Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2014 | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | JACADA LTD |
Document Type | 20-F |
Amendment Flag | FALSE |
Document Period End Date | 31-Dec-14 |
Entity Central Index Key | 1095747 |
Entity Current Reporting Status | Yes |
Current Fiscal Year End Date | -19 |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Fiscal Year Focus | 2014 |
Document Fiscal Period Focus | FY |
Entity Common Stock, Shares Outstanding | 4,159,386 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | $3,048 | $3,632 |
Marketable securities | 3,349 | 3,000 |
Trade receivables | 3,076 | 2,700 |
Restricted cash | 787 | 597 |
Prepaid expenses | 240 | 267 |
Deferred taxes | 443 | 184 |
Other current assets | 425 | 552 |
Total current assets | 11,368 | 10,932 |
LONG-TERM ASSETS: | ||
Marketable securities | 1,185 | 3,147 |
Severance pay fund | 136 | 137 |
Other assets | 38 | 45 |
Property and equipment, net | 397 | 439 |
Total long-term assets | 1,756 | 3,768 |
Total assets | 13,124 | 14,700 |
CURRENT LIABILITIES: | ||
Trade payables | 1,190 | 1,208 |
Accrued expenses and other liabilities | 2,152 | 1,639 |
Deferred revenues | 2,156 | 1,989 |
Total current liabilities | 5,498 | 4,836 |
LONG-TERM LIABILITIES: | ||
Deferred revenues | 369 | 526 |
Deferred taxes | 1 | 113 |
Accrued severance pay | 376 | 354 |
Other long-term liabilities | 87 | 128 |
Total long-term liabilities | 833 | 1,121 |
SHAREHOLDERS' EQUITY: | ||
Share capital - Ordinary shares of NIS 0.04 par value - Authorized: 7,500,000 shares at December 31, 2014 and 2013; Issued: 5,271,372 and 5,270,930 shares at December 31, 2014 and 2013, respectively; Outstanding: 4,159,576 and 4,159,134 shares at December 31, 2014 and 2013, respectively | 60 | 60 |
Additional paid-in capital | 76,022 | 75,955 |
Treasury shares at cost - 1,111,796 Ordinary shares at December 31, 2014 and 2013 | -17,863 | -17,863 |
Accumulated other comprehensive income, net | 720 | 2,069 |
Accumulated deficit | -52,146 | -51,478 |
Total shareholders' equity | 6,793 | 8,743 |
Total liabilities and shareholders' equity | $13,124 | $14,700 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (ILS) | Dec. 31, 2014 | Dec. 31, 2013 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Ordinary shares, par value per share | 0.04 | 0.04 |
Ordinary shares, shares authorized | 7,500,000 | 7,500,000 |
Ordinary shares, shares issued | 5,271,372 | 5,270,930 |
Ordinary shares, shares outstanding | 4,159,576 | 4,159,134 |
Treasury shares at cost, shares | 1,111,796 | 1,111,796 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Software licenses | $2,437 | $2,930 | $1,111 |
Services | 9,687 | 8,948 | 6,867 |
Maintenance | 4,249 | 3,748 | 2,789 |
Total revenues | 16,373 | 15,626 | 10,767 |
Cost of revenues: | |||
Software licenses | 175 | 170 | 62 |
Services | 5,813 | 5,417 | 6,018 |
Maintenance | 496 | 353 | 629 |
Total cost of revenues | 6,484 | 5,940 | 6,709 |
Gross profit | 9,889 | 9,686 | 4,058 |
Operating expenses: | |||
Research and development | 3,481 | 2,918 | 3,541 |
Sales and marketing | 5,052 | 4,398 | 4,787 |
General and administrative | 2,998 | 3,107 | 2,975 |
Total operating expenses | 11,531 | 10,423 | 11,303 |
Operating loss | -1,642 | -737 | -7,245 |
Financial income, net | 1,941 | 473 | 856 |
Income (loss) before taxes | 299 | -264 | -6,389 |
Income tax benefit (expense) | -967 | 382 | -55 |
Net income (loss) | ($668) | $118 | ($6,444) |
Basic net earnings (loss) per share | ($0.16) | $0.03 | ($1.55) |
Diluted net earnings (loss) per share | ($0.16) | $0.03 | ($1.55) |
Weighted average number of shares used in computing basic net earnings (loss) per share | 4,159,576 | 4,159,134 | 4,159,134 |
Weighted average number of shares used in computing diluted net earnings (loss) per share | 4,159,576 | 4,166,033 | 4,159,134 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract] | |||
Net income (loss) | ($668) | $118 | ($6,444) |
Other comprehensive income (loss) | |||
Foreign currency translation adjustments | -125 | 8 | 111 |
Change in unrealized gains (losses) on cash flow hedges: | |||
Unrealized gain on cash flow hedges arising during the period | -226 | 132 | 80 |
Reclassification to earnings of realized gains (losses) on cash flow hedges | 45 | -171 | 86 |
Change in unrealized gains (losses) on marketable securities: | |||
Unrealized gains on marketable securities, net of tax expense (benefit) | 581 | 1,144 | 753 |
Gains of marketable securities reclassified into earning, net of tax expenses | -1,624 | -326 | -689 |
Other comprehensive income (loss), net of tax | -1,349 | 787 | 341 |
Comprehensive income (loss) | ($2,017) | $905 | ($6,103) |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Ordinary Shares [Member] | Additional Paid-in Capital [Member] | Treasury Shares at Cost [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Deficit [Member] | |
In Thousands, except Share data | |||||||
Balance at Dec. 31, 2011 | $13,848 | $60 | $75,862 | ($17,863) | $941 | ($45,152) | |
Balance, shares at Dec. 31, 2011 | 4,159,134 | ||||||
Exercise of stock options, shares | |||||||
Stock-based compensation | -2 | -2 | |||||
Net income (loss) | -6,444 | -6,444 | |||||
Other comprehensive income (loss) | 341 | 341 | |||||
Balance at Dec. 31, 2012 | 7,743 | 60 | 75,860 | -17,863 | 1,282 | -51,596 | |
Balance Shares at Dec. 31, 2012 | 4,159,134 | ||||||
Exercise of stock options, shares | |||||||
Stock-based compensation | 95 | 95 | |||||
Net income (loss) | 118 | 118 | |||||
Other comprehensive income (loss) | 787 | 787 | |||||
Balance at Dec. 31, 2013 | 8,743 | 60 | 75,955 | -17,863 | 2,069 | -51,478 | |
Balance Shares at Dec. 31, 2013 | 4,159,134 | 4,159,134 | |||||
Exercise of stock options | 1 | [1] | 1 | ||||
Exercise of stock options, shares | 442 | 442 | |||||
Stock-based compensation | 66 | 66 | |||||
Net income (loss) | -668 | -668 | |||||
Other comprehensive income (loss) | -1,349 | -1,349 | |||||
Balance at Dec. 31, 2014 | $6,793 | $60 | $76,022 | ($17,863) | $720 | ($52,146) | |
Balance Shares at Dec. 31, 2014 | 4,159,576 | 4,159,576 | |||||
[1] | Represents an amount lower than $ 1. |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income (loss) | ($668) | $118 | ($6,444) |
Adjustments required to reconcile net income (loss) from continuing operations to net cash used in operating activities: | |||
Depreciation | 190 | 241 | 351 |
Stock-based compensation | 66 | 95 | -2 |
Gain on sale of marketable securities | -1,862 | -326 | -689 |
Accrued severance pay, net | 23 | 7 | 6 |
Deferred taxes, net | 230 | -345 | |
Decrease (increase) in trade receivables | -443 | -984 | 698 |
Decrease (increase) in other current assets and prepaid expenses | 158 | -138 | 142 |
Increase (decrease) in trade payables | -9 | 193 | -600 |
Increase in accrued expenses and other liabilities | 352 | 32 | 173 |
Increase in deferred revenue | 34 | 160 | 1,591 |
Decrease in other long-term liabilities | -41 | -40 | |
Other | 2 | 6 | 10 |
Net cash used in operating activities | -1,968 | -981 | -4,764 |
Cash flows from investing activities: | |||
Proceeds from the sale of marketable securities | 7,879 | 1,111 | 5,590 |
Investment in marketable securities | -6,048 | ||
Purchase of property and equipment | -150 | -127 | -81 |
Proceeds from sale of property and equipment | 1 | ||
Decrease (increase) in restricted cash | -190 | 6 | -116 |
Net cash provided by investing activities | 1,491 | 990 | 5,394 |
Effect of exchange rate changes on cash | -107 | 36 | 13 |
Increase (decrease) in cash and cash equivalents | -584 | 45 | 643 |
Cash and cash equivalents at the beginning of the year | 3,632 | 3,587 | 2,944 |
Cash and cash equivalents at the end of the year | 3,048 | 3,632 | 3,587 |
Supplemental disclosure of cash flows activities: | |||
Cash paid during the year for taxes on income | 219 | 104 | 65 |
Non-cash investing information: | |||
Investment in leasehold improvements and Computers and peripheral equipment upon accrued expenses and other liabilities | 10 | 40 | |
Investment in leasehold improvements upon other long-term liabilities | $6 | $168 |
GENERAL
GENERAL | 12 Months Ended | |
Dec. 31, 2014 | ||
GENERAL [Abstract] | ||
GENERAL | NOTE 1:- | GENERAL |
Jacada Ltd. ("Jacada") and its subsidiaries (collectively - "the Company") develop, market and support unified service desktop and process optimization solutions that simplify and automate customer service processes. The Company generates revenues from licensing its software products and from services such as implementation and customization, consulting, training and maintenance and support. | ||
Jacada Ltd.'s wholly-owned subsidiaries include Jacada, Inc., a corporation organized under the laws of the state of Delaware, and Jacada (Europe) Limited, a company organized under the laws of England. Jacada (Europe) Limited owns 100% of the stock of Jacada Deutschland GmbH, a limited liability company organized under the laws of Germany. The majority of the Company's sales are made in North America and Europe. | ||
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||||||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||
The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("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 and assumptions that affect the amounts reported in the financial statements and accompanying notes. The Company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. Actual results could differ from those estimates. | ||||||||||||||||||||
b. | Financial statements in U.S. dollars: | |||||||||||||||||||
The currency of the primary economic environment in which the operations of Jacada and certain subsidiaries are conducted is the U.S. dollar ("dollar"); thus, the dollar is the functional currency of Jacada and certain subsidiaries. | ||||||||||||||||||||
Jacada and certain subsidiaries' transactions and balances denominated in dollars are presented at their original amounts. Non-dollar transactions and balances have been remeasured to dollars in accordance with Accounting Standard Codification ("ASC") 830, "Foreign Currency Matters". All transaction gains and losses from remeasurement of monetary balance sheet items denominated in non-dollar currencies are reflected in the statements of operations as financial income or expenses, as appropriate. | ||||||||||||||||||||
For those subsidiaries whose functional currency has been determined to be their local currency, assets and liabilities are translated at year-end exchange rates and statements of operations items are translated at average exchange rates prevailing during the year. Such translation adjustments are recorded as a separate component of accumulated other comprehensive income in shareholders' equity. | ||||||||||||||||||||
c. | Principles of consolidation: | |||||||||||||||||||
The consolidated financial statements include the accounts of Jacada and its wholly-owned subsidiaries. Intercompany transactions and balances 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. | Investments in marketable securities: | |||||||||||||||||||
The Company accounts for investments in debt and equity marketable securities in accordance with ASC 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 classifies all of its marketable securities as available-for-sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses, net of tax, reported in accumulated other comprehensive income (loss) in shareholders' equity. Realized gains and losses on sale of investments are included in financial income, net. | ||||||||||||||||||||
The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization together with interest on securities is included in financial income, net. | ||||||||||||||||||||
The Company recognizes an impairment charge when a decline in the fair value of its investments in debt and equity securities below the cost basis of such securities is judged to be other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the 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 is recognized in the statements of income as financial income, net and, with respect to debt securities, is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income (loss). | ||||||||||||||||||||
No other-than-temporary impairments were identified in 2014, 2013 and 2012. The gain on sale of marketable securities previously impaired for the years ended December 31, 2014, 2013 and 2012 amounted to $ 172, $ 48 and $ 163, respectively. | ||||||||||||||||||||
f. | Restricted cash: | |||||||||||||||||||
Restricted cash is invested in bank deposits, which are pledged in favor of the banks which provide to the Company guarantees with respect to office lease agreements, credit card, hedging transactions and car leasing. | ||||||||||||||||||||
g. | Property and equipment: | |||||||||||||||||||
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets at the following annual rates: | ||||||||||||||||||||
% | ||||||||||||||||||||
Computers and peripheral equipment | 14 - 33 | |||||||||||||||||||
Office furniture and equipment | 15-Jul | |||||||||||||||||||
Motor Vehicles | 17 | |||||||||||||||||||
Leasehold improvements | Over the shorter of the related lease period (including option terms) or the life of the asset | |||||||||||||||||||
h. | Impairment of long-lived assets: | |||||||||||||||||||
The Company's long-lived assets are reviewed for impairment in accordance with ASC 360, "Property Plant and Equipment", 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 asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. In 2014, 2013 and 2012, no impairment losses were identified. | ||||||||||||||||||||
i. | Research and development costs: | |||||||||||||||||||
Research and development costs are charged to the statement of operations as incurred. ASC 985-20 "Costs of Software to Be Sold, Leased, or Marketed", requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. | ||||||||||||||||||||
Based on the Company's product development process, technological feasibility is established upon completion of a working model. No material costs are incurred by the Company between the completion of the working model and the point at which the products are ready for general release. Therefore, research and development costs have been expensed as incurred. | ||||||||||||||||||||
j. | Income taxes: | |||||||||||||||||||
The Company accounts for income taxes in accordance with ASC 740, "Income Taxes". This Statement prescribes the use of the liability method, whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value. | ||||||||||||||||||||
The Company implements a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% (cumulative basis) likely to be realized upon ultimate settlement. | ||||||||||||||||||||
k. | Revenue recognition: | |||||||||||||||||||
The Company derives its revenue principally from: | ||||||||||||||||||||
the initial sales of licenses to use the Company's products, including professional services such as customization, implementation and integration services, | ||||||||||||||||||||
incremental license fees resulting from a customer's increase in agent licenses required, | ||||||||||||||||||||
post-implementation consulting and integration services for the Company's solutions, and | ||||||||||||||||||||
the recurring revenue from ongoing support and maintenance, also called post-contract support or PCS, which includes telephone support, bug repairs, and rights to receive upgrades and enhancements to licensed software on a when-and-if-available basis. | ||||||||||||||||||||
Sales of software licenses are recognized when persuasive evidence of an agreement exists, delivery of the product has occurred, the fee is fixed or determinable, and collectability is probable. The Company considers all arrangements with payment terms extending beyond six months from the delivery of the elements, not to be fixed or determinable. If the fee is not fixed or determinable, revenue is recognized as payments become due from the customer, provided that all other revenue recognition criteria have been met. | ||||||||||||||||||||
The Company does not grant a right of return to its customers. In transactions where a customer's contractual terms include a provision for customer acceptance based on customer-specified subjective criteria, or for evaluation purposes, the Company recognizes revenues only when such acceptance has been obtained or as the acceptance provision lapses. However, in transactions where a customer's contractual terms include a provision for customer acceptance based on customer-specified objective criteria, the Company recognizes revenue if it can demonstrate that the delivered product meets the specified criteria prior to customer acceptance. | ||||||||||||||||||||
The Company usually sells its software licenses as part of an overall solution offered to a customer that combines the sale of software licenses with customization, implementation and integration services. In arrangements which include significant customization of software and services, the Company accounts for the services together with the software under contract accounting in accordance with ASC 605-35, "Construction-Type and Production-Type Contracts". | ||||||||||||||||||||
Revenues recognized in accordance with ASC 605-35 are accounted for using the percentage of completion method. The percentage of completion method is used when the required services are quantifiable, based on the estimated number of labor hours necessary to complete the project, and under that method revenues are recognized using labor hours incurred as the measure of progress towards completion. | ||||||||||||||||||||
Revenue from software that does not require services, including licenses sold subsequent to the initial installation, is recognized upon delivery, assuming all other revenue recognition criteria has been met. | ||||||||||||||||||||
Revenue from post-implementation consulting and integration services is recognized as work is performed. | ||||||||||||||||||||
Maintenance revenue is recognized ratably over the term of the maintenance agreement. Deferred revenues include unearned amounts received under maintenance and support agreements and amounts received from customers, for which revenues have not yet been recognized. | ||||||||||||||||||||
Revenues from software arrangements involving multiple elements, such as software, post-contract customer support and maintenance, consulting and training, are allocated to the different elements in the arrangement under the "residual method" when Vendor Specific Objective Evidence ("VSOE") of fair value exists for all undelivered elements and no VSOE exists for the delivered elements. The residual method of allocation requires an entity to first allocate revenue to the fair value of the undelivered elements (maintenance and other services) and the residual revenue to the delivered element (software licenses). Any discount in the arrangement is allocated to the delivered element. | ||||||||||||||||||||
VSOE of fair value for maintenance and other services is generally determined based on the price charged for the undelivered element when sold separately. The Company's process for establishing VSOE of fair value of maintenance services (PCS) is through performance of VSOE compliance test which is an analysis of the entire population of PCS renewal activity for its installed base of customers. The Company's process for the establishment of VSOE of fair value for professional services is through a performance of an analysis of the entire population of separate sales of services. | ||||||||||||||||||||
The Company accounts for reimbursements received for out-of-pocket expenses incurred, in accordance with ASC 605-45-45, "Reimbursements Received for Out-of-Pocket Expenses Incurred", under which reimbursements received for out-of-pocket expenses incurred should be characterized as revenue in the statements of operations. The reimbursements received for out-of-pocket expenses for years ended December 31, 2014, 2013 and 2012 amounted to $ 305 $ 347 and $ 287, respectively. | ||||||||||||||||||||
l. | Accounting for stock-based compensation: | |||||||||||||||||||
The Company accounts for stock-based compensation in accordance with ASC 718 "Compensation - Stock Compensation, which requires the measurement and recognition of compensation expense based on estimated fair values for all stock-based payment awards made to employees and directors. 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 statements of operations. | ||||||||||||||||||||
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. Forfeitures are 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 estimates the fair value of stock options awards using the Black-Scholes option pricing model. This option-pricing model requires a number of assumptions, described below. The Company has historically not paid dividends and has no foreseeable plans to pay dividends. The Company used its historical stock prices for calculating volatility. The risk-free interest rate assumption is based on the rate of zero-coupon U.S. government securities appropriate for the expected term of the Company's employee stock options. The Company determined the expected life of the options according to the average of the vesting period and the expiration period. | ||||||||||||||||||||
The fair value for options granted in 2014, 2013 and 2012 was estimated at the date of grant using the following weighted average assumptions: | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Dividend yield | 0% | 0% | 0% | |||||||||||||||||
Expected volatility | 64% | 58% | 50% | |||||||||||||||||
Risk-free interest | 1.83% | 1.33% | 1.16% | |||||||||||||||||
Expected term (years) | 5.5 | 5.6 | 5.6 | |||||||||||||||||
m. | Advertising expenses: | |||||||||||||||||||
Advertising expenses are charged to the statements of operations, as incurred. Advertising expenses for the years ended December 31, 2014, 2013 and 2012 were $228, $ 170 and $ 161, respectively. | ||||||||||||||||||||
n. | Severance pay: | |||||||||||||||||||
The Company's liability for severance pay for its Israeli employees is calculated pursuant to Israel's Severance Pay Law based on the most recent salary of the employees multiplied by the number of years of employment, as of the balance sheet date. Israeli employees are entitled to severance equal to one month's salary for each year of employment or a portion thereof. The Company's liability for its Israeli employees, not under section 14 discussed below, is fully provided by monthly deposits with insurance policies and by an accrual. The value of these policies is recorded as an asset in the Company's balance sheet. | ||||||||||||||||||||
The deposited funds include profits (losses) accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israel's Severance Pay Law or labor agreements. The value of the deposited funds is based on the cash surrendered value of these policies. | ||||||||||||||||||||
Commencing from 2005, new employees of the Company are subject to Section 14 of the Severance Pay Law, under which the payments to the pension funds and insurance companies discharge the Company's obligation to the employees. Accumulated amounts in the pension funds and with the insurance companies are not under the control or administration of the Company, and accordingly, neither those amounts nor the corresponding accrual for severance pay are reflected in the balance sheet. | ||||||||||||||||||||
The severance pay expense for the years ended December 31, 2014, 2013 and 2012 amounted to $213, $ 196 and $ 398, respectively. | ||||||||||||||||||||
o. | Fair value of financial instruments: | |||||||||||||||||||
The Company measures its investments in marketable securities and its foreign currency derivative contracts 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 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date. | ||||||||||||||||||||
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. | ||||||||||||||||||||
Level 3 - Unobservable inputs for the asset or liability. | ||||||||||||||||||||
The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. | ||||||||||||||||||||
The carrying amounts of financial instruments carried at cost, including cash and cash equivalents, restricted cash, trade receivables, other current assets, trade payables and other liabilities approximate their fair value due to the short-term maturities of such instruments. | ||||||||||||||||||||
p. | Derivative instruments: | |||||||||||||||||||
The Company carries out transactions involving foreign currency exchange derivative financial instruments. The transactions are designed to hedge the Company's exposure in currencies other than the dollar. The Company recognizes derivative instruments as either assets or liabilities and measures those instruments at fair value. If a derivative meets the definition of a hedge and is so designated, changes in the fair value of the derivative are recognized in other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative designated as a hedge is recognized in earnings. If a derivative does not meet the definition of a hedge, the changes in the fair value are included in earnings. | ||||||||||||||||||||
q. | Net earnings (loss) per share: | |||||||||||||||||||
Basic net earnings (loss) per share are computed based on the weighted average number of Ordinary shares outstanding during each year. Diluted net earnings (loss) per share are computed based on the weighted average number of Ordinary shares outstanding during each year, plus potentially dilutive Ordinary shares considered outstanding during the year, in accordance with ASC 260, "Earnings Per Share". | ||||||||||||||||||||
All outstanding stock options have been excluded from the calculation of the diluted net loss per share in 2014 and 2012. The total weighted average number of shares related to the outstanding stock options excluded from the calculations of diluted net earnings (loss) per share due to their anti-dilutive effect was 515,053, 510,705 and 513,691 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||
r. | Concentrations of credit risk: | |||||||||||||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, marketable securities, trade receivables and restricted cash. | ||||||||||||||||||||
Cash, cash equivalents and restricted cash are invested mainly in U.S. dollars with major banks in the United States, Israel and other international banks. Such cash and cash equivalents in the United States may be in excess of insured limits and are not insured in other jurisdictions. Generally, these investments may be redeemed upon demand and therefore bear minimal risk. | ||||||||||||||||||||
The Company's marketable securities include investments in equity and US treasury bills. The Company's investment policy limits the amount the Company may invest in any one type of issuer, thereby reducing credit risk concentrations. In addition, the policy establishes minimum credit ratings for all types of securities. | ||||||||||||||||||||
The Company's trade receivables are mainly derived from sales to customers in North America and Europe. In judging the probability of collection from customers the Company continuously monitors collection and payments based upon the Company's historical experience of its existing customers. In connection with customers with whom the Company does not have previous experience, it evaluates the creditworthiness of those customers. An allowance for doubtful accounts is determined with respect to those amounts that the Company has determined to be doubtful of collection. | ||||||||||||||||||||
s. | Treasury shares: | |||||||||||||||||||
The Company presents the cost to repurchase treasury shares as a reduction of shareholders' equity. | ||||||||||||||||||||
t. | Comprehensive income: | |||||||||||||||||||
The Company accounts for comprehensive income in accordance with ASC 220 "Comprehensive Income". This Statement establishes standards for the reporting and display of comprehensive income and its components in a full set of general purpose financial statements. Comprehensive income generally represents all changes in shareholders' equity during the period except those resulting from investments by, or distributions to, shareholders. The Company determined that its items of comprehensive income relate to foreign currency translation adjustments, gains (losses) on hedging derivative instruments and unrealized gains (losses) on marketable securities. | ||||||||||||||||||||
The following table shows the components of accumulated other comprehensive income, net of taxes, for the year ended December 31, 2014: | ||||||||||||||||||||
Year ended December 31, 2014 | ||||||||||||||||||||
Unrealized gains | Foreign currency | Unrealized gains | Total | |||||||||||||||||
(losses) on | translation | (losses) on cash | ||||||||||||||||||
marketable | adjustments | flow hedges | ||||||||||||||||||
securities | ||||||||||||||||||||
Beginning balance | $ | 1,853 | $ | 167 | $ | 49 | $ | 2,069 | ||||||||||||
Other comprehensive income (loss) | 581 | (125 | ) | (226 | ) | (212 | ) | |||||||||||||
Amounts reclassified from accumulated other comprehensive income | (1,624 | ) | - | 45 | (1,137 | ) | ||||||||||||||
Net current-period other comprehensive loss | (1,043 | ) | (125 | ) | (181 | ) | (1,349 | ) | ||||||||||||
Ending balance | $ | 810 | $ | 42 | $ | (132 | ) | $ | 720 | |||||||||||
u. | Impact of recently issued accounting standards: | |||||||||||||||||||
In May 2014, the Financial Accounting Standards Board issued an ASU No. 2014-09 on revenue from contracts with customers, which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. This ASU, which will be effective for the Company beginning January 1, 2017, allows for either full or modified retrospective methods of adoption and early adoption is not permitted. The Company is currently evaluating the method of adoption, as well as the effect that adoption of this ASU will have on its consolidated financial statements. | ||||||||||||||||||||
In 2014, the FASB issued ASU 15-2014, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, which defines management's responsibility to assess an entity's ability to continue as a going concern, and to provide related footnote disclosures if there is substantial doubt about its ability to continue as a going concern. The pronouncement is effective for annual reporting periods ending after December 15, 2016 with early adoption permitted. The Company is currently evaluating the effect, if any, that the adoption of this guidance will have on its consolidated financial statements. | ||||||||||||||||||||
MARKETABLE_SECURITIES
MARKETABLE SECURITIES | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
MARKETABLE SECURITIES [Abstract] | ||||||||||||||||||||||||||||||||||||||||
MARKETABLE SECURITIES | NOTE 3:- | MARKETABLE SECURITIES | ||||||||||||||||||||||||||||||||||||||
The Company invests in US Government treasuries and equity marketable securities, which are classified as available-for-sale. The following is a summary of the Company's investment in marketable securities: | ||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||||||||||
Gross | Gross | Fair | Gross | Gross | Fair | |||||||||||||||||||||||||||||||||||
unrealized | unrealized | unrealized | unrealized | |||||||||||||||||||||||||||||||||||||
Cost | gains | losses | value | Cost | gains | losses | value | |||||||||||||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||||||||||||||||
US Government treasuries | $ | 3,349 | $ | - | $ | - | $ | 3,349 | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||||||||
Equity securities | $ | 703 | $ | 482 | $ | - | $ | 1,185 | $ | 4,020 | $ | 2,127 | $ | - | $ | 6,147 | ||||||||||||||||||||||||
$ | 4,052 | $ | 482 | $ | - | $ | 4,534 | $ | 4,020 | $ | 2,127 | $ | - | $ | 6,147 | |||||||||||||||||||||||||
As of December 31, 2014 the U.S government treasuries are expected to mature within the next 12 months, therefore were classified as current assets. | ||||||||||||||||||||||||||||||||||||||||
PROPERTY_AND_EQUIPMENT_NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
PROPERTY AND EQUIPMENT, NET [Abstract] | ||||||||||
PROPERTY AND EQUIPMENT, NET | NOTE 4:- | PROPERTY AND EQUIPMENT, NET | ||||||||
December 31, | ||||||||||
2014 | 2013 | |||||||||
Cost: | ||||||||||
Computers and peripheral equipment | $ | 2,866 | $ | 3,008 | ||||||
Office furniture and equipment | 492 | 482 | ||||||||
Motor Vehicles | 13 | 13 | ||||||||
Leasehold improvements | 349 | 342 | ||||||||
3,720 | 3,845 | |||||||||
Accumulated depreciation | 3,323 | 3,406 | ||||||||
Depreciated cost | $ | 397 | $ | 439 | ||||||
Depreciation expense for the years ended December 31, 2014, 2013 and 2012 was $ 190, $ 241 and $ 351, respectively. | ||||||||||
ACCRUED_EXPENSES_AND_OTHER_LIA
ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
ACCRUED EXPENSES AND OTHER LIABILITIES [Abstract] | ||||||||||
ACCRUED EXPENSES AND OTHER LIABILITIES | NOTE 5:- | ACCRUED EXPENSES AND OTHER LIABILITIES | ||||||||
December 31, | ||||||||||
2014 | 2013 | |||||||||
Employees and payroll accruals | $ | 1,213 | $ | 1,266 | ||||||
Accrued expenses | 510 | 373 | ||||||||
Accrued income tax | 429 | - | ||||||||
$ | 2,152 | $ | 1,639 |
COMMITMENTS_AND_CONTINGENT_LIA
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract] | |||||
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 6:- | COMMITMENTS AND CONTINGENT LIABILITIES | |||
Lease commitments: | |||||
The Company's facilities are leased under various operating lease agreements, which expire on various dates, the latest of which is in 2018. Future minimum lease payments under non-cancelable operating leases as of December 31, 2014 are as follows: | |||||
2015 | $ | 432 | |||
2016 | 277 | ||||
2017 | 220 | ||||
2018 | 37 | ||||
$ | 966 | ||||
Total rent expenses for the years ended December 31, 2014, 2013 and 2012 were $ 396, $ 370 and $ 527, respectively. | |||||
DERIVATIVE_FINANCIAL_INSTRUMEN
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS [Abstract] | |||||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 7:- DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||||||||||
In order to reduce the impact of changes in foreign currency exchange rates on its results, the Company enters into foreign currency exchange forward contracts and option strategies to purchase and sell foreign currencies to hedge a significant portion of its anticipated New Israeli Shekel ("NIS") payroll payments. The Company designates these contracts for accounting purposes as cash flow hedges. The Company currently hedges its exposure to the variability in future cash flows for a maximum period of one year. | |||||||||||||||||||||||
The effective portion of the gain or loss on the derivative instruments is initially recorded as a component of other comprehensive income, a separate component of shareholders' equity, and subsequently reclassified into earnings to the same line item as the related forecasted transaction and in the same period or periods during which the hedged exposure affects earnings. Hedge ineffectiveness, if any, are recognized immediately in financial income (expenses), net. | |||||||||||||||||||||||
Gain (loss) on the derivative instruments, which partially offset the foreign currency impact from the underlying exposures, reclassified from other comprehensive income into research and development, sales and marketing and general and administrative for the year ended December 31, 2014 were $ (28), $(14) and $ (7), respectively. The ineffective portion of the change in fair value of a cash flow hedge for the years ended December 31, 2014, 2013 and 2012 amounted to $4 $ 29 and $ 5, respectively. | |||||||||||||||||||||||
The Company's derivatives expose it to credit risks from possible non-performance by counterparties. The Company has limited its credit risk by entering into derivative transactions exclusively with investment-grade rated financial institutions and monitors the creditworthiness of these financial institutions on an ongoing basis. As of December 31, 2014 there was no credit risk because the derivatives were in a loss position. | |||||||||||||||||||||||
The notional amounts of the Company's derivative instruments as of December 31, 2014 amounted to $ 3,544. Notional values are dollar translated and calculated based on forward rates as of December 31, 2014. Gross notional amounts do not quantify risk or represent assets or liabilities of the Company, but are used in the calculation of settlements under the contracts. | |||||||||||||||||||||||
As of December 31, 2014, amounts related to derivatives designated as cash flow hedges and recorded in accumulated other comprehensive income totaled $ (132) which will be reclassified into statements of operations within the next 12 months and will partially offset the foreign currency impact from the underlying exposures. The amount ultimately realized in earnings will likely differ due to future changes in foreign exchange rates. Loss from cash flow hedges recognized in other comprehensive income in the year ended December 31, 2014 amounted to $ 181. | |||||||||||||||||||||||
The Company records all derivative instruments on the balance sheet at fair value. The fair value of the open foreign exchange contracts appears on the consolidated balance sheets as of December 31, 2014, as a liability in other current liabilities, in the amount of $ 132. | |||||||||||||||||||||||
The fair value of the Company's outstanding derivative instruments qualified as hedging instruments as of December 31, 2014 and 2013 is summarized below: | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
Balance sheet location | 2014 | 2013 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Foreign exchange option contracts | Other current assets | $ | - | $ | 8 | ||||||||||||||||||
Foreign exchange forward contracts | (liabilities) | (132 | ) | 41 | |||||||||||||||||||
Derivatives assets (Liabilities) | $ | (132 | ) | $ | 49 | ||||||||||||||||||
Location in | Gains (losses) reclassified from | ||||||||||||||||||||||
other comprehensive income (loss) | |||||||||||||||||||||||
into income (expenses) | |||||||||||||||||||||||
statement | Year ended December 31, | ||||||||||||||||||||||
of operations | 2014 | 2013 | 2012 | ||||||||||||||||||||
Derivatives in cash flow hedging relationship | |||||||||||||||||||||||
Foreign exchange option contracts | Cost of sales and operating expenses | $ | 8 | $ | 35 | $ | (11 | ) | |||||||||||||||
Foreign exchange forward contracts | Financial expense | 4 | 29 | (5 | ) | ||||||||||||||||||
Foreign exchange forward contracts | Cost of sales and operating expenses | (57 | ) | 107 | (70 | ) | |||||||||||||||||
$ | (45 | ) | $ | 171 | $ | (86 |
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 8:- FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||||||
The following table presents the Company's assets and liabilities measured at fair value on a recurring basis as of December 31, 2014 and 2013: | |||||||||||||||||||
31-Dec-14 | |||||||||||||||||||
Fair value measurements using input type | |||||||||||||||||||
Level 1 | Level 2 | Total | |||||||||||||||||
Marketable securities: | |||||||||||||||||||
US Government treasuries | $ | 3,349 | $ | $ | 3,349 | ||||||||||||||
Equity | 1,185 | - | 1,185 | ||||||||||||||||
Foreign currency derivative contracts | - | (132 | ) | (132 | ) | ||||||||||||||
Total | $ | 4,534 | $ | (132 | ) | $ | 4,402 | ||||||||||||
31-Dec-13 | |||||||||||||||||||
Fair value measurements using input type | |||||||||||||||||||
Level 1 | Level 2 | Total | |||||||||||||||||
Marketable securities: | |||||||||||||||||||
Equity | $ | 6,147 | $ | - | $ | 6,147 | |||||||||||||
Foreign currency derivative contracts | - | 49 | 49 | ||||||||||||||||
Total | $ | 6,147 | $ | 49 | $ | 6,196 |
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
SHAREHOLDERS' EQUITY [Abstract] | |||||||||||||||||||||
SHAREHOLDERS' EQUITY | NOTE 9:- SHAREHOLDERS' EQUITY | ||||||||||||||||||||
a. General: | |||||||||||||||||||||
Ordinary shares confer upon their holders the right to receive notice to participate and vote in general meetings of the Company, and the right to receive dividends if declared. | |||||||||||||||||||||
On October 19, 2012 Company's shares were delisted from the NASDAQ Global Market because the Company failed to comply with the NASDAQ listing requirements. Since then the Company's shares are traded in the over-the-counter market in the OTCQB Marketplace. | |||||||||||||||||||||
b. Options issued to employees and directors: | |||||||||||||||||||||
As of December 31, 2014, the Company had three Incentive Share Option Plans (the 2003 and 2012 plans), which provide for the grant of options to officers, management, employees and key employees, directors, consultants and others. The options granted generally become fully exercisable after two to four years and expire between 7 to 10 years from the grant date. Any options from 2003 and 2012 plans that are forfeited or canceled before expiration become available for future grants. | |||||||||||||||||||||
Pursuant to the option plans, the exercise price of options shall be determined by the Company's Board of Directors or the Company's compensation committee but may not be less than the fair value of the Ordinary share on the grant date. | |||||||||||||||||||||
As of December 31, 2014, an aggregate of 1,157,925 Ordinary shares of the Company were still available for future grant under the Incentive Share Option Plans. | |||||||||||||||||||||
A summary of the Company's option activity and related information with respect to options granted to employees for the year ended December 31, 2014 is as follows: | |||||||||||||||||||||
Number of options | Weighted - average | Weighted - average remaining contractual term | Aggregate intrinsic | ||||||||||||||||||
exercise price | value | ||||||||||||||||||||
(in years) | |||||||||||||||||||||
Outstanding at the beginning of the year | 514,621 | $ | 2.76 | 5.07 | $ | 510 | |||||||||||||||
Granted | 16,000 | $ | 3.78 | ||||||||||||||||||
Exercised | (442 | ) | $ | 1.68 | |||||||||||||||||
Forfeited | (33,881 | ) | $ | 11.57 | |||||||||||||||||
Outstanding at end of year | 496,298 | $ | 2.19 | 4.36 | $ | 741 | |||||||||||||||
Exercisable options at end of year | 246,546 | $ | 2.77 | 3.87 | $ | 320 | |||||||||||||||
Vested and expected-to-vest at end of year | 462,403 | $ | 2.22 | 4.32 | $ | 686 | |||||||||||||||
The total intrinsic value of stock options exercised during 2014 was $3. No options were exercised during 2013 and 2012. | |||||||||||||||||||||
The weighted-average estimated grant date fair value of employee stock options granted during the years 2014, 2013 and 2012 was $2.17, $ 0.72 and $ 0.69, respectively. | |||||||||||||||||||||
Stock-based compensation expense (gain) in respect of options granted to employees amounted to $ 66, $ 95 and $ (2) for the years ended December 31, 2014, 2013 and 2012, respectively. The following table presents the stock-based compensation included in the line items below in the Company's consolidated statements of operations: | |||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Cost of revenues | $ | 4 | $ | 6 | $ | 22 | |||||||||||||||
Research and development | 3 | 3 | 5 | ||||||||||||||||||
Sales and marketing | 14 | 12 | 20 | ||||||||||||||||||
General and administrative | 45 | 74 | (49 | ) | |||||||||||||||||
Total | $ | 66 | $ | 95 | $ | (2 | ) | ||||||||||||||
c. As of December 31, 2014, there was $ 40 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Company's stock option plans. That cost is expected to be recognized over a weighted-average period of 1.36 years. | |||||||||||||||||||||
d. In 2008, the Company purchased a total of 1,111,796 of its Ordinary shares pursuant to a share repurchase program as well as a self-tender offer conducted by the Company. Such shares are held by the Company as treasury shares and are presented at cost. Under the Companies Law for so long as such treasury shares are owned by the Company they have no rights and, accordingly, are neither eligible to participate in or receive any future dividends which may be paid to the Company's shareholders nor are they entitled to participate in, be voted at or be counted as part of the quorum for, any meetings of shareholders. | |||||||||||||||||||||
TAXES_ON_INCOME
TAXES ON INCOME | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
TAXES ON INCOME [Abstract] | |||||||||||||||||||||
TAXES ON INCOME | NOTE 10:- TAXES ON INCOME | ||||||||||||||||||||
a. Tax benefits under the Law for the Encouragement of Capital Investments, 1959 ("the Investment law"): | |||||||||||||||||||||
Various industrial projects of Jacada have been granted "Approved Enterprise" and "Privileged Enterprise" status, which provides certain benefits, including tax exemptions and reduced tax rates. According to the provisions of the Investment Law, the Company's income is tax-exempt for a period of two years commencing with the year it first earns taxable income, and subject to corporate taxes at the reduced rates of 10% to 25%, for an additional period of five to eight years depending upon the level of foreign ownership of the Company. Income not eligible for Approved Enterprise and Privileged Enterprise benefits is taxed at a regular rate. | |||||||||||||||||||||
In the event of distribution of dividends from the said tax-exempt income, the amount distributed will be subject to corporate tax at the rate ordinarily applicable to the Approved Enterprise's and Privileged Enterprise income. The tax-exempt income attributable to the Approved Enterprise programs mentioned above can be distributed to shareholders without subjecting the Company to taxes only upon the complete liquidation of Jacada. Tax-exempt income generated under the Company's Privileged Enterprise program will be subject to taxes upon dividend distribution (which includes the repurchase of the Company's shares) or complete liquidation. | |||||||||||||||||||||
The entitlement to the above benefits is conditional upon the Company's fulfilling the conditions stipulated by the Law and regulations published thereunder. Should the Company fail to meet such requirements in the future, income attributable to its Approved Enterprise and Privileged Enterprise programs could be subject to the statutory Israeli corporate tax rate and the Company could be required to refund a portion of the tax benefits already received, with respect to such programs. | |||||||||||||||||||||
As the Company currently has no taxable income, these benefits have not yet commenced for all programs since inception. | |||||||||||||||||||||
In January 2011, the Law for Economic Policy for 2011 and 2012 (Amended Legislation) was passed, and among other things, amended the Law, ("the Amendment") effective January 1, 2011. According to the Amendment, the benefit tracks in the Investment Law were modified and a flat tax rate applies to the Company's entire preferred income. The Company will be able to opt to apply (the waiver is non-recourse) the Amendment and from then on it will be subject to the amended tax rates of 16%. | |||||||||||||||||||||
b. Tax benefits under the Law for the Encouragement of Industry (Taxation), 1969: | |||||||||||||||||||||
The Company believes it meets all the criteria to be classified as "industrial company", as defined by this law and, as such, is entitled to certain tax benefits, mainly accelerated depreciation of machinery and equipment, as prescribed by regulations published under the Inflationary Adjustments Law, the right to claim public issuance expenses and amortization of intangible property rights as a deduction for tax purposes. | |||||||||||||||||||||
c. Net operating losses carryforward: | |||||||||||||||||||||
As of December 31, 2014, the Company had an Israeli net operating loss carryforward of approximately $ 44,520 which can be carried forward and offset against taxable income with no expiration date. | |||||||||||||||||||||
As of December 31, 2014, the U.S subsidiary had used all of its U.S. net operating loss carryforwards for income tax purposes and therefore no net operating loss carryforwards are available for future use. | |||||||||||||||||||||
As of December 31, 2014, the European subsidiaries had net operating losses carryforward for income tax purposes, of approximately $ 2,404 which can be carried forward and offset against taxable income with no expiration date. | |||||||||||||||||||||
d. Theoretical tax: | |||||||||||||||||||||
In 2014, the main reconciling items between the statutory tax rate of the Company and the effective tax rate are the losses outside of the U.S, mainly in Israel, in the amount of $12,677 for which valuation allowance was provided. | |||||||||||||||||||||
In 2013, the main reconciling item between the statutory tax rate of the Company and the effective tax rate is a decrease in the valuation allowance on certain deferred tax assets in the US, resulting in the recognition of tax benefit in the statements of operations in the amount of $ 345. | |||||||||||||||||||||
In 2012, the main reconciling items between the statutory tax rate of the Company and the effective tax rate are the non-recognition of tax benefits from accumulated net operating losses carried forward due to the uncertainty of the realization of such tax benefits and current year adjustments to the valuation allowance provided on the carryforward tax losses. | |||||||||||||||||||||
e. 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 deferred tax assets are as follows: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||
Operating loss carryforward | $ | 12,791 | $ | 12,904 | |||||||||||||||||
Reserves and allowances | 1,434 | 526 | |||||||||||||||||||
Total deferred tax asset before valuation allowance | 14,225 | 13,430 | |||||||||||||||||||
Valuation allowance | (13,588 | ) | (13,246 | ) | |||||||||||||||||
Deferred tax assets | 637 | 184 | |||||||||||||||||||
Deferred tax liabilities | (195 | ) | (113 | ) | |||||||||||||||||
Deferred taxes, net | $ | 442 | $ | 71 | |||||||||||||||||
The Company has provided a valuation allowances in respect of deferred tax assets resulting from tax loss carryforward and temporary differences. | |||||||||||||||||||||
f. Loss (income) before taxes is comprised as follows: | |||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Domestic (Israel) | $ | (2,258 | ) | $ | (1,307 | ) | $ | (7,598 | ) | ||||||||||||
Foreign | 2,557 | 1,043 | 1,209 | ||||||||||||||||||
$ | 299 | $ | (264 | ) | $ | (6,389 | ) | ||||||||||||||
g. Corporate tax rates in Israel: | |||||||||||||||||||||
Taxable income of Israeli companies is subject to tax at the rate of 26.5% in 2014 and onwards. | |||||||||||||||||||||
h. Income tax benefit (expense) is comprised as follows: | |||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Current income tax expenses | $ | -737 | $ | (38 | ) | $ | (55 | ) | |||||||||||||
Previous year's tax benefit | - | 75 | - | ||||||||||||||||||
Deferred tax benefit (expense) | (230 | ) | 345 | - | |||||||||||||||||
$ | -967 | $ | 382 | $ | (55 | ) | |||||||||||||||
Domestic | $ | - | $ | - | $ | - | |||||||||||||||
Foreign | -967 | 382 | (55 | ) | |||||||||||||||||
$ | -967 | $ | 382 | $ | (55 | ) | |||||||||||||||
i. As of December 31, 2014, Jacada's 2010 tax filling has received final tax assessments. | |||||||||||||||||||||
GEOGRAPHIC_INFORMATION_AND_MAJ
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA [Abstract] | ||||||||||||||||||
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA | NOTE 11:- GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA | |||||||||||||||||
a. Summary information about geographical areas: | ||||||||||||||||||
The Company manages its business on a basis of one reportable segment (see Note 1a for a brief description of the Company's business) and follows the requirements of ASC 280 "Segment Reporting". | ||||||||||||||||||
The following is a summary of revenues within geographic areas based on the end-customer's location: | ||||||||||||||||||
Year ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
United States | $ | 9,929 | $ | 7,837 | $ | 5,835 | ||||||||||||
Germany | 1,976 | 2,185 | 1,014 | |||||||||||||||
Netherlands | 1,668 | 1,633 | 9 | |||||||||||||||
United Kingdom | 1,513 | 1,878 | 2,691 | |||||||||||||||
Other | 1,287 | 2,093 | 1,218 | |||||||||||||||
$ | 16,373 | $ | 15,626 | $ | 10,767 | |||||||||||||
December 31, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Property and equipment: | ||||||||||||||||||
North America | $ | 228 | $ | 308 | ||||||||||||||
Israel | 168 | 129 | ||||||||||||||||
Other | 1 | 2 | ||||||||||||||||
$ | 397 | $ | 439 | |||||||||||||||
b. Major customers' data as a percentage of total revenues: | ||||||||||||||||||
Year ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Customer A | 23% | 5% | *) | |||||||||||||||
Customer B | 12% | 14% | *) | |||||||||||||||
Customer C | 10% | 10% | - | |||||||||||||||
Customer D | *) | 13% | 10% | |||||||||||||||
Customer E | *) | 11% | 22% | |||||||||||||||
Customer F | - | *) | 18% | |||||||||||||||
*) | Less than 1%. |
SUPPLEMENTARY_DATA_ON_SELECTED
SUPPLEMENTARY DATA ON SELECTED STATEMENTS OF INCOME | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
SUPPLEMENTARY DATA ON SELECTED STATEMENTS OF INCOME [Abstract] | |||||||||||||||||||||
SUPPLEMENTARY DATA ON SELECTED STATEMENTS OF INCOME | NOTE 12:- SUPPLEMENTARY DATA ON SELECTED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
a. Financial income (expenses), net: | |||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Financial income: | |||||||||||||||||||||
Foreign currency translation adjustments | $ | 12 | $ | 10 | $ | - | |||||||||||||||
Realized gain on marketable securities | 1,862 | 326 | 689 | ||||||||||||||||||
Interest income and amortization/accretion of premium/discount on marketable securities | 2 | 5 | 7 | ||||||||||||||||||
Dividend on equity marketable securities | 85 | 160 | 216 | ||||||||||||||||||
1,961 | 501 | 912 | |||||||||||||||||||
Financial expenses: | |||||||||||||||||||||
Bank charges | (20 | ) | (28 | ) | (33 | ) | |||||||||||||||
Foreign currency translation adjustments | - | - | (23 | ) | |||||||||||||||||
(20 | ) | (28 | ) | (56 | ) | ||||||||||||||||
$ | 1,941 | $ | 473 | $ | 856 | ||||||||||||||||
b. Allowance for doubtful accounts: | |||||||||||||||||||||
The balance of the allowance for doubtful accounts for the years ended December 31, 2014, 2013 and 2012, was $44, $0, $0 respectively. | |||||||||||||||||||||
The increase in the allowance for doubtful accounts for the year ended 2014 was $ 44. | |||||||||||||||||||||
There was no change in the allowance for doubtful accounts for the years ended December 31, 2013 and 2012. | |||||||||||||||||||||
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policy) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||||||||||||||||||||
Use of estimates | a. | Use of estimates: | ||||||||||||||||||
The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The Company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. Actual results could differ from those estimates. | ||||||||||||||||||||
Financial statements in U.S. dollars | b. | Financial statements in U.S. dollars: | ||||||||||||||||||
The currency of the primary economic environment in which the operations of Jacada and certain subsidiaries are conducted is the U.S. dollar ("dollar"); thus, the dollar is the functional currency of Jacada and certain subsidiaries. | ||||||||||||||||||||
Jacada and certain subsidiaries' transactions and balances denominated in dollars are presented at their original amounts. Non-dollar transactions and balances have been remeasured to dollars in accordance with Accounting Standard Codification ("ASC") 830, "Foreign Currency Matters". All transaction gains and losses from remeasurement of monetary balance sheet items denominated in non-dollar currencies are reflected in the statements of operations as financial income or expenses, as appropriate. | ||||||||||||||||||||
For those subsidiaries whose functional currency has been determined to be their local currency, assets and liabilities are translated at year-end exchange rates and statements of operations items are translated at average exchange rates prevailing during the year. Such translation adjustments are recorded as a separate component of accumulated other comprehensive income in shareholders' equity. | ||||||||||||||||||||
Principles of consolidation | c. | Principles of consolidation: | ||||||||||||||||||
The consolidated financial statements include the accounts of Jacada and its wholly-owned subsidiaries. Intercompany transactions and balances 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. | ||||||||||||||||||||
Investments in marketable securities | e. | Investments in marketable securities: | ||||||||||||||||||
The Company accounts for investments in debt and equity marketable securities in accordance with ASC 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 classifies all of its marketable securities as available-for-sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses, net of tax, reported in accumulated other comprehensive income (loss) in shareholders' equity. Realized gains and losses on sale of investments are included in financial income, net. | ||||||||||||||||||||
The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization together with interest on securities is included in financial income, net. | ||||||||||||||||||||
The Company recognizes an impairment charge when a decline in the fair value of its investments in debt and equity securities below the cost basis of such securities is judged to be other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the 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 is recognized in the statements of income as financial income, net and, with respect to debt securities, is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income (loss). | ||||||||||||||||||||
No other-than-temporary impairments were identified in 2014, 2013 and 2012. The gain on sale of marketable securities previously impaired for the years ended December 31, 2014, 2013 and 2012 amounted to $ 172, $ 48 and $ 163, respectively. | ||||||||||||||||||||
Restricted cash | f. | Restricted cash: | ||||||||||||||||||
Restricted cash is invested in bank deposits, which are pledged in favor of the banks which provide to the Company guarantees with respect to office lease agreements, credit card, hedging transactions and car leasing. | ||||||||||||||||||||
Property and equipment | g. | Property and equipment: | ||||||||||||||||||
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets at the following annual rates: | ||||||||||||||||||||
% | ||||||||||||||||||||
Computers and peripheral equipment | 14 - 33 | |||||||||||||||||||
Office furniture and equipment | 15-Jul | |||||||||||||||||||
Motor Vehicles | 17 | |||||||||||||||||||
Leasehold improvements | Over the shorter of the related lease period (including option terms) or the life of the asset | |||||||||||||||||||
Impairment of long-lived assets | h. | Impairment of long-lived assets: | ||||||||||||||||||
The Company's long-lived assets are reviewed for impairment in accordance with ASC 360, "Property Plant and Equipment", 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 asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. In 2014, 2013 and 2012, no impairment losses were identified. | ||||||||||||||||||||
Research and development costs | i. | Research and development costs: | ||||||||||||||||||
Research and development costs are charged to the statement of operations as incurred. ASC 985-20 "Costs of Software to Be Sold, Leased, or Marketed", requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. | ||||||||||||||||||||
Based on the Company's product development process, technological feasibility is established upon completion of a working model. No material costs are incurred by the Company between the completion of the working model and the point at which the products are ready for general release. Therefore, research and development costs have been expensed as incurred. | ||||||||||||||||||||
Income taxes | j. | Income taxes: | ||||||||||||||||||
The Company accounts for income taxes in accordance with ASC 740, "Income Taxes". This Statement prescribes the use of the liability method, whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value. | ||||||||||||||||||||
The Company implements a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% (cumulative basis) likely to be realized upon ultimate settlement. | ||||||||||||||||||||
Revenue recognition | k. | Revenue recognition: | ||||||||||||||||||
The Company derives its revenue principally from: | ||||||||||||||||||||
the initial sales of licenses to use the Company's products, including professional services such as customization, implementation and integration services, | ||||||||||||||||||||
incremental license fees resulting from a customer's increase in agent licenses required, | ||||||||||||||||||||
post-implementation consulting and integration services for the Company's solutions, and | ||||||||||||||||||||
the recurring revenue from ongoing support and maintenance, also called post-contract support or PCS, which includes telephone support, bug repairs, and rights to receive upgrades and enhancements to licensed software on a when-and-if-available basis. | ||||||||||||||||||||
Sales of software licenses are recognized when persuasive evidence of an agreement exists, delivery of the product has occurred, the fee is fixed or determinable, and collectability is probable. The Company considers all arrangements with payment terms extending beyond six months from the delivery of the elements, not to be fixed or determinable. If the fee is not fixed or determinable, revenue is recognized as payments become due from the customer, provided that all other revenue recognition criteria have been met. | ||||||||||||||||||||
The Company does not grant a right of return to its customers. In transactions where a customer's contractual terms include a provision for customer acceptance based on customer-specified subjective criteria, or for evaluation purposes, the Company recognizes revenues only when such acceptance has been obtained or as the acceptance provision lapses. However, in transactions where a customer's contractual terms include a provision for customer acceptance based on customer-specified objective criteria, the Company recognizes revenue if it can demonstrate that the delivered product meets the specified criteria prior to customer acceptance. | ||||||||||||||||||||
The Company usually sells its software licenses as part of an overall solution offered to a customer that combines the sale of software licenses with customization, implementation and integration services. In arrangements which include significant customization of software and services, the Company accounts for the services together with the software under contract accounting in accordance with ASC 605-35, "Construction-Type and Production-Type Contracts". | ||||||||||||||||||||
Revenues recognized in accordance with ASC 605-35 are accounted for using the percentage of completion method. The percentage of completion method is used when the required services are quantifiable, based on the estimated number of labor hours necessary to complete the project, and under that method revenues are recognized using labor hours incurred as the measure of progress towards completion. | ||||||||||||||||||||
Revenue from software that does not require services, including licenses sold subsequent to the initial installation, is recognized upon delivery, assuming all other revenue recognition criteria has been met. | ||||||||||||||||||||
Revenue from post-implementation consulting and integration services is recognized as work is performed. | ||||||||||||||||||||
Maintenance revenue is recognized ratably over the term of the maintenance agreement. Deferred revenues include unearned amounts received under maintenance and support agreements and amounts received from customers, for which revenues have not yet been recognized. | ||||||||||||||||||||
Revenues from software arrangements involving multiple elements, such as software, post-contract customer support and maintenance, consulting and training, are allocated to the different elements in the arrangement under the "residual method" when Vendor Specific Objective Evidence ("VSOE") of fair value exists for all undelivered elements and no VSOE exists for the delivered elements. The residual method of allocation requires an entity to first allocate revenue to the fair value of the undelivered elements (maintenance and other services) and the residual revenue to the delivered element (software licenses). Any discount in the arrangement is allocated to the delivered element. | ||||||||||||||||||||
VSOE of fair value for maintenance and other services is generally determined based on the price charged for the undelivered element when sold separately. The Company's process for establishing VSOE of fair value of maintenance services (PCS) is through performance of VSOE compliance test which is an analysis of the entire population of PCS renewal activity for its installed base of customers. The Company's process for the establishment of VSOE of fair value for professional services is through a performance of an analysis of the entire population of separate sales of services. | ||||||||||||||||||||
The Company accounts for reimbursements received for out-of-pocket expenses incurred, in accordance with ASC 605-45-45, "Reimbursements Received for Out-of-Pocket Expenses Incurred", under which reimbursements received for out-of-pocket expenses incurred should be characterized as revenue in the statements of operations. The reimbursements received for out-of-pocket expenses for years ended December 31, 2014, 2013 and 2012 amounted to $ 305 $ 347 and $ 287, respectively. | ||||||||||||||||||||
Accounting for stock-based compensation | l. | Accounting for stock-based compensation: | ||||||||||||||||||
The Company accounts for stock-based compensation in accordance with ASC 718 "Compensation - Stock Compensation, which requires the measurement and recognition of compensation expense based on estimated fair values for all stock-based payment awards made to employees and directors. 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 statements of operations. | ||||||||||||||||||||
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. Forfeitures are 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 estimates the fair value of stock options awards using the Black-Scholes option pricing model. This option-pricing model requires a number of assumptions, described below. The Company has historically not paid dividends and has no foreseeable plans to pay dividends. The Company used its historical stock prices for calculating volatility. The risk-free interest rate assumption is based on the rate of zero-coupon U.S. government securities appropriate for the expected term of the Company's employee stock options. The Company determined the expected life of the options according to the average of the vesting period and the expiration period. | ||||||||||||||||||||
The fair value for options granted in 2014, 2013 and 2012 was estimated at the date of grant using the following weighted average assumptions: | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Dividend yield | 0% | 0% | 0% | |||||||||||||||||
Expected volatility | 64% | 58% | 50% | |||||||||||||||||
Risk-free interest | 1.83% | 1.33% | 1.16% | |||||||||||||||||
Expected term (years) | 5.5 | 5.6 | 5.6 | |||||||||||||||||
Advertising expenses | m. | Advertising expenses: | ||||||||||||||||||
Advertising expenses are charged to the statements of operations, as incurred. Advertising expenses for the years ended December 31, 2014, 2013 and 2012 were $228, $ 170 and $ 161, respectively. | ||||||||||||||||||||
Severance pay | n. | Severance pay: | ||||||||||||||||||
The Company's liability for severance pay for its Israeli employees is calculated pursuant to Israel's Severance Pay Law based on the most recent salary of the employees multiplied by the number of years of employment, as of the balance sheet date. Israeli employees are entitled to severance equal to one month's salary for each year of employment or a portion thereof. The Company's liability for its Israeli employees, not under section 14 discussed below, is fully provided by monthly deposits with insurance policies and by an accrual. The value of these policies is recorded as an asset in the Company's balance sheet. | ||||||||||||||||||||
The deposited funds include profits (losses) accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israel's Severance Pay Law or labor agreements. The value of the deposited funds is based on the cash surrendered value of these policies. | ||||||||||||||||||||
Commencing from 2005, new employees of the Company are subject to Section 14 of the Severance Pay Law, under which the payments to the pension funds and insurance companies discharge the Company's obligation to the employees. Accumulated amounts in the pension funds and with the insurance companies are not under the control or administration of the Company, and accordingly, neither those amounts nor the corresponding accrual for severance pay are reflected in the balance sheet. | ||||||||||||||||||||
The severance pay expense for the years ended December 31, 2014, 2013 and 2012 amounted to $213, $ 196 and $ 398, respectively. | ||||||||||||||||||||
Fair value of financial instruments | o. | Fair value of financial instruments: | ||||||||||||||||||
The Company measures its investments in marketable securities and its foreign currency derivative contracts 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 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date. | ||||||||||||||||||||
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. | ||||||||||||||||||||
Level 3 - Unobservable inputs for the asset or liability. | ||||||||||||||||||||
The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. | ||||||||||||||||||||
The carrying amounts of financial instruments carried at cost, including cash and cash equivalents, restricted cash, trade receivables, other current assets, trade payables and other liabilities approximate their fair value due to the short-term maturities of such instruments. | ||||||||||||||||||||
Derivative instruments | p. | Derivative instruments: | ||||||||||||||||||
The Company carries out transactions involving foreign currency exchange derivative financial instruments. The transactions are designed to hedge the Company's exposure in currencies other than the dollar. The Company recognizes derivative instruments as either assets or liabilities and measures those instruments at fair value. If a derivative meets the definition of a hedge and is so designated, changes in the fair value of the derivative are recognized in other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative designated as a hedge is recognized in earnings. If a derivative does not meet the definition of a hedge, the changes in the fair value are included in earnings. | ||||||||||||||||||||
Net earnings (loss) per share | q. | Net earnings (loss) per share: | ||||||||||||||||||
Basic net earnings (loss) per share are computed based on the weighted average number of Ordinary shares outstanding during each year. Diluted net earnings (loss) per share are computed based on the weighted average number of Ordinary shares outstanding during each year, plus potentially dilutive Ordinary shares considered outstanding during the year, in accordance with ASC 260, "Earnings Per Share". | ||||||||||||||||||||
All outstanding stock options have been excluded from the calculation of the diluted net loss per share in 2014 and 2012. The total weighted average number of shares related to the outstanding stock options excluded from the calculations of diluted net earnings (loss) per share due to their anti-dilutive effect was 515,053, 510,705 and 513,691 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||
Concentrations of credit risk | r. | Concentrations of credit risk: | ||||||||||||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, marketable securities, trade receivables and restricted cash. | ||||||||||||||||||||
Cash, cash equivalents and restricted cash are invested mainly in U.S. dollars with major banks in the United States, Israel and other international banks. Such cash and cash equivalents in the United States may be in excess of insured limits and are not insured in other jurisdictions. Generally, these investments may be redeemed upon demand and therefore bear minimal risk. | ||||||||||||||||||||
The Company's marketable securities include investments in equity and US treasury bills. The Company's investment policy limits the amount the Company may invest in any one type of issuer, thereby reducing credit risk concentrations. In addition, the policy establishes minimum credit ratings for all types of securities. | ||||||||||||||||||||
The Company's trade receivables are mainly derived from sales to customers in North America and Europe. In judging the probability of collection from customers the Company continuously monitors collection and payments based upon the Company's historical experience of its existing customers. In connection with customers with whom the Company does not have previous experience, it evaluates the creditworthiness of those customers. An allowance for doubtful accounts is determined with respect to those amounts that the Company has determined to be doubtful of collection. | ||||||||||||||||||||
Treasury shares | s. | Treasury shares: | ||||||||||||||||||
The Company presents the cost to repurchase treasury shares as a reduction of shareholders' equity. | ||||||||||||||||||||
Comprehensive income | t. | Comprehensive income: | ||||||||||||||||||
The Company accounts for comprehensive income in accordance with ASC 220 "Comprehensive Income". This Statement establishes standards for the reporting and display of comprehensive income and its components in a full set of general purpose financial statements. Comprehensive income generally represents all changes in shareholders' equity during the period except those resulting from investments by, or distributions to, shareholders. The Company determined that its items of comprehensive income relate to foreign currency translation adjustments, gains (losses) on hedging derivative instruments and unrealized gains (losses) on marketable securities. | ||||||||||||||||||||
The following table shows the components of accumulated other comprehensive income, net of taxes, for the year ended December 31, 2014: | ||||||||||||||||||||
Year ended December 31, 2014 | ||||||||||||||||||||
Unrealized gains | Foreign currency | Unrealized gains | Total | |||||||||||||||||
(losses) on | translation | (losses) on cash | ||||||||||||||||||
marketable | adjustments | flow hedges | ||||||||||||||||||
securities | ||||||||||||||||||||
Beginning balance | $ | 1,853 | $ | 167 | $ | 49 | $ | 2,069 | ||||||||||||
Other comprehensive income (loss) | 581 | (125 | ) | (226 | ) | (212 | ) | |||||||||||||
Amounts reclassified from accumulated other comprehensive income | (1,624 | ) | - | 45 | (1,137 | ) | ||||||||||||||
Net current-period other comprehensive loss | (1,043 | ) | (125 | ) | (181 | ) | (1,349 | ) | ||||||||||||
Ending balance | $ | 810 | $ | 42 | $ | (132 | ) | $ | 720 | |||||||||||
Impact of recently issued accounting standards | u. | Impact of recently issued accounting standards: | ||||||||||||||||||
In May 2014, the Financial Accounting Standards Board issued an ASU No. 2014-09 on revenue from contracts with customers, which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. This ASU, which will be effective for the Company beginning January 1, 2017, allows for either full or modified retrospective methods of adoption and early adoption is not permitted. The Company is currently evaluating the method of adoption, as well as the effect that adoption of this ASU will have on its consolidated financial statements. | ||||||||||||||||||||
In 2014, the FASB issued ASU 15-2014, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, which defines management's responsibility to assess an entity's ability to continue as a going concern, and to provide related footnote disclosures if there is substantial doubt about its ability to continue as a going concern. The pronouncement is effective for annual reporting periods ending after December 15, 2016 with early adoption permitted. The Company is currently evaluating the effect, if any, that the adoption of this guidance will have on its consolidated financial statements. | ||||||||||||||||||||
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||||||||||||||||||||
Schedule of Estimated Useful Lives | % | |||||||||||||||||||
Computers and peripheral equipment | 14 - 33 | |||||||||||||||||||
Office furniture and equipment | 15-Jul | |||||||||||||||||||
Motor Vehicles | 17 | |||||||||||||||||||
Leasehold improvements | Over the shorter of the related lease period (including option terms) or the life of the asset | |||||||||||||||||||
Schedule of Weighted Average Assumptions Used | 2014 | 2013 | 2012 | |||||||||||||||||
Dividend yield | 0% | 0% | 0% | |||||||||||||||||
Expected volatility | 64% | 58% | 50% | |||||||||||||||||
Risk-free interest | 1.83% | 1.33% | 1.16% | |||||||||||||||||
Expected term (years) | 5.5 | 5.6 | 5.6 | |||||||||||||||||
Schedule of components of accumulated other comprehensive income | Year ended December 31, 2014 | |||||||||||||||||||
Unrealized gains | Foreign currency | Unrealized gains | Total | |||||||||||||||||
(losses) on | translation | (losses) on cash | ||||||||||||||||||
marketable | adjustments | flow hedges | ||||||||||||||||||
securities | ||||||||||||||||||||
Beginning balance | $ | 1,853 | $ | 167 | $ | 49 | $ | 2,069 | ||||||||||||
Other comprehensive income (loss) | 581 | (125 | ) | (226 | ) | (212 | ) | |||||||||||||
Amounts reclassified from accumulated other comprehensive income | (1,624 | ) | - | 45 | (1,137 | ) | ||||||||||||||
Net current-period other comprehensive loss | (1,043 | ) | (125 | ) | (181 | ) | (1,349 | ) | ||||||||||||
Ending balance | $ | 810 | $ | 42 | $ | (132 | ) | $ | 720 |
MARKETABLE_SECURITIES_Tables
MARKETABLE SECURITIES (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
MARKETABLE SECURITIES [Abstract] | ||||||||||||||||||||||||||||||||||||||||
Schedule of Marketable Securities | December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||||||||
Gross | Gross | Fair | Gross | Gross | Fair | |||||||||||||||||||||||||||||||||||
unrealized | unrealized | unrealized | unrealized | |||||||||||||||||||||||||||||||||||||
Cost | gains | losses | value | Cost | gains | losses | value | |||||||||||||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||||||||||||||||
US Government treasuries | $ | 3,349 | $ | - | $ | - | $ | 3,349 | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||||||||
Equity securities | $ | 703 | $ | 482 | $ | - | $ | 1,185 | $ | 4,020 | $ | 2,127 | $ | - | $ | 6,147 | ||||||||||||||||||||||||
$ | 4,052 | $ | 482 | $ | - | $ | 4,534 | $ | 4,020 | $ | 2,127 | $ | - | $ | 6,147 |
PROPERTY_AND_EQUIPMENT_NET_Tab
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
PROPERTY AND EQUIPMENT, NET [Abstract] | ||||||||||
Schedule of Property and Equipment, Net | December 31, | |||||||||
2014 | 2013 | |||||||||
Cost: | ||||||||||
Computers and peripheral equipment | $ | 2,866 | $ | 3,008 | ||||||
Office furniture and equipment | 492 | 482 | ||||||||
Motor Vehicles | 13 | 13 | ||||||||
Leasehold improvements | 349 | 342 | ||||||||
3,720 | 3,845 | |||||||||
Accumulated depreciation | 3,323 | 3,406 | ||||||||
Depreciated cost | $ | 397 | $ | 439 |
ACCRUED_EXPENSES_AND_OTHER_LIA1
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
ACCRUED EXPENSES AND OTHER LIABILITIES [Abstract] | ||||||||||
Schedule of Accrued Expenses and Other Liabilities | December 31, | |||||||||
2014 | 2013 | |||||||||
Employees and payroll accruals | $ | 1,213 | $ | 1,266 | ||||||
Accrued expenses | 510 | 373 | ||||||||
Accrued income tax | 429 | - | ||||||||
$ | 2,152 | $ | 1,639 |
COMMITMENTS_AND_CONTINGENT_LIA1
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract] | |||||
Schedule of Future Minimum Payments under Operating Leases | 2015 | $ | 432 | ||
2016 | 277 | ||||
2017 | 220 | ||||
2018 | 37 | ||||
$ | 966 |
DERIVATIVE_FINANCIAL_INSTRUMEN1
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS [Abstract] | |||||||||||||||||||||||
Schedule of Fair Value of Outstanding Derivative Instruments | December 31, | ||||||||||||||||||||||
Balance sheet location | 2014 | 2013 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Foreign exchange option contracts | Other current assets | $ | - | $ | 8 | ||||||||||||||||||
Foreign exchange forward contracts | (liabilities) | (132 | ) | 41 | |||||||||||||||||||
Derivatives assets (Liabilities) | $ | (132 | ) | $ | 49 | ||||||||||||||||||
Schedule of Gains (Losses) Reclassified From Other Comprehensive Income (Loss) into Income (Expenses) | Location in | Gains (losses) reclassified from | |||||||||||||||||||||
other comprehensive income (loss) | |||||||||||||||||||||||
into income (expenses) | |||||||||||||||||||||||
statement | Year ended December 31, | ||||||||||||||||||||||
of operations | 2014 | 2013 | 2012 | ||||||||||||||||||||
Derivatives in cash flow hedging relationship | |||||||||||||||||||||||
Foreign exchange option contracts | Cost of sales and operating expenses | $ | 8 | $ | 35 | $ | (11 | ) | |||||||||||||||
Foreign exchange forward contracts | Financial expense | 4 | 29 | (5 | ) | ||||||||||||||||||
Foreign exchange forward contracts | Cost of sales and operating expenses | (57 | ) | 107 | (70 | ) | |||||||||||||||||
$ | (45 | ) | $ | 171 | $ | (86 |
FAIR_VALUE_OF_FINANCIAL_INSTRU1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |||||||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | 31-Dec-14 | ||||||||||||||||||
Fair value measurements using input type | |||||||||||||||||||
Level 1 | Level 2 | Total | |||||||||||||||||
Marketable securities: | |||||||||||||||||||
US Government treasuries | $ | 3,349 | $ | $ | 3,349 | ||||||||||||||
Equity | 1,185 | - | 1,185 | ||||||||||||||||
Foreign currency derivative contracts | - | (132 | ) | (132 | ) | ||||||||||||||
Total | $ | 4,534 | $ | (132 | ) | $ | 4,402 | ||||||||||||
31-Dec-13 | |||||||||||||||||||
Fair value measurements using input type | |||||||||||||||||||
Level 1 | Level 2 | Total | |||||||||||||||||
Marketable securities: | |||||||||||||||||||
Equity | $ | 6,147 | $ | - | $ | 6,147 | |||||||||||||
Foreign currency derivative contracts | - | 49 | 49 | ||||||||||||||||
Total | $ | 6,147 | $ | 49 | $ | 6,196 |
SHAREHOLDERS_EQUITY_Tables
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
SHAREHOLDERS' EQUITY [Abstract] | |||||||||||||||||||||
Stock Option Activity | Number of options | Weighted - average | Weighted - average remaining contractual term | Aggregate intrinsic | |||||||||||||||||
exercise price | value | ||||||||||||||||||||
(in years) | |||||||||||||||||||||
Outstanding at the beginning of the year | 514,621 | $ | 2.76 | 5.07 | $ | 510 | |||||||||||||||
Granted | 16,000 | $ | 3.78 | ||||||||||||||||||
Exercised | (442 | ) | $ | 1.68 | |||||||||||||||||
Forfeited | (33,881 | ) | $ | 11.57 | |||||||||||||||||
Outstanding at end of year | 496,298 | $ | 2.19 | 4.36 | $ | 741 | |||||||||||||||
Exercisable options at end of year | 246,546 | $ | 2.77 | 3.87 | $ | 320 | |||||||||||||||
Vested and expected-to-vest at end of year | 462,403 | $ | 2.22 | 4.32 | $ | 686 | |||||||||||||||
Schedule of Stock-Based Compensation Expense | Year ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Cost of revenues | $ | 4 | $ | 6 | $ | 22 | |||||||||||||||
Research and development | 3 | 3 | 5 | ||||||||||||||||||
Sales and marketing | 14 | 12 | 20 | ||||||||||||||||||
General and administrative | 45 | 74 | (49 | ) | |||||||||||||||||
Total | $ | 66 | $ | 95 | $ | (2 | ) |
TAXES_ON_INCOME_Tables
TAXES ON INCOME (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
TAXES ON INCOME [Abstract] | |||||||||||||||||||||
Schedule of Deferred Tax Assets | December 31, | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||
Operating loss carryforward | $ | 12,791 | $ | 12,904 | |||||||||||||||||
Reserves and allowances | 1,434 | 526 | |||||||||||||||||||
Total deferred tax asset before valuation allowance | 14,225 | 13,430 | |||||||||||||||||||
Valuation allowance | (13,588 | ) | (13,246 | ) | |||||||||||||||||
Deferred tax assets | 637 | 184 | |||||||||||||||||||
Deferred tax liabilities | (195 | ) | (113 | ) | |||||||||||||||||
Deferred taxes, net | $ | 442 | $ | 71 | |||||||||||||||||
Schedule of Loss (Income) from Operations before Taxes | Year ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Domestic (Israel) | $ | (2,258 | ) | $ | (1,307 | ) | $ | (7,598 | ) | ||||||||||||
Foreign | 2,557 | 1,043 | 1,209 | ||||||||||||||||||
$ | 299 | $ | (264 | ) | $ | (6,389 | ) | ||||||||||||||
Schedule of Income Tax Expense | Year ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Current income tax expenses | $ | -737 | $ | (38 | ) | $ | (55 | ) | |||||||||||||
Previous year's tax benefit | - | 75 | - | ||||||||||||||||||
Deferred tax benefit (expense) | (230 | ) | 345 | - | |||||||||||||||||
$ | -967 | $ | 382 | $ | (55 | ) | |||||||||||||||
Domestic | $ | - | $ | - | $ | - | |||||||||||||||
Foreign | -967 | 382 | (55 | ) | |||||||||||||||||
$ | -967 | $ | 382 | $ | (55 | ) |
GEOGRAPHIC_INFORMATION_AND_MAJ1
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA [Abstract] | ||||||||||||||||||
Schedule of Revenues by Geographic Area | Year ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
United States | $ | 9,929 | $ | 7,837 | $ | 5,835 | ||||||||||||
Germany | 1,976 | 2,185 | 1,014 | |||||||||||||||
Netherlands | 1,668 | 1,633 | 9 | |||||||||||||||
United Kingdom | 1,513 | 1,878 | 2,691 | |||||||||||||||
Other | 1,287 | 2,093 | 1,218 | |||||||||||||||
$ | 16,373 | $ | 15,626 | $ | 10,767 | |||||||||||||
Schedule of Long-Lived Assets by Geographic Area | December 31, | |||||||||||||||||
2014 | 2013 | |||||||||||||||||
Property and equipment: | ||||||||||||||||||
North America | $ | 228 | $ | 308 | ||||||||||||||
Israel | 168 | 129 | ||||||||||||||||
Other | 1 | 2 | ||||||||||||||||
$ | 397 | $ | 439 | |||||||||||||||
Percentage of Total Revenues | Year ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Customer A | 23% | 5% | *) | |||||||||||||||
Customer B | 12% | 14% | *) | |||||||||||||||
Customer C | 10% | 10% | - | |||||||||||||||
Customer D | *) | 13% | 10% | |||||||||||||||
Customer E | *) | 11% | 22% | |||||||||||||||
Customer F | - | *) | 18% |
SUPPLEMENTARY_DATA_ON_SELECTED1
SUPPLEMENTARY DATA ON SELECTED STATEMENTS OF INCOME (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
SUPPLEMENTARY DATA ON SELECTED STATEMENTS OF INCOME [Abstract] | |||||||||||||||||||||
Supplemental Income Statement | Year ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Financial income: | |||||||||||||||||||||
Foreign currency translation adjustments | $ | 12 | $ | 10 | $ | - | |||||||||||||||
Realized gain on marketable securities | 1,862 | 326 | 689 | ||||||||||||||||||
Interest income and amortization/accretion of premium/discount on marketable securities | 2 | 5 | 7 | ||||||||||||||||||
Dividend on equity marketable securities | 85 | 160 | 216 | ||||||||||||||||||
1,961 | 501 | 912 | |||||||||||||||||||
Financial expenses: | |||||||||||||||||||||
Bank charges | (20 | ) | (28 | ) | (33 | ) | |||||||||||||||
Foreign currency translation adjustments | - | - | (23 | ) | |||||||||||||||||
(20 | ) | (28 | ) | (56 | ) | ||||||||||||||||
$ | 1,941 | $ | 473 | $ | 856 |
SIGNIFICANT_ACCOUNTING_POLICIE3
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||
Other than temporary impairment of marketable securities | |||
Gain on sale of marketable securities previously impaired | 172 | 48 | 163 |
Reimbursement revenue | 305 | 347 | 287 |
Advertising expense | 228 | 170 | 161 |
Severance expense | $213 | $196 | $398 |
Weighted average number of anti-dilutive shares excluded from the calculation of diluted net earnings | 515,053 | 510,705 | 513,691 |
SIGNIFICANT_ACCOUNTING_POLICIE4
SIGNIFICANT ACCOUNTING POLICIES (Useful Lives of Assets) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Motor Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 17 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | Over the shorter of the related lease period (including option terms) or the life of the asset |
Minimum [Member] | Computers and peripheral equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 14 years |
Minimum [Member] | Office furniture and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 7 years |
Maximum [Member] | Computers and peripheral equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 33 years |
Maximum [Member] | Office furniture and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 15 years |
SIGNIFICANT_ACCOUNTING_POLICIE5
SIGNIFICANT ACCOUNTING POLICIES (Weighted Average Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 64.00% | 58.00% | 50.00% |
Risk-free interest | 1.83% | 1.33% | 1.16% |
Expected term (years) | 5 years 6 months | 5 years 7 months 6 days | 5 years 7 months 6 days |
SIGNIFICANT_ACCOUNTING_POLICIE6
SIGNIFICANT ACCOUNTING POLICIES (Components Of Accumulated Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated other comprehensive income [Line Items] | |||
Beginning balance | $2,069 | ||
Other comprehensive income (loss) | -212 | ||
Amounts reclassified from accumulated other comprehensive income | -1,137 | ||
Net current-period other comprehensive loss | -1,349 | 787 | 341 |
Ending balance | 720 | 2,069 | |
Unrealized gains (losses) on marketable securities [Member] | |||
Accumulated other comprehensive income [Line Items] | |||
Beginning balance | 1,853 | ||
Other comprehensive income (loss) | 581 | ||
Amounts reclassified from accumulated other comprehensive income | -1,624 | ||
Net current-period other comprehensive loss | -1,043 | ||
Ending balance | 810 | ||
Foreign currency translation adjustments [Member] | |||
Accumulated other comprehensive income [Line Items] | |||
Beginning balance | 167 | ||
Other comprehensive income (loss) | -125 | ||
Amounts reclassified from accumulated other comprehensive income | |||
Net current-period other comprehensive loss | -125 | ||
Ending balance | 42 | ||
Unrealized gains (losses) on cash flow hedges [Member] | |||
Accumulated other comprehensive income [Line Items] | |||
Beginning balance | 49 | ||
Other comprehensive income (loss) | -226 | ||
Amounts reclassified from accumulated other comprehensive income | 45 | ||
Net current-period other comprehensive loss | -181 | ||
Ending balance | ($132) |
MARKETABLE_SECURITIES_Investme
MARKETABLE SECURITIES (Investments In Marketable Securities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | $4,052 | $4,020 |
Gross unrealized Gains | 482 | 2,127 |
Gross unrealized Losses | ||
Fair value | 4,534 | 6,147 |
US Government treasuries [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 3,349 | |
Gross unrealized Gains | ||
Gross unrealized Losses | ||
Fair value | 3,349 | |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 703 | 4,020 |
Gross unrealized Gains | 482 | 2,127 |
Gross unrealized Losses | ||
Fair value | $1,185 | $6,147 |
PROPERTY_AND_EQUIPMENT_NET_Det
PROPERTY AND EQUIPMENT, NET (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Property and equipment cost | $3,720 | $3,845 | |
Accumulated depreciation | 3,323 | 3,406 | |
Property and equipment, net | 397 | 439 | |
Depreciation cost | 190 | 241 | 351 |
Computers and peripheral equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment cost | 2,866 | 3,008 | |
Office furniture and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment cost | 492 | 482 | |
Motor Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment cost | 13 | 13 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment cost | $349 | $342 |
ACCRUED_EXPENSES_AND_OTHER_LIA2
ACCRUED EXPENSES AND OTHER LIABILITIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ACCRUED EXPENSES AND OTHER LIABILITIES [Abstract] | ||
Employees and payroll accruals | $1,213 | $1,266 |
Accrued expenses | 510 | 373 |
Accrued income tax | 429 | |
Accrued Liabilities, Current, Total | $2,152 | $1,639 |
COMMITMENTS_AND_CONTINGENT_LIA2
COMMITMENTS AND CONTINGENT LIABILITIES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract] | |||
2015 | $432 | ||
2016 | 277 | ||
2017 | 220 | ||
2018 | 37 | ||
Total | 966 | ||
Rent expense | $396 | $370 | $527 |
DERIVATIVE_FINANCIAL_INSTRUMEN2
DERIVATIVE FINANCIAL INSTRUMENTS (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Ineffective portion of the change in fair value of a cash flow hedge | $4,000 | $29,000 | $5,000 |
Exposure to loss due to credit risk by counterparties | 0 | ||
Notional amount | 3,544,000 | ||
Unrealized losses, net of tax, to be reclassified in next 12 months | -132,000 | ||
Unrealized gain (loss) from hedge derivatives | -181,000 | ||
Derivative liabilities | 132,000 | ||
Research And Development Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Increase (decrease) in gains recognized in other comprehensive income (loss) on derivative (effective portion) | -28,000 | ||
Sales and marketing [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Increase (decrease) in gains recognized in other comprehensive income (loss) on derivative (effective portion) | -14,000 | ||
General and Administrative Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Increase (decrease) in gains recognized in other comprehensive income (loss) on derivative (effective portion) | ($7,000) |
DERIVATIVE_FINANCIAL_INSTRUMEN3
DERIVATIVE FINANCIAL INSTRUMENTS (Schedule of Outstanding Derivative Instruments Qualified as Hedging Instruments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | ($132) | |
Derivatives assets (Liabilities) | -132 | 49 |
Foreign Exchange Option [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 8 | |
Foreign Exchange Option [Member] | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | ||
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 41 | |
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | ($132) |
DERIVATIVE_FINANCIAL_INSTRUMEN4
DERIVATIVE FINANCIAL INSTRUMENTS (Schedule of Gains (Losses) Reclassified From Other Comprehensive Income (Loss) into Income (Expenses) (Details) (Cash Flow Hedging [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) reclassified from other comprehensive income (loss) into income (expenses) (effective portion) | ($45) | $171 | ($86) |
Foreign exchange option contracts [Member] | Cost of Sales and Operating Expenses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) reclassified from other comprehensive income (loss) into income (expenses) (effective portion) | 8 | 35 | -11 |
Foreign exchange forward contracts [Member] | Cost of Sales and Operating Expenses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) reclassified from other comprehensive income (loss) into income (expenses) (effective portion) | -57 | 107 | -70 |
Foreign exchange forward contracts [Member] | Financial expenses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) reclassified from other comprehensive income (loss) into income (expenses) (effective portion) | $4 | $29 | ($5) |
FAIR_VALUE_OF_FINANCIAL_INSTRU2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts, assets | ($132) | $49 |
Total | 4,402 | 6,196 |
US Government treasuries [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketables securities | 3,349 | |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketables securities | 1,185 | 6,147 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts, assets | ||
Total | 4,534 | 6,147 |
Fair Value, Inputs, Level 1 [Member] | US Government treasuries [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketables securities | 3,349 | |
Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketables securities | 1,185 | 6,147 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts, assets | -132 | 49 |
Total | -132 | 49 |
Fair Value, Inputs, Level 2 [Member] | US Government treasuries [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketables securities | ||
Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketables securities |
SHAREHOLDERS_EQUITY_Narrative_
SHAREHOLDERS' EQUITY (Narrative) (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2008 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $66 | $95 | ($2) | |
Stock repurchase program, shares repurchased | 1,111,796 | |||
Incentive Share Option Plans [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Ordinary shares still available for future grant | 1,157,925 | |||
Unrecognized compensation cost related to non-vested stock options | $40 | |||
Unrecognized compensation cost, recognition period | 1 year 4 months 10 days | |||
Incentive Share Option Plans [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period for plan | 2 years | |||
Expiration period of granted options | 7 years | |||
Incentive Share Option Plans [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period for plan | 4 years | |||
Expiration period of granted options | 10 years |
SHAREHOLDERS_EQUITY_Option_Act
SHAREHOLDERS' EQUITY (Option Activity) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Number of options | |||
Outstanding at the beginning of the year | 514,621 | ||
Granted | 16,000 | ||
Exercised | -442 | ||
Forfeited | -33,881 | ||
Outstanding at end of year | 496,298 | 514,621 | |
Exercisable options at end of year | 246,546 | ||
Vested and expected-to-vest at end of year | 462,403 | ||
Weighted-average exercise price | |||
Outstanding at the beginning of the year | $2.76 | ||
Granted | $3.78 | ||
Exercised | $1.68 | ||
Forfeited | $11.57 | ||
Outstanding at end of year | $2.19 | $2.76 | |
Exercisable options at end of year | $2.77 | ||
Vested and expected-to-vest at end of year | $2.22 | ||
Weighted-average remaining conractual term (in years) | |||
Weighted- average remaining contractual term | 4 years 4 months 10 days | 5 years 25 days | |
Exercisable options at end of year | 3 years 10 months 13 days | ||
Vested and expected-to-vest at end of year | 4 years 3 months 25 days | ||
Aggregate intrinsic value, Outstanding at end of year | $741 | $510 | |
Exercisable options at end of year, Aggregate intrinsic value | 320 | ||
Vested and expected-to-vest at end of year, Aggregate intrinsic value | 686 | ||
Total intrinsic value of stock options exercised | $3 | ||
Weighted-average estimated grant date fair value | $2.17 | $0.72 | $0.69 |
SHAREHOLDERS_EQUITY_Allocation
SHAREHOLDERS' EQUITY (Allocation of Stock-Based Compensation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $66 | $95 | ($2) |
Cost of revenues [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 4 | 6 | 22 |
Research and development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 3 | 3 | 5 |
Sales and marketing [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 14 | 12 | 20 |
General and administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $45 | $74 | ($49) |
TAXES_ON_INCOME_Narrative_Deta
TAXES ON INCOME (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Line Items] | |||
Income tax rates | 26.50% | ||
Change in amount for which valuation allowance provided | $12,677 | ||
Deferred tax benefit (expense) | -230 | 345 | |
Domestic Tax Authority [Member] | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss carry forwards | 44,520 | ||
Foreign Tax Authority [Member] | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss carry forwards | |||
European Subsidiaries [Member] | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss carry forwards | $2,404 | ||
Amended Rate Year One [Member] | |||
Income Tax Disclosure [Line Items] | |||
Income tax rates | 16.00% | ||
Minimum [Member] | |||
Income Tax Disclosure [Line Items] | |||
Income tax rates | 10.00% | ||
Maximum [Member] | |||
Income Tax Disclosure [Line Items] | |||
Income tax rates | 25.00% |
TAXES_ON_INCOME_Deferred_Tax_A
TAXES ON INCOME (Deferred Tax Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Operating loss carryforward | $12,791 | $12,904 |
Reserves and allowances | 1,434 | 526 |
Total deferred tax asset before valuation allowance | 14,225 | 13,430 |
Valuation allowance | -13,588 | -13,246 |
Deferred tax assets | 637 | 184 |
Deferred tax liabilities | -195 | -113 |
Net deferred tax assets | $442 | $71 |
TAXES_ON_INCOME_Loss_Income_fr
TAXES ON INCOME (Loss (Income) from Continuing Operations Before Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
TAXES ON INCOME [Abstract] | |||
Domestic (Israel) | ($2,258) | ($1,307) | ($7,598) |
Foreign | 2,557 | 1,043 | 1,209 |
Income (loss) before taxes | $299 | ($264) | ($6,389) |
TAXES_ON_INCOME_Schedule_of_Co
TAXES ON INCOME (Schedule of Components of Income Tax) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
TAXES ON INCOME [Abstract] | |||
Current income tax expenses | ($737) | ($38) | ($55) |
Previous year's tax benefit | 75 | ||
Deferred tax benefit (expense) | -230 | 345 | |
Current Income Tax Expense (Benefit), Total | ($967) | $382 | ($55) |
TAXES_ON_INCOME_Components_of_
TAXES ON INCOME (Components of Income Tax) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
TAXES ON INCOME [Abstract] | |||
Domestic | |||
Foreign | -967 | 382 | -55 |
Current Income Tax Expense (Benefit), Total | ($967) | $382 | ($55) |
GEOGRAPHIC_INFORMATION_AND_MAJ2
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA (Revenues) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $16,373 | $15,626 | $10,767 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 9,929 | 7,837 | 5,835 |
Germany [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,976 | 2,185 | 1,014 |
Netherland [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,668 | 1,633 | 9 |
United Kingdom [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,513 | 1,878 | 2,691 |
Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $1,287 | $2,093 | $1,218 |
GEOGRAPHIC_INFORMATION_AND_MAJ3
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA (Long-lived Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment | $397 | $439 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment | 228 | 308 |
Israel [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment | 168 | 129 |
Other [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment | $1 | $2 |
GEOGRAPHIC_INFORMATION_AND_MAJ4
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA (Major customers) (Details) (Revenue [Member]) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Customer A [Member] | ||||||
Revenue, Major Customer [Line Items] | ||||||
Percentage of total revenue from customer | 23.00% | 5.00% | [1] | |||
Customer B [Member] | ||||||
Revenue, Major Customer [Line Items] | ||||||
Percentage of total revenue from customer | 12.00% | 14.00% | [1] | |||
Customer C [Member] | ||||||
Revenue, Major Customer [Line Items] | ||||||
Percentage of total revenue from customer | 10.00% | 10.00% | ||||
Customer D [Member] | ||||||
Revenue, Major Customer [Line Items] | ||||||
Percentage of total revenue from customer | [1] | 13.00% | 10.00% | |||
Customer E [Member] | ||||||
Revenue, Major Customer [Line Items] | ||||||
Percentage of total revenue from customer | [1] | 11.00% | 22.00% | |||
Customer F [Member] | ||||||
Revenue, Major Customer [Line Items] | ||||||
Percentage of total revenue from customer | [1] | 18.00% | ||||
[1] | Less than 1%. |
SUPPLEMENTARY_DATA_ON_SELECTED2
SUPPLEMENTARY DATA ON SELECTED STATEMENTS OF INCOME (Income and Expenses) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financial income: | |||
Foreign currency translation adjustments | $12 | $10 | |
Realized gain on marketable securities | 1,862 | 326 | 689 |
Interest income and amortization/accretion of premium/discount on marketable securities | 2 | 5 | 7 |
Dividend on equity marketable securities | 85 | 160 | 216 |
Financial income | 1,961 | 501 | 912 |
Financial expenses: | |||
Bank charges | -20 | -28 | -33 |
Foreign currency translation adjustments | -23 | ||
Financial expense | -20 | -28 | -56 |
Financial Inome (Expense), Net | $1,941 | $473 | $856 |
SUPPLEMENTARY_DATA_ON_SELECTED3
SUPPLEMENTARY DATA ON SELECTED STATEMENTS OF INCOME (Change in Allowance for Doubtful Accounts) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
SUPPLEMENTARY DATA ON SELECTED STATEMENTS OF INCOME [Abstract] | |||
Allowance for Doubtful Accounts Receivable | $44 | $0 | $0 |
Increase (decrease) in allowance for doubtful accounts | $44 |