Document_And_Entity_Informatio
Document And Entity Information | 12 Months Ended |
Dec. 31, 2014 | |
Document Information [Line Items] | |
Entity Registrant Name | MIND CTI LTD |
Entity Central Index Key | 1119083 |
Current Fiscal Year End Date | -19 |
Entity Filer Category | Non-accelerated Filer |
Trading Symbol | MNDO |
Entity Common Stock, Shares Outstanding | 19,110,318 |
Document Type | 20-F |
Amendment Flag | FALSE |
Document Period End Date | 31-Dec-14 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2014 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | $8,100 | $8,212 | ||
Short term bank deposits | 4,551 | 8,266 | ||
Marketable securities | 5,038 | 2,836 | ||
Accounts receivable, net: | ||||
Trade | 2,595 | 1,241 | ||
Other | 234 | 165 | ||
Prepaid expenses | 384 | 221 | ||
Deferred cost of revenues | 21 | 63 | ||
Deferred taxes | 175 | 256 | ||
Inventory | 10 | 10 | ||
Total current assets | 21,108 | 21,270 | ||
INVESTMENTS AND OTHER NON CURRENT ASSETS: | ||||
Marketable securities - available-for-sale | 1,574 | [1] | 517 | [1] |
Severance pay fund | 1,597 | 1,673 | ||
Deferred cost of revenues | 0 | 44 | ||
Deferred income taxes | 20 | 40 | ||
PROPERTY AND EQUIPMENT, net of accumulated depreciation and amortization | 618 | 650 | ||
GOODWILL | 5,430 | 5,430 | ||
Total assets | 30,347 | 29,624 | ||
Accounts payable and accruals: | ||||
Trade | 138 | 525 | ||
Other | 2,306 | 1,153 | ||
Deferred revenues | 3,671 | 4,796 | ||
Total current liabilities | 6,115 | 6,474 | ||
LONG TERM LIABILITIES: | ||||
Deferred revenues | 134 | 357 | ||
Employees' rights upon retirement | 1,687 | 1,804 | ||
Total liabilities | 7,936 | 8,635 | ||
SHAREHOLDERS’ EQUITY: | ||||
Share capital | 54 | 54 | ||
Additional paid-in capital | 25,724 | 30,196 | ||
Accumulated other comprehensive income (loss) | -63 | 31 | ||
Differences from translation of foreign currency financial statements of a subsidiary | -877 | -958 | ||
Treasury shares | -1,863 | -2,287 | ||
Accumulated deficit | -564 | -6,047 | ||
Total shareholders’ equity | 22,411 | 20,989 | ||
Total liabilities and shareholders’ equity | $30,347 | $29,624 | ||
[1] | As of December 31, 2014 the Company held a long term security bond which is classified as available for sale security and is presented on its fair value. The fair value of the available for sale securities based on quoted prices in active markets for identical instruments (Level 1 as defined under ASC820). |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
REVENUES: | |||
Sales of licenses | $5,397 | $4,613 | $5,960 |
Services | 19,623 | 13,867 | 14,249 |
Revenues, Total | 25,020 | 18,480 | 20,209 |
COST OF REVENUES | |||
Cost of sales of licenses | 488 | 421 | 853 |
Cost of services | 9,462 | 7,450 | 6,999 |
Cost of Revenue, Total | 9,950 | 7,871 | 7,852 |
GROSS PROFIT | 15,070 | 10,609 | 12,357 |
RESEARCH AND DEVELOPMENT EXPENSES | 4,539 | 5,030 | 4,643 |
SELLING AND MARKETING EXPENSES | 1,140 | 1,694 | 1,524 |
GENERAL AND ADMINISTRATIVE EXPENSES | 1,934 | 1,726 | 1,818 |
OPERATING INCOME | 7,457 | 2,159 | 4,372 |
FINANCIAL INCOME (EXPENSES) - net | -306 | 163 | 298 |
INCOME BEFORE TAXES ON INCOME | 7,151 | 2,322 | 4,670 |
INCOME TAX EXPENSE | 1,668 | 137 | 392 |
NET INCOME FOR THE YEAR | $5,483 | $2,185 | $4,278 |
EARNINGS PER ORDINARY SHARE - | |||
Basic and diluted (in dollars per share) | $0.29 | $0.12 | $0.23 |
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES USED IN COMPUTATION OF EARNINGS PER ORDINARY SHARE - IN THOUSANDS | |||
Basic (in shares) | 18,949 | 18,869 | 18,767 |
Diluted (in shares) | 19,032 | 18,890 | 18,846 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Comprehensive Income | |||
Net Income | $5,483 | $2,185 | $4,278 |
Other Comprehensive Income (Loss) | |||
Currency translation adjustments | 81 | 85 | 106 |
Unrealized gain (loss) from available-for-sale securities | -94 | 14 | 87 |
Total Other Comprehensive Income (Loss) | -13 | 99 | 193 |
Total Comprehensive Income | $5,470 | $2,284 | $4,471 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Treasury Shares [Member] |
In Thousands | ||||||
BALANCE at Dec. 31, 2011 | $23,019 | $54 | $30,058 | ($1,219) | ($3,473) | ($2,401) |
BALANCE (in shares) at Dec. 31, 2011 | 18,730 | |||||
Comprehensive income (loss) | 4,471 | 0 | 0 | 193 | 4,278 | 0 |
Dividend paid (Note 7c) | -4,505 | 0 | 0 | 0 | -4,505 | 0 |
Employees share based compensation expenses | 80 | 0 | 80 | 0 | 0 | 0 |
Exercise of options from treasury stock issued to employees | 41 | 0 | 0 | 0 | 0 | 41 |
Exercise of options from treasury stock issued to employees (in shares) | 51 | |||||
BALANCE at Dec. 31, 2012 | 23,106 | 54 | 30,138 | -1,026 | -3,700 | -2,360 |
BALANCE (in shares) at Dec. 31, 2012 | 18,781 | |||||
Comprehensive income (loss) | 2,284 | 0 | 0 | 99 | 2,185 | 0 |
Dividend paid (Note 7c) | -4,532 | 0 | 0 | 0 | -4,532 | 0 |
Employees share based compensation expenses | 58 | 0 | 58 | 0 | 0 | 0 |
Exercise of options from treasury stock issued to employees | 73 | 0 | 0 | 0 | 0 | 73 |
Exercise of options from treasury stock issued to employees (in shares) | 104 | |||||
BALANCE at Dec. 31, 2013 | 20,989 | 54 | 30,196 | -927 | -6,047 | -2,287 |
BALANCE (in shares) at Dec. 31, 2013 | 18,885 | |||||
Comprehensive income (loss) | 5,470 | 0 | 0 | -13 | 5,483 | 0 |
Dividend paid (Note 7c) | -4,544 | 0 | -4,544 | 0 | 0 | 0 |
Employees share based compensation expenses | 72 | 0 | 72 | 0 | 0 | 0 |
Exercise of options from treasury stock issued to employees | 424 | 0 | 0 | 0 | 0 | 424 |
Exercise of options from treasury stock issued to employees (in shares) | 225 | |||||
BALANCE at Dec. 31, 2014 | $22,411 | $54 | $25,724 | ($940) | ($564) | ($1,863) |
BALANCE (in shares) at Dec. 31, 2014 | 19,110 |
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 | $5,483 | $2,185 | $4,278 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization (see Note 3) | 233 | 250 | 270 |
Deferred taxes, net | 101 | -157 | 138 |
Accrued severance pay | 68 | 77 | 147 |
Unrealized loss (gain) from marketable securities, net | -26 | 6 | 0 |
Capital loss (gain) on sale of property and equipment, net | 0 | -5 | 14 |
Employees share based compensation | 72 | 58 | 80 |
Realized loss (gain) on sale of marketable securities - available for sale, net | -9 | 1 | 21 |
Decrease (increase) in accounts receivable: | |||
Trade | -1,354 | -390 | 913 |
Other | -70 | -15 | 149 |
Decrease (increase) in prepaid expenses and deferred cost of revenues | -77 | 351 | 456 |
Decrease in inventories | 0 | 3 | 16 |
Increase (decrease) in accounts payable and accruals: | |||
Trade | -387 | 412 | -639 |
Other | 1,153 | 1 | -65 |
Increase (decrease) in deferred revenues | -1,346 | 2,413 | -842 |
Net cash provided by operating activities | 3,841 | 5,190 | 4,936 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Investment in marketable securities - available for sale | -1,664 | 0 | 0 |
Proceeds from sale of marketable securities - available for sale | 522 | 0 | 444 |
Purchase of property and equipment | -201 | -240 | -169 |
Severance pay funds | -109 | -162 | -174 |
Investment in short-term bank deposits | 0 | -2,559 | -1,258 |
Realization of short-term bank deposits | 3,746 | 0 | 0 |
Investments in marketable securities | -2,176 | -2,842 | 0 |
Proceeds from sale of property and equipment | 0 | 26 | 84 |
Net cash provided by (used in) investing activities | 118 | -5,777 | -1,073 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Employee stock options exercised and paid | 424 | 73 | 41 |
Dividend paid | -4,544 | -4,532 | -4,505 |
Net cash used in financing activities | -4,120 | -4,459 | -4,464 |
TRANSLATION ADJUSTMENTS ON CASH AND CASH EQUIVALENTS | 49 | -52 | 45 |
DECREASE IN CASH AND CASH EQUIVALENTS | -112 | -5,098 | -556 |
BALANCE OF CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 8,212 | 13,310 | 13,866 |
BALANCE OF CASH AND CASH EQUIVALENTS AT END OF YEAR | 8,100 | 8,212 | 13,310 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW AND NON-CASH ACTIVITIES- | |||
Taxes paid | $1,266 | $95 | $113 |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Accounting Policies [Abstract] | ||||
Significant Accounting Policies [Text Block] | NOTE 1 - | SIGNIFICANT ACCOUNTING POLICIES | ||
a. | General: | |||
1) | Nature of operations | |||
MIND C.T.I. Ltd. (the “Company”) is an Israeli company, which together with its subsidiaries operate in one segment, providing integrated products and services. The Company designs, develops, markets, supports, implements and operates billing and customer care systems, including consulting and managed services, primarily to wireless, wireline, next-generation service providers throughout the world. The Company also provides a call management system used by enterprises for call accounting, traffic analysis, and fraud detection. | ||||
The Company has wholly-owned subsidiaries in the United States ("Mind Software Inc." or "Sentori"), Romania ("Mind Software SRL"), and U.K ("Mind Software Limited" or "Omni"). | ||||
2) | Accounting principles | |||
The consolidated financial statements were prepared in accordance with United States Generally Accepted Accounting Principles ("U.S. GAAP"). | ||||
3) | Use of estimates in preparation of financial statements | |||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting years. Actual results could differ from those estimates. The most significant estimates with regard to the Company's consolidated financial statements relate to revenue recognition of products and service sales using the percentage of completion method, the valuation of auction rate securities, and the impairment of goodwill and other intangible asset. | ||||
4) | Functional currency | |||
The currency of the primary economic environment in which the operations of the Company and its subsidiaries are conducted is the U.S. dollar (“dollar” or “$”). Most of the Company’s revenues are derived from sales outside of Israel, which are denominated primarily in dollars. In addition, the majority of the Company’s cash reserves and financing activities are denominated in dollars. Thus, the functional currency of the Company and its subsidiaries is the dollar. | ||||
Transactions and balances originally denominated in dollars are presented at their original amounts. Balances in non-dollar currencies are re-measured into dollars using historical and current exchange rates for non-monetary and monetary balances, respectively. For non-dollar transactions and other items (detailed below) reflected in the statements of operations, the following exchange rates are used: (i) for transactions: exchange rates at transaction dates or average rates; and (ii) for other items (derived from non-monetary balance sheet items, such as depreciation and amortization, etc.) - historical exchange rates. The resulting currency translation gains or losses are carried to financial income or expenses, as appropriate. | ||||
b. | Principles of consolidation: | |||
1) | The consolidated financial statements include the accounts of the Company and all of its subsidiaries. | |||
2) | Inter-company balances and transactions have been eliminated in consolidation. Profits from inter-company sales, not yet realized outside the Company and its subsidiaries, have also been eliminated. | |||
c. | Reclassifications: | |||
Certain amounts in prior years’ financial statements have been reclassified to conform to the current year’s presentation. | ||||
d. | Cash equivalents: | |||
The Company and its subsidiaries consider all highly liquid investments, which include short-term bank deposits (up to three months from original date of deposit) that are not restricted as to withdrawal or use, to be cash equivalents. | ||||
e. | Short-term bank deposits: | |||
Bank deposits with maturities of more than three months but less than one year are included in short-term bank deposits. Such short-term bank deposits are stated at cost. | ||||
f. | Marketable securities: | |||
Marketable securities are classified as "financial assets held at fair value through profit or loss" when held for trading or are designated upon initial recognition as financial assets at fair value through profit or loss. | ||||
Financial asset at fair value through profit or loss is shown at fair value. Any gain or loss arising from changes in fair value, including those originating from changes in exchange rates is recognized in profit or loss in the period in which the change occurred. Net gain or loss recognized in profit or loss incorporates any dividend or interest earned on the financial asset. | ||||
g. | Available-for-sale financial assets (AFS financial assets): | |||
AFS financial assets are non-derivatives that are either designated as AFS or are not classified as (a) loans and receivables, (b) held-to-maturity investments or (c) financial assets at fair value through profit or loss. | ||||
The AFS held by the Company are traded in an active market and are stated at fair value at the end of each reporting period. Interest income calculated using the effective interest method. Changes in the fair value of available-for-sale financial assets are recognized in other comprehensive income (loss). Unrealized losses considered to be temporary are reflected in other comprehensive income (loss). Unrealized losses that are considered to be other-than-temporary are charged to income as an impairment charge. See also Note 2. | ||||
h. | Inventories: | |||
Inventories are valued at the lower of cost or market value. Cost is determined by the “first-in, first-out” method. Most of the inventories consist of acquired hardware. | ||||
i. | Property and equipment: | |||
1) | These assets are stated at cost less accumulated depreciation. | |||
2) | The assets are depreciated by the straight-line method, on basis of their estimated useful life. | |||
Annual rates of depreciation are as follows: | ||||
% | ||||
Computers and electronic equipment | 15-33 | |||
(mainly 33) | ||||
Office furniture and equipment | 7-Jun | |||
Vehicles | 15 | |||
Leasehold improvements are amortized by the straight-line method over the term of the lease, which is shorter than the estimated useful life of the improvements. | ||||
j. | Goodwill: | |||
Goodwill reflects the excess of the purchase price of subsidiaries acquired over the fair value of net assets acquired. Under ASC 350 (formerly SFAS No. 142), goodwill is not amortized but rather tested for impairment at least annually. The Company performs annual testing for impairment of the goodwill during the third quarter of each year, see also Note 4. | ||||
k. | Income taxes: | |||
1) | Deferred taxes are determined utilizing the asset and liability method based on the estimated future tax effects of differences between the financial accounting and tax bases of assets and liabilities under the applicable tax laws. Deferred income tax provisions and benefits are based on the changes in the deferred tax asset or tax liability from period to period. Valuation allowance is included in respect of deferred tax assets when it is more likely than not, that such asset will not be realized. | |||
2) | The Company adopted the provisions of Financial Accounting Standards Board (FASB) interpretation No. 48 (“FIN 48”), Accounting for Uncertainty in Income Taxes, an Interpretation of ASC 740-10 on January 1, 2007. | |||
l. | Revenue recognition: | |||
The Company’s revenues consist of revenues generated from software licensing, sales of professional services, including integration and implementation, sales of third-party hardware and software, maintenance services, managed services and training. | ||||
The Company applies the provisions of Statement of ASC 985-605, "Revenue Recognition" (formerly SOP No. 97-2) and ASC 605-35, "Construction-Type and Production-Type Contracts" (formerly SOP No. 81-1), as follows: | ||||
i) | Licenses | |||
Revenue from sale of products is recognized when delivery has occurred, persuasive evidence of an arrangement exists, the sales price is fixed or determinable and collection is probable. If collection is not considered probable, revenue is recognized when the fee is collected. The Company generally does not grant a right of return on products sold to customers. | ||||
ii) | Services | |||
The services the Company provides consist of implementation, training, hardware installation, maintenance, support and project management. All services are priced on a fixed price basis and are recognized ratably over the period in which the services are provided except services which are recognized under the percentage-of-completion method as described below. | ||||
Products are mainly supplied with maintenance for a period of one year from delivery. When revenue on sale of the products is recognized, the Company defers a portion of the sales price and recognizes it as maintenance revenue ratably over the above period. The portion of the sales price that is deferred is determined based on the fair value of the service as priced in transactions in which the Company renders maintenance solely. Where vendor specific objective evidence for fair value cannot be determined, the entire sale is being recognized over the maintenance period. Where the services are considered essential to the functionality of the software products, both the software product revenue and the revenue related to the integration and implementation services are recognized under the percentage-of-completion method in accordance with ASC 605-35. The Company generally determines the percentage-of-completion by comparing the labor performed to date to the estimated total labor required to complete the project. When the estimate indicates that a loss will be incurred, such loss is recorded in the period identified. Significant judgments and estimates are involved in determining the percent complete of each contract. Different assumptions could yield materially different results. | ||||
(iii) | Managed Services | |||
Revenues from managed services include a monthly fee for services and for right of use and are recorded as service revenues and license revenues, respectively. The monthly fee is based mainly on number of subscribers or customer’s business volume and the agreements include a minimum monthly charge. These revenues are recognized on a monthly basis. Where installation services are sold together with a managed services contract, the installation services are being recognized over the entire contract term, commencing the deployment finalization. | ||||
Deferred costs of revenues are presented net of related advances from customers. | ||||
m. | Research and development expenses: | |||
Pursuant to ASC 985-20, "Software - Costs of Software to be Sold, Leased, or Marketed" (formerly SFAS No. 86), development costs related to software products are expensed as incurred until the “technological feasibility” of the product has been established. Because of the relatively short time period between "technological feasibility" and product release, and the insignificant amount of costs incurred during such period, no software development costs have been capitalized. | ||||
n. | Allowance for doubtful accounts: | |||
The allowance is determined for specific debts doubtful of collection. | ||||
o. | Stock based compensation: | |||
The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation - Stock Compensation" (formerly SFAS No. 123 (R)), which requires the measurement and recognition of compensation expense based on estimated fair values for all share-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 consolidated income statements. | ||||
The Company recognizes compensation cost for an award with only service conditions that has a graded vesting schedule using the straight-line method over the requisite service period for the entire award, net of estimated forfeitures. | ||||
p. | Earnings (loss) per share ("EPS"): | |||
Basic EPS is computed by dividing net income by the weighted average number of shares outstanding during the year, net of treasury shares. | ||||
Diluted EPS reflects the increase in the weighted average number of shares outstanding that would result from the assumed exercise of employee stock options, calculated using the treasury-stock-method. | ||||
q. | Treasury shares: | |||
Treasury shares are presented as a reduction in shareholders' equity, at their cost to the Company, under "Treasury shares". | ||||
r. | Concentration of credit risks: | |||
Most of the Company’s and its subsidiaries' cash and cash equivalents as of December 31, 2014 and 2013 were deposited with Israeli, European and U.S. banks. The Company is not aware of any specific credit risks in respect of these banks. | ||||
The Company's revenues have been generated from a large number of customers. Consequently, the exposure to credit risks relating to trade receivables is limited. The Company performs ongoing credit evaluations of its customers for the purpose of determining the appropriate allowance for doubtful accounts. | ||||
s. | Recently issued accounting pronouncements: | |||
On May 28, 2014, the FASB and IASB issued their final standard on revenue from contracts with customers. The standard, issued as ASU 2014-09 by the FASB and as IFRS 15 by the IASB, 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, including industry-specific guidance. | ||||
The core principle of the revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” In applying the revenue model to contracts within its scope, an entity will: | ||||
• Identify the contract(s) with a customer (step 1). | ||||
• Identify the performance obligations in the contract (step 2). | ||||
• Determine the transaction price (step 3). | ||||
• Allocate the transaction price to the performance obligations in the contract (step 4). | ||||
• Recognize revenue when (or as) the entity satisfies a performance obligation (step 5). | ||||
The ASU applies to all contracts with customers except those that are within the scope of other topics in the FASB Accounting Standards Codification. Certain of the ASU’s provisions also apply to transfers of nonfinancial assets, including in-substance nonfinancial assets that are not an output of an entity’s ordinary activities (e.g., sales of (1) property, plant, and equipment; (2) real estate; or (3) intangible assets). Existing accounting guidance applicable to these transfers (e.g., ASC 360-20) has been amended or superseded. | ||||
Compared with current U.S. GAAP, the ASU also requires significantly expanded disclosures about revenue recognition. | ||||
On June 19, 2014, the FASB issued ASU 2014-12 in response to the EITF consensus on Issue 13-D. The ASU clarifies that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. Therefore, an entity would not record compensation expense (measured as of the grant date without taking into account the effect of the performance target) related to an award for which transfer to the employee is contingent on the entity’s satisfaction of a performance target until it becomes probable that the performance target will be met. The ASU does not contain any new disclosure requirements. | ||||
MARKETABLE_SECURITIES
MARKETABLE SECURITIES | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Available-For-Sale Securities [Abstract] | ||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE 2 - | MARKETABLE SECURITIES | ||||||||
December 31 | ||||||||||
Maturity year | 2014 | 2013 | ||||||||
U.S. dollars in thousands | ||||||||||
Short-term: (a) | ||||||||||
Municipal bond | $ | 4,408 | $ | 2,757 | ||||||
Corporate bond | 630 | 79 | ||||||||
$ | 5,038 | $ | 2,836 | |||||||
Long-term - security bond (b) | Perpetual | $ | 1,574 | $ | 517 | |||||
a. | The Company invests in highly-rated marketable securities, and its policy limits the amount of credit exposure to any one issuer. The Company’s investment policy requires investments to be investment grade, rated single-A or better, with the objective of minimizing the potential risk of principal loss. Fair values were determined for each individual security in the investment portfolio based on quoted prices in active markets. | |||||||||
b. | As of December 31, 2014 the Company held a long term security bond which is classified as available for sale security and is presented on its fair value. The fair value of the available for sale securities based on quoted prices in active markets for identical instruments (Level 1 as defined under ASC820). | |||||||||
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | NOTE 3 - | PROPERTY AND EQUIPMENT | ||||||
a. | Composition of assets, grouped by major classification, is as follows: | |||||||
December 31 | ||||||||
2014 | 2013 | |||||||
U.S. dollars in thousands | ||||||||
Computers and electronic equipment | $ | 1,621 | $ | 1,462 | ||||
Land | 263 | 263 | ||||||
Office furniture and equipment | 165 | 162 | ||||||
Vehicles | 191 | 152 | ||||||
Leasehold improvements | 8 | 8 | ||||||
2,248 | 2,047 | |||||||
Less - accumulated depreciation and amortization | 1,630 | 1,397 | ||||||
$ | 618 | $ | 650 | |||||
b. | Depreciation and amortization expenses totaled $233 thousand, $250 thousand and $270 thousand in the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||
GOODWILL
GOODWILL | 12 Months Ended | ||
Dec. 31, 2014 | |||
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill Disclosure [Text Block] | NOTE 4 - | GOODWILL | |
Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination. The carrying value of goodwill was allocated to MIND’s reporting units pursuant to ASC 350 (formerly SFAS No. 142). | |||
ASC 350 requires that companies not amortize goodwill, but instead test for impairment at least annually using a two-step approach. The Company evaluates goodwill, at a minimum, on an annual basis and whenever events and changes in circumstances suggest that the carrying amount may not be recoverable. | |||
Impairment of goodwill is tested at the reporting unit level by comparing the reporting unit's carrying amount, including goodwill, to the fair value of the reporting unit. Under the income approach, the Company determined fair value based on estimated future cash flows of each reporting unit, discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of a reporting unit and the rate of return an outside investor would expect to earn. | |||
Determining the fair value of a reporting unit is judgmental in nature and requires the use of significant estimates and assumptions, including revenue growth rates and operating margins, discount rates and future market conditions, among others. If the carrying amount of the reporting unit exceeds its fair value, goodwill is considered impaired and a second step is performed to measure the amount of impairment. The second step involves determining the implied value of goodwill for the reporting unit. Any excess carrying amount of goodwill over the fair value determined in the second step will be recorded as a goodwill impairment loss. | |||
The Company performed the annual impairment tests during the third quarter of 2014, 2013 and 2012 and did not identify any impairment losses. | |||
EMPLOYEES_RIGHTS_UPON_RETIREME
EMPLOYEES' RIGHTS UPON RETIREMENT | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||
Pension and Other Postretirement Benefits Disclosure [Text Block] | NOTE 5 - | EMPLOYEES' RIGHTS UPON RETIREMENT | ||||||
a. | Israeli law generally requires payment of severance pay upon dismissal of an employee or upon termination of employment in certain other circumstances. The severance pay liability of the Company to its Israeli employees, based upon the number of years of service and the latest monthly salary, is partly covered by regular deposits with severance pay funds and pension funds, and by purchase of insurance policies; under labor agreements, the deposits with recognized pension funds and the insurance policies, as above, are in the employees' names and are, subject to certain limitations, the property of the employees. | |||||||
The amounts accrued and the portions funded, with severance pay funds and by the insurance policies are reflected in the financial statements as follows: | ||||||||
December 31 | ||||||||
2014 | 2013 | |||||||
U.S. dollars in thousands | ||||||||
Accrued severance pay | $ | 1,687 | $ | 1,804 | ||||
Less - amounts funded (presented in “Investment and other non-current assets”) | -1,597 | -1,673 | ||||||
Unfunded balance | $ | 90 | $ | 131 | ||||
The amounts of accrued severance pay as above cover the Company’s severance pay liability in accordance with labor agreements in force and based on salary components which, in management’s opinion, create entitlement to severance pay. The Company records the obligation as if it was payable at each balance sheet date on an undiscounted basis. | ||||||||
Withdrawals from the funds are generally made for the purpose of paying severance pay. | ||||||||
b. | The severance pay expenses were $181 thousand, $139 thousand and $142 thousand in the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||
COMMITMENTS_AND_CONTINGENT_LIA
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies Disclosure [Text Block] | NOTE 6 | - | COMMITMENTS AND CONTINGENT LIABILITIES | ||
a. | Commitments: | ||||
The Company and its subsidiaries entered into premises lease agreements that will expire between 2017 to 2018. | |||||
Future minimum lease commitments of the Company and its subsidiaries under the above leases, at exchange rates in effect on December 31, 2014, are as follows: | |||||
U.S. dollars in | |||||
thousands | |||||
Years ending December 31: | |||||
2015 | $ | 554 | |||
2016 | 593 | ||||
2017 | 584 | ||||
2018 | 275 | ||||
$ | 2,006 | ||||
Rental expense totaled $603 thousand, $581 thousand and $571 thousand in the years ended December 31, 2014, 2013 and 2012, respectively. | |||||
b. | Contingent liabilities: | ||||
The Company has provided bank guarantees relating to future performance on certain contracts. As of December 31, 2014, contingent liabilities on outstanding bank guarantees aggregated to an amount of approximately $65 thousand. These amounts are secured by bank deposits. | |||||
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Equity [Abstract] | |||||||||||||||||
Shareholders' Equity and Share-based Payments [Text Block] | NOTE 7 - | SHAREHOLDERS’ EQUITY | |||||||||||||||
a. | Share capital: | ||||||||||||||||
The Company’s ordinary shares are traded in the United States on the NASDAQ National Market, under the symbol MNDO. | |||||||||||||||||
b. | Treasury shares: | ||||||||||||||||
During the period between September 2008 and December 2009, the Company has purchased an aggregate amount of 3,165,092 ordinary shares for a total consideration of approximately $2.8 million. There is no active buyback plan. As of December 31, 2014 the remaining treasury shares are 2,549,692 which amounted to $1.86 million after exercise of options from treasury stock issued to employees in the amount of $424 thousand, $73 thousand and $41 thousand in 2014, 2013 and 2012 respectively. | |||||||||||||||||
c. | Dividend: | ||||||||||||||||
Dividends paid per share in the years ended December 31, 2014, 2013 and 2012 were $0.24, $0.24 and $0.24, respectively. | |||||||||||||||||
The Company paid dividends to its shareholders in the amounts of $4.5 million, $4.5 million and $4.5 million during 2014, 2013 and 2012, respectively. Since at the time of 2014 distribution the Company had insufficient statutory retained earnings, the distribution was done by way of reduction of additional paid-in capital, after due approval by an Israeli court order, in accordance with the Israeli Companies Law. | |||||||||||||||||
d. | Stock option plans: | ||||||||||||||||
In December 1998, the Board of Directors approved an employee stock option plan, which was amended in 2000 and in 2003 (the “1998 Plan”). During 2004, the Board of Directors approved an employee stock option plan (the “2000 Plan”). Under the 1998 Plan (as amended in 2000 and in 2003) and the 2000 plan, options for up to 4,306,000 ordinary shares of NIS 0.01 par value are to be granted to employees of the Company and its subsidiaries. The 1998 Plan and 2000 Plan expired in December 2010. | |||||||||||||||||
In 2011, the Board of Directors and the 2011 Annual General Meeting of the Company’s shareholders approved a share incentive plan (the “2011 Share Incentive Plan”). Under the 2011 Share Incentive Plan, options for up to 1,800,000 ordinary shares of NIS 0.01 par value are to be granted to employees of the Company and its subsidiaries, directors, consultants or contractors of the Company. | |||||||||||||||||
Each option can be exercised to purchase one Ordinary Share. Immediately upon issuance, the Ordinary Shares issuable upon the exercise of the options will confer on holders the same rights as the other ordinary shares. | |||||||||||||||||
The Board of Directors determines the exercise price and the vesting period of the options granted. The outstanding options granted under the above mentioned plans vest over 3-5 years. Options not exercised will expire approximately 5-7 years after they are granted. | |||||||||||||||||
The compensation costs charged against income for all of the Company's equity remuneration plans during 2014, 2013 and 2012 were approximately $72 thousand, $58 thousand and $80 thousand, respectively without any reduction in income taxes. | |||||||||||||||||
As a result of a change made to Section 102 of the Israeli Income Tax Ordinance as part of the Israeli tax reform of 2003, and pursuant to an election made by the Company thereunder, Israeli employees (except for employees who are deemed “Controlling Members” under the Israeli Income Tax Ordinance) will be subject to a lower tax rate on capital gains accruing to them in respect of Section 102 awards made after December 31, 2002. However, the Company will not be allowed to claim as an expense for tax purposes the amounts credited to such employees as a benefit when the related capital gains tax is payable by them, as it had previously been entitled to do under Section 102. | |||||||||||||||||
The following is a summary of the status of the 1998 Plan, 2000 plan and 2011 Share Incentive Plan as of December 31, 2014, 2013 and 2012, and changes during the years ended on those dates: | |||||||||||||||||
1) | |||||||||||||||||
Years ended December 31 | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Number | Weighted | Number | Weighted | Number | Weighted | ||||||||||||
average | average | average | |||||||||||||||
exercise | exercise | exercise | |||||||||||||||
price | price | price | |||||||||||||||
Options outstanding at beginning of year | 460,000 | $ | 1.93 | 588,700 | $ | 1.87 | 817,200 | $ | 2.06 | ||||||||
Changes during year: | |||||||||||||||||
Granted (a) | 666,000 | $ | 2.81 | 96,000 | $ | 2.16 | 18,000 | $ | 2.41 | ||||||||
Exercised | -225,400 | $ | 1.88 | -103,500 | $ | 0.7 | -51,500 | $ | 0.78 | ||||||||
Forfeited | -49,000 | $ | 2.03 | -36,000 | $ | 1.94 | -2,000 | $ | 1.04 | ||||||||
Expired | - | - | -85,200 | $ | 3.24 | -193,000 | $ | 3.33 | |||||||||
Options outstanding at end of year | 851,600 | $ | 2.63 | 460,000 | $ | 1.93 | 588,700 | $ | 1.87 | ||||||||
Options exercisable at end of year | 43,600 | $ | 2 | 193,000 | $ | 1.95 | 228,700 | $ | 2.03 | ||||||||
Weighted average grant date fair value of options granted during the year (b) | $ | 0.51 | $ | 0.41 | $ | 0.52 | |||||||||||
(a) | In 2014 the options were granted with an exercise price equal to the average closing price per share of the Company ordinary’s shares on the stock market during the 30 trading day period immediately preceding the date of grant of such option or with an exercise price equal to Par value of NIS 0.01. | ||||||||||||||||
In 2013 and 2012 the options were granted with an exercise price equal to the average closing price per share of the Company ordinary’s shares on the stock market during the 30 trading day period immediately preceding the date of grant of such option. | |||||||||||||||||
(b) | The fair value of each stock option granted is computed on the date of grant according to the Black-Scholes option-pricing model with the following assumptions: | ||||||||||||||||
Years ended December 31 | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Dividend yield | 11 | % | 11 | % | 10 | % | |||||||||||
Expected volatility* | 44 | % | 49 | % | 58 | % | |||||||||||
Average risk-free interest rate | 1.5 | % | 0.8 | % | 0.9 | % | |||||||||||
Expected average term - in years | 3.88 | 3.88 | 3.88 | ||||||||||||||
* | Volatility is based on historical volatility of the Company's share price for periods matching the expected term of the option until exercise. | ||||||||||||||||
As of December 31, 2014 there were approximately $240 thousand of total unrecognized compensation costs, net of expected forfeitures, related to nonvested share-based compensation awards granted under the stock option plan. The costs are expected to be recognized over a weighted average period of 1.45 years. | |||||||||||||||||
2) | The following table summarizes information about options outstanding and exercisable as of December 31, 2014: | ||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||
Number | Weighted | Number | Weighted | ||||||||||||||
outstanding | average | Weighted | exercisable | average | Weighted | ||||||||||||
Range of | At | remaining | average | At | remaining | average | |||||||||||
exercise | December 31, | contractual | exercise | December 31, | contractual | exercise | |||||||||||
prices | 2014 | life | price | 2014 | life | Price | |||||||||||
Years | Years | ||||||||||||||||
$0.003 – 1.939 | 125,000 | 2.4 | $ | 1.32 | 38,000 | 1.85 | $ | 1.94 | |||||||||
$2.410 – 2.947 | 726,600 | 4.61 | $ | 2.85 | 5,600 | 2.16 | $ | 2.41 | |||||||||
851,600 | 4.29 | $ | 2.63 | 43,600 | 1.89 | $ | 2 | ||||||||||
The total intrinsic value of options exercised during the years ended December 31, 2014, 2013 and 2012 were approximately $322 thousand, $165 thousand and $73 thousand, respectively. As of December 31, 2014, the aggregate intrinsic value of the outstanding options is $1,108 thousand, and the aggregate intrinsic value of the exercisable options is $84 thousand. | |||||||||||||||||
TAXES_ON_INCOME
TAXES ON INCOME | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Tax Disclosure [Abstract] | |||||||||||
Income Tax Disclosure [Text Block] | NOTE 8 - | TAXES ON INCOME | |||||||||
a. | Tax benefits under the Law for the Encouragement of Industry (Taxes), 1969: | ||||||||||
The Company is an “industrial company”, as defined by this law. As such, the Company is entitled to claim depreciation at increased rates for equipment used in industrial activity, as stipulated by regulations published under the inflationary adjustments law. | |||||||||||
b. | Tax benefits under the Law for the Encouragement of Capital Investments, 1959: | ||||||||||
1) | Tax benefits prior to the 2011 Amendment | ||||||||||
Substantially all of the Company’s production facilities have been granted “approved enterprise” status under the above law (including Amendment No. 60 to the law that was published in April 2005). Income derived from the approved enterprise was tax exempt for a period of ten years commencing in the first year in which the Company earned taxable income from the approved enterprise (provided the maximum period to which it is restricted by law has not elapsed). | |||||||||||
According to the above law, in the event of distribution of cash dividends from income that was tax exempt as above, the Company would have to pay the 25% tax in respect of the amount distributed. | |||||||||||
The entitlement to the above benefits was conditional upon the Company’s fulfilling the conditions stipulated by the above law, regulations published thereunder and the certificate of approval for the specific investments in approved enterprises. In the event of failure to comply with these conditions, the benefits may be cancelled and the Company may be required to refund the amount of the benefits, in whole or in part, with the addition of linkage differences to the Israeli CPI and interest. | |||||||||||
2) | Tax benefits under the 2011 Amendment | ||||||||||
On January 6, 2011 an amendment (Amendment No. 68) to the Law for the Encouragement of Capital Investment-1959 ("2011 Amendment") was published. The new Amendment significantly revising the tax incentive regime in Israel, commencing on January, 1 2011. | |||||||||||
2011 Amendment introduced a new status of “Preferred Enterprise”. Similarly to the “approved enterprise” status, a Preferred Company is an industrial company meeting certain conditions (including a minimum threshold of 25% export). However, under the New Amendment the requirement for a minimum investment in productive assets in order to be eligible for the benefits granted under the Investments Law as with respect to “approved enerprise”status was cancelled. Dividends distributed from income which is attributed to a “Preferred Enterprise” will be subject to withholding tax at source at the following rates: (i) Israeli resident corporations - 0%, (ii) Israeli resident individuals – 15% (iii) non-Israeli residents - 15%, subject to a reduced tax rate under the provisions of an applicable double tax treaty. | |||||||||||
On July 30, 2013 the Knesset passed a Law for the change in the order of National Priorities (Legislative amendments to achieve budget objectives for 2013 and 2014) — 2013. As part of the legislation, the Law for the Encouragement of Capital Investments was amended so that the tax rate applicable to a preferred enterprise in this period in Development Area A will be 9% and the tax rate in other parts of the country will be 16%. Similarly, it was determined that the tax rate on dividends distributed to individuals and foreign residents out of preferred income will be increased to 20% as from January 1, 2014 as opposed to the current rate of 15%. | |||||||||||
The following table summarise the reduced flat tax rate with respect to the income attributed to the Preferred Enterprise: | |||||||||||
Tax Year | Development | Other Areas | |||||||||
Region “A” | within Israel | ||||||||||
2011-2012 | 10 | % | 15 | % | |||||||
2013 | 7 | % | 12.5 | % | |||||||
2014 onwards | 9 | % | 16 | % | |||||||
The Company is located in Development Region "A" and during 2011 had chosen the status of the 2011 Amendment. | |||||||||||
If only a portion of the company's capital investments is approved, its effective tax rate will be the result of a weighted combination of the applicable rates. The tax benefits from any certificate of approval relate only to taxable income attributable to the specific Preferred Enterprise. Income derived from activity that is not integral to the activity of the Preferred Enterprise will not enjoy tax benefits. Our entitlement to the above benefits is subject to fulfillment of certain conditions under the Investment Law and related regulations. | |||||||||||
During 2013, the Company applied for a tax ruling with respect to 2012 and future years. During 2014, the Company obtained the ruling, which provides that the portion of the income attributed to the Preferred Enterprise (and thereby subject to lower tax rates) will be calculated each year based on, among other things, the ratio between the number of the employees in Israel and abroad. According to the ruling, the tax rate on income in Israel in 2014 was approximately 22%. | |||||||||||
c. | Other applicable tax rates: | ||||||||||
1) | Income from other sources in Israel | ||||||||||
On December 6, 2011, the “Tax Burden Distribution Law” Legislation Amendments (2011) was published in the official gazette, under which the previously approved gradual decrease in corporate tax was cancelled. The corporate tax rate increased to 25% as from 2012. | |||||||||||
As part of the mentioned above law for the change in the order of National Priorities (Legislative amendments to achieve budget objectives for 2013 and 2014) — 2013 the corporate tax rate has increased to 26.5% as from January 1, 2014 and thereafter. | |||||||||||
2) | Income of non-Israeli subsidiaries | ||||||||||
Non-Israeli subsidiaries are taxed according to tax laws in their countries of residence. | |||||||||||
d. | Deferred income taxes: | ||||||||||
1) | Provided in respect of the following: | ||||||||||
December 31 | |||||||||||
2014 | 2013 | ||||||||||
U.S. dollars in thousands | |||||||||||
Research and development expenses | $ | 13 | $ | 61 | |||||||
Carryforward tax losses | 2,284 | 2,450 | |||||||||
Other | 182 | 102 | |||||||||
Less- valuation allowance | -2,284 | -2,317 | |||||||||
$ | 195 | $ | 296 | ||||||||
2) | As of December 31, 2014, the carryforward tax losses are related mainly to the Company’s subsidiaries (in the U.S. and U.K.) and amounted to approximately $6.9 million. The Company has provided valuation allowance in respect of deferred tax assets resulting from carryforward tax losses of the company subsidiaries. Management currently believes that it is more likely than not that those deferred tax losses will not be realized in the foreseeable future. | ||||||||||
e. | Taxes on income included in the statements of operations: | ||||||||||
1) | As follows: | ||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. dollars in thousands | |||||||||||
Current: | |||||||||||
In Israel | $ | 1,473 | $ | 116 | $ | 88 | |||||
Outside Israel | 94 | 71 | 96 | ||||||||
1,567 | 187 | 184 | |||||||||
Taxes in respect of previous years | - | 107 | 70 | ||||||||
Deferred taxes in Israel | 101 | -157 | 138 | ||||||||
$ | 1,668 | $ | 137 | $ | 392 | ||||||
2) | Following is a reconciliation of the theoretical tax expense, assuming all income is taxed at the regular tax rates applicable to companies in Israel (see c. above), and the actual tax expense: | ||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. dollars in thousands | |||||||||||
Income before taxes on income, as reported in the statements of operations* | $ | 7,151 | $ | 2,322 | $ | 4,670 | |||||
Theoretical tax expense | 1,895 | 581 | 1,168 | ||||||||
Less - tax benefits arising from approved | |||||||||||
enterprise status, see a. above | -401 | -60 | -410 | ||||||||
1,494 | 521 | 758 | |||||||||
Increase (decrease) in taxes resulting from permanent differences: | |||||||||||
Disallowable deductions | 22 | 60 | 11 | ||||||||
Taxes in respect of previous years | - | 107 | 70 | ||||||||
Changes in valuation allowance | 62 | 243 | 351 | ||||||||
Changes in taxes resulting from computation of deferred taxes at a rate which is different from the theoretical rate and other | 90 | -794 | -798 | ||||||||
Taxes on income for the reported year | $ | 1,668 | $ | 137 | $ | 392 | |||||
* As follows: | |||||||||||
Taxable in Israel | $ | 6,145 | $ | 1,325 | $ | 2,734 | |||||
Taxable outside Israel | 1,006 | 997 | 1,936 | ||||||||
$ | 7,151 | $ | 2,322 | $ | 4,670 | ||||||
f. | Tax assessments: | ||||||||||
The Company has received final assessments from the tax authorities, through the year ended December 31, 2011. The subsidiaries, except Omni, have not been assessed since incorporation. Omni has received final tax assessments through tax year 2006. | |||||||||||
g. | Sale of MIND Software SRL: | ||||||||||
On July 2014, the Company sold its holdings in “MIND Software SRL” to “MIND Software Limited” in the amount of $3,880 thousand. | |||||||||||
Following the sale, a capital gain was created, which was offset against capital losses transferred from previous years. | |||||||||||
SUPPLEMENTARY_BALANCE_SHEET_IN
SUPPLEMENTARY BALANCE SHEET INFORMATION | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |||||||||||
Supplemental Balance Sheet Disclosures [Text Block] | NOTE 9 - | SUPPLEMENTARY BALANCE SHEET INFORMATION | |||||||||
a. | Cash and cash equivalents: | ||||||||||
The balance as of December 31, 2014 and 2013 includes $3.7 million and $3.8 million, respectively, of highly liquid bank deposits. The deposits are mainly denominated in dollars and, as of December 31, 2014, bear weighted average annual interest of 0.09%. | |||||||||||
b. | Accounts receivable: | ||||||||||
1) | Trade: | ||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
U.S. dollars in | |||||||||||
thousands | |||||||||||
Open accounts | $ | 2,595 | $ | 1,241 | |||||||
Less - allowance for doubtful accounts * | - | - | |||||||||
$ | 2,595 | $ | 1,241 | ||||||||
* The changes in allowance for doubtful accounts are composed as follows: | |||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. dollars in thousands | |||||||||||
Balance at beginning of year | $ | - | $ | 327 | $ | 308 | |||||
Increase (decrease) during the year | - | 66 | |||||||||
Bad debt written off | - | -327 | -47 | ||||||||
Balance at end of year | $ | - | $ | - | $ | 327 | |||||
2) | Other: | ||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
U.S. dollars in | |||||||||||
thousands | |||||||||||
Government of Israel | $ | - | $ | 19 | |||||||
Employees | 11 | 28 | |||||||||
Sundry | 223 | 118 | |||||||||
$ | 234 | $ | 165 | ||||||||
c. | Accounts payable and accruals - other: | ||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
U.S. dollars in | |||||||||||
thousands | |||||||||||
Payroll and related expenses | $ | 1,268 | $ | 515 | |||||||
Government institutions | 659 | 377 | |||||||||
Accrued vacation pay | 92 | 104 | |||||||||
Accrued expenses and sundry | 287 | 157 | |||||||||
$ | 2,306 | $ | 1,153 | ||||||||
SELECTED_STATEMENT_OF_OPERATIO
SELECTED STATEMENT OF OPERATIONS DATA | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |||||||||||
Additional Financial Information Disclosure [Text Block] | NOTE 10 - | SELECTED STATEMENT OF OPERATIONS DATA | |||||||||
a. | Revenues: | ||||||||||
1) | The Company's revenues derive from sale of software products in one operating segment. The Company has two product lines: (i) product line “A” - billing and customer care solutions for service providers; and (ii) product line “B” - call accounting and call management solutions for enterprises. Revenues from Sentori and Omni product lines are included in product line “A”. | ||||||||||
Following are data regarding revenues classified by product lines: | |||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. dollars in thousands | |||||||||||
Product line “A” | $ | 20,990 | $ | 14,210 | $ | 15,707 | |||||
Product line “B” | 4,030 | 4,270 | 4,502 | ||||||||
$ | 25,020 | $ | 18,480 | $ | 20,209 | ||||||
2) | Following are data regarding geographical revenues classified by geographical location of the customers: | ||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. dollars in thousands | |||||||||||
United States | $ | 14,411 | $ | 11,809 | $ | 10,882 | |||||
United Kingdom | 763 | 1,221 | 668 | ||||||||
Rest of Europe | 6,402 | 2,537 | 4,577 | ||||||||
Israel | 2,256 | 1,768 | 3,045 | ||||||||
Other | 1,188 | 1,145 | 1,037 | ||||||||
$ | 25,020 | $ | 18,480 | $ | 20,209 | ||||||
Property and equipment - by geographical location: | |||||||||||
December 31 | |||||||||||
2014 | 2013 | ||||||||||
U.S. dollars in | |||||||||||
thousands | |||||||||||
Israel | $ | 193 | $ | 250 | |||||||
Romania | 421 | 395 | |||||||||
United Kingdom | - | - | |||||||||
United States | 4 | 5 | |||||||||
$ | 618 | $ | 650 | ||||||||
b. | Research and development expenses: | ||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. dollars in thousands | |||||||||||
Payroll and related expenses | $ | 3,614 | $ | 3,972 | $ | 3,574 | |||||
Rent and related expenses | 367 | 378 | 286 | ||||||||
Depreciation and amortization | 114 | 133 | 163 | ||||||||
Subcontracting | 189 | 188 | 224 | ||||||||
Other | 255 | 359 | 396 | ||||||||
$ | 4,539 | $ | 5,030 | $ | 4,643 | ||||||
c. | Selling and marketing expenses: | ||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. dollars in thousands | |||||||||||
Payroll and related expenses | $ | 963 | $ | 1,459 | $ | 1,180 | |||||
Depreciation and amortization | 3 | 8 | 12 | ||||||||
Travel and conventions | 79 | 108 | 155 | ||||||||
Other | 95 | 119 | 177 | ||||||||
$ | 1,140 | $ | 1,694 | $ | 1,524 | ||||||
d. | General and administrative expenses: | ||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. dollars in thousands | |||||||||||
Payroll and related expenses | $ | 1,298 | $ | 1,105 | $ | 980 | |||||
Depreciation and amortization | 17 | 21 | 24 | ||||||||
Insurances | 65 | 60 | 67 | ||||||||
Office expenses | 99 | 102 | 117 | ||||||||
Professional services | 269 | 302 | 368 | ||||||||
Allowance for doubtful accounts and bad debts | - | - | 33 | ||||||||
Other | 186 | 136 | 229 | ||||||||
$ | 1,934 | $ | 1,726 | $ | 1,818 | ||||||
e. | Financial income (expense) - net: | ||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. dollars in thousands | |||||||||||
Income: | |||||||||||
Interest on bank deposits and short-term investments | $ | 151 | $ | 97 | $ | 260 | |||||
Non-dollar currency gains - net | - | 17 | 23 | ||||||||
Income from Marketable securities | 148 | 33 | - | ||||||||
Realized gain from sale of available for sale securities | 38 | - | - | ||||||||
Interest on available for sale securities | 33 | 35 | 47 | ||||||||
370 | 182 | 330 | |||||||||
Expenses: | |||||||||||
Non-dollar currency losses - net | -663 | - | - | ||||||||
Bank commissions and charges | -13 | -19 | -8 | ||||||||
Realized loss on sale of available for sale securities | - | - | -24 | ||||||||
-676 | -19 | -32 | |||||||||
$ | -306 | $ | 163 | $ | 298 | ||||||
f. | Earnings per ordinary share (“EPS”): | ||||||||||
Following are data relating to the weighted average number of shares for the purpose of computing EPS: | |||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. dollars in thousands | |||||||||||
Weighted average number of shares issued and | 18,949 | 18,869 | 18,767 | ||||||||
outstanding - used in computation of basic EPS | |||||||||||
A d d - incremental shares from assumed exercise of | 83 | 21 | 79 | ||||||||
options | |||||||||||
Weighted average number of shares used in computation of diluted EPS | 19,032 | 18,890 | 18,846 | ||||||||
In the years ended December 31, 2014, 2013 and 2012, options that their effect was anti-dilutive, were not taken into account in computing the diluted earnings per share. | |||||||||||
The number of options that could potentially dilute EPS in the future and were not included in the computing of diluted EPS is 636,000 options for 2014, 400,000 options for 2013 and 425,200 options for 2012. | |||||||||||
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Accounting Policies [Abstract] | ||||
Nature of Operations [Policy Text Block] | 1) | Nature of operations | ||
MIND C.T.I. Ltd. (the “Company”) is an Israeli company, which together with its subsidiaries operate in one segment, providing integrated products and services. The Company designs, develops, markets, supports, implements and operates billing and customer care systems, including consulting and managed services, primarily to wireless, wireline, next-generation service providers throughout the world. The Company also provides a call management system used by enterprises for call accounting, traffic analysis, and fraud detection. | ||||
The Company has wholly-owned subsidiaries in the United States ("Mind Software Inc." or "Sentori"), Romania ("Mind Software SRL"), and U.K ("Mind Software Limited" or "Omni"). | ||||
Accounting Principles, Policy [Policy Text Block] | 2) | Accounting principles | ||
The consolidated financial statements were prepared in accordance with United States Generally Accepted Accounting Principles ("U.S. GAAP"). | ||||
Use of Estimates, Policy [Policy Text Block] | 3) | Use of estimates in preparation of financial statements | ||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting years. Actual results could differ from those estimates. The most significant estimates with regard to the Company's consolidated financial statements relate to revenue recognition of products and service sales using the percentage of completion method, the valuation of auction rate securities, and the impairment of goodwill and other intangible asset. | ||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | 4) | Functional currency | ||
The currency of the primary economic environment in which the operations of the Company and its subsidiaries are conducted is the U.S. dollar (“dollar” or “$”). Most of the Company’s revenues are derived from sales outside of Israel, which are denominated primarily in dollars. In addition, the majority of the Company’s cash reserves and financing activities are denominated in dollars. Thus, the functional currency of the Company and its subsidiaries is the dollar. | ||||
Transactions and balances originally denominated in dollars are presented at their original amounts. Balances in non-dollar currencies are re-measured into dollars using historical and current exchange rates for non-monetary and monetary balances, respectively. For non-dollar transactions and other items (detailed below) reflected in the statements of operations, the following exchange rates are used: (i) for transactions: exchange rates at transaction dates or average rates; and (ii) for other items (derived from non-monetary balance sheet items, such as depreciation and amortization, etc.) - historical exchange rates. The resulting currency translation gains or losses are carried to financial income or expenses, as appropriate. | ||||
Consolidation, Policy [Policy Text Block] | b. | Principles of consolidation: | ||
1) | The consolidated financial statements include the accounts of the Company and all of its subsidiaries. | |||
2) | Inter-company balances and transactions have been eliminated in consolidation. Profits from inter-company sales, not yet realized outside the Company and its subsidiaries, have also been eliminated. | |||
Reclassifications, Policy [Policy Text Block] | c. | Reclassifications: | ||
Certain amounts in prior years’ financial statements have been reclassified to conform to the current year’s presentation. | ||||
Cash and Cash Equivalents, Unrestricted Cash and Cash Equivalents, Policy [Policy Text Block] | d. | Cash equivalents: | ||
The Company and its subsidiaries consider all highly liquid investments, which include short-term bank deposits (up to three months from original date of deposit) that are not restricted as to withdrawal or use, to be cash equivalents. | ||||
Short Term Bank Deposits [Policy Text Block] | e. | Short-term bank deposits: | ||
Bank deposits with maturities of more than three months but less than one year are included in short-term bank deposits. Such short-term bank deposits are stated at cost. | ||||
Marketable Securities, Policy [Policy Text Block] | f. | Marketable securities: | ||
Marketable securities are classified as "financial assets held at fair value through profit or loss" when held for trading or are designated upon initial recognition as financial assets at fair value through profit or loss. | ||||
Financial asset at fair value through profit or loss is shown at fair value. Any gain or loss arising from changes in fair value, including those originating from changes in exchange rates is recognized in profit or loss in the period in which the change occurred. Net gain or loss recognized in profit or loss incorporates any dividend or interest earned on the financial asset. | ||||
Marketable Securities, Available-for-sale Securities, Policy [Policy Text Block] | g. | Available-for-sale financial assets (AFS financial assets): | ||
AFS financial assets are non-derivatives that are either designated as AFS or are not classified as (a) loans and receivables, (b) held-to-maturity investments or (c) financial assets at fair value through profit or loss. | ||||
The AFS held by the Company are traded in an active market and are stated at fair value at the end of each reporting period. Interest income calculated using the effective interest method. Changes in the fair value of available-for-sale financial assets are recognized in other comprehensive income (loss). Unrealized losses considered to be temporary are reflected in other comprehensive income (loss). Unrealized losses that are considered to be other-than-temporary are charged to income as an impairment charge. See also Note 2. | ||||
Inventory, Policy [Policy Text Block] | h. | Inventories: | ||
Inventories are valued at the lower of cost or market value. Cost is determined by the “first-in, first-out” method. Most of the inventories consist of acquired hardware. | ||||
Property, Plant and Equipment, Policy [Policy Text Block] | i. | Property and equipment: | ||
1) | These assets are stated at cost less accumulated depreciation. | |||
2) | The assets are depreciated by the straight-line method, on basis of their estimated useful life. | |||
Annual rates of depreciation are as follows: | ||||
% | ||||
Computers and electronic equipment | 15-33 | |||
(mainly 33) | ||||
Office furniture and equipment | 7-Jun | |||
Vehicles | 15 | |||
Leasehold improvements are amortized by the straight-line method over the term of the lease, which is shorter than the estimated useful life of the improvements. | ||||
Goodwill and Intangible Assets, Policy [Policy Text Block] | j. | Goodwill: | ||
Goodwill reflects the excess of the purchase price of subsidiaries acquired over the fair value of net assets acquired. Under ASC 350 (formerly SFAS No. 142), goodwill is not amortized but rather tested for impairment at least annually. The Company performs annual testing for impairment of the goodwill during the third quarter of each year, see also Note 4. | ||||
Income Tax, Policy [Policy Text Block] | k. | Income taxes: | ||
1) | Deferred taxes are determined utilizing the asset and liability method based on the estimated future tax effects of differences between the financial accounting and tax bases of assets and liabilities under the applicable tax laws. Deferred income tax provisions and benefits are based on the changes in the deferred tax asset or tax liability from period to period. Valuation allowance is included in respect of deferred tax assets when it is more likely than not, that such asset will not be realized. | |||
2) | The Company adopted the provisions of Financial Accounting Standards Board (FASB) interpretation No. 48 (“FIN 48”), Accounting for Uncertainty in Income Taxes, an Interpretation of ASC 740-10 on January 1, 2007. | |||
Revenue Recognition, Policy [Policy Text Block] | l. | Revenue recognition: | ||
The Company’s revenues consist of revenues generated from software licensing, sales of professional services, including integration and implementation, sales of third-party hardware and software, maintenance services, managed services and training. | ||||
The Company applies the provisions of Statement of ASC 985-605, "Revenue Recognition" (formerly SOP No. 97-2) and ASC 605-35, "Construction-Type and Production-Type Contracts" (formerly SOP No. 81-1), as follows: | ||||
i) | Licenses | |||
Revenue from sale of products is recognized when delivery has occurred, persuasive evidence of an arrangement exists, the sales price is fixed or determinable and collection is probable. If collection is not considered probable, revenue is recognized when the fee is collected. The Company generally does not grant a right of return on products sold to customers. | ||||
ii) | Services | |||
The services the Company provides consist of implementation, training, hardware installation, maintenance, support and project management. All services are priced on a fixed price basis and are recognized ratably over the period in which the services are provided except services which are recognized under the percentage-of-completion method as described below. | ||||
Products are mainly supplied with maintenance for a period of one year from delivery. When revenue on sale of the products is recognized, the Company defers a portion of the sales price and recognizes it as maintenance revenue ratably over the above period. The portion of the sales price that is deferred is determined based on the fair value of the service as priced in transactions in which the Company renders maintenance solely. Where vendor specific objective evidence for fair value cannot be determined, the entire sale is being recognized over the maintenance period. Where the services are considered essential to the functionality of the software products, both the software product revenue and the revenue related to the integration and implementation services are recognized under the percentage-of-completion method in accordance with ASC 605-35. The Company generally determines the percentage-of-completion by comparing the labor performed to date to the estimated total labor required to complete the project. When the estimate indicates that a loss will be incurred, such loss is recorded in the period identified. Significant judgments and estimates are involved in determining the percent complete of each contract. Different assumptions could yield materially different results. | ||||
(iii) | Managed Services | |||
Revenues from managed services include a monthly fee for services and for right of use and are recorded as service revenues and license revenues, respectively. The monthly fee is based mainly on number of subscribers or customer’s business volume and the agreements include a minimum monthly charge. These revenues are recognized on a monthly basis. Where installation services are sold together with a managed services contract, the installation services are being recognized over the entire contract term, commencing the deployment finalization. | ||||
Deferred costs of revenues are presented net of related advances from customers. | ||||
Research and Development Expense, Policy [Policy Text Block] | m. | Research and development expenses: | ||
Pursuant to ASC 985-20, "Software - Costs of Software to be Sold, Leased, or Marketed" (formerly SFAS No. 86), development costs related to software products are expensed as incurred until the “technological feasibility” of the product has been established. Because of the relatively short time period between "technological feasibility" and product release, and the insignificant amount of costs incurred during such period, no software development costs have been capitalized. | ||||
Allowance For Doubtful Accounts, Policy [Policy Text Block] | n. | Allowance for doubtful accounts: | ||
The allowance is determined for specific debts doubtful of collection. | ||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | o. | Stock based compensation: | ||
The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation - Stock Compensation" (formerly SFAS No. 123 (R)), which requires the measurement and recognition of compensation expense based on estimated fair values for all share-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 consolidated income statements. | ||||
The Company recognizes compensation cost for an award with only service conditions that has a graded vesting schedule using the straight-line method over the requisite service period for the entire award, net of estimated forfeitures. | ||||
Earnings Per Share, Policy [Policy Text Block] | p. | Earnings (loss) per share ("EPS"): | ||
Basic EPS is computed by dividing net income by the weighted average number of shares outstanding during the year, net of treasury shares. | ||||
Diluted EPS reflects the increase in the weighted average number of shares outstanding that would result from the assumed exercise of employee stock options, calculated using the treasury-stock-method. | ||||
Treasury Shares, Policy [Policy Text Block] | q. | Treasury shares: | ||
Treasury shares are presented as a reduction in shareholders' equity, at their cost to the Company, under "Treasury shares". | ||||
Concentration Of Credit Risk. [Policy Text Block] | r. | Concentration of credit risks: | ||
Most of the Company’s and its subsidiaries' cash and cash equivalents as of December 31, 2014 and 2013 were deposited with Israeli, European and U.S. banks. The Company is not aware of any specific credit risks in respect of these banks. | ||||
The Company's revenues have been generated from a large number of customers. Consequently, the exposure to credit risks relating to trade receivables is limited. The Company performs ongoing credit evaluations of its customers for the purpose of determining the appropriate allowance for doubtful accounts. | ||||
New Accounting Pronouncements, Policy [Policy Text Block] | s. | Recently issued accounting pronouncements: | ||
On May 28, 2014, the FASB and IASB issued their final standard on revenue from contracts with customers. The standard, issued as ASU 2014-09 by the FASB and as IFRS 15 by the IASB, 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, including industry-specific guidance. | ||||
The core principle of the revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” In applying the revenue model to contracts within its scope, an entity will: | ||||
• Identify the contract(s) with a customer (step 1). | ||||
• Identify the performance obligations in the contract (step 2). | ||||
• Determine the transaction price (step 3). | ||||
• Allocate the transaction price to the performance obligations in the contract (step 4). | ||||
• Recognize revenue when (or as) the entity satisfies a performance obligation (step 5). | ||||
The ASU applies to all contracts with customers except those that are within the scope of other topics in the FASB Accounting Standards Codification. Certain of the ASU’s provisions also apply to transfers of nonfinancial assets, including in-substance nonfinancial assets that are not an output of an entity’s ordinary activities (e.g., sales of (1) property, plant, and equipment; (2) real estate; or (3) intangible assets). Existing accounting guidance applicable to these transfers (e.g., ASC 360-20) has been amended or superseded. | ||||
Compared with current U.S. GAAP, the ASU also requires significantly expanded disclosures about revenue recognition. | ||||
On June 19, 2014, the FASB issued ASU 2014-12 in response to the EITF consensus on Issue 13-D. The ASU clarifies that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. Therefore, an entity would not record compensation expense (measured as of the grant date without taking into account the effect of the performance target) related to an award for which transfer to the employee is contingent on the entity’s satisfaction of a performance target until it becomes probable that the performance target will be met. The ASU does not contain any new disclosure requirements. | ||||
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Accounting Policies [Abstract] | ||||
Schedule Of Property and Equipment, Annual Deprecation Rate [Table Text Block] | Annual rates of depreciation are as follows: | |||
% | ||||
Computers and electronic equipment | 15-33 | |||
(mainly 33) | ||||
Office furniture and equipment | 7-Jun | |||
Vehicles | 15 | |||
MARKETABLE_SECURITIES_Tables
MARKETABLE SECURITIES (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Available-For-Sale Securities [Abstract] | ||||||||||
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | December 31 | |||||||||
Maturity year | 2014 | 2013 | ||||||||
U.S. dollars in thousands | ||||||||||
Short-term: (a) | ||||||||||
Municipal bond | $ | 4,408 | $ | 2,757 | ||||||
Corporate bond | 630 | 79 | ||||||||
$ | 5,038 | $ | 2,836 | |||||||
Long-term - security bond (b) | Perpetual | $ | 1,574 | $ | 517 | |||||
a. | The Company invests in highly-rated marketable securities, and its policy limits the amount of credit exposure to any one issuer. The Company’s investment policy requires investments to be investment grade, rated single-A or better, with the objective of minimizing the potential risk of principal loss. Fair values were determined for each individual security in the investment portfolio based on quoted prices in active markets. | |||||||||
b. | As of December 31, 2014 the Company held a long term security bond which is classified as available for sale security and is presented on its fair value. The fair value of the available for sale securities based on quoted prices in active markets for identical instruments (Level 1 as defined under ASC820). | |||||||||
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment [Table Text Block] | a. | Composition of assets, grouped by major classification, is as follows: | ||||||
December 31 | ||||||||
2014 | 2013 | |||||||
U.S. dollars in thousands | ||||||||
Computers and electronic equipment | $ | 1,621 | $ | 1,462 | ||||
Land | 263 | 263 | ||||||
Office furniture and equipment | 165 | 162 | ||||||
Vehicles | 191 | 152 | ||||||
Leasehold improvements | 8 | 8 | ||||||
2,248 | 2,047 | |||||||
Less - accumulated depreciation and amortization | 1,630 | 1,397 | ||||||
$ | 618 | $ | 650 | |||||
EMPLOYEES_RIGHTS_UPON_RETIREME1
EMPLOYEES' RIGHTS UPON RETIREMENT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||
Schedule of Restructuring and Related Costs [Table Text Block] | The amounts accrued and the portions funded, with severance pay funds and by the insurance policies are reflected in the financial statements as follows: | |||||||
December 31 | ||||||||
2014 | 2013 | |||||||
U.S. dollars in thousands | ||||||||
Accrued severance pay | $ | 1,687 | $ | 1,804 | ||||
Less - amounts funded (presented in “Investment and other non-current assets”) | -1,597 | -1,673 | ||||||
Unfunded balance | $ | 90 | $ | 131 | ||||
COMMITMENTS_AND_CONTINGENT_LIA1
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum lease commitments of the Company and its subsidiaries under the above leases, at exchange rates in effect on December 31, 2014, are as follows: | ||||
U.S. dollars in | |||||
thousands | |||||
Years ending December 31: | |||||
2015 | $ | 554 | |||
2016 | 593 | ||||
2017 | 584 | ||||
2018 | 275 | ||||
$ | 2,006 | ||||
SHAREHOLDERS_EQUITY_Tables
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Equity [Abstract] | |||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following is a summary of the status of the 1998 Plan, 2000 plan and 2011 Share Incentive Plan as of December 31, 2014, 2013 and 2012, and changes during the years ended on those dates: | ||||||||||||||||
1) | |||||||||||||||||
Years ended December 31 | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Number | Weighted | Number | Weighted | Number | Weighted | ||||||||||||
average | average | average | |||||||||||||||
exercise | exercise | exercise | |||||||||||||||
price | price | price | |||||||||||||||
Options outstanding at beginning of year | 460,000 | $ | 1.93 | 588,700 | $ | 1.87 | 817,200 | $ | 2.06 | ||||||||
Changes during year: | |||||||||||||||||
Granted (a) | 666,000 | $ | 2.81 | 96,000 | $ | 2.16 | 18,000 | $ | 2.41 | ||||||||
Exercised | -225,400 | $ | 1.88 | -103,500 | $ | 0.7 | -51,500 | $ | 0.78 | ||||||||
Forfeited | -49,000 | $ | 2.03 | -36,000 | $ | 1.94 | -2,000 | $ | 1.04 | ||||||||
Expired | - | - | -85,200 | $ | 3.24 | -193,000 | $ | 3.33 | |||||||||
Options outstanding at end of year | 851,600 | $ | 2.63 | 460,000 | $ | 1.93 | 588,700 | $ | 1.87 | ||||||||
Options exercisable at end of year | 43,600 | $ | 2 | 193,000 | $ | 1.95 | 228,700 | $ | 2.03 | ||||||||
Weighted average grant date fair value of options granted during the year (b) | $ | 0.51 | $ | 0.41 | $ | 0.52 | |||||||||||
(a) | In 2014 the options were granted with an exercise price equal to the average closing price per share of the Company ordinary’s shares on the stock market during the 30 trading day period immediately preceding the date of grant of such option or with an exercise price equal to Par value of NIS 0.01. | ||||||||||||||||
In 2013 and 2012 the options were granted with an exercise price equal to the average closing price per share of the Company ordinary’s shares on the stock market during the 30 trading day period immediately preceding the date of grant of such option. | |||||||||||||||||
(b) | The fair value of each stock option granted is computed on the date of grant according to the Black-Scholes option-pricing model with the following assumptions: | ||||||||||||||||
Years ended December 31 | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Dividend yield | 11 | % | 11 | % | 10 | % | |||||||||||
Expected volatility* | 44 | % | 49 | % | 58 | % | |||||||||||
Average risk-free interest rate | 1.5 | % | 0.8 | % | 0.9 | % | |||||||||||
Expected average term - in years | 3.88 | 3.88 | 3.88 | ||||||||||||||
* | Volatility is based on historical volatility of the Company's share price for periods matching the expected term of the option until exercise. | ||||||||||||||||
Schedule Of Share-Based Compensation Arrangement By Share-Based Payment Award, Fair Value Assumptions and Methodology [Table Text Block] | The fair value of each stock option granted is computed on the date of grant according to the Black-Scholes option-pricing model with the following assumptions: | ||||||||||||||||
Years ended December 31 | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Dividend yield | 11 | % | 11 | % | 10 | % | |||||||||||
Expected volatility* | 44 | % | 49 | % | 58 | % | |||||||||||
Average risk-free interest rate | 1.5 | % | 0.8 | % | 0.9 | % | |||||||||||
Expected average term - in years | 3.88 | 3.88 | 3.88 | ||||||||||||||
* | Volatility is based on historical volatility of the Company's share price for periods matching the expected term of the option until exercise. | ||||||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | The following table summarizes information about options outstanding and exercisable as of December 31, 2014: | ||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||
Number | Weighted | Number | Weighted | ||||||||||||||
outstanding | average | Weighted | exercisable | average | Weighted | ||||||||||||
Range of | At | remaining | average | At | remaining | average | |||||||||||
exercise | December 31, | contractual | exercise | December 31, | contractual | exercise | |||||||||||
prices | 2014 | life | price | 2014 | life | Price | |||||||||||
Years | Years | ||||||||||||||||
$0.003 – 1.939 | 125,000 | 2.4 | $ | 1.32 | 38,000 | 1.85 | $ | 1.94 | |||||||||
$2.410 – 2.947 | 726,600 | 4.61 | $ | 2.85 | 5,600 | 2.16 | $ | 2.41 | |||||||||
851,600 | 4.29 | $ | 2.63 | 43,600 | 1.89 | $ | 2 | ||||||||||
TAXES_ON_INCOME_Tables
TAXES ON INCOME (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Tax Disclosure [Abstract] | |||||||||||
Schedule Of Reduced Flat Tax Rate [Table Text Block] | The following table summarise the reduced flat tax rate with respect to the income attributed to the Preferred Enterprise: | ||||||||||
Tax Year | Development | Other Areas | |||||||||
Region “A” | within Israel | ||||||||||
2011-2012 | 10 | % | 15 | % | |||||||
2013 | 7 | % | 12.5 | % | |||||||
2014 onwards | 9 | % | 16 | % | |||||||
Summary of Income Tax Examinations [Table Text Block] | d. | Deferred income taxes: | |||||||||
1) | Provided in respect of the following: | ||||||||||
December 31 | |||||||||||
2014 | 2013 | ||||||||||
U.S. dollars in thousands | |||||||||||
Research and development expenses | $ | 13 | $ | 61 | |||||||
Carryforward tax losses | 2,284 | 2,450 | |||||||||
Other | 182 | 102 | |||||||||
Less- valuation allowance | -2,284 | -2,317 | |||||||||
$ | 195 | $ | 296 | ||||||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | 1) | As follows: | |||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. dollars in thousands | |||||||||||
Current: | |||||||||||
In Israel | $ | 1,473 | $ | 116 | $ | 88 | |||||
Outside Israel | 94 | 71 | 96 | ||||||||
1,567 | 187 | 184 | |||||||||
Taxes in respect of previous years | - | 107 | 70 | ||||||||
Deferred taxes in Israel | 101 | -157 | 138 | ||||||||
$ | 1,668 | $ | 137 | $ | 392 | ||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2) | Following is a reconciliation of the theoretical tax expense, assuming all income is taxed at the regular tax rates applicable to companies in Israel (see c. above), and the actual tax expense: | |||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. dollars in thousands | |||||||||||
Income before taxes on income, as reported in the statements of operations* | $ | 7,151 | $ | 2,322 | $ | 4,670 | |||||
Theoretical tax expense | 1,895 | 581 | 1,168 | ||||||||
Less - tax benefits arising from approved | |||||||||||
enterprise status, see a. above | -401 | -60 | -410 | ||||||||
1,494 | 521 | 758 | |||||||||
Increase (decrease) in taxes resulting from permanent differences: | |||||||||||
Disallowable deductions | 22 | 60 | 11 | ||||||||
Taxes in respect of previous years | - | 107 | 70 | ||||||||
Changes in valuation allowance | 62 | 243 | 351 | ||||||||
Changes in taxes resulting from computation of deferred taxes at a rate which is different from the theoretical rate and other | 90 | -794 | -798 | ||||||||
Taxes on income for the reported year | $ | 1,668 | $ | 137 | $ | 392 | |||||
* As follows: | |||||||||||
Taxable in Israel | $ | 6,145 | $ | 1,325 | $ | 2,734 | |||||
Taxable outside Israel | 1,006 | 997 | 1,936 | ||||||||
$ | 7,151 | $ | 2,322 | $ | 4,670 | ||||||
SUPPLEMENTARY_BALANCE_SHEET_IN1
SUPPLEMENTARY BALANCE SHEET INFORMATION (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |||||||||||
Schedule Of Accounts Receivable [Table Text Block] | 1) | Trade: | |||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
U.S. dollars in | |||||||||||
thousands | |||||||||||
Open accounts | $ | 2,595 | $ | 1,241 | |||||||
Less - allowance for doubtful accounts * | - | - | |||||||||
$ | 2,595 | $ | 1,241 | ||||||||
* The changes in allowance for doubtful accounts are composed as follows: | |||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. dollars in thousands | |||||||||||
Balance at beginning of year | $ | - | $ | 327 | $ | 308 | |||||
Increase (decrease) during the year | - | 66 | |||||||||
Bad debt written off | - | -327 | -47 | ||||||||
Balance at end of year | $ | - | $ | - | $ | 327 | |||||
Schedule Of Non Trade Receivables [Table Text Block] | 2) | Other: | |||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
U.S. dollars in | |||||||||||
thousands | |||||||||||
Government of Israel | $ | - | $ | 19 | |||||||
Employees | 11 | 28 | |||||||||
Sundry | 223 | 118 | |||||||||
$ | 234 | $ | 165 | ||||||||
Schedule Of Other Accounts Payable and Accrued Liabilities [Table Text Block] | |||||||||||
c. | Accounts payable and accruals - other: | ||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
U.S. dollars in | |||||||||||
thousands | |||||||||||
Payroll and related expenses | $ | 1,268 | $ | 515 | |||||||
Government institutions | 659 | 377 | |||||||||
Accrued vacation pay | 92 | 104 | |||||||||
Accrued expenses and sundry | 287 | 157 | |||||||||
$ | 2,306 | $ | 1,153 | ||||||||
SELECTED_STATEMENT_OF_OPERATIO1
SELECTED STATEMENT OF OPERATIONS DATA (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |||||||||||
Schedule of Product Information [Table Text Block] | Following are data regarding revenues classified by product lines: | ||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. dollars in thousands | |||||||||||
Product line “A” | $ | 20,990 | $ | 14,210 | $ | 15,707 | |||||
Product line “B” | 4,030 | 4,270 | 4,502 | ||||||||
$ | 25,020 | $ | 18,480 | $ | 20,209 | ||||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | 2) | Following are data regarding geographical revenues classified by geographical location of the customers: | |||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. dollars in thousands | |||||||||||
United States | $ | 14,411 | $ | 11,809 | $ | 10,882 | |||||
United Kingdom | 763 | 1,221 | 668 | ||||||||
Rest of Europe | 6,402 | 2,537 | 4,577 | ||||||||
Israel | 2,256 | 1,768 | 3,045 | ||||||||
Other | 1,188 | 1,145 | 1,037 | ||||||||
$ | 25,020 | $ | 18,480 | $ | 20,209 | ||||||
Schedule Of Revenue From External Customers and Property, Plant and Equipment, By Geographical Areas [Table Text Block] | Property and equipment - by geographical location: | ||||||||||
December 31 | |||||||||||
2014 | 2013 | ||||||||||
U.S. dollars in | |||||||||||
thousands | |||||||||||
Israel | $ | 193 | $ | 250 | |||||||
Romania | 421 | 395 | |||||||||
United Kingdom | - | - | |||||||||
United States | 4 | 5 | |||||||||
$ | 618 | $ | 650 | ||||||||
Schedule Of Research and Development Expense [Table Text Block] | b. | Research and development expenses: | |||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. dollars in thousands | |||||||||||
Payroll and related expenses | $ | 3,614 | $ | 3,972 | $ | 3,574 | |||||
Rent and related expenses | 367 | 378 | 286 | ||||||||
Depreciation and amortization | 114 | 133 | 163 | ||||||||
Subcontracting | 189 | 188 | 224 | ||||||||
Other | 255 | 359 | 396 | ||||||||
$ | 4,539 | $ | 5,030 | $ | 4,643 | ||||||
Schedule Of Selling and Marketing Expenses [Table Text Block] | c. | Selling and marketing expenses: | |||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. dollars in thousands | |||||||||||
Payroll and related expenses | $ | 963 | $ | 1,459 | $ | 1,180 | |||||
Depreciation and amortization | 3 | 8 | 12 | ||||||||
Travel and conventions | 79 | 108 | 155 | ||||||||
Other | 95 | 119 | 177 | ||||||||
$ | 1,140 | $ | 1,694 | $ | 1,524 | ||||||
Schedule Of General and Administrative Expenses [Table Text Block] | d. | General and administrative expenses: | |||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. dollars in thousands | |||||||||||
Payroll and related expenses | $ | 1,298 | $ | 1,105 | $ | 980 | |||||
Depreciation and amortization | 17 | 21 | 24 | ||||||||
Insurances | 65 | 60 | 67 | ||||||||
Office expenses | 99 | 102 | 117 | ||||||||
Professional services | 269 | 302 | 368 | ||||||||
Allowance for doubtful accounts and bad debts | - | - | 33 | ||||||||
Other | 186 | 136 | 229 | ||||||||
$ | 1,934 | $ | 1,726 | $ | 1,818 | ||||||
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | e. | Financial income (expense) - net: | |||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. dollars in thousands | |||||||||||
Income: | |||||||||||
Interest on bank deposits and short-term investments | $ | 151 | $ | 97 | $ | 260 | |||||
Non-dollar currency gains - net | - | 17 | 23 | ||||||||
Income from Marketable securities | 148 | 33 | - | ||||||||
Realized gain from sale of available for sale securities | 38 | - | - | ||||||||
Interest on available for sale securities | 33 | 35 | 47 | ||||||||
370 | 182 | 330 | |||||||||
Expenses: | |||||||||||
Non-dollar currency losses - net | -663 | - | - | ||||||||
Bank commissions and charges | -13 | -19 | -8 | ||||||||
Realized loss on sale of available for sale securities | - | - | -24 | ||||||||
-676 | -19 | -32 | |||||||||
$ | -306 | $ | 163 | $ | 298 | ||||||
Schedule of Weighted Average Number of Shares [Table Text Block] | |||||||||||
Following are data relating to the weighted average number of shares for the purpose of computing EPS: | |||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. dollars in thousands | |||||||||||
Weighted average number of shares issued and | 18,949 | 18,869 | 18,767 | ||||||||
outstanding - used in computation of basic EPS | |||||||||||
A d d - incremental shares from assumed exercise of | 83 | 21 | 79 | ||||||||
options | |||||||||||
Weighted average number of shares used in computation of diluted EPS | 19,032 | 18,890 | 18,846 | ||||||||
SIGNIFICANT_ACCOUNTING_POLICIE3
SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Computers and electronic equipment [Member] | Minimum [Member] | |
Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Depreciation Percentage | 15.00% |
Computers and electronic equipment [Member] | Maximum [Member] | |
Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Depreciation Percentage | 33.00% |
Office furniture and equipment [Member] | Minimum [Member] | |
Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Depreciation Percentage | 6.00% |
Office furniture and equipment [Member] | Maximum [Member] | |
Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Depreciation Percentage | 7.00% |
Vehicles [Member] | |
Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Depreciation Percentage | 15.00% |
MARKETABLE_SECURITIES_Details
MARKETABLE SECURITIES (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||
Long-term - security bond Maturity year | Perpetual | [1] | ||
Short-term - security bond | $5,038 | [2] | $2,836 | [2] |
Long-term - security bond | 1,574 | [1] | 517 | [1] |
Municipal bond [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term - security bond | 4,408 | [2] | 2,757 | [2] |
Corporate bond [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term - security bond | $630 | [2] | $79 | [2] |
[1] | As of December 31, 2014 the Company held a long term security bond which is classified as available for sale security and is presented on its fair value. The fair value of the available for sale securities based on quoted prices in active markets for identical instruments (Level 1 as defined under ASC820). | |||
[2] | The Company invests in highly-rated marketable securities, and its policy limits the amount of credit exposure to any one issuer. The Company’s investment policy requires investments to be investment grade, rated single-A or better, with the objective of minimizing the potential risk of principal loss. Fair values were determined for each individual security in the investment portfolio based on quoted prices in active markets. |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $2,248 | $2,047 |
Less - accumulated depreciation and amortization | 1,630 | 1,397 |
Property Plant And Equipment Net | 618 | 650 |
Computers and electronic equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 1,621 | 1,462 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 263 | 263 |
Office furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 165 | 162 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 191 | 152 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $8 | $8 |
PROPERTY_AND_EQUIPMENT_Details1
PROPERTY AND EQUIPMENT (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Depreciation, Depletion and Amortization | $233 | $250 | $270 |
EMPLOYEES_RIGHTS_UPON_RETIREME2
EMPLOYEES' RIGHTS UPON RETIREMENT (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Employees Rights Upon Retirement [Line Items] | ||
Accrued severance pay | $1,687 | $1,804 |
Less - amounts funded (presented in “Investment and other non-current assetsâ€) | -1,597 | -1,673 |
Unfunded balance | $90 | $131 |
EMPLOYEES_RIGHTS_UPON_RETIREME3
EMPLOYEES' RIGHTS UPON RETIREMENT (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employees Rights Upon Retirement [Line Items] | |||
Severance Costs | $68 | $77 | $147 |
COMMITMENTS_AND_CONTINGENT_LIA2
COMMITMENTS AND CONTINGENT LIABILITIES: (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Gain Contingencies [Line Items] | |
2015 | $554 |
2016 | 593 |
2017 | 584 |
2018 | 275 |
Operating Leases, Future Minimum Payments Due | $2,006 |
COMMITMENTS_AND_CONTINGENT_LIA3
COMMITMENTS AND CONTINGENT LIABILITIES (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Gain Contingencies [Line Items] | |||
Operating Leases, Rent Expense, Contingent Rentals | $603 | $581 | $571 |
Contingent Liabilities | $65 |
SHAREHOLDERS_EQUITY_Details
SHAREHOLDERS' EQUITY (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of Options, outstanding at beginning of year (in shares) | 460,000 | 588,700 | 817,200 | |||
Number of Options, Granted (in shares) | 666,000 | [1] | 96,000 | [1] | 18,000 | [1] |
Number of Options, Exercised (in shares) | -225,400 | -103,500 | -51,500 | |||
Number of Options, Forfeited (in shares) | -49,000 | -36,000 | -2,000 | |||
Number of Options, Expired (in shares) | 0 | -85,200 | -193,000 | |||
Number of Options, outstanding at end of year (in shares) | 851,600 | 460,000 | 588,700 | |||
Number of Options, exercisable at end of year (in shares) | 43,600 | 193,000 | 228,700 | |||
Weighted average exercise price, Options outstanding at beginning of year | $1.93 | $1.87 | $2.06 | |||
Weighted average exercise price, Options Granted | $2.81 | [1] | $2.16 | [1] | $2.41 | [1] |
Weighted average exercise price, Options Exercised | $1.88 | $0.70 | $0.78 | |||
Weighted average exercise price, Options Forfeited | $2.03 | $1.94 | $1.04 | |||
Weighted average exercise price, Options Expired | $0 | $3.24 | $3.33 | |||
Weighted average exercise price, Options Options outstanding at end of year | $2.63 | $1.93 | $1.87 | |||
Weighted average exercise price, Options exercisable at end of year | $2 | $1.95 | $2.03 | |||
Weighted average grant date fair value of options granted during the year | $0.51 | [2] | $0.41 | [2] | $0.52 | [2] |
[1] | In 2014 the options were granted with an exercise price equal to the average closing price per share of the Company ordinary’s shares on the stock market during the 30 trading day period immediately preceding the date of grant of such option or with an exercise price equal to Par value of NIS 0.01. | |||||
[2] | The fair value of each stock option granted is computed on the date of grant according to the Black-Scholes option-pricing model with the following assumptions: Years ended December 31 2014 2013 2012 Dividend yield 11 % 11 % 10 % Expected volatility* 44 % 49 % 58 % Average risk-free interest rate 1.5 % 0.8 % 0.9 % Expected average term - in years 3.88 3.88 3.88 * Volatility is based on historical volatility of the Company's share price for periods matching the expected term of the option until exercise. |
SHAREHOLDERS_EQUITY_Details_1
SHAREHOLDERS' EQUITY (Details 1) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Dividend yield | 11.00% | 11.00% | 10.00% | |||
Expected volatility | 44.00% | [1] | 49.00% | [1] | 58.00% | [1] |
Average risk-free interest rate | 1.50% | 0.80% | 0.90% | |||
Expected average term - in years | 3 years 10 months 17 days | 3 years 10 months 17 days | 3 years 10 months 17 days | |||
[1] | Volatility is based on historical volatility of the Company's share price for periods matching the expected term of the option until exercise. |
SHAREHOLDERS_EQUITY_Details_2
SHAREHOLDERS' EQUITY (Details 2) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Options, outstanding At December 31, 2014 (in shares) | 851,600 |
Outstanding Options, Weighted average remaining contractual Life (Years) | 4 years 3 months 14 days |
Outstanding Options, Weighted Average Exercise Price | $2.63 |
Number of Options, Exercisable At December 31, 2014 (in shares) | 43,600 |
Exercisable Options, Weighted average remaining contractual Life (Years) | 1 year 10 months 20 days |
Exercisable Options, Weighted Average Exercise Price | $2 |
Stock Option Plans, Exercise Price Range One [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices (Lower Range Limit) | $0.00 |
Range of exercise prices (Upper Range Limit) | $1.94 |
Number of Options, outstanding At December 31, 2014 (in shares) | 125,000 |
Outstanding Options, Weighted average remaining contractual Life (Years) | 2 years 4 months 24 days |
Outstanding Options, Weighted Average Exercise Price | $1.32 |
Number of Options, Exercisable At December 31, 2014 (in shares) | 38,000 |
Exercisable Options, Weighted average remaining contractual Life (Years) | 1 year 10 months 6 days |
Exercisable Options, Weighted Average Exercise Price | $1.94 |
Stock Option Plans, Exercise Price Range Two [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices (Lower Range Limit) | $2.41 |
Range of exercise prices (Upper Range Limit) | $2.95 |
Number of Options, outstanding At December 31, 2014 (in shares) | 726,600 |
Outstanding Options, Weighted average remaining contractual Life (Years) | 4 years 7 months 10 days |
Outstanding Options, Weighted Average Exercise Price | $2.85 |
Number of Options, Exercisable At December 31, 2014 (in shares) | 5,600 |
Exercisable Options, Weighted average remaining contractual Life (Years) | 2 years 1 month 28 days |
Exercisable Options, Weighted Average Exercise Price | $2.41 |
SHAREHOLDERS_EQUITY_Details_Te
SHAREHOLDERS' EQUITY (Details Textual) | 12 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2009 | Dec. 31, 2010 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2011 | |
USD ($) | USD ($) | USD ($) | USD ($) | ILS | Minimum [Member] | Maximum [Member] | Share Incentive Plan [Member] | |
ILS | ||||||||
Class of Stock [Line Items] | ||||||||
Stock Repurchased and Retired During Period, Shares (in shares) | 3,165,092 | |||||||
Stock Repurchased and Retired During Period, Value | $2,800,000 | |||||||
Treasury Stock, Value | 1,863,000 | 2,287,000 | ||||||
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share) | $0.24 | $0.24 | $0.24 | |||||
Dividend paid | 4,544,000 | 4,532,000 | 4,505,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 4,306,000 | 1,800,000 | ||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Par Value (in dollars per share) | 0.01 | 0.01 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | 5 years | ||||||
Allocated Share-based Compensation Expense | 72,000 | 58,000 | 80,000 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | 240,000 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 5 months 12 days | |||||||
Proceeds From Stock Options Exercised | 424,000 | 73,000 | 41,000 | |||||
Treasury Stock, Shares | 2,549,692 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 322,000 | 165,000 | 73,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 1,108,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $84,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | 7 years |
TAXES_ON_INCOME_Details
TAXES ON INCOME (Details) | 12 Months Ended | |||
Dec. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Expenses Benefit [Line Items] | ||||
Effective Income Tax Rate, Continuing Operations | 25.00% | |||
Development Region A [Member] | ||||
Income Tax Expenses Benefit [Line Items] | ||||
Effective Income Tax Rate, Continuing Operations | 9.00% | 7.00% | 10.00% | |
Other Areas Within Israel [Member] | ||||
Income Tax Expenses Benefit [Line Items] | ||||
Effective Income Tax Rate, Continuing Operations | 16.00% | 12.50% | 15.00% |
TAXES_ON_INCOME_Details_1
TAXES ON INCOME (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Expenses Benefit [Line Items] | ||
Research and development expenses | $13 | $61 |
Carryforward tax losses | 2,284 | 2,450 |
Other | 182 | 102 |
Less- valuation allowance | -2,284 | -2,317 |
Deferred Tax Assets, Net | $195 | $296 |
TAXES_ON_INCOME_Details_2
TAXES ON INCOME (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Expenses Benefit [Line Items] | |||
Current Income Tax Expense (Benefit) | $1,567 | $187 | $184 |
Taxes in respect of previous years | 0 | 107 | 70 |
Deferred taxes in Israel | 101 | -157 | 138 |
Income Tax Expense (Benefit) | 1,668 | 137 | 392 |
In Israel [Member] | |||
Income Tax Expenses Benefit [Line Items] | |||
Current State And Local Tax Expense Benefit | 1,473 | 116 | 88 |
Outside Israel [Member] | |||
Income Tax Expenses Benefit [Line Items] | |||
Current Foreign Tax Expense Benefit | $94 | $71 | $96 |
TAXES_ON_INCOME_Details_3
TAXES ON INCOME (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Expenses Benefit [Line Items] | |||
Income before taxes on income, as reported in the statements of operations* | $7,151 | $2,322 | $4,670 |
Theoretical tax expense | 1,895 | 581 | 1,168 |
Less - tax benefits arising from approved enterprise status, see a. above | -401 | -60 | -410 |
Theoretical Tax Expense Net of Tax Benefits | 1,494 | 521 | 758 |
Increase (decrease) in taxes resulting from permanent differences: | |||
Disallowable deductions | 22 | 60 | 11 |
Taxes in respect of previous years | 0 | 107 | 70 |
Changes in valuation allowance | 62 | 243 | 351 |
Changes in taxes resulting from computation of deferred taxes at a rate which is different from the theoretical rate and other | 90 | -794 | -798 |
Taxes on income for the reported year | 1,668 | 137 | 392 |
* As follows: | |||
Taxable in Israel | 6,145 | 1,325 | 2,734 |
Taxable outside Israel | 1,006 | 997 | 1,936 |
INCOME BEFORE TAXES ON INCOME | $7,151 | $2,322 | $4,670 |
TAXES_ON_INCOME_Details_Textua
TAXES ON INCOME (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2011 | Jul. 31, 2014 | |
Income Tax Expenses Benefit [Line Items] | |||
Effective Income Tax Rate Reconciliation, Deductions, Dividends | 25.00% | ||
Effective Income Tax Rate, Continuing Operations | 25.00% | ||
Effective Income Tax Rate On Dividends Distributed To Individuals And Foreign Residents | 15.00% | ||
Israeli Resident Corporations [Member] | |||
Income Tax Expenses Benefit [Line Items] | |||
Withholding Tax Rate | 0.00% | ||
Israeli Resident Individuals [Member] | |||
Income Tax Expenses Benefit [Line Items] | |||
Withholding Tax Rate | 15.00% | ||
Non Israeli Residents [Member] | |||
Income Tax Expenses Benefit [Line Items] | |||
Withholding Tax Rate | 15.00% | ||
Subsidiaries [Member] | |||
Income Tax Expenses Benefit [Line Items] | |||
Tax Credit Carryforward, Amount | 6,900,000 | ||
MIND Software Limited [Member] | |||
Income Tax Expenses Benefit [Line Items] | |||
Proceeds from Sale of Productive Assets | $3,880,000 | ||
January 1, 2014 [Member] | |||
Income Tax Expenses Benefit [Line Items] | |||
Effective Income Tax Rate On Dividends Distributed To Individuals And Foreign Residents | 20.00% | ||
January 1, 2014 and thereafter [Member] | |||
Income Tax Expenses Benefit [Line Items] | |||
Effective Income Tax Rate, Continuing Operations | 26.50% | ||
Legislation Amendment 2011 [Member] | Year 2012 and There After [Member] | |||
Income Tax Expenses Benefit [Line Items] | |||
Effective Income Tax Rate, Continuing Operations | 25.00% | ||
Development Region [Member] | |||
Income Tax Expenses Benefit [Line Items] | |||
Effective Income Tax Rate, Continuing Operations | 9.00% | ||
Other Areas Within Israel [Member] | |||
Income Tax Expenses Benefit [Line Items] | |||
Effective Income Tax Rate, Continuing Operations | 16.00% | ||
In Israel [Member] | |||
Income Tax Expenses Benefit [Line Items] | |||
Effective Income Tax Rate, Continuing Operations | 22.00% |
SUPPLEMENTARY_BALANCE_SHEET_IN2
SUPPLEMENTARY BALANCE SHEET INFORMATION (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
In Thousands, unless otherwise specified | ||||||
Trade: | ||||||
Open accounts | $2,595 | $1,241 | ||||
Less - allowance for doubtful accounts | 0 | [1] | 0 | [1] | -327 | -308 |
Trade | $2,595 | $1,241 | ||||
[1] | The changes in allowance for doubtful accounts are composed as follows: |
SUPPLEMENTARY_BALANCE_SHEET_IN3
SUPPLEMENTARY BALANCE SHEET INFORMATION (Details 1) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Balance at beginning of year | $0 | [1] | $327 | $308 | |
Increase (decrease) during the year | 0 | 66 | |||
Bad debt written off | 0 | -327 | -47 | ||
Balance at end of year | $0 | [1] | $0 | [1] | $327 |
[1] | The changes in allowance for doubtful accounts are composed as follows: |
SUPPLEMENTARY_BALANCE_SHEET_IN4
SUPPLEMENTARY BALANCE SHEET INFORMATION (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other: | ||
Nontrade Receivables, Current | $234 | $165 |
Government of Israel [Member] | ||
Other: | ||
Nontrade Receivables, Current | 0 | 19 |
Employees [Member] | ||
Other: | ||
Nontrade Receivables, Current | 11 | 28 |
Sundry [Member] | ||
Other: | ||
Nontrade Receivables, Current | $223 | $118 |
SUPPLEMENTARY_BALANCE_SHEET_IN5
SUPPLEMENTARY BALANCE SHEET INFORMATION (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts payable and accruals - other: | ||
Payroll and related expenses | $1,268 | $515 |
Government institutions | 659 | 377 |
Accrued vacation pay | 92 | 104 |
Accrued expenses and sundry | 287 | 157 |
Accounts payable and accruals - other | $2,306 | $1,153 |
SUPPLEMENTARY_BALANCE_SHEET_IN6
SUPPLEMENTARY BALANCE SHEET INFORMATION (Details Textual) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Cash Equivalents, at Carrying Value | $3.70 | $3.80 |
Weighted Average Annual Interest Rate On Bank Deposits | 0.09% |
SELECTED_STATEMENT_OF_OPERATIO2
SELECTED STATEMENT OF OPERATIONS DATA (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues, Total | $25,020 | $18,480 | $20,209 |
Product Line A [Member] | |||
Revenues, Total | 20,990 | 14,210 | 15,707 |
Product Line B [Member] | |||
Revenues, Total | $4,030 | $4,270 | $4,502 |
SELECTED_STATEMENT_OF_OPERATIO3
SELECTED STATEMENT OF OPERATIONS DATA (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues, Total | $25,020 | $18,480 | $20,209 |
United States [Member] | |||
Revenues, Total | 14,411 | 11,809 | 10,882 |
United Kingdom [Member] | |||
Revenues, Total | 763 | 1,221 | 668 |
Rest Of Europe [Member] | |||
Revenues, Total | 6,402 | 2,537 | 4,577 |
Israel [Member] | |||
Revenues, Total | 2,256 | 1,768 | 3,045 |
Other Countries [Member] | |||
Revenues, Total | $1,188 | $1,145 | $1,037 |
SELECTED_STATEMENT_OF_OPERATIO4
SELECTED STATEMENT OF OPERATIONS DATA (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property Plant And Equipment Net | $618 | $650 |
Israel [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property Plant And Equipment Net | 193 | 250 |
Romania [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property Plant And Equipment Net | 421 | 395 |
United Kingdom [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property Plant And Equipment Net | 0 | 0 |
United States [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property Plant And Equipment Net | $4 | $5 |
SELECTED_STATEMENT_OF_OPERATIO5
SELECTED STATEMENT OF OPERATIONS DATA (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Research and development expenses: | |||
Research and development expenses | $4,539 | $5,030 | $4,643 |
Research and Development Expense [Member] | |||
Research and development expenses: | |||
Payroll and related expenses | 3,614 | 3,972 | 3,574 |
Rent and related expenses | 367 | 378 | 286 |
Depreciation and amortization | 114 | 133 | 163 |
Subcontracting | 189 | 188 | 224 |
Other | $255 | $359 | $396 |
SELECTED_STATEMENT_OF_OPERATIO6
SELECTED STATEMENT OF OPERATIONS DATA (Details 4) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Selling and marketing expenses: | |||
Selling and marketing expenses | $1,140 | $1,694 | $1,524 |
Selling and Marketing Expense [Member] | |||
Selling and marketing expenses: | |||
Payroll and related expenses | 963 | 1,459 | 1,180 |
Depreciation and amortization | 3 | 8 | 12 |
Travel and conventions | 79 | 108 | 155 |
Other | $95 | $119 | $177 |
SELECTED_STATEMENT_OF_OPERATIO7
SELECTED STATEMENT OF OPERATIONS DATA (Details 5) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
General and administrative expenses: | |||
General and administrative expenses | $1,934 | $1,726 | $1,818 |
General and Administrative Expense [Member] | |||
General and administrative expenses: | |||
Payroll and related expenses | 1,298 | 1,105 | 980 |
Depreciation and amortization | 17 | 21 | 24 |
Insurances | 65 | 60 | 67 |
Office expenses | 99 | 102 | 117 |
Professional services | 269 | 302 | 368 |
Allowance for doubtful accounts and bad debts | 0 | 0 | 33 |
Other | $186 | $136 | $229 |
SELECTED_STATEMENT_OF_OPERATIO8
SELECTED STATEMENT OF OPERATIONS DATA (Details 6) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income: | |||
Interest on bank deposits and short-term investments | $151 | $97 | $260 |
Non-dollar currency gains - net | 0 | 17 | 23 |
Income from Marketable securities | 148 | 33 | 0 |
Realized gain from sale of available for sale securities | 38 | 0 | 0 |
Interest on available for sale securities | 33 | 35 | 47 |
Other Nonoperating Income | 370 | 182 | 330 |
Expenses: | |||
Non-dollar currency losses - net | -663 | 0 | 0 |
Bank commissions and charges | -13 | -19 | -8 |
Realized loss on sale of available for sale securities | 0 | 0 | -24 |
Other Nonoperating Expense | -676 | -19 | -32 |
Financial income (expense) - net | ($306) | $163 | $298 |
SELECTED_STATEMENT_OF_OPERATIO9
SELECTED STATEMENT OF OPERATIONS DATA (Details 7) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings per ordinary share (“EPSâ€): | |||
Weighted average number of shares issued and outstanding - used in computation of basic EPS | 18,949 | 18,869 | 18,767 |
A d d - incremental shares from assumed exercise of options | 83 | 21 | 79 |
Weighted average number of shares used in computation of diluted EPS | 19,032 | 18,890 | 18,846 |
Recovered_Sheet1
SELECTED STATEMENT OF OPERATIONS DATA (Details Textual) (Employee Stock Option [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 636,000 | 400,000 | 425,200 |