DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION | 12 Months Ended |
Dec. 31, 2018shares | |
Document And Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2018 |
Entity Registrant Name | RADWARE LTD |
Entity Central Index Key | 0001094366 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 46,347,403 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 45,203 | $ 65,237 |
Available-for-sale marketable securities | 15,742 | 42,573 |
Short-term bank deposits | 255,454 | 93,151 |
Trade receivables (net of allowance for doubtful accounts and sales reserves in a total amount of $ 1,770 and $ 1,993 in 2018 and 2017, respectively) | 17,166 | 16,150 |
Other current assets and prepaid expenses | 7,071 | 14,574 |
Inventories | 18,401 | 18,772 |
Total current assets | 359,037 | 250,457 |
LONG-TERM INVESTMENTS: | ||
Available-for-sale marketable securities | 84,669 | 54,427 |
Long-term bank deposits | 88,911 | |
Severance pay fund | 2,973 | 3,251 |
Total long-term investments | 87,642 | 146,589 |
Property and equipment, net | 23,677 | 23,642 |
Intangible assets, net | 9,467 | 10,415 |
Goodwill | 32,174 | 32,174 |
Other long-term assets | 20,724 | 8,133 |
Total assets | 532,721 | 471,410 |
CURRENT LIABILITIES: | ||
Trade payables | 4,483 | 5,367 |
Deferred revenues | 83,955 | 69,829 |
Employees and payroll accruals | 17,505 | 16,470 |
Other payables and accrued expenses | 12,091 | 15,704 |
Total current liabilities | 118,034 | 107,370 |
LONG-TERM LIABILITIES: | ||
Deferred revenues | 43,796 | 43,482 |
Other long-term liabilities | 6,934 | 5,202 |
Total long-term liabilities | 50,730 | 48,684 |
Share capital - | ||
Ordinary shares of NIS 0.05 par value - Authorized: 60,000,000 at December 31, 2018 and 2017; Issued: 56,293,017 and 53,884,864 shares at December 31, 2018 and 2017, respectively; Outstanding: 46,347,403 and 44,133,954 shares at December 31, 2018 and 2017, respectively | 693 | 673 |
Additional paid-in capital | 383,536 | 349,250 |
Treasury stock (9,945,614) and (9,750,910) of Ordinary shares at December 31, 2018 and 2017, respectively | (120,717) | (116,442) |
Accumulated other comprehensive loss | (1,110) | (443) |
Retained earnings | 101,555 | 82,318 |
Total shareholders' equity | 363,957 | 315,356 |
Total liabilities and shareholders' equity | $ 532,721 | $ 471,410 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands | Dec. 31, 2018USD ($)shares | Dec. 31, 2018₪ / shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2017₪ / shares |
Statement of Financial Position [Abstract] | ||||
Allowance for doubtful accounts receivable, current and sales reserves | $ | $ 1,770 | $ 1,993 | ||
Ordinary shares, par value | ₪ / shares | ₪ 0.05 | ₪ 0.05 | ||
Ordinary shares, shares authorized | 60,000,000 | 60,000,000 | ||
Ordinary shares, shares issued | 56,293,017 | 53,884,864 | ||
Ordinary shares, shares outstanding | 46,347,403 | 44,133,954 | ||
Treasury stock, ordinary shares | 9,945,614 | 9,750,910 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | |||
Total revenues | $ 234,404 | $ 211,369 | $ 196,585 |
Cost of revenues: | |||
Total cost of revenues | 41,675 | 39,616 | 35,695 |
Gross profit | 192,729 | 171,753 | 160,890 |
Operating expenses, net: | |||
Research and development, net | 57,674 | 59,003 | 51,732 |
Sales and marketing | 111,386 | 108,744 | 103,774 |
General and administrative | 16,145 | 17,577 | 18,133 |
Other income | (6,900) | ||
Total operating expenses, net | 185,205 | 178,424 | 173,639 |
Operating income (loss) | 7,524 | (6,671) | (12,749) |
Financial income, net | 7,274 | 4,830 | 5,741 |
Income (loss) before taxes on income | 14,798 | (1,841) | (7,008) |
Taxes on income | 3,063 | 5,652 | 1,651 |
Net income (loss) | $ 11,735 | $ (7,493) | $ (8,659) |
Basic net earnings (loss) per share | $ 0.26 | $ (0.17) | $ (0.20) |
Diluted net earnings (loss) per share | $ 0.25 | $ (0.17) | $ (0.20) |
Products [Member] | |||
Revenues: | |||
Total revenues | $ 118,062 | $ 117,968 | $ 110,186 |
Cost of revenues: | |||
Total cost of revenues | 30,803 | 30,862 | 27,320 |
Services [Member] | |||
Revenues: | |||
Total revenues | 116,342 | 93,401 | 86,399 |
Cost of revenues: | |||
Total cost of revenues | $ 10,872 | $ 8,754 | $ 8,375 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 11,735 | $ (7,493) | $ (8,659) |
Unrealized gains (losses) on available-for-sale securities: | |||
Changes in unrealized gains (losses) | (866) | (530) | 68 |
Less: reclassification adjustments for losses (gains) included in net income (loss) | (18) | (1,771) | |
Other comprehensive loss before tax | (866) | (548) | (1,703) |
Income tax benefits related to components of other comprehensive loss | 199 | 125 | 426 |
Other comprehensive loss, net of tax | (667) | (423) | (1,277) |
Comprehensive income (loss) | $ 11,068 | $ (7,916) | $ (9,936) |
STATEMENTS OF CHANGES IN SHAREH
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Share capital [Member] | Additional paid-in capital [Member] | Treasury stock, at cost [Member] | Accumulated other comprehensive income [Member] | Retained earnings [Member] | Total |
Balance at Dec. 31, 2015 | $ 661 | $ 312,784 | $ (94,049) | $ 1,257 | $ 98,470 | $ 319,123 |
Balance, shares at Dec. 31, 2015 | 44,778,847 | |||||
Cumulative-effect adjustment from adoption of ASC 606 | ||||||
Repurchase of ordinary shares | (21,980) | (21,980) | ||||
Repurchase of ordinary shares, shares | (1,884,030) | |||||
Issuance of shares upon exercise of stock options | $ 2 | 1,581 | 1,583 | |||
Issuance of shares upon exercise of stock options, shares | 294,033 | |||||
Stock based compensation | 11,520 | 11,520 | ||||
Tax deficiency related to exercise of stock options | (547) | (547) | ||||
Other comprehensive loss, net of tax | (1,277) | (1,277) | ||||
Net income (loss) | (8,659) | (8,659) | ||||
Balance at Dec. 31, 2016 | $ 663 | 325,338 | (116,029) | (20) | 89,811 | $ 299,763 |
Balance, shares at Dec. 31, 2016 | 43,188,850 | 43,188,850 | ||||
Cumulative-effect adjustment from adoption of ASC 606 | ||||||
Repurchase of ordinary shares | (413) | (413) | ||||
Repurchase of ordinary shares, shares | (25,782) | |||||
Issuance of shares upon exercise of stock options | $ 10 | 10,881 | 10,891 | |||
Issuance of shares upon exercise of stock options, shares | 970,886 | |||||
Stock based compensation | 13,031 | 13,031 | ||||
Other comprehensive loss, net of tax | (423) | (423) | ||||
Net income (loss) | (7,493) | (7,493) | ||||
Balance at Dec. 31, 2017 | $ 673 | 349,250 | (116,442) | (443) | 82,318 | $ 315,356 |
Balance, shares at Dec. 31, 2017 | 44,133,954 | 44,133,954 | ||||
Cumulative-effect adjustment from adoption of ASC 606 | 7,502 | $ 7,502 | ||||
Repurchase of ordinary shares | (4,275) | (4,275) | ||||
Repurchase of ordinary shares, shares | (194,704) | |||||
Issuance of shares upon exercise of stock options | $ 20 | 21,783 | 21,803 | |||
Issuance of shares upon exercise of stock options, shares | 2,408,153 | |||||
Stock based compensation | 12,503 | 12,503 | ||||
Other comprehensive loss, net of tax | (667) | (667) | ||||
Net income (loss) | 11,735 | 11,735 | ||||
Balance at Dec. 31, 2018 | $ 693 | $ 383,536 | $ (120,717) | $ (1,110) | $ 101,555 | $ 363,957 |
Balance, shares at Dec. 31, 2018 | 46,347,403 | 46,347,403 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 11,735 | $ (7,493) | $ (8,659) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 9,782 | 11,232 | 10,372 |
Stock based compensation | 12,503 | 13,031 | 11,520 |
Gain from sale of available-for-sale marketable securities | (18) | (1,771) | |
Amortization of premiums, accretion of discounts and accrued interest on available-for-sale marketable securities, net | 1,395 | 1,546 | 1,949 |
Accrued interest on bank deposits | (2,391) | 226 | 1,179 |
Increase (decrease) in accrued severance pay, net | 323 | (210) | 401 |
Decrease (increase) in trade receivables, net | (1,169) | 3,390 | 7,003 |
Changes in deferred income taxes, net | (2,308) | 91 | (2,687) |
Decrease (increase) in other current assets and prepaid expenses | 5,035 | (7,969) | 883 |
Decrease (increase) in inventories | 371 | (1,658) | (792) |
Decrease in trade payables | (884) | (734) | (3,284) |
Increase in deferred revenues (short-term and long-term) | 14,440 | 28,781 | 12,964 |
Increase (decrease) in other payables and accrued expenses and other long-term liabilities | 419 | (8,753) | 8,855 |
Excess tax deficiency from stock-based compensation stock options | 547 | ||
Net cash provided by operating activities | 49,251 | 31,462 | 38,480 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (8,869) | (7,210) | (9,404) |
Proceeds from (investment in) other long-term assets | 40 | (6) | (53) |
Proceeds from (investment in) bank deposits, net | (71,002) | (37,200) | 31,295 |
Purchase of available-for-sale marketable securities | (47,455) | (24,595) | (16,219) |
Proceeds from maturity of available-for-sale marketable securities | 41,783 | 20,075 | 17,205 |
Proceeds from redemption of available-for-sale marketable securities | 863 | 5,535 | |
Payment for the acquisition of subsidiary, net of cash acquired | (8,269) | ||
Net cash provided by (used in) investing activities | (85,503) | (56,342) | 28,359 |
Cash flows from financing activities: | |||
Proceeds from exercise of stock options | 21,803 | 10,891 | 1,583 |
Payment of contingent consideration | (1,310) | ||
Excess tax deficiency from stock-based compensation | (547) | ||
Repurchase of ordinary shares | (4,275) | (413) | (21,980) |
Net cash provided by (used in) financing activities | 16,218 | 10,478 | (20,944) |
Increase (decrease) in cash and cash equivalents | (20,034) | (14,402) | 45,895 |
Cash and cash equivalents at the beginning of the year | 65,237 | 79,639 | 33,744 |
Cash and cash equivalents at the end of the year | 45,203 | 65,237 | 79,639 |
Supplemental disclosure of cash flow information: | |||
Cash paid during the year for income taxes | 6,415 | 14,352 | 1,730 |
Cumulative-effect adjustment from adoption of ASC 606 | $ 7,502 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [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 Cyber Security and Application Delivery solutions that help to secure the digital experience for users of business-critical applications in physical, virtual, cloud and software defined data centers. 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, Hong Kong, China and Spain. In addition, the Company has established representative office in Taiwan. The Company holds 91% of one of its Israeli subsidiaries ("the Israeli Subsidiary"). The Company's subsidiaries are engaged primarily in sales, marketing and support activities of its core products, 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, 2018, 2017 and 2016. The net income (loss) attributable to non-controlling interests represents 0.53%, (0.77%) and (1.92%) out of the consolidated net income (loss) for the years ended December 31, 2018, 2017 and 2016, respectively. c. On January 30, 2017 ("the Closing Date"), the Company acquired 100% outstanding shares of Seculert Ltd. ("Seculert"), a company based in Israel and engaged in cyber-attack detection and HTTP analytics solutions and developing user and entity behavioral analysis ("UEBA") solutions. The consideration to acquire Seculert was $10,000 in cash and additional contingent consideration of up to $10,000, based on certain milestones to be achieved. The milestone-based contingent consideration was measured at fair value at the Closing Date and recorded as a liability on the consolidated balance sheet in the amount of nil and $1,550 as of December 31, 2018 and 2017, respectively. The derived goodwill from this acquisition is attributable to additional capabilities of the Group to expand its products portfolio. Goodwill generated from this business combination is primarily attributable to synergies between the Company's and Seculert's respective products and services. The acquisition was accounted for as a business combination. At the acquisition date, the Company recorded IPR&D, technology and goodwill in amount of $7,088, $2,183 and $2,105, respectively. The estimated useful life of the IPR&D and technology is approximately 9 years. On December 31, 2017 Seculert was merged into Radware Ltd., in accordance with Israeli Tax Authority regulations. Pro forma results of operations for this acquisition have not been presented because they are not material to the consolidated results of operations. d. The Company depends on a few vendors to supply certain hardware platforms and 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. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
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 these estimates 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 consolidated 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 standalone selling price. 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 Group's revenues are denominated in United States dollars ("dollar" or "U.S. 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 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 consolidated statements of income (loss) c. Principles of consolidation: The consolidated financial statements include the accounts of the Group. 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 bank deposits. Such short-term bank deposits are stated at cost which approximates market values. Bank deposits with maturities of more than one year are included in long-term bank deposits. Deposits as of December 31, 2018 do not have contractual maturities that exceed one year. Long-term bank deposits are stated at cost which approximates market values. f. Investment in marketable securities: The Company accounts for investments in marketable securities in accordance with ASC No. 320, "Investments - Debt and Equity Securities". Management determines the appropriate classification of its investments 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 marketable securities. Available-for-sale marketable 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 consolidated statements of income (loss) is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income (loss). During the years 2018, 2017 and 2016, the Company did not record other-than-temporary impairment loss (“ ”) The Company has unrealized losses on debt securities in certain corporate bonds g. Inventories: Inventories are stated at the lower of cost or net realizable value. Inventory write-off is provided to cover risks arising from slow-moving items, technological obsolescence, excess inventories and discontinued products. Inventory write-offs totaled $3,867, $2,324, and $1,071 in 2018, 2017 and 2016, respectively, and have been included in cost of revenues of products. 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. The Company assesses the carrying value of its inventory for each reporting period to ensure inventory is reported at the lower of cost or net realizable value in accordance with ASC 330-10-35. Charges for obsolete and slow-moving inventories are recorded based upon an analysis of specific identification of obsolete inventory items and quantification of slow-moving inventory items. These assessments consider various factors, including historical usage rate, technological obsolescence, estimated current and future market values and new product introduction. In cases when there is evidence that the anticipated utility of goods, in their disposal in the ordinary course of business, will be less than the historical cost of the inventory, the Company recognizes the difference as a current period charge to earnings and carries the inventory at the reduced cost basis until it is sold or disposed of. h. Property and equipment, net: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computers, 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 5 to 9 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 2018, 2017 and 2016, 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 "Intangibles – Goodwill and Other" ("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. ASC 350 allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. If the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the two-step impairment test is performed. Alternatively, ASC 350 permits an entity to bypass the qualitative assessment for any reporting unit and proceed directly to performing the first step of the goodwill impairment test. The Company operates in one operating segment, and this segment comprises its single reporting unit. The Company performs assessment of qualitative factors during the fourth quarter of each fiscal year, or more frequently if impairment indicators are present. This analysis determined that no indicators of impairment existed for 2018, 2017 and 2016. k. Contingencies The Company is currently involved in various claims and legal proceedings. The Company reviews the status of each matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss. l. Revenue recognition: The Group's revenues are derived from sales of our products and services: · Revenues from physical products and software-based products are recognized upon shipment when control of the promised goods is transferred to the customer (at a point in time), generally when the product has been delivered. Revenues from product subscriptions, included as product revenues, are recognized ratably, on a straight-line basis, over the subscription period. · Revenues from post-contract customer support ("PCS"), which represent mainly, help-desk support and unit repairs or replacements, professional services, and ERT (emergency response team) services are recognized ratably, on a straight-line basis, over the term of the related contract, which is typically between one year and three years. Renewals of support contracts create new performance obligations that are satisfied over the term with the revenues recognized ratably, on a straight-line basis, over the renewed period. The Company's products are sold primarily through distributors and resellers, all of which are considered end-users. The Company recognizes revenues in accordance with ASC No. 606, “Revenue from Contracts with Customers” (“ASC 606”). As such, the Company recognizes revenue when (or as) it satisfies performance obligations by transferring promised products or services to its customers in an amount that reflects the consideration the Company expects to receive. Revenue is measured based on consideration specified in a contract with a customer, and excludes taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer. The Company determines revenue recognition through the following steps: Step 1: Identify the contract with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised goods or services to the customer will be one year or less. The Company enters into contracts that can include multiple performance obligations. The Company accounts for individual products and services separately if they are distinct – i.e. if a product or service is separately identifiable from other items in the contract and if a customer can benefit from it on its own or with other resources that are readily available to the customer. The Company allocates the transaction price to each performance obligation based on its relative standalone selling price (“SSP”). If the SSP is not observable through past transactions, the Company estimates the SSP In instances of contracts which revenue recognition differs from the timing of invoicing, the Company determined that those contracts generally do not include a significant financing component. The primary purpose of the invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company's products and services, not to receive or provide financing. For information regarding disaggregated revenues, please refer to Note 13 below. Contract balances: The following table provides information about trade receivables, net and contract liabilities from contracts with customers: December 31, Trade receivables, net $ 17,166 Deferred revenues (short-term contract liability) $ 83,955 Deferred revenues (Long-term contract liability) $ 43,796 Deferred revenues, which represent a contract liability, represent mostly unrecognized fees collected for support and subscription. Deferred revenues are recognized as (or when) the Company performs under the contract. During the year ended December 31, 2018, the Company recognized $91,555 that was included in deferred revenues balance at January 1, 2018. The balance of deferred revenues approximates the aggregate amount of the transaction price allocated to the remaining performance obligations at the end of reporting period. In general, the Company expects to recognize the long-term portion of deferred revenue mainly over the remaining service period of up to 3 years. 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. These estimates are based on historical sales returns, stock rotations and other known factors. Such provisions amounted to $1,537 and $1,657 as of December 31, 2018 and 2017, respectively. Costs to Obtain Contracts: The Company capitalizes sales commission as costs of obtaining a contract when they are incremental and if they are expected to be recovered. 3.2 For costs that the Company would have capitalized and amortized over one year or less, the Company has elected to apply the practical expedient and expense these contract costs as incurred. Upon adoption of ASC 606 on January 1, 2018, deferred commissions costs included within other long-term 171 121 As of December 31, 2018, the deferred commission costs capitalized is $12,640 and included within other long-term assets in the consolidated balance sheets. There was no impairment loss in relation to deferred commission costs capitalized. Adoption Date Impact: The cumulative effects of applying the new guidance to all contracts with customers that were not substantially completed as of January 1, 2018 was recorded as an adjustment to retained earnings as of the adoption date were as follows: December 31, 2017 Adjustment due to Topic 606 January 1, 2018 Trade receivables, net 16,150 (153 ) 15,997 Other long-term assets 8,133 10, 171 18, 304 Deferred tax asset, net 7,451 (2,516 ) 4,935 Current Period Impact: In accordance with ASC 606, the disclosure of the impact of adoption to the Company’s consolidated statements of income (loss) and consolidated balance sheets is as follows: Year ended December 31, 2018 As reported Impact of Adoption of ASC 606 Amounts under Topic 605 Revenues 234,404 (268 ) 234,136 Operating expenses : Sales and marketing 111,386 2,468 113,854 Taxes on income 3,063 608 3,671 Net income 11,735 3,344 8,391 As of December 31, 2018 As reported Impact of Adoption of ASC 606 Amounts under Topic 605 Assets: Trade receivables, net 17,166 (206 ) 16,960 Other long-term assets 20,724 (10,732 ) 9,992 Liabilities: Deferred revenues 83,955 (94 ) 83,861 Shareholders' equity: Retained earnings 363,957 (10,844 ) 353,113 Remaining Performance Obligations: Transaction price allocated to remaining performance obligations represents non-cancelable contracts that have not yet been recognized, which includes deferred revenue and amounts not yet received that will be recognized as revenue in future periods. The aggregate amount of the transaction price allocated to remaining performance obligations was approximately $222,094 as of December 31, 2018. The Company expects to recognize approximately 61 m. Shipping and handling fees and costs: 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 revenues. n. Cost of revenues: Cost of products is comprised of cost of software and hardware production, manuals, packaging, license fees paid to third parties, fees paid to managed security service provider (related parties), inventory write-offs and amortization of acquired technology. Cost of services is comprised of cost of post-sale customer support and hosting services. o. 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, 2018, 2017 and 2016 were immaterial. p. Research and development expenses, net: Research and development costs are charged to the consolidated statements of income (loss) as incurred. ASC No. 985-20, "Software - Costs of Software to Be Sold, Leased, or Marketed", requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. Based on the Company's product development process, technological feasibility is established upon completion of a working model. Costs incurred by the Company between completion of the working models and the point at which the products are ready for general release, have been insignificant. Therefore, all research and development costs are expensed as incurred. q. Grants: During 2016-2018, the Company received non-royalty-bearing grants from the Israel Innovation Authority ("IIA") 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, net. Research and development grants deducted from research and development expenses, net amounted to $712, $545 and $880 in 2018, 2017 and 2016, respectively. r. Accounting for stock-based compensation: The Company accounts for stock-based compensation in accordance with ASC No. 718, "Compensation-Stock Compensation" ("ASC 718"). ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company's consolidated statements of income (loss). 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 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Estimated forfeitures are based on actual historical pre-vesting forfeitures. The Company adopted ASU 2016-09 (see below) in the first quarter of fiscal year 2017. The Company elected to retain its existing accounting policy and estimate expected forfeitures. 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 units awards ("RSU") 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 are expected to be outstanding based on 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. Compensation expense related to the performance RSU granted to the Chief Executive Officer of the Company is computed using the fair value of the awards at the date of grant. Potential shares to be issued for performance share awards granted in 2018 are subject to a market condition based on the performance of the Company share price. The fair value of these awards was determined using a Monte Carlo simulation methodology. The Company recognizes compensation expenses for the value of its awards based on the accelerated attribution method over the requisite service period of the awards. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award and calculates the fair value of each award. The Monte Carlo simulation methodology 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 are expected to be outstanding. Expected term of options is based on 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 Company accounted for changes in award terms as a modification in accordance with ASC 718. A modification to the terms of an award should be treated as an exchange of the original award for a new award with total compensation cost equal to the grant-date fair value of the original award plus the incremental value measured at the same date. Under ASC 718, the calculation of the incremental value is based on the excess of the fair value of the new (modified) award based on current circumstances over the fair value of the original award measured immediately before its terms are modified based on current circumstances The fair value of the Company's stock options granted to employees and directors for the years ended December 31, 2018, 2017 and 2016 was estimated using the following weighted average assumptions: Employees' stock option plan: Year ended December 31, 2018 2017 2016 Risk free interest rate 2.78% 1.66% 1.12% Dividend yields 0% 0% 0% Expected volatility 30% 32% 34% Weighted average expected term from grant date (in years) 3.78 3.80 3.88 On January 1, 2017, the Company adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. 2016-09 (Topic 718) Compensation - Stock Compensation: Improvements to Employee Stock-Based Payment Accounting, which simplifies several aspects of the accounting for stock-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, forfeiture, statutory tax withholding requirements, and classification on the statement of cash flows. The impact of the adoption on the Company's consolidated financial statements was as follows: · Income tax accounting: The Company is required to record excess tax benefits and tax deficiencies related to stock-based compensation as income tax benefit or expense in the consolidated statements of income (loss) prospectively when share-based awards vest or are settled. Since the Company utilized the entire previously unrecognized excess tax benefits before the adoption, no a cumulative-effect was recorded in the opening retained earnings. · Cash flow presentation of excess tax benefits: The Company is required to classify excess tax benefits along with other income tax cash flows as an operating activity either prospectively or retrospectively. The Company elected to apply the change in presentation to the consolidated statements of cash flows prospectively from January 1, 2017. s. Income taxes: The Company accounts for income taxes in accordance with ASC No. 740, "Income Taxes" ("ASC 740"). 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 Group provides 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 non-current in accordance with ASU 2015-17. 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 only addressed if the first step has been satisfied (i.e. the position is more likely than not to be sustained) otherwise a full liability in respect of a tax position not meeting the more likely than not criteria is recognized. 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. t. 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 Group's cash, cash equivalents and bank deposits are invested in major banks in Israel and the U.S. The Israeli bank deposits are not insured, while the deposits made in the United States are in excess of insured limits and are not otherwise insured. 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, 2018, 70% of the Group's short-term bank deposits were deposited in major Israeli banks in Israel which are rated AAA, as determined by the Israeli affiliate of Standard & Poor's ("S&P"), and 30% were deposited in the U.S. branch of another major Israeli bank which is also rated AAA, as determined by the Israeli affiliate of S&P. As of December 31, 2018, the maximal contractual duration of any of the Company's bank deposits was 2.25 years, the weighted average duration of the Company's deposits was 1.30 years, and the weighted average time to maturity was 0.48 years. The Company's available-for-sale marketable securities include investments in foreign banks, government debentures and corporate debentures. The financial institutions that hold the Company's available-for-sale marketable securities are major U.S. financial institutions, located in the United States. The Company's management believes that the Company's available-for-sale marketable securities portfolio is a diverse portfolio of highly-rated securities and the Company's investment policy limits the amount the Company's may invest in each issuer, and accordingly, management believes that minimal credit risk exists from geographic or credit concentration with respect to these securities. As of December 31, 2018, 47% of the Company's available-for-sale marketable securities portfolio was invested in debt securities of financial institutions, 5% in debt securities of governmental institutions, and 48% in debt securities of corporations. From geographic prospective, 38% of the Company’s available-for-sale marketable securities portfolio was invested in debt securities of U.S. issuers, 29% was invested in debt securities of European issuers and 33% was invested in debt securities of other geographic-located issuers. As of December 31, 2018, 91% of the Company's available-for-sale marketable securities portfolio was rated A- or higher, as determined by S&P, 7% was rated BBB or BBB+ and 2% was rated BB-. The trade receivables of the Group 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, 2018, 2017 and 2016 were nil, $ 109 and nil, respectively. Total write offs during 2018 amounted to $ 100 and nil during 2017 and 2016. u. Employee related benefits: Severance pay: The Group's liability for severance pay recorded mainly with respect to its Israeli employees for periods prior to April 1, 2007 (the "Transition Date") is calculated pursuant to the Israeli Severance Pay Law - 1963 ("ISP Law"), based on the most recent salary of the employees multiplied by the number of years of employment as of the Transition Date. The Company recorded as expenses the increase in the severance liability, net of earnings (losses) from the related investment fund. Israeli employees were entitled to one month's salary for each year of employment, or a portion thereof. Until the Transition Date, the Group'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 Group's Israeli employees severance pay for employment periods prior to the Transition Date include profits and losses accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2018 | |
Marketable Securities [Abstract] | |
MARKETABLE SECURITIES | NOTE 3:- MARKETABLE SECURITIES Marketable securities with contractual maturities of less than one year are as follows: December 31, 2018 2017 Adjusted Gross unrealized Gross unrealized Market Adjusted Gross unrealized Gross unrealized Market cost losses gains value cost losses gains value Foreign banks and government debentures $ 6,759 $ (11 ) $ - $ 6,748 $ 22,294 $ (63 ) $ 3 $ 22,234 Corporate debentures 9,021 (27 ) - 8,994 20,354 (20 ) 5 20,339 Total available-for-sale marketable securities $ 15,780 $ (38 ) $ - $ 15,742 $ 42,648 $ (83 ) $ 8 $ 42,573 Marketable securities with contractual maturities from one to three years are as follows: December 31, 2018 2017 Adjusted Gross unrealized Gross unrealized Market Adjusted Gross unrealized Gross unrealized Market cost losses gains value cost losses gains value Foreign banks and government debentures $ 43,266 $ (358 ) $ 6 $ 42,914 $ 14,463 $ (61 ) $ 2 $ 14,404 Corporate debentures 19,881 (338 ) 5 19,548 9,554 (19 ) 32 9,567 Total available-for-sale marketable securities $ 63,147 $ (696 ) $ 11 $ 62,462 $ 24,017 $ (80 ) $ 34 $ 23,971 Marketable securities with contractual maturities of more than three years are as follows: December 31, 2018 2017 Adjusted Gross unrealized Gross unrealized Market Adjusted Gross unrealized Gross unrealized Market cost losses gains value cost losses gains value Foreign banks and government debentures $ 11,926 $ (357 ) $ - $ 11,569 $ 13,603 $ (198 ) $ - $ 13,405 Corporate debentures 10,998 (360 ) - 10,638 17,308 (257 ) - 17,051 Total available-for-sale marketable securities $ 22,924 $ (717 ) $ - $ 22,207 $ 30,911 $ (455 ) $ - $ 30,456 Investments with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values as of December 31, 2018 and 2017 were as follows: December 31, 2018 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 Value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Foreign banks and government debentures $ 26,860 $ (177 ) $ 24,966 $ (550 ) $ 51,826 $ (727 ) Corporate debentures 11,947 (122 ) 23,605 (604 ) 35,552 (726 ) Total available-for-sale marketable securities $ 38,807 $ (299 ) $ 48,571 $ (1,154 ) $ 87,378 $ (1,453 ) December 31, 2017 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 value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Foreign banks and government debentures $ 40,104 $ (275 ) $ 6,486 $ (48 ) $ 46,590 $ (323 ) Corporate debentures 29,280 (226 ) 8,173 (69 ) 37,453 (295 ) Total available-for-sale marketable securities $ 69,384 $ (501 ) $ 14,659 $ (117 ) $ 84,043 $ (618 ) As of December 31, 2018, the Company had 52 investments with continuous unrealized loss for more than 12 months. As of December 31, 2018, and 2017, interest receivable amounted to $898 and $833, respectively, and is included within available-for-sale marketable securities in the consolidated balance sheets. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 4:- FAIR VALUE MEASUREMENTS In accordance with ASC 820, "Fair Value Measurements and Disclosures", the Company measures its cash equivalents, available-for-sale marketable securities and acquisition related contingent consideration at fair value on recurring basis. Cash equivalents and marketable securities are classified within Level 1 or Level 2 since these assets are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. The liability with respect to contingent consideration regarding Seculert acquisition is classified within Level 3 since this liability is valued using valuation techniques. Some of the inputs to these models are unobservable in the market and are significant. The Company's financial assets and liabilities measured at fair value on a recurring basis, including interest receivable components consisted of the following types of instruments as of December 31, 2018, and 2017: December 31, 2018 Fair value measurements using input type Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 4,970 $ - $ - $ 4,970 Government debentures - 4,986 - 4,986 Available-for-sale: Foreign banks and government debentures - 61,231 - 61,231 Corporate debentures - 39,180 - 39,180 Total financial assets $ 4,970 $ 105,397 $ - $ 110,367 December 31, 2017 Fair value measurements using input type Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 501 $ - $ - $ 501 Available-for-sale: Foreign banks and government debentures - 50,043 - 50,043 Corporate debentures - 46,957 - 46,957 Total financial assets $ 501 $ 97,000 $ - $ 97,501 Liabilities Contingent consideration $ - $ - $ 1,550 $ 1,550 Total financial liabilities $ - $ - $ 1,550 $ 1,550 The table below presents the changes in Level 3 contingent consideration obligation measured on a recurring basis and related to business combination of Seculert from January 2017: Fair value at January 1, 2017 $ - Acquisition date fair value of contingent consideration related to investment in Seculert (see Note 1c) 1,981 Changes in the fair value of contingent consideration in Seculert (431 ) Fair value at December 31,2017 1,550 Changes in the fair value of contingent consideration in Seculert (240 ) Payment of contingent consideration in Seculert (1,310 ) Fair value at December 31, 2018 $ - As of December 31,2017, the Company estimated the fair value of the contingent consideration using Monte Carlo simulation with a discount rate of 16% and based on various probabilities for Seculert to meet the revenues milestone and the completion of the R&D development (refer to Note 1c for further details). As of December 31, 2017, the R&D milestone was not achieved and no payments to Seculert's shareholders were due. Accordingly, the Company recorded a net income of $431 in 2017. During 2018, the R&D milestone was achieved and a payment in amount of $1,310 to Seculert's shareholders was due. As of December 31, 2018, the Company estimated that no further payments will be required and accordingly, recorded a benefit of $240 in the general and administrative in order to reduce the contingent consideration fair value to nil. Changes in the contingent consideration are recorded in the consolidated statements of income (loss) in operating expenses under Research and development, net. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 5:- INVENTORIES Inventories are comprised of the following: December 31, 2018 2017 Raw materials and components $ 2,140 $ 1,963 Work-in-progress 1,894 279 Finished products 14,367 16,530 $ 18,401 $ 18,772 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 6:- PROPERTY AND EQUIPMENT, NET December 31, 2018 2017 Cost: Computer, peripheral equipment and software $ 90,054 $ 84,670 Office furniture and equipment 11,121 10,416 Leasehold improvements 6,188 5,790 107,363 100,876 Accumulated depreciation: Computer, peripheral equipment and software 72,236 67,275 Office furniture and equipment 7,710 6,684 Leasehold improvements 3,740 3,275 83,686 77,234 Property and equipment, net $ 23,677 $ 23,642 Depreciation expenses for the years ended December 31, 2018, 2017 and 2016 were $8,834, $10,001 and $ 9,253, respectively. In 2016, the Company commenced a project for a global roll-out of its Enterprise Resource Planning systems ("ERP"). The Company capitalizes costs incurred related to the system according to ASC 350-40 "Accounting for the Costs of Computer Software Developed or Obtained for Internal Use". As of December 31, 2018 and 2017, the Company capitalized $1,275 and $1,526, respectively, which is included in "Computer, peripheral equipment and software". |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 7:- INTANGIBLE ASSETS, NET Intangible assets: Weighted average amortization December 31, Period 2018 2017 (years) Cost: Acquired technology 8.2 $ 25,561 $ 25,561 Customers relationships and brand name 5.8 9,817 9,817 35,378 35,378 Accumulated amortization: Acquired technology 16,139 15,297 Customers relationships and brand name 9,772 9,666 25,911 24,963 Intangible assets, net $ 9,467 $ 10,415 Amortization expenses for the years ended December 31, 2018, 2017 and 2016 were $948, $1,231 and $1,119, respectively. Future estimated amortization expenses for the years ending: December 31, 2019 $ 1,712 2020 1,071 2021 1,037 2022 1,037 2023 and thereafter 4,610 Total $ 9,467 |
OTHER PAYABLES AND ACCRUED EXPE
OTHER PAYABLES AND ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
OTHER PAYABLES AND ACCRUED EXPENSES | NOTE 8:- OTHER PAYABLES AND ACCRUED EXPENSES December 31, 2018 2017 Accrued expenses and other $ 7,068 $ 5,939 Subcontractors accrual 1,160 1,692 Accrued taxes 3,863 6,523 Contingent consideration related to the acquisition - 1,550 $ 12,091 $ 15,704 |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 9:- COMMITMENTS AND CONTINGENT LIABILITIES a. Lease commitments: The facilities of the Group are leased under various operating lease agreements, which expire on various dates, the latest of which is on April 30, 2026. Aggregate minimum rental payments under non-cancelable operating leases as of December 31, 2018 and for each succeeding fiscal year indicated below are (in the aggregate) as follows: 2019 $ 4,661 2020 2,877 2021 1,109 2022 474 2023 and there after 1,047 $ 10,168 Total rent expenses for the years ended December 31, 2018, 2017 and 2016 were $6,047, $6,161 and $5,377 respectively (see also Note 15b). b. Litigation: 1. On April 4, 2016, F5 Networks, Inc. ("F5") filed a lawsuit against the Company’s Subsidiary ("Radware Inc.") in the United States District Court for the Western District of Washington, alleging infringement of three U.S. patents of F5 relating to Radware Inc. ADC and WAF products. On December 16, 2016, the Company filed an amended counterclaim in this action for patent infringement of a recently issued Radware patent directed to outbound link load balancing. In June 2017, the case was transferred to the United States District Court for the Northern District of California. On November 19, 2018, the Court granted partial summary judgment of non-infringement of the Company’s patent. The Company denies that any of its products infringe any valid claims of the asserted F5 patents and intends to continue to vigorously oppose F5’s claims. However, since discovery and litigation is still in a preliminary stage, the Company, based on its legal advisors, cannot estimate what impact, if any, the litigation may have on its results of operations, financial condition or cash flows. 2. On August 29, 2013, 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. The Company prevailed in its affirmative case at trial, resulting in a damages award of $6,800 plus costs. The Court also permanently enjoined F5 from infringing the Company's patents-in-suit. 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 allegedly 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. On June 26, 2014, pursuant to the parties' joint stipulation, the Court dismissed with prejudice F5's patent infringement counterclaim with respect to the Company's AppDirector product line. In June 2015, in response to the Company's Summary Judgment Motion, F5 conceded that the current version of Alteon does not infringe any of the F5 patents-in-suit and that its allegations are limited to a previous version of Alteon. On January 7, 2016, pursuant to the parties' joint stipulation, the Court dismissed with prejudice F5's trade libel and unfair competition counterclaims. On May 9, 2016, F5 accepted our offer for judgment of $40 all of F5's remaining claims and on September 7, 2016 the Court entered judgment in the same amount. This portion of the judgment is not appealable. After judgment, both the Company and F5 appealed other portions of the judgment to the Federal Circuit. F5 appealed the judgment for the Company, while the Company appealed orders that limited the amount of damages and the scope of the permanent injunction. F5 has posted a bond with the Court for the entire judgment amount in favor of the Company. The Federal Circuit affirmed the entire judgment on September 18, 2017 and remanded the case to the District Court on October 25, 2017, upon expiration of the time allowed for either party to request reconsideration of the affirmance. Upon remand, the case was re-assigned to Judge Chabria on November 21, 2017. On November 28, 2017, the Company moved to release the bond posted by F5. On December 6, 2017, the Court granted the Company's motion. On January 16, 2018 the Company filed the necessary tax documents to collect the funds, which, together with interest amounted to $6,900 and which were in turn released by the Court on January 29, 2018. The above amount was recorded as other income in the consolidated statements of income (loss) as of December 31, 2017. 3. In July 2017 the Company reached a settlement with the Israeli Tax Authorities ("ITA") regarding the Company's corporate tax returns from the years 2012, 2013 and 2014. The settlement amounted to a total payment of $10,728 (NIS 37,727). The Company had provisions for the related years in the amount of $10,950. The amount in excess (approximately $200) was recorded as a tax benefit during 2017. 4. 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 and believes that it had provided an adequate accrual to cover the costs to resolve the aforementioned legal proceedings, demands and claims. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 10:- SHAREHOLDERS' EQUITY The Company's shares are listed for trade on the NASDAQ Global Select 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 2017 the Company's Board of Directors authorized a new plan for 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, or in privately negotiated transactions. In May 2018 the Company's Board of Directors authorized a new plan for 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, or in privately negotiated transactions. 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 (the "1997 Plan") and the Directors and Consultants Option Plan (the "DC Plan" and together with the 1997 Plan, Stock Option Plans"). Under the Stock Option Plans, options may be granted to officers, directors, employees and consultants of the Group. 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 5.2 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 31,902,967 ordinary shares. As of December 31, 2018, an aggregate of 2,237,959 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, 2018, 1,000,000 ordinary shares have been reserved for option grants under this addendum. As of December 31, 2018, 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 Plan. 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. As of December 31, 2018, 1,744,440 ordinary shares are available for issuance under future ESPP. During 2018, 2017 and 2016 there was no offering under the ESPP. Modification of Stock Options: During 2016, the Board of Directors of the Company approved the repricing of 667,750 stock options for several employees and senior management, previously granted under the Stock Option Plans. As a result, the exercise price of the options was lowered to the price per share of the stock at the free market. There was no change in the number of shares subject to each option, vesting or other terms of the options. The incremental expense for the repricing of the options is approximately $1,187. A summary of employees and directors option activity under the Company's Stock Option Plans as of December 31, 2018 is as follows: Number of options Weighted-average exercise price Weighted- average remaining contractual term (in years) Aggregate intrinsic value Outstanding at January 1, 2018 6,549,043 $ 14.66 3.08 $ 31,202 Granted 1,134,100 24.82 Exercised (2,416,115 ) 14.51 Expired (5,000 ) 13.83 Forfeited (406,825 ) 16.32 Outstanding at December 31, 2018 4,855,203 $ 16.96 3.30 $ 29,774 Exercisable at December 31, 2018 1,121,414 $ 14.27 2.25 $ 9,250 Vested and expected to vest at December 31, 2018 4,475,576 $ 16.67 3.24 $ 28,253 The outstanding of options that are in-the-money at December 31, 2018, 2017 and 2016 are 3,983,216, 6,506,043 and 3,925,483, respectively. The exercisable options that are in-the-money at December 31, 2018, 2017 and 2016 are 1,112,589, 2,068,522 and 982,890, respectively. The weighted-average grant-date fair value of options granted during the years ended December 31, 2018, 2017 and 2016 was $6.67, $4.31 and $3.48, respectively. As of December 31, 2018, there was approximately $8,273 of total unrecognized compensation costs related to non-vested share-based compensation arrangements granted under the Company's stock option plans (including expenses associated with the repricing). That cost is expected to be recognized over a weighted-average period of 1.52 years. Total grant-date fair value of vested options for the year ended December 31, 2018 was approximately $ 4,625. The options outstanding under the Company's Stock Option Plans as of December 31, 2018, 2017 and 2016 have been separated into ranges of exercise price as follows: December 31, 2018 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 $ 10.04-14.74 2,408,143 2.72 $ 13.47 755,327 $ 13.28 $ 15.09-19.30 1,356,636 3.20 $ 16.80 354,136 $ 16.09 $ 20.62-27.15 1,090,424 4.70 $ 24.88 11,951 $ 22.68 4,855,203 1,121,414 The following table summarizes information relating to RSUs, as well as changes to such awards during 2018: Year ended December 31, 2018 Outstanding at January 1, 2018 1,279,502 Granted 366,826 Vested (455,988 ) Forfeited (112,431 ) Outstanding as of December 31, 2018 1,077,909 As of December 31, 2018, there was approximately $9,134 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 1.60 years. The weighted-average grant date fair value of RSUs granted during the year ended December 31, 2018, 2017 and 2016 were $23.82, Stock-based compensation was recorded in the following items within the consolidated statements of income (loss): Year ended December 31, 2018 2017 2016 Cost of revenues $ 221 $ 241 $ 180 Research and development, net 3,123 3,867 3,339 Sales and marketing 7,072 6,894 5,661 General and administrative 2,087 2,029 2,340 Total expenses $ 12,503 $ 13,031 $ 11,520 |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | NOTE 11:- EARNINGS (LOSS) PER SHARE The following table sets forth the computation of basic and diluted net earnings (loss) per share: Year ended December 31, 2018 2017 2016 Numerator for basic and diluted net earnings (loss) per share: Net income (loss) $ 11,735 $ (7,493 ) $ (8,659 ) Weighted average shares outstanding, net of treasury stock: Denominator for basic net earnings (loss) per share 45,289,296 43,475,844 43,868,221 Effect of dilutive securities: Employee stock options 2,402,572 - - Denominator for diluted net earnings (loss) per share 47,691,868 43,475,844 43,868,221 Basic net earnings (loss) per share $ 0.26 $ (0.17 ) $ (0.20 ) Diluted net earnings (loss) per share $ 0.25 $ (0.17 ) $ (0.20 ) |
TAXES ON INCOME
TAXES ON INCOME | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [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: 2018 2017 Beginning balance $ 1,534 $ 13,217 Additions for prior year tax positions 221 290 Reclassified from current tax payable 574 - Decrease for prior year tax positions (88 ) (1,245 ) Additions for current year tax positions 973 - Decreases relating to the settlement with tax authorities - (10,728 ) Ending balance $ 3,214 $ 1,534 As of December 31, 2018, 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, 2018, 2017 and 2016 amounts of $(88), $290 and $911, respectively, were (deducted from) 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, 2018, and 2017, the Company had accrued interest liability related to uncertain tax positions in the amounts of $214 and $134 respectively, which is included within income tax accrual on the consolidated balance sheets. Exchange rate differences are recorded within financial income, net, while interest is recorded within taxes on income expense. In July 2017, the Company reached a settlement with the ITA regarding the Company's corporate tax returns from the years 2012, 2013 and 2014. As a result, the Company's Israeli tax returns have been examined for all years including and prior to fiscal 2014, and the Company is no longer subject to audit for these periods. (See also Note 9b(3)). 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 2015, and the Company's U.S subsidiary is no longer subject to audit for these periods. 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: The Israeli corporate tax rate in 2018 is 23%, 2017 is 24% and 2016 is 25%. A company is taxable on its real capital gains at the corporate tax rate in the year of sale. In December 2016, the Israeli Parliament approved the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), 2016 which reduces the corporate income tax rate to 24% (instead of 25%) effective from January 1, 2017 and to 23% effective from January 1, 2018. 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 Privileged 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 Privileged 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 Privileged 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 Privileged 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 Privileged 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 years 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 Privileged 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 Privileged Enterprise's income. In addition, as a result of the amendment, tax-exempt income attributed to Privileged 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, 2018, $123,537 are tax-exempted attributable to its Privileged 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 $29,649 would be incurred as of December 31, 2018. 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 Privileged 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 decided to irrevocably implement the new law, effective January 1, 2014. Income from sources other than the "Preferred Enterprise" will be subject to the tax at the regular rate. In December 2016, the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), 2016 which includes Amendment 73 to the Law for the Encouragement of Capital Investments ("the Amendment") was published. According to the Amendment, a preferred enterprise located in development area A will be subject to a tax rate of 7.5% instead of 9% effective from January 1, 2017 and thereafter (the tax rate applicable to preferred enterprises located in other areas remains at 16%). The new tax tracks under the Amendment are as follows: Technological Preferred Enterprise - an enterprise for which total consolidated revenues of its parent company and all subsidiaries are less than NIS 10 billion. A reduced flat corporate tax rate of 12% (or 7.5% for entities located in Development Area A) on qualifying income deriving from eligible Intellectual Property (“Preferred Technology Income”), subject to satisfaction of a number of conditions, including compliance with a minimal amount or ratio of annual Research and development expenditure and Research and development employees, as well as having at least 25% of annual income derived from export. The technological preferred enterprise regulation stipulated by the law was enacted during the second quarter of 2017, effective from January 1, 2017. The Company expects to meet the requirements, as detailed above, to be considered as a technological preferred enterprise. c. Taxes on income are comprised as follows: Year ended December 31, 2018 2017 2016 Current taxes $ 5,371 $ 5,561 $ 4,338 Deferred taxes (2,308 ) 91 (2,687 ) $ 3,063 $ 5,652 $ 1,651 Domestic $ 2,049 $ 238 $ 283 Foreign 1,014 5,414 1,368 $ 3,063 $ 5,652 $ 1,651 Year ended December 31, 2018 2017 2016 Domestic taxes: Current taxes $ 2,206 $ 238 $ 494 Deferred taxes (157 ) - (211 ) 2,049 238 283 Foreign taxes: Current taxes 3,165 5,323 3,844 Deferred taxes (2,151 ) 91 (2,476 ) 1,014 5,414 1,368 $ 3,063 $ 5,652 $ 1,651 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, 2018 2017 Carryforward tax losses $ 4,743 $ 5,626 Deferred revenues 6,350 6,598 Temporary differences 5,093 5,216 Unrealized losses on marketable securities 331 132 Deferred tax assets before valuation allowance 16,517 17,572 Valuation allowance (3,247 ) (3,577 ) Net deferred tax asset 13,270 13,995 Intangible assets, including goodwill (4,047 ) (4,536 ) Depreciable assets (1,780 ) (2,008 ) Deferred tax liability (5,827 ) (6,544 ) Net deferred tax assets $ 7,443 $ 7,451 December 31, 2018 2017 Domestic deferred tax asset, net $ 1,047 $ 1,359 Foreign deferred tax asset, net 6,396 6,092 $ 7,443 $ 7,451 e. Foreign: During 2018, the Company's subsidiary in the U.S. is subject to U.S. federal tax at the rate of 21%. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the "TCJA") was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 34% to 21% effective for tax years beginning after December 31, 2017. The Company has calculated its best estimate of the impact of the TCJA in its year end income tax provision in accordance with its understanding of the TCJA and guidance available as of the date of this filing and as a result has recorded $3,249 as an additional taxes on income expense in the fourth quarter of 2017, the period in which the legislation was enacted. The SEC staff issued SAB 118 which allowed the Company to record provisional amounts during a measurement period of 12 months following the Tax Act. During 2018, the Company completed the accounting treatment related to tax effects of the Tax Act and no material differences were identified from the recorded provisional amounts. Through December 31, 2018, the U.S. subsidiary had a U.S. federal loss carry forward of $4,761, which can be carried forward and offset against taxable income up to 20 years, expiring between fiscal 2024 and fiscal 2027. 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. Income taxes of non-Israeli subsidiaries: Non-Israeli subsidiaries are taxed according to the tax laws in their respective countries of residence. The Company does not provide deferred tax liabilities when it intends to reinvest earnings of foreign subsidiaries indefinitely. g. 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, 2018 2017 2016 Income (loss) before taxes, as reported in the consolidated statements of income (loss) $ 14,798 $ (1,841 ) $ (7,008 ) Statutory tax rate 23 % 24 % 25 % Theoretical tax expense (benefit) on the above amount at the Israeli statutory tax rate $ 3,404 $ (442 ) $ (1,752 ) Tax adjustment in respect of different tax rate of foreign subsidiary 65 334 427 Non-deductible expenses and other permanent differences (340 ) 375 200 Deferred taxes on losses for which valuation allowance was provided, net 743 1,288 463 Utilization of tax losses and deferred taxes for which valuation allowance was provided, net (2,259 ) (709 ) - Stock compensation relating to stock options per ASC No. 718 1,073 1,976 1,342 Income taxes in respect of prior years 273 (1,038 ) - Change of tax rate 696 3,249 - Approved, Privileged and Preferred enterprise loss (benefits) (*) (684 ) 347 916 Other 92 272 55 Actual tax expense $ 3,063 $ 5,652 $ 1,651 (*) Basic earnings per share amounts of the benefit resulting from the "Approved, Privileged and Preferred Enterprise" status $ 0.00 $ 0.00 $ 0.03 Diluted earnings per share amounts of the benefit resulting from the "Approved, Privileged and Preferred Enterprise" status $ 0.00 $ 0.00 $ 0.03 h. Income (loss) before taxes on income is comprised as follows: Year ended December 31, 2018 2017 2016 Domestic $ 9,009 $ (5,918 ) $ (11,475 ) Foreign 5,789 4,077 4,467 Income (loss) before taxes on income $ 14,798 $ (1,841 ) $ (7,008 ) |
GEOGRAPHIC INFORMATION
GEOGRAPHIC INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Segments, Geographical Areas [Abstract] | |
GEOGRAPHIC INFORMATION | NOTE 13:- GEOGRAPHIC INFORMATION 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, 2018, 2017 and 2016 from a geographical perspective: Year ended December 31, 2018 2017 2016 Revenues from sales to customers located at: The United States $ 82,990 $ 78,464 $ 67,953 America - other 19,501 19,437 16,780 EMEA *) 51,888 45,077 42,104 Germany 23,863 11,512 11,620 Asia Pacific 56,162 56,879 58,128 $ 234,404 $ 211,369 $ 196,585 *) Europe, the Middle East and Africa – without Germany. The following table presents long-lived assets as of December 31, 2018 and 2017 from a geographical perspective: December 31, 2018 2017 Long-lived assets, by geographic region: America (principally the United States) $ 1,736 $ 1,822 Israel 20,856 20,832 EMEA - other 253 251 Asia Pacific 832 737 $ 23,677 $ 23,642 |
SELECTED STATEMENTS OF INCOME D
SELECTED STATEMENTS OF INCOME DATA | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 Financial income, net: Interest on bank deposits and other $ 5,279 $ 3,528 $ 2,947 Amortization of premiums, accretion of discounts and interest on available-for-sale marketable securities, net 2,304 2,008 1,813 Gain from sale of available-for-sale marketable securities - 18 1,771 Bank charges (113 ) (89 ) (116 ) Foreign currency translation differences, net (196 ) (635 ) (674 ) $ 7,274 $ 4,830 $ 5,741 |
BALANCES AND TRANSACTIONS WITH
BALANCES AND TRANSACTIONS WITH RELATED PARTIES | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [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 members of the Company's Board of Directors, management or shareholders have interest: a. The following related party balances are included in the consolidated balance sheets: December 31, 2018 2017 Trade receivables and prepaid expenses $ 963 $ 1,207 Trade payables and accrued expenses $ 604 $ 205 b. The following related party transactions are included in the consolidated statements of income (loss): Year ended December 31, 2018 2017 2016 Revenues (1) $ 1,324 $ 2,547 $ 1,766 Cost of revenues (2) $ 6,956 $ 4,280 $ 3,095 Operating expenses, net - primarily lease, sub-contractors and communications (3) $ 4,757 $ 4,853 $ 4,546 Purchase of property and equipment $ 2,761 $ 1,663 $ 1,869 (1) Distribution of the Company's products on a non-exclusive basis. (2) Related to cost of product purchased from one of the related companies. (3) The Company leases office space and purchases other miscellaneous services from certain companies, which are considered to be related parties. In addition, the Company provides certain services to related parties. |
EVENTS AFTER THE REPORTING DATE
EVENTS AFTER THE REPORTING DATE | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
EVENTS AFTER THE REPORTING DATE | NOTE 16:- EVENTS AFTER THE REPORTING DATE In March 2019, the Company completed the acquisition of Kaalbi Technologies Private Ltd. (“ShieldSquare”) in Bot mitigation and Bot management solutions for a total consideration of $14,000. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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 these estimates 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 consolidated 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 standalone selling price. 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 Group's revenues are denominated in United States dollars ("dollar" or "U.S. 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 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 consolidated statements of income (loss) |
Principles of consolidation | c. Principles of consolidation: The consolidated financial statements include the accounts of the Group. 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 bank deposits. Such short-term bank deposits are stated at cost which approximates market values. Bank deposits with maturities of more than one year are included in long-term bank deposits. Deposits as of December 31, 2018 do not have contractual maturities that exceed one year. Long-term bank 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 securities in accordance with ASC No. 320, "Investments - Debt and Equity Securities". Management determines the appropriate classification of its investments 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 marketable securities. Available-for-sale marketable 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 consolidated statements of income (loss) is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income (loss). During the years 2018, 2017 and 2016, the Company did not record other-than-temporary impairment loss (“ ”) The Company has unrealized losses on debt securities in certain corporate bonds |
Inventories | g. Inventories: Inventories are stated at the lower of cost or net realizable value. Inventory write-off is provided to cover risks arising from slow-moving items, technological obsolescence, excess inventories and discontinued products. Inventory write-offs totaled $3,867, $2,324, and $1,071 in 2018, 2017 and 2016, respectively, and have been included in cost of revenues of products. 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. The Company assesses the carrying value of its inventory for each reporting period to ensure inventory is reported at the lower of cost or net realizable value in accordance with ASC 330-10-35. Charges for obsolete and slow-moving inventories are recorded based upon an analysis of specific identification of obsolete inventory items and quantification of slow-moving inventory items. These assessments consider various factors, including historical usage rate, technological obsolescence, estimated current and future market values and new product introduction. In cases when there is evidence that the anticipated utility of goods, in their disposal in the ordinary course of business, will be less than the historical cost of the inventory, the Company recognizes the difference as a current period charge to earnings and carries the inventory at the reduced cost basis until it is sold or disposed of. |
Property and equipment, net | h. Property and equipment, net: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computers, 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 5 to 9 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 2018, 2017 and 2016, 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 "Intangibles – Goodwill and Other" ("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. ASC 350 allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. If the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the two-step impairment test is performed. Alternatively, ASC 350 permits an entity to bypass the qualitative assessment for any reporting unit and proceed directly to performing the first step of the goodwill impairment test. The Company operates in one operating segment, and this segment comprises its single reporting unit. The Company performs assessment of qualitative factors during the fourth quarter of each fiscal year, or more frequently if impairment indicators are present. This analysis determined that no indicators of impairment existed for 2018, 2017 and 2016. |
Contingencies | k. Contingencies The Company is currently involved in various claims and legal proceedings. The Company reviews the status of each matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss. |
Revenue recognition | l. Revenue recognition: The Group's revenues are derived from sales of our products and services: · Revenues from physical products and software-based products are recognized upon shipment when control of the promised goods is transferred to the customer (at a point in time), generally when the product has been delivered. Revenues from product subscriptions, included as product revenues, are recognized ratably, on a straight-line basis, over the subscription period. · Revenues from post-contract customer support ("PCS"), which represent mainly, help-desk support and unit repairs or replacements, professional services, and ERT (emergency response team) services are recognized ratably, on a straight-line basis, over the term of the related contract, which is typically between one year and three years. Renewals of support contracts create new performance obligations that are satisfied over the term with the revenues recognized ratably, on a straight-line basis, over the renewed period. The Company's products are sold primarily through distributors and resellers, all of which are considered end-users. The Company recognizes revenues in accordance with ASC No. 606, “Revenue from Contracts with Customers” (“ASC 606”). As such, the Company recognizes revenue when (or as) it satisfies performance obligations by transferring promised products or services to its customers in an amount that reflects the consideration the Company expects to receive. Revenue is measured based on consideration specified in a contract with a customer, and excludes taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer. The Company determines revenue recognition through the following steps: Step 1: Identify the contract with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised goods or services to the customer will be one year or less. The Company enters into contracts that can include multiple performance obligations. The Company accounts for individual products and services separately if they are distinct – i.e. if a product or service is separately identifiable from other items in the contract and if a customer can benefit from it on its own or with other resources that are readily available to the customer. The Company allocates the transaction price to each performance obligation based on its relative standalone selling price (“SSP”). If the SSP is not observable through past transactions, the Company estimates the SSP In instances of contracts which revenue recognition differs from the timing of invoicing, the Company determined that those contracts generally do not include a significant financing component. The primary purpose of the invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company's products and services, not to receive or provide financing. For information regarding disaggregated revenues, please refer to Note 13 below. Contract balances: The following table provides information about trade receivables, net and contract liabilities from contracts with customers: December 31, Trade receivables, net $ 17,166 Deferred revenues (short-term contract liability) $ 83,955 Deferred revenues (Long-term contract liability) $ 43,796 Deferred revenues, which represent a contract liability, represent mostly unrecognized fees collected for support and subscription. Deferred revenues are recognized as (or when) the Company performs under the contract. During the year ended December 31, 2018, the Company recognized $91,555 that was included in deferred revenues balance at January 1, 2018. The balance of deferred revenues approximates the aggregate amount of the transaction price allocated to the remaining performance obligations at the end of reporting period. In general, the Company expects to recognize the long-term portion of deferred revenue mainly over the remaining service period of up to 3 years. 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. These estimates are based on historical sales returns, stock rotations and other known factors. Such provisions amounted to $1,537 and $1,657 as of December 31, 2018 and 2017, respectively. Costs to Obtain Contracts: The Company capitalizes sales commission as costs of obtaining a contract when they are incremental and if they are expected to be recovered. 3.2 For costs that the Company would have capitalized and amortized over one year or less, the Company has elected to apply the practical expedient and expense these contract costs as incurred. Upon adoption of ASC 606 on January 1, 2018, deferred commissions costs included within other long-term 171 121 As of December 31, 2018, the deferred commission costs capitalized is $12,640 and included within other long-term assets in the consolidated balance sheets. There was no impairment loss in relation to deferred commission costs capitalized. Adoption Date Impact: The cumulative effects of applying the new guidance to all contracts with customers that were not substantially completed as of January 1, 2018 was recorded as an adjustment to retained earnings as of the adoption date were as follows: December 31, 2017 Adjustment due to Topic 606 January 1, 2018 Trade receivables, net 16,150 (153 ) 15,997 Other long-term assets 8,133 10, 171 18, 304 Deferred tax asset, net 7,451 (2,516 ) 4,935 Current Period Impact: In accordance with ASC 606, the disclosure of the impact of adoption to the Company’s consolidated statements of income (loss) and consolidated balance sheets is as follows: Year ended December 31, 2018 As reported Impact of Adoption of ASC 606 Amounts under Topic 605 Revenues 234,404 (268 ) 234,136 Operating expenses : Sales and marketing 111,386 2,468 113,854 Taxes on income 3,063 608 3,671 Net income 11,735 3,344 8,391 As of December 31, 2018 As reported Impact of Adoption of ASC 606 Amounts under Topic 605 Assets: Trade receivables, net 17,166 (206 ) 16,960 Other long-term assets 20,724 (10,732 ) 9,992 Liabilities: Deferred revenues 83,955 (94 ) 83,861 Shareholders' equity: Retained earnings 363,957 (10,844 ) 353,113 Remaining Performance Obligations: Transaction price allocated to remaining performance obligations represents non-cancelable contracts that have not yet been recognized, which includes deferred revenue and amounts not yet received that will be recognized as revenue in future periods. The aggregate amount of the transaction price allocated to remaining performance obligations was approximately $222,094 as of December 31, 2018. The Company expects to recognize approximately 61 |
Shipping And handling fees and costs | m. Shipping and handling fees and costs: 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 revenues. |
Cost of revenues | n. Cost of revenues: Cost of products is comprised of cost of software and hardware production, manuals, packaging, license fees paid to third parties, fees paid to managed security service provider (related parties), inventory write-offs and amortization of acquired technology. Cost of services is comprised of cost of post-sale customer support and hosting services. |
Warranty costs | o. 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, 2018, 2017 and 2016 were immaterial. |
Research and development expenses, net | p. Research and development expenses, net: Research and development costs are charged to the consolidated statements of income (loss) as incurred. ASC No. 985-20, "Software - Costs of Software to Be Sold, Leased, or Marketed", requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. Based on the Company's product development process, technological feasibility is established upon completion of a working model. Costs incurred by the Company between completion of the working models and the point at which the products are ready for general release, have been insignificant. Therefore, all research and development costs are expensed as incurred. |
Grants | q. Grants: During 2016-2018, the Company received non-royalty-bearing grants from the Israel Innovation Authority ("IIA") 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, net. Research and development grants deducted from research and development expenses, net amounted to $712, $545 and $880 in 2018, 2017 and 2016, respectively. |
Accounting for stock-based compensation | r. Accounting for stock-based compensation: The Company accounts for stock-based compensation in accordance with ASC No. 718, "Compensation-Stock Compensation" ("ASC 718"). ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company's consolidated statements of income (loss). 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 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Estimated forfeitures are based on actual historical pre-vesting forfeitures. The Company adopted ASU 2016-09 (see below) in the first quarter of fiscal year 2017. The Company elected to retain its existing accounting policy and estimate expected forfeitures. 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 units awards ("RSU") 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 are expected to be outstanding based on 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. Compensation expense related to the performance RSU granted to the Chief Executive Officer of the Company is computed using the fair value of the awards at the date of grant. Potential shares to be issued for performance share awards granted in 2018 are subject to a market condition based on the performance of the Company share price. The fair value of these awards was determined using a Monte Carlo simulation methodology. The Company recognizes compensation expenses for the value of its awards based on the accelerated attribution method over the requisite service period of the awards. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award and calculates the fair value of each award. The Monte Carlo simulation methodology 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 are expected to be outstanding. Expected term of options is based on 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 Company accounted for changes in award terms as a modification in accordance with ASC 718. A modification to the terms of an award should be treated as an exchange of the original award for a new award with total compensation cost equal to the grant-date fair value of the original award plus the incremental value measured at the same date. Under ASC 718, the calculation of the incremental value is based on the excess of the fair value of the new (modified) award based on current circumstances over the fair value of the original award measured immediately before its terms are modified based on current circumstances The fair value of the Company's stock options granted to employees and directors for the years ended December 31, 2018, 2017 and 2016 was estimated using the following weighted average assumptions: Employees' stock option plan: Year ended December 31, 2018 2017 2016 Risk free interest rate 2.78% 1.66% 1.12% Dividend yields 0% 0% 0% Expected volatility 30% 32% 34% Weighted average expected term from grant date (in years) 3.78 3.80 3.88 On January 1, 2017, the Company adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. 2016-09 (Topic 718) Compensation - Stock Compensation: Improvements to Employee Stock-Based Payment Accounting, which simplifies several aspects of the accounting for stock-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, forfeiture, statutory tax withholding requirements, and classification on the statement of cash flows. The impact of the adoption on the Company's consolidated financial statements was as follows: · Income tax accounting: The Company is required to record excess tax benefits and tax deficiencies related to stock-based compensation as income tax benefit or expense in the consolidated statements of income (loss) prospectively when share-based awards vest or are settled. Since the Company utilized the entire previously unrecognized excess tax benefits before the adoption, no a cumulative-effect was recorded in the opening retained earnings. · Cash flow presentation of excess tax benefits: The Company is required to classify excess tax benefits along with other income tax cash flows as an operating activity either prospectively or retrospectively. The Company elected to apply the change in presentation to the consolidated statements of cash flows prospectively from January 1, 2017. |
Income taxes | s. Income taxes: The Company accounts for income taxes in accordance with ASC No. 740, "Income Taxes" ("ASC 740"). 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 Group provides 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 non-current in accordance with ASU 2015-17. 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 only addressed if the first step has been satisfied (i.e. the position is more likely than not to be sustained) otherwise a full liability in respect of a tax position not meeting the more likely than not criteria is recognized. 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 | t. 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 Group's cash, cash equivalents and bank deposits are invested in major banks in Israel and the U.S. The Israeli bank deposits are not insured, while the deposits made in the United States are in excess of insured limits and are not otherwise insured. 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, 2018, 70% of the Group's short-term bank deposits were deposited in major Israeli banks in Israel which are rated AAA, as determined by the Israeli affiliate of Standard & Poor's ("S&P"), and 30% were deposited in the U.S. branch of another major Israeli bank which is also rated AAA, as determined by the Israeli affiliate of S&P. As of December 31, 2018, the maximal contractual duration of any of the Company's bank deposits was 2.25 years, the weighted average duration of the Company's deposits was 1.30 years, and the weighted average time to maturity was 0.48 years. The Company's available-for-sale marketable securities include investments in foreign banks, government debentures and corporate debentures. The financial institutions that hold the Company's available-for-sale marketable securities are major U.S. financial institutions, located in the United States. The Company's management believes that the Company's available-for-sale marketable securities portfolio is a diverse portfolio of highly-rated securities and the Company's investment policy limits the amount the Company's may invest in each issuer, and accordingly, management believes that minimal credit risk exists from geographic or credit concentration with respect to these securities. As of December 31, 2018, 47% of the Company's available-for-sale marketable securities portfolio was invested in debt securities of financial institutions, 5% in debt securities of governmental institutions, and 48% in debt securities of corporations. From geographic prospective, 38% of the Company’s available-for-sale marketable securities portfolio was invested in debt securities of U.S. issuers, 29% was invested in debt securities of European issuers and 33% was invested in debt securities of other geographic-located issuers. As of December 31, 2018, 91% of the Company's available-for-sale marketable securities portfolio was rated A- or higher, as determined by S&P, 7% was rated BBB or BBB+ and 2% was rated BB-. The trade receivables of the Group 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, 2018, 2017 and 2016 were nil, $ 109 and nil, respectively. Total write offs during 2018 amounted to $ 100 and nil during 2017 and 2016. |
Employee related benefits | u. Employee related benefits: Severance pay: The Group's liability for severance pay recorded mainly with respect to its Israeli employees for periods prior to April 1, 2007 (the "Transition Date") is calculated pursuant to the Israeli Severance Pay Law - 1963 ("ISP Law"), based on the most recent salary of the employees multiplied by the number of years of employment as of the Transition Date. The Company recorded as expenses the increase in the severance liability, net of earnings (losses) from the related investment fund. Israeli employees were entitled to one month's salary for each year of employment, or a portion thereof. Until the Transition Date, the Group'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 Group's Israeli employees severance pay for employment periods prior to the Transition Date 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 the ISP Law or employment agreements. Effective as of the Transition Date, the Group's agreements with employees in Israel are in accordance with Section 14 of the ISP Law which provide that the employer's contributions to severance pay fund shall cover its entire severance obligation with respect to period of employment subsequent to the Transition Date. Upon termination, the release of the contributed amounts from the fund to the employee shall relieve the employer from any further severance obligation and no additional payments are required to be made by the employer to the employee. As a result, the related obligation and amounts deposited in respect of such obligation are not stated on the consolidated balance sheets, as the employer is legally released from severance obligation to employees once the amounts have been fully deposited, and the Company has no legal ownership in the amounts deposited. Consequently, effective from the Transition Date, 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, 2018, 2017 and 2016 amounted to approximately $4,259, $3,296 and $3,603, respectively. Accrued severance pay is included in other long-term liabilities in the consolidated balance sheets. |
Fair value of financial instruments | v. Fair value of financial instruments: The Company measures its cash equivalents, bank deposits, available-for-sale marketable securities and contingent consideration 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. The carrying amounts of cash equivalents, trade receivables, trade payables, short-term bank deposits, other current assets and prepaid expenses and other payables and accrued expenses, approximate at fair value because of their generally short maturities. |
Comprehensive income (loss) | w. Comprehensive income (loss): The Company accounts for comprehensive income (loss) in accordance with ASC No. 220, "Comprehensive Income." This statement establishes standards for the reporting and display of comprehensive income (loss) and its components in a full set of general purpose financial statements. Comprehensive income (loss) generally represents all changes in shareholders' equity during the period except those resulting from investments by, or distributions to, shareholders. The Company determined that its only item of other comprehensive income (loss) relates |
Treasury stock | x. 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 (loss) per share | y. Basic and diluted net income (loss) per share: Basic net income (loss) per share is computed based on the weighted average number of ordinary shares outstanding during each period. Diluted net income (loss) per share is computed based on the weighted average number of ordinary shares outstanding during each period, plus potential dilutive ordinary shares considered outstanding during the period, if any, in accordance with ASC No. 260, "Earnings Per Share". The total number of ordinary shares related to outstanding stock options excluded from the calculation of diluted income (loss) per share as they would have been anti-dilutive was 1,166,488, 981,750 and 4,665,638 for the years ended December 31, 2018, 2017 and 2016, respectively. |
Business combinations | z. Business combinations: The Company accounted for business combination in accordance with ASC No. 805, "Business Combinations" ("ASC 805"). 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. |
New accounting pronouncements not yet effective | aa. New accounting pronouncements not yet effective: In February 2016, the FASB issued ASU 2016-02. ASU 2016-02 changes the current lease accounting standard by requiring the recognition of lease assets and lease liabilities for all leases, including those currently classified as operating leases. The guidance establishes a right-of-use model ("ROU") that requires a lessee to recognize a ROU asset and lease liability on the consolidated The Company expects adoption of the standard to have a material impact on its consolidated balance sheets which will result in the recognition of ROU assets and lease liabilities of approximately between $18,931 and $23,137 at January 1, 2019. The most significant impact from recognition of ROU assets and lease liabilities relates to office premises. The Company's financial income, net will be impacted by the revaluation of the lease liabilities in non USD denominated currencies. In January 2017, the FASB issued Accounting Standards Update No. 2017-04 (ASU 2017-04) “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” ASU 2017-04 eliminates step two of the goodwill impairment test and specifies that goodwill impairment should be measured by comparing the fair value of a reporting unit with its carrying amount. Additionally, the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets should be disclosed. ASU 2017-04 is effective for annual or interim goodwill impairment tests performed in fiscal years beginning after December 15, 2019; early adoption is permitted. The Company does not expect that this new guidance will have a material impact on the Company’s consolidated In August 2018, the FASB issued ASU 2018-15, "Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." The new standard requires capitalization of the implementation costs incurred in a cloud computing arrangement that is a service contract, with the requirements for capitalization costs incurred to develop or obtain internal-use software. Capitalized implementation costs will be required to be amortized over the term of the arrangement, beginning when the module or component of the cloud computing arrangement that is a service contract is ready for its intended use. The standard will be effective for the Company beginning January 1, 2020, with early adoption permitted. The Company is evaluating the impact of adopting this new accounting guidance on its consolidated financial statements. |
Impact of recently issued accounting pronouncements | ab. Impact of recently issued accounting pronouncements: In May 2014, the Financial Accounting Standards Board (“FASB”) issued a new standard related to revenue recognition. Under the standard, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted Accounting Standard Update (“ASU”) No. 2014-09 utilizing the modified retrospective method for all open contracts on the date of initial application. The cumulative impact of applying the new guidance to all contracts with customers that were not substantially completed as of January 1, 2018 was recorded as an adjustment to retained earnings as of the adoption date. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported under the historic accounting under Revenue Recognition Topic 605 ("ASC No. 605"). In addition, the Company also implemented the guidance in ASC No. 340-40, "Other Assets and Deferred Costs". Under the historic accounting policy, sales commissions were expensed as incurred. The current standard requires the capitalization of all incremental costs that the Company incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained, provided the Company expects to recover the costs. For further information see Note 2l. |
Reclassifications | ac. Reclassifications: Certain amounts in prior years' consolidated financial statements have been reclassified to conform to the current year's presentation. An amount of $ 2,322 related to withholding tax and advances on surplus expenses was reclassified from other long-term liabilities to other receivables and prepaid expenses. The reclassification had no effect on previously reported net income (loss) or shareholders' equity. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Property and Equipment Annual Depreciation Rates | Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computers, 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, 2018 2017 2016 Risk free interest rate 2.78% 1.66% 1.12% Dividend yields 0% 0% 0% Expected volatility 30% 32% 34% Weighted average expected term from grant date (in years) 3.78 3.80 3.88 |
Schedule of Cumulative Effects of Applying New Accounting Pronouncements | The cumulative effects of applying the new guidance to all contracts with customers that were not substantially completed as of January 1, 2018 was recorded as an adjustment to retained earnings as of the adoption date were as follows: December 31, 2017 Adjustment due to Topic 606 January 1, 2018 Trade receivables, net 16,150 (153 ) 15,997 Other long-term assets 8,133 10, 171 18, 304 Deferred tax asset, net 7,451 (2,516 ) 4,935 Current Period Impact: In accordance with ASC 606, the disclosure of the impact of adoption to the Company’s consolidated statements of income (loss) and consolidated balance sheets is as follows: Year ended December 31, 2018 As reported Impact of Adoption of ASC 606 Amounts under Topic 605 Revenues 234,404 (268 ) 234,136 Operating expenses : Sales and marketing 111,386 2,468 113,854 Taxes on income 3,063 608 3,671 Net income 11,735 3,344 8,391 As of December 31, 2018 As reported Impact of Adoption of ASC 606 Amounts under Topic 605 Assets: Trade receivables, net 17,166 (206 ) 16,960 Other long-term assets 20,724 (10,732 ) 9,992 Liabilities: Deferred revenues 83,955 (94 ) 83,861 Shareholders' equity: Retained earnings 363,957 (10,844 ) 353,113 |
Schedule of Trade Receivables and Contract Liabilities from Contracts with Customers | The following table provides information about trade receivables, net and contract liabilities from contracts with customers: December 31, Trade receivables, net $ 17,166 Deferred revenues (short-term contract liability) $ 83,955 Deferred revenues (Long-term contract liability) $ 43,796 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 Adjusted Gross unrealized Gross unrealized Market Adjusted Gross unrealized Gross unrealized Market cost losses gains value cost losses gains value Foreign banks and government debentures $ 6,759 $ (11 ) $ - $ 6,748 $ 22,294 $ (63 ) $ 3 $ 22,234 Corporate debentures 9,021 (27 ) - 8,994 20,354 (20 ) 5 20,339 Total available-for-sale marketable securities $ 15,780 $ (38 ) $ - $ 15,742 $ 42,648 $ (83 ) $ 8 $ 42,573 Marketable securities with contractual maturities from one to three years are as follows: December 31, 2018 2017 Adjusted Gross unrealized Gross unrealized Market Adjusted Gross unrealized Gross unrealized Market cost losses gains value cost losses gains value Foreign banks and government debentures $ 43,266 $ (358 ) $ 6 $ 42,914 $ 14,463 $ (61 ) $ 2 $ 14,404 Corporate debentures 19,881 (338 ) 5 19,548 9,554 (19 ) 32 9,567 Total available-for-sale marketable securities $ 63,147 $ (696 ) $ 11 $ 62,462 $ 24,017 $ (80 ) $ 34 $ 23,971 Marketable securities with contractual maturities of more than three years are as follows: December 31, 2018 2017 Adjusted Gross unrealized Gross unrealized Market Adjusted Gross unrealized Gross unrealized Market cost losses gains value cost losses gains value Foreign banks and government debentures $ 11,926 $ (357 ) $ - $ 11,569 $ 13,603 $ (198 ) $ - $ 13,405 Corporate debentures 10,998 (360 ) - 10,638 17,308 (257 ) - 17,051 Total available-for-sale marketable securities $ 22,924 $ (717 ) $ - $ 22,207 $ 30,911 $ (455 ) $ - $ 30,456 |
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, 2018 and 2017 were as follows: December 31, 2018 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 Value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Foreign banks and government debentures $ 26,860 $ (177 ) $ 24,966 $ (550 ) $ 51,826 $ (727 ) Corporate debentures 11,947 (122 ) 23,605 (604 ) 35,552 (726 ) Total available-for-sale marketable securities $ 38,807 $ (299 ) $ 48,571 $ (1,154 ) $ 87,378 $ (1,453 ) December 31, 2017 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 value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Foreign banks and government debentures $ 40,104 $ (275 ) $ 6,486 $ (48 ) $ 46,590 $ (323 ) Corporate debentures 29,280 (226 ) 8,173 (69 ) 37,453 (295 ) Total available-for-sale marketable securities $ 69,384 $ (501 ) $ 14,659 $ (117 ) $ 84,043 $ (618 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The Company's financial assets and liabilities measured at fair value on a recurring basis, including interest receivable components consisted of the following types of instruments as of December 31, 2018, and 2017: December 31, 2018 Fair value measurements using input type Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 4,970 $ - $ - $ 4,970 Government debentures - 4,986 - 4,986 Available-for-sale: Foreign banks and government debentures - 61,231 - 61,231 Corporate debentures - 39,180 - 39,180 Total financial assets $ 4,970 $ 105,397 $ - $ 110,367 December 31, 2017 Fair value measurements using input type Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 501 $ - $ - $ 501 Available-for-sale: Foreign banks and government debentures - 50,043 - 50,043 Corporate debentures - 46,957 - 46,957 Total financial assets $ 501 $ 97,000 $ - $ 97,501 Liabilities Contingent consideration $ - $ - $ 1,550 $ 1,550 Total financial liabilities $ - $ - $ 1,550 $ 1,550 |
Schedule of Changes in Level 3 Contingent Consideration Obligation Measured On Recurring Basis | The table below presents the changes in Level 3 contingent consideration obligation measured on a recurring basis and related to business combination of Seculert from January 2017: Fair value at January 1, 2017 $ - Acquisition date fair value of contingent consideration related to investment in Seculert (see Note 1c) 1,981 Changes in the fair value of contingent consideration in Seculert (431 ) Fair value at December 31,2017 1,550 Changes in the fair value of contingent consideration in Seculert (240 ) Payment of contingent consideration in Seculert (1,310 ) Fair value at December 31, 2018 $ - |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Current Inventories | Inventories are comprised of the following: December 31, 2018 2017 Raw materials and components $ 2,140 $ 1,963 Work-in-progress 1,894 279 Finished products 14,367 16,530 $ 18,401 $ 18,772 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | December 31, 2018 2017 Cost: Computer, peripheral equipment and software $ 90,054 $ 84,670 Office furniture and equipment 11,121 10,416 Leasehold improvements 6,188 5,790 107,363 100,876 Accumulated depreciation: Computer, peripheral equipment and software 72,236 67,275 Office furniture and equipment 7,710 6,684 Leasehold improvements 3,740 3,275 83,686 77,234 Property and equipment, net $ 23,677 $ 23,642 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets: Weighted average amortization December 31, Period 2018 2017 (years) Cost: Acquired technology 8.2 $ 25,561 $ 25,561 Customers relationships and brand name 5.8 9,817 9,817 35,378 35,378 Accumulated amortization: Acquired technology 16,139 15,297 Customers relationships and brand name 9,772 9,666 25,911 24,963 Intangible assets, net $ 9,467 $ 10,415 |
Future Estimated Amortization Expenses | Future estimated amortization expenses for the years ending: December 31, 2019 $ 1,712 2020 1,071 2021 1,037 2022 1,037 2023 and thereafter 4,610 Total $ 9,467 |
OTHER PAYABLES AND ACCRUED EX_2
OTHER PAYABLES AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Payables and Accrued Expenses | December 31, 2018 2017 Accrued expenses and other $ 7,068 $ 5,939 Subcontractors accrual 1,160 1,692 Accrued taxes 3,863 6,523 Contingent consideration related to the acquisition - 1,550 $ 12,091 $ 15,704 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Aggregate Minimum Lease Commitments | Aggregate minimum rental payments under non-cancelable operating leases as of December 31, 2018 and for each succeeding fiscal year indicated below are (in the aggregate) as follows: 2019 $ 4,661 2020 2,877 2021 1,109 2022 474 2023 and there after 1,047 $ 10,168 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Summary of Stock Option Activity | A summary of employees and directors option activity under the Company's Stock Option Plans as of December 31, 2018 is as follows: Number of options Weighted-average exercise price Weighted- average remaining contractual term (in years) Aggregate intrinsic value Outstanding at January 1, 2018 6,549,043 $ 14.66 3.08 $ 31,202 Granted 1,134,100 24.82 Exercised (2,416,115 ) 14.51 Expired (5,000 ) 13.83 Forfeited (406,825 ) 16.32 Outstanding at December 31, 2018 4,855,203 $ 16.96 3.30 $ 29,774 Exercisable at December 31, 2018 1,121,414 $ 14.27 2.25 $ 9,250 Vested and expected to vest at December 31, 2018 4,475,576 $ 16.67 3.24 $ 28,253 |
Summary of Stock Options Outstanding by Exercise Price Range | The options outstanding under the Company's Stock Option Plans as of December 31, 2018, 2017 and 2016 have been separated into ranges of exercise price as follows: December 31, 2018 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 $ 10.04-14.74 2,408,143 2.72 $ 13.47 755,327 $ 13.28 $ 15.09-19.30 1,356,636 3.20 $ 16.80 354,136 $ 16.09 $ 20.62-27.15 1,090,424 4.70 $ 24.88 11,951 $ 22.68 4,855,203 1,121,414 |
Summary of RSU Activity | The following table summarizes information relating to RSUs, as well as changes to such awards during 2018: Year ended December 31, 2018 Outstanding at January 1, 2018 1,279,502 Granted 366,826 Vested (455,988 ) Forfeited (112,431 ) Outstanding as of December 31, 2018 1,077,909 |
Summary of Stock-Based Compensation Expense | Stock-based compensation was recorded in the following items within the consolidated statements of income (loss): Year ended December 31, 2018 2017 2016 Cost of revenues $ 221 $ 241 $ 180 Research and development, net 3,123 3,867 3,339 Sales and marketing 7,072 6,894 5,661 General and administrative 2,087 2,029 2,340 Total expenses $ 12,503 $ 13,031 $ 11,520 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 (loss) per share: Year ended December 31, 2018 2017 2016 Numerator for basic and diluted net earnings (loss) per share: Net income (loss) $ 11,735 $ (7,493 ) $ (8,659 ) Weighted average shares outstanding, net of treasury stock: Denominator for basic net earnings (loss) per share 45,289,296 43,475,844 43,868,221 Effect of dilutive securities: Employee stock options 2,402,572 - - Denominator for diluted net earnings (loss) per share 47,691,868 43,475,844 43,868,221 Basic net earnings (loss) per share $ 0.26 $ (0.17 ) $ (0.20 ) Diluted net earnings (loss) per share $ 0.25 $ (0.17 ) $ (0.20 ) |
TAXES ON INCOME (Tables)
TAXES ON INCOME (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2018 2017 Beginning balance $ 1,534 $ 13,217 Additions for prior year tax positions 221 290 Reclassified from current tax payable 574 - Decrease for prior year tax positions (88 ) (1,245 ) Additions for current year tax positions 973 - Decreases relating to the settlement with tax authorities - (10,728 ) Ending balance $ 3,214 $ 1,534 |
Summary of Taxes on Income | Taxes on income are comprised as follows: Year ended December 31, 2018 2017 2016 Current taxes $ 5,371 $ 5,561 $ 4,338 Deferred taxes (2,308 ) 91 (2,687 ) $ 3,063 $ 5,652 $ 1,651 Domestic $ 2,049 $ 238 $ 283 Foreign 1,014 5,414 1,368 $ 3,063 $ 5,652 $ 1,651 Year ended December 31, 2018 2017 2016 Domestic taxes: Current taxes $ 2,206 $ 238 $ 494 Deferred taxes (157 ) - (211 ) 2,049 238 283 Foreign taxes: Current taxes 3,165 5,323 3,844 Deferred taxes (2,151 ) 91 (2,476 ) 1,014 5,414 1,368 $ 3,063 $ 5,652 $ 1,651 |
Significant Components of Deferred Tax Liabilities and Assets | 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, 2018 2017 Carryforward tax losses $ 4,743 $ 5,626 Deferred revenues 6,350 6,598 Temporary differences 5,093 5,216 Unrealized losses on marketable securities 331 132 Deferred tax assets before valuation allowance 16,517 17,572 Valuation allowance (3,247 ) (3,577 ) Net deferred tax asset 13,270 13,995 Intangible assets, including goodwill (4,047 ) (4,536 ) Depreciable assets (1,780 ) (2,008 ) Deferred tax liability (5,827 ) (6,544 ) Net deferred tax assets $ 7,443 $ 7,451 The net change in the total valuation allowance for the year ended December 31, 2018 was mainly relates to the Group’s entities that December 31, 2018 2017 Domestic deferred tax asset, net $ 1,047 $ 1,359 Foreign deferred tax asset, net 6,396 6,092 $ 7,443 $ 7,451 |
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, 2018 2017 2016 Income (loss) before taxes, as reported in the consolidated statements of income (loss) $ 14,798 $ (1,841 ) $ (7,008 ) Statutory tax rate 23 % 24 % 25 % Theoretical tax expense (benefit) on the above amount at the Israeli statutory tax rate $ 3,404 $ (442 ) $ (1,752 ) Tax adjustment in respect of different tax rate of foreign subsidiary 65 334 427 Non-deductible expenses and other permanent differences (340 ) 375 200 Deferred taxes on losses for which valuation allowance was provided, net 743 1,288 463 Utilization of tax losses and deferred taxes for which valuation allowance was provided, net (2,259 ) (709 ) - Stock compensation relating to stock options per ASC No. 718 1,073 1,976 1,342 Income taxes in respect of prior years 273 (1,038 ) - Change of tax rate 696 3,249 - Approved, Privileged and Preferred enterprise loss (benefits) (*) (684 ) 347 916 Other 92 272 55 Actual tax expense $ 3,063 $ 5,652 $ 1,651 (*) Basic earnings per share amounts of the benefit resulting from the "Approved, Privileged and Preferred Enterprise" status $ 0.00 $ 0.00 $ 0.03 Diluted earnings per share amounts of the benefit resulting from the "Approved, Privileged and Preferred Enterprise" status $ 0.00 $ 0.00 $ 0.03 |
Schedule of Income Before Income Taxes | Income (loss) before taxes on income is comprised as follows: Year ended December 31, 2018 2017 2016 Domestic $ 9,009 $ (5,918 ) $ (11,475 ) Foreign 5,789 4,077 4,467 Income (loss) before taxes on income $ 14,798 $ (1,841 ) $ (7,008 ) |
GEOGRAPHIC INFORMATION (Tables)
GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segments, Geographical Areas [Abstract] | |
Schedule of Total Revenues by Geographical Areas | The following table presents total revenues for the years ended December 31, 2018, 2017 and 2016 from a geographical perspective: Year ended December 31, 2018 2017 2016 Revenues from sales to customers located at: The United States $ 82,990 $ 78,464 $ 67,953 America - other 19,501 19,437 16,780 EMEA *) 51,888 45,077 42,104 Germany 23,863 11,512 11,620 Asia Pacific 56,162 56,879 58,128 $ 234,404 $ 211,369 $ 196,585 *) Europe, the Middle East and Africa – without Germany. |
Schedule of Long-Lived Assets by Geographical Areas | The following table presents long-lived assets as of December 31, 2018 and 2017 from a geographical perspective: December 31, 2018 2017 Long-lived assets, by geographic region: America (principally the United States) $ 1,736 $ 1,822 Israel 20,856 20,832 EMEA - other 253 251 Asia Pacific 832 737 $ 23,677 $ 23,642 |
SELECTED STATEMENTS OF INCOME_2
SELECTED STATEMENTS OF INCOME DATA (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SELECTED STATEMENTS OF INCOME DATA [Abstract] | |
Summary of Selected Statements of Income Data | Financial income, net: Year ended December 31, 2018 2017 2016 Financial income, net: Interest on bank deposits and other $ 5,279 $ 3,528 $ 2,947 Amortization of premiums, accretion of discounts and interest on available-for-sale marketable securities, net 2,304 2,008 1,813 Gain from sale of available-for-sale marketable securities - 18 1,771 Bank charges (113 ) (89 ) (116 ) Foreign currency translation differences, net (196 ) (635 ) (674 ) $ 7,274 $ 4,830 $ 5,741 |
BALANCES AND TRANSACTIONS WIT_2
BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Summary of Related Party Transactions | The following related party balances are included in the consolidated balance sheets: December 31, 2018 2017 Trade receivables and prepaid expenses $ 963 $ 1,207 Trade payables and accrued expenses $ 604 $ 205 b. The following related party transactions are included in the consolidated statements of income (loss): Year ended December 31, 2018 2017 2016 Revenues (1) $ 1,324 $ 2,547 $ 1,766 Cost of revenues (2) $ 6,956 $ 4,280 $ 3,095 Operating expenses, net - primarily lease, sub-contractors and communications (3) $ 4,757 $ 4,853 $ 4,546 Purchase of property and equipment $ 2,761 $ 1,663 $ 1,869 (1) Distribution of the Company's products on a non-exclusive basis. (2) Related to cost of product purchased from one of the related companies. (3) The Company leases office space and purchases other miscellaneous services from certain companies, which are considered to be related parties. In addition, the Company provides certain services to related parties. |
GENERAL (Details)
GENERAL (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jan. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Net income (loss) attributable to non-controlling interests (as a percentage) | 0.53% | (0.77%) | (1.92%) | |
Percentage interest held in Israeli subsidiary by Company | 91.00% | |||
Contingent consideration liability | $ 1,550 | |||
Goodwill | 32,174 | 32,174 | ||
Seculert Ltd. [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Percentage of outstanding shares acquired | 100.00% | |||
Cash consideration | $ 10,000 | |||
Contingent payment | 10,000 | |||
Contingent consideration liability | $ 1,550 | |||
Goodwill | 2,105 | |||
Seculert Ltd. [Member] | Technology [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Finite lived intangible assets | $ 2,183 | |||
Useful life | 9 years | |||
Seculert Ltd. [Member] | IPR&D [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Finite lived intangible assets | $ 7,088 | |||
Useful life | 9 years |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other-than-temporary impairment loss for marketable securities | |||
Inventory write-offs included in cost of revenues | 3,867 | 2,324 | 1,071 |
Impairment losses of intangible assets | |||
Provision for estimated sales returns stock rotations and other customer rights | $ 1,537 | 1,657 | |
Warranty term | 1 year | ||
Governmental grants received | $ 712 | 545 | 880 |
Bank deposits, weighted-average duration of deposits | 1 year 3 months 19 days | ||
Bank deposits, weighted-average time to maturity | 5 months 23 days | ||
Bad debt expenses | 109 | ||
Write-off of bad debts | $ 100 | ||
Term of severance pay entitlement based on period of total employment | 1 month | ||
Severance expenses | $ 4,259 | $ 3,296 | $ 3,603 |
Anti-dilutive shares excluded from computation of earnings per share amount | 1,166,488 | 981,750 | 4,665,638 |
Amortization of deferred contract costs | $ 12,640 | ||
Deferred revenues recognized | $ 91,555 | ||
Period of remaining service of deferred revenue | 3 years | ||
Commissions expenses recognized | $ 5,121 | ||
Remaining performance obligations | $ 222,094 | ||
Percentage of remaining performance obligations | 61.00% | ||
Withholding tax and advances on surplus expenses | $ 2,322 | ||
Expected period of benefit | 3 years 2 months 12 days | ||
Financial Institutions Debt Securities [Member] | |||
Marketable securities, percentage of portfolio distribution | 47.00% | ||
Government Debt Securities [Member] | |||
Marketable securities, percentage of portfolio distribution | 5.00% | ||
Corporate Debt Securities [Member] | |||
Marketable securities, percentage of portfolio distribution | 48.00% | ||
S and P rating, A- or higher [Member] | |||
Marketable securities, rating of investment portfolio percentage | 91.00% | ||
S and P rating, BBB or BBB+ [Member] | |||
Marketable securities, rating of investment portfolio percentage | 7.00% | ||
S and P rating, BB- [Member] | |||
Marketable securities, rating of investment portfolio percentage | 2.00% | ||
Israel [Member] | S and P, AAA Rating [Member] | |||
Percent of company's short-term and long-term bank deposits held in major Israeli banks | 70.00% | ||
The United States [Member] | Debt Securities [Member] | |||
Marketable securities, percentage of portfolio distribution | 38.00% | ||
The United States [Member] | S and P, AAA Rating [Member] | |||
Percent of company's short-term and long-term bank deposits held in major Israeli banks | 30.00% | ||
Europe [Member] | Debt Securities [Member] | |||
Marketable securities, percentage of portfolio distribution | 29.00% | ||
Other [Member] | Debt Securities [Member] | |||
Marketable securities, percentage of portfolio distribution | 33.00% | ||
Minimum [Member] | |||
Finite-lived intangible assets, estimated useful lives | 5 years | ||
Customer support contracts, support period | 1 year | ||
Expected future recognition of ROU assets and lease liabilities from adoption of ASU 2016-02 | $ 18,931 | ||
Maximum [Member] | |||
Finite-lived intangible assets, estimated useful lives | 9 years | ||
Customer support contracts, support period | 3 years | ||
Bank deposits, maximum contractual term | 2 years 2 months 30 days | ||
Expected future recognition of ROU assets and lease liabilities from adoption of ASU 2016-02 | $ 23,137 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Property and Equipment Annual Depreciation Rates) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Computers, peripheral equipment and software [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation on property and equipment | 33.00% |
Computers, peripheral equipment and software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation on property and equipment | 15.00% |
Computers, peripheral equipment and software [Member] | Maximum [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% |
Office furniture and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation on property and equipment | 6.00% |
Office furniture and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation on property and equipment | 20.00% |
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 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Trade Receivables and Contract Liabilities from Contracts) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Trade receivables, net | $ 17,166 | $ 16,150 |
Deferred revenues (short-term contract liability) | 83,955 | 69,829 |
Deferred revenues (Long-term contract liability) | $ 43,796 | $ 43,482 |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES (Cumulative Balance Sheet and Income Statement Adjustments - Adoption of ASC No. 606) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Assets: | ||||
Trade receivables, net | $ 17,166 | $ 16,150 | ||
Other long-term assets | 20,724 | 8,133 | ||
Deferred tax asset, net | 7,451 | |||
Liabilities: | ||||
Deferred revenues | 83,955 | 69,829 | ||
Shareholders' equity: | ||||
Retained earnings | 363,957 | 315,356 | $ 299,763 | $ 319,123 |
Revenues | 234,404 | 211,369 | 196,585 | |
Operating expenses: | ||||
Sales and marketing | 111,386 | 108,744 | 103,774 | |
Taxes on income | 3,063 | 5,652 | 1,651 | |
Net income | 11,735 | (7,493) | $ (8,659) | |
Accounting Standards Update 605 [Member] | ||||
Assets: | ||||
Trade receivables, net | 16,960 | |||
Other long-term assets | 9,992 | |||
Liabilities: | ||||
Deferred revenues | 83,861 | |||
Shareholders' equity: | ||||
Retained earnings | 353,113 | |||
Revenues | 234,136 | |||
Operating expenses: | ||||
Sales and marketing | 113,854 | |||
Taxes on income | 3,671 | |||
Net income | 8,391 | |||
Impact of adoption [Member] | Accounting Standards Update 606 [Member] | ||||
Assets: | ||||
Trade receivables, net | (206) | (153) | ||
Other long-term assets | (10,732) | 10,171 | ||
Deferred tax asset, net | (2,516) | |||
Liabilities: | ||||
Deferred revenues | (94) | |||
Shareholders' equity: | ||||
Retained earnings | (10,844) | |||
Revenues | (268) | |||
Operating expenses: | ||||
Sales and marketing | 2,468 | |||
Taxes on income | 608 | |||
Net income | $ 3,344 | |||
As adjusted [Member] | ||||
Assets: | ||||
Trade receivables, net | 15,997 | |||
Other long-term assets | 18,304 | |||
Deferred tax asset, net | $ 4,935 |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Weighted Average Assumptions Used to Calculate Fair Value of Company's Stock Options) (Details) - Employee Stock Option [Member] | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest rate | 2.78% | 1.66% | 1.12% |
Dividend yields | 0.00% | 0.00% | 0.00% |
Expected volatility | 30.00% | 32.00% | 34.00% |
Weighted average expected term from grant date (in years) | 3 years 9 months 11 days | 3 years 9 months 18 days | 3 years 10 months 17 days |
MARKETABLE SECURITIES (Schedule
MARKETABLE SECURITIES (Schedule of Marketable Securities With Contractual Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted cost, less than one year | $ 15,780 | $ 42,648 |
Gross unrealized losses, less than one year | (38) | (83) |
Gross unrealized gains, less than one year | 8 | |
Market Value, less than one year | 15,742 | 42,573 |
Adjusted cost, over one year through three years | 63,147 | 24,017 |
Gross unrealized losses, over one year through three years | (696) | (80) |
Gross unrealized gains, over one through three years | 11 | 34 |
Market Value, over one year through three years | 62,462 | 23,971 |
Adjusted cost, greater than three years | 22,924 | 30,911 |
Gross unrealized losses, greater than three years | (717) | (455) |
Gross unrealized gains, greater than three years | ||
Market value, greater than three years | 22,207 | 30,456 |
Foreign banks and government debentures [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted cost, less than one year | 6,759 | 22,294 |
Gross unrealized losses, less than one year | (11) | (63) |
Gross unrealized gains, less than one year | 3 | |
Market Value, less than one year | 6,748 | 22,234 |
Adjusted cost, over one year through three years | 43,266 | 14,463 |
Gross unrealized losses, over one year through three years | (358) | (61) |
Gross unrealized gains, over one through three years | 6 | 2 |
Market Value, over one year through three years | 42,914 | 14,404 |
Adjusted cost, greater than three years | 11,926 | 13,603 |
Gross unrealized losses, greater than three years | (357) | (198) |
Gross unrealized gains, greater than three years | ||
Market value, greater than three years | 11,569 | 13,405 |
Corporate debentures [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted cost, less than one year | 9,021 | 20,354 |
Gross unrealized losses, less than one year | (27) | (20) |
Gross unrealized gains, less than one year | 5 | |
Market Value, less than one year | 8,994 | 20,339 |
Adjusted cost, over one year through three years | 19,881 | 9,554 |
Gross unrealized losses, over one year through three years | (338) | (19) |
Gross unrealized gains, over one through three years | 5 | 32 |
Market Value, over one year through three years | 19,548 | 9,567 |
Adjusted cost, greater than three years | 10,998 | 17,308 |
Gross unrealized losses, greater than three years | (360) | (257) |
Gross unrealized gains, greater than three years | ||
Market value, greater than three years | $ 10,638 | $ 17,051 |
MARKETABLE SECURITIES (Summary
MARKETABLE SECURITIES (Summary of Investments With Continuous Unrealized Losses and Related Fair Values) (Details) $ in Thousands | Dec. 31, 2018USD ($)Investments | Dec. 31, 2017USD ($) |
Debt Securities, Available-for-sale [Line Items] | ||
Investments with continuous unrealized losses for less than 12 months, Fair value | $ 38,807 | $ 69,384 |
Investments with continuous unrealized losses for less than 12 months, Unrealized losses | (299) | (501) |
Investments with continuous unrealized losses for 12 months or greater, Fair value | 48,571 | 14,659 |
Investments with continuous unrealized losses for 12 months or greater, unrealized losses | (1,154) | (117) |
Total investments with continuous unrealized losses, Fair value | 87,378 | 84,043 |
Total investments with continuous unrealized losses, unrealized losses | $ (1,453) | (618) |
Number of investments with continuous unrealized loss for more than 12 months | Investments | 52 | |
Interest receivable | $ 898 | 833 |
Foreign banks and government debentures [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments with continuous unrealized losses for less than 12 months, Fair value | 26,860 | 40,104 |
Investments with continuous unrealized losses for less than 12 months, Unrealized losses | (177) | (275) |
Investments with continuous unrealized losses for 12 months or greater, Fair value | 24,966 | 6,486 |
Investments with continuous unrealized losses for 12 months or greater, unrealized losses | (550) | (48) |
Total investments with continuous unrealized losses, Fair value | 51,826 | 46,590 |
Total investments with continuous unrealized losses, unrealized losses | (727) | (323) |
Corporate debentures [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments with continuous unrealized losses for less than 12 months, Fair value | 11,947 | 29,280 |
Investments with continuous unrealized losses for less than 12 months, Unrealized losses | (122) | (226) |
Investments with continuous unrealized losses for 12 months or greater, Fair value | 23,605 | 8,173 |
Investments with continuous unrealized losses for 12 months or greater, unrealized losses | (604) | (69) |
Total investments with continuous unrealized losses, Fair value | 35,552 | 37,453 |
Total investments with continuous unrealized losses, unrealized losses | $ (726) | $ (295) |
FAIR VALUE MEASUREMENTS (Narrat
FAIR VALUE MEASUREMENTS (Narrative) (Details) - Seculert Ltd [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | |
Business Acquisition, Contingent Consideration [Line Items] | ||
Contingent consideration discount rate | 16.00% | |
Net income | $ 431 | |
Benefit | $ 240 |
FAIR VALUE MEASUREMENTS (Financ
FAIR VALUE MEASUREMENTS (Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | $ 110,367 | $ 97,501 |
Contingent Consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 1,550 | |
Foreign banks and government debentures [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale | 61,231 | 50,043 |
Corporate debentures [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale | 39,180 | 46,957 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 4,970 | 501 |
Level 1 [Member] | Contingent Consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | ||
Level 1 [Member] | Foreign banks and government debentures [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale | ||
Level 1 [Member] | Corporate debentures [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale | ||
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 105,397 | 97,000 |
Level 2 [Member] | Contingent Consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | ||
Level 2 [Member] | Foreign banks and government debentures [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale | 61,231 | 50,043 |
Level 2 [Member] | Corporate debentures [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale | 39,180 | 46,957 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | ||
Level 3 [Member] | Contingent Consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial liabilities | 1,550 | |
Level 3 [Member] | Foreign banks and government debentures [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale | ||
Level 3 [Member] | Corporate debentures [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale | ||
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 4,970 | 501 |
Money Market Funds [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 4,970 | 501 |
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 | ||
Government debentures [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 4,986 | |
Government debentures [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | ||
Government debentures [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 4,986 | |
Government debentures [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents |
FAIR VALUE MEASUREMENTS (Schedu
FAIR VALUE MEASUREMENTS (Schedule of Changes in Level 3 Contingent Consideration Obligation Measured) (Details) - Seculert Ltd [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition, Contingent Consideration [Line Items] | ||
Fair value at the beginning of the year | $ 1,550 | |
Acquisition date fair value of contingent consideration related to investment in Seculert (see Note 1c) | 1,981 | |
Changes in the fair value of contingent consideration in Seculert, net | (240) | (431) |
Payment of contingent consideration in Seculert | (1,310) | |
Fair value at December 31, 2018 | $ 1,550 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials and components | $ 2,140 | $ 1,963 |
Work-in-progress | 1,894 | 279 |
Finished products | 14,367 | 16,530 |
Inventory, Total | $ 18,401 | $ 18,772 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 107,363 | $ 100,876 | |
Accumulated depreciation | 83,686 | 77,234 | |
Property and equipment, net | 23,677 | 23,642 | |
Depreciation expenses | 8,834 | 10,001 | $ 9,253 |
Capitalized computer software costs | 1,275 | 1,526 | |
Computer, peripheral equipment and software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 90,054 | 84,670 | |
Accumulated depreciation | 72,236 | 67,275 | |
Office furniture and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 11,121 | 10,416 | |
Accumulated depreciation | 7,710 | 6,684 | |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 6,188 | 5,790 | |
Accumulated depreciation | $ 3,740 | $ 3,275 |
INTANGIBLE ASSETS, NET (Narrati
INTANGIBLE ASSETS, NET (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||
Amortization expenses | $ 948 | $ 1,231 | $ 1,119 |
INTANGIBLE ASSETS, NET (Schedul
INTANGIBLE ASSETS, NET (Schedule of Intangible Assets, Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Cost of intangible assets | $ 35,378 | $ 35,378 |
Accumulated amortization | 25,911 | 24,963 |
Intangible assets, net | 9,467 | 10,415 |
Acquired Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost of intangible assets | 25,561 | 25,561 |
Accumulated amortization | $ 16,139 | 15,297 |
Weighted average amortization period (years) | 8 years 2 months 12 days | |
Customers relationships and brand name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost of intangible assets | $ 9,817 | 9,817 |
Accumulated amortization | $ 9,772 | $ 9,666 |
Weighted average amortization period (years) | 5 years 9 months 18 days |
INTANGIBLE ASSETS, NET (Future
INTANGIBLE ASSETS, NET (Future Estimated Amortization Expenses) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2019 | $ 1,712 |
2020 | 1,071 |
2021 | 1,037 |
2022 | 1,037 |
2023 and thereafter | 4,610 |
Total | $ 9,467 |
OTHER PAYABLES AND ACCRUED EX_3
OTHER PAYABLES AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Accrued expenses and other | $ 7,068 | $ 5,939 |
Subcontractors accrual | 1,160 | 1,692 |
Accrued taxes | 3,863 | 6,523 |
Contingent consideration related to the acquisition | 1,550 | |
Total other payables and accrued expenses | $ 12,091 | $ 15,704 |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES (Details) ₪ in Thousands, $ in Thousands | May 09, 2016USD ($) | Jan. 16, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017ILS (₪) | Dec. 31, 2016USD ($) |
Aggregate minimum rental payments under non-cancelable operating leases: | ||||||
2019 | $ 4,661 | |||||
2020 | 2,877 | |||||
2021 | 1,109 | |||||
2022 | 474 | |||||
2023 and thereafter | 1,047 | |||||
Operating leases, total | 10,168 | |||||
Rent expenses | $ 6,047 | $ 6,161 | $ 5,377 | |||
Lease expiration date | Apr. 30, 2026 | |||||
Amount awarded in litigation matter | $ 6,900 | |||||
Claims | $ 40 | |||||
Litigation settlement amount | 10,728 | |||||
Provision | 10,950 | |||||
Additional tax benefit | $ 200 | |||||
ILS [Member] | ||||||
Aggregate minimum rental payments under non-cancelable operating leases: | ||||||
Litigation settlement amount | ₪ | ₪ 37,727 |
SHAREHOLDERS' EQUITY (Narrative
SHAREHOLDERS' EQUITY (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | May 31, 2018 | Apr. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Amount of shares repurchased | $ 4,275 | $ 413 | $ 21,980 | ||
Number of stock options repriced during period | 667,750 | ||||
Incremental expense for repricing of options | $ 1,187 | ||||
Expense recognized from repricing of stock options | $ 199 | $ 389 | $ 359 | ||
Treasury stock, at cost [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Repurchase of shares, authorized amount | $ 40,000 | $ 40,000 | |||
Share capital [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares repurchased | 194,704 | 25,782 | 1,884,030 | ||
2010 Share Purchase Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized | 2,000,000 | ||||
Shares available for future grant | 1,744,440 | ||||
ESPP, purchase price as a percentage of market price | 90.00% | ||||
Maximum employee contribution as a percentage of net income | 10.00% | ||||
February 2010 Addendum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employee share option plan, option purchase price as a percentage of market price | 90.00% | ||||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Stock Option Plans [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Contractual term | 5 years 2 months 12 days | ||||
Ordinary shares reserved for future issuance | 31,902,967 | ||||
Shares available for future grant | 2,237,959 | ||||
In-the-money options outstanding | 3,983,216 | 6,506,043 | 3,925,483 | ||
In-the-money options exercisable | 1,112,589 | 2,068,522 | 982,890 | ||
Weighted-average grant-date fair value of options granted | $ 6.67 | $ 4.31 | $ 3.48 | ||
Total unrecognized compensation costs | $ 8,273 | ||||
Unrecognized compensation costs, period of recognition | 1 year 6 months 7 days | ||||
Total fair value of vested options | $ 4,625 | ||||
Stock Option Plans [Member] | February 2010 Addendum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Ordinary shares reserved for future issuance | 1,000,000 | ||||
Shares available for future grant | 763,306 | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Total unrecognized compensation costs | $ 9,134 | ||||
Unrecognized compensation costs, period of recognition | 1 year 7 months 6 days | ||||
Weighted average fair value at grant date of non-vested shares | $ 23.82 | $ 16.24 | $ 12.79 |
SHAREHOLDERS' EQUITY (Summary o
SHAREHOLDERS' EQUITY (Summary of Stock Option Activity) (Details) - Stock Options [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Number of options | ||
Outstanding at January 1, 2018 | 6,549,043 | |
Granted | 1,134,100 | |
Exercised | (2,416,115) | |
Expired | (5,000) | |
Forfeited | (406,825) | |
Outstanding at December 31, 2018 | 4,855,203 | 6,549,043 |
Exercisable at December 31, 2018 | 1,121,414 | |
Vested and expected to vest at December 31, 2018 | 4,475,576 | |
Weighted-average exercise price | ||
Outstanding at January 1, 2018 | $ 14.66 | |
Granted | 24.82 | |
Exercised | 14.51 | |
Expired | 13.83 | |
Forfeited | 16.32 | |
Outstanding at December 31, 2018 | 16.96 | $ 14.66 |
Exercisable at December 31, 2018 | 14.27 | |
Vested and expected to vest at December 31, 2018 | $ 16.67 | |
Weighted- average remaining contractual term (in years) | ||
Outstanding | 3 years 3 months 19 days | 3 years 29 days |
Exercisable at December 31 | 2 years 2 months 30 days | |
Vested and expected to vest at December 31 | 3 years 2 months 27 days | |
Aggregate intrinsic value | ||
Outstanding at January 1 | $ 31,202 | |
Outstanding at December 31, 2018 | 29,774 | $ 31,202 |
Exercisable at December 31, 2018 | 9,250 | |
Vested and expected to vest at December 31, 2018 | $ 28,253 |
SHAREHOLDERS' EQUITY (Summary_2
SHAREHOLDERS' EQUITY (Summary of Stock Options Outstanding By Exercise Price Range) (Details) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Outstanding | |
Number of options | shares | 4,855,203 |
Exercisable | |
Number of options | shares | 1,121,414 |
Exercise Price Range One [Member] | |
Outstanding | |
Ranges of exercise price, Lower limit | $ 10.04 |
Ranges of exercise price, Upper limit | $ 14.74 |
Number of options | shares | 2,408,143 |
Weighted average remaining contractual life (years) | 2 years 8 months 19 days |
Weighted average exercise price | $ 13.47 |
Exercisable | |
Number of options | shares | 755,327 |
Weighted average exercise price | $ 13.28 |
Exercise Price Range Two [Member] | |
Outstanding | |
Ranges of exercise price, Lower limit | 15.09 |
Ranges of exercise price, Upper limit | $ 19.30 |
Number of options | shares | 1,356,636 |
Weighted average remaining contractual life (years) | 3 years 2 months 12 days |
Weighted average exercise price | $ 16.80 |
Exercisable | |
Number of options | shares | 354,136 |
Weighted average exercise price | $ 16.09 |
Exercise Price Range Three [Member] | |
Outstanding | |
Ranges of exercise price, Lower limit | 20.62 |
Ranges of exercise price, Upper limit | $ 27.15 |
Number of options | shares | 1,090,424 |
Weighted average remaining contractual life (years) | 4 years 8 months 12 days |
Weighted average exercise price | $ 24.88 |
Exercisable | |
Number of options | shares | 11,951 |
Weighted average exercise price | $ 22.68 |
SHAREHOLDERS' EQUITY (Summary_3
SHAREHOLDERS' EQUITY (Summary of RSU Activity) (Details) - Restricted Stock Units (RSUs) [Member] | 12 Months Ended |
Dec. 31, 2018shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding at January 1, 2018 | 1,279,502 |
Granted | 366,826 |
Vested | (455,988) |
Forfeited | (112,431) |
Outstanding as of December 31, 2018 | 1,077,909 |
SHAREHOLDERS' EQUITY (Summary_4
SHAREHOLDERS' EQUITY (Summary of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 12,503 | $ 13,031 | $ 11,520 |
Cost of revenues [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 221 | 241 | 180 |
Research and development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 3,123 | 3,867 | 3,339 |
Selling and marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 7,072 | 6,894 | 5,661 |
General and administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 2,087 | $ 2,029 | $ 2,340 |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator for basic and diluted net earnings (loss) per share: | |||
Net income (loss) | $ 11,735 | $ (7,493) | $ (8,659) |
Weighted average shares outstanding, net of treasury stock: | |||
Denominator for basic net earnings (loss) per share | 45,289,296 | 43,475,844 | 43,868,221 |
Effect of dilutive securities: | |||
Employee stock options | 2,402,572 | ||
Denominator for diluted net earnings (loss) per share | 47,691,868 | 43,475,844 | 43,868,221 |
Basic net earnings (loss) per share | $ 0.26 | $ (0.17) | $ (0.20) |
Diluted net earnings per (loss) share | $ 0.25 | $ (0.17) | $ (0.20) |
TAXES ON INCOME (Narrative) (De
TAXES ON INCOME (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Dec. 22, 2017 | Jan. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | ||||||
Amount added (deducted) to unrecognized tax benefits derived from interest and exchange | $ (88) | $ 290 | $ 911 | |||
Accrued interest liability on uncertain tax positions | $ 214 | $ 214 | $ 134 | |||
Tax rate | 21.00% | 23.00% | 24.00% | 25.00% | ||
Tax exempt undistributed retained earnings | $ 123,537 | $ 123,537 | ||||
Income tax liability, contingent upon distribution of previously tax exempt earnings | 29,649 | $ 29,649 | ||||
Corporate statutory tax rate on 2018 and thereafter | 23.00% | |||||
Corporate statutory tax rate on 2017 | 24.00% | |||||
Income tax expense | $ 3,063 | $ 5,652 | $ 1,651 | |||
Percentage of annual income derived from export | 25.00% | |||||
Foreign [Member] | United States Subsidiary [Member] | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carry forward amount | $ 4,761 | $ 4,761 | ||||
Operating loss carryforward limitations of use | can be carried forward and offset against taxable income up to 20 years | |||||
Foreign [Member] | United States Subsidiary [Member] | Earliest Tax Year [Member] | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carry forward expiration date | Dec. 31, 2024 | |||||
Foreign [Member] | United States Subsidiary [Member] | Latest Tax Year [Member] | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carry forward expiration date | Dec. 31, 2027 | |||||
Development Area A [Member] | ||||||
Income Taxes [Line Items] | ||||||
Tax rate | 9.00% | 7.50% | ||||
Other Area [Member] | ||||||
Income Taxes [Line Items] | ||||||
Tax rate | 16.00% | |||||
Privileged Enterprise Status [Member] | ||||||
Income Taxes [Line Items] | ||||||
Tax exempt period | 2 years | |||||
Privileged Enterprise Status [Member] | Domestic [Member] | ||||||
Income Taxes [Line Items] | ||||||
Percentage of income required to be derived from export in order to earn available tax benefits | 25.00% | |||||
Preferred Enterprise Status [Member] | Development Zone [Member] | 2015 And Thereafter [Member] | ||||||
Income Taxes [Line Items] | ||||||
Tax rate | 9.00% | |||||
Preferred Enterprise Status [Member] | Elsewhere In Israel [Member] | 2015 And Thereafter [Member] | ||||||
Income Taxes [Line Items] | ||||||
Tax rate | 16.00% | |||||
Minimum [Member] | ||||||
Income Taxes [Line Items] | ||||||
Tax rate | 34.00% | |||||
Minimum [Member] | Privileged Enterprise Status [Member] | ||||||
Income Taxes [Line Items] | ||||||
Tax reduction period | 5 years | |||||
Minimum [Member] | Privileged Enterprise Status [Member] | Israeli Tax Authority [Member] | ||||||
Income Taxes [Line Items] | ||||||
Tax rate | 10.00% | |||||
Maximum [Member] | ||||||
Income Taxes [Line Items] | ||||||
Tax rate | 21.00% | |||||
Maximum [Member] | Privileged Enterprise Status [Member] | ||||||
Income Taxes [Line Items] | ||||||
Tax reduction period | 8 years | |||||
Maximum [Member] | Privileged Enterprise Status [Member] | Israeli Tax Authority [Member] | ||||||
Income Taxes [Line Items] | ||||||
Tax rate | 25.00% |
TAXES ON INCOME (Reconciliation
TAXES ON INCOME (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Beginning balance | $ 1,534 | $ 13,217 |
Additions for prior year tax positions | 221 | 290 |
Reclassified from current tax payable | 574 | |
Decrease for prior year tax positions | (88) | (1,245) |
Additions for current year tax positions | 973 | |
Decreases relating to settlements with tax authorities | (10,728) | |
Ending balance | $ 3,214 | $ 1,534 |
TAXES ON INCOME (Summary of Tax
TAXES ON INCOME (Summary of Taxes On Income Summary) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Current taxes | $ 5,371 | $ 5,561 | $ 4,338 |
Deferred taxes | (2,308) | 91 | (2,687) |
Taxes on income | 3,063 | 5,652 | 1,651 |
Domestic | 2,049 | 238 | 283 |
Foreign | 1,014 | 5,414 | 1,368 |
Taxes on income | $ 3,063 | $ 5,652 | $ 1,651 |
TAXES ON INCOME (Summary of T_2
TAXES ON INCOME (Summary of Taxes On Income By Jurisdiction) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic taxes: Current taxes | $ 2,206 | $ 238 | $ 494 |
Domestic taxes: Deferred taxes | (157) | (211) | |
Domestic | 2,049 | 238 | 283 |
Foreign taxes: Current taxes | 3,165 | 5,323 | 3,844 |
Foreign taxes: Deferred taxes | (2,151) | 91 | (2,476) |
Foreign | 1,014 | 5,414 | 1,368 |
Taxes on income | $ 3,063 | $ 5,652 | $ 1,651 |
TAXES ON INCOME (Significant Co
TAXES ON INCOME (Significant Components of Deferred Tax Liabilities and Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Carryforward tax losses | $ 4,743 | $ 5,626 |
Deferred revenues | 6,350 | 6,598 |
Temporary differences | 5,093 | 5,216 |
Unrealized losses on marketable securities | 331 | 132 |
Deferred tax assets before valuation allowance | 16,517 | 17,572 |
Valuation allowance | (3,247) | (3,577) |
Net deferred tax asset | 13,270 | 13,995 |
Intangible assets, including goodwill | (4,047) | (4,536) |
Depreciable assets | (1,780) | (2,008) |
Deferred tax liability | (5,827) | (6,544) |
Net deferred tax assets | $ 7,443 | $ 7,451 |
TAXES ON INCOME (Significant _2
TAXES ON INCOME (Significant Components of Deferred Tax Liabilities and Assets By Jurisdiction) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Tax Assets And Liabilities [Line Items] | ||
Net deferred tax assets | $ 7,443 | $ 7,451 |
Domestic [Member] | ||
Deferred Tax Assets And Liabilities [Line Items] | ||
Net deferred tax assets | 1,047 | 1,359 |
Foreign [Member] | ||
Deferred Tax Assets And Liabilities [Line Items] | ||
Net deferred tax assets | $ 6,396 | $ 6,092 |
TAXES ON INCOME (Reconciliati_2
TAXES ON INCOME (Reconciliation Between Theoretical and Actual Tax Expense) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Income before taxes, as reported in the consolidated statements of income (loss) | $ 14,798 | $ (1,841) | $ (7,008) | |
Statutory tax rate | 21.00% | 23.00% | 24.00% | 25.00% |
Theoretical tax expense on the above amount at the Israeli statutory tax rate | $ 3,404 | $ (442) | $ (1,752) | |
Tax adjustment in respect of different tax rate of foreign subsidiary | 65 | 334 | 427 | |
Non-deductible expenses and other permanent differences | (340) | 375 | 200 | |
Deferred taxes on losses for which valuation allowance was provided, net | 743 | 1,288 | 463 | |
Utilization of tax losses and deferred taxes for which valuation allowance was provided, net | (2,259) | (709) | ||
Stock compensation relating to stock options per ASC No. 718 | 1,073 | 1,976 | 1,342 | |
Income taxes in respect of prior years | 273 | (1,038) | ||
Change of tax rate | 696 | 3,249 | ||
Approved, Privileged and Preferred enterprise benefits | (684) | 347 | 916 | |
Other | 92 | 272 | 55 | |
Taxes on income | $ 3,063 | $ 5,652 | $ 1,651 | |
Basic earnings per share amounts of the benefit resulting from the "Approved, Privileged and Preferred Enterprise" status | $ 0 | $ 0 | $ 0.03 | |
Diluted earnings per share amounts of the benefit resulting from the "Approved, Privileged and Preferred Enterprise" status | $ 0 | $ 0 | $ 0.03 |
TAXES ON INCOME (Schedule of In
TAXES ON INCOME (Schedule of Income (Loss) Before Taxes on Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 9,009 | $ (5,918) | $ (11,475) |
Foreign | 5,789 | 4,077 | 4,467 |
Income (loss) before taxes on income | $ 14,798 | $ (1,841) | $ (7,008) |
GEOGRAPHIC INFORMATION (Schedul
GEOGRAPHIC INFORMATION (Schedule of Total Revenues by Geograpical Areas) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 234,404 | $ 211,369 | $ 196,585 | |
The United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 82,990 | 78,464 | 67,953 | |
America - other [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 19,501 | 19,437 | 16,780 | |
EMEA [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | [1] | 51,888 | 45,077 | 42,104 |
Germany [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 23,863 | 11,512 | 11,620 | |
Asia Pacific [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 56,162 | $ 56,879 | $ 58,128 | |
[1] | Europe, the Middle East and Africa - without Germany. |
GEOGRAPHIC INFORMATION (Sched_2
GEOGRAPHIC INFORMATION (Schedule of Long-Lived Assets by Geograpical Areas) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 23,677 | $ 23,642 |
America - other [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,736 | 1,822 |
Israel [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 20,856 | 20,832 |
EMEA - other [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 253 | 251 |
Asia Pacific [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 832 | $ 737 |
SELECTED STATEMENTS OF INCOME_3
SELECTED STATEMENTS OF INCOME DATA (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financial income, net: | |||
Interest on bank deposits and other | $ 5,279 | $ 3,528 | $ 2,947 |
Amortization of premiums, accretion of discounts and interest on available-for-sale marketable securities, net | 2,304 | 2,008 | 1,813 |
Gain from sale of available-for-sale marketable securities | 18 | 1,771 | |
Bank charges | (113) | (89) | (116) |
Foreign currency translation differences, net | (196) | (635) | (674) |
Financial income and expenses, net | $ 7,274 | $ 4,830 | $ 5,741 |
BALANCES AND TRANSACTIONS WIT_3
BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Schedule of Related Party Balances Per the Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Related Party Transactions [Abstract] | ||
Trade receivables and prepaid expenses | $ 963 | $ 1,207 |
Trade payables and accrued expenses | $ 604 | $ 205 |
BALANCES AND TRANSACTIONS WIT_4
BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Schedule of Related Party Balances Per the Income Statement) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Related Party Transactions [Abstract] | ||||
Revenues | [1] | $ 1,324 | $ 2,547 | $ 1,766 |
Cost of revenues | [2] | 6,956 | 4,280 | 3,095 |
Operating expenses, net - primarily lease, sub-contractors and communications | [3] | 4,757 | 4,853 | 4,546 |
Purchase of property and equipment | $ 2,761 | $ 1,663 | $ 1,869 | |
[1] | Distribution of the Company's products on a non-exclusive basis. | |||
[2] | Related to cost of product purchased from one of the related companies. | |||
[3] | The Company leases office space and purchases other miscellaneous services from certain companies, which are considered to be related parties. In addition, the Company provides certain services to related parties. |
EVENTS AFTER THE REPORTING DA_2
EVENTS AFTER THE REPORTING DATE (Details) $ in Thousands | 1 Months Ended |
Mar. 31, 2019USD ($) | |
Subsequent Event [Member] | Kaalbi Technologies Private Ltd [Member] | |
Subsequent Event [Line Items] | |
Cash Consideration | $ 14,000 |