DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION | 12 Months Ended |
Dec. 31, 2013 | |
Document And Entity Information [Abstract] | ' |
Document Type | '20-F |
Amendment Flag | 'false |
Document Period End Date | 31-Dec-13 |
Document Fiscal Period Focus | 'FY |
Document Fiscal Year Focus | '2013 |
Entity Registrant Name | 'RADWARE LTD |
Entity Central Index Key | '0001094366 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Accelerated Filer |
Entity Common Stock, Shares Outstanding | 44,733,589 |
Entity Well-known Seasoned Issuer | 'No |
Entity Current Reporting Status | 'Yes |
Entity Voluntary Filers | 'No |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $20,067 | $20,048 |
Available-for-sale marketable securities | 30,372 | 14,004 |
Short-term bank deposits | 84,387 | 54,155 |
Trade receivables (net of allowance for doubtful accounts and sales reserves in a total amount of $ 1,641 and $ 1,150 in 2012 and 2013, respectively) | 24,911 | 18,408 |
Other current assets and prepaid expenses | 6,323 | 3,975 |
Inventories | 14,190 | 12,545 |
Total current assets | 180,250 | 123,135 |
LONG-TERM INVESTMENTS: | ' | ' |
Available-for-sale marketable securities | 113,377 | 121,114 |
Long-term bank deposits | 37,497 | 65,625 |
Severance pay fund | 3,319 | 2,957 |
Total long-term investments | 154,193 | 189,696 |
Property and equipment, net | 17,523 | 13,589 |
Intangible assets, net | 5,070 | 5,128 |
Goodwill | 30,069 | 24,465 |
Other assets | 1,629 | 1,637 |
Total assets | 388,734 | 357,650 |
CURRENT LIABILITIES: | ' | ' |
Trade payables | 8,798 | 9,915 |
Deferred revenues | 38,674 | 36,304 |
Employees and payroll accruals | 8,576 | 6,559 |
Other payables and accrued expenses | 10,656 | 8,354 |
Total current liabilities | 66,704 | 61,132 |
LONG TERM LIABILITIES: | ' | ' |
Deferred revenues | 20,036 | 16,486 |
Other long term liabilities | 7,874 | 8,802 |
Total long term liabilities | 27,910 | 25,288 |
COMMITMENTS AND CONTINGENT LIABILITIES | ' | ' |
Share capital - | ' | ' |
Ordinary shares of NIS 0.05 par value - Authorized: 60,000,000 at December 31, 2012 and 2013; Issued: 47,962,818 and 48,862,060 shares at December 31, 2012 and 2013, respectively; Outstanding: 44,370,904 and 44,733,589 shares at December 31, 2012 and 2013, respectively | 611 | 599 |
Additional paid-in capital | 262,809 | 249,739 |
Treasury stock (3,591,914) and (4,128,471) shares of common stock at December 31, 2012 and 2013, respectively | -25,984 | -18,082 |
Accumulated other comprehensive income | 1,733 | 2,078 |
Retained earnings | 54,951 | 36,896 |
Total shareholders' equity | 294,120 | 271,230 |
Total liabilities and shareholders' equity | $388,734 | $357,650 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | USD ($) | ILS | USD ($) | ILS |
Consolidated Balance Sheets [Abstract] | ' | ' | ' | ' |
Allowance for doubtful accounts receivable, current and sales reserves | $1,150 | ' | $1,641 | ' |
Ordinary shares, par value | ' | 0.05 | ' | 0.05 |
Ordinary shares, shares authorized | 60,000,000 | 60,000,000 | 60,000,000 | 60,000,000 |
Ordinary shares, shares issued | 48,862,060 | 48,862,060 | 47,962,818 | 47,962,818 |
Ordinary shares, shares outstanding | 44,733,589 | 44,733,589 | 44,370,904 | 44,370,904 |
Treasury stock, shares | 4,128,471 | 4,128,471 | 3,591,914 | 3,591,914 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues: | ' | ' | ' |
Products | $118,727 | $119,279 | $103,285 |
Services | 74,270 | 69,892 | 63,735 |
Total revenues | 192,997 | 189,171 | 167,020 |
Cost of revenues: | ' | ' | ' |
Products | 27,066 | 26,386 | 24,231 |
Services | 9,669 | 9,333 | 9,126 |
Total cost of revenues | 36,735 | 35,719 | 33,357 |
Gross profit | 156,262 | 153,452 | 133,663 |
Operating expenses: | ' | ' | ' |
Research and development, net | 40,983 | 36,187 | 36,064 |
Sales and marketing | 82,815 | 76,646 | 69,543 |
General and administrative | 14,895 | 9,696 | 9,629 |
Total operating expenses | 138,693 | 122,529 | 115,236 |
Operating income | 17,569 | 30,923 | 18,427 |
Financial income, net | 4,494 | 4,792 | 4,200 |
Income before taxes on income | 22,063 | 35,715 | 22,627 |
Taxes on income | 4,008 | 3,958 | 1,290 |
Net income | $18,055 | $31,757 | $21,337 |
Basic net earnings per share | $0.40 | $0.73 | $0.51 |
Diluted net earnings per share | $0.39 | $0.68 | $0.47 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Statements Of Comprehensive Income [Abstract] | ' | ' | ' |
Net Income | $18,055 | $31,757 | $21,337 |
Unrealized gains (losses) on available-for-sale securities | ' | ' | ' |
Changes in unrealized gains | -221 | 4,455 | -1,788 |
Less: reclassification adjustments for gains included in net income | -124 | -21 | ' |
Other comprehensive income (loss) before tax | -345 | 4,434 | -1,788 |
Income tax expense related to components of other comprehensive income | ' | -693 | ' |
Other comprehensive income (loss), net of tax | -345 | 3,741 | -1,788 |
Comprehensive income | $17,710 | $35,498 | $19,549 |
STATEMENTS_OF_CHANGES_IN_SHARE
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Share capital [Member] | Additional paid-in capital [Member] | Treasury stock, at cost [Member] | Accumulated other comprehensive income [Member] | Retained earnings (accumulated deficit) [Member] |
In Thousands, except Share data | ||||||
Balance at Dec. 31, 2010 | $184,990 | $552 | $218,593 | ($18,082) | $125 | ($16,198) |
Balance, shares at Dec. 31, 2010 | ' | 40,921,146 | ' | ' | ' | ' |
Issuance of shares upon exercise of stock options | 8,534 | 22 | 8,512 | ' | ' | ' |
Issuance of shares upon exercise of stock options, shares | ' | 1,579,454 | ' | ' | ' | ' |
Stock based compensation | 5,458 | ' | 5,458 | ' | ' | ' |
Tax benefit related to exercise of stock options | 790 | ' | 790 | ' | ' | ' |
Other comprehensive income (loss), net of tax | -1,788 | ' | ' | ' | -1,788 | ' |
Net income | 21,337 | ' | ' | ' | ' | 21,337 |
Balance at Dec. 31, 2011 | 219,321 | 574 | 233,353 | -18,082 | -1,663 | 5,139 |
Balance, shares at Dec. 31, 2011 | ' | 42,500,600 | ' | ' | ' | ' |
Issuance of shares upon exercise of stock options | 10,656 | 25 | 10,631 | ' | ' | ' |
Issuance of shares upon exercise of stock options, shares | ' | 1,870,304 | ' | ' | ' | ' |
Stock based compensation | 5,383 | ' | 5,383 | ' | ' | ' |
Tax benefit related to exercise of stock options | 372 | ' | 372 | ' | ' | ' |
Other comprehensive income (loss), net of tax | 3,741 | ' | ' | ' | 3,741 | ' |
Net income | 31,757 | ' | ' | ' | ' | 31,757 |
Balance at Dec. 31, 2012 | 271,230 | 599 | 249,739 | -18,082 | 2,078 | 36,896 |
Balance, shares at Dec. 31, 2012 | 44,370,904 | 44,370,904 | ' | ' | ' | ' |
Repurchase of shares | -7,902 | ' | ' | -7,902 | ' | ' |
Repurchase of shares, shares | ' | -536,557 | ' | ' | ' | ' |
Issuance of shares upon exercise of stock options | 5,522 | 12 | 5,510 | ' | ' | ' |
Issuance of shares upon exercise of stock options, shares | ' | 899,242 | ' | ' | ' | ' |
Stock based compensation | 5,374 | ' | 5,374 | ' | ' | ' |
Tax benefit related to exercise of stock options | 2,186 | ' | 2,186 | ' | ' | ' |
Other comprehensive income (loss), net of tax | -345 | ' | ' | ' | -345 | ' |
Net income | 18,055 | ' | ' | ' | ' | 18,055 |
Balance at Dec. 31, 2013 | 294,120 | 611 | 262,809 | -25,984 | 1,733 | 54,951 |
Balance, shares at Dec. 31, 2013 | 44,733,589 | 44,733,589 | ' | ' | ' | ' |
Balance at Mar. 31, 2013 | ' | ' | ' | ' | ' | ' |
Repurchase of shares, shares | ' | ' | ' | -536,557 | ' | ' |
Balance at Dec. 31, 2013 | ' | ' | ' | ($25,984) | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $18,055 | $31,757 | $21,337 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 8,086 | 9,867 | 10,299 |
Stock based compensation | 5,374 | 5,383 | 5,458 |
Gain from sale of available-for-sale marketable securities | -124 | -21 | ' |
Amortization of premiums, accretion of discounts and accrued interest on available-for-sale marketable securities, net | 2,326 | 2,198 | 3,652 |
Accrued interest on bank deposits | -813 | -354 | -243 |
Decrease in accrued severance pay, net | -74 | -165 | -59 |
Changes in deferred income taxes, net | -699 | -1,584 | -1,358 |
Decrease (increase) in trade receivables, net | -6,356 | -5,843 | 3,978 |
Decrease (increase) in other current assets and prepaid expenses | -276 | -1 | 772 |
Decrease (increase) in inventories | -1,569 | -398 | -2,425 |
Increase (decrease) in trade payables | -1,231 | 4,816 | -814 |
Increase in deferred revenues | 5,920 | 296 | 977 |
Increase in other payables and accrued expenses and other long-term liabilities | 3,767 | 5,941 | 1,206 |
Excess tax benefit from stock-based compensation | -2,186 | -372 | -790 |
Net cash provided by operating activities | 30,200 | 51,520 | 41,990 |
Cash flows from investing activities: | ' | ' | ' |
Purchase of property and equipment | -8,712 | -9,337 | -5,734 |
Investment in other long-term assets | 11 | -13 | -35 |
Investment in bank deposits, net | -1,290 | -30,653 | -32,089 |
Purchase of available-for-sale marketable securities | -35,149 | -32,066 | -68,777 |
Proceeds from redemption and maturity of available-for-sale marketable securities | 23,279 | 12,183 | 57,423 |
Payment for acquisition of subsidiary, net of cash acquired | -8,126 | ' | ' |
Net cash used in investing activities | -29,987 | -59,886 | -49,212 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from exercise of stock options | 5,522 | 10,656 | 8,534 |
Excess tax benefit from stock-based compensation | 2,186 | 372 | 790 |
Repurchase of shares | -7,902 | ' | ' |
Net cash provided (used) by financing activities | -194 | 11,028 | 9,324 |
Increase (decrease) in cash and cash equivalents | 19 | 2,662 | 2,102 |
Cash and cash equivalents at the beginning of the year | 20,048 | 17,386 | 15,284 |
Cash and cash equivalents at the end of the year | 20,067 | 20,048 | 17,386 |
Supplemental disclosure of cash flow information: | ' | ' | ' |
Cash paid during the year for income taxes | $3,861 | $967 | $847 |
GENERAL
GENERAL | 12 Months Ended | ||
Dec. 31, 2013 | |||
GENERAL [Abstract] | ' | ||
GENERAL | ' | ||
NOTE 1:- | GENERAL | ||
a. | Radware Ltd. ("the Company"), an Israeli corporation commenced operations in April 1997. The Company and its subsidiaries ("the Group") are engaged in the development, manufacture and sale of Application Delivery and Application Security solutions that provide end-to-end availability, performance and security of business-critical network applications. The Company's products are marketed worldwide. | ||
b. | The Company has established wholly-owned subsidiaries in the United States, France, Germany, Singapore, the United Kingdom, Japan, Korea, Canada, India, Australia Italy and China. The Company holds 91.0% of its Israeli subsidiary. In addition, the Company has established representative offices in China and Taiwan. The Company's subsidiaries are engaged primarily in sales, marketing and support activities, except for the Israeli subsidiary which is engaged primarily in real-time consumer applications across the web. The Israeli subsidiary's operations were immaterial for the years ended December 31, 2011, 2012 and 2013. | ||
c. | The Company depends on four major suppliers to supply certain components for the production of its products. If one of these suppliers fails to deliver or delays the delivery of the necessary components, the Company will be required to seek alternative sources of supply. A change in suppliers could result in manufacturing delays, which could cause a possible loss of sales and, consequently, could adversely affect the Company's results of operations and financial position. | ||
d. | On April 12, 2013, the Company effected a stock split of its Ordinary shares of two for one (2:1) and accordingly the par value of the Ordinary shares has changed from NIS 0.1 to NIS 0.05 per share. The earnings per share figures or results, stock options activity and share data presented for all periods were adjusted to reflect the stock split. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ||||||||||||
SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||||
NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"). | |||||||||||||
a. | Use of estimates: | ||||||||||||
The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates, judgments and assumptions. The Company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||
On an ongoing basis, the Company's management evaluates estimates, including those related to fair values and useful lives of intangible assets, tax assets and liabilities, fair values of stock-based awards, as well as in estimates used in applying the revenue recognition policy related to separation of multiple elements. Such estimates are based on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. | |||||||||||||
b. | Financial statements in United States dollars: | ||||||||||||
A majority of the revenues of the Company and its subsidiaries are denominated in U.S. dollars ("dollar" or "dollars"). In addition, a substantial portion of the Company's and certain of its subsidiaries' costs are denominated in dollars. The Company's management believes that the dollar is the primary currency of the economic environment in which the Company and its subsidiaries operate. Thus, the functional and reporting currency of the Company and its subsidiaries is the dollar. Accordingly, monetary accounts maintained in currencies other than the dollar are re-measured into U.S. dollars in accordance with Accounting Standards Codification ("ASC") No. 830 "Foreign Currency Matters". Changes in currency exchange rates between the Company's functional currency and the currency in which a transaction is denominated are included in the Company's results of operations as financial income (expense) in the period in which the currency exchange rates change. | |||||||||||||
c. | Principles of consolidation: | ||||||||||||
The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions including profits from intercompany sales not yet realized outside the Group, have been eliminated upon consolidation. | |||||||||||||
d. | Cash equivalents: | ||||||||||||
Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less, at acquisition. | |||||||||||||
e. | Bank deposits: | ||||||||||||
Bank deposits with maturities of more than three months but less than one year are included in short-term deposits. Such short-term deposits are stated at cost which approximates market values. | |||||||||||||
Bank deposits with maturities of more than one year are included in long-term deposits. Deposits as of December 31, 2013 do not have contractual maturities that exceed two years. Such long-term deposits are stated at cost which approximates market values. | |||||||||||||
f. | Investment in marketable securities: | ||||||||||||
The Company accounts for investments in marketable debt securities in accordance with ACS No. 320, "Investments- Debt and equity Securities". Management determines the appropriate classification of its investments in debt securities at the time of purchase and reevaluates such determinations at each balance sheet date. | |||||||||||||
The Company classified all of its debt securities as available-for-sale securities. Available-for-sale securities are carried at fair value, with the unrealized gains and losses reported in "accumulated other comprehensive income (loss)" in shareholders' equity. Realized gains and losses on sales of investments are included in financial income, 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 and dividends on securities are included in financial income, net. | |||||||||||||
The Company recognizes an impairment charge when a decline in the fair value of its investments below the cost basis is judged to be other-than-temporary. The factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Company's intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. For securities that are deemed other-than-temporarily impaired, the amount of impairment recognized in the statement of income (operations) is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income. During the years 2011, 2012 and 2013, the Company did not record any other-than-temporary impairment loss with respect to its marketable securities. | |||||||||||||
g. | Inventories: | ||||||||||||
Inventories are stated at the lower of cost or market value. Inventory write-off is provided to cover risks arising from slow-moving items, technological obsolescence, excess inventories and discontinued products. Inventory write-off totaled $ 1,205, $ 1,147 and $ 464 in 2011, 2012 and 2013, respectively, and has been included in cost of revenues. | |||||||||||||
Cost is determined as follows: | |||||||||||||
Raw materials and components - using the "first-in, first-out" method. | |||||||||||||
Work-in-progress and finished products - raw materials as above with the addition of subcontracting costs - calculated on the basis of direct subcontractors costs and with direct overhead costs. | |||||||||||||
h. | Property and equipment: | ||||||||||||
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets at the following annual rates: | |||||||||||||
% | |||||||||||||
Computer, peripheral equipment and software | 15 - 33 (mainly 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 | |||||||||||||
i. | Impairment of long lived assets and intangible assets subject to amortization: | ||||||||||||
Property and equipment and intangible assets subject to amortization are reviewed for impairment in accordance with ASC No. 360, "Accounting for the Impairment or Disposal of Long-Lived Assets," whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. | |||||||||||||
Intangible assets acquired in a business combination are recorded at fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets that are not considered to have an indefinite useful life are amortized over their estimated useful lives, which range from 1 to 10 years. Some of the acquired customer arrangements are amortized over their estimated useful lives in proportion to the economic benefits realized. This accounting policy results in accelerated amortization of such customer arrangements as compared to the straight-line method. All other intangible assets are amortized over their estimated useful lives on a straight-line basis. | |||||||||||||
During 2011, 2012 and 2013, no impairment losses were recorded. | |||||||||||||
j. | Goodwill: | ||||||||||||
Goodwill represents the excess of the purchase price in a business combination over the fair value of the net tangible and intangible assets acquired. Under ASC 350, goodwill is not amortized, but rather is subject to an annual impairment test. | |||||||||||||
ASC 350 requires goodwill to be tested for impairment at least annually or between annual tests in certain circumstances, and written down when impaired. Goodwill is tested for impairment by comparing the fair value of the reporting unit with its carrying value. | |||||||||||||
In September 2011, the Financial Accounting Standards Board, or FASB issued ASU 2011-08, Testing Goodwill for Impairment, codified in ASC 350 "Intangibles - Goodwill and Other". The revised accounting standard update intended to simplify how an entity tests goodwill for impairment. The amendment allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. An entity is no longer required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. The Company chose not to adopt the new guidance in 2013. | |||||||||||||
In accordance with ASC No. 350 the Company performs an annual impairment test at December 31 each year. The first step, identifying a potential impairment, compares the fair value of the reporting unit with its carrying amount. If the carrying amount exceeds its fair value, the second step would need to be performed; otherwise, no further step is required. The second step, measuring the impairment loss, compares the implied fair value of the goodwill with the carrying amount of the goodwill. Any excess of the goodwill carrying amount over the applied fair value is recognized as an impairment loss, and the carrying value of goodwill is written down to fair value. During the years ended December 31, 2011, 2012 and 2013, no impairment losses were recorded. | |||||||||||||
k. | Revenue recognition: | ||||||||||||
The Company and its subsidiaries generate revenues mainly from selling their products and from post-contract customer support, which are sold primarily through distributors and resellers, all of which are considered end-users. | |||||||||||||
Revenues from product sales are recognized in accordance with ASC No. 605, "Revenue Recognition" when delivery has occurred, persuasive evidence of an agreement exists, the vendor's fee is fixed or determinable, and collectability is reasonably assured. | |||||||||||||
Revenue derived from post-contract customer support, which represents mainly software updates, help desk support, unit replacement or repair, and security update service is recognized ratably over the contract period, which is typically between one year and five years. | |||||||||||||
Revenues in arrangements with multiple deliverables are allocated using the relative selling price method. The Company determines the best estimated selling price ("BESP") in multiple-element arrangements as follows: | |||||||||||||
VSOE for post-contract customer support is determined based on the price charged when such element is sold separately (renewals). The price may vary in the territories and vertical markets in which the Company conducts business. Price is determined by using a consistent percentage of the Company's product price lists, in the same territories and markets. | |||||||||||||
For the product, the Company determines the BESP based on management estimated selling price by considering several external and internal factors including, but not limited to, pricing practices including discounting, margin objectives, and competition. The determination of estimated selling price ("ESP") is made through consultation with and approval of management, taking into consideration the pricing model and go-to-market strategy. | |||||||||||||
The Company records a provision for estimated sale returns and stock rotation granted to customers on products in the same period the related revenues are recorded in accordance with ASC No. 605. These estimates are based on historical sales returns, stock rotations and other known factors. Such provisions amounted to $ 1,071 and $ 914 as of December 31, 2012 and 2013, respectively. | |||||||||||||
Deferred revenues include unearned amounts received under post-contract customer support, and classified in short and long term based on their contractual term. | |||||||||||||
l. | Shipping and Handling: | ||||||||||||
Shipping and handling fees charged to the Company's customers are recognized as product revenue in the period shipped and the related costs for providing these services are recorded as a cost of sale. | |||||||||||||
m. | Cost of revenues: | ||||||||||||
Cost of products is comprised of cost of software and hardware production, manuals, packaging, license fees paid to third parties and amortization of acquired technology. | |||||||||||||
Cost of services is comprised of cost of post sale customer support. | |||||||||||||
n. | Warranty costs: | ||||||||||||
The Company generally provides a one year warranty for all of its products. A provision is recorded for estimated warranty costs at the time revenues are recognized based on the Company's experience. Warranty expenses for the years ended December 31, 2011, 2012 and 2013 were immaterial. | |||||||||||||
o. | Research and development expenses: | ||||||||||||
Research and development expenses are charged to the statement of income, as incurred. | |||||||||||||
p. | Grants: | ||||||||||||
Starting 2012 the Company received non-royalty-bearing grants from the Government of Israel for approved research and development projects. These grants are recognized at the time the Company is entitled to such grants on the basis of the costs incurred as provided by the relevant agreement and included as a deduction from research and development expenses. | |||||||||||||
Research and development grants deducted from research and development expenses amounted to $ 264 and $ 369 in 2012 and 2013, respectively. | |||||||||||||
q. | Accounting for stock-based compensation: | ||||||||||||
The Company accounts for stock-based compensation in accordance with ASC No. 718, "Compensation-Stock Compensation". ASC No. 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company's consolidated statement of income. | |||||||||||||
The Company recognizes compensation expenses for the value of its awards based on the accelerated attribution method over the requisite service period of each of the awards, net of estimated forfeitures. ASC No. 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. | |||||||||||||
ASC No. 718 requires the cash flows resulting from the tax deductions in excess of the compensation costs recognized for those stock options to be classified as financing cash flows. | |||||||||||||
The Company selected the Black-Scholes-Merton option pricing model to account for the fair value of its stock-options awards with only service conditions and whereas the fair value of the restricted stocks awards is based on the market value of the underlying shares at the date of grant. The option-pricing model requires a number of assumptions, of which the most significant are the expected stock price volatility and the expected option term. Expected volatility was calculated based upon actual historical stock price movements over an historical period equivalent to the option's expected term. The expected option term represents the period of time that options granted are expected to be outstanding. Expected term of options granted is based upon historical experience. The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent term. The Company has historically not paid dividends and has no foreseeable plans to pay dividends. | |||||||||||||
The fair value of the Company's stock options granted to employees, consultants and directors for the years ended December 31, 2011, 2012 and 2013 was estimated using the following weighted average assumptions: | |||||||||||||
Employees stock option plan: | |||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Risk free interest rate | 0.99 | % | 0.46 | % | 0.81 | % | |||||||
Dividend yields | 0 | % | 0 | % | 0 | % | |||||||
Expected volatility | 47 | % | 47 | % | 44 | % | |||||||
Weighted average expected term from grant date (in years) | 3.79 | 3.67 | 3.93 | ||||||||||
r. | Income taxes: | ||||||||||||
The Company accounts for income taxes in accordance with ASC No. 740, "Income Taxes". This statement prescribes the use of the liability method whereby deferred tax assets and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company and its subsidiaries provide a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value if it is more likely than not that a portion or all of the deferred tax assets will not be realized. | |||||||||||||
Deferred tax liabilities and assets are classified as current or noncurrent based on the classification of the related asset or liability for financial reporting, or according to the expected reversal dates of the specific temporary differences if not related to an asset or liability for financial reporting. | |||||||||||||
ASC 740 contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company accrues interest and penalty, if any related to unrecognized tax benefits in its taxes on income. | |||||||||||||
s. | Concentrations of credit risks: | ||||||||||||
Financial instruments that potentially subject the Company and its subsidiaries to concentrations of credit risk consist principally of cash and cash equivalents, bank deposits, available-for-sale marketable securities and trade receivables. | |||||||||||||
The majority of the Company's and its subsidiaries' cash and cash equivalents and bank deposits are invested in major banks in Israel and the U.S. Deposits in the U.S. may be in excess of insured limits and are not insured in other jurisdictions. Generally, these cash equivalents may be redeemed upon demand and, therefore management believes that it bears a lower risk. The short term and long term bank deposits are held in financial institutions which management believes are institutions with high credit standing, and accordingly, minimal credit risk from geographic or credit concentration exists with respect to these bank deposits. As of December 31, 2013, 60% of the Company's short-term and long-term bank deposits were deposited in major Israeli banks in Israel which are rated AA+, as determined by the Israeli affiliate of S&P, and 40% were deposited in the U.S. branch of another major Israeli bank which is also rated AA+, as determined by the Israeli affiliate of S&P. | |||||||||||||
As of December 31, 2013, the maximal contractual duration of any of the Company's bank deposits was 2 years, the weighted average duration of the Company's deposits was 1.8 years, and the weighted average time to maturity was slightly less than a year. | |||||||||||||
The Company's marketable securities include investments in foreign banks and government debentures and in corporate debentures. The financial institutions that hold the Company's marketable securities are major U.S. financial institutions, located in the United States. Management believes that, the Company's marketable securities portfolio is a diverse portfolio of highly-rated securities and the Company's investment policy limits the amount the Company may invest in each issuer, and accordingly, minimal credit risk exists from geographic or credit concentration with respect to these securities. As of December 31, 2013, 54% of the Company's marketable securities portfolio was invested in debt securities of financial institutions, 6% in debt securities of governmental institutions and 40% in debt securities of Corporations. No more than 2% of the Company's total investments portfolio was invested in debt securities of one issuer. From geographic prospective, 54% of the Company's marketable securities portfolio was invested in debt securities of U.S. issuers, 26% was invested in debt securities of European issuers and 20% was invested in debt securities of other geographic-located issuers. As of December 31, 2013, 95% of our marketable securities portfolio was rated A- or higher, as determined by S&P, and 5% was rated BBB or BBB+. | |||||||||||||
The trade receivables of the Company and its subsidiaries are mainly derived from sales to customers located primarily in the United States, Europe, the Middle East, Africa and Asia Pacific. The Company performs ongoing credit evaluations of its customers. An allowance for doubtful accounts is determined with respect to those amounts that the Company has determined to be doubtful of collection. In certain circumstances, the Company may require from its customers letters of credit, other collateral or additional guarantees. Bad debt expenses for the years ended December 31, 2011, 2012 and 2013 were $ 0, $ 0 and $ 200, respectively. Total write offs during 2011, 2012 and 2013 amounted to $ 200, $ 7 and $ 534, respectively. | |||||||||||||
t. | Severance pay: | ||||||||||||
The Company's liability for severance pay for periods prior to April 1, 2007 is calculated pursuant to Israeli severance pay law based on the most recent salary of the employees multiplied by the number of years of employment as of the balance sheet date. The Company recorded as expenses the increase in the severance liability, net of earnings (losses) from the related investment fund. Employees were entitled to one month's salary for each year of employment, or a portion thereof. Until April 1, 2007, the Company's liability was partially funded by monthly payments deposited with insurers; any unfunded amounts would be paid from operating funds and are covered by a provision established by the Company. | |||||||||||||
The carrying value of the deposited funds for the Company's employees' severance pay for employment periods prior to April 1, 2007 include profits and losses accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israeli severance pay law or labor agreements. | |||||||||||||
Effective April 1, 2007, the Company's agreements with employees in Israel are in accordance with section 14 of the Severance Pay Law - 1963 which provide that the Company's contributions to severance pay fund shall cover its entire severance obligation with respect to period of employment subsequent to April 1, 2007. Upon termination, the release of the contributed amounts from the fund to the employee shall relieve the Company from any further severance obligation and no additional payments shall be made by the Company to the employee. As a result, the related obligation and amounts deposited on behalf of such obligation are not stated on the balance sheet, as the Company is legally released from severance obligation to employees once the amounts have been deposited, and the Company has no further legal ownership on the amounts deposited. Consequently, effective from April 1, 2007, the Company increased its contribution to the deposited funds to cover the full amount of the employees' salaries. | |||||||||||||
Severance pay expenses for the years ended December 31, 2011, 2012 and 2013 amounted to approximately $ 2,244, $ 1,945 and $ 2,293, respectively. Accrued severance pay is included in other long term liabilities in the Balance sheet. | |||||||||||||
u. | Fair value of financial instruments: | ||||||||||||
The Company measures its cash equivalents and marketable securities at fair value. 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. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for 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 | - | Include other inputs that are directly or indirectly observable in the marketplace. | |||||||||||
Level 3 | - | Unobservable inputs which are supported by little or no market activity. | |||||||||||
v. | Comprehensive income: | ||||||||||||
The Company accounts for comprehensive income in accordance with ASC No. 220, "Comprehensive Income." This statement establishes standards for the reporting and display of comprehensive income and its components in a full set of general purpose financial statements. Comprehensive income generally represents all changes in stockholders' equity during the period except those resulting from investments by, or distributions to, stockholders. The Company determined that its only item of other comprehensive income relate to available for sale marketable securities adjustment. | |||||||||||||
w. | Treasury stock: | ||||||||||||
The Company repurchases its Ordinary shares from time to time on 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. The voting rights attached to treasury stock are revoked. | |||||||||||||
x. | Basic and diluted net income per share: | ||||||||||||
Basic net income per share is computed based on the weighted average number of Ordinary shares outstanding during each period. Diluted net income per share is computed based on the weighted average number of Ordinary shares outstanding during each period, plus dilutive potential Ordinary shares considered outstanding during the period, in accordance with ASC No. 260, "Earnings Per Share". | |||||||||||||
The total number of shares related to outstanding options excluded from the calculation of diluted income per share as they would have been anti dilutive was 2,263,600, 1,902,200 and 2,735,095 for the years ended December 31, 2011, 2012 and 2013, respectively. | |||||||||||||
y. | Business combinations: | ||||||||||||
The Company accounted for business combination in accordance with ASC No. 805, "Business Combinations". ASC No. 805 requires recognition of assets acquired, liabilities assumed, and any non-controlling interest at the acquisition date, measured at their fair values as of that date. Any excess of the fair value of net assets acquired over purchase price and any subsequent changes in estimated contingencies are to be recorded in earnings. In addition, changes in valuation allowance related to acquired deferred tax assets and in acquired income tax position are to be recognized in earnings. | |||||||||||||
z. | Recalssifications: | ||||||||||||
Certain amounts in prior years' financial statements have been reclassified to conform to the current year's presentation. An amount of $ 5,388 related to uncertain tax positions was reclassified from other payables and accrued expenses to other long-term liabilities. The reclassification had no effect on previously reported net income or shareholders' equity | |||||||||||||
MARKETABLE_SECURITIES
MARKETABLE SECURITIES | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
MARKETABLE SECURITIES [Abstract] | ' | ||||||||||||||||||||||||||||||||
MARKETABLE SECURITIES | ' | ||||||||||||||||||||||||||||||||
NOTE 3:- | MARKETABLE SECURITIES | ||||||||||||||||||||||||||||||||
Marketable securities with contractual maturities of less than one year are as follows: | |||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
2012 | 2013 | ||||||||||||||||||||||||||||||||
Amortized | Gross unrealized | Gross unrealized | Market | Amortized | Gross unrealized | Gross unrealized | Market | ||||||||||||||||||||||||||
cost | losses | gains | value | cost | losses | gains | Value | ||||||||||||||||||||||||||
Foreign banks and government debentures | $ | 8,312 | $ | (4 | ) | $ | 36 | $ | 8,344 | $ | 22,260 | $ | - | $ | 223 | $ | 22,483 | ||||||||||||||||
Corporate debentures | 5,590 | - | 70 | 5,660 | 7,848 | - | 41 | 7,889 | |||||||||||||||||||||||||
Total available-for-sale marketable securities | $ | 13,902 | $ | (4 | ) | $ | 106 | $ | 14,004 | $ | 30,108 | $ | - | $ | 264 | $ | 30,372 | ||||||||||||||||
Marketable securities with contractual maturities from one to three years are as follows: | |||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
2012 | 2013 | ||||||||||||||||||||||||||||||||
Amortized | Gross unrealized | Gross unrealized | Market | Amortized | Gross unrealized | Gross unrealized | Market | ||||||||||||||||||||||||||
cost | losses | gains | value | cost | Losses | gains | Value | ||||||||||||||||||||||||||
Foreign banks and government debentures | $ | 49,673 | $ | (3 | ) | $ | 1,233 | $ | 50,903 | $ | 37,599 | $ | (43 | ) | $ | 1,132 | $ | 38,688 | |||||||||||||||
Corporate debentures | 19,278 | - | 402 | 19,680 | 22,652 | (7 | ) | 481 | 23,126 | ||||||||||||||||||||||||
Total available-for-sale marketable securities | $ | 68,951 | $ | (3 | ) | $ | 1,635 | $ | 70,583 | $ | 60,251 | $ | (50 | ) | $ | 1,613 | $ | 61,814 | |||||||||||||||
Marketable securities with contractual maturities of more than three years are as follows: | |||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
2012 | 2013 | ||||||||||||||||||||||||||||||||
Amortized | Gross unrealized | Gross unrealized | Market | Amortized | Gross unrealized | Gross unrealized | Market | ||||||||||||||||||||||||||
cost | losses | gains | value | cost | Losses | gains | Value | ||||||||||||||||||||||||||
Foreign banks and government debentures | $ | 27,287 | $ | (38 | ) | $ | 813 | $ | 28,062 | $ | 27,458 | $ | (176 | ) | $ | 248 | $ | 27,530 | |||||||||||||||
Corporate debentures | 22,207 | (102 | ) | 364 | 22,469 | 24,198 | (182 | ) | 17 | 24,033 | |||||||||||||||||||||||
Total available-for-sale marketable securities | $ | 49,494 | $ | (140 | ) | $ | 1,177 | $ | 50,531 | $ | 51,656 | $ | (358 | ) | $ | 265 | $ | 51,563 | |||||||||||||||
Investments with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values as of December 31, 2013 were as follows: | |||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
Investments with continuous unrealized losses for less than 12 months | Investments with continuous unrealized losses for 12 months or greater | Total investments with continuous unrealized losses | |||||||||||||||||||||||||||||||
Fair | Unrealized losses | Fair | unrealized losses | Fair | unrealized losses | ||||||||||||||||||||||||||||
value | value | value | |||||||||||||||||||||||||||||||
Foreign banks and government debentures | $ | 17,981 | $ | (209 | ) | $ | 1,496 | $ | (10 | ) | $ | 19,477 | $ | (219 | ) | ||||||||||||||||||
Corporate debentures | 19,590 | (189 | ) | - | - | 19,590 | (189 | ) | |||||||||||||||||||||||||
Total available-for-sale marketable securities | $ | 37,571 | $ | (398 | ) | $ | 1,496 | $ | (10 | ) | $ | 39,067 | $ | (408 | ) | ||||||||||||||||||
As of December 31, 2013 the Company had one investment with continuous unrealized loss from more than 12 months. | |||||||||||||||||||||||||||||||||
As of December 31, 2012 and 2013, interest receivable amounted to $ 1,490 and $ 1,511, respectively, and is included within available for sale marketable securities in the balance sheets. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | ' | ||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||||||||
NOTE 4:- | FAIR VALUE MEASUREMENTS | ||||||||||||||||
In accordance with ASC 820, the Company measures its cash equivalents and available for sale marketable securities at fair value on recurring basis. Cash equivalents and marketable securities are classified within Level 1 or Level 2. This is because these assets are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. | |||||||||||||||||
The Company's financial assets measured at fair value on a recurring basis, including interest receivable components consisted of the following types of instruments as of December 31, 2013 and 2012: | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
Fair value measurements using input type | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 79 | $ | - | $ | - | $ | 79 | |||||||||
Available-for-sale: | |||||||||||||||||
Foreign banks and government debentures | - | 88,701 | - | 88,701 | |||||||||||||
Corporate debentures | - | 55,048 | - | 55,048 | |||||||||||||
Total financial assets | $ | 79 | $ | 143,749 | $ | - | $ | 143,828 | |||||||||
31-Dec-12 | |||||||||||||||||
Fair value measurements using input type | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 701 | $ | - | $ | - | $ | 701 | |||||||||
Available-for-sale: | |||||||||||||||||
Foreign banks and government debentures | - | 87,309 | - | 87,309 | |||||||||||||
Corporate debentures | - | 47,809 | - | 47,809 | |||||||||||||
Total financial assets | $ | 701 | $ | 135,118 | $ | - | $ | 135,819 |
INVENTORIES
INVENTORIES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
INVENTORIES [Abstract] | ' | ||||||||
INVENTORIES | ' | ||||||||
NOTE 5:- | INVENTORIES | ||||||||
Inventories are comprised of the following: | |||||||||
December 31, | |||||||||
2012 | 2013 | ||||||||
Raw materials and components | $ | 1,725 | $ | 1,802 | |||||
Work-in-progress | 1,479 | 784 | |||||||
Finished products (*) | 9,341 | 11,604 | |||||||
$ | 12,545 | $ | 14,190 |
PROPERTY_AND_EQUIPMENT_NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
PROPERTY AND EQUIPMENT, NET [Abstract] | ' | ||||||||
PROPERTY AND EQUIPMENT, NET | ' | ||||||||
NOTE 6:- PROPERTY AND EQUIPMENT, NET | |||||||||
December 31, | |||||||||
2012 | 2013 | ||||||||
Cost: | |||||||||
Computer, peripheral equipment and software | $ | 48,182 | $ | 55,914 | |||||
Office furniture and equipment | 4,619 | 6,094 | |||||||
Leasehold improvements | 2,494 | 2,601 | |||||||
55,295 | 64,609 | ||||||||
Accumulated depreciation: | |||||||||
Computer, peripheral equipment and software | 37,333 | 41,905 | |||||||
Office furniture and equipment | 2,857 | 3,424 | |||||||
Leasehold improvements | 1,516 | 1,757 | |||||||
41,706 | 47,086 | ||||||||
Property and equipment, net | $ | 13,589 | $ | 17,523 | |||||
Depreciation expenses for the years ended December 31, 2011, 2012 and 2013 were $ 6,451, $ 6,832 and $ 5,004, respectively. | |||||||||
During 2012 and 2013 the Company recorded a reduction of $ 815 and $ 0, respectively to the cost and accumulated depreciation of fully depreciated equipment no longer in use. |
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS, NET | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
GOODWILL AND INTANGIBLE ASSETS, NET [Abstract] | ' | |||||||||
GOODWILL AND INTANGIBLE ASSETS, NET | ' | |||||||||
NOTE 7:- | GOODWILL AND INTANGIBLE ASSETS, NET | |||||||||
a. | Goodwill: | |||||||||
Changes in goodwill in the years ended December 31, 2012 and 2013 are as follows: | ||||||||||
2012 | 2013 | |||||||||
Goodwill, beginning of year | $ | 24,465 | $ | 24,465 | ||||||
Acquisitions | - | 5,604 | ||||||||
Goodwill, end of year | 24,465 | 30,069 | ||||||||
b. | Intangible assets: | |||||||||
Weighted | ||||||||||
average | ||||||||||
amortization | December 31, | |||||||||
period | 2012 | 2013 | ||||||||
(years) | ||||||||||
Cost: | ||||||||||
Acquired technology | 6 | $ | 12,625 | $ | 14,939 | |||||
Customers relationships and brand name | 10 | 9,107 | 9,817 | |||||||
21,732 | 24,756 | |||||||||
Accumulated amortization: | ||||||||||
Acquired technology | 8,814 | 10,979 | ||||||||
Customers relationships and brand name | 7,790 | 8,707 | ||||||||
16,604 | 19,686 | |||||||||
Intangible assets, net | $ | 5,128 | $ | 5,070 | ||||||
Amortization expenses for the years ended December 31, 2011, 2012 and 2013 were $ 3,848, $ 3,035 and $ 3,082, respectively. | ||||||||||
In February 2013, the Company acquired all of the outstanding shares of Strangeloop Networks Inc. ("Strangeloop") for a total cash consideration of $ 8,402, of which $ 5,604 was attributed to goodwill and $ 3,023 to acquired intangible assets. | ||||||||||
Pro forma results of operations for this acquisition have not been presented because they are not material to the consolidated results of operations. | ||||||||||
Future estimated amortization expenses for the years ending: | ||||||||||
December 31, | ||||||||||
2014 | 1,690 | |||||||||
2015 | 961 | |||||||||
2016 | 844 | |||||||||
2017 | 731 | |||||||||
2018 and thereafter | 844 | |||||||||
Total | $ | 5,070 |
OTHER_PAYABLES_AND_ACCRUED_EXP
OTHER PAYABLES AND ACCRUED EXPENSES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
OTHER PAYABLES AND ACCRUED EXPENSES [Abstract] | ' | ||||||||
OTHER PAYABLES AND ACCRUED EXPENSES | ' | ||||||||
NOTE 8:- | OTHER PAYABLES AND ACCRUED EXPENSES | ||||||||
December 31, | |||||||||
2012 | 2013 | ||||||||
Accrued expenses and other | $ | 4,461 | $ | 5,335 | |||||
Subcontractors accrual | 1,975 | 2,582 | |||||||
Accrued Taxes | 1,918 | 2,739 | |||||||
$ | 8,354 | $ | 10,656 |
COMMITMENTS_AND_CONTINGENT_LIA
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract] | ' | ||||
COMMITMENTS AND CONTINGENT LIABILITIES | ' | ||||
NOTE 9:- | COMMITMENTS AND CONTINGENT LIABILITIES | ||||
a. | Lease commitments: | ||||
The facilities of the Company and its subsidiaries are leased under various operating lease agreements, which expire on various dates, the latest of which is on September 30, 2018. Aggregate minimum rental payments under non-cancelable operating leases as of December 31, 2013, are (in the aggregate) and for each succeeding fiscal year below: | |||||
2014 | 3,109 | ||||
2015 | 1,811 | ||||
2016 | 995 | ||||
2017 | 634 | ||||
2018 and thereafter | 66 | ||||
$ | 6,615 | ||||
Total rent expenses for the years ended December 31, 2011, 2012 and 2013 were $ 3,922, $ 4,199 and $ 4,496, respectively (see also Note 15b). | |||||
b. | Litigation: | ||||
1 | In August 2013 the Company reached a settlement with the Israeli Tax Authorities regarding the Company's corporate tax returns from the years 2004, 2005, 2006 and 2008. The settlement amounted to a total payment of NIS 8.3 million ($2.3M). The Company had provisions for the related years in the amount of NIS 6.4 million ($1.8M). The amount in excess (approximately $500) was recorded as an additional tax expense during 2013. During 2013 the ITA began assessment of 2009-2011 tax years. | ||||
2 | In November 2011, SNMP Research International, Inc. and SNMP Research, Inc. commenced a lawsuit in the United States Bankruptcy Court for the District of Delaware against Nortel Networks, Inc. (and certain of its affiliates entities), Genband US LLC, GENBAND, Inc., Performance Technologies, Inc., Perftech (PTI) Canada, Avaya, Inc. and Radware, Ltd. The Company alleges that the Company has infringed certain of SNMP's copyrights, misappropriated certain of SNMP's trade secrets, were unjustly enriched, and converted certain of SNMP's intellectual property. SNMP has asserted that as part of the Company's acquisition of the Layer 4-7 Application Delivery business from Nortel Networks in March 2009, the Company received certain intellectual property of SNMP Research that was embedded in the Layer 4-7 business.The complaint does not specify the amount of damages and requests that such amount be determined at trial. The Company served with the complaint in Israel in March 2013 and advised SNMP Research that it diligently investigated whether software received from Nortel included SNMP Software, and based on such investigation no SNMP Software was found. | ||||
The Company moved to dismiss the action in May 2013 based on failure of the complaint to plead facts sufficient to state plausible causes of action for which relief can be granted. Oral argument on the motion was conducted on October 29, 2013. On December 10, 2013, Chief Judge granted the Company's motion and dismissed the complaint as to the Company. SNMP filed an amended complaint with the same claims on December 27, 2013, but the Company has not yet been served with the amended complaint. The Company is discussing settlement with SNMP. Draft settlement agreements have been exchanged which impose no liability on the Company. If settlement is not reached and SNMP Research does not voluntarily dismiss the amended complaint against the Company, the Company intends to vigorously defend the litigation, and cannot estimate what impact, if any, the litigation may have on the results of operations, financial condition or cash flows. | |||||
3 | On December 23, 2013, Parallel Networks, LLC filed suit in the United States District Court for the District of Delaware, alleging infringement of U.S. Patent relating to the Company's products that offer certain caching and URL re-writing features. The Company denies that it has infringed any valid claims of the asserted patents and has filed counterclaims for a declaration that the Company's products do not infringe and that the patents are invalid. The Company intends to continue to vigorously oppose Plaintiff's claims as the litigation is still in a preliminary stage, and cannot estimate what impact, if any, the litigation may have on the results of operations, financial condition or cash flows. | ||||
4 | On October 22, 2012, Branch Banking and Trust Co. ("BB&T) filed a third-party complaint in the Eastern District of Texas against Radware Inc., ("Radware") seeking indemnification for patent infringement claims brought by TQP Development LLC ("TQP") against BB&T in the same court. The complaint alleges that BB&T purchased certain products from Nortel Networks Inc. ("Nortel") and Covelight Systems Inc. and that TQP has alleged that BB&T's use of these products infringes certain TQP patents. BB&T further alleges that Radware is the successor in interest to Nortel and Covelight and that Radware, has refused to defend and hold BB&T harmless against TQP's allegations in breach of BB&T's agreements and warranties with Nortel and Covelight. On January 14, 2013, Radware filed an answer and counterclaim denying that Radware has any indemnity obligations to BB&T and seeking declaratory judgment as to each of BB&T's asserted causes of action. On April 8, 2013, the Court granted BB&T's motion to dismiss its action against Radware without prejudice. On September 6, 2013 TQP moved to dismiss all claims against BB&T. On January 14, 2014 Magistrate Judge issued an order recommending granting TQP's motion to dismiss. | ||||
5 | OnAugust 29, 2013, F5 Networks Inc. ("F5") filed an amended answer and counterclaim in an action brought by the Company against F5 on May 1, 2013 for infringement of three of the Company's patents regarding link load balancing technology. In its counterclaim, F5 alleged infringement of four F5 patents related to cookie persistence technology. In particular, while F5 acknowledged that the Company is licensed to each of the F5 patents-in-suit, F5 contends that the Company's AppDirector and Alteon product lines perform unlicensed modes of the patents-in-suit. F5's counterclaim further alleged trade libel and unfair competition resulting from statements made by the Company asserting that F5 is responsible for certain internet service problems at major banks, including the Bank of America. On December 6, 2013, the Company filed an answer denying the allegations in F5's counterclaims. No date has been set for trial in this matter. The Company cannot estimate what impact, if any, the litigation may have on the results of operations, financial condition or cash flows. | ||||
6 | On January 17, 2014, CRFD Research Inc. ("CRFD") filed a patent infringement complaint in the District of Delaware against Level 3 Communications LLC ("Level 3"), a reseller of Strangeloop products. On January 21, 2014, Level 3 requested indemnification from Strangeloop seeking indemnification for patent infringement claims brought by CRFD against Level 3. The Company has agreed to indemnify and defend Level 3 in this action. No scheduling order has been entered for this case. The Company cannot estimate what impact, if any, the litigation may have on the results of operations, financial condition or cash flows. | ||||
7 | From time to time, the Company is party to other various legal proceedings, claims and litigation that arise in the normal course of business. It is the opinion of management that the ultimate outcome of these matters will not have a material adverse effect on the Company's financial position, results of operations or cash flows. |
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
SHAREHOLDERS' EQUITY [Abstract] | ' | ||||||||||||||||||||||
SHAREHOLDERS' EQUITY | ' | ||||||||||||||||||||||
NOTE 10:- SHAREHOLDERS' EQUITY | |||||||||||||||||||||||
The Company's shares are listed for trade on the NASDAQ National Market under the symbol "RDWR". | |||||||||||||||||||||||
a. | Rights of shares: | ||||||||||||||||||||||
Ordinary shares: | |||||||||||||||||||||||
The Ordinary shares confer upon the holders the right to receive notice to participate and vote in shareholders meetings of the Company and to receive dividend, if declared. | |||||||||||||||||||||||
b. | Treasury stock: | ||||||||||||||||||||||
In April 2013 the Company's Board of Directors authorized the repurchase of up to an aggregate of $ 40,000 of the Company's Ordinary shares in the open market, subject to normal trading restrictions. During 2013 the Company purchased a total of 536,557 of its Ordinary shares for total consideration of $ 7,902. Total consideration for the purchase of these Ordinary shares was recorded as Treasury shares, at cost, as part of shareholders' equity. | |||||||||||||||||||||||
c. | Dividends: | ||||||||||||||||||||||
Dividends, if any, will be paid in NIS. Dividends paid to shareholders outside Israel may be converted to U.S. dollars on the basis of the exchange rate prevailing at the date of the conversion. The Company does not intend to pay cash dividends in the foreseeable future. | |||||||||||||||||||||||
d. | Stock Option Plans: | ||||||||||||||||||||||
The Company has two stock option plans, the Company's Key Employee Share Incentive Plan (1997) as amended and restated and the Directors and Consultants Option Plan ("the Stock Option Plans"). Under the Stock Option Plans, options may be granted to officers, directors, employees and consultants of the Company or its subsidiaries. The exercise price per share under the Stock Option Plans was generally not less than the market price of an Ordinary share at the date of grant. The options expire between 5.2 years to 6 years from the grant date. The options vest primarily over four years. Each option is exercisable for one Ordinary share. Any options, which are forfeited or not exercised before expiration, become available for future grants. | |||||||||||||||||||||||
Pursuant to the Stock Option Plans, the Company reserved for issuance 24,259,912 Ordinary shares. As of December 31, 2013, an aggregate of 944,274 Ordinary shares of the Company were still available for future grants. | |||||||||||||||||||||||
On February 1, 2010, the Company's Board of Directors adopted an additional addendum to the share option plan allowing the allocation of short term options to grantees who are not residents of Israel or the United States, with a grant price of 90% of the closing market price of the shares on the NASDAQ on the date of grant of a respective option award. As of December 31, 2013, 1,000,000 Ordinary shares have been reserved for option grants under this addendum. As of December 31, 2013, an aggregate of 763,306 Ordinary shares of the Company, under this addendum, were still available for future grants. | |||||||||||||||||||||||
Restricted Shares Units ("RSUs"): | |||||||||||||||||||||||
In addition to granting stock options, since 2013, the Company started to routinely grant Restricted Stock Units ("RSUs") under the 1997 Plans. RSUs vest primarily over a four years period of employment. RSUs that are cancelled or forfeited become available for future grants. | |||||||||||||||||||||||
Employee Stock Purchase Plan ("ESPP"): | |||||||||||||||||||||||
On February 1, 2010 the Company's Board of Directors adopted the 2010 Employee Share Purchase Plan ("ESPP"), which provides for the issuance of a maximum of 2,000,000 Ordinary shares. Pursuant to the ESPP, eligible employees (including only Israeli and United States residents) could have up to 10% of their net income withheld, up to certain maximums, to be used to purchase the Company's Ordinary shares. The ESPP is implemented with overlapping one year Offering Periods, each one consisting of two purchases, once in every six-month period. The price of each Ordinary share purchased under the ESPP is equal to 90% of the closing price for the shares on the respective Offering Date. | |||||||||||||||||||||||
During 2011, employees purchased 136,658 of Ordinary shares at average prices of $ 7.38. During 2013 and 2012, there was no offering under the ESPP. | |||||||||||||||||||||||
The fair value for the year ended December 31, 2011 was estimated using the following weighted average assumptions: | |||||||||||||||||||||||
Year ended | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2011 | |||||||||||||||||||||||
Risk free interest rate | 0.29 | % | |||||||||||||||||||||
Dividend yields | 0 | % | |||||||||||||||||||||
Expected volatility | 36 | % | |||||||||||||||||||||
Weighted average expected term from grant date (in years) | 0.75 | ||||||||||||||||||||||
As of December 31, 2013, 1,744,440 Ordinary shares are available for issuance under future ESPP. | |||||||||||||||||||||||
A summary of employees, consultants and directors option activity under the Company's Stock Option Plans as of December 31, 2013 is as follows: | |||||||||||||||||||||||
Number of options | Weighted-average exercise price | Weighted- average remaining contractual term | Aggregate intrinsic value | ||||||||||||||||||||
(in years) | |||||||||||||||||||||||
Outstanding at January 1, 2013 | 6,316,548 | 10.38 | 2.68 | 40,796 | |||||||||||||||||||
Granted | 2,147,995 | 14.31 | |||||||||||||||||||||
Exercised | (890,258 | ) | 6.21 | ||||||||||||||||||||
Expired | - | - | |||||||||||||||||||||
Forfeited | (500,774 | ) | 15.48 | ||||||||||||||||||||
Outstanding at December 31, 2013 | 7,073,511 | 11.74 | 2.62 | 44,716 | |||||||||||||||||||
Exercisable at December 31, 2013 | 3,573,344 | 8.8 | 1.29 | 32,923 | |||||||||||||||||||
Vested and expected to vest at December 31, 2013 | 6,667,187 | 11.54 | 2.52 | 43,442 | |||||||||||||||||||
The aggregate intrinsic value of options outstanding at December 31, 2013, represents intrinsic value of 6,400,411 outstanding options that are in-the-money as of December 31, 2013. The remaining 673,100 outstanding options are out of the money as of December 31, 2013, and their intrinsic value was considered as zero. | |||||||||||||||||||||||
The aggregate intrinsic value of options exercisable at December 31, 2013 represents intrinsic value of 3,375,344 outstanding options that are in-the-money as of December 31, 2013. The remaining 198,000 outstanding options are out of the money as of December 31, 2013, and their intrinsic value was considered as zero. | |||||||||||||||||||||||
The weighted-average grant-date fair value of options granted during the years ended December 31, 2011, 2012 and 2013 was $ 5.66, $ 6.16 and $ 5.02, respectively. | |||||||||||||||||||||||
As of December 31, 2013, there was approximately $ 9,629 of total unrecognized compensation costs related to non-vested share-based compensation arrangements granted under the Company's stock option plans. That cost is expected to be recognized over a weighted-average period of 1.64 years. Total grant-date fair value of vested options for the year ended December 31, 2013 was approximately $ 11,504. | |||||||||||||||||||||||
The options outstanding under the Company's Stock Option Plans as of December 31, 2013 have been separated into ranges of exercise price as follows: | |||||||||||||||||||||||
Outstanding | Exercisable | ||||||||||||||||||||||
Weighted | |||||||||||||||||||||||
average | Weighted | Weighted | |||||||||||||||||||||
Ranges of | remaining | average | average | ||||||||||||||||||||
exercise | Number of | contractual | exercise | Number of | exercise | ||||||||||||||||||
price | options | life (years) | price | options | price | ||||||||||||||||||
$ | 3.08-4.50 | 1,160,142 | 0.7 | 4.3 | 1,160,142 | 4.3 | |||||||||||||||||
$ | 5.79-7.81 | 1,460,550 | 1.03 | 7.56 | 1,342,650 | 7.56 | |||||||||||||||||
$ | 11.94-14.47 | 2,382,507 | 4.02 | 13.36 | 429,152 | 12.08 | |||||||||||||||||
$ | 15.09-19.30 | 2,070,312 | 3.21 | 16.98 | 641,400 | 17.38 | |||||||||||||||||
7,073,511 | 3,573,344 | ||||||||||||||||||||||
The following table summarizes information relating to RSUs, as well as changes to such awards during 2013: | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2013 | |||||||||||||||||||||||
Number in thousands | |||||||||||||||||||||||
Outstanding at January 1, 2013 | - | ||||||||||||||||||||||
Granted | 188,382 | ||||||||||||||||||||||
Vested | - | ||||||||||||||||||||||
Forfeited | (3,167 | ) | |||||||||||||||||||||
Outstanding as of December 31, 2013 | 185,215 | ||||||||||||||||||||||
As of December 31, 2013, there was approximately $ 1,511 of total unrecognized compensation costs related to non-vested RSUs granted under the Company's stock option plans. That cost is expected to be recognized over a weighted-average period of 1.61 years | |||||||||||||||||||||||
The weighted-average grant date fair value of RSUs granted during the year ended December 31, 2013 was $ 14.48. | |||||||||||||||||||||||
Stock-based compensation was recorded in the following items | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2011 | 2012 | 2013 | |||||||||||||||||||||
Cost of sales | $ | 66 | $ | 66 | $ | 53 | |||||||||||||||||
Research and development | 1,124 | 1,103 | 1,562 | ||||||||||||||||||||
Selling and marketing | 3,135 | 3,298 | 2,552 | ||||||||||||||||||||
General and administrative | 1,133 | 916 | 1,207 | ||||||||||||||||||||
Total Expenses | $ | 5,458 | $ | 5,383 | $ | 5,374 |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
EARNINGS PER SHARE [Abstract] | ' | ||||||||||||
EARNINGS PER SHARE | ' | ||||||||||||
NOTE 11:- | EARNINGS PER SHARE | ||||||||||||
The following table sets forth the computation of basic and diluted net earnings per share: | |||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Numerator for basic and diluted net earnings per share: | |||||||||||||
Net income | $ | 21,337 | $ | 31,757 | $ | 18,055 | |||||||
Weighted average shares outstanding, net of treasury stock: | |||||||||||||
Denominator for basic net earnings per share | 41,905,732 | 43,709,278 | 44,760,197 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Employee stock options | 3,870,396 | 2,879,616 | 1,956,732 | ||||||||||
Denominator for diluted net earnings per share | 45,776,128 | 46,588,894 | 46,716,929 | ||||||||||
Basic net earnings per share | $ | 0.51 | $ | 0.73 | $ | 0.4 | |||||||
Diluted net earnings per share | $ | 0.47 | $ | 0.68 | $ | 0.39 |
TAXES_ON_INCOME
TAXES ON INCOME | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
TAXES ON INCOME [Abstract] | ' | |||||||||||||
TAXES ON INCOME | ' | |||||||||||||
NOTE 12:- | TAXES ON INCOME | |||||||||||||
a. | General: | |||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||||
2012 | 2013 | |||||||||||||
Beginning balance | $ | 1,669 | $ | 5,659 | ||||||||||
Additions for prior year tax positions | 1,216 | 541 | ||||||||||||
Decrease related to settlement with tax authorities | - | (1,831 | ) | |||||||||||
Additions for current year tax positions | 2,774 | 991 | ||||||||||||
Ending balance | $ | 5,659 | $ | 5,360 | ||||||||||
The Company's Israeli tax returns have been examined for all years including and prior to fiscal 2008, and the Company is no longer subject to audit for these periods (See also Note 9b(1)). | ||||||||||||||
As of December 31, 2013, the entire amount of the unrecognized tax benefits could affect the Company's income tax provision and the effective tax rate. | ||||||||||||||
During the years ended December 31, 2013, 2012 and 2011 an amount of $ 541, $ 512 and $ (7), respectively, was added to the unrecognized tax benefits derived from interest and exchange rate differences expenses related to prior years' uncertain tax positions. As of December 31, 2013 and 2012, the Company had accrued interest liability related to uncertain tax positions in the amounts of $ 299 and $ 959 respectively, which is included within income tax accrual on the balance sheets. | ||||||||||||||
Exchange rate differences are recorded within financial income, net, while interest is recorded within income tax expense. | ||||||||||||||
The Company's U.S subsidiary files income tax return in the U.S federal jurisdiction. Tax returns have been examined for all years prior to fiscal 2010, and the Company's U.S subsidiary is no longer subject to audit for these periods. | ||||||||||||||
In 2013 the Company reached a settlement with the Israeli tax authorities ("ITA") with respect to 2004-2008 tax years (refer to note 9b for further details). As a result the Company released the related reserves. | ||||||||||||||
The Company believes that it has adequately provided for any reasonably foreseeable outcome related to tax audits and settlement. The final tax outcome of its tax audits could be different from that which is reflected in the Company's income tax provisions and accruals. Such differences could have a material effect on the Company's income tax provision and net income in the period in which such determination is made. | ||||||||||||||
b. | Israeli Taxation: | |||||||||||||
1 | Foreign Exchange Regulations: | |||||||||||||
Commencing in taxable year 2003, the Company has elected to measure its taxable income and file its tax return under the Israeli Income Tax Regulations. Under the Foreign Exchange Regulations the Israeli company is calculating its tax liability in U.S. Dollars according to certain orders. The tax liability, as calculated in U.S. Dollars is translated into NIS according to the exchange rate as of December 31st of each year. | ||||||||||||||
2 | Tax rates: | |||||||||||||
Taxable income of the Israeli companies is subject to the Israeli corporate tax at the rate as follows: 2011 - 24%, 2012 - 25%, 2013 - 25%. | ||||||||||||||
On July 30, 2013 the Israeli Parliament (the Knesset) passed a law which was designated to increase the tax levy in the years 2013 and 2014. Among other, the law increases the Israeli corporate tax rate from 25% to 26.5%, cancels the reduction of corporate tax rate for Preferred Enterprise and commencing January 1, 2014, increases the tax rate to 20% on dividends from sources under the law for the encouragement of capital investment, 1959. | ||||||||||||||
3 | Tax benefits under the Law for the Encouragement of Capital Investments, 1959 ("the Law"): | |||||||||||||
Under the amended Law, as amended in April 2005 a company may claim the tax benefits offered by the Investment Law directly in its tax returns, provided that its facilities meet the criteria for tax benefits set out by the Amendment. A company is also granted a right to approach the Israeli Tax Authorities for a pre-ruling regarding their eligibility for benefits under the Amendment. | ||||||||||||||
The Company's income derived from the Beneficiary Enterprise will be entitled to a tax exemption for a period of two years and to an additional period of five to eight years with reduced tax rates of 10%-25% (based on percentage of foreign ownership). | ||||||||||||||
Tax benefits are available under the Amendment to production facilities (or other eligible facilities), which are generally required to derive more than 25% of the Company's business income from export. In order to be eligible for the tax benefits, the Amendment states that a company must make an investment in the Beneficiary Enterprise exceeding a minimum amount specified in the law. Such investment may be made over a period of no more than three years ending at the end of the year in which the company requested to have the tax benefits apply to the Beneficiary Enterprise ("the Year of Election"). Where a company requests to have the tax benefits apply to an expansion of existing facilities, then only the expansion will be considered a Beneficiary Enterprise and the company's effective tax rate will be the result of a weighted combination of the applicable rates. In this case, the minimum investment required in order to qualify as a Beneficiary Enterprise is required to exceed a certain percentage of the company's production assets before the expansion. The duration of tax benefits is subject to a limitation of the earlier of 7 to 10 years from the commencement year, or 12 years from the first day of the year of election. | ||||||||||||||
The Company elected 2009 and 2012 as year of election according to the Law prior to the reform mentioned below. | ||||||||||||||
In the event of distribution of dividends from tax-exempt income generated under Beneficiary or Approved Enterprise, the amount distributed will be subject to the same reduced corporate tax rate that would have been applied to the Approved Enterprise's and Benefiting Enterprise's income. | ||||||||||||||
In addition, as a result of the amendment, tax-exempt income attributed to Benefiting Enterprise, will subject the Company to taxes upon distribution in any manner including complete liquidation. | ||||||||||||||
Out of the Company's retained earnings as of December 31, 2013, $ 134,956 are tax-exempt attributable to its Benefited Enterprise programs. If such tax-exempt income is distributed in a manner other than upon complete liquidation of the Company, it would be taxed at the corporate tax rate applicable to such profits, and an income tax liability of up to $ 26,991 would be incurred as of December 31, 2013. | ||||||||||||||
The Company's board of directors has determined that it will not distribute any amounts of its undistributed tax-exempt income as dividend. The Company intends to reinvest its tax-exempt income and not to distribute such income as a dividend. Accordingly, no deferred income taxes have been provided on income attributable to the Company's Approved Enterprise and Benefiting Enterprise programs as the undistributed tax exempt income is essentially permanent by reinvestment. | ||||||||||||||
In 2012, new legislation amending to the Investment Law was adopted. Under this new legislation, a uniform corporate tax rate will apply to all qualifying income of certain Industrial Companies, as opposed to the current law's incentives, which are limited to income from Approved Enterprises during their benefits period. Under the new law as amended in July 2013, and starting January 1, 2014 the uniform tax rate will be 9% in areas in Israel designated as Development Zone A and 16% elsewhere in Israel. | ||||||||||||||
Under the transition provisions of the new legislation, the Company may decide to irrevocably implement the new law while waiving benefits provided under the current law or to remain subject to the current law. Changing from the current law to the new law is permitted at any time and must be communicated to the ITA by the end of May (in the relevant year). As of December 31, 2013, the company remained subject to the current law. | ||||||||||||||
Income from sources other than the "Approved Enterprise" will be subject to the tax at the regular rate. | ||||||||||||||
c. | Taxes on income are comprised as follows: | |||||||||||||
Year ended | ||||||||||||||
December 31, | ||||||||||||||
2011 | 2012 | 2013 | ||||||||||||
Current taxes | $ | 2,648 | $ | 5,542 | $ | 4,707 | ||||||||
Deferred taxes | (1,358 | ) | (1,584 | ) | (699 | ) | ||||||||
$ | 1,290 | $ | 3,958 | $ | 4,008 | |||||||||
Domestic | $ | 301 | $ | 3,531 | $ | 1,979 | ||||||||
Foreign | 989 | 427 | 2,029 | |||||||||||
$ | 1,290 | $ | 3,958 | $ | 4,008 | |||||||||
Year ended | ||||||||||||||
December 31, | ||||||||||||||
2011 | 2012 | 2013 | ||||||||||||
Domestic taxes: | ||||||||||||||
Current taxes | $ | 915 | $ | 3,950 | $ | 1,692 | ||||||||
Deferred taxes | (614 | ) | (419 | ) | 287 | |||||||||
$ | 301 | $ | 3,531 | $ | 1,979 | |||||||||
Foreign taxes: | ||||||||||||||
Current taxes | $ | 1,733 | $ | 1,592 | $ | 3,015 | ||||||||
Deferred taxes | (744 | ) | (1,165 | ) | (986 | ) | ||||||||
$ | 989 | $ | 427 | $ | 2,029 | |||||||||
Taxes on income | $ | 1,290 | $ | 3,958 | $ | 4,008 | ||||||||
d. | Deferred income taxes: | |||||||||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's and its subsidiaries' deferred tax liabilities and assets are as follows: | ||||||||||||||
December 31, | ||||||||||||||
2012 | 2013 | |||||||||||||
Carryforward tax losses | $ | 2,573 | $ | 2,074 | ||||||||||
Temporary differences | 1,893 | 4,391 | ||||||||||||
Intangible assets | 344 | 752 | ||||||||||||
Deferred tax assets before valuation allowance | 4,810 | 7,217 | ||||||||||||
Valuation allowance | (1,225 | ) | (902 | ) | ||||||||||
Net deferred tax asset | 3,585 | 6,315 | ||||||||||||
Intangible assets, including goodwill | (577 | ) | (2,172 | ) | ||||||||||
Unrealized gains on marketable securities | (693 | ) | (433 | ) | ||||||||||
Deferred tax liability | (1,270 | ) | (2,605 | ) | ||||||||||
Net deferred tax assets | $ | 2,315 | $ | 3,710 | ||||||||||
The net change in the valuation allowance was mainly due to utilization of operating tax losses and other temporary items for which a valuation allowance was provided. | ||||||||||||||
December 31, | ||||||||||||||
2012 | 2013 | |||||||||||||
Domestic: | ||||||||||||||
Non-current deferred tax liability, net | $ | (124 | ) | $ | (661 | ) | ||||||||
Current deferred tax asset, net | 466 | 1,409 | ||||||||||||
342 | 748 | |||||||||||||
Foreign: | ||||||||||||||
Non-current deferred tax asset, net | 1,070 | 1,072 | ||||||||||||
Current deferred tax asset, net | 903 | 1,890 | ||||||||||||
1,973 | 2,962 | |||||||||||||
$ | 2,315 | $ | 3,710 | |||||||||||
Non-current deferred tax liability, net is included within other long-term liabilities in the balance sheets. Current deferred tax asset, net is included within other current assets and prepaid expenses in the balance sheets. Non-current deferred tax asset, net is included within other assets in the balance sheets. | ||||||||||||||
Deferred taxes are carried directly to equity if the tax relates to equity items. | ||||||||||||||
e. | Foreign: | |||||||||||||
The Company's subsidiaries in the U.S. have provided valuation allowance in respect of deferred tax assets resulting from carry forward of net operating loss relating to excess tax deduction from stock options prior to the adoption of ASC 718 on January 1, 2007. ASC No. 718 prohibits recognition of a deferred tax asset for excess tax benefits due to stock option exercises that have not yet been realized through a reduction in income tax payable. Such unrecognized deferred tax benefits will be accounted for as a credit to additional paid-in-capital, if and when realized. The net change in the valuation allowance primarily relates to stock option benefits and was accounted for as a credit to additional paid-in-capital. | ||||||||||||||
Through December 31, 2013, the U.S. subsidiary had a U.S. federal loss carry forward of $ 12,680, which can be carried forward and offset against taxable income up to 20 years, expiring between fiscal 2021 and fiscal 2031. An amount of $ 6,351 of the net operating loss carry-forwards relates to excess tax deductions from stock options. | ||||||||||||||
Utilization of U.S. net operating losses may be subject to substantial annual limitation 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. | ||||||||||||||
f. | A reconciliation between the theoretical tax expense, assuming all income is taxed at the statutory tax rate applicable to income of the Company and the actual tax expense as reported in the statement of operations is as follows: | |||||||||||||
Year ended | ||||||||||||||
December 31, | ||||||||||||||
2011 | 2012 | 2013 | ||||||||||||
Income before taxes, as reported in the consolidated statements of income | $ | 22,627 | $ | 35,715 | $ | 22,063 | ||||||||
Statutory tax rate | 24 | % | 25 | % | 25 | % | ||||||||
Theoretical tax expense on the above amount at the Israeli statutory tax rate | $ | 5,430 | $ | 8,929 | $ | 5,516 | ||||||||
Tax adjustment in respect of different tax rate of foreign subsidiary | 365 | (194 | ) | 758 | ||||||||||
Non-deductible expenses and other permanent differences | 858 | 818 | 544 | |||||||||||
Deferred taxes on losses for which valuation allowance was provided, net | (3,512 | ) | - | - | ||||||||||
Utilization of tax losses and deferred taxes for which valuation allowance was provided, net | (5,401 | ) | (1,368 | ) | (320 | ) | ||||||||
Stock compensation relating to stock options per ASC No. 718 | 1,310 | 1,362 | 1,343 | |||||||||||
Income taxes in respect of prior years | 63 | - | 582 | |||||||||||
Benefiting enterprise benefits (*) | 2,177 | (6,088 | ) | (4,338 | ) | |||||||||
Other | - | 499 | (77 | ) | ||||||||||
Actual tax expense | $ | 1,290 | $ | 3,958 | $ | 4,008 | ||||||||
(*) | Basic earnings per share amounts of the benefit resulting from the "Approved and Privileged Enterprise" status | $ | (0.05 | ) | $ | 0.14 | $ | 0.1 | ||||||
Diluted earnings per share amounts of the benefit resulting from the "Approved and Privileged Enterprise" status | $ | - | $ | 0.13 | $ | 0.09 | ||||||||
g. | Income before income taxes is comprised as follows: | |||||||||||||
Year ended | ||||||||||||||
December 31, | ||||||||||||||
2011 | 2012 | 2013 | ||||||||||||
Domestic | $ | 18,062 | $ | 32,935 | $ | 18,022 | ||||||||
Foreign | 4,565 | 2,780 | 4,041 | |||||||||||
Income before income taxes | $ | 22,627 | $ | 35,715 | $ | 22,063 |
GEOGRAPHIC_INFORMATION
GEOGRAPHIC INFORMATION | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
GEOGRAPHIC INFORMATION [Abstract] | ' | ||||||||||||
GEOGRAPHIC INFORMATION | ' | ||||||||||||
NOTE 13:- | GEOGRAPHIC INFOROMATION | ||||||||||||
Summary information about geographic areas: | |||||||||||||
The Company operates in one reportable segment (see Note 1 for a brief description of the Company's business). The total revenues are attributed to geographic areas based on the location of the end-users. | |||||||||||||
The following table presents total revenues for the years ended December 31, 2011, 2012 and 2013 and long-lived assets as of December 31, 2012 and 2013: | |||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Revenues from sales to customers located at: | |||||||||||||
The United States | $ | 33,932 | $ | 41,637 | $ | 54,914 | |||||||
America - other | 9,763 | 16,560 | 18,302 | ||||||||||
EMEA *) | 57,648 | 57,135 | 53,361 | ||||||||||
China | 18,497 | 19,871 | 16,908 | ||||||||||
Asia Pacific - other | 47,180 | 53,968 | 49,512 | ||||||||||
$ | 167,020 | $ | 189,171 | $ | 192,997 | ||||||||
*) | Europe, the Middle East and Africa. | ||||||||||||
December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
Long-lived assets, by geographic region: | |||||||||||||
America (principally the United States) | $ | 1,010 | $ | 1,739 | |||||||||
Israel | 10,552 | 13,425 | |||||||||||
EMEA - other | 666 | 869 | |||||||||||
Asia Pacific | 1,361 | 1,490 | |||||||||||
$ | 13,589 | $ | 17,523 | ||||||||||
SELECTED_STATEMENTS_OF_INCOME_
SELECTED STATEMENTS OF INCOME DATA | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
SELECTED STATEMENTS OF INCOME DATA [Abstract] | ' | ||||||||||||
SELECTED STATEMENTS OF INCOME DATA | ' | ||||||||||||
NOTE 14:- | SELECTED STATEMENTS OF INCOME DATA | ||||||||||||
Financial income, net: | |||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Financial income: | |||||||||||||
Interest on bank deposits and other | $ | 1,185 | $ | 2,476 | $ | 2,223 | |||||||
Amortization of premiums, accretion of discounts and interest on marketable debt securities, net | 3,191 | 2,918 | 3,255 | ||||||||||
4,376 | 5,394 | 5,478 | |||||||||||
Financial expenses: | |||||||||||||
Bank charges | (163 | ) | (219 | ) | (281 | ) | |||||||
Foreign currency translation differences, net | (13 | ) | (383 | ) | (703 | ) | |||||||
$ | 4,200 | $ | 4,792 | $ | 4,494 |
BALANCES_AND_TRANSACTIONS_WITH
BALANCES AND TRANSACTIONS WITH RELATED PARTIES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
BALANCES AND TRANSACTIONS WITH RELATED PARTIES [Abstract] | ' | ||||||||||||
BALANCES AND TRANSACTIONS WITH RELATED PARTIES | ' | ||||||||||||
NOTE 15:- BALANCES AND TRANSACTIONS WITH RELATED PARTIES | |||||||||||||
Represents transactions and balances with other entities in which certain of the Company's Board of Directors, management and shareholders have interest: | |||||||||||||
a. | The following related party balances are included in the balance sheets: | ||||||||||||
December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
Trade receivables | $ | 1,618 | $ | 1,676 | |||||||||
Trade payables | $ | 1,488 | $ | 961 | |||||||||
b. | The following related party transactions are included in the statements of income: | ||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Revenues (1) | $ | 6,211 | $ | 4,232 | $ | 1,480 | |||||||
Operating expenses, net - primarily lease, sub-contractors and communications (2) | $ | 3,094 | $ | 3,809 | $ | 4,387 | |||||||
Purchase of property and equipment | $ | 1,078 | $ | 2,536 | $ | 3,003 | |||||||
-1 | Distribution of the Company's products on a non-exclusive basis. | ||||||||||||
-2 | The Company leases office space and purchases other miscellaneous services from certain companies, which are considered to be related parties. In addition, the Company subleases part of the office space to related parties and provides certain services to related parties. |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policy) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ||||||||||||
Use Of Estimates | ' | ||||||||||||
a. | Use of estimates: | ||||||||||||
The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates, judgments and assumptions. The Company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||
On an ongoing basis, the Company's management evaluates estimates, including those related to fair values and useful lives of intangible assets, tax assets and liabilities, fair values of stock-based awards, as well as in estimates used in applying the revenue recognition policy related to separation of multiple elements. Such estimates are based on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. | |||||||||||||
Financial Statements In United States Dollars | ' | ||||||||||||
b. | Financial statements in United States dollars: | ||||||||||||
A majority of the revenues of the Company and its subsidiaries are denominated in U.S. dollars ("dollar" or "dollars"). In addition, a substantial portion of the Company's and certain of its subsidiaries' costs are denominated in dollars. The Company's management believes that the dollar is the primary currency of the economic environment in which the Company and its subsidiaries operate. Thus, the functional and reporting currency of the Company and its subsidiaries is the dollar. Accordingly, monetary accounts maintained in currencies other than the dollar are re-measured into U.S. dollars in accordance with Accounting Standards Codification ("ASC") No. 830 "Foreign Currency Matters". Changes in currency exchange rates between the Company's functional currency and the currency in which a transaction is denominated are included in the Company's results of operations as financial income (expense) in the period in which the currency exchange rates change. | |||||||||||||
Principles Of Consolidation | ' | ||||||||||||
c. | Principles of consolidation: | ||||||||||||
The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions including profits from intercompany sales not yet realized outside the Group, have been eliminated upon consolidation. | |||||||||||||
Cash Equivalents | ' | ||||||||||||
d. | Cash equivalents: | ||||||||||||
Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less, at acquisition. | |||||||||||||
Bank Deposits | ' | ||||||||||||
e. | Bank deposits: | ||||||||||||
Bank deposits with maturities of more than three months but less than one year are included in short-term deposits. Such short-term deposits are stated at cost which approximates market values. | |||||||||||||
Bank deposits with maturities of more than one year are included in long-term deposits. Deposits as of December 31, 2013 do not have contractual maturities that exceed two years. Such long-term deposits are stated at cost which approximates market values. | |||||||||||||
Investment In Marketable Securities | ' | ||||||||||||
f. | Investment in marketable securities: | ||||||||||||
The Company accounts for investments in marketable debt securities in accordance with ACS No. 320, "Investments- Debt and equity Securities". Management determines the appropriate classification of its investments in debt securities at the time of purchase and reevaluates such determinations at each balance sheet date. | |||||||||||||
The Company classified all of its debt securities as available-for-sale securities. Available-for-sale securities are carried at fair value, with the unrealized gains and losses reported in "accumulated other comprehensive income (loss)" in shareholders' equity. Realized gains and losses on sales of investments are included in financial income, 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 and dividends on securities are included in financial income, net. | |||||||||||||
The Company recognizes an impairment charge when a decline in the fair value of its investments below the cost basis is judged to be other-than-temporary. The factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Company's intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. For securities that are deemed other-than-temporarily impaired, the amount of impairment recognized in the statement of income (operations) is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income. During the years 2011, 2012 and 2013, the Company did not record any other-than-temporary impairment loss with respect to its marketable securities. | |||||||||||||
Inventories | ' | ||||||||||||
g. | Inventories: | ||||||||||||
Inventories are stated at the lower of cost or market value. Inventory write-off is provided to cover risks arising from slow-moving items, technological obsolescence, excess inventories and discontinued products. Inventory write-off totaled $ 1,205, $ 1,147 and $ 464 in 2011, 2012 and 2013, respectively, and has been included in cost of revenues. | |||||||||||||
Cost is determined as follows: | |||||||||||||
Raw materials and components - using the "first-in, first-out" method. | |||||||||||||
Work-in-progress and finished products - raw materials as above with the addition of subcontracting costs - calculated on the basis of direct subcontractors costs and with direct overhead costs. | |||||||||||||
Property And Equipment | ' | ||||||||||||
h. | Property and equipment: | ||||||||||||
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets at the following annual rates: | |||||||||||||
% | |||||||||||||
Computer, peripheral equipment and software | 15 - 33 (mainly 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 | |||||||||||||
Impairment Of Long Lived Assets And Intangible Assets Subject To Amortization | ' | ||||||||||||
i. | Impairment of long lived assets and intangible assets subject to amortization: | ||||||||||||
Property and equipment and intangible assets subject to amortization are reviewed for impairment in accordance with ASC No. 360, "Accounting for the Impairment or Disposal of Long-Lived Assets," whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. | |||||||||||||
Intangible assets acquired in a business combination are recorded at fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets that are not considered to have an indefinite useful life are amortized over their estimated useful lives, which range from 1 to 10 years. Some of the acquired customer arrangements are amortized over their estimated useful lives in proportion to the economic benefits realized. This accounting policy results in accelerated amortization of such customer arrangements as compared to the straight-line method. All other intangible assets are amortized over their estimated useful lives on a straight-line basis. | |||||||||||||
During 2011, 2012 and 2013, no impairment losses were recorded. | |||||||||||||
Goodwill | ' | ||||||||||||
j. | Goodwill: | ||||||||||||
Goodwill represents the excess of the purchase price in a business combination over the fair value of the net tangible and intangible assets acquired. Under ASC 350, goodwill is not amortized, but rather is subject to an annual impairment test. | |||||||||||||
ASC 350 requires goodwill to be tested for impairment at least annually or between annual tests in certain circumstances, and written down when impaired. Goodwill is tested for impairment by comparing the fair value of the reporting unit with its carrying value. | |||||||||||||
In September 2011, the Financial Accounting Standards Board, or FASB issued ASU 2011-08, Testing Goodwill for Impairment, codified in ASC 350 "Intangibles - Goodwill and Other". The revised accounting standard update intended to simplify how an entity tests goodwill for impairment. The amendment allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. An entity is no longer required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. The Company chose not to adopt the new guidance in 2013. | |||||||||||||
In accordance with ASC No. 350 the Company performs an annual impairment test at December 31 each year. The first step, identifying a potential impairment, compares the fair value of the reporting unit with its carrying amount. If the carrying amount exceeds its fair value, the second step would need to be performed; otherwise, no further step is required. The second step, measuring the impairment loss, compares the implied fair value of the goodwill with the carrying amount of the goodwill. Any excess of the goodwill carrying amount over the applied fair value is recognized as an impairment loss, and the carrying value of goodwill is written down to fair value. During the years ended December 31, 2011, 2012 and 2013, no impairment losses were recorded. | |||||||||||||
Revenue Recognition | ' | ||||||||||||
k. | Revenue recognition: | ||||||||||||
The Company and its subsidiaries generate revenues mainly from selling their products and from post-contract customer support, which are sold primarily through distributors and resellers, all of which are considered end-users. | |||||||||||||
Revenues from product sales are recognized in accordance with ASC No. 605, "Revenue Recognition" when delivery has occurred, persuasive evidence of an agreement exists, the vendor's fee is fixed or determinable, and collectability is reasonably assured. | |||||||||||||
Revenue derived from post-contract customer support, which represents mainly software updates, help desk support, unit replacement or repair, and security update service is recognized ratably over the contract period, which is typically between one year and five years. | |||||||||||||
Revenues in arrangements with multiple deliverables are allocated using the relative selling price method. The Company determines the best estimated selling price ("BESP") in multiple-element arrangements as follows: | |||||||||||||
VSOE for post-contract customer support is determined based on the price charged when such element is sold separately (renewals). The price may vary in the territories and vertical markets in which the Company conducts business. Price is determined by using a consistent percentage of the Company's product price lists, in the same territories and markets. | |||||||||||||
For the product, the Company determines the BESP based on management estimated selling price by considering several external and internal factors including, but not limited to, pricing practices including discounting, margin objectives, and competition. The determination of estimated selling price ("ESP") is made through consultation with and approval of management, taking into consideration the pricing model and go-to-market strategy. | |||||||||||||
The Company records a provision for estimated sale returns and stock rotation granted to customers on products in the same period the related revenues are recorded in accordance with ASC No. 605. These estimates are based on historical sales returns, stock rotations and other known factors. Such provisions amounted to $ 1,071 and $ 914 as of December 31, 2012 and 2013, respectively. | |||||||||||||
Deferred revenues include unearned amounts received under post-contract customer support, and classified in short and long term based on their contractual term. | |||||||||||||
Shipping And Handling | ' | ||||||||||||
l. | Shipping and Handling: | ||||||||||||
Shipping and handling fees charged to the Company's customers are recognized as product revenue in the period shipped and the related costs for providing these services are recorded as a cost of sale. | |||||||||||||
Cost Of Revenues | ' | ||||||||||||
m. | Cost of revenues: | ||||||||||||
Cost of products is comprised of cost of software and hardware production, manuals, packaging, license fees paid to third parties and amortization of acquired technology. | |||||||||||||
Cost of services is comprised of cost of post sale customer support. | |||||||||||||
Warranty Costs | ' | ||||||||||||
n. | Warranty costs: | ||||||||||||
The Company generally provides a one year warranty for all of its products. A provision is recorded for estimated warranty costs at the time revenues are recognized based on the Company's experience. Warranty expenses for the years ended December 31, 2011, 2012 and 2013 were immaterial. | |||||||||||||
Research And Development Expenses | ' | ||||||||||||
o. | Research and development expenses: | ||||||||||||
Research and development expenses are charged to the statement of income, as incurred. | |||||||||||||
Grants | ' | ||||||||||||
p. | Grants: | ||||||||||||
Starting 2012 the Company received non-royalty-bearing grants from the Government of Israel for approved research and development projects. These grants are recognized at the time the Company is entitled to such grants on the basis of the costs incurred as provided by the relevant agreement and included as a deduction from research and development expenses. | |||||||||||||
Research and development grants deducted from research and development expenses amounted to $ 264 and $ 369 in 2012 and 2013, respectively. | |||||||||||||
Accounting For Stock-Based Compensation | ' | ||||||||||||
q. | Accounting for stock-based compensation: | ||||||||||||
The Company accounts for stock-based compensation in accordance with ASC No. 718, "Compensation-Stock Compensation". ASC No. 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company's consolidated statement of income. | |||||||||||||
The Company recognizes compensation expenses for the value of its awards based on the accelerated attribution method over the requisite service period of each of the awards, net of estimated forfeitures. ASC No. 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. | |||||||||||||
ASC No. 718 requires the cash flows resulting from the tax deductions in excess of the compensation costs recognized for those stock options to be classified as financing cash flows. | |||||||||||||
The Company selected the Black-Scholes-Merton option pricing model to account for the fair value of its stock-options awards with only service conditions and whereas the fair value of the restricted stocks awards is based on the market value of the underlying shares at the date of grant. The option-pricing model requires a number of assumptions, of which the most significant are the expected stock price volatility and the expected option term. Expected volatility was calculated based upon actual historical stock price movements over an historical period equivalent to the option's expected term. The expected option term represents the period of time that options granted are expected to be outstanding. Expected term of options granted is based upon historical experience. The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent term. The Company has historically not paid dividends and has no foreseeable plans to pay dividends. | |||||||||||||
The fair value of the Company's stock options granted to employees, consultants and directors for the years ended December 31, 2011, 2012 and 2013 was estimated using the following weighted average assumptions: | |||||||||||||
Employees stock option plan: | |||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Risk free interest rate | 0.99 | % | 0.46 | % | 0.81 | % | |||||||
Dividend yields | 0 | % | 0 | % | 0 | % | |||||||
Expected volatility | 47 | % | 47 | % | 44 | % | |||||||
Weighted average expected term from grant date (in years) | 3.79 | 3.67 | 3.93 | ||||||||||
Income Taxes | ' | ||||||||||||
r. | Income taxes: | ||||||||||||
The Company accounts for income taxes in accordance with ASC No. 740, "Income Taxes". This statement prescribes the use of the liability method whereby deferred tax assets and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company and its subsidiaries provide a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value if it is more likely than not that a portion or all of the deferred tax assets will not be realized. | |||||||||||||
Deferred tax liabilities and assets are classified as current or noncurrent based on the classification of the related asset or liability for financial reporting, or according to the expected reversal dates of the specific temporary differences if not related to an asset or liability for financial reporting. | |||||||||||||
ASC 740 contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company accrues interest and penalty, if any related to unrecognized tax benefits in its taxes on income. | |||||||||||||
Concentrations Of Credit Risks | ' | ||||||||||||
s. | Concentrations of credit risks: | ||||||||||||
Financial instruments that potentially subject the Company and its subsidiaries to concentrations of credit risk consist principally of cash and cash equivalents, bank deposits, available-for-sale marketable securities and trade receivables. | |||||||||||||
The majority of the Company's and its subsidiaries' cash and cash equivalents and bank deposits are invested in major banks in Israel and the U.S. Deposits in the U.S. may be in excess of insured limits and are not insured in other jurisdictions. Generally, these cash equivalents may be redeemed upon demand and, therefore management believes that it bears a lower risk. The short term and long term bank deposits are held in financial institutions which management believes are institutions with high credit standing, and accordingly, minimal credit risk from geographic or credit concentration exists with respect to these bank deposits. As of December 31, 2013, 60% of the Company's short-term and long-term bank deposits were deposited in major Israeli banks in Israel which are rated AA+, as determined by the Israeli affiliate of S&P, and 40% were deposited in the U.S. branch of another major Israeli bank which is also rated AA+, as determined by the Israeli affiliate of S&P. | |||||||||||||
As of December 31, 2013, the maximal contractual duration of any of the Company's bank deposits was 2 years, the weighted average duration of the Company's deposits was 1.8 years, and the weighted average time to maturity was slightly less than a year. | |||||||||||||
The Company's marketable securities include investments in foreign banks and government debentures and in corporate debentures. The financial institutions that hold the Company's marketable securities are major U.S. financial institutions, located in the United States. Management believes that, the Company's marketable securities portfolio is a diverse portfolio of highly-rated securities and the Company's investment policy limits the amount the Company may invest in each issuer, and accordingly, minimal credit risk exists from geographic or credit concentration with respect to these securities. As of December 31, 2013, 54% of the Company's marketable securities portfolio was invested in debt securities of financial institutions, 6% in debt securities of governmental institutions and 40% in debt securities of Corporations. No more than 2% of the Company's total investments portfolio was invested in debt securities of one issuer. From geographic prospective, 54% of the Company's marketable securities portfolio was invested in debt securities of U.S. issuers, 26% was invested in debt securities of European issuers and 20% was invested in debt securities of other geographic-located issuers. As of December 31, 2013, 95% of our marketable securities portfolio was rated A- or higher, as determined by S&P, and 5% was rated BBB or BBB+. | |||||||||||||
The trade receivables of the Company and its subsidiaries are mainly derived from sales to customers located primarily in the United States, Europe, the Middle East, Africa and Asia Pacific. The Company performs ongoing credit evaluations of its customers. An allowance for doubtful accounts is determined with respect to those amounts that the Company has determined to be doubtful of collection. In certain circumstances, the Company may require from its customers letters of credit, other collateral or additional guarantees. Bad debt expenses for the years ended December 31, 2011, 2012 and 2013 were $ 0, $ 0 and $ 200, respectively. Total write offs during 2011, 2012 and 2013 amounted to $ 200, $ 7 and $ 534, respectively. | |||||||||||||
Severance Pay | ' | ||||||||||||
t. | Severance pay: | ||||||||||||
The Company's liability for severance pay for periods prior to April 1, 2007 is calculated pursuant to Israeli severance pay law based on the most recent salary of the employees multiplied by the number of years of employment as of the balance sheet date. The Company recorded as expenses the increase in the severance liability, net of earnings (losses) from the related investment fund. Employees were entitled to one month's salary for each year of employment, or a portion thereof. Until April 1, 2007, the Company's liability was partially funded by monthly payments deposited with insurers; any unfunded amounts would be paid from operating funds and are covered by a provision established by the Company. | |||||||||||||
The carrying value of the deposited funds for the Company's employees' severance pay for employment periods prior to April 1, 2007 include profits and losses accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israeli severance pay law or labor agreements. | |||||||||||||
Effective April 1, 2007, the Company's agreements with employees in Israel are in accordance with section 14 of the Severance Pay Law - 1963 which provide that the Company's contributions to severance pay fund shall cover its entire severance obligation with respect to period of employment subsequent to April 1, 2007. Upon termination, the release of the contributed amounts from the fund to the employee shall relieve the Company from any further severance obligation and no additional payments shall be made by the Company to the employee. As a result, the related obligation and amounts deposited on behalf of such obligation are not stated on the balance sheet, as the Company is legally released from severance obligation to employees once the amounts have been deposited, and the Company has no further legal ownership on the amounts deposited. Consequently, effective from April 1, 2007, the Company increased its contribution to the deposited funds to cover the full amount of the employees' salaries. | |||||||||||||
Severance pay expenses for the years ended December 31, 2011, 2012 and 2013 amounted to approximately $ 2,244, $ 1,945 and $ 2,293, respectively. Accrued severance pay is included in other long term liabilities in the Balance sheet. | |||||||||||||
Fair Value Of Financial Instruments | ' | ||||||||||||
u. | Fair value of financial instruments: | ||||||||||||
The Company measures its cash equivalents and marketable securities at fair value. 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. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for 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 | - | Include other inputs that are directly or indirectly observable in the marketplace. | |||||||||||
Level 3 | - | Unobservable inputs which are supported by little or no market activity. | |||||||||||
Comprehensive Income | ' | ||||||||||||
v. | Comprehensive income: | ||||||||||||
The Company accounts for comprehensive income in accordance with ASC No. 220, "Comprehensive Income." This statement establishes standards for the reporting and display of comprehensive income and its components in a full set of general purpose financial statements. Comprehensive income generally represents all changes in stockholders' equity during the period except those resulting from investments by, or distributions to, stockholders. The Company determined that its only item of other comprehensive income relate to available for sale marketable securities adjustment. | |||||||||||||
Treasury Stock | ' | ||||||||||||
w. | Treasury stock: | ||||||||||||
The Company repurchases its Ordinary shares from time to time on 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. The voting rights attached to treasury stock are revoked. | |||||||||||||
Basic And Diluted Net Income Per Share | ' | ||||||||||||
x. | Basic and diluted net income per share: | ||||||||||||
Basic net income per share is computed based on the weighted average number of Ordinary shares outstanding during each period. Diluted net income per share is computed based on the weighted average number of Ordinary shares outstanding during each period, plus dilutive potential Ordinary shares considered outstanding during the period, in accordance with ASC No. 260, "Earnings Per Share". | |||||||||||||
The total number of shares related to outstanding options excluded from the calculation of diluted income per share as they would have been anti dilutive was 2,263,600, 1,902,200 and 2,735,095 for the years ended December 31, 2011, 2012 and 2013, respectively. | |||||||||||||
Business combinations | ' | ||||||||||||
y. | Business combinations: | ||||||||||||
The Company accounted for business combination in accordance with ASC No. 805, "Business Combinations". ASC No. 805 requires recognition of assets acquired, liabilities assumed, and any non-controlling interest at the acquisition date, measured at their fair values as of that date. Any excess of the fair value of net assets acquired over purchase price and any subsequent changes in estimated contingencies are to be recorded in earnings. In addition, changes in valuation allowance related to acquired deferred tax assets and in acquired income tax position are to be recognized in earnings. | |||||||||||||
Reclassifications | ' | ||||||||||||
z. | Recalssifications: | ||||||||||||
Certain amounts in prior years' financial statements have been reclassified to conform to the current year's presentation. An amount of $ 5,388 related to uncertain tax positions was reclassified from other payables and accrued expenses to other long-term liabilities. The reclassification had no effect on previously reported net income or shareholders' equity |
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ||||||||||||
Property and Equipment Annual Depreciation Rates | ' | ||||||||||||
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets at the following annual rates: | |||||||||||||
% | |||||||||||||
Computer, peripheral equipment and software | 15 - 33 (mainly 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 Weighted Average Assumptions Used to Calculate Fair Value of Company's Stock Options | ' | ||||||||||||
Employees stock option plan: | |||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Risk free interest rate | 0.99 | % | 0.46 | % | 0.81 | % | |||||||
Dividend yields | 0 | % | 0 | % | 0 | % | |||||||
Expected volatility | 47 | % | 47 | % | 44 | % | |||||||
Weighted average expected term from grant date (in years) | 3.79 | 3.67 | 3.93 |
MARKETABLE_SECURITIES_Tables
MARKETABLE SECURITIES (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
MARKETABLE SECURITIES [Abstract] | ' | ||||||||||||||||||||||||||||||||
Schedule of Marketable Securities With Contractual Maturities | ' | ||||||||||||||||||||||||||||||||
Marketable securities with contractual maturities of less than one year are as follows: | |||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
2012 | 2013 | ||||||||||||||||||||||||||||||||
Amortized | Gross unrealized | Gross unrealized | Market | Amortized | Gross unrealized | Gross unrealized | Market | ||||||||||||||||||||||||||
cost | losses | gains | value | cost | losses | gains | Value | ||||||||||||||||||||||||||
Foreign banks and government debentures | $ | 8,312 | $ | (4 | ) | $ | 36 | $ | 8,344 | $ | 22,260 | $ | - | $ | 223 | $ | 22,483 | ||||||||||||||||
Corporate debentures | 5,590 | - | 70 | 5,660 | 7,848 | - | 41 | 7,889 | |||||||||||||||||||||||||
Total available-for-sale marketable securities | $ | 13,902 | $ | (4 | ) | $ | 106 | $ | 14,004 | $ | 30,108 | $ | - | $ | 264 | $ | 30,372 | ||||||||||||||||
Marketable securities with contractual maturities from one to three years are as follows: | |||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
2012 | 2013 | ||||||||||||||||||||||||||||||||
Amortized | Gross unrealized | Gross unrealized | Market | Amortized | Gross unrealized | Gross unrealized | Market | ||||||||||||||||||||||||||
cost | losses | gains | value | cost | Losses | gains | Value | ||||||||||||||||||||||||||
Foreign banks and government debentures | $ | 49,673 | $ | (3 | ) | $ | 1,233 | $ | 50,903 | $ | 37,599 | $ | (43 | ) | $ | 1,132 | $ | 38,688 | |||||||||||||||
Corporate debentures | 19,278 | - | 402 | 19,680 | 22,652 | (7 | ) | 481 | 23,126 | ||||||||||||||||||||||||
Total available-for-sale marketable securities | $ | 68,951 | $ | (3 | ) | $ | 1,635 | $ | 70,583 | $ | 60,251 | $ | (50 | ) | $ | 1,613 | $ | 61,814 | |||||||||||||||
Marketable securities with contractual maturities of more than three years are as follows: | |||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
2012 | 2013 | ||||||||||||||||||||||||||||||||
Amortized | Gross unrealized | Gross unrealized | Market | Amortized | Gross unrealized | Gross unrealized | Market | ||||||||||||||||||||||||||
cost | losses | gains | value | cost | Losses | gains | Value | ||||||||||||||||||||||||||
Foreign banks and government debentures | $ | 27,287 | $ | (38 | ) | $ | 813 | $ | 28,062 | $ | 27,458 | $ | (176 | ) | $ | 248 | $ | 27,530 | |||||||||||||||
Corporate debentures | 22,207 | (102 | ) | 364 | 22,469 | 24,198 | (182 | ) | 17 | 24,033 | |||||||||||||||||||||||
Total available-for-sale marketable securities | $ | 49,494 | $ | (140 | ) | $ | 1,177 | $ | 50,531 | $ | 51,656 | $ | (358 | ) | $ | 265 | $ | 51,563 | |||||||||||||||
Summary of Investments With Continuous Unrealized Losses and Related Fair Values | ' | ||||||||||||||||||||||||||||||||
Investments with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values as of December 31, 2013 were as follows: | |||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
Investments with continuous unrealized losses for less than 12 months | Investments with continuous unrealized losses for 12 months or greater | Total investments with continuous unrealized losses | |||||||||||||||||||||||||||||||
Fair | Unrealized losses | Fair | unrealized losses | Fair | unrealized losses | ||||||||||||||||||||||||||||
value | value | value | |||||||||||||||||||||||||||||||
Foreign banks and government debentures | $ | 17,981 | $ | (209 | ) | $ | 1,496 | $ | (10 | ) | $ | 19,477 | $ | (219 | ) | ||||||||||||||||||
Corporate debentures | 19,590 | (189 | ) | - | - | 19,590 | (189 | ) | |||||||||||||||||||||||||
Total available-for-sale marketable securities | $ | 37,571 | $ | (398 | ) | $ | 1,496 | $ | (10 | ) | $ | 39,067 | $ | (408 | ) |
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | ' | ||||||||||||||||
Financial Assets Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||
The Company's financial assets measured at fair value on a recurring basis, including interest receivable components consisted of the following types of instruments as of December 31, 2013 and 2012: | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
Fair value measurements using input type | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 79 | $ | - | $ | - | $ | 79 | |||||||||
Available-for-sale: | |||||||||||||||||
Foreign banks and government debentures | - | 88,701 | - | 88,701 | |||||||||||||
Corporate debentures | - | 55,048 | - | 55,048 | |||||||||||||
Total financial assets | $ | 79 | $ | 143,749 | $ | - | $ | 143,828 | |||||||||
31-Dec-12 | |||||||||||||||||
Fair value measurements using input type | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 701 | $ | - | $ | - | $ | 701 | |||||||||
Available-for-sale: | |||||||||||||||||
Foreign banks and government debentures | - | 87,309 | - | 87,309 | |||||||||||||
Corporate debentures | - | 47,809 | - | 47,809 | |||||||||||||
Total financial assets | $ | 701 | $ | 135,118 | $ | - | $ | 135,819 |
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
INVENTORIES [Abstract] | ' | ||||||||
Schedule of Current Inventories | ' | ||||||||
Inventories are comprised of the following: | |||||||||
December 31, | |||||||||
2012 | 2013 | ||||||||
Raw materials and components | $ | 1,725 | $ | 1,802 | |||||
Work-in-progress | 1,479 | 784 | |||||||
Finished products (*) | 9,341 | 11,604 | |||||||
$ | 12,545 | $ | 14,190 |
PROPERTY_AND_EQUIPMENT_NET_Tab
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
PROPERTY AND EQUIPMENT, NET [Abstract] | ' | ||||||||
Schedule of Property and Equipment, Net | ' | ||||||||
December 31, | |||||||||
2012 | 2013 | ||||||||
Cost: | |||||||||
Computer, peripheral equipment and software | $ | 48,182 | $ | 55,914 | |||||
Office furniture and equipment | 4,619 | 6,094 | |||||||
Leasehold improvements | 2,494 | 2,601 | |||||||
55,295 | 64,609 | ||||||||
Accumulated depreciation: | |||||||||
Computer, peripheral equipment and software | 37,333 | 41,905 | |||||||
Office furniture and equipment | 2,857 | 3,424 | |||||||
Leasehold improvements | 1,516 | 1,757 | |||||||
41,706 | 47,086 | ||||||||
Property and equipment, net | $ | 13,589 | $ | 17,523 |
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
GOODWILL AND INTANGIBLE ASSETS, NET [Abstract] | ' | |||||||||
Schedule of Changes in Goodwill | ' | |||||||||
Changes in goodwill in the years ended December 31, 2012 and 2013 are as follows: | ||||||||||
2012 | 2013 | |||||||||
Goodwill, beginning of year | $ | 24,465 | $ | 24,465 | ||||||
Acquisitions | - | 5,604 | ||||||||
Goodwill, end of year | 24,465 | 30,069 | ||||||||
Schedule of Intangible Assets, Net | ' | |||||||||
Intangible assets: | ||||||||||
Weighted | ||||||||||
average | ||||||||||
amortization | December 31, | |||||||||
period | 2012 | 2013 | ||||||||
(years) | ||||||||||
Cost: | ||||||||||
Acquired technology | 6 | $ | 12,625 | $ | 14,939 | |||||
Customers relationships and brand name | 10 | 9,107 | 9,817 | |||||||
21,732 | 24,756 | |||||||||
Accumulated amortization: | ||||||||||
Acquired technology | 8,814 | 10,979 | ||||||||
Customers relationships and brand name | 7,790 | 8,707 | ||||||||
16,604 | 19,686 | |||||||||
Intangible assets, net | $ | 5,128 | $ | 5,070 | ||||||
Future Estimated Amortization Expenses | ' | |||||||||
Future estimated amortization expenses for the years ending: | ||||||||||
December 31, | ||||||||||
2014 | 1,690 | |||||||||
2015 | 961 | |||||||||
2016 | 844 | |||||||||
2017 | 731 | |||||||||
2018 and thereafter | 844 | |||||||||
Total | $ | 5,070 |
OTHER_PAYABLES_AND_ACCRUED_EXP1
OTHER PAYABLES AND ACCRUED EXPENSES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
OTHER PAYABLES AND ACCRUED EXPENSES [Abstract] | ' | ||||||||
Schedule of Other Payables and Accrued Expenses | ' | ||||||||
December 31, | |||||||||
2012 | 2013 | ||||||||
Accrued expenses and other | $ | 4,461 | $ | 5,335 | |||||
Subcontractors accrual | 1,975 | 2,582 | |||||||
Accrued Taxes | 1,918 | 2,739 | |||||||
$ | 8,354 | $ | 10,656 |
COMMITMENTS_AND_CONTINGENT_LIA1
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract] | ' | ||||
Aggregate Minimum Lease Commitments | ' | ||||
Aggregate minimum rental payments under non-cancelable operating leases as of December 31, 2013, are (in the aggregate) and for each succeeding fiscal year below: | |||||
2014 | 3,109 | ||||
2015 | 1,811 | ||||
2016 | 995 | ||||
2017 | 634 | ||||
2018 and thereafter | 66 | ||||
$ | 6,615 |
SHAREHOLDERS_EQUITY_Tables
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
SHAREHOLDERS' EQUITY [Abstract] | ' | ||||||||||||||||||||||
Schedule of Weighted Average Assumptions Used to Calculate Fair Value of Company's Stock Purchase Plan | ' | ||||||||||||||||||||||
The fair value for the year ended December 31, 2011 was estimated using the following weighted average assumptions: | |||||||||||||||||||||||
Year ended | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2011 | |||||||||||||||||||||||
Risk free interest rate | 0.29 | % | |||||||||||||||||||||
Dividend yields | 0 | % | |||||||||||||||||||||
Expected volatility | 36 | % | |||||||||||||||||||||
Weighted average expected term from grant date (in years) | 0.75 | ||||||||||||||||||||||
Summary of Stock Option Activity | ' | ||||||||||||||||||||||
A summary of employees, consultants and directors option activity under the Company's Stock Option Plans as of December 31, 2013 is as follows: | |||||||||||||||||||||||
Number of options | Weighted-average exercise price | Weighted- average remaining contractual term | Aggregate intrinsic value | ||||||||||||||||||||
(in years) | |||||||||||||||||||||||
Outstanding at January 1, 2013 | 6,316,548 | 10.38 | 2.68 | 40,796 | |||||||||||||||||||
Granted | 2,147,995 | 14.31 | |||||||||||||||||||||
Exercised | (890,258 | ) | 6.21 | ||||||||||||||||||||
Expired | - | - | |||||||||||||||||||||
Forfeited | (500,774 | ) | 15.48 | ||||||||||||||||||||
Outstanding at December 31, 2013 | 7,073,511 | 11.74 | 2.62 | 44,716 | |||||||||||||||||||
Exercisable at December 31, 2013 | 3,573,344 | 8.8 | 1.29 | 32,923 | |||||||||||||||||||
Vested and expected to vest at December 31, 2013 | 6,667,187 | 11.54 | 2.52 | 43,442 | |||||||||||||||||||
Summary of Stock Options Outstanding by Exercise Price Range | ' | ||||||||||||||||||||||
The options outstanding under the Company's Stock Option Plans as of December 31, 2013 have been separated into ranges of exercise price as follows: | |||||||||||||||||||||||
Outstanding | Exercisable | ||||||||||||||||||||||
Weighted | |||||||||||||||||||||||
average | Weighted | Weighted | |||||||||||||||||||||
Ranges of | remaining | average | average | ||||||||||||||||||||
exercise | Number of | contractual | exercise | Number of | exercise | ||||||||||||||||||
price | options | life (years) | price | options | price | ||||||||||||||||||
$ | 3.08-4.50 | 1,160,142 | 0.7 | 4.3 | 1,160,142 | 4.3 | |||||||||||||||||
$ | 5.79-7.81 | 1,460,550 | 1.03 | 7.56 | 1,342,650 | 7.56 | |||||||||||||||||
$ | 11.94-14.47 | 2,382,507 | 4.02 | 13.36 | 429,152 | 12.08 | |||||||||||||||||
$ | 15.09-19.30 | 2,070,312 | 3.21 | 16.98 | 641,400 | 17.38 | |||||||||||||||||
7,073,511 | 3,573,344 | ||||||||||||||||||||||
Summary of RSU Activity | ' | ||||||||||||||||||||||
The following table summarizes information relating to RSUs, as well as changes to such awards during 2013: | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2013 | |||||||||||||||||||||||
Number in thousands | |||||||||||||||||||||||
Outstanding at January 1, 2013 | - | ||||||||||||||||||||||
Granted | 188,382 | ||||||||||||||||||||||
Vested | - | ||||||||||||||||||||||
Forfeited | (3,167 | ) | |||||||||||||||||||||
Outstanding as of December 31, 2013 | 185,215 | ||||||||||||||||||||||
Summary of Stock-Based Compensation Expense | ' | ||||||||||||||||||||||
Stock-based compensation was recorded in the following items | |||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2011 | 2012 | 2013 | |||||||||||||||||||||
Cost of sales | $ | 66 | $ | 66 | $ | 53 | |||||||||||||||||
Research and development | 1,124 | 1,103 | 1,562 | ||||||||||||||||||||
Selling and marketing | 3,135 | 3,298 | 2,552 | ||||||||||||||||||||
General and administrative | 1,133 | 916 | 1,207 | ||||||||||||||||||||
Total Expenses | $ | 5,458 | $ | 5,383 | $ | 5,374 |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
EARNINGS PER SHARE [Abstract] | ' | ||||||||||||
Computation of Basic and Diluted Net Earnings Per Share | ' | ||||||||||||
The following table sets forth the computation of basic and diluted net earnings per share: | |||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Numerator for basic and diluted net earnings per share: | |||||||||||||
Net income | $ | 21,337 | $ | 31,757 | $ | 18,055 | |||||||
Weighted average shares outstanding, net of treasury stock: | |||||||||||||
Denominator for basic net earnings per share | 41,905,732 | 43,709,278 | 44,760,197 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Employee stock options | 3,870,396 | 2,879,616 | 1,956,732 | ||||||||||
Denominator for diluted net earnings per share | 45,776,128 | 46,588,894 | 46,716,929 | ||||||||||
Basic net earnings per share | $ | 0.51 | $ | 0.73 | $ | 0.4 | |||||||
Diluted net earnings per share | $ | 0.47 | $ | 0.68 | $ | 0.39 |
TAXES_ON_INCOME_Tables
TAXES ON INCOME (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
TAXES ON INCOME [Abstract] | ' | |||||||||||||
Reconciliation of Unrecognized Tax Benefits | ' | |||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||||
2012 | 2013 | |||||||||||||
Beginning balance | $ | 1,669 | $ | 5,659 | ||||||||||
Additions for prior year tax positions | 1,216 | 541 | ||||||||||||
Decrease related to settlement with tax authorities | - | (1,831 | ) | |||||||||||
Additions for current year tax positions | 2,774 | 991 | ||||||||||||
Ending balance | $ | 5,659 | $ | 5,360 | ||||||||||
Summary of Taxes on Income | ' | |||||||||||||
Taxes on income are comprised as follows: | ||||||||||||||
Year ended | ||||||||||||||
December 31, | ||||||||||||||
2011 | 2012 | 2013 | ||||||||||||
Current taxes | $ | 2,648 | $ | 5,542 | $ | 4,707 | ||||||||
Deferred taxes | (1,358 | ) | (1,584 | ) | (699 | ) | ||||||||
$ | 1,290 | $ | 3,958 | $ | 4,008 | |||||||||
Domestic | $ | 301 | $ | 3,531 | $ | 1,979 | ||||||||
Foreign | 989 | 427 | 2,029 | |||||||||||
$ | 1,290 | $ | 3,958 | $ | 4,008 | |||||||||
Year ended | ||||||||||||||
December 31, | ||||||||||||||
2011 | 2012 | 2013 | ||||||||||||
Domestic taxes: | ||||||||||||||
Current taxes | $ | 915 | $ | 3,950 | $ | 1,692 | ||||||||
Deferred taxes | (614 | ) | (419 | ) | 287 | |||||||||
$ | 301 | $ | 3,531 | $ | 1,979 | |||||||||
Foreign taxes: | ||||||||||||||
Current taxes | $ | 1,733 | $ | 1,592 | $ | 3,015 | ||||||||
Deferred taxes | (744 | ) | (1,165 | ) | (986 | ) | ||||||||
$ | 989 | $ | 427 | $ | 2,029 | |||||||||
Taxes on income | $ | 1,290 | $ | 3,958 | $ | 4,008 | ||||||||
Significant Components of Deferred Tax Liabilities and Assets | ' | |||||||||||||
Significant components of the Company's and its subsidiaries' deferred tax liabilities and assets are as follows: | ||||||||||||||
December 31, | ||||||||||||||
2012 | 2013 | |||||||||||||
Carryforward tax losses | $ | 2,573 | $ | 2,074 | ||||||||||
Temporary differences | 1,893 | 4,391 | ||||||||||||
Intangible assets | 344 | 752 | ||||||||||||
Deferred tax assets before valuation allowance | 4,810 | 7,217 | ||||||||||||
Valuation allowance | (1,225 | ) | (902 | ) | ||||||||||
Net deferred tax asset | 3,585 | 6,315 | ||||||||||||
Intangible assets, including goodwill | (577 | ) | (2,172 | ) | ||||||||||
Unrealized gains on marketable securities | (693 | ) | (433 | ) | ||||||||||
Deferred tax liability | (1,270 | ) | (2,605 | ) | ||||||||||
Net deferred tax assets | $ | 2,315 | $ | 3,710 | ||||||||||
The net change in the valuation allowance was mainly due to utilization of operating tax losses and other temporary items for which a valuation allowance was provided. | ||||||||||||||
December 31, | ||||||||||||||
2012 | 2013 | |||||||||||||
Domestic: | ||||||||||||||
Non-current deferred tax liability, net | $ | (124 | ) | $ | (661 | ) | ||||||||
Current deferred tax asset, net | 466 | 1,409 | ||||||||||||
342 | 748 | |||||||||||||
Foreign: | ||||||||||||||
Non-current deferred tax asset, net | 1,070 | 1,072 | ||||||||||||
Current deferred tax asset, net | 903 | 1,890 | ||||||||||||
1,973 | 2,962 | |||||||||||||
$ | 2,315 | $ | 3,710 | |||||||||||
Reconciliation Between Theoretical and Actual Tax Expense | ' | |||||||||||||
A reconciliation between the theoretical tax expense, assuming all income is taxed at the statutory tax rate applicable to income of the Company and the actual tax expense as reported in the statement of operations is as follows: | ||||||||||||||
Year ended | ||||||||||||||
December 31, | ||||||||||||||
2011 | 2012 | 2013 | ||||||||||||
Income before taxes, as reported in the consolidated statements of income | $ | 22,627 | $ | 35,715 | $ | 22,063 | ||||||||
Statutory tax rate | 24 | % | 25 | % | 25 | % | ||||||||
Theoretical tax expense on the above amount at the Israeli statutory tax rate | $ | 5,430 | $ | 8,929 | $ | 5,516 | ||||||||
Tax adjustment in respect of different tax rate of foreign subsidiary | 365 | (194 | ) | 758 | ||||||||||
Non-deductible expenses and other permanent differences | 858 | 818 | 544 | |||||||||||
Deferred taxes on losses for which valuation allowance was provided, net | (3,512 | ) | - | - | ||||||||||
Utilization of tax losses and deferred taxes for which valuation allowance was provided, net | (5,401 | ) | (1,368 | ) | (320 | ) | ||||||||
Stock compensation relating to stock options per ASC No. 718 | 1,310 | 1,362 | 1,343 | |||||||||||
Income taxes in respect of prior years | 63 | - | 582 | |||||||||||
Benefiting enterprise benefits (*) | 2,177 | (6,088 | ) | (4,338 | ) | |||||||||
Other | - | 499 | (77 | ) | ||||||||||
Actual tax expense | $ | 1,290 | $ | 3,958 | $ | 4,008 | ||||||||
(*) | Basic earnings per share amounts of the benefit resulting from the "Approved and Privileged Enterprise" status | $ | (0.05 | ) | $ | 0.14 | $ | 0.1 | ||||||
Diluted earnings per share amounts of the benefit resulting from the "Approved and Privileged Enterprise" status | $ | - | $ | 0.13 | $ | 0.09 | ||||||||
Schedule of Income Before Income Taxes | ' | |||||||||||||
Income before income taxes is comprised as follows: | ||||||||||||||
Year ended | ||||||||||||||
December 31, | ||||||||||||||
2011 | 2012 | 2013 | ||||||||||||
Domestic | $ | 18,062 | $ | 32,935 | $ | 18,022 | ||||||||
Foreign | 4,565 | 2,780 | 4,041 | |||||||||||
Income before income taxes | $ | 22,627 | $ | 35,715 | $ | 22,063 |
GEOGRAPHIC_INFORMATION_Tables
GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
GEOGRAPHIC INFORMATION [Abstract] | ' | ||||||||||||
Schedule of Total Revenues by Geographical Areas | ' | ||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Revenues from sales to customers located at: | |||||||||||||
The United States | $ | 33,932 | $ | 41,637 | $ | 54,914 | |||||||
America - other | 9,763 | 16,560 | 18,302 | ||||||||||
EMEA *) | 57,648 | 57,135 | 53,361 | ||||||||||
China | 18,497 | 19,871 | 16,908 | ||||||||||
Asia Pacific - other | 47,180 | 53,968 | 49,512 | ||||||||||
$ | 167,020 | $ | 189,171 | $ | 192,997 | ||||||||
*) | Europe, the Middle East and Africa. | ||||||||||||
Schedule of Long-Lived Assets by Geographical Areas | ' | ||||||||||||
December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
Long-lived assets, by geographic region: | |||||||||||||
America (principally the United States) | $ | 1,010 | $ | 1,739 | |||||||||
Israel | 10,552 | 13,425 | |||||||||||
EMEA - other | 666 | 869 | |||||||||||
Asia Pacific | 1,361 | 1,490 | |||||||||||
$ | 13,589 | $ | 17,523 |
SELECTED_STATEMENTS_OF_INCOME_1
SELECTED STATEMENTS OF INCOME DATA (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
SELECTED STATEMENTS OF INCOME DATA [Abstract] | ' | ||||||||||||
Summary of Selected Statements of Income Data | ' | ||||||||||||
Financial income, net: | |||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Financial income: | |||||||||||||
Interest on bank deposits and other | $ | 1,185 | $ | 2,476 | $ | 2,223 | |||||||
Amortization of premiums, accretion of discounts and interest on marketable debt securities, net | 3,191 | 2,918 | 3,255 | ||||||||||
4,376 | 5,394 | 5,478 | |||||||||||
Financial expenses: | |||||||||||||
Bank charges | (163 | ) | (219 | ) | (281 | ) | |||||||
Foreign currency translation differences, net | (13 | ) | (383 | ) | (703 | ) | |||||||
$ | 4,200 | $ | 4,792 | $ | 4,494 |
BALANCES_AND_TRANSACTIONS_WITH1
BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
BALANCES AND TRANSACTIONS WITH RELATED PARTIES [Abstract] | ' | ||||||||||||
Summary of Related Party Transactions | ' | ||||||||||||
Represents transactions and balances with other entities in which certain of the Company's Board of Directors, management and shareholders have interest: | |||||||||||||
a. | The following related party balances are included in the balance sheets: | ||||||||||||
December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
Trade receivables | $ | 1,618 | $ | 1,676 | |||||||||
Trade payables | $ | 1,488 | $ | 961 | |||||||||
b. | The following related party transactions are included in the statements of income: | ||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Revenues (1) | $ | 6,211 | $ | 4,232 | $ | 1,480 | |||||||
Operating expenses, net - primarily lease, sub-contractors and communications (2) | $ | 3,094 | $ | 3,809 | $ | 4,387 | |||||||
Purchase of property and equipment | $ | 1,078 | $ | 2,536 | $ | 3,003 | |||||||
-1 | Distribution of the Company's products on a non-exclusive basis. | ||||||||||||
-2 | The Company leases office space and purchases other miscellaneous services from certain companies, which are considered to be related parties. In addition, the Company subleases part of the office space to related parties and provides certain services to related parties. |
GENERAL_Details
GENERAL (Details) (ILS) | 0 Months Ended | ||
Apr. 12, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ' | ' | ' |
Percentage interest held in Israeli subsidiary by Company | ' | 91.00% | ' |
Number of major suppliers | ' | 4 | ' |
Stock split ratio | 2 | ' | ' |
Ordinary shares, par value | ' | 0.05 | 0.05 |
Previously reported [Member] | ' | ' | ' |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ' | ' | ' |
Ordinary shares, par value | ' | ' | 0.1 |
SIGNIFICANT_ACCOUNTING_POLICIE3
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other-than-temporary impairment loss for marketable securities | ' | ' | ' |
Inventory write-off included in cost of revenues | 464 | 1,147 | 1,205 |
Impairment losses of intangible assets | ' | ' | ' |
Impairment losses of goodwill | ' | ' | ' |
Provision for estimated sales returns stock rotations and other customer rights | 914 | 1,071 | ' |
Warranty term | '1 year | ' | ' |
Governmental grants received | 369 | 264 | ' |
Bank deposits, maximum contractual term | '2 years | ' | ' |
Bank deposits, weighted-average duration of deposits | '1 year 9 months 18 days | ' | ' |
Bad debt expenses | 200 | ' | ' |
Write-off of bad debts | 534 | 7 | 200 |
Term of severance pay entitlement based on period of total employment | '1 month | ' | ' |
Severance expenses | 2,293 | 1,945 | 2,244 |
Anti-dilutive shares excluded from computation of earnings per share amount | 2,735,095 | 1,902,200 | 2,263,600 |
Uncertain tax positions reclassified from other payables and accrued expenses to other long-term liabilities | $5,388 | ' | ' |
S&P rating, A- or higher [Member] | ' | ' | ' |
Marketable securities, rating of investment portfolio percentage | 95.00% | ' | ' |
S&P rating, BBB or BBB+ [Member] | ' | ' | ' |
Marketable securities, rating of investment portfolio percentage | 5.00% | ' | ' |
Financial Instutions Debt Securities [Member] | ' | ' | ' |
Marketable securities, percentage of portfolio distrubution | 54.00% | ' | ' |
Government Debt Securities [Member] | ' | ' | ' |
Marketable securities, percentage of portfolio distrubution | 6.00% | ' | ' |
Corporate Debt Securities [Member] | ' | ' | ' |
Marketable securities, percentage of portfolio distrubution | 40.00% | ' | ' |
Debt Securities [Member] | ' | ' | ' |
Marketable securities, maximum percentage investment portfolio from single issuer | 2.00% | ' | ' |
Israel [Member] | S&P rating, AA+ [Member] | ' | ' | ' |
Percent of company's short-term and long-term bank deposits held in major Israeli banks | 60.00% | ' | ' |
United States [Member] | S&P rating, AA+ [Member] | ' | ' | ' |
Percent of company's short-term and long-term bank deposits held in major Israeli banks | 40.00% | ' | ' |
United States [Member] | Debt Securities [Member] | ' | ' | ' |
Marketable securities, percentage of portfolio distrubution | 54.00% | ' | ' |
Europe [Member] | Debt Securities [Member] | ' | ' | ' |
Marketable securities, percentage of portfolio distrubution | 26.00% | ' | ' |
Other [Member] | Debt Securities [Member] | ' | ' | ' |
Marketable securities, percentage of portfolio distrubution | 20.00% | ' | ' |
Minimum [Member] | ' | ' | ' |
Finite-lived intangible assets, estimated useful lives | '1 year | ' | ' |
Customer support contracts, support period | '1 year | ' | ' |
Maximum [Member] | ' | ' | ' |
Finite-lived intangible assets, estimated useful lives | '10 years | ' | ' |
Customer support contracts, support period | '5 years | ' | ' |
SIGNIFICANT_ACCOUNTING_POLICIE4
SIGNIFICANT ACCOUNTING POLICIES (Property and Equipment Annual Depreciation Rates) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Computer Peripheral Equipment And Software [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Annual rate of depreciation on property and equipment | 33.00% |
Office Furniture And Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Annual rate of depreciation on property and equipment | 15.00% |
Leasehold Improvements [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Annual depreciation period of property and equipment | 'Over the shorter of the term of the lease or the useful life of the asset |
Minimum [Member] | Computer Peripheral Equipment And Software [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Annual rate of depreciation on property and equipment | 15.00% |
Minimum [Member] | Office Furniture And Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Annual rate of depreciation on property and equipment | 6.00% |
Maximum [Member] | Computer Peripheral Equipment And Software [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Annual rate of depreciation on property and equipment | 33.00% |
Maximum [Member] | Office Furniture And Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Annual rate of depreciation on property and equipment | 20.00% |
SIGNIFICANT_ACCOUNTING_POLICIE5
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Weighted Average Assumptions Used to Calculate Fair Value of Company's Stock Options) (Details) (Employee Stock Option Plan [Member]) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Employee Stock Option Plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Risk free interest rate | 0.81% | 0.46% | 0.99% |
Dividend yields | 0.00% | 0.00% | 0.00% |
Expected volatility | 44.00% | 47.00% | 47.00% |
Weighted average expected term from grant date (in years) | '3 years 11 months 5 days | '3 years 8 months 1 day | '3 years 9 months 15 days |
MARKETABLE_SECURITIES_Schedule
MARKETABLE SECURITIES (Schedule of Marketable Securities With Contractual Maturities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost, less than one year | $30,108 | $13,902 |
Gross unrealized losses, less than one year | ' | -4 |
Gross unrealized gains, less than one year | 264 | 106 |
Market Value, less than one year | 30,372 | 14,004 |
Amortized cost, over one year through three years | 60,251 | 68,951 |
Gross unrealized losses, over one year through three years | -50 | -3 |
Gross unrealized gains, over one through three years | 1,613 | 1,635 |
Market Value, over one year through three years | 61,814 | 70,583 |
Amortized cost, greater than three years | 51,656 | 49,494 |
Gross unrealized losses, greater than three years | -358 | -140 |
Gross unrealized gains, greater than three years | 265 | 1,177 |
Market value, greater than three years | 51,563 | 50,531 |
Corporate debentures [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost, less than one year | 7,848 | 5,590 |
Gross unrealized losses, less than one year | ' | ' |
Gross unrealized gains, less than one year | 41 | 70 |
Market Value, less than one year | 7,889 | 5,660 |
Amortized cost, over one year through three years | 22,652 | 19,278 |
Gross unrealized losses, over one year through three years | -7 | ' |
Gross unrealized gains, over one through three years | 481 | 402 |
Market Value, over one year through three years | 23,126 | 19,680 |
Amortized cost, greater than three years | 24,198 | 22,207 |
Gross unrealized losses, greater than three years | -182 | -102 |
Gross unrealized gains, greater than three years | 17 | 364 |
Market value, greater than three years | 24,033 | 22,469 |
Foreign banks and government debentures [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost, less than one year | 22,260 | 8,312 |
Gross unrealized losses, less than one year | ' | -4 |
Gross unrealized gains, less than one year | 223 | 36 |
Market Value, less than one year | 22,483 | 8,344 |
Amortized cost, over one year through three years | 37,599 | 49,673 |
Gross unrealized losses, over one year through three years | -43 | -3 |
Gross unrealized gains, over one through three years | 1,132 | 1,233 |
Market Value, over one year through three years | 38,688 | 50,903 |
Amortized cost, greater than three years | 27,458 | 27,287 |
Gross unrealized losses, greater than three years | -176 | -38 |
Gross unrealized gains, greater than three years | 248 | 813 |
Market value, greater than three years | $27,530 | $28,062 |
MARKETABLE_SECURITIES_Summary_
MARKETABLE SECURITIES (Summary of Investments With Continuous Unrealized Losses and Related Fair Values) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Investments with continuous unrealized losses for less than 12 months, Fair value | $37,571 | ' |
Investments with continuous unrealized losses for less than 12 months, Unrealized losses | -398 | ' |
Investments with continuous unrealized losses for 12 months or greater, Fair value | 1,496 | ' |
Investments with continuous unrealized losses for 12 months or greater, unrealized losses | -10 | ' |
Total investments with continuous unrealized losses, Fair value | 39,067 | ' |
Total investments with continuous unrealized losses, unrealized losses | -408 | ' |
Interest receivable | 1,511 | 1,490 |
Corporate debentures [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Investments with continuous unrealized losses for less than 12 months, Fair value | 19,590 | ' |
Investments with continuous unrealized losses for less than 12 months, Unrealized losses | -189 | ' |
Investments with continuous unrealized losses for 12 months or greater, Fair value | ' | ' |
Investments with continuous unrealized losses for 12 months or greater, unrealized losses | ' | ' |
Total investments with continuous unrealized losses, Fair value | 19,590 | ' |
Total investments with continuous unrealized losses, unrealized losses | -189 | ' |
Foreign banks and government debentures [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Investments with continuous unrealized losses for less than 12 months, Fair value | 17,981 | ' |
Investments with continuous unrealized losses for less than 12 months, Unrealized losses | -209 | ' |
Investments with continuous unrealized losses for 12 months or greater, Fair value | 1,496 | ' |
Investments with continuous unrealized losses for 12 months or greater, unrealized losses | -10 | ' |
Total investments with continuous unrealized losses, Fair value | 19,477 | ' |
Total investments with continuous unrealized losses, unrealized losses | ($219) | ' |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total financial assets | $143,828 | $135,819 |
Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total financial assets | 79 | 701 |
Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total financial assets | 143,749 | 135,118 |
Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total financial assets | ' | ' |
Money Market Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 79 | 701 |
Money Market Funds [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 79 | 701 |
Money Market Funds [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | ' | ' |
Money Market Funds [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | ' | ' |
Foreign banks and government debentures [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale | 88,701 | 87,309 |
Foreign banks and government debentures [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale | ' | ' |
Foreign banks and government debentures [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale | 88,701 | 87,309 |
Foreign banks and government debentures [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale | ' | ' |
Corporate debentures [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale | 55,048 | 47,809 |
Corporate debentures [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale | ' | ' |
Corporate debentures [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale | 55,048 | 47,809 |
Corporate debentures [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale | ' | ' |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
INVENTORIES [Abstract] | ' | ' |
Raw materials and components | $1,802 | $1,725 |
Work-in-progress | 784 | 1,479 |
Finished products | 11,604 | 9,341 |
Inventory, Total | $14,190 | $12,545 |
PROPERTY_AND_EQUIPMENT_NETDeta
PROPERTY AND EQUIPMENT, NET(Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | $64,609 | $55,295 | ' |
Accumulated depreciation | 47,086 | 41,706 | ' |
Property and equipment, net | 17,523 | 13,589 | ' |
Depreciation expenses | 5,004 | 6,832 | 6,451 |
Reduction to cost and accumulated depreciation | ' | 815 | ' |
Computer and video equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 55,914 | 48,182 | ' |
Accumulated depreciation | 41,905 | 37,333 | ' |
Office Furniture And Equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 6,094 | 4,619 | ' |
Accumulated depreciation | 3,424 | 2,857 | ' |
Leasehold Improvements [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 2,601 | 2,494 | ' |
Accumulated depreciation | $1,757 | $1,516 | ' |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS, NET (Schedule of Changes in Goodwill) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
GOODWILL AND INTANGIBLE ASSETS, NET [Abstract] | ' | ' |
Goodwill, beginning of year | $24,465 | $24,465 |
Acquisitions | 5,604 | ' |
Goodwill, end of year | $30,069 | $24,465 |
GOODWILL_AND_INTANGIBLE_ASSETS3
GOODWILL AND INTANGIBLE ASSETS, NET (Schedule of Intangible Assets, Net) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cost of intangible assets | $24,756 | $21,732 |
Accumulated amortization | 19,686 | 16,604 |
Intangible assets, net | 5,070 | 5,128 |
Acquired Technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cost of intangible assets | 14,939 | 12,625 |
Accumulated amortization | 10,979 | 8,814 |
Weighted average amortization period (years) | '6 years | ' |
Customer Relationships And Brand Name [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cost of intangible assets | 9,817 | 9,107 |
Accumulated amortization | $8,707 | $7,790 |
Weighted average amortization period (years) | '10 years | ' |
GOODWILL_AND_INTANGIBLE_ASSETS4
GOODWILL AND INTANGIBLE ASSETS, NET (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
GOODWILL AND INTANGIBLE ASSETS, NET [Abstract] | ' | ' | ' |
Amortization expenses | $3,082 | $3,035 | $3,848 |
Business Acquisition [Line Items] | ' | ' | ' |
Goodwill | 30,069 | 24,465 | 24,465 |
Strangeloop Networks Inc. [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Total cash consideration for acquisition | 8,402 | ' | ' |
Goodwill | 5,604 | ' | ' |
Intangible assets acquired | $3,023 | ' | ' |
GOODWILL_AND_INTANGIBLE_ASSETS5
GOODWILL AND INTANGIBLE ASSETS, NET (Future Estimated Amortization Expenses) (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
GOODWILL AND INTANGIBLE ASSETS, NET [Abstract] | ' |
2014 | $1,690 |
2015 | 961 |
2016 | 844 |
2017 | 731 |
2018 and thereafter | 844 |
Total | $5,070 |
OTHER_PAYABLES_AND_ACCRUED_EXP2
OTHER PAYABLES AND ACCRUED EXPENSES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
OTHER PAYABLES AND ACCRUED EXPENSES [Abstract] | ' | ' |
Accrued expenses and other | $5,335 | $4,461 |
Subcontractors accrual | 2,582 | 1,975 |
Accrued Taxes | 2,739 | 1,918 |
Total other payables and accrued expenses | $10,656 | $8,354 |
COMMITMENTS_AND_CONTINGENT_LIA2
COMMITMENTS AND CONTINGENT LIABILITIES (Lease Commitments) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Aggregate minimum rental payments under non-cancelable operating leases: | ' | ' | ' |
2014 | $3,109 | ' | ' |
2015 | 1,811 | ' | ' |
2016 | 995 | ' | ' |
2017 | 634 | ' | ' |
2018 and thereafter | 66 | ' | ' |
Operating leases, total | 6,615 | ' | ' |
Rent expenses | $4,496 | $4,199 | $3,922 |
COMMITMENTS_AND_CONTINGENT_LIA3
COMMITMENTS AND CONTINGENT LIABILITIES (Litigation) (Details) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 |
USD ($) | ILS | USD ($) | ILS | |
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Income tax examination accrual | ' | ' | $1,800 | 6,400 |
Tax settlement | 2,300 | 8,300 | ' | ' |
Excess tax expense recorded from settlement | $500 | ' | ' | ' |
SHAREHOLDERS_EQUITY_Narrative_
SHAREHOLDERS' EQUITY (Narrative) (Details) (USD $) | 12 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | |||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 30, 2013 | Dec. 31, 2013 |
Stock Option Plans [Member] | Stock Option Plans [Member] | Stock Option Plans [Member] | Stock Option Plans [Member] | Stock Option Plans [Member] | RSU [Member] | 2010 Employee Share Purchase Plan [Member] | 2010 Employee Share Purchase Plan [Member] | February 2010 Addendum [Member] | February 2010 Addendum [Member] | Treasury Stock [Member] | Treasury Stock [Member] | ||||
Minimum [Member] | Maximum [Member] | Stock Option Plans [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of shares, authorized amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $40,000 | ' |
Number of shares repurchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 536,557 |
Amount of shares repurchased | 7,902 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,902 |
Contractual term | ' | ' | ' | ' | ' | ' | '5 years 2 months 12 days | '6 years | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | '4 years | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' |
Shares authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' |
Ordinary shares reserved for future issuance | ' | ' | ' | 24,259,912 | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' |
Shares available for future grant | ' | ' | ' | 944,274 | ' | ' | ' | ' | ' | ' | 1,744,440 | ' | 763,306 | ' | ' |
ESPP, purchase price as a percentage of market price | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90.00% | ' | ' | ' | ' | ' |
Employee share option plan, optioon purchase price as a percentage of market price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90.00% | ' | ' | ' |
Maximum employee contribution as a percentage of net income | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' |
Shares purchased by employees | ' | ' | ' | ' | ' | ' | ' | ' | ' | 136,658 | ' | ' | ' | ' | ' |
Shares purchased, price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7.38 | ' | ' | ' | ' | ' |
In-the-money options outstanding | ' | ' | ' | 6,400,411 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding out of the money options | ' | ' | ' | 673,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Out of the money options outstanding, intrinsic value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
In-the-money options exercisable | ' | ' | ' | 3,375,344 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Out of the money options exerciable | ' | ' | ' | 198,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Out of the money options exercisable, intrinsic value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | 5,374 | 5,383 | 5,458 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average grant-date fair value of options granted | ' | ' | ' | $5.02 | $6.16 | $5.66 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation costs | ' | ' | ' | 9,629 | ' | ' | ' | ' | 1,511 | ' | ' | ' | ' | ' | ' |
Unrecognized compensation costs, period of recognition | ' | ' | ' | '1 year 7 months 21 days | ' | ' | ' | ' | '1 year 7 months 10 days | ' | ' | ' | ' | ' | ' |
Total fair value of vested options | ' | ' | ' | $11,504 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average fair value at grant date of non-vested shares | ' | ' | ' | ' | ' | ' | ' | ' | $14.48 | ' | ' | ' | ' | ' | ' |
SHAREHOLDERS_EQUITY_Schedule_o
SHAREHOLDERS' EQUITY (Schedule of Weighted Average Assumptions Used to Calculate Fair Value of Company's Stock Purchase Plan) (Details) (Employees Stock Purchase Plan [Member]) | 12 Months Ended |
Dec. 31, 2011 | |
Employees Stock Purchase Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Risk free interest rate | 0.29% |
Dividend yields | 0.00% |
Expected volatility | 36.00% |
Weighted average expected term from grant date (in years) | '9 months |
SHAREHOLDERS_EQUITY_Summary_of
SHAREHOLDERS' EQUITY (Summary of Stock Option Activity) (Details) (Stock Options [Member], USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Stock Options [Member] | ' | ' |
Number of options | ' | ' |
Outstanding at January 1, 2013 | 6,316,548 | ' |
Granted | 2,147,995 | ' |
Exercised | -890,258 | ' |
Expired | ' | ' |
Forfeited | -500,774 | ' |
Outstanding at December 31, 2013 | 7,073,511 | 6,316,548 |
Exercisable at December 31, 2013 | 3,573,344 | ' |
Vested and expected to vest at December 31, 2013 | 6,667,187 | ' |
Weighted-average exercise price | ' | ' |
Outstanding at January 1, 2013 | $10.38 | ' |
Granted | $14.31 | ' |
Exercised | $6.21 | ' |
Expired | ' | ' |
Forfeited | $15.48 | ' |
Outstanding at December 31, 2013 | $11.74 | $10.38 |
Exercisable at December 31, 2013 | $8.80 | ' |
Vested and expected to vest at December 31, 2013 | $11.54 | ' |
Weighted- average remaining contractual term (in years) | ' | ' |
Outstanding at January 1, 2013 | '2 years 7 months 13 days | '2 years 8 months 5 days |
Outstanding at December 31, 2013 | '2 years 7 months 13 days | '2 years 8 months 5 days |
Exercisable at December 31, 2013 | '1 year 3 months 15 days | ' |
Vested and expected to vest at December 31, 2013 | '2 years 6 months 7 days | ' |
Aggregate intrinsic value | ' | ' |
Outstanding at December 31, 2013 | $44,716 | $40,796 |
Exercisable at December 31, 2013 | 32,923 | ' |
Vested and expected to vest at December 31, 2013 | $43,442 | ' |
SHAREHOLDERS_EQUITY_Summary_of1
SHAREHOLDERS' EQUITY (Summary of Stock Options Outstanding By Exercise Price Range) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Outstanding | ' |
Number of options | 7,073,511 |
Exercisable | ' |
Number of options | 3,573,344 |
$3.08-4.50 [Member] | ' |
Outstanding | ' |
Ranges of exercise price, Lower limit | $3.08 |
Ranges of exercise price, Upper limit | $4.50 |
Number of options | 1,160,142 |
Weighted average remaining contractual life (years) | '8 months 12 days |
Weighted average exercise price | $4.30 |
Exercisable | ' |
Number of options | 1,160,142 |
Weighted average exercise price | $4.30 |
$5.79-7.81 [Member] | ' |
Outstanding | ' |
Ranges of exercise price, Lower limit | $5.79 |
Ranges of exercise price, Upper limit | $7.81 |
Number of options | 1,460,550 |
Weighted average remaining contractual life (years) | '1 year 11 days |
Weighted average exercise price | $7.56 |
Exercisable | ' |
Number of options | 1,342,650 |
Weighted average exercise price | $7.56 |
$11.94-14.47 [Member] | ' |
Outstanding | ' |
Ranges of exercise price, Lower limit | $11.94 |
Ranges of exercise price, Upper limit | $14.47 |
Number of options | 2,382,507 |
Weighted average remaining contractual life (years) | '4 years 7 days |
Weighted average exercise price | $13.36 |
Exercisable | ' |
Number of options | 429,152 |
Weighted average exercise price | $12.08 |
$15.09-19.30 [Member] | ' |
Outstanding | ' |
Ranges of exercise price, Lower limit | $15.09 |
Ranges of exercise price, Upper limit | $19.30 |
Number of options | 2,070,312 |
Weighted average remaining contractual life (years) | '3 years 2 months 16 days |
Weighted average exercise price | $16.98 |
Exercisable | ' |
Number of options | 641,400 |
Weighted average exercise price | $17.38 |
SHAREHOLDERS_EQUITY_Summary_of2
SHAREHOLDERS' EQUITY (Summary of RSU Activity) (Details) (Restricted Stock Units (RSUs) [Member]) | 12 Months Ended |
Dec. 31, 2013 | |
Restricted Stock Units (RSUs) [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Outstanding at January 1, 2013 | ' |
Granted | 188,382 |
Vested | ' |
Forfeited | -3,167 |
Outstanding as of December 31, 2013 | 185,215 |
SHAREHOLDERS_EQUITY_Summary_of3
SHAREHOLDERS' EQUITY (Summary of Stock-Based Compensation Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | $5,374 | $5,383 | $5,458 |
Cost of Sales [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | 53 | 66 | 66 |
Research and Development [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | 1,562 | 1,103 | 1,124 |
Selling and Marketing [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | 2,552 | 3,298 | 3,135 |
General and Administrative [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | $1,207 | $916 | $1,133 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Numerator for basic and diluted net earnings per share: | ' | ' | ' |
Net income | $18,055 | $31,757 | $21,337 |
Weighted average shares outstanding, net of treasury stock: | ' | ' | ' |
Denominator for basic net earnings per share | 44,760,197 | 43,709,278 | 41,905,732 |
Effect of dilutive securities: | ' | ' | ' |
Employee stock options | 1,956,732 | 2,879,616 | 3,870,396 |
Denominator for diluted net earnings per share | 46,716,929 | 46,588,894 | 45,776,128 |
Basic net earnings per share | $0.40 | $0.73 | $0.51 |
Diluted net earnings per share | $0.39 | $0.68 | $0.47 |
TAXES_ON_INCOME_Reconciliation
TAXES ON INCOME (Reconciliation of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
TAXES ON INCOME [Abstract] | ' | ' |
Beginning balance | $5,659 | $1,669 |
Additions for prior year tax positions | 541 | 1,216 |
Decrease related to settlement with tax authorities | -1,831 | ' |
Additions for current year tax positions | 991 | 2,774 |
Ending balance | $5,360 | $5,659 |
TAXES_ON_INCOME_Narrative_Deta
TAXES ON INCOME (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Line Items] | ' | ' | ' |
Amount added to unrecognized tax benefits derived from interest and exchange rate differences | $541 | $512 | ($7) |
Accrued interest liability on uncertain tax positions | 299 | 959 | ' |
Tax rate | 25.00% | 25.00% | 24.00% |
Tax exempt undistributed retained earnings | 134,956 | ' | ' |
Income tax liability, contingent upon distrubution of previously tax exempt earnings | 26,991 | ' | ' |
Beneficiary Enterprise Status [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Tax exempt period | '2 years | ' | ' |
Beneficiary Enterprise Status [Member] | Minimum [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Tax reduction period | '5 years | ' | ' |
Beneficiary Enterprise Status [Member] | Maximum [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Tax reduction period | '8 years | ' | ' |
Preferred Enterprise Status [Member] | 2014 and thereafter [Member] | Development Zone A [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Tax rate | 9.00% | ' | ' |
Preferred Enterprise Status [Member] | 2014 and thereafter [Member] | Elsewhere In Israel [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Tax rate | 16.00% | ' | ' |
Israeli Tax Authority [Member] | Effect of recently passed tax law | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Tax rate | 26.50% | ' | ' |
Israeli Tax Authority [Member] | Beneficiary Enterprise Status [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Tax benefit, Limitations on Use | 'The duration of tax benefits is subject to a limitation of the earlier of 7 to 10 years from the commencement year, or 12 years from the first day of the year of election. | ' | ' |
Percentage of income required to be derived from export in order to earn available tax benefits | 25.00% | ' | ' |
Withholding tax rate on dividends distributed | 20.00% | ' | ' |
Israeli Tax Authority [Member] | Beneficiary Enterprise Status [Member] | Minimum [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Tax rate | 10.00% | ' | ' |
Israeli Tax Authority [Member] | Beneficiary Enterprise Status [Member] | Maximum [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Tax rate | 25.00% | ' | ' |
Foreign Tax Authorities [Member] | U.S. Subsidiary [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Operating loss carry forward amount | 12,680 | ' | ' |
Operating loss carryforward limitations of use | 'Can be carried forward and offset against taxable income up to 20 years. | ' | ' |
Portion of NOL carry forward attributable to excess stock deductions | $6,351 | ' | ' |
Foreign Tax Authorities [Member] | U.S. Subsidiary [Member] | Minimum [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Operating loss carry forward expiration date | 31-Dec-21 | ' | ' |
Foreign Tax Authorities [Member] | U.S. Subsidiary [Member] | Maximum [Member] | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Operating loss carry forward expiration date | 31-Dec-31 | ' | ' |
TAXES_ON_INCOME_Summary_of_Tax
TAXES ON INCOME (Summary of Taxes On Income Summary) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
TAXES ON INCOME [Abstract] | ' | ' | ' |
Current taxes | $4,707 | $5,542 | $2,648 |
Deferred taxes | -699 | -1,584 | -1,358 |
Taxes on income | 4,008 | 3,958 | 1,290 |
Domestic | 1,979 | 3,531 | 301 |
Foreign | 2,029 | 427 | 989 |
Taxes on income | $4,008 | $3,958 | $1,290 |
TAXES_ON_INCOME_Summary_of_Tax1
TAXES ON INCOME (Summary of Taxes On Income By Jurisdiction) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
TAXES ON INCOME [Abstract] | ' | ' | ' |
Domestic taxes: Current taxes | $1,692 | $3,950 | $915 |
Domestic taxes: Deferred taxes | 287 | -419 | -614 |
Domestic | 1,979 | 3,531 | 301 |
Foreign taxes: Current taxes | 3,015 | 1,592 | 1,733 |
Foreign taxes: Deferred taxes | -986 | -1,165 | -744 |
Foreign | 2,029 | 427 | 989 |
Taxes on income | $4,008 | $3,958 | $1,290 |
TAXES_ON_INCOME_Significant_Co
TAXES ON INCOME (Significant Components of Deferred Tax Liabilities and Assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
TAXES ON INCOME [Abstract] | ' | ' |
Carryforward tax losses | $2,074 | $2,573 |
Temporary differences | 4,391 | 1,893 |
Intangible assets | 752 | 344 |
Deferred tax assets before valuation allowance | 7,217 | 4,810 |
Valuation allowance | -902 | -1,225 |
Net deferred tax asset | 6,315 | 3,585 |
Intangible assets, including goodwill | -2,172 | -577 |
Unrealized gains on marketable securities | -433 | -693 |
Deferred tax liability | -2,605 | -1,270 |
Net deferred tax assets | $3,710 | $2,315 |
TAXES_ON_INCOME_Significant_Co1
TAXES ON INCOME (Significant Components of Deferred Tax Liabilities and Assets By Jurisdiction) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Tax Assets And Liabilities [Line Items] | ' | ' |
Net deferred tax assets | $3,710 | $2,315 |
Israeli Tax Authority [Member] | ' | ' |
Deferred Tax Assets And Liabilities [Line Items] | ' | ' |
Non-current deferred tax liability, net | -661 | -124 |
Current deferred tax asset, net | 1,409 | 466 |
Net deferred tax assets | 748 | 342 |
Foreign Tax Authorities [Member] | ' | ' |
Deferred Tax Assets And Liabilities [Line Items] | ' | ' |
Non-current deferred tax asset, net | 1,072 | 1,070 |
Current deferred tax asset, net | 1,890 | 903 |
Net deferred tax assets | $2,962 | $1,973 |
TAXES_ON_INCOME_Reconciliation1
TAXES ON INCOME (Reconciliation Between Theoretical and Actual Tax Expense) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
TAXES ON INCOME [Abstract] | ' | ' | ' | |||
Income before taxes, as reported in the consolidated statements of income | $22,063 | $35,715 | $22,627 | |||
Statutory tax rate | 25.00% | 25.00% | 24.00% | |||
Theoretical tax expense on the above amount at the Israeli statutory tax rate | 5,516 | 8,929 | 5,430 | |||
Tax adjustment in respect of different tax rate of foreign subsidiary | 758 | -194 | 365 | |||
Non-deductible expenses and other permanent differences | 544 | 818 | 858 | |||
Deferred taxes on losses for which valuation allowance was provided, net | ' | ' | -3,512 | |||
Utilization of tax losses and deferred taxes for which valuation allowance was provided, net | -320 | -1,368 | -5,401 | |||
Stock compensation relating to stock options per ASC No. 718 | 1,343 | 1,362 | 1,310 | |||
Income taxes in respect of prior years | 582 | ' | 63 | |||
Benefiting enterprise benefits | -4,338 | [1] | -6,088 | [1] | 2,177 | [1] |
Other | -77 | 499 | ' | |||
Taxes on income | $4,008 | $3,958 | $1,290 | |||
Basic earnings per share amounts of the benefits resulting from the "Approved and Privileged Enterprise" status | $0.10 | $0.14 | ($0.05) | |||
Diluted earnings per share amounts of the benefit resulting from the "Approved and Privileged Enterprise" status | $0.09 | $0.13 | ' | |||
[1] | Basic earnings per share amounts of the benefit resulting from the "Approved and Privileged Enterprise" status$(0.05)$0.14$0.10 |
TAXES_ON_INCOME_Schedule_of_In
TAXES ON INCOME (Schedule of Income (Loss) Before Taxes on Income) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
TAXES ON INCOME [Abstract] | ' | ' | ' |
Domestic | $18,022 | $32,935 | $18,062 |
Foreign | 4,041 | 2,780 | 4,565 |
Income before taxes on income | $22,063 | $35,715 | $22,627 |
GEOGRAPHIC_INFORMATION_Schedul
GEOGRAPHIC INFORMATION (Schedule of Total Revenues by Geograpical Areas) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Revenues | $192,997 | $189,171 | $167,020 | |||
United States [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Revenues | 54,914 | 41,637 | 33,932 | |||
America - Other [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Revenues | 18,302 | 16,560 | 9,763 | |||
EMEA [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Revenues | 53,361 | [1] | 57,135 | [1] | 57,648 | [1] |
China [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Revenues | 16,908 | 19,871 | 18,497 | |||
Asia Pacific - Other [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Revenues | $49,512 | $53,968 | $47,180 | |||
[1] | Europe, the Middle East and Africa. |
GEOGRAPHIC_INFORMATION_Schedul1
GEOGRAPHIC INFORMATION (Schedule of Long-Lived Assets by Geograpical Areas) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Long-lived assets | $17,523 | $13,589 |
America (principally the United States) [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Long-lived assets | 1,739 | 1,010 |
Israel [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Long-lived assets | 13,425 | 10,552 |
EMEA - Other [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Long-lived assets | 869 | 666 |
Asia Pacific [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Long-lived assets | $1,490 | $1,361 |
SELECTED_STATEMENTS_OF_INCOME_2
SELECTED STATEMENTS OF INCOME DATA (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Financial income: | ' | ' | ' |
Interest on bank deposits and other | $2,223 | $2,476 | $1,185 |
Amortization of premiums, accretion of discounts and interest on marketable debt securities, net | 3,255 | 2,918 | 3,191 |
Financial income, total | 5,478 | 5,394 | 4,376 |
Financial expenses: | ' | ' | ' |
Bank charges | -281 | -219 | -163 |
Foreign currency translation differences, net | -703 | -383 | -13 |
Financial income and expenses, net | $4,494 | $4,792 | $4,200 |
BALANCES_AND_TRANSACTIONS_WITH2
BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Schedule of Related Party Balances Per the Balance Sheet)(Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
BALANCES AND TRANSACTIONS WITH RELATED PARTIES [Abstract] | ' | ' |
Trade receivables | $1,676 | $1,618 |
Trade payables | $961 | $1,488 |
BALANCES_AND_TRANSACTIONS_WITH3
BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Schedule of Related Party Balances Per the Income Statement) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
BALANCES AND TRANSACTIONS WITH RELATED PARTIES [Abstract] | ' | ' | ' | |||
Revenues | $1,480 | [1] | $4,232 | [1] | $6,211 | [1] |
Operating expenses, net - primarily lease, sub-contractors and communications | 4,387 | [2] | 3,809 | [2] | 3,094 | |
Purchase of property and equipment | $3,003 | $2,536 | $1,078 | |||
[1] | Distribution of the Company's products on a non-exclusive basis. | |||||
[2] | The Company leases office space and purchases other miscellaneous services from certain companies, which are considered to be related parties. In addition, the Company subleases part of the office space to related parties and provides certain services to related parties. |