its derivative instruments as either assets or liabilities and carries them at fair value. Derivative instruments that are not designated and qualified as hedging instruments must be adjusted to fair value through earnings. The changes in fair value of such instruments are included as earnings in "Financial income, net" at each reporting year. | |||||||||||
For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income (loss) in equity and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings and is classified as payroll and rent expenses. The ineffective portion of the gain or loss on the derivative instrument is recognized in current earnings and classified as financial income or expenses. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. | |||||||||||
During the year ended December 31, 2012, the Group recorded accumulated other comprehensive income in the amount of $ 1,543 from its forward and options collar (cylinder) contracts with respect to payroll expenses which were expected to be incurred during the year ended December 31, 2013. Such amount was classified into earnings during the year ended December 31, 2013. As of December 31, 2013, there are no outstanding forward and options collar (cylinder) contracts. See also Note 19. | |||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | ||||||||||
ab. | Impact of recently issued accounting pronouncements: | ||||||||||
In July 2013, the Financial Accounting Standards Board ("FASB") issued ASU. 2013-11, Topic 740, " Income Taxes", which limits the situations in which unrecognized tax benefits are offset against a deferred tax asset for a net operating loss carryforward, similar tax loss or tax credit carryforward. ASU 2013-11 is effective for reporting periods beginning after December 15, 2013. The Company intends to adopt this standard in 2014 and does not expect the adoption will have a material impact on its consolidated results of operations or financial condition. | |||||||||||
Reclassification, Policy [Policy Text Block] | ' | ||||||||||
ac. | Reclassification: | ||||||||||
Certain amounts in prior years' financial statements have been reclassified to conform to the current year's presentation. | |||||||||||
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Accounting Policies [Abstract] | ' | ||||||||||
Property Plant And Equipment Estimated Useful Lives [Table Text Block] | ' | ||||||||||
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets, at the following annual rates: | |||||||||||
% | |||||||||||
Computers and peripheral equipment | 33 | ||||||||||
Office furniture and equipment | 6 - 20 (mainly 15%) | ||||||||||
Leasehold improvements | Over the shorter of the term of | ||||||||||
the lease or the useful life of the asset | |||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||
Fair values were estimated using the following weighted-average assumptions (annualized percentages): | |||||||||||
Year ended December 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
Dividend yield | 0% | 0% | 0% | ||||||||
Expected volatility | 53.5%-59.6% | 56.6%-61.5% | 58.9%-61.9% | ||||||||
Risk-free interest | 0.8%-2.04% | 0.54%-1.04% | 0.63%-1.78% | ||||||||
Expected life | 4.67-5.69 years | 4.79-5.70 years | 4.72-5.67 years | ||||||||
Forfeiture rate | 10.00% | 5.50% | 4.00% | ||||||||
Schedule Of Equity Based Compensation Expenses [Table Text Block] | ' | ||||||||||
The total equity-based compensation expenses relating to all of the Company's equity-based awards recognized for the years ended December 31, 2011, 2012 and 2013 were included in items of the consolidated statements of operations as follows: | |||||||||||
Year ended December 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
Cost of revenues | $ | 130 | $ | 61 | $ | 62 | |||||
Research and development expenses, net | 526 | 430 | 408 | ||||||||
Selling and marketing expenses | 964 | 437 | 625 | ||||||||
General and administrative expenses | 703 | 601 | 606 | ||||||||
Total equity-based compensation expenses | $ | 2,323 | *) | $ | 1,529 | $ | 1,701 | ||||
*) Also includes equity-based compensation that was classified as a liability. | |||||||||||
ASSET_PURCHASE_AGREEMENT_WITH_1
ASSET PURCHASE AGREEMENT WITH MAILVISION LTD. ("MAILVISION") (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Business Combinations [Abstract] | ' | |||||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | ' | |||||||
The following table summarizes, as of May 13, 2013, the estimated fair values of the assets acquired and liabilities assumed with respect to the acquisition: | ||||||||
Core technology | $ | 2,322 | ||||||
Customer relationships | 266 | |||||||
Goodwill | 1,654 | |||||||
Total assets acquired | 4,242 | |||||||
Net working capital | -529 | |||||||
Other assumed liabilities | -279 | |||||||
Total assumed liabilities | -808 | |||||||
Net assets acquired | $ | 3,434 | ||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] | ' | |||||||
The fair value of the Sale Option was estimated using the following assumptions (annualized percentages): | ||||||||
May 13, | December 31, | |||||||
2013 | 2013 | |||||||
Exercise price | $ | 7,097 | $ | 7,124 | ||||
Dividend yield | 0 | % | 0 | % | ||||
Expected volatility | 60 | % | 50 | % | ||||
Risk-free interest | 0.15 | % | 0.1 | % | ||||
Expected life | 1 year | 0.4 years | ||||||
MARKETABLE_SECURITIES_AND_ACCR1
MARKETABLE SECURITIES AND ACCRUED INTEREST (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Marketable Securities and Accrued Interest [Abstract] | ' | ||||||||||
Held-to-maturity Securities [Table Text Block] | ' | ||||||||||
The following is a summary of held to maturity marketable securities: | |||||||||||
December 31, 2012 | |||||||||||
Amortized | Unrealized | Fair | |||||||||
cost | gains | Value | |||||||||
Corporate debentures: | |||||||||||
Maturing within one year | $ | 7,625 | $ | 62 | $ | 7,687 | |||||
Maturing between one to two years | 15,762 | 299 | 16,061 | ||||||||
Accrued interest | 341 | - | 341 | ||||||||
$ | 23,728 | $ | 361 | $ | 24,089 | ||||||
December 31, 2013 | |||||||||||
Amortized | Unrealized | Fair | |||||||||
cost | gains | Value | |||||||||
Corporate debentures: | |||||||||||
Maturing within one year | $ | 15,438 | $ | 35 | $ | 15,473 | |||||
Accrued interest | 268 | - | 268 | ||||||||
$ | 15,706 | $ | 35 | $ | 15,741 | ||||||
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of Product Information [Table Text Block] | ' | |||||||
December 31, | ||||||||
2012 | 2013 | |||||||
Raw materials | $ | 7,684 | $ | 5,931 | ||||
Finished products | 9,113 | 7,880 | ||||||
$ | 16,797 | $ | 13,811 | |||||
INVESTMENT_IN_AN_AFFILIATED_CO1
INVESTMENT IN AN AFFILIATED COMPANY (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||||||||
Schedule of Balances of Affiliates Investment [Table Text Block] | ' | ||||||||||
a. | Balances: | ||||||||||
December 31, | |||||||||||
2012 | 2013 | ||||||||||
Other payables and accrued expenses | $ | 492 | $ | - | |||||||
Schedule of Transactions of Affiliates Investment [Table Text Block] | ' | ||||||||||
b. | Transactions: | ||||||||||
Year ended December 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
Amounts charged - cost of revenues | $ | 2,164 | $ | 1,414 | $ | 432 | |||||
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment [Table Text Block] | ' | |||||||
December 31, | ||||||||
2012 | 2013 | |||||||
Cost: | ||||||||
Computers and peripheral equipment | $ | 23,463 | $ | 24,871 | ||||
Office furniture and equipment | 10,652 | 10,753 | ||||||
Leasehold improvements | 2,336 | 2,253 | ||||||
36,451 | 37,877 | |||||||
Accumulated depreciation: | ||||||||
Computers and peripheral equipment | 21,556 | 23,075 | ||||||
Office furniture and equipment | 9,473 | 9,650 | ||||||
Leasehold improvements | 1,803 | 1,961 | ||||||
32,832 | 34,686 | |||||||
Depreciated cost | $ | 3,619 | $ | 3,191 | ||||
INTANGIBLE_ASSETS_AND_DEFERRED1
INTANGIBLE ASSETS AND DEFERRED CHARGES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | ||||||||||||
Useful life | December 31, | ||||||||||||
(years) | 2012 | 2013 | |||||||||||
a. | Impaired Cost: | ||||||||||||
Acquired technology | 10-May | $ | 15,517 | $ | 17,839 | ||||||||
Customer relationship | 4.5-9 | 4,172 | 4,438 | ||||||||||
Trade name | 3 | 415 | 415 | ||||||||||
Existing contracts for maintenance | 3 | 181 | 181 | ||||||||||
20,285 | 22,873 | ||||||||||||
Accumulated amortization: | |||||||||||||
Acquired technology | 13,399 | 14,255 | |||||||||||
Customer relationship | 3,433 | 3,770 | |||||||||||
Trade name | 415 | 415 | |||||||||||
Existing contracts for maintenance | 181 | 181 | |||||||||||
17,428 | 18,621 | ||||||||||||
Amortized cost | $ | 2,857 | $ | 4,252 | |||||||||
Schedule of Expected Amortization Expense [Table Text Block] | ' | ||||||||||||
Expected amortization expenses are as follows: | |||||||||||||
Year ending December 31, | |||||||||||||
2014 | $ | 1,355 | |||||||||||
2015 | 1,180 | ||||||||||||
2016 | 846 | ||||||||||||
2017 | 481 | ||||||||||||
2018 | 390 | ||||||||||||
$ | 4,252 | ||||||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | ' | ||||||||||
The Group's financial assets and liabilities measured at fair value on a recurring basis, consisted of the following types of instruments as of the following dates: | |||||||||||
December 31, 2012 | |||||||||||
Fair value measurements using input type | |||||||||||
Level 2 | Level 3 | Total | |||||||||
Financial assets related to foreign currency derivative hedging contracts | $ | 1,303 | $ | - | $ | 1,303 | |||||
Financial Liabilities: | |||||||||||
Foreign currency derivative contracts | $ | -362 | $ | - | $ | -362 | |||||
Contingent consideration related to NSC's former shareholders | - | -115 | -115 | ||||||||
Total Financial liability | $ | -362 | $ | -115 | $ | -477 | |||||
December 31, 2013 | |||||||||||
Fair value measurements using input type | |||||||||||
Level 2 | Level 3 | Total | |||||||||
Contingent consideration related to Mailvision | $ | - | $ | -556 | $ | -556 | |||||
Total Financial liability | $ | - | $ | -556 | $ | -556 | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | ' | ||||||||||
Fair value measurements using significant unobservable inputs (Level 3): | |||||||||||
Balance at January 1, 2013 | $ | -115 | |||||||||
Liabilities incurred in relation to the APA with Mailvision | -808 | ||||||||||
Repayment of NSC's contingent consideration | 120 | ||||||||||
Adjustment due to time change value | 247 | ||||||||||
Balance at December 31, 2013 | $ | -556 | |||||||||
OTHER_PAYABLES_AND_ACCRUED_EXP1
OTHER PAYABLES AND ACCRUED EXPENSES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Schedule Of Other Payables And Accrued Expenses [Table Text Block] | ' | |||||||
December 31, | ||||||||
2012 | 2013 | |||||||
Vacation accrual | $ | 2,476 | $ | 2,990 | ||||
Royalties provision | 420 | 500 | ||||||
Other employees and payroll accruals | 3,542 | 4,112 | ||||||
Government authorities | 385 | 667 | ||||||
Accrued expenses | 7,877 | 9,351 | ||||||
Others | 362 | 338 | ||||||
$ | 15,062 | $ | 17,958 | |||||
COMMITMENTS_AND_CONTINGENT_LIA1
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||
Future minimum rental commitments under non-cancelable operating leases are as follows: | |||||
Year ending December 31, | |||||
2014 | $ | 6,386 | |||
2015 | 6,310 | ||||
2016 | 6,614 | ||||
2017 | 6,361 | ||||
2018 and on | 42,346 | ||||
Total minimum lease payments *) | $ | 68,017 | |||
*) | Minimum payments have been reduced by minimum sublease rental of $ 1,297 due in the future under non-cancelable subleases. | ||||
EQUITY_Tables
EQUITY (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||
Schedule of Stockholders Equity Note, Warrants or Rights [Table Text Block] | ' | |||||||||||||||||
Warrants issued to non-employees: | ||||||||||||||||||
Number of | Weighted | |||||||||||||||||
shares | average exercise | |||||||||||||||||
price | ||||||||||||||||||
Outstanding at beginning of year | 26,500 | $ | 4.12 | |||||||||||||||
Changes during the year: | ||||||||||||||||||
Granted | 63,500 | $ | 4.36 | |||||||||||||||
Forfeited | -10,000 | $ | 3.65 | |||||||||||||||
Warrants outstanding at end of year | 80,000 | $ | 4.37 | |||||||||||||||
Warrants exercisable at end of year | 13,500 | $ | 4.52 | |||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | |||||||||||||||||
The following is a summary of the Company's stock option activity and related information for the year ended December 31, 2013: | ||||||||||||||||||
Amount | Weighted | Weighted | Aggregate | |||||||||||||||
of options | average | average | intrinsic | |||||||||||||||
exercise | remaining | value | ||||||||||||||||
price | contractual | |||||||||||||||||
term (in | ||||||||||||||||||
years) | ||||||||||||||||||
Outstanding at beginning of year | 3,777,032 | $ | 4.74 | 4 | $ | 1,477 | ||||||||||||
Changes during the year: | ||||||||||||||||||
Granted | 817,531 | $ | 4.66 | |||||||||||||||
Exercised | (672,645 | ) | $ | 2.82 | ||||||||||||||
Forfeited | (194,375 | ) | $ | 5.16 | ||||||||||||||
Expired | (534,000 | ) | $ | 10.78 | ||||||||||||||
Options outstanding at end of year | 3,193,543 | $ | 4.09 | 4.5 | $ | 9,845 | ||||||||||||
Vested and expected to vest | 3,065,801 | $ | 4.09 | 4.5 | $ | 9,451 | ||||||||||||
Options exercisable at end of year | 1,446,182 | $ | 4.25 | 3.1 | $ | 4,279 | ||||||||||||
Schedule Of Share Based Compensation Stock Options Outstanding [Table Text Block] | ' | |||||||||||||||||
The options outstanding as of December 31, 2013, have been separated into ranges of exercise prices, as follows: | ||||||||||||||||||
Range of | Options | Weighted | Weighted | Options | Weighted | |||||||||||||
exercise | outstanding | average | average | exercisable | average | |||||||||||||
price | as of | remaining | exercise | as of | exercise price | |||||||||||||
December 31, | contractual | price | December 31, | of exercisable | ||||||||||||||
2013 | life | 2012 | options | |||||||||||||||
(Years) | ||||||||||||||||||
$ | 0.00-1.10 | 52,316 | 3.85 | $ | 0.01 | 46,566 | $ | 0.01 | ||||||||||
$ | 1.50-2.51 | 363,500 | 4.22 | $ | 2.06 | 190,250 | $ | 2.11 | ||||||||||
$ | 2.57-4.00 | 1,404,365 | 5.15 | $ | 3.21 | 525,732 | $ | 3.08 | ||||||||||
$ | 4.08-6.49 | 1,086,331 | 3.83 | $ | 5.23 | 571,134 | $ | 5.63 | ||||||||||
$ | 6.51-9.24 | 251,031 | 5.14 | $ | 7.02 | 76,500 | $ | 7.24 | ||||||||||
$ | 9.32-14.76 | 36,000 | 0.1 | $ | 9.75 | 36,000 | $ | 9.75 | ||||||||||
3,193,543 | 4.5 | $ | 4.09 | 1,446,182 | $ | 4.25 | ||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | ' | |||||||||||||||||
The following is a summary of the Company's restricted share units ("RSUs") activity and related information for the year ended December 31, 2013: | ||||||||||||||||||
Number of | Weighted | |||||||||||||||||
shares | average grant | |||||||||||||||||
date fair value | ||||||||||||||||||
Outstanding at beginning of year | 182,161 | $ | 3.79 | |||||||||||||||
Changes during the year: | ||||||||||||||||||
Granted | 175,841 | $ | 4.93 | |||||||||||||||
Exercised | (85,541 | ) | $ | 3.74 | ||||||||||||||
RSUs outstanding at end of year | 272,461 | $ | 4.54 | |||||||||||||||
TAXES_ON_INCOME_Tables
TAXES ON INCOME (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | ' | ||||||||||||
Income (loss) before taxes on income is comprised as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Domestic | $ | 5,632 | $ | -2,555 | $ | 475 | |||||||
Foreign | 2,047 | -727 | 2,360 | ||||||||||
$ | 7,679 | $ | -3,282 | $ | 2,835 | ||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||||||
Taxes on income are comprised as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Current taxes | $ | 890 | $ | 527 | $ | 542 | |||||||
Deferred taxes | -652 | 14 | -1,946 | ||||||||||
$ | 238 | $ | 541 | $ | -1,404 | ||||||||
Domestic | $ | 151 | $ | 283 | $ | -634 | |||||||
Foreign | 87 | 258 | -770 | ||||||||||
$ | 238 | $ | 541 | $ | -1,404 | ||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Group's deferred tax liabilities and assets are as follows: | |||||||||||||
December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss carry-forward | $ | 52,035 | $ | 52,976 | |||||||||
Reserves and allowances | 7,016 | 7,843 | |||||||||||
Net deferred tax assets before valuation allowance | 59,051 | 60,819 | |||||||||||
Less - Valuation allowance | -53,865 | -53,687 | |||||||||||
Deferred tax asset | $ | 5,186 | $ | 7,132 | |||||||||
Domestic: | |||||||||||||
Short-term deferred tax asset | $ | 1,157 | $ | 1,397 | |||||||||
Long-term deferred tax asset | 2,547 | 2,953 | |||||||||||
$ | 3,704 | $ | 4,350 | ||||||||||
Foreign: | |||||||||||||
Short-term deferred tax asset | $ | 463 | $ | 880 | |||||||||
Long-term deferred tax asset | 1,019 | 1,902 | |||||||||||
$ | 1,482 | $ | 2,782 | ||||||||||
Schedule Of Income Tax Reconciliation Between Theoretical And Actual Tax Expenses Benefit [Table Text Block] | ' | ||||||||||||
A reconciliation between the theoretical tax expense, assuming all income is taxed at the statutory tax rate applicable to income of the Company, and the actual tax expense (benefit) as reported in the statement of operations is as follows: | |||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Income (loss) before taxes, as reported in the consolidated statements of operations | $ | 7,679 | $ | -3,282 | $ | 2,835 | |||||||
Statutory tax rate | 24 | % | 25 | % | 25 | % | |||||||
Theoretical tax expense (benefit) on the above amount at the Israeli statutory tax rate | $ | 1,843 | $ | -821 | $ | 709 | |||||||
Income tax at rate other than the Israeli statutory tax rate | 275 | -55 | 310 | ||||||||||
Tax advances, withholding tax and non-deductible expenses, including equity based compensation expenses | 1,373 | 807 | 518 | ||||||||||
Deferred taxes on losses for which a valuation allowance was provided | -1,083 | 755 | -2,929 | ||||||||||
Tax adjustment in respect of different tax rates | -1,219 | - | -148 | ||||||||||
Taxes in respect to prior years | -54 | -162 | - | ||||||||||
State and Federal taxes | 93 | 48 | 163 | ||||||||||
Foreign exchange | -901 | 89 | -20 | ||||||||||
Impairment of tax advances | - | - | 64 | ||||||||||
Other | -89 | -120 | -71 | ||||||||||
Actual tax expense (benefit) | $ | 238 | $ | 541 | $ | -1,404 | |||||||
BASIC_AND_DILUTED_EARNINGS_LOS1
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Table Text Block] | ' | ||||||||||
Year ended | |||||||||||
December 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
Numerator: | |||||||||||
Net income (loss) | $ | 7,164 | $ | -4,177 | $ | 4,218 | |||||
Denominator: | |||||||||||
Denominator for basic earnings (loss) per share - weighted average number of ordinary shares, net of | 41,437,927 | 39,125,129 | 38,241,258 | ||||||||
treasury stock | |||||||||||
Effect of dilutive securities: | |||||||||||
Employee stock options and ESPP | 497,170 | - | *) | 855,500 | |||||||
Senior convertible notes | - | *) | - | *) | - | *) | |||||
Denominator for diluted earnings (loss) per share - adjusted weighted average number of shares | 41,935,097 | 39,125,129 | 39,096,758 | ||||||||
*) | Antidilutive. | ||||||||||
FINANCIAL_INCOME_NET_Tables
FINANCIAL INCOME, NET (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Financial Expenses Disclosure [Abstract] | ' | ||||||||||
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | ' | ||||||||||
Year ended | |||||||||||
December 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
Financial expenses: | |||||||||||
Interest | $ | -346 | $ | -900 | $ | -617 | |||||
Amortization of marketable securities premiums and accretion of discounts, net | -416 | -436 | -349 | ||||||||
Exchange rate | -612 | -4 | - | ||||||||
Others | -133 | -201 | -229 | ||||||||
-1,507 | -1,541 | -1,195 | |||||||||
Financial income - | |||||||||||
Interest and others | 1,930 | 1,994 | 1,103 | ||||||||
Exchange rate | - | - | 188 | ||||||||
1,930 | 1,994 | 1,291 | |||||||||
$ | 423 | $ | 453 | $ | 96 | ||||||
GEOGRAPHIC_INFORMATION_Tables
GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | ' | |||||||||||||||||||
The following presents total revenues for the years ended December 31, 2011, 2012 and 2013 and long-lived assets as of December 31, 2011, 2012 and 2013. | ||||||||||||||||||||
2011 | 2012 | 2013 | ||||||||||||||||||
Total | Long- | Total | Long- | Total | Long- | |||||||||||||||
lived | lived | lived | ||||||||||||||||||
revenues | assets | revenues | assets | revenues | assets | |||||||||||||||
Israel | $ | 11,887 | $ | 2,884 | $ | 7,773 | $ | 3,227 | $ | 7,887 | $ | 2,941 | ||||||||
Americas | 85,630 | 314 | 66,443 | 230 | 71,527 | 147 | ||||||||||||||
Europe | 36,322 | 125 | 35,876 | 119 | 37,310 | 74 | ||||||||||||||
Far East | 21,988 | 45 | 17,398 | 43 | 20,508 | 29 | ||||||||||||||
$ | 155,827 | $ | 3,368 | $ | 127,490 | $ | 3,619 | $ | 137,232 | $ | 3,191 | |||||||||
Revenue from External Customers by Products and Services [Table Text Block] | ' | |||||||||||||||||||
Total revenues from external customers divided on the basis of the Company's product lines are as follows: | ||||||||||||||||||||
Year ended | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2011 | 2012 | 2013 | ||||||||||||||||||
Technology | $ | 35,017 | $ | 24,673 | $ | 22,048 | ||||||||||||||
Networking | 120,810 | 102,817 | 115,184 | |||||||||||||||||
$ | 155,827 | $ | 127,490 | $ | 137,232 | |||||||||||||||
DERIVATIVE_INSTRUMENTS_Tables
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block] | ' | |||||||||
The fair value of the Group's outstanding derivative instruments and the effect of derivative instruments in cash flow hedging relationship on other comprehensive income for the years ended December 31, 2012 and 2013, are summarized below: | ||||||||||
Foreign exchange forward and | December 31, | |||||||||
options contracts | Balance sheet | 2012 | 2013 | |||||||
Fair value of foreign exchange forward and options collar (cylinder) contracts | "Other receivables and prepaid expenses" | $ | 1,303 | $ | - | |||||
Gains (losses) recognized in OCI (effective portion) | "Other comprehensive income" | $ | 1,543 | $ | -1,303 | |||||
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | |||||||||
The effect of derivative instruments in cash flow hedging relationship on income for the years ended December 31, 2012 and 2013 is summarized below: | ||||||||||
Foreign exchange forward and | Statements of | Year ended | ||||||||
December 31, | ||||||||||
options contracts | operations | 2012 | 2013 | |||||||
Gain on derivatives recognized in OCI | "Operating expenses" | $ | 1,211 | $ | 1,292 | |||||
Loss (gain) recognized in income on derivatives (effective portion) | "Operating expenses" | $ | 332 | $ | -2,595 | |||||
GENERAL_Details_Textual
GENERAL (Details Textual) (USD $) | 12 Months Ended | 12 Months Ended | |||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 31-May-10 | Dec. 31, 2013 | Apr. 01, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
Mail Vision Affiliated Company [Member] | Mail Vision Affiliated Company [Member] | Mail Vision Affiliated Company [Member] | Natural Speech Communication Ltd [Member] | Minimum [Member] | |||||
Equity Method Investment, Ownership Percentage | ' | ' | ' | ' | 29.60% | 29.20% | 25.61% | ' | ' |
Payments to Acquire Businesses, Gross | $395 | ' | ' | ' | ' | ' | ' | ' | ' |
Entity-Wide Revenue, Major Customer, Percentage | 17.80% | 13.70% | 14.40% | ' | ' | ' | ' | ' | 10.00% |
Maximum Additional Earn-Out Paid | 120 | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition Liability With Regards To Commitment For Future Payments Recorded At Present Value | ' | 391 | ' | 967 | ' | ' | ' | ' | ' |
Business Acquisitions Contingent Consideration At Fair Value | ' | ' | ' | 329 | ' | ' | ' | ' | ' |
Business Acquisition, Contingent Consideration, As At Balance Sheet Date | $556 | $115 | ' | ' | ' | ' | ' | $115 | ' |
SIGNIFICANT_ACCOUNTING_POLICIE3
SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Computers and Peripheral Equipment [Member] | ' |
Disclosure On Annual Depreciation Rate Using Straight Line Method | '33 |
Office Furniture and Equipment [Member] | ' |
Disclosure On Annual Depreciation Rate Using Straight Line Method | '6 - 20 (mainly 15%) |
Leasehold Improvements [Member] | ' |
Disclosure On Annual Depreciation Rate Using Straight Line Method | 'Over the shorter of the term of the lease or the useful life of the asset |
SIGNIFICANT_ACCOUNTING_POLICIE4
SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Dividend yield | 0.00% | 0.00% | 0.00% |
Forfeiture rate | 4.00% | 5.50% | 10.00% |
Minimum [Member] | ' | ' | ' |
Expected volatility | 58.90% | 56.60% | 53.50% |
Risk-free interest | 0.63% | 0.54% | 0.80% |
Expected life | '4 years 8 months 19 days | '4 years 9 months 14 days | '4 years 8 months 1 day |
Maximum [Member] | ' | ' | ' |
Expected volatility | 61.90% | 61.50% | 59.60% |
Risk-free interest | 1.78% | 1.04% | 2.04% |
Expected life | '5 years 8 months 1 day | '5 years 8 months 12 days | '5 years 8 months 8 days |
SIGNIFICANT_ACCOUNTING_POLICIE5
SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Total equity-based compensation expenses | $1,701 | $1,529 | $2,323 | [1] |
Cost of Revenue [Member] | ' | ' | ' | |
Total equity-based compensation expenses | 62 | 61 | 130 | |
Research and Development Expense [Member] | ' | ' | ' | |
Total equity-based compensation expenses | 408 | 430 | 526 | |
Selling and Marketing Expense [Member] | ' | ' | ' | |
Total equity-based compensation expenses | 625 | 437 | 964 | |
General and Administrative Expense [Member] | ' | ' | ' | |
Total equity-based compensation expenses | $606 | $601 | $703 | |
[1] | Also includes equity-based compensation that was classified as a liability. |
SIGNIFICANT_ACCOUNTING_POLICIE6
SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Short Term Bank Deposits Bear Interest Average Rate | 0.97% | 0.81% | ' |
Restricted Short Term Deposits | $7,321,000 | $10,330,000 | ' |
Long Term Bank Deposits Bear Interest Average Rate | 2.57% | 2.54% | ' |
Restricted Long Term Deposits | 6,596,000 | 9,251,000 | ' |
Revenue from Grants | 2,799,000 | 2,729,000 | 2,776,000 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,545,867 | 4,072,517 | 2,727,374 |
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Weighted Average Grant Date Fair Value | $3 | $1.35 | $2.69 |
Severance Cost | 1,878,000 | 1,850,000 | 2,162,000 |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Amount | 244,000 | 276,000 | 301,000 |
Catch Up Contribution Amount Eligible For Participants With Age 50 Or More | 5,500 | ' | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees Gross Pay | 6.00% | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Total | 0 | 1,303,000 | ' |
Advertising Expense | 342,000 | 329,000 | 442,000 |
Allowance For Sales Returns [Member] | ' | ' | ' |
Valuation Allowances and Reserves, Balance, Beginning Balance | 1,288,000 | 1,232,000 | ' |
Warranty Reserves [Member] | ' | ' | ' |
Valuation Allowances and Reserves, Balance, Beginning Balance | 406,000 | 497,000 | ' |
Forward Contracts [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Total | ' | 1,543,000 | ' |
Internal Revenue Service (Irs) [Member] | ' | ' | ' |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Amount | $17,500 | $17,000 | ' |
ASSET_PURCHASE_AGREEMENT_WITH_2
ASSET PURCHASE AGREEMENT WITH MAILVISION LTD. ("MAILVISION") (Details) (USD $) | Dec. 31, 2013 | 13-May-13 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Core technology | ' | $2,322 | ' |
Customer relationships | ' | 266 | ' |
Goodwill | 33,749 | 1,654 | 32,095 |
Total assets acquired | ' | 4,242 | ' |
Net working capital | ' | -529 | ' |
Other assumed liabilities | ' | -279 | ' |
Total assumed liabilities | ' | -808 | ' |
Net assets acquired | ' | $3,434 | ' |
ASSET_PURCHASE_AGREEMENT_WITH_3
ASSET PURCHASE AGREEMENT WITH MAILVISION LTD. ("MAILVISION") (Details 1) (USD $) | 1 Months Ended | 12 Months Ended |
13-May-13 | Dec. 31, 2013 | |
Exercise price | $7,097 | $7,124 |
Dividend yield | 0.00% | 0.00% |
Expected volatility | 60.00% | 50.00% |
Risk-free interest | 0.15% | 0.10% |
Expected life | '1 year | '4 months 24 days |
ASSET_PURCHASE_AGREEMENT_WITH_4
ASSET PURCHASE AGREEMENT WITH MAILVISION LTD. ("MAILVISION") (Details Textual) (USD $) | 1 Months Ended | ||
In Thousands, unless otherwise specified | 13-May-13 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Combination, Fair Value of Earn Out Consideration | $432 | ' | ' |
Business Combination, Fair Value of Sale Options | 376 | ' | ' |
Gain (Loss) on Revaluation of Equity Investments | 95 | ' | ' |
Business Combination, Acquired Core Technology Useful Life | '5 years 6 months | ' | ' |
Business Combination, Customer Relationship Useful Life | '4 years 6 months | ' | ' |
Estimated fair value of First Earn-Out | ' | 446 | ' |
Estimated fair value of Sale Option | ' | 110 | ' |
Long-term Debt, Fair Value | ' | 446 | ' |
Goodwill | 1,654 | 33,749 | 32,095 |
Net assets acquired | 3,434 | ' | ' |
Mail Vision Affiliated Company [Member] | ' | ' | ' |
Business Combination, Wavier Amount Recognized | 1,472 | ' | ' |
Business Combination, Revaluation of Investments | 933 | ' | ' |
Goodwill | 1,654 | ' | ' |
Present Value [Member] | ' | ' | ' |
Present Value of Acquisition Cost | 221 | ' | ' |
2014 Anniversary Date [Member] | ' | ' | ' |
Acquisition Cost | $233 | ' | ' |
MARKETABLE_SECURITIES_AND_ACCR2
MARKETABLE SECURITIES AND ACCRUED INTEREST (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Amortized cost | $15,706 | $23,728 |
Unrealized gains | 35 | 361 |
Fair Value | 15,741 | 24,089 |
Corporate Debt Securities [Member] | Maturing Within One Year [Member] | ' | ' |
Amortized cost | 15,438 | 7,625 |
Unrealized gains | 35 | 62 |
Fair Value | 15,473 | 7,687 |
Corporate Debt Securities [Member] | Maturing Between One to Two Years [Member] | ' | ' |
Amortized cost | ' | 15,762 |
Unrealized gains | ' | 299 |
Fair Value | ' | 16,061 |
Accured Interest [Member] | ' | ' |
Amortized cost | 268 | 341 |
Unrealized gains | 0 | 0 |
Fair Value | $268 | $341 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Raw materials | $5,931 | $7,684 |
Finished products | 7,880 | 9,113 |
Inventory, Net | $13,811 | $16,797 |
INVENTORIES_Details_Textual
INVENTORIES (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Inventory Write-down | $1,746 | $2,306 | $644 |
INVESTMENT_IN_AN_AFFILIATED_CO2
INVESTMENT IN AN AFFILIATED COMPANY (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other payables and accrued expenses | $17,958 | $15,062 |
Mail Vision Affiliated Company [Member] | ' | ' |
Other payables and accrued expenses | $0 | $492 |
INVESTMENT_IN_AN_AFFILIATED_CO3
INVESTMENT IN AN AFFILIATED COMPANY (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Amounts charged - cost of revenues | $58,564 | $54,294 | $64,145 |
Mail Vision Affiliated Company [Member] | ' | ' | ' |
Amounts charged - cost of revenues | $432 | $1,414 | $2,164 |
INVESTMENT_IN_AN_AFFILIATED_CO4
INVESTMENT IN AN AFFILIATED COMPANY (Details Textual) (Mail Vision Affiliated Company [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Apr. 01, 2013 | Dec. 31, 2012 |
Mail Vision Affiliated Company [Member] | ' | ' | ' |
Equity Method Investment, Ownership Percentage | 29.60% | 29.20% | 25.61% |
Equity Method Investment Summarized Financial Information, Equity, Total | $1,655 | ' | ' |
Equity Method Investment, Summarized Financial Information Convertible And Nonconvertible Loans | 398 | ' | ' |
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | $969 | ' | ' |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, plant and equipment, Cost | $37,877 | $36,451 |
Accumulated depreciation | 34,686 | 32,832 |
Depreciated cost | 3,191 | 3,619 |
Computers and Peripheral Equipment [Member] | ' | ' |
Property, plant and equipment, Cost | 24,871 | 23,463 |
Accumulated depreciation | 23,075 | 21,556 |
Office Furniture and Equipment [Member] | ' | ' |
Property, plant and equipment, Cost | 10,753 | 10,652 |
Accumulated depreciation | 9,650 | 9,473 |
Leasehold Improvements [Member] | ' | ' |
Property, plant and equipment, Cost | 2,253 | 2,336 |
Accumulated depreciation | $1,961 | $1,803 |
PROPERTY_AND_EQUIPMENT_Details1
PROPERTY AND EQUIPMENT (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Depreciation | $2,014 | $1,755 | $1,914 |
INTANGIBLE_ASSETS_AND_DEFERRED2
INTANGIBLE ASSETS AND DEFERRED CHARGES (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Intangible Assets Impaired Cost Gross | 22,873 | 20,285 |
Intangible Assets Accumulated amortization | 18,621 | 17,428 |
Intangible Assets, Net | 4,252 | 2,857 |
Acquired Technology [Member] | ' | ' |
Intangible Assets Impaired Cost Gross | 17,839 | 15,517 |
Intangible Assets Accumulated amortization | 14,255 | 13,399 |
Acquired Technology [Member] | Minimum [Member] | ' | ' |
Intangible Assets Useful life (years) | '5 years | '5 years |
Acquired Technology [Member] | Maximum [Member] | ' | ' |
Intangible Assets Useful life (years) | '10 years | '10 years |
Customer Relationships [Member] | ' | ' |
Intangible Assets Impaired Cost Gross | 4,438 | 4,172 |
Intangible Assets Accumulated amortization | 3,770 | 3,433 |
Customer Relationships [Member] | Minimum [Member] | ' | ' |
Intangible Assets Useful life (years) | '4 years 6 months | '4 years 6 months |
Customer Relationships [Member] | Maximum [Member] | ' | ' |
Intangible Assets Useful life (years) | '9 years | '9 years |
Trade Names [Member] | ' | ' |
Intangible Assets Impaired Cost Gross | 415 | 415 |
Intangible Assets Accumulated amortization | 415 | 415 |
Intangible Assets Useful life (years) | '3 years | '3 years |
Existing Contracts for Maintenance [Member] | ' | ' |
Intangible Assets Impaired Cost Gross | 181 | 181 |
Intangible Assets Accumulated amortization | 181 | 181 |
Intangible Assets Useful life (years) | '3 years | '3 years |
INTANGIBLE_ASSETS_AND_DEFERRED3
INTANGIBLE ASSETS AND DEFERRED CHARGES (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
2014 | $1,355 | ' |
2015 | 1,180 | ' |
2016 | 846 | ' |
2017 | 481 | ' |
2018 | 390 | ' |
Intangible Assets, Net | $4,252 | $2,857 |
INTANGIBLE_ASSETS_AND_DEFERRED4
INTANGIBLE ASSETS AND DEFERRED CHARGES (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Amortization | $1,193 | $1,128 | $1,325 |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial assets related to foreign currency derivative hedging contracts | ' | $1,303 |
Financial Liabilities: | ' | ' |
Foreign currency derivative contracts | ' | -362 |
Contingent consideration related to Mailvision And NSC's former shareholders | -556 | -115 |
Total financial liabilities | -556 | -477 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Financial assets related to foreign currency derivative hedging contracts | ' | 1,303 |
Financial Liabilities: | ' | ' |
Foreign currency derivative contracts | ' | -362 |
Contingent consideration related to Mailvision And NSC's former shareholders | 0 | 0 |
Total financial liabilities | 0 | -362 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Financial assets related to foreign currency derivative hedging contracts | ' | 0 |
Financial Liabilities: | ' | ' |
Foreign currency derivative contracts | ' | 0 |
Contingent consideration related to Mailvision And NSC's former shareholders | -556 | -115 |
Total financial liabilities | ($556) | ($115) |
FAIR_VALUE_MEASUREMENTS_Detail1
FAIR VALUE MEASUREMENTS (Details 1) (Fair Value, Inputs, Level 3 [Member], USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Fair Value, Inputs, Level 3 [Member] | ' |
Balance at January 1, 2013 | ($115) |
Liabilities incurred in relation to the APA with Mailvision | -808 |
Repayment of NSC's contingent consideration | 120 |
Adjustment due to time change value | 247 |
Balance at December 31, 2013 | ($556) |
OTHER_PAYABLES_AND_ACCRUED_EXP2
OTHER PAYABLES AND ACCRUED EXPENSES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Vacation accrual | $2,990 | $2,476 |
Royalties provision | 500 | 420 |
Other employees and payroll accruals | 4,112 | 3,542 |
Government authorities | 667 | 385 |
Accrued expenses | 9,351 | 7,877 |
Others | 338 | 362 |
Other Payables and Accrued Expenses | $17,958 | $15,062 |
SENIOR_CONVERTIBLE_NOTES_Detai
SENIOR CONVERTIBLE NOTES (Details Textual) (USD $) | 1 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Nov. 30, 2004 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Rate Of Principal Amount In Redemption Price | 100.00% | ' | ' | ' |
Rate Of Principal Amount In Repurchase Price | 100.00% | ' | ' | ' |
Senior Notes | $125,000 | ' | ' | ' |
Debt Instrument, Interest Rate, Effective Percentage | 2.00% | 2.00% | 2.00% | 2.00% |
Debt Instrument, Convertible, Conversion Ratio | 53.4474 | ' | ' | ' |
Debt Instrument, Repurchased Face Amount | 1 | ' | ' | ' |
Debt Instrument, Convertible, Conversion Price | $18.71 | ' | ' | ' |
Convertible Notes Payable, Noncurrent | ' | 0 | 353 | ' |
Debt Instrument, Maturity Date | 9-Nov-24 | ' | ' | ' |
Debt Instrument, Maturity Date Range, Start | 9-Nov-14 | ' | ' | ' |
Debt Instrument, Maturity Date Range, End | 9-Nov-19 | ' | ' | ' |
Subsequent Event [Member] | ' | ' | ' | ' |
Debt Instrument, Repurchased Face Amount | ' | $300 | ' | ' |
LONGTERM_BANK_LOANS_Details_Te
LONG-TERM BANK LOANS (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Nov. 30, 2004 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2008 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 |
2008 Loans [Member] | 2011 Loans [Member] | 2011 Loans [Member] | 2011 Loans [Member] | ||||
Loans With Israeli Commercial Banks First Principal [Member] | Loans With Israeli Commercial Banks Second Principal [Member] | ||||||
Debt Instrument, Face Amount | ' | ' | ' | $30,000 | $23,750 | $19,850 | $3,900 |
Compensating Bank Deposit | ' | 7,239 | 13,456 | ' | ' | ' | 3,900 |
Compensating Bank Deposit Included in Short-term Deposit | ' | 2,343 | 4,205 | ' | ' | ' | ' |
Compensating Bank Deposit Included in Long-term Deposit | ' | $4,896 | $9,251 | ' | ' | ' | ' |
Debt Instrument, Interest Rate Terms | ' | ' | ' | ' | ' | 'LIBOR plus 2.1%-4.35% | ' |
Debt Instrument, Interest Rate During Period | ' | ' | ' | ' | ' | 0.50% | ' |
Debt Instrument, Frequency of Periodic Payment | ' | ' | ' | ' | ' | '20 equal quarterly installments | '10 equal semiannual payments |
Debt Instrument, Maturity Date | 9-Nov-24 | ' | ' | ' | 30-Sep-17 | ' | ' |
COMMITMENTS_AND_CONTINGENT_LIA2
COMMITMENTS AND CONTINGENT LIABILITIES (Details) (USD $) | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | ||
2014 | $6,386 | |
2015 | 6,310 | |
2016 | 6,614 | |
2017 | 6,361 | |
2018 and on | 42,346 | |
Total minimum lease payments | $68,017 | [1] |
[1] | Minimum payments have been reduced by minimum sublease rental of $ 1,297 due in the future under non-cancelable subleases. |
COMMITMENTS_AND_CONTINGENT_LIA3
COMMITMENTS AND CONTINGENT LIABILITIES (Details Textual) | 1 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | 31-May-07 | 31-May-07 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 01, 2013 | Jan. 31, 2013 | Jan. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
USD ($) | ILS | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ILS | Vehicles [Member] | Royalty Agreement Terms [Member] | Royalty Agreement Terms [Member] | Product Manufacturing in Israel [Member] | Product Manufacturing in Israel [Member] | Product Manufacturing, Outside of Israel [Member] | Lease Agreements [Member] | |
sqft | sqft | USD ($) | USD ($) | Minimum [Member] | Maximum [Member] | USD ($) | |||||||||
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals | ' | ' | $1,297 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Leases, Rent Expense | ' | ' | 5,282 | 5,745 | 5,327 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approximate Amount of Lien by Lessor | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,500 |
Purchase Obligation | ' | ' | 14,357 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual Obligation | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34,034 | 29,413 | ' | ' | ' | ' |
Accumulated Royalties | ' | ' | 2,408 | 1,810 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Area of Real Estate Property | 145,000 | 145,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital Lease Term | '11 years | '11 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rent and Management Fees | 4,000 | 14,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letter Of Demand | ' | ' | ' | ' | ' | ' | 1,200 | 4,000 | ' | ' | ' | ' | ' | ' | ' |
Claim relating to Termination Of Employment | ' | ' | ' | ' | ' | $600 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease Agreement Expiration Period | ' | ' | '2024 | ' | ' | ' | ' | ' | '2016 | ' | ' | ' | ' | ' | ' |
Rate Of Royalties Payable As Percentage On Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | 5.00% | ' | ' |
Maximum Amount Of Royalties To Be Paid Out Of Research And Development Grants Received | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300.00% | ' |
Increased Rate Of Royalties Payable As Percentage On Sales | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
EQUITY_Details
EQUITY (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Number of shares, Outstanding at beginning of year | 26,500 |
Number of shares, Granted | 63,500 |
Number of shares, Forfeited | -10,000 |
Number of shares, Warrants outstanding at end of year | 80,000 |
Number of shares, Warrants exercisable at end of year | 13,500 |
Weighted average exercise price, Outstanding at beginning of year | $4.12 |
Weighted average exercise price, Granted | $4.36 |
Weighted average exercise price, Forfeited | $3.65 |
Weighted average exercise price, Warrants outstanding at end of year | $4.37 |
Weighted average exercise price, Warrants exercisable at end of year | $4.52 |
EQUITY_Details_1
EQUITY (Details 1) (USD $) | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 |
Amount of options, Outstanding at beginning of period | 3,777,032 |
Amount of options, Granted | 817,531 |
Amount of options, Exercised | -672,645 |
Amount of options, Forfeited | -194,375 |
Amount of options, Expired | -534,000 |
Amount of options, Outstanding at end of period | 3,193,543 |
Amount of options, Vested and expected to vest | 3,065,801 |
Amount of options, exercisable at end of period | 1,446,182 |
Weighted average exercise price, Outstanding at beginning of period | $4.74 |
Weighted average exercise price, Granted | $4.66 |
Weighted average exercise price, Exercised | $2.82 |
Weighted average exercise price, Forfeited | $5.16 |
Weighted average exercise price, Expired | $10.78 |
Weighted average exercise price, Options outstanding at end of period | $4.09 |
Weighted average exercise price, Vested and expected to vest | $4.09 |
Weighted average exercise price, Option exercisable | $4.25 |
Weighted average remaining contractual term, Options outstanding at beginning of period (in years) | '4 years |
Weighted average remaining contractual term, Options outstanding at end of period (in years) | '4 years 6 months |
Weighted average remaining contractual term, Vested and expected to vest (in years) | '4 years 6 months |
Weighted average remaining contractual term, Options exercisable at end of period (in years) | '3 years 1 month 6 days |
Aggregate intrinsic value, Outstanding at beginning of period | $1,477 |
Aggregate intrinsic value, Options outstanding at end of period | 9,845 |
Aggregate intrinsic value, Vested and expected to vest | 9,451 |
Aggregate intrinsic value, Options exercisable at end of period | $4,279 |
EQUITY_Details_2
EQUITY (Details 2) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Options outstanding | 3,193,543 | 3,777,032 |
Weighted average remaining contractual life (in years) | '4 years 6 months | ' |
Weighted average exercise price | $4.09 | $4.74 |
Options exercisable | 1,446,182 | ' |
Weighted average exercise price of exercisable options | $4.25 | ' |
Range of Exercise Price 0.00-1.10 [Member] | ' | ' |
Options outstanding | 52,316 | ' |
Weighted average remaining contractual life (in years) | '3 years 10 months 6 days | ' |
Weighted average exercise price | $0.01 | ' |
Options exercisable | 46,566 | ' |
Weighted average exercise price of exercisable options | $0.01 | ' |
Range of Exercise Price 1.50-2.51 [Member] | ' | ' |
Options outstanding | 363,500 | ' |
Weighted average remaining contractual life (in years) | '4 years 2 months 19 days | ' |
Weighted average exercise price | $2.06 | ' |
Options exercisable | 190,250 | ' |
Weighted average exercise price of exercisable options | $2.11 | ' |
Range of Exercise Price 2.57-4.00 [Member] | ' | ' |
Options outstanding | 1,404,365 | ' |
Weighted average remaining contractual life (in years) | '5 years 1 month 24 days | ' |
Weighted average exercise price | $3.21 | ' |
Options exercisable | 525,732 | ' |
Weighted average exercise price of exercisable options | $3.08 | ' |
Range of Exercise Price 4.08-6.49 [Member] | ' | ' |
Options outstanding | 1,086,331 | ' |
Weighted average remaining contractual life (in years) | '3 years 9 months 29 days | ' |
Weighted average exercise price | $5.23 | ' |
Options exercisable | 571,134 | ' |
Weighted average exercise price of exercisable options | $5.63 | ' |
Range of Exercise Price 6.51-9.24 [Member] | ' | ' |
Options outstanding | 251,031 | ' |
Weighted average remaining contractual life (in years) | '5 years 1 month 20 days | ' |
Weighted average exercise price | $7.02 | ' |
Options exercisable | 76,500 | ' |
Weighted average exercise price of exercisable options | $7.24 | ' |
Range of Exercise Price 9.32-14.76 [Member] | ' | ' |
Options outstanding | 36,000 | ' |
Weighted average remaining contractual life (in years) | '1 month 6 days | ' |
Weighted average exercise price | $9.75 | ' |
Options exercisable | 36,000 | ' |
Weighted average exercise price of exercisable options | $9.75 | ' |
EQUITY_Details_3
EQUITY (Details 3) (Restricted Stock Units (RSUs) [Member], USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Restricted Stock Units (RSUs) [Member] | ' |
Number of shares, Outstanding at beginning of period | 182,161 |
Number of shares, Granted | 175,841 |
Number of shares, Exercised | -85,541 |
Number of shares, RSUs outstanding at end of period | 272,461 |
Weighted average grant date fair value, Outstanding at beginning of period | $3.79 |
Weighted average grant date fair value, Granted | $4.93 |
Weighted average grant date fair value, Exercised | $3.74 |
Weighted average grant date fair value, RSUs outstanding at end of period | $4.54 |
EQUITY_Details_Textual
EQUITY (Details Textual) (USD $) | 12 Months Ended | 12 Months Ended | ||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2011 | Jul. 31, 2007 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Performance Based Options [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Option Plans [Member] | Employee Stock Option Plans [Member] | Employee Stock Option Plans [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | ' | ' | ' | ' | 6,500,000 | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $3 | $1.35 | $2.69 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | ' | ' | ' | ' | ' | ' | $2,052 | $63 | $44 | ' | ' | ' |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | ' | ' | 4,000,000 | ' | ' | ' | 1,720,232 | ' | ' | ' | ' | ' |
Stock Redeemed or Called During Period, Shares | ' | 2,759,594 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchased Weighted Average Price Per Share | ' | $2.44 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | ' | ' | ' | ' | 1,761,317 | ' | ' | ' | ' | ' | ' | ' |
Employees Eligibility Description | ' | ' | ' | ' | 'up to 10% of their wages. | ' | ' | ' | ' | ' | ' | ' |
Price Of Ordinary Shares Purchased | ' | ' | ' | ' | '85% of the lower of the fair market value of the ordinary shares on the commencement date of each offering period or on the semi-annual purchase date. | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | ' | ' | ' | ' | 288,515 | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures, Total | ' | ' | ' | ' | 1,187 | ' | ' | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense, Net of Tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | 371 | 435 | 786 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '1 year 1 month 20 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $3,380 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Gross | 817,531 | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
TAXES_ON_INCOME_Details
TAXES ON INCOME (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Domestic | $475 | ($2,555) | $5,632 |
Foreign | 2,360 | -727 | 2,047 |
Income (loss) before taxes on income | $2,835 | ($3,282) | $7,679 |
TAXES_ON_INCOME_Details_1
TAXES ON INCOME (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current taxes | $542 | $527 | $890 |
Deferred taxes | -1,946 | 14 | -652 |
Income Tax Expense (Benefit) | -1,404 | 541 | 238 |
Domestic | -634 | 283 | 151 |
Foreign | -770 | 258 | 87 |
Income Tax Expense (Benefit) | ($1,404) | $541 | $238 |
TAXES_ON_INCOME_Details_2
TAXES ON INCOME (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Net operating loss carry-forward | $52,976 | $52,035 |
Reserves and allowances | 7,843 | 7,016 |
Net deferred tax assets before valuation allowance | 60,819 | 59,051 |
Less - Valuation allowance | -53,687 | -53,865 |
Deferred tax asset | 7,132 | 5,186 |
Short-term deferred tax asset | 2,277 | 1,621 |
Long-term deferred tax asset | 4,855 | 3,565 |
Domestic Tax Authority [Member] | ' | ' |
Deferred tax assets: | ' | ' |
Deferred tax asset | 4,350 | 3,704 |
Short-term deferred tax asset | 1,397 | 1,157 |
Long-term deferred tax asset | 2,953 | 2,547 |
Foreign Tax Authority [Member] | ' | ' |
Deferred tax assets: | ' | ' |
Deferred tax asset | 2,782 | 1,482 |
Short-term deferred tax asset | 880 | 463 |
Long-term deferred tax asset | $1,902 | $1,019 |
TAXES_ON_INCOME_Details_3
TAXES ON INCOME (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income (loss) before taxes, as reported in the consolidated statements of operations | $2,835 | ($3,282) | $7,679 |
Statutory tax rate | 25.00% | 25.00% | 24.00% |
Theoretical tax expense (benefit) on the above amount at the Israeli statutory tax rate | 709 | -821 | 1,843 |
Income tax at rate other than the Israeli statutory tax rate | 310 | -55 | 275 |
Tax advances, withholding tax and non-deductible expenses, including equity based compensation expenses | 518 | 807 | 1,373 |
Deferred taxes on losses for which a valuation allowance was provided | -2,929 | 755 | -1,083 |
Tax adjustment in respect of different tax rates | -148 | 0 | -1,219 |
Taxes in respect to prior years | 0 | -162 | -54 |
State and Federal taxes | 163 | 48 | 93 |
Foreign exchange | -20 | 89 | -901 |
Impairment of tax advances | 64 | 0 | 0 |
Other | -71 | -120 | -89 |
Income Tax Expense (Benefit) | ($1,404) | $541 | $238 |
TAXES_ON_INCOME_Details_Textua
TAXES ON INCOME (Details Textual) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Year 2014 [Member] | Thereafter [Member] | Scenario, Forecast [Member] | US Subsidiaries [Member] | Israeli Taxation [Member] | Israeli Taxation [Member] | Israeli Taxation [Member] | Israeli Taxation [Member] | Israeli Taxation [Member] | Israeli Taxation [Member] | Israeli Taxation [Member] | Federal [Member] | State [Member] | ||||
Amendment 2010 [Member] | Minimum [Member] | Maximum [Member] | Israeli Subsidiaries [Member] | US Subsidiaries [Member] | US Subsidiaries [Member] | |||||||||||
Percentage Of Corporate Tax Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16.00% | 25.00% | 26.50% | ' | ' | ' |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $8 | $9 | $16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized Tax Benefits Excludes Income Tax Penalties And Interest Accrued | 198 | 198 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Loss Carryforwards | ' | ' | ' | ' | ' | ' | ' | 22,000 | ' | ' | ' | ' | ' | 68,000 | 80,000 | 20,000 |
Deferred Tax Assets, Net, Total | ' | ' | ' | ' | ' | ' | 2,782 | 4,350 | ' | ' | ' | ' | ' | ' | ' | ' |
Income Tax Holiday, Description | ' | ' | ' | ' | ' | ' | ' | 'the Company's income derived from the Approved Enterprise will be entitled to a tax exemption for a period of two years and to an additional period of five to eight years of reduced tax rates of 10% - 25% (based on the percentage of foreign ownership). The duration of tax benefits of reduced tax rates is subject to a limitation of the earlier of 12 years from commencement of production, or 14 years from the approval date. The Company utilized tax benefits from the first program in 1998 and has been no longer eligible for benefits since 2007. | ' | ' | ' | ' | ' | ' | ' | ' |
Tax Exempt Income Earned By Approved Enterprise Of Company Included In Retained Earnings | ' | ' | ' | ' | ' | ' | ' | 540 | ' | ' | ' | ' | ' | ' | ' | ' |
Effective Income Tax Rate Reconciliation, Percent, Total | ' | ' | ' | ' | ' | 26.50% | ' | 25.00% | 25.00% | 24.00% | ' | ' | ' | ' | ' | ' |
Percentage Of Amendment Tax Rate | ' | ' | ' | 16.00% | 16.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Loss Carryforwards Expiration Period | 'expire between 2020 and 2032 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized Tax Benefits, Interest on Income Taxes Expense | $204 | $196 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
BASIC_AND_DILUTED_EARNINGS_LOS2
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE (Details) (USD $) | 12 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Numerator: | ' | ' | ' | |||
Net income (loss) | $4,218 | ($4,177) | $7,164 | |||
Denominator: | ' | ' | ' | |||
Denominator for basic earnings (loss) per share - weighted average number of ordinary shares, net of treasury stock | 38,241,258 | 39,125,129 | 41,437,927 | |||
Effect of dilutive securities: | ' | ' | ' | |||
Employee stock options and ESPP | 855,500 | 0 | [1] | 497,170 | ||
Senior convertible notes | 0 | [1] | 0 | [1] | 0 | [1] |
Denominator for diluted earnings (loss) per share - adjusted weighted average number of shares | 39,096,758 | 39,125,129 | 41,935,097 | |||
[1] | Antidilutive. |
FINANCIAL_INCOME_NET_Details
FINANCIAL INCOME, NET (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Financial expenses: | ' | ' | ' |
Interest | ($617) | ($900) | ($346) |
Amortization of marketable securities premiums and accretion of discounts, net | -349 | -436 | -416 |
Exchange rate | 0 | -4 | -612 |
Others | -229 | -201 | -133 |
Financial expenses, Total | -1,195 | -1,541 | -1,507 |
Financial income - | ' | ' | ' |
Interest and others | 1,103 | 1,994 | 1,930 |
Exchange rate | 188 | 0 | 0 |
Financial income, Total | 1,291 | 1,994 | 1,930 |
Financial Income, Net | $96 | $453 | $423 |
GEOGRAPHIC_INFORMATION_Details
GEOGRAPHIC INFORMATION (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Total Revenues | $137,232 | $127,490 | $155,827 |
Long-Lived Assets | 3,191 | 3,619 | 3,368 |
Israel [Member] | ' | ' | ' |
Total Revenues | 7,887 | 7,773 | 11,887 |
Long-Lived Assets | 2,941 | 3,227 | 2,884 |
Americas [Member] | ' | ' | ' |
Total Revenues | 71,527 | 66,443 | 85,630 |
Long-Lived Assets | 147 | 230 | 314 |
Europe [Member] | ' | ' | ' |
Total Revenues | 37,310 | 35,876 | 36,322 |
Long-Lived Assets | 74 | 119 | 125 |
Far East [Member] | ' | ' | ' |
Total Revenues | 20,508 | 17,398 | 21,988 |
Long-Lived Assets | $29 | $43 | $45 |
GEOGRAPHIC_INFORMATION_Details1
GEOGRAPHIC INFORMATION (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenue from External Customers | $137,232 | $127,490 | $155,827 |
Technology [Member] | ' | ' | ' |
Revenue from External Customers | 22,048 | 24,673 | 35,017 |
Networking [Member] | ' | ' | ' |
Revenue from External Customers | $115,184 | $102,817 | $120,810 |
DERIVATIVE_INSTRUMENTS_Details
DERIVATIVE INSTRUMENTS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Fair value of foreign exchange forward and options collar (cylinder) contracts, Balance sheet Location | 'Other receivable and prepaid expenses | 'Other receivable and prepaid expenses | ' |
Fair value of foreign exchange forward and options collar (cylinder) contracts | $0 | $1,303 | ' |
Gains (losses) recognized in OCI (effective portion), Balance sheet Location | 'Other comprehensive income | 'Other comprehensive income | ' |
Gains (losses) recognized in OCI (effective portion) | ($1,303) | $1,543 | ($1,062) |
DERIVATIVE_INSTRUMENTS_Details1
DERIVATIVE INSTRUMENTS (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Gain (loss) on derivatives recognized in OCI, Description | 'Operating expenses | 'Operating expenses | ' |
Gain (loss) on derivatives recognized in OCI | $1,292 | $1,211 | ($205) |
Loss (gain) recognized in income on derivatives (effective portion) | ($2,595) | $332 | ($857) |
DERIVATIVE_INSTRUMENTS_Details2
DERIVATIVE INSTRUMENTS (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivatives Contracts Outstanding | $0 | $33,600 | ' |
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | -191 | 452 | 187 |
Net Deferred Gain (Loss) Associated with Cash Flow Hedges Recorded in Other Comprehensive Income | $0 | $1,303 | ' |
SUBSEQUENT_EVENT_Details_Textu
SUBSEQUENT EVENT (Details Textual) (Subsequent Event [Member], IPO [Member], USD $) | 2 Months Ended |
Mar. 10, 2014 | |
Stock Issued During Period, Shares, New Issues | 4,025,000 |
Purchase Price Per Share | $8 |
Net Proceeds from Issuance Initial Public Offering | $29,700 |
Underwriters [Member] | ' |
Stock Issued During Period, Shares, New Issues | 525,000 |