Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2015shares | |
Document Information [Line Items] | |
Entity Registrant Name | AUDIOCODES LTD |
Entity Central Index Key | 1,086,434 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Accelerated Filer |
Trading Symbol | AUDC |
Entity Common Stock, Shares Outstanding | 37,841,603 |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2015 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2,015 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 18,908 | $ 14,797 |
Short-term and restricted bank deposits | 5,661 | 7,630 |
Short-term marketable securities and accrued interest | 2,480 | 543 |
Trade receivables (net of allowance for doubtful accounts of $2,437 and $2,732 at December 31, 2014 and 2015, respectively) | 25,622 | 31,056 |
Other receivables and prepaid expenses | 4,405 | 6,244 |
Inventories | 16,778 | 14,736 |
Total current assets | 73,854 | 75,006 |
LONG-TERM ASSETS: | ||
Long-term marketable securities | 50,294 | 58,684 |
Long-term and restricted bank deposits and accrued interest | 3,034 | 4,066 |
Deferred income tax assets | 2,216 | 4,192 |
Severance pay funds | 16,086 | 17,835 |
Total long-term assets | 71,630 | 84,777 |
PROPERTY AND EQUIPMENT, NET | 4,090 | 3,856 |
INTANGIBLE ASSETS, NET | 4,024 | 2,996 |
GOODWILL | 36,222 | 33,749 |
Total assets | 189,820 | 200,384 |
CURRENT LIABILITIES: | ||
Short-term bank loans and current maturities of long-term bank loans | 5,338 | 4,686 |
Trade payables | 7,304 | 10,111 |
Other payables and accrued expenses | 17,951 | 15,758 |
Deferred revenues | 12,885 | 10,233 |
Total current liabilities | 43,478 | 40,788 |
LONG-TERM LIABILITIES: | ||
Accrued severance pay | 16,377 | 17,908 |
Long-term bank loans, net of current maturities | 6,032 | 5,105 |
Deferred revenues and other liabilities | 6,480 | 2,862 |
Total long-term liabilities | $ 28,889 | $ 25,875 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
EQUITY: | ||
Share capital - Ordinary shares of NIS 0.01 par value - Authorized: 100,000,000 shares at December 31, 2014 and 2015; Issued: 54,785,756 and 55,009,730 shares at December 31, 2014 and 2015, respectively; Outstanding: 42,380,158 and 37,841,603 shares at December 31, 2014 and 2015, respectively | $ 112 | $ 125 |
Additional paid-in capital | 238,525 | 235,760 |
Treasury stock at cost- 12,405,598 and 17,168,127 shares at December 31, 2014 and 2015, respectively | (60,542) | (41,032) |
Accumulated other comprehensive loss | (137) | (261) |
Accumulated deficit | (60,505) | (60,871) |
Total equity | 117,453 | 133,721 |
Total liabilities and equity | $ 189,820 | $ 200,384 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands | Dec. 31, 2015USD ($)shares | Dec. 31, 2015₪ / shares | Dec. 31, 2014USD ($)shares | Dec. 31, 2014₪ / shares |
Allowance for doubtful accounts receivable (in dollars) | $ | $ 2,732 | $ 2,437 | ||
Ordinary shares, par value (in NIS per share) | ₪ / shares | ₪ 0.01 | ₪ 0.01 | ||
Ordinary shares, shares authorized | 100,000,000 | 100,000,000 | ||
Ordinary shares, shares issued | 55,009,730 | 54,785,756 | ||
Ordinary shares, shares outstanding | 37,841,603 | 42,380,158 | ||
Treasury stock, shares | 17,168,127 | 12,405,598 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||
Products | $ 101,990 | $ 118,561 | $ 111,750 |
Services | 37,769 | 33,018 | 25,482 |
Total revenues | 139,759 | 151,579 | 137,232 |
Cost of revenues: | |||
Products | 47,227 | 54,349 | 51,996 |
Services | 9,744 | 8,243 | 6,568 |
Total cost of revenues | 56,971 | 62,592 | 58,564 |
Gross profit | 82,788 | 88,987 | 78,668 |
Operating expenses: | |||
Research and development, net | 27,996 | 32,275 | 28,194 |
Selling and marketing | 43,360 | 45,534 | 39,279 |
General and administrative | 8,726 | 7,677 | 8,456 |
Total operating expenses | 80,082 | 85,486 | 75,929 |
Operating income | 2,706 | 3,501 | 2,739 |
Financial income (expenses), net | 442 | (196) | 96 |
Income before taxes on income | 3,148 | 3,305 | 2,835 |
Income tax benefit (expense), net | (2,782) | (3,391) | 1,404 |
Equity in losses of an affiliated company | 0 | 0 | (21) |
Net income (loss) | $ 366 | $ (86) | $ 4,218 |
Earnings (loss) per share - basic (in dollars per share) | $ 0.01 | $ 0 | $ 0.11 |
Earnings (loss) per share - diluted (in dollars per share) | $ 0.01 | $ 0 | $ 0.11 |
Weighted average number of shares used in computations of earnings (loss) per share: | |||
Basic (in shares) | 40,178,292 | 42,285,919 | 38,241,258 |
Diluted (in shares) | 40,564,945 | 42,285,919 | 39,096,758 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income (loss) | $ 366 | $ (86) | $ 4,218 |
Change in unrealized loss on marketable securities: | |||
Loss on marketable securities recognized in OCI | (35) | (388) | 0 |
Loss on marketable securities recognized in income | 13 | 0 | 0 |
Other comprehensive loss, related to unrealized loss on marketable securities | (22) | (388) | 0 |
Change in unrealized gains (losses) on cash flow hedges: | |||
Gain (loss) on derivatives recognized in OCI | 374 | (367) | 1,292 |
Loss (gain) on derivatives (effective portion) recognized in income | (228) | 494 | (2,595) |
Other comprehensive income (loss), related to unrealized gains (loss) on cash flow hedges | 146 | 127 | (1,303) |
Other comprehensive income (loss) | 124 | (261) | (1,303) |
Total comprehensive income (loss) | $ 490 | $ (347) | $ 2,915 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Share capital [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Defecit [Member] | |
Balance at Dec. 31, 2012 | $ 98,297 | $ 112 | $ 197,653 | $ (35,768) | $ 1,303 | $ (65,003) | |
Issuance of shares upon exercise of options and warrants | 1,896 | 2 | 1,894 | 0 | 0 | 0 | |
Stock-based compensation related to options and RSUs granted to employees and non-employees | 1,701 | 0 | 1,701 | 0 | 0 | 0 | |
Other comprehensive income (loss) | (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) | |
Purchase of treasury stock | (5,267) | (3) | 0 | (5,264) | 0 | 0 | |
Issuance of ordinary shares | 29,744 | 12 | 29,732 | 0 | 0 | 0 | |
Issuance of shares upon exercise of options and warrants | 2,236 | 2 | 2,234 | 0 | 0 | 0 | |
Stock-based compensation related to options and RSUs granted to employees and non-employees | 2,546 | 0 | 2,546 | 0 | 0 | 0 | |
Other comprehensive income (loss) | (261) | 0 | 0 | 0 | (261) | 0 | |
Net income (loss) | (86) | 0 | 0 | 0 | 0 | (86) | |
Balance at Dec. 31, 2014 | 133,721 | 125 | 235,760 | (41,032) | (261) | (60,871) | |
Purchase of treasury stock | (19,523) | $ (13) | 0 | (19,510) | 0 | 0 | |
Issuance of shares upon exercise of options and warrants | 392 | [1] | 392 | 0 | 0 | 0 | |
Stock-based compensation related to options and RSUs granted to employees and non-employees | 2,373 | $ 0 | 2,373 | 0 | 0 | 0 | |
Other comprehensive income (loss) | 124 | 0 | 0 | 0 | 124 | 0 | |
Net income (loss) | 366 | 0 | 0 | 0 | 0 | 366 | |
Balance at Dec. 31, 2015 | $ 117,453 | $ 112 | $ 238,525 | $ (60,542) | $ (137) | $ (60,505) | |
[1] | Representing amount lower the $1. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 366 | $ (86) | $ 4,218 |
Adjustments required to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 2,963 | 3,230 | 3,207 |
Amortization of marketable securities premiums and accretion of discounts, net | 1,094 | 820 | 349 |
Realized loss on sale of marketable securities, net | 13 | 0 | 0 |
Equity in losses of an affiliated company, net of interest on loans to an affiliated company | 0 | 0 | 21 |
Stock-based compensation related to options and RSUs granted to employees and non-employees | 2,373 | 2,546 | 1,701 |
Decrease in accrued interest on loans, marketable securities, convertible notes, and bank deposits | 56 | 152 | 73 |
Decrease (increase) in deferred income tax assets | 1,976 | 2,940 | (1,946) |
Decrease (increase) in trade receivables, net | 5,575 | (4,625) | (2,254) |
Decrease (increase) in other receivables and prepaid expenses | 1,777 | (2,249) | 110 |
Decrease (increase) in inventories | (2,013) | (925) | 2,986 |
Increase (decrease) in trade payables | (2,987) | 2,896 | 403 |
Increase (decrease) in other payables and accrued expenses and other liabilities | 2,394 | (2,114) | 2,577 |
Increase in deferred revenues | 3,758 | 3,595 | 3,138 |
Increase (decrease) in accrued severance pay, net | 218 | (223) | (495) |
Net cash provided by operating activities | 17,563 | 5,957 | 14,088 |
Cash flows from investing activities: | |||
Net loans provided to an affiliated company | 0 | 0 | (1,211) |
Purchase of marketable securities | 0 | (60,286) | 0 |
Purchase of property and equipment | (1,976) | (2,539) | (1,586) |
Proceeds from sale of marketable securities | 2,557 | 0 | 0 |
Short-term and restricted bank deposits, net | 1,969 | 1,471 | 1,229 |
Proceeds from redemption of marketable securities upon maturity | 2,711 | 15,390 | 7,600 |
Proceeds from redemption of long-term bank deposits | 1,032 | 2,685 | 2,623 |
Purchase of intangible asset | 0 | (100) | 0 |
Net cash paid for acquisition of subsidiary | (1,960) | ||
Net cash provided by (used in) investing activities | 4,333 | (43,379) | 8,655 |
Cash flows from financing activities: | |||
Purchase of treasury stock | (19,523) | (5,267) | 0 |
Repayment of senior convertible notes | 0 | (338) | 0 |
Repayment of long-term bank loans | (4,685) | (4,686) | (8,436) |
Proceeds from bank loans | 6,264 | 0 | 0 |
Contingent payment for acquisition of NSC non-controlling interest | 0 | 0 | (515) |
Payment related to the acquisition of Mailvision | (233) | (233) | 0 |
Proceeds from issuance of shares in a public offering, net | 0 | 29,744 | 0 |
Proceeds from issuance of shares upon exercise of options and warrants | 392 | 2,236 | 1,752 |
Net cash provided by (used in) financing activities | (17,785) | 21,456 | (7,199) |
Increase (decrease) in cash and cash equivalents | 4,111 | (15,966) | 15,544 |
Cash and cash equivalents at the beginning of the year | 14,797 | 30,763 | 15,219 |
Cash and cash equivalents at the end of the year | 18,908 | 14,797 | 30,763 |
Supplemental disclosure of cash flow activities: | |||
Cash paid during the year for income taxes | 301 | 658 | 429 |
Cash paid during the year for interest | $ 329 | $ 415 | $ 583 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2015 | |
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, Australia and Israel. b. Asset Purchase Agreement with Mailvision Ltd ("Mailvision"): In May 2013, the Company acquired Mailvision, in which the Company held 29.2 Pursuant to the acquisition agreement, the Company acquired certain assets and assumed certain liabilities of Mailvision. The acquisition was accounted for using the purchase method. The $ 3,434 221 233 432 closing of the acquisition 233 1,472 376 see Note 6 933 95 The MV Earn-Out liability is marked to market at fair value at each reporting date with subsequent changes in the value of the liability recorded in financial income (expenses), net in the statement of operations, while changes due to changes in estimates are recorded within operating income or expenses. As of December 31, 2014 and 2015, the MV Earn-Out estimated fair value amounted to $ 443 228 c. Acquisition of Active Communications Europe. ("ACS"): On December 31, 2015 the acquired 100 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 had a major customer in the years ended December 31, 2013, 2014 and 2015, which accounted for 17.8 14.9 15.0 10.5 12.6 10 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
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 of America ("U.S. GAAP"). a. Use of estimates: The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. Management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. b. Financial statements in U.S. dollars ("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. 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 dollars in accordance with 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 1.51 1.30 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 Company's loans ( see Note 12 Note 13a 7,097 5,356 Marketable securities: The Group 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. As of December 31, 2014 and 2015, the Group classified all of its marketable securities as available-for-sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses, net of tax, reported in “accumulated other comprehensive income (loss)” in shareholders’ equity. Realized gains and losses on sale of investments are included in “financial income (expenses), net” and are derived using the specific identification method for determining the cost of securities. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization together with interest on securities is included in “financial income (expenses), net”. The Group recognizes an impairment charge when a decline in the fair value of its investments in debt securities below the cost basis of such securities is judged to be other than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Group’s intent to sell, including whether it is more-likely-than-not that the Group will be required to sell the investment before recovery of cost basis. For securities that are deemed other-than-temporarily impaired, the amount of impairment is recognized in the statements of operations and is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income (loss). For the years ended December 31, 2013, 2014 and 2015, 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 payable 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 1.00 ( see also Note 12 4,005 3,080 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" ("ASC 323"). 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, 2013, 2014 and 2015, no impairment losses had been identified. Property and equipment: Property and equipment are stated at cost, net of accumulated depreciation. % 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). During the years ended December 31, 2013, 2014 and 2015, no impairment losses had been identified for property and equipment. k. Intangible assets: Intangible assets are comprised of acquired technology, customer relations and licenses. 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 four and a half 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, 2013, 2014 and 2015, 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. For each of the three years in the period ended December 31, 2015, 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 ASC 605, "Revenue Recognition", ("ASC 605"), 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 reasonably assured. 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") 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 ASC 605. The provision was deducted from revenues and amounted to $ 1,338 1,737 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. Deferred revenues include amounts invoiced to customers for which revenue has not yet been recognized. n. Warranty costs: The Group usually 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, 2014 and 2015, the provision for warranty amounted to $ 458 407 o. Research and development costs: ASC 985-20, "Costs of Software to Be Sold, Leased, or Marketed", requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. Based on the Company's product development process, technological feasibility is established upon the completion of a working model. The Company does not incur material costs between the completion of a working model and the point at which the products are ready for general release. Therefore, research and development costs are charged to the consolidated statement of comprehensive loss as incurred. Participation grants from the Office of the Chief Scientist of the Israeli Ministry of Economy and Industry, ("OCS") for research and development activity are recognized at the time the Company is entitled to such grants on the basis of the costs incurred and included as a deduction of research and development costs. Research and development grants recognized during the years ended December 31, 2013, 2014 and 2015 were $ 2,799 3,871 5,448 p. Income taxes: The Group accounts for income taxes in accordance with ASC 740, "Income Taxes", ("ASC 740"). 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 tax 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. Accumulated other comprehensive income (loss) ("AOCI"): The Company accounts for comprehensive income in accordance with ASC topic 220, "Comprehensive Income". This statement establishes standards for the reporting and display of comprehensive income (loss) and its components in a full set of general purpose financial statements. Comprehensive income (loss) generally represents all changes in shareholders' equity during the period except those resulting from investments by, or distributions to, shareholders. AOCI Unrealized Unrealized Total Balance as of January 1, 2015 $ (388) $ 127 $ (261) Other comprehensive income (loss) before reclassifications (35) 374 339 Amounts reclassified from AOCI 13 (228) (215) Other comprehensive income (loss) (22) 146 124 Balance as of December 31, 2015 $ (410) $ 273 $ (137) The effects on net income of amounts reclassified from AOCI for the year ended December 31, 2015 derive from realized gains on cash flow hedges recorded in operating expenses and from realized losses on marketable securities recorded in financial expenses (income). 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, marketable securities and foreign currency derivative contracts. The majority of the Group's cash and cash equivalents, bank deposits and foreign currency derivative contracts 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 dollar linked corporate bonds. Marketable securities consist of highly liquid debt instruments with high credit standing. The Company’s investment policy, approved by the Board of Directors, limits the amount the Group may invest in any one type of investment or issuer, thereby reducing credit risk concentrations. 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. 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. 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 outstanding options, RSUs and warrants that have been excluded from the calculation of diluted earnings (loss) per share was 1,545,867 954,823 2,250,433 t. Accounting for stock-based compensation: The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation-Stock Compensation" ("ASC 718"). ASC 718 requires companies to estimate the fair value of stock-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" ("ASC 505-50") 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, 2013, 2014 and 2015, was $ 3.00 2.97 2.04 Year Ended December 31, 2013 2014 2015 Dividend yield 0% 0% 0% Expected volatility 58.9%-61.9% 54.8%-59.4% 53.32%-55.86% Risk-free interest 0.63%-1.78% 1.48%-1.86% 1.14%-1.74% Expected life 4.72-5.67 years 4.74-5.43 years 4.75-5.43 years Forfeiture rate 4.0% 4.0% 4.0% 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. Year Ended December 31, 2013 2014 2015 Cost of revenues $ 62 $ 89 $ 101 Research and development expenses, net 408 585 429 Selling and marketing expenses 625 1,105 1,061 General and administrative expenses 606 767 782 Total stock-based compensation expenses $ 1,701 $ 2,546 $ 2,373 u. 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 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 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, 1963 or labor agreements. Since March 2011, the Group's agreements with new Israeli employees 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 Group is legally released from the obligations to employees once the deposit amounts have been paid, and therefore the severance pay liability is not reflected in the balance sheet. Severance pay expenses for the years ended December 31, 2013, 2014 and 2015, amounted to $ 1,878 1,961 2,153 w. 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 $ 18 6 6 244 284 287 Advertising expenses: Advertising expenses are charged to the statements of operations as incurred. Advertising expenses for the years ended December 31, 2013, 2014 and 2015 amounted to $ 342 562 604 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 and accrued expenses approximate their fair value due to the short-term maturity of such instruments. The fair value of long-term bank 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. The fair value of marketable securities is estimated by obtaining the fair value of the marketable securities from the bank, which is based on current quotes and market value provided by external service providers. 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" ("ASC 820") 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 and hedging: The Group accounts for derivatives and hedging based on ASC 815, "Derivatives and Hedging" ("ASC 815"). 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 (expenses), net" at each reporting period. 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. aa. Impact of recently issued accounting pronouncements: In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09 (ASU 2014-09) "Revenue from Contracts with Customers." ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. As currently issued and amended, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, though early adoption is permitted for annual reporting periods beginning after December 15, 2016. The Company is currently in the process of evaluating the impact of the adoption of ASU 2014-09 on its consolidated financial statements, implementing accounting system changes related to the adoption, and considering additional disclosure requirements. The Company is still evaluating the effect that the updated standard will have its consolidated financial statements and related disclosures. In February 2015, the FASB issued Accounting Standards Update No. 2015-02 (ASU 2015-02) "Consolidation (Topic 810): Amendments to the Consolidation Analysis." ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The Company will adopt this standard in the first quarter of 2016 on a retrospective basis. The Company does not expect the adoption of this standard to have a material impact on its consolidated statement of operations o |
ACQUISITION OF ACTIVE COMMUNICA
ACQUISITION OF ACTIVE COMMUNICATIONS EUROPE. (''ACS'') | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | NOTE 3:- ACQUISITION OF ACTIVE COMMUNICATIONS EUROPE. (“ACS”) On December 31, 2015 (the "Closing Date"), the Company entered into a share purchase agreement, according to which the Company acquired 100% of the outstanding shares of ACS. Following the transaction, ACS became a wholly owned subsidiary of the Company. As part of the share purchase agreement, the Company agreed to pay an earn-out amount based on the sales of the Company’s products related to ACS technology (the “ACS Products”). The earn-out amount shall be calculated based on: (a) 20% of ACS Products net revenues (the "ACS Revenues") after the first $2,000 ACS Revenues up to an earn-out payment of $ 2,000, plus (b) an additional amount of 10% of ACS Revenues after the first $ 20,000 ACS Revenues (the "ACS Earn-Out"). The acquisition was accounted for using the purchase method. The $ 4,109 2,000 2,109 In addition, the Company shall pay $ 500 500 The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the acquisition date: Current assets $ 305 Property and equipment 20 Technology 1,917 Customer relationships 312 Total identifiable assets acquired 2,554 Current liabilities (361) Deferred tax liability (557) Total identifiable liabilities assumed (918) Net identifiable assets acquired 1,636 Goodwill 2,473 Net assets acquired $ 4,109 The Company allocated the acquired assets and liabilities assumed based on a preliminary purchase price allocation. The fair values of the acquired 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 $ 2,473 7 5 7 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 ACS products |
MARKETABLE SECURITIES AND ACCRU
MARKETABLE SECURITIES AND ACCRUED INTEREST | 12 Months Ended |
Dec. 31, 2015 | |
Marketable Securities and Accrued Interest [Abstract] | |
Marketable Securities and Accrued Interest Disclosure [Text Block] | NOTE 4:- MARKETABLE SECURITIES AND ACCRUED INTEREST December 31, 2014 Amortized Unrealized Unrealized Fair cost gains losses Value Corporate bonds: Maturing between one to five years $ 59,072 $ 12 $ (400) $ 58,684 Accrued interest 543 - - 543 $ 59,615 $ 12 $ (400) $ 59,227 December 31, 2015 Amortized Unrealized Unrealized Fair cost gains losses Value Corporate bonds: Maturing within one year $ 1,997 $ - $ (4) $ 1,993 Maturing between one to five years 50,700 7 (413) 50,294 Accrued interest 487 - - 487 $ 53,184 $ 7 $ (417) $ 52,774 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 Group's investment. As of December 31, 2014 and 2015, the Group did not have any investment in marketable securities that were in an unrealized loss position for a period of twelve months or greater. Since the Group had the ability and intent to hold these investments until an anticipated recovery of fair value, which may be until maturity, the Group did not consider these investments to be other-than-temporarily impaired as of December 31, 2014 and 2015. Unrealized gains (losses) are valued using alternative pricing sources and models utilizing observable market inputs. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | NOTE 5:- INVENTORIES December 31, 2014 2015 Raw materials $ 6,794 $ 6,687 Finished products 7,942 $ 10,091 $ 14,736 $ 16,778 In the years ended December 31, 2013, 2014 and 2015, the Group wrote-off inventories in a total amount of $ 1,746 82 724 |
INVESTMENT IN AN AFFILIATED COM
INVESTMENT IN AN AFFILIATED COMPANY | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | NOTE 6:- INVESTMENT IN AN AFFILIATED COMPANY As of December 31, 2014 and 2015, the Company owned 29.6 Note 1b Year Ended December 31, 2013 2014 2015 Amounts charged - cost of revenues $ 432 $ - - |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 7:- PROPERTY AND EQUIPMENT, NET December 31, 2014 2015 Cost: Computers and peripheral equipment $ 26,647 $ 27,495 Office furniture and equipment 10,861 11,593 Leasehold improvements 2,908 3,354 40,416 42,442 Accumulated depreciation: Computers and peripheral equipment 24,607 25,833 Office furniture and equipment 9,873 10,264 Leasehold improvements 2,080 2,255 36,560 38,352 Depreciated cost $ 3,856 $ 4,090 Depreciation expenses amounted to $ 2,014 1,874 1,761 |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | INTANGIBLE ASSETS, NET Useful life December 31, (years) 2014 2015 a. Impaired cost: Acquired technology and license 5 - 10 $ 17,939 $ 19,857 Customer relationship 4.5 - 9 4,438 4,750 22,377 24,607 Accumulated amortization: Acquired technology and license 15,247 16,240 Customer relationship 4,134 4,343 19,381 20,583 Amortized cost $ 2,996 $ 4,024 b. Amortization expenses related to intangible assets amounted to $ 1,193 1,356 1,202 Year ending December 31, 2016 $ 1,200 2017 835 2018 749 2019 354 Thereafter 886 $ 4,024 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2015 | |
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, marketable securities, contingent consideration to Mailvision, and Earn-Out liability related to the acquisition of ACS, at fair value. Investments in foreign currency derivative instruments and marketable securities 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 of the earn-out provided to Mailvision and the Earn-Out liability related to the acquisition of ACS are classified within Level 3 value hierarchy because these liabilities are based on present value calculations and an external valuation model whose inputs include market interest rates, estimated operational capitalization rates and volatilities. Unobservable inputs used in these models are significant. December 31, 2014 Fair value measurements using input type Level 2 Level 3 Total Financial assets related to foreign currency derivative hedging contracts $ 220 $ - $ 220 Marketable securities 59,227 - 59,227 Contingent consideration related to Mailvision - (443) (443) Total Financial asset (liability) $ 59,447 $ (443) $ 59,004 December 31, 2015 Fair value measurements using input type Level 2 Level 3 Total Financial assets related to foreign currency derivative hedging contracts $ 101 $ - $ 101 Marketable securities 52,774 - 52,774 Contingent consideration related to Mailvision - (228) (228) Earn-Out liability related to the acquisition of ACS - (2,109) (2,109) Total Financial asset (liability) $ 52,875 $ (2,337) $ 50,538 Balance at January 1, 2015 $ (443) Payment of MV Earn Out liability 233 Adjustment due to time change value (18) Liabilities incurred in relation to the acquisition of ACS (2,109) Balance at December 31, 2015 $ (2,337) |
OTHER PAYABLES AND ACCRUED EXPE
OTHER PAYABLES AND ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | NOTE 10:- OTHER PAYABLES AND ACCRUED EXPENSES December 31, 2014 2015 Payroll and other employee related accruals $ 3,995 $ 3,474 Vacation accrual 2,669 2,931 Royalties provision 929 966 Government authorities 468 288 Accrued expenses 7,146 9,864 Others 551 428 $ 15,758 $ 17,951 |
SENIOR CONVERTIBLE NOTES
SENIOR CONVERTIBLE NOTES | 12 Months Ended |
Dec. 31, 2015 | |
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 was obligated to pay interest on the Notes semi-annually on May 9 and November 9 of each year. The Notes were 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 could elect to pay the holders cash or a combination of cash and ordinary shares. The Notes were 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. Notes in an aggregate of $124,650 principal amount were repurchased by the Company in the years 2008, 2009 and 2010. The Notes were 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 could choose to settle in cash upon conversion. As of December 31, 2013, there was $353 in principal amount plus accrued and unpaid interest of the Notes outstanding. The effective interest rate for the year ended December 31, 2013 amounted to 2% per year. During the year ended December 31, 2014, the Company repurchased the full remaining principal amount of the Notes plus accrued and unpaid interest of $353. As of December 31, 2014 and 2015, there was no principal amount of Notes outstanding. |
LONG-TERM BANK LOANS
LONG-TERM BANK LOANS | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | LONG-TERM BANK LOANS In September and December 2011, the Company entered into loan agreements with Israeli commercial banks that provided loans in the total principal amount of $ 23,750 0.5 19,850 3,900 In December 2015, the Company entered into loan agreements with Israeli commercial bank that provided loans in the total principal amount of $ 3,000 3,000 As of December 31, 2014 and 2015, the banks have a lien on the Company's assets that secures the 2011 Loans and 2015 Loans. As of December 31, 2014 and 2015, the Company is required to maintain a total of $ 4,896 5,553 As of December 31, 2014 and 2015, the compensating balances are included in $ 2,343 2,643 2,553 2,910 As of December 31, 2014 and 2015, the Company was in compliance with all of its Covenants. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2015 | |
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, Asia and the Americas 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 2018. Year ending December 31, 2016 $ 6,076 2017 6,637 2018 6,302 2019 5,308 2020 and thereafter 21,679 Total minimum lease payments *) $ 46,002 *) Minimum payments have been reduced by minimum sublease rental of $ 835 In connection with the Company's facilities lease agreement in Israel, the lessor has a lien of approximately $ 1,500 Lease expenses for the years ended December 31, 2013, 2014 and 2015, were approximately $ 5,282 6,236 5,930 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 2016. As of December 31, 2015, non-cancelable purchase obligations were approximately $ 12,687 c. Royalty commitment to the Office of the Chief Scientist of the Israeli Ministry of Economy and Industry ("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 1.3 5 100 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 or any of its Israeli subsidiaries wish to transfer their manufacturing activities abroad, in addition to their statement in the application for support, they 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 1 As of December 31, 2014 and 2015, the Company and its Israeli subsidiaries have a contingent obligation to pay royalties in the amount of approximately $ 39,559 45,563 As of December 31, 2014 and 2015, the Company and its Israeli subsidiaries have paid or accrued royalties to the OCS in the amount of $ 3,423 4,723 On March 27, 2016, the Company received a notification from the OCS that according to an audit conducted on their behalf the Company is said to owe the OCS an amount of $ 999 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 2014, one of the Company’s former senior executives filed a claim with the Israeli labor court claiming an amount of NIS 2,500 (approximately $625) relating to the termination of his employment. The Company has denied his allegations and believed that it had valid defenses to this claim. A preliminary hearing was held in January 2015 during which the parties mutually agreed to refer the dispute to a mediator. During the year ended December 31, 2015, the parties settled this claim. 2. In November 2013, a former employee filed a claim against the Company’s subsidiary in Brazil alleging that he is entitled to approximately $ 600 3. In January 2015, the Manufacturers Association of Israel (“MAI”) filed a claim against the Company with the Israeli Labor Court, for unpaid handling charges, allegedly due for the years 2008 - 2013. A hearing took place in February 2016 and another hearing is scheduled for April 2016. The Company’s view is that handing charges to MAI are not due and therefore the Company did not record a provision. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 14:- EQUITY a. Treasury stock: During the year ended December 31, 2014, the Company's Board of Directors approved a program to repurchase up to $ 3,000 15,000 15,000 17,168,127 60,587 4,762,529 19,523 15,000 b. Issuance of ordinary shares: On March 10, 2014, the Company sold in a public offering 4,025,000 525,000 8.00 29,744 2,456 c. Employee and non-employee Stock Option Plan: In 2008, the 2,192,345 Stock options granted under the Plan are generally 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, 2015: Weighted average Weighted remaining average contractual Aggregate Amount exercise term (in intrinsic of options price years) value Options outstanding at beginning of year 3,257,859 $ 4.23 4.7 $ 2,440 Changes during the year: Granted 648,275 $ 4.20 Exercised (128,375) $ 3.07 Forfeited (93,625) $ 4.42 Expired (14,000) $ 4.17 Options outstanding at end of year 3,670,134 $ 4.25 4.3 $ 1,370 Vested and expected to vest 3,523,329 $ 4.25 4.3 $ 1,315 Options exercisable at end of year 1,901,674 $ 4.06 3.2 $ 1,004 The weighted-average grant-date fair value of options granted during the years ended December 31, 2013, 2014 and 2015 was $ 3.00 2.97 2.04 Total intrinsic value of options exercised for the years ended December 31, 2013, 2014 and 2015 was $ 2,052 1,870 219 During the year ended December 31, 2013, the Company granted 100,000 options to one of its officers . 100,000 Weighted Number of average grant shares date fair value RSUs outstanding at beginning of year 221,004 $ 4.79 Changes during the year: Granted 174,518 $ 3.76 Exercised (93,099) $ 4.61 Forfeited (3,500) $ 4.71 RSUs outstanding at end of year 298,923 $ 4.25 During the years ended December 31, 2013, 2014 and 2015, the stock based compensation expenses related to the RSUs granted amounted to $ 371 517 483 Weighted Number of average shares exercise price Warrants outstanding at beginning of year 165,000 $ 4.65 Changes during the year: Forfeited (100,000) $ 4.80 Warrants outstanding at end of year 65,000 $ 4.43 Warrants exercisable at end of year 31,250 $ 4.40 The Group recorded immaterial compensation expenses with respect to the grants of these warrants in accordance with ASC 505-50. As of December 31, 2015, there was $ 2,931 1.05 Options Weighted Options Weighted outstanding average Weighted exercisable average Range of as of remaining average as of exercise price of exercise December 31, contractual exercise December 31, exercisable price 2015 life price 2015 options (Years) $ 0.00-1.10 7,000 2.95 $ 0.00 5,875 $ 0.00 $ 1.50-2.51 220,675 2.56 $ 2.06 166,550 $ 2.08 $ 2.57-4.00 1,438,085 3.86 $ 3.25 948,159 $ 3.18 $ 4.03-6.49 1,784,843 4.85 $ 4.94 634,575 $ 5.11 $ 6.51-9.24 284,531 4.07 $ 6.88 177,765 $ 7.04 3,735,134 4.3 $ 4.26 1,932,924 $ 4.06 |
TAXES ON INCOME
TAXES ON INCOME | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015, retained earnings included approximately $ 540 10 25 up to a maximum amount of $ 180 The entitlement to the above benefits is conditional upon the Company fulfilling the conditions stipulated by the Investment Law, regulations published thereunder and the certificate 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, 2015, 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 2005 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 2005 Amendment. As a result of the 2005 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, 2015, there was no taxable income attributable to the Beneficiary Enterprise. In December 2010, another 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 income subject to this amendment (the "Preferred Income"). The Company may elect to adopt the 2010 Amendment. Once an election is made, the Company's income will be subject to the amended tax rate which ranges from 9 16 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, 2015, the Company has cumulative losses for tax purposes in the amount of approximately $ 13,600 1,141 As of December 31, 2015, the Company's Israeli subsidiaries have estimated total available carry-forward tax losses of approximately $ 66,200 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, is entitled to 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: The Israeli corporate tax rate was 26.5 25 On January 4, 2016, the Israeli Parliament (the Knesset) approved an amendment to the Israeli Income Tax Ordinance, lowering the Israeli corporate tax rate from 26.5 25 The effective tax rate payable by a company which is taxed under the Investment Law may be considerably lower (see also Note 15 Year Ended December 31, 2013 2014 2015 Domestic $ 475 $ 1,087 $ 1,007 Foreign 2,360 2,218 2,141 $ 2,835 $ 3,305 $ 3,148 Taxes on income are comprised as follows: Year Ended December 31, 2013 2014 2015 Current taxes $ 542 $ 451 $ 806 Deferred taxes (1,946) 2,940 1,976 $ (1,404) $ 3,391 $ 2,782 Domestic $ (634) $ 2,122 $ 1,458 Foreign (770) 1,269 1,324 $ (1,404) $ 3,391 $ 2,782 Deferred income taxes: December 31, 2014 2015 Deferred tax assets: Net operating loss carry-forward $ 48,392 $ 47,646 Reserves and allowances 9,780 9,682 Net deferred tax assets before valuation allowance 58,172 57,328 Less - Valuation allowance (53,980) (55,112) Deferred tax asset $ 4,192 $ 2,216 Deferred tax liability $ - $ (557) Deferred tax asset Domestic: 2,232 1,141 Foreign: 1,960 1,075 $ 4,192 $ 2,216 Deferred tax liability Foreign: $ - $ (557) The Company's U.S. subsidiary has estimated total available carry-forward tax losses of approximately $ 75,000 $ 11,000 2020 and 203 4 1,075 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: Year Ended December 31, 2013 2014 2015 Income before taxes, as reported in the consolidated statements of operations $ 2,835 $ 3,305 $ 3,148 Statutory tax rate 25 % 26.5 % 26.5 % Theoretical tax expense on the above amount at the Israeli statutory tax rate $ 709 $ 876 $ 834 Income tax at rate other than the Israeli statutory tax rate 310 353 361 Tax advances, withholding tax and non-deductible expenses, including stock-based compensation expenses 518 897 1,338 Losses for which a valuation allowance was provided (utilized) (2,929) 1,101 209 Tax adjustment in respect of different tax rates (148) - - State and Federal taxes 163 136 137 Foreign exchange (20) 17 - Impairment of tax advances 64 - - Other (71) 11 (97) Actual tax expense (benefit) $ (1,404) $ 3,391 $ 2,782 f. Unrecognized tax benefits: The Company's unrecognized tax benefits as of December 31, 2014 and 2015 are $ 158 158 The Company recognized interest and penalties related to unrecognized tax benefits in tax expenses in the amount of $ 8 8 7 212 219 The Company has received final tax assessment through the tax year 2010. |
BASIC AND DILUTED EARNINGS (LOS
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | BASIC AND DILUTED EARNINGS (LOSS) PER SHARE Year Ended December 31, 2013 2014 2015 Numerator: Net income (loss) $ 4,218 $ (86) $ 366 Denominator: Denominator for basic earnings (loss) per share - weighted average number of ordinary shares, net of treasury stock 38,241,258 42,285,919 40,178,292 Effect of dilutive securities: Employee stock options, warrants and RSU's 855,500 *)- 386,653 Senior convertible notes *)- **)- - Denominator for diluted earnings (loss) per share - adjusted weighted average number of shares 39,096,758 42,285,919 40,564,945 *) Antidilutive. **) Insignificant. |
FINANCIAL INCOME (EXPENSES), NE
FINANCIAL INCOME (EXPENSES), NET | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Other Nonoperating Income and Expense [Text Block] | NOTE 17:- FINANCIAL INCOME (EXPENSES), NET Year Ended December 31, 2013 2014 2015 Financial expenses: Loss related to non-hedging derivative instruments $ (191) $ - $ (230) Interest (617) (415) (278) Amortization of marketable securities premiums and accretion of discounts, net (349) (820) (1,094) Exchange rate - (722) - Others (229) (205) (286) (1,386) (2,162) (1,888) Financial income - Gain related to non-hedging derivative instruments - 196 - Interest and others 1,294 1,770 2,302 Exchange rate 188 - 28 1,482 1,966 2,330 $ 96 $ (196) $ 442 |
GEOGRAPHIC INFORMATION
GEOGRAPHIC INFORMATION | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 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. 2013 2014 2015 Long- Long- Long- Total lived Total lived Total lived revenues assets revenues assets revenues assets Israel $ 7,887 $ 2,941 $ 7,994 $ 3,576 $ 6,414 $ 3,836 Americas, principally U.S. 71,527 147 76,429 141 72,079 96 Europe 37,310 74 43,989 56 38,873 79 Far East 20,508 29 23,167 83 22,393 79 $ 137,232 $ 3,191 $ 151,579 $ 3,856 $ 139,759 $ 4,090 b. Product lines: Year Ended December 31, 2013 2014 2015 Technology $ 22,048 $ 19,680 $ 15,965 Networking 115,184 131,899 123,794 $ 137,232 $ 151,579 $ 139,759 |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2015 | |
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. As of December 31, 2014 and 2015, the Group had a net deferred gain associated with cash flow hedges of $ 127 273 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, 2013, 2014 and 2015 were $ (191) 196 (230) As of December 31, 2014 and 2015, the Group had outstanding forward and options collar (cylinder) contracts in the amount of $ 43,500 18,000 6,000 Foreign exchange forward December 31, and options contracts Balance sheet 2014 2015 Fair value of foreign exchange forward and options collar (cylinder) contracts "Other receivables and prepaid expenses" $ 446 $ 291 "Other payables and accrued expenses" $ (319) $ (189) Gains (losses) recognized in other comprehensive income (loss) (effective portion) "Other comprehensive income (loss)" $ 127 $ 146 Year Ended Foreign exchange forward Comprehensive December 31, and options contracts Income (loss) 2014 2015 Comprehensive income (loss) from derivatives before reclassifications "Other comprehensive income (loss)" $ (367) $ 374 Income (loss) reclassified from accumulated other comprehensive income (effective portion) "Operating expenses" $ (494) $ (228) |
SIGNIFICANT ACCOUNTING POLICI27
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | a. Use of estimates: The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. Management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Financial Statements [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. 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 dollars in accordance with 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 1.51 1.30 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 Company's loans ( see Note 12 Note 13a 7,097 5,356 |
Marketable Securities, Policy [Policy Text Block] | Marketable securities: The Group 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. As of December 31, 2014 and 2015, the Group classified all of its marketable securities as available-for-sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses, net of tax, reported in “accumulated other comprehensive income (loss)” in shareholders’ equity. Realized gains and losses on sale of investments are included in “financial income (expenses), net” and are derived using the specific identification method for determining the cost of securities. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization together with interest on securities is included in “financial income (expenses), net”. The Group recognizes an impairment charge when a decline in the fair value of its investments in debt securities below the cost basis of such securities is judged to be other than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Group’s intent to sell, including whether it is more-likely-than-not that the Group will be required to sell the investment before recovery of cost basis. For securities that are deemed other-than-temporarily impaired, the amount of impairment is recognized in the statements of operations and is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income (loss). For the years ended December 31, 2013, 2014 and 2015, 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 payable 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 1.00 ( see also Note 12 4,005 3,080 |
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" ("ASC 323"). 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, 2013, 2014 and 2015, no impairment losses had been identified. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and equipment: Property and equipment are stated at cost, net of accumulated depreciation. % 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). During the years ended December 31, 2013, 2014 and 2015, no impairment losses had been identified for property and equipment. |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | k. Intangible assets: Intangible assets are comprised of acquired technology, customer relations and licenses. 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 four and a half 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, 2013, 2014 and 2015, 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. For each of the three years in the period ended December 31, 2015, 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 ASC 605, "Revenue Recognition", ("ASC 605"), 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 reasonably assured. 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") 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 ASC 605. The provision was deducted from revenues and amounted to $ 1,338 1,737 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. Deferred revenues include amounts invoiced to customers for which revenue has not yet been recognized. |
Standard Product Warranty, Policy [Policy Text Block] | n. Warranty costs: The Group usually 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, 2014 and 2015, the provision for warranty amounted to $ 458 407 |
Research and Development Expense, Policy [Policy Text Block] | o. Research and development costs: ASC 985-20, "Costs of Software to Be Sold, Leased, or Marketed", requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. Based on the Company's product development process, technological feasibility is established upon the completion of a working model. The Company does not incur material costs between the completion of a working model and the point at which the products are ready for general release. Therefore, research and development costs are charged to the consolidated statement of comprehensive loss as incurred. Participation grants from the Office of the Chief Scientist of the Israeli Ministry of Economy and Industry, ("OCS") for research and development activity are recognized at the time the Company is entitled to such grants on the basis of the costs incurred and included as a deduction of research and development costs. Research and development grants recognized during the years ended December 31, 2013, 2014 and 2015 were $ 2,799 3,871 5,448 |
Income Tax, Policy [Policy Text Block] | p. Income taxes: The Group accounts for income taxes in accordance with ASC 740, "Income Taxes", ("ASC 740"). 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 tax 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. Accumulated other comprehensive income (loss) ("AOCI"): The Company accounts for comprehensive income in accordance with ASC topic 220, "Comprehensive Income". This statement establishes standards for the reporting and display of comprehensive income (loss) and its components in a full set of general purpose financial statements. Comprehensive income (loss) generally represents all changes in shareholders' equity during the period except those resulting from investments by, or distributions to, shareholders. AOCI Unrealized Unrealized Total Balance as of January 1, 2015 $ (388) $ 127 $ (261) Other comprehensive income (loss) before reclassifications (35) 374 339 Amounts reclassified from AOCI 13 (228) (215) Other comprehensive income (loss) (22) 146 124 Balance as of December 31, 2015 $ (410) $ 273 $ (137) The effects on net income of amounts reclassified from AOCI for the year ended December 31, 2015 derive from realized gains on cash flow hedges recorded in operating expenses and from realized losses on marketable securities recorded in financial expenses (income). |
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, marketable securities and foreign currency derivative contracts. The majority of the Group's cash and cash equivalents, bank deposits and foreign currency derivative contracts 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 dollar linked corporate bonds. Marketable securities consist of highly liquid debt instruments with high credit standing. The Company’s investment policy, approved by the Board of Directors, limits the amount the Group may invest in any one type of investment or issuer, thereby reducing credit risk concentrations. 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. 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. |
Earnings Per Share, Policy [Policy Text Block] | s. 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 outstanding options, RSUs and warrants that have been excluded from the calculation of diluted earnings (loss) per share was 1,545,867 954,823 2,250,433 |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | t. Accounting for stock-based compensation: The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation-Stock Compensation" ("ASC 718"). ASC 718 requires companies to estimate the fair value of stock-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" ("ASC 505-50") 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, 2013, 2014 and 2015, was $ 3.00 2.97 2.04 Year Ended December 31, 2013 2014 2015 Dividend yield 0% 0% 0% Expected volatility 58.9%-61.9% 54.8%-59.4% 53.32%-55.86% Risk-free interest 0.63%-1.78% 1.48%-1.86% 1.14%-1.74% Expected life 4.72-5.67 years 4.74-5.43 years 4.75-5.43 years Forfeiture rate 4.0% 4.0% 4.0% 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. Year Ended December 31, 2013 2014 2015 Cost of revenues $ 62 $ 89 $ 101 Research and development expenses, net 408 585 429 Selling and marketing expenses 625 1,105 1,061 General and administrative expenses 606 767 782 Total stock-based compensation expenses $ 1,701 $ 2,546 $ 2,373 |
Treasury Stock [Policy Text Block] | u. 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] | 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 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, 1963 or labor agreements. Since March 2011, the Group's agreements with new Israeli employees 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 Group is legally released from the obligations to employees once the deposit amounts have been paid, and therefore the severance pay liability is not reflected in the balance sheet. Severance pay expenses for the years ended December 31, 2013, 2014 and 2015, amounted to $ 1,878 1,961 2,153 |
Employee Benefit Plan [Policy Text Block] | w. 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 $ 18 6 6 244 284 287 |
Advertising Costs, Policy [Policy Text Block] | Advertising expenses: Advertising expenses are charged to the statements of operations as incurred. Advertising expenses for the years ended December 31, 2013, 2014 and 2015 amounted to $ 342 562 604 |
Fair Value of Financial Instruments, Policy [Policy Text Block] | 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 and accrued expenses approximate their fair value due to the short-term maturity of such instruments. The fair value of long-term bank 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. The fair value of marketable securities is estimated by obtaining the fair value of the marketable securities from the bank, which is based on current quotes and market value provided by external service providers. 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" ("ASC 820") 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] | Derivatives and hedging: The Group accounts for derivatives and hedging based on ASC 815, "Derivatives and Hedging" ("ASC 815"). 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 (expenses), net" at each reporting period. 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. |
New Accounting Pronouncements, Policy [Policy Text Block] | aa. Impact of recently issued accounting pronouncements: In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09 (ASU 2014-09) "Revenue from Contracts with Customers." ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. As currently issued and amended, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, though early adoption is permitted for annual reporting periods beginning after December 15, 2016. The Company is currently in the process of evaluating the impact of the adoption of ASU 2014-09 on its consolidated financial statements, implementing accounting system changes related to the adoption, and considering additional disclosure requirements. The Company is still evaluating the effect that the updated standard will have its consolidated financial statements and related disclosures. In February 2015, the FASB issued Accounting Standards Update No. 2015-02 (ASU 2015-02) "Consolidation (Topic 810): Amendments to the Consolidation Analysis." ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The Company will adopt this standard in the first quarter of 2016 on a retrospective basis. The Company does not expect the adoption of this standard to have a material impact on its consolidated statement of operations or consolidated balance sheet, but it may result in additional disclosures. In July 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2015-11 (ASU 2015-11) "Simplifying the Measurement of Inventory". ASU 2015-11 simplified the current guidance under which the Company should measure the inventory at the lower of cost or market. Under ASU 2015-11, inventory is measured at the “lower of cost and net realizable value,” which eliminates the other two options that currently exist for “market”: (1) replacement cost and (2) net realizable value less an approximately normal profit margin. ASU 2015-11 is effective for annual reporting periods beginning after December 15, 2016, and interim periods within reporting period beginning after December 15, 2017. Early adoption is permitted. The Company elected to adopt ASU 2015-11 during the year ended December 31, 2015. The new standard has not had a material effect on the financial statements. In September 2015, the FASB issued ASU 2015-16, "Simplifying the Accounting for Measurement-period Adjustments." This new guidance requires an acquirer in a business combination to recognize adjustments to the provisional amounts that are identified during the measurement period to be reported in the period in which the adjustment amounts are determined. In addition, the effect on earnings of changes in depreciation, amortization and other items as a result of the change to the provisional amounts, calculated as if the accounting had been complete as of the acquisition date, must be recorded in the reporting period in which the adjustment amounts are determined. ASU 2015-16 is effective for fiscal periods beginning after December 15, 2015 and must be applied prospectively. Early adoption is permitted. The Company has not yet adopted ASU 2015-16 and does not expect the adoption of this guidance to have a material impact on its consolidated financial position or results of operations. In November 2015, the FASB issued Accounting Standards Update No. 2015-17 (ASU 2015-17) “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes”. ASU 2015-17 simplifies the presentation of deferred income taxes by eliminating the separate classification of deferred income tax liabilities and assets into current and noncurrent amounts in the consolidated balance sheet statement of financial position. The amendments in the update require that all deferred tax liabilities and assets be classified as noncurrent in the consolidated balance sheet. The amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods therein and may be applied either prospectively or retrospectively to all periods presented. Early adoption is permitted. The Company has early adopted this standard in the fourth quarter of 2015 on a retrospective basis. Prior periods have been retrospectively adjusted. As a result of the adoption of ASU 2015-17, the Company made the following adjustments to the December 31, 2014 balance sheet: a $ 3,320 In February 2016, the FASB issued ASU 2016-02, “Leases” (Topic 842), whereby, lessees will be required to recognize for all leases at the commencement date a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. A modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements must be applied. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Companies may not apply a full retrospective transition approach. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018. Early application is permitted. The Company is evaluating the potential impact of this pronouncement. |
SIGNIFICANT ACCOUNTING POLICI28
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Property Plant And Equipment Estimated Useful Lives [Table Text Block] | 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 Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The components of AOCI Unrealized Unrealized Total Balance as of January 1, 2015 $ (388) $ 127 $ (261) Other comprehensive income (loss) before reclassifications (35) 374 339 Amounts reclassified from AOCI 13 (228) (215) Other comprehensive income (loss) (22) 146 124 Balance as of December 31, 2015 $ (410) $ 273 $ (137) |
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, 2013 2014 2015 Dividend yield 0% 0% 0% Expected volatility 58.9%-61.9% 54.8%-59.4% 53.32%-55.86% Risk-free interest 0.63%-1.78% 1.48%-1.86% 1.14%-1.74% Expected life 4.72-5.67 years 4.74-5.43 years 4.75-5.43 years Forfeiture rate 4.0% 4.0% 4.0% |
Schedule Of Equity Based Compensation Expenses [Table Text Block] | The total stock-based compensation expenses relating to all of the Company's stock-based awards recognized for the years ended December 31, 2013, 2014 and 2015 were included in items of the consolidated statements of operations as follows: Year Ended December 31, 2013 2014 2015 Cost of revenues $ 62 $ 89 $ 101 Research and development expenses, net 408 585 429 Selling and marketing expenses 625 1,105 1,061 General and administrative expenses 606 767 782 Total stock-based compensation expenses $ 1,701 $ 2,546 $ 2,373 |
ACQUISITION OF ACTIVE COMMUNI29
ACQUISITION OF ACTIVE COMMUNICATIONS EUROPE. (''ACS'') (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the acquisition date: Current assets $ 305 Property and equipment 20 Technology 1,917 Customer relationships 312 Total identifiable assets acquired 2,554 Current liabilities (361) Deferred tax liability (557) Total identifiable liabilities assumed (918) Net identifiable assets acquired 1,636 Goodwill 2,473 Net assets acquired $ 4,109 |
MARKETABLE SECURITIES AND ACC30
MARKETABLE SECURITIES AND ACCRUED INTEREST (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Marketable Securities and Accrued Interest [Abstract] | |
Available-for-sale Securities [Table Text Block] | The following is a summary of available for sale marketable securities: December 31, 2014 Amortized Unrealized Unrealized Fair cost gains losses Value Corporate bonds: Maturing between one to five years $ 59,072 $ 12 $ (400) $ 58,684 Accrued interest 543 - - 543 $ 59,615 $ 12 $ (400) $ 59,227 December 31, 2015 Amortized Unrealized Unrealized Fair cost gains losses Value Corporate bonds: Maturing within one year $ 1,997 $ - $ (4) $ 1,993 Maturing between one to five years 50,700 7 (413) 50,294 Accrued interest 487 - - 487 $ 53,184 $ 7 $ (417) $ 52,774 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Product Information [Table Text Block] | December 31, 2014 2015 Raw materials $ 6,794 $ 6,687 Finished products 7,942 $ 10,091 $ 14,736 $ 16,778 |
INVESTMENT IN AN AFFILIATED C32
INVESTMENT IN AN AFFILIATED COMPANY (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule Of Transactions Of Affiliates Investment [Table Text Block] | Operation transactions with Mailvision were as follows: Year Ended December 31, 2013 2014 2015 Amounts charged - cost of revenues $ 432 $ - - |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | December 31, 2014 2015 Cost: Computers and peripheral equipment $ 26,647 $ 27,495 Office furniture and equipment 10,861 11,593 Leasehold improvements 2,908 3,354 40,416 42,442 Accumulated depreciation: Computers and peripheral equipment 24,607 25,833 Office furniture and equipment 9,873 10,264 Leasehold improvements 2,080 2,255 36,560 38,352 Depreciated cost $ 3,856 $ 4,090 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Useful life December 31, (years) 2014 2015 a. Impaired cost: Acquired technology and license 5 - 10 $ 17,939 $ 19,857 Customer relationship 4.5 - 9 4,438 4,750 22,377 24,607 Accumulated amortization: Acquired technology and license 15,247 16,240 Customer relationship 4,134 4,343 19,381 20,583 Amortized cost $ 2,996 $ 4,024 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Year ending December 31, 2016 $ 1,200 2017 835 2018 749 2019 354 Thereafter 886 $ 4,024 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2014 Fair value measurements using input type Level 2 Level 3 Total Financial assets related to foreign currency derivative hedging contracts $ 220 $ - $ 220 Marketable securities 59,227 - 59,227 Contingent consideration related to Mailvision - (443) (443) Total Financial asset (liability) $ 59,447 $ (443) $ 59,004 December 31, 2015 Fair value measurements using input type Level 2 Level 3 Total Financial assets related to foreign currency derivative hedging contracts $ 101 $ - $ 101 Marketable securities 52,774 - 52,774 Contingent consideration related to Mailvision - (228) (228) Earn-Out liability related to the acquisition of ACS - (2,109) (2,109) Total Financial asset (liability) $ 52,875 $ (2,337) $ 50,538 |
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, 2015 $ (443) Payment of MV Earn Out liability 233 Adjustment due to time change value (18) Liabilities incurred in relation to the acquisition of ACS (2,109) Balance at December 31, 2015 $ (2,337) |
OTHER PAYABLES AND ACCRUED EX36
OTHER PAYABLES AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Schedule Of Other Payables And Accrued Expenses [Text Block] | December 31, 2014 2015 Payroll and other employee related accruals $ 3,995 $ 3,474 Vacation accrual 2,669 2,931 Royalties provision 929 966 Government authorities 468 288 Accrued expenses 7,146 9,864 Others 551 428 $ 15,758 $ 17,951 |
COMMITMENTS AND CONTINGENT LI37
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2016 $ 6,076 2017 6,637 2018 6,302 2019 5,308 2020 and thereafter 21,679 Total minimum lease payments *) $ 46,002 *) Minimum payments have been reduced by minimum sublease rental of $ 835 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
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, 2015: Weighted average Weighted remaining average contractual Aggregate Amount exercise term (in) intrinsic of options price years) value Options outstanding at beginning of year 3,257,859 $ 4.23 4.7 $ 2,440 Changes during the year: Granted 648,275 $ 4.20 Exercised (128,375) $ 3.07 Forfeited (93,625) $ 4.42 Expired (14,000) $ 4.17 Options outstanding at end of year 3,670,134 $ 4.25 4.3 $ 1,370 Vested and expected to vest 3,523,329 $ 4.25 4.3 $ 1,315 Options exercisable at end of year 1,901,674 $ 4.06 3.2 $ 1,004 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Weighted Number of average grant shares date fair value RSUs outstanding at beginning of year 221,004 $ 4.79 Changes during the year: Granted 174,518 $ 3.76 Exercised (93,099) $ 4.61 Forfeited (3,500) $ 4.71 RSUs outstanding at end of year 298,923 $ 4.25 |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | The following is a summary of warrants issued to non-employees for the year ended December 31, 2015: Weighted Number of average shares exercise price Warrants outstanding at beginning of year 165,000 $ 4.65 Changes during the year: Forfeited (100,000) $ 4.80 Warrants outstanding at end of year 65,000 $ 4.43 Warrants exercisable at end of year 31,250 $ 4.40 |
Schedule Of Share Based Compensation Stock Options Outstanding [Table Text Block] | Options Weighted Options Weighted outstanding average Weighted exercisable average Range of as of remaining average as of exercise price of exercise December 31, contractual exercise December 31, exercisable price 2015 life price 2015 options (Years) $ 0.00-1.10 7,000 2.95 $ 0.00 5,875 $ 0.00 $ 1.50-2.51 220,675 2.56 $ 2.06 166,550 $ 2.08 $ 2.57-4.00 1,438,085 3.86 $ 3.25 948,159 $ 3.18 $ 4.03-6.49 1,784,843 4.85 $ 4.94 634,575 $ 5.11 $ 6.51-9.24 284,531 4.07 $ 6.88 177,765 $ 7.04 3,735,134 4.3 $ 4.26 1,932,924 $ 4.06 |
TAXES ON INCOME (Tables)
TAXES ON INCOME (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Year Ended December 31, 2013 2014 2015 Domestic $ 475 $ 1,087 $ 1,007 Foreign 2,360 2,218 2,141 $ 2,835 $ 3,305 $ 3,148 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Taxes on income are comprised as follows: Year Ended December 31, 2013 2014 2015 Current taxes $ 542 $ 451 $ 806 Deferred taxes (1,946) 2,940 1,976 $ (1,404) $ 3,391 $ 2,782 Domestic $ (634) $ 2,122 $ 1,458 Foreign (770) 1,269 1,324 $ (1,404) $ 3,391 $ 2,782 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred income taxes: December 31, 2014 2015 Deferred tax assets: Net operating loss carry-forward $ 48,392 $ 47,646 Reserves and allowances 9,780 9,682 Net deferred tax assets before valuation allowance 58,172 57,328 Less - Valuation allowance (53,980) (55,112) Deferred tax asset $ 4,192 $ 2,216 Deferred tax liability $ - $ (557) Deferred tax asset Domestic: 2,232 1,141 Foreign: 1,960 1,075 $ 4,192 $ 2,216 Deferred tax liability Foreign: $ - $ (557) |
Schedule Of Income Tax Reconciliation Between Theoretical And Actual Tax Expenses Benefit [Table Text Block] | e. Reconciliation of the theoretical tax expenses: Year Ended December 31, 2013 2014 2015 Income before taxes, as reported in the consolidated statements of operations $ 2,835 $ 3,305 $ 3,148 Statutory tax rate 25 % 26.5 % 26.5 % Theoretical tax expense on the above amount at the Israeli statutory tax rate $ 709 $ 876 $ 834 Income tax at rate other than the Israeli statutory tax rate 310 353 361 Tax advances, withholding tax and non-deductible expenses, including stock-based compensation expenses 518 897 1,338 Losses for which a valuation allowance was provided (utilized) (2,929) 1,101 209 Tax adjustment in respect of different tax rates (148) - - State and Federal taxes 163 136 137 Foreign exchange (20) 17 - Impairment of tax advances 64 - - Other (71) 11 (97) Actual tax expense (benefit) $ (1,404) $ 3,391 $ 2,782 |
BASIC AND DILUTED EARNINGS (L40
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Table Text Block] | Year Ended December 31, 2013 2014 2015 Numerator: Net income (loss) $ 4,218 $ (86) $ 366 Denominator: Denominator for basic earnings (loss) per share - weighted average number of ordinary shares, net of treasury stock 38,241,258 42,285,919 40,178,292 Effect of dilutive securities: Employee stock options, warrants and RSU's 855,500 *)- 386,653 Senior convertible notes *)- **)- - Denominator for diluted earnings (loss) per share - adjusted weighted average number of shares 39,096,758 42,285,919 40,564,945 *) Antidilutive. **) Insignificant. |
FINANCIAL INCOME (EXPENSES), 41
FINANCIAL INCOME (EXPENSES), NET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | Year Ended December 31, 2013 2014 2015 Financial expenses: Loss related to non-hedging derivative instruments $ (191) $ - $ (230) Interest (617) (415) (278) Amortization of marketable securities premiums and accretion of discounts, net (349) (820) (1,094) Exchange rate - (722) - Others (229) (205) (286) (1,386) (2,162) (1,888) Financial income - Gain related to non-hedging derivative instruments - 196 - Interest and others 1,294 1,770 2,302 Exchange rate 188 - 28 1,482 1,966 2,330 $ 96 $ (196) $ 442 |
GEOGRAPHIC INFORMATION (Tables)
GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2013, 2014 and 2015 and long-lived assets as of December 31, 2013, 2014 and 2015. 2013 2014 2015 Long- Long- Long- Total lived Total lived Total lived revenues assets revenues assets revenues assets Israel $ 7,887 $ 2,941 $ 7,994 $ 3,576 $ 6,414 $ 3,836 Americas, principally U.S. 71,527 147 76,429 141 72,079 96 Europe 37,310 74 43,989 56 38,873 79 Far East 20,508 29 23,167 83 22,393 79 $ 137,232 $ 3,191 $ 151,579 $ 3,856 $ 139,759 $ 4,090 |
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, 2013 2014 2015 Technology $ 22,048 $ 19,680 $ 15,965 Networking 115,184 131,899 123,794 $ 137,232 $ 151,579 $ 139,759 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2014 and 2015 are summarized below: Foreign exchange forward December 31, and options contracts Balance sheet 2014 2015 Fair value of foreign exchange forward and options collar (cylinder) contracts "Other receivables and prepaid expenses" $ 446 $ 291 "Other payables and accrued expenses" $ (319) $ (189) Gains (losses) recognized in other comprehensive income (loss) (effective portion) "Other comprehensive income (loss)" $ 127 $ 146 |
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, 2014 and 2015 is summarized below: Year Ended Foreign exchange forward Comprehensive December 31, and options contracts Income (loss) 2014 2015 Comprehensive income (loss) from derivatives before reclassifications "Other comprehensive income (loss)" $ (367) $ 374 Income (loss) reclassified from accumulated other comprehensive income (effective portion) "Operating expenses" $ (494) $ (228) |
GENERAL (Details Textual)
GENERAL (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
May. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | May. 31, 2013 | |
Entity-Wide Revenue, Major Customer, Percentage | 15.00% | 14.90% | 17.80% | ||
Acquisition Costs | $ 233 | $ 233 | |||
Net Assets Acquired | $ 4,109 | 3,434 | |||
Present Value Of Acquisition Cost | 221 | ||||
Business Combination Fair Value Of Earn Out Consideration | 432 | 2,109 | |||
Fair Value Estimate Not Practicable First Earn Out | $ 228 | $ 443 | |||
Increase decrease in Entity Wide Revenue Major Customer Percentage | 12.60% | 10.50% | |||
Business Acquisition Percentage Of Outstanding Shares Acquired | 100.00% | ||||
Mailvision Affiliated Company [Member] | |||||
Equity Method Investment, Ownership Percentage | 29.60% | 29.60% | 29.20% | ||
Business Combination Wavier Amount Recognized | 1,472 | ||||
Business Combination Fair Value Of Sale Options | 376 | ||||
Business Combination Revaluation Of Investments | $ 933 | ||||
Gain Loss On Revaluation Of Equity Investments | $ 95 | ||||
Minimum [Member] | |||||
Entity-Wide Revenue, Major Customer, Percentage | 10.00% |
SIGNIFICANT ACCOUNTING POLICI45
SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Computers and Peripheral Equipment | |
Disclosure On Annual Depreciation Rate Using Straight Line Method | 33% |
Office Furniture and Equipment | |
Disclosure On Annual Depreciation Rate Using Straight Line Method | 6 - 20 (mainly 15) |
Leasehold Improvements | |
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 POLICI46
SIGNIFICANT ACCOUNTING POLICIES (Details1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Amounts reclassified from AOCI | $ (13) | $ 0 | $ 0 |
AOCI | |||
Balance as of January 1, 2015 | (261) | ||
Other comprehensive income (loss) before reclassifications | 339 | ||
Amounts reclassified from AOCI | (215) | ||
Other comprehensive income (loss) | 124 | ||
Balance as of December 31, 2015 | (137) | (261) | |
Unrealized Losses on Available for Sale Investments | AOCI | |||
Balance as of January 1, 2015 | (388) | ||
Other comprehensive income (loss) before reclassifications | (35) | ||
Amounts reclassified from AOCI | 13 | ||
Other comprehensive income (loss) | (22) | ||
Balance as of December 31, 2015 | (410) | (388) | |
Unrealized Gains on Cash Flow Hedges | AOCI | |||
Balance as of January 1, 2015 | 127 | ||
Other comprehensive income (loss) before reclassifications | 374 | ||
Amounts reclassified from AOCI | (228) | ||
Other comprehensive income (loss) | 146 | ||
Balance as of December 31, 2015 | $ 273 | $ 127 |
SIGNIFICANT ACCOUNTING POLICI47
SIGNIFICANT ACCOUNTING POLICIES (Details 2) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Dividend yield | 0.00% | 0.00% | 0.00% |
Forfeiture rate | 4.00% | 4.00% | 4.00% |
Maximum [Member] | |||
Expected volatility | 55.86% | 59.40% | 61.90% |
Risk-free interest | 1.74% | 1.86% | 1.78% |
Expected life | 5 years 5 months 5 days | 5 years 5 months 5 days | 5 years 8 months 1 day |
Minimum [Member] | |||
Expected volatility | 53.32% | 54.80% | 58.90% |
Risk-free interest | 1.14% | 1.48% | 0.63% |
Expected life | 4 years 9 months | 4 years 8 months 26 days | 4 years 8 months 19 days |
SIGNIFICANT ACCOUNTING POLICI48
SIGNIFICANT ACCOUNTING POLICIES (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Total stock-based compensation expenses | $ 2,373 | $ 2,546 | $ 1,701 |
Cost of revenues | |||
Total stock-based compensation expenses | 101 | 89 | 62 |
Research and development expenses, net | |||
Total stock-based compensation expenses | 429 | 585 | 408 |
Selling and marketing expenses | |||
Total stock-based compensation expenses | 1,061 | 1,105 | 625 |
General and administrative expenses | |||
Total stock-based compensation expenses | $ 782 | $ 767 | $ 606 |
SIGNIFICANT ACCOUNTING POLICI49
SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Short Term Bank Deposits Bear Interest Average Rate | 1.30% | 1.51% | |
Restricted Short Term Deposits | $ 5,356 | $ 7,097 | |
Long Term Bank Deposits Bear Interest Average Rate | 1.00% | 2.54% | |
Restricted Long Term Deposits | $ 3,080 | $ 4,005 | |
Revenue from Grants | $ 5,448 | $ 3,871 | $ 2,799 |
Antidilutive Securities and Outstanding Options, RSUs and Warrants Excluded from Computation of Earings Per Share, Amount | 2,250,433 | 954,823 | 1,545,867 |
Severance Cost | $ 2,153 | $ 1,961 | $ 1,878 |
Catch Up Contribution Amount Eligible For Participants With Age 50 Or More | $ 6 | $ 6 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 2.04 | $ 2.97 | $ 3 |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Amount | $ 287 | $ 284 | $ 244 |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 6.00% | ||
Advertising Expense | $ 604 | 562 | $ 342 |
Internal Revenue Service (IRS) [Member] | |||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Amount | 18 | 18 | |
Warranty Reserves [Member] | |||
Valuation Allowances and Reserves, Balance | 407 | 458 | |
Allowance for Sales Returns [Member] | |||
Valuation Allowances and Reserves, Balance | $ 1,737 | 1,338 | |
Accounting Standards Update 2015-17 [Member] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 3,320 |
ACQUISITION OF ACTIVE COMMUNI50
ACQUISITION OF ACTIVE COMMUNICATIONS EUROPE. (''ACS'') (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill | $ 36,222 | $ 33,749 |
ACTIVE COMMUNICATIONS EUROPE [Member] | ||
Current assets | 305 | |
Property and equipment | 20 | |
Technology | 1,917 | |
Customer relationships | 312 | |
Total identifiable assets acquired | 2,554 | |
Current liabilities | (361) | |
Deferred tax liability | (557) | |
Total identifiable liabilities assumed | (918) | |
Net identifiable assets acquired | 1,636 | |
Goodwill | 2,473 | |
Net assets acquired | $ 4,109 |
ACQUISITION OF ACTIVE COMMUNI51
ACQUISITION OF ACTIVE COMMUNICATIONS EUROPE. (''ACS'') (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | May. 31, 2015 | |
Net assets acquired | $ 4,109 | $ 3,434 | |
Payments to Acquire Businesses, Gross | 2,000 | ||
Business Combination Fair Value Of Earn Out Consideration | 2,109 | $ 432 | |
Goodwill | $ 36,222 | $ 33,749 | |
Business Combination Acquired Core Technology Useful Life | 7 years | ||
Business Acquisition Percentage Of Outstanding Shares Acquired | 100.00% | ||
Earn Out Payment Description | (a) 20% of ACS Products net revenues (the "ACS Revenues") after the first $2,000 ACS Revenues up to an earn-out payment of $ 2,000, plus (b) an additional amount of 10% of ACS Revenues after the first $ 20,000 ACS Revenues (the "ACS Earn-Out"). | ||
Minimum [Member] | |||
Business Combination Customer Relationship Useful Life | 5 years | ||
Maximum [Member] | |||
Business Combination Customer Relationship Useful Life | 7 years | ||
ACTIVE COMMUNICATIONS EUROPE [Member] | |||
Goodwill | $ 2,473 | ||
Business Combination, Deferred Payments Current | 500 | ||
Business Combination, Deferred Payments Noncurrent | $ 500 |
MARKETABLE SECURITIES AND ACC52
MARKETABLE SECURITIES AND ACCRUED INTEREST (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Amortized cost | $ 53,184 | $ 59,615 |
Unrealized gains | 7 | 12 |
Unrealized losses | (417) | (400) |
Fair Value | 52,774 | 59,227 |
Corporate Bonds [Member] | Maturing Within One Year [Member] | ||
Amortized cost | 1,997 | |
Unrealized gains | 0 | |
Unrealized losses | (4) | |
Fair Value | 1,993 | |
Corporate Bonds [Member] | Maturing Between One to Five Years [Member] | ||
Amortized cost | 50,700 | 59,072 |
Unrealized gains | 7 | 12 |
Unrealized losses | (413) | (400) |
Fair Value | 50,294 | 58,684 |
Accured Interest [Member] | ||
Amortized cost | 487 | 543 |
Unrealized gains | 0 | 0 |
Unrealized losses | 0 | 0 |
Fair Value | $ 487 | $ 543 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory [Line Items] | ||
Raw materials | $ 6,687 | $ 6,794 |
Finished products | 10,091 | 7,942 |
Inventory, Net | $ 16,778 | $ 14,736 |
INVENTORIES (Details Textual)
INVENTORIES (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Inventory [Line Items] | |||
Inventory Write-down | $ 724 | $ 82 | $ 1,746 |
INVESTMENT IN AN AFFILIATED C55
INVESTMENT IN AN AFFILIATED COMPANY (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Amounts charged - cost of revenues | $ 56,971 | $ 62,592 | $ 58,564 |
Mailvision Ltd [Member] | |||
Amounts charged - cost of revenues | $ 0 | $ 0 | $ 432 |
INVESTMENT IN AN AFFILIATED C56
INVESTMENT IN AN AFFILIATED COMPANY (Details Textual) | Dec. 31, 2015 | Dec. 31, 2014 | May. 31, 2013 |
Mail Vision Affiliated Company [Member] | |||
Equity Method Investment, Ownership Percentage | 29.60% | 29.60% | 29.20% |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, plant and equipment, Cost | $ 42,442 | $ 40,416 |
Accumulated depreciation | 38,352 | 36,560 |
Depreciated cost | 4,090 | 3,856 |
Computers and Peripheral Equipment [Member] | ||
Property, plant and equipment, Cost | 27,495 | 26,647 |
Accumulated depreciation | 25,833 | 24,607 |
Office Furniture And Equipment [Member] | ||
Property, plant and equipment, Cost | 11,593 | 10,861 |
Accumulated depreciation | 10,264 | 9,873 |
Leasehold Improvements [Member] | ||
Property, plant and equipment, Cost | 3,354 | 2,908 |
Accumulated depreciation | $ 2,255 | $ 2,080 |
PROPERTY AND EQUIPMENT, NET (58
PROPERTY AND EQUIPMENT, NET (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Depreciation | $ 1,761 | $ 1,874 | $ 2,014 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets, Gross | $ 24,607 | $ 22,377 |
Finite-Lived Intangible Assets, Accumulated Amortization | 20,583 | 19,381 |
Finite-Lived Intangible Assets, Net | 4,024 | 2,996 |
Acquired technology and license [Member] | ||
Finite-Lived Intangible Assets, Gross | 19,857 | 17,939 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 16,240 | $ 15,247 |
Acquired technology and license [Member] | Maximum [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | 10 years |
Acquired technology and license [Member] | Minimum [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | 5 years |
Customer Relationship [Member] | ||
Finite-Lived Intangible Assets, Gross | $ 4,750 | $ 4,438 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 4,343 | $ 4,134 |
Customer Relationship [Member] | Maximum [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 9 years | 9 years |
Customer Relationship [Member] | Minimum [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 4 years 6 months | 4 years 6 months |
INTANGIBLE ASSETS, NET (Detai60
INTANGIBLE ASSETS, NET (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
2,016 | $ 1,200 | |
2,017 | 835 | |
2,018 | 749 | |
2,019 | 354 | |
Thereafter | 886 | |
Finite-Lived Intangible Assets, Net | $ 4,024 | $ 2,996 |
INTANGIBLE ASSETS, NET (Detai61
INTANGIBLE ASSETS, NET (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Amortization of Intangible Assets | $ 1,202 | $ 1,356 | $ 1,193 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Financial assets related to foreign currency derivative hedging contracts | $ 101 | $ 220 |
Marketable securities | 52,774 | 59,227 |
Contingent consideration related to Mailvision | (228) | (443) |
Earn-Out liability related to the acquisition of ACS | (2,109) | |
Total Financial assets (liability) | 50,538 | 59,004 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial assets related to foreign currency derivative hedging contracts | 101 | 220 |
Marketable securities | 52,774 | 59,227 |
Contingent consideration related to Mailvision | 0 | 0 |
Earn-Out liability related to the acquisition of ACS | 0 | |
Total Financial assets (liability) | 52,875 | 59,447 |
Fair Value, Inputs, Level 3 [Member] | ||
Earn-Out liability related to the acquisition of ACS | (2,109) | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial assets related to foreign currency derivative hedging contracts | 0 | 0 |
Marketable securities | 0 | 0 |
Contingent consideration related to Mailvision | (228) | (443) |
Earn-Out liability related to the acquisition of ACS | (2,109) | |
Total Financial assets (liability) | $ (2,337) | $ (443) |
FAIR VALUE MEASUREMENTS (Deta63
FAIR VALUE MEASUREMENTS (Details 1) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Liabilities incurred in relation to the acquisition of ACS | $ (2,109) |
Fair Value, Inputs, Level 3 [Member] | |
Balance at January 1, 2015 | (443) |
Payment of MV Earn Out liability | 233 |
Adjustment due to time change value | (18) |
Liabilities incurred in relation to the acquisition of ACS | (2,109) |
Balance at December 31, 2015 | $ (2,337) |
OTHER PAYABLES AND ACCRUED EX64
OTHER PAYABLES AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Payroll and other employee related accruals | $ 3,474 | $ 3,995 |
Vacation accrual | 2,931 | 2,669 |
Royalties provision | 966 | 929 |
Government authorities | 288 | 468 |
Accrued expenses | 9,864 | 7,146 |
Others | 428 | 551 |
Other Payables And Accrued Expenses | $ 17,951 | $ 15,758 |
SENIOR CONVERTIBLE NOTES (Detai
SENIOR CONVERTIBLE NOTES (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | |||||||
Nov. 30, 2004 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | Nov. 09, 2004 | |
Senior Notes | $ 125,000 | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 2.00% | 2.00% | 2.00% | |||||
Debt Instrument, Repurchased Face Amount | $ 353 | $ 124,650 | $ 124,650 | $ 124,650 | $ 1 | |||
Convertible Notes Payable, Noncurrent | $ 353 | |||||||
Debt Instrument, Maturity Date | Nov. 9, 2024 | |||||||
Rate Of Principal Amount In Redemption Price | 100.00% | |||||||
Rate Of Principal Amount In Repurchase Price | 100.00% | |||||||
Debt Instrument, Convertible, Conversion Ratio | 53.4474 | |||||||
Debt Instrument, Convertible, Conversion Price | $ 18.71 | |||||||
Debt Instrument, Maturity Date Range, Start | Nov. 9, 2014 | |||||||
Debt Instrument, Maturity Date Range, End | Nov. 9, 2019 |
LONG-TERM BANK LOANS (Details T
LONG-TERM BANK LOANS (Details Textual) € in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2004 | Dec. 31, 2015USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2014USD ($) | |
Compensating Bank Deposit Included In Short Term Deposit | $ 2,643 | $ 2,343 | |||
Compensating Bank Deposit Included In Long Term Deposit | 2,910 | 2,553 | |||
Compensating Bank Deposit | $ 5,553 | $ 4,896 | |||
Debt Instrument, Maturity Date | Nov. 9, 2024 | ||||
Loans With Israeli Commercial Banks First Principal [Member] | |||||
Debt Instrument, Interest Rate Terms | LIBOR plus 1%-2.5% | ||||
2015 Loans | |||||
Debt Instrument, Face Amount | $ 3,000 | € 3,000 | |||
Debt Instrument, Frequency of Periodic Payment | 20 equal quarterly installments | ||||
2011 Loans | |||||
Debt Instrument, Face Amount | $ 23,750 | ||||
Debt Instrument, Maturity Date | Sep. 30, 2017 | ||||
2011 Loans | Loans With Israeli Commercial Banks First Principal [Member] | |||||
Debt Instrument, Face Amount | $ 19,850 | ||||
Debt Instrument, Interest Rate During Period | 0.50% | ||||
Debt Instrument, Interest Rate Terms | LIBOR plus 2.1%-4.35% | ||||
Debt Instrument, Frequency of Periodic Payment | 20 equal quarterly installments | ||||
2011 Loans | Loans With Israeli Commercial Banks Second Principal [Member] | |||||
Debt Instrument, Face Amount | $ 3,900 | ||||
Debt Instrument, Frequency of Periodic Payment | 10 equal semiannual payments |
COMMITMENTS AND CONTINGENT LI67
COMMITMENTS AND CONTINGENT LIABILITIES (Details) $ in Thousands | Dec. 31, 2015USD ($) | |
2,016 | $ 6,076 | |
2,017 | 6,637 | |
2,018 | 6,302 | |
2,019 | 5,308 | |
2020 and thereafter | 21,679 | |
Total minimum lease payments | $ 46,002 | [1] |
[1] | Minimum payments have been reduced by minimum sublease rental of $835 due in the future under non-cancelable subleases. |
COMMITMENTS AND CONTINGENT LI68
COMMITMENTS AND CONTINGENT LIABILITIES (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 27, 2016 | Nov. 01, 2013 | |
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals | $ 835 | ||||
Operating Leases, Rent Expense | 5,930 | $ 6,236 | $ 5,282 | ||
Purchase Obligation | $ 12,687 | ||||
Claim relating to Termination Of Employment | $ 600 | ||||
Lease Agreement Expiration Period | 2,024 | ||||
Maximum Amount Of Royalties To Be Paid Out Of Research And Development Grants Received | 100.00% | ||||
Increased Rate Of Royalties Payable As Percentage On Sales | 1.00% | ||||
Subsequent Event [Member] | |||||
Accrued Royalties | $ 999 | ||||
Royalty Agreement Terms [Member] | |||||
Contractual Obligation | $ 45,563 | 39,559 | |||
Accumulated Royalties | $ 4,723 | $ 3,423 | |||
Product Manufacturing in Israel [Member] | Minimum [Member] | |||||
rate Of Royalties Payable As Percentage On Sales | 1.30% | ||||
Product Manufacturing in Israel [Member] | Maximum [Member] | |||||
rate Of Royalties Payable As Percentage On Sales | 5.00% | ||||
Product Manufacturing, Outside of Israel [Member] | |||||
Maximum Amount Of Royalties To Be Paid Out Of Research And Development Grants Received | 300.00% | ||||
Lease Agreements [Member] | |||||
Approximate Amount of Lien by Lessor | $ 1,500 |
EQUITY (Details)
EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding at beginning of year | 3,257,859 | |
Amount of options, Granted | 648,275 | |
Amount of options, Exercised | (128,375) | |
Amount of options, Forfeited | (93,625) | |
Amount of options, Expired | (14,000) | |
Amount of options, Outstanding at end of year | 3,670,134 | 3,257,859 |
Amount of options, Vested and expected to vest | 3,523,329 | |
Amount of options, exercisable at end of year | 1,901,674 | |
Weighted average exercise price, Outstanding at beginning of year | $ 4.23 | |
Weighted average exercise price, Granted | 4.20 | |
Weighted average exercise price, Exercised | 3.07 | |
Weighted average exercise price, Forfeited | 4.42 | |
Weighted average exercise price, Expired | 4.17 | |
Weighted average exercise price, Options outstanding at end of year | 4.25 | $ 4.23 |
Weighted average exercise price, Vested and expected to vest | 4.25 | |
Weighted average exercise price, Option exercisable at end of year | $ 4.06 | |
Weighted average remaining contractual term, Options outstanding (in years) | 4 years 3 months 18 days | 4 years 8 months 12 days |
Weighted average remaining contractual term, Vested and expected to vest (in years) | 4 years 3 months 18 days | |
Weighted average remaining contractual term, Options exercisable at end of year (in years) | 3 years 2 months 12 days | |
Aggregate intrinsic value, Outstanding | $ 1,370 | $ 2,440 |
Aggregate intrinsic value, Vested and expected to vest | 1,315 | |
Aggregate intrinsic value, Options exercisable at end of year | $ 1,004 |
EQUITY (Details 1)
EQUITY (Details 1) - Restricted Stock Units (RSUs) [Member] | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Stockholders' Equity Note [Line Items] | |
Number of shares, Outstanding at beginning of year | shares | 221,004 |
Number of shares, Granted | shares | 174,518 |
Number of shares, Exercised | shares | (93,099) |
Number of shares, Forfeited | shares | (3,500) |
Number of shares, RSUs outstanding at end of year | shares | 298,923 |
Weighted average grant date fair value, Outstanding at beginning of year | $ / shares | $ 4.79 |
Weighted average grant date fair value, Granted | $ / shares | 3.76 |
Weighted average grant date fair value, Exercised | $ / shares | 4.61 |
Weighted average grant date fair value, Forfeited | $ / shares | 4.71 |
Weighted average grant date fair value, RSUs outstanding at end of year | $ / shares | $ 4.25 |
EQUITY (Details 2)
EQUITY (Details 2) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Stockholders' Equity Note [Line Items] | |
Number of shares, Outstanding at beginning of year | shares | 165,000 |
Number of shares, Forfeited | shares | (100,000) |
Number of shares, Warrants outstanding at end of year | shares | 65,000 |
Number of shares, Warrants exercisable at end of year | shares | 31,250 |
Weighted average exercise price, Outstanding at beginning of year | $ / shares | $ 4.65 |
Weighted average exercise price, Forfeited | $ / shares | 4.80 |
Weighted average exercise price, Warrants outstanding at end of year | $ / shares | 4.43 |
Weighted average exercise price, Warrants exercisable at end of year | $ / shares | $ 4.40 |
EQUITY (Details 3)
EQUITY (Details 3) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding | 3,670,134 | 3,257,859 |
Weighted average exercise price | $ 4.25 | $ 4.23 |
Options exercisable | 1,901,674 | |
Weighted average exercise price of exercisable options | $ 4.06 | |
Warrant [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding | 3,735,134 | |
Weighted average remaining contractual life (in years) | 4 years 3 months 18 days | |
Weighted average exercise price | $ 4.26 | |
Options exercisable | 1,932,924 | |
Weighted average exercise price of exercisable options | $ 4.06 | |
Range of Exercise Price 0.00-1.10 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding | 7,000 | |
Weighted average remaining contractual life (in years) | 2 years 11 months 12 days | |
Weighted average exercise price | $ 0 | |
Options exercisable | 5,875 | |
Weighted average exercise price of exercisable options | $ 0 | |
Range of Exercise Price 1.50-2.51 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding | 220,675 | |
Weighted average remaining contractual life (in years) | 2 years 6 months 22 days | |
Weighted average exercise price | $ 2.06 | |
Options exercisable | 166,550 | |
Weighted average exercise price of exercisable options | $ 2.08 | |
Range of Exercise Price 2.57-4.00 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding | 1,438,085 | |
Weighted average remaining contractual life (in years) | 3 years 10 months 10 days | |
Weighted average exercise price | $ 3.25 | |
Options exercisable | 948,159 | |
Weighted average exercise price of exercisable options | $ 3.18 | |
Range of Exercise Price 4.03-6.49 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding | 1,784,843 | |
Weighted average remaining contractual life (in years) | 4 years 10 months 6 days | |
Weighted average exercise price | $ 4.94 | |
Options exercisable | 634,575 | |
Weighted average exercise price of exercisable options | $ 5.11 | |
Range of Exercise Price 6.51-9.24 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding | 284,531 | |
Weighted average remaining contractual life (in years) | 4 years 25 days | |
Weighted average exercise price | $ 6.88 | |
Options exercisable | 177,765 | |
Weighted average exercise price of exercisable options | $ 7.04 |
EQUITY (Details Textual)
EQUITY (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Mar. 10, 2014 | May. 31, 2015 | Nov. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2016 |
Class of Stock [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 2.04 | $ 2.97 | $ 3 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 648,275 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 2,931 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 18 days | ||||||
Stock Repurchase Program, Authorized Amount | $ 3,000 | ||||||
Treasury Stock, Shares | 17,168,127 | 12,405,598 | |||||
Treasury Stock, Value, Acquired, Cost Method | $ 19,523 | $ 5,267 | |||||
Additional Stock Repurchase Program Authorized Amount | $ 15,000 | $ 15,000 | |||||
Stock Issued During Period, Shares, New Issues | 4,025,000 | ||||||
Over-Allotment Option | 525,000 | ||||||
Share Price | $ 8 | ||||||
Proceeds from Issuance of Common Stock | $ 29,744 | 0 | $ 29,744 | $ 0 | |||
Stock Issuance Costs | $ 2,456 | ||||||
Stock Redeemed or Called During Period, Value | $ 60,587 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 3,670,134 | 3,257,859 | |||||
Subsequent Event [Member] | |||||||
Class of Stock [Line Items] | |||||||
Stock Repurchase Program, Authorized Amount | $ 15,000 | ||||||
Share Repurchase Program [Member] | |||||||
Class of Stock [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 4,762,529 | ||||||
Treasury Stock, Value, Acquired, Cost Method | $ 19,523 | ||||||
Performance Based Options [Member] | |||||||
Class of Stock [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 100,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 100,000 | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Class of Stock [Line Items] | |||||||
Allocated Share-based Compensation Expense, Net of Tax | $ 483 | $ 517 | $ 371 | ||||
Employee and non-employee Stock Option Plan [Member] | |||||||
Class of Stock [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,192,345 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 219 | $ 1,870 | $ 2,052 |
TAXES ON INCOME (Details)
TAXES ON INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Domestic | $ 1,007 | $ 1,087 | $ 475 |
Foreign | 2,141 | 2,218 | 2,360 |
Income (loss) before taxes on income | $ 3,148 | $ 3,305 | $ 2,835 |
TAXES ON INCOME (Details 1)
TAXES ON INCOME (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current taxes | $ 806 | $ 451 | $ 542 |
Deferred taxes | 1,976 | 2,940 | (1,946) |
Income Tax Expense (Benefit) | 2,782 | 3,391 | (1,404) |
Domestic | 1,458 | 2,122 | (634) |
Foreign | 1,324 | 1,269 | (770) |
Income Tax Expense (Benefit) | $ 2,782 | $ 3,391 | $ (1,404) |
TAXES ON INCOME (Details 2)
TAXES ON INCOME (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Net operating loss carry-forward | $ 47,646 | $ 48,392 |
Reserves and allowances | 9,682 | 9,780 |
Net deferred tax assets before valuation allowance | 57,328 | 58,172 |
Less - Valuation allowance | (55,112) | (53,980) |
Deferred tax asset | 2,216 | 4,192 |
Deferred tax liability | (557) | 0 |
Net deferred tax asset | 2,216 | 4,192 |
Domestic Tax Authority [Member] | ||
Deferred tax assets: | ||
Net deferred tax asset | 1,141 | 2,232 |
Foreign Tax Authority [Member] | ||
Deferred tax assets: | ||
Deferred tax liability | (557) | 0 |
Net deferred tax asset | $ 1,075 | $ 1,960 |
TAXES ON INCOME (Details 3)
TAXES ON INCOME (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income before taxes, as reported in the consolidated statements of operations | $ 3,148 | $ 3,305 | $ 2,835 |
Statutory tax rate | 26.50% | 26.50% | 25.00% |
Theoretical tax expense on the above amount at the Israeli statutory tax rate | $ 834 | $ 876 | $ 709 |
Income tax at rate other than the Israeli statutory tax rate | 361 | 353 | 310 |
Tax advances, withholding tax and non-deductible expenses, including stock-based compensation expenses | 1,338 | 897 | 518 |
Losses for which a valuation allowance was provided (utilized) | 209 | 1,101 | (2,929) |
Tax adjustment in respect of different tax rates | 0 | 0 | (148) |
State and Federal taxes | 137 | 136 | 163 |
Foreign exchange | 0 | 17 | (20) |
Impairment of tax advances | 0 | 0 | 64 |
Other | (97) | 11 | (71) |
Actual tax expense (benefit) | $ 2,782 | $ 3,391 | $ (1,404) |
TAXES ON INCOME (Details Textua
TAXES ON INCOME (Details Textual) - USD ($) $ in Thousands | Jan. 04, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2010 |
Deferred Tax Assets, Net, Total | $ 2,216 | $ 4,192 | |||
Unrecognized Tax Benefits Excludes Income Tax Penalties And Interest Accrued | 158 | 158 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 7 | 8 | $ 8 | ||
Unrecognized Tax Benefits, Interest on Income Taxes Expense | $ 219 | $ 212 | |||
U S Subsidiaries [Member] | |||||
Operating Loss Carry forwards Expiration Period | expire between 2020 and 2034. | ||||
Operating Loss Carryforwards | $ 75,000 | ||||
Deferred Tax Assets, Net, Total | 1,075 | ||||
State [Member] | |||||
Operating Loss Carryforwards | $ 11,000 | ||||
Year 2014 [Member] | |||||
Percentage Of Amendment Tax Rate | 9.00% | ||||
Thereafter [Member] | |||||
Percentage Of Amendment Tax Rate | 16.00% | ||||
Minimum [Member] | |||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 10.00% | ||||
Maximum [Member] | |||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 25.00% | ||||
Accrued Income Taxes, Current | $ 180 | ||||
Israeli Taxation [Member] | |||||
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 | ||||
Operating Loss Carryforwards | 13,600 | ||||
Deferred Tax Assets, Net, Total | $ 1,141 | ||||
Effective Income Tax Rate Reconciliation, Percent | 26.50% | 26.50% | 25.00% | ||
Israeli Taxation [Member] | Israeli Subsidiaries [Member] | |||||
Operating Loss Carryforwards | $ 66,200 | ||||
Israeli Taxation [Member] | Minimum [Member] | Subsequent Event [Member] | |||||
Effective Income Tax Rate Reconciliation, Percent | 25.00% | ||||
Israeli Taxation [Member] | Maximum [Member] | Subsequent Event [Member] | |||||
Effective Income Tax Rate Reconciliation, Percent | 26.50% |
BASIC AND DILUTED EARNINGS (L79
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Numerator: | |||||
Net income (loss) | $ 366 | $ (86) | $ 4,218 | ||
Denominator: | |||||
Denominator for basic earnings (loss) per share - weighted average number of ordinary shares, net of treasury stock | 40,178,292 | 42,285,919 | 38,241,258 | ||
Effect of dilutive securities: | |||||
Employee stock options, warrants and RSU's | 386,653 | [1] | 855,500 | ||
Senior convertible notes | 0 | [2] | 0 | [1] | |
Denominator for diluted earnings (loss) per share - adjusted weighted average number of shares | 40,564,945 | 42,285,919 | 39,096,758 | ||
[1] | Antidilutive. | ||||
[2] | Insignificant. |
FINANCIAL INCOME (EXPENSES), 80
FINANCIAL INCOME (EXPENSES), NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financial expenses: | |||
Loss related to non-hedging derivative instruments | $ (230) | $ 0 | $ (191) |
Interest | (278) | (415) | (617) |
Amortization of marketable securities premiums and accretion of discounts, net | (1,094) | (820) | (349) |
Exchange rate | 0 | (722) | 0 |
Others | (286) | (205) | (229) |
Financial expenses, Total | (1,888) | (2,162) | (1,386) |
Financial income - | |||
Gain related to non-hedging derivative instruments | 0 | 196 | 0 |
Interest and others | 2,302 | 1,770 | 1,294 |
Exchange rate | 28 | 0 | 188 |
Financial income, Total | 2,330 | 1,966 | 1,482 |
Financial Income, Net | $ 442 | $ (196) | $ 96 |
GEOGRAPHIC INFORMATION (Details
GEOGRAPHIC INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | $ 139,759 | $ 151,579 | $ 137,232 |
Long-Lived Assets | 4,090 | 3,856 | 3,191 |
Americas principally U.S. [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 72,079 | 76,429 | 71,527 |
Long-Lived Assets | 96 | 141 | 147 |
Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 38,873 | 43,989 | 37,310 |
Long-Lived Assets | 79 | 56 | 74 |
Far East [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 22,393 | 23,167 | 20,508 |
Long-Lived Assets | 79 | 83 | 29 |
Israel [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 6,414 | 7,994 | 7,887 |
Long-Lived Assets | $ 3,836 | $ 3,576 | $ 2,941 |
GEOGRAPHIC INFORMATION (Detai82
GEOGRAPHIC INFORMATION (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from External Customers | $ 139,759 | $ 151,579 | $ 137,232 |
Networking [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from External Customers | 123,794 | 131,899 | 115,184 |
Technology [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from External Customers | $ 15,965 | $ 19,680 | $ 22,048 |
DERIVATIVE INSTRUMENTS (Details
DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Gains (losses) recognized in other comprehensive income (loss) (effective portion) | $ 146 | $ 127 | $ (1,303) |
Other Comprehensive Income (Loss) [Member] | |||
Description of Location of Gain (Loss) on Foreign Currency Cash Flow Hedge Derivatives in Financial Statements | Other comprehensive income (loss) | Other comprehensive income (loss) | |
Gains (losses) recognized in other comprehensive income (loss) (effective portion) | $ 146 | $ 127 | |
Other receivables and prepaid expenses [Member] | |||
Description of Location of Foreign Currency Cash Flow Hedge Derivatives on Balance Sheet | Other receivables and prepaid expenses | Other receivables and prepaid expenses | |
Fair value of foreign exchange forward and options collar (cylinder) contracts | $ 291 | $ 446 | |
Other payables and accrued expenses [Member] | |||
Description of Location of Foreign Currency Cash Flow Hedge Derivatives on Balance Sheet | Other payables and accrued expenses | Other payables and accrued expenses | |
Fair value of foreign exchange forward and options collar (cylinder) contracts | $ (189) | $ (319) |
DERIVATIVE INSTRUMENTS (Detai84
DERIVATIVE INSTRUMENTS (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Comprehensive income (loss) from derivatives before reclassifications | $ 374 | $ (367) | $ 1,292 |
Loss (gain) on derivatives (effective portion) recognized in income | $ (228) | $ 494 | $ (2,595) |
Operating Expense [Member] | |||
Description Of Location Of Foreign Currency Cash Flow Hedge Derivatives On Statement Of Operations | Operating expenses | Operating expenses | |
Other Comprehensive Income (Loss) [Member] | |||
Description Of Location Of Foreign Currency Cash Flow Hedge Derivatives On Statement Of Operations | Other comprehensive income (loss) | Other comprehensive income (loss) |
DERIVATIVE INSTRUMENTS (Detai85
DERIVATIVE INSTRUMENTS (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ (230) | $ 196 | $ (191) |
Net Deferred Gain Loss Associated With Cash Flow Hedges Recorded In Other Comprehensive Income | 273 | 127 | |
Derivatives Contracts Outstanding | 18,000 | $ 43,500 | |
Derivative, Forward Contracts Outstanding | $ 6,000 |