MIND C.T.I. (MNDO) 20-F 11 Apr 16 2015 FY Annual report (foreign) Financial data

Document And Entity Information

Document And Entity Information	12 Months Ended
	Dec. 31, 2015shares
Document Information [Line Items]
Entity Registrant Name	MIND CTI LTD
Entity Central Index Key	1,119,083
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Trading Symbol	MNDO
Entity Common Stock, Shares Outstanding	19,202,418
Document Type	20-F
Amendment Flag	false
Document Period End Date	Dec. 31, 2015
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,015
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands		Dec. 31, 2015	Dec. 31, 2014
CURRENT ASSETS:
Cash and cash equivalents		$ 11,475	$ 8,100
Short-term bank deposits		1,498	4,551
Marketable securities		5,151	5,038
Accounts receivable, net:
Trade		2,243	2,595
Other		213	234
Prepaid expenses		232	384
Deferred cost of revenues		78	21
Deferred income taxes		187	175
Inventories		9	10
Total current assets		21,086	21,108
INVESTMENTS AND OTHER NON-CURRENT ASSETS:
Marketable securities - available-for-sale	[1]	1,441	1,574
Severance pay fund		1,623	1,597
Deferred income taxes		54	20
PROPERTY AND EQUIPMENT, net of accumulated depreciation and amortization		591	618
GOODWILL		5,430	5,430
Total assets		30,225	30,347
Accounts payable and accruals:
Trade		237	138
Other		2,264	2,306
Deferred revenues		3,664	3,671
Total current liabilities		6,165	6,115
LONG-TERM LIABILITIES:
Deferred revenues		426	134
Employees' rights upon retirement		1,786	1,687
Total liabilities		8,377	7,936
SHAREHOLDERS’ EQUITY:
Share capital		54	54
Additional paid-in capital		25,862	25,724
Accumulated other comprehensive loss		(195)	(63)
Differences from translation of foreign currency financial statements of a subsidiary		(877)	(877)
Treasury shares		(1,692)	(1,863)
Accumulated deficit		(1,304)	(564)
Total shareholders’ equity		21,848	22,411
Total liabilities and shareholders’ equity		$ 30,225	$ 30,347
[1]	As of December 31, 2015 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 security based on quoted prices in active markets for identical instruments (Level 1 as defined under ASC_820).

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
REVENUES:
Sales of licenses	$ 3,942	$ 5,397	$ 4,613
Services	16,986	19,623	13,867
Revenues, Total	20,928	25,020	18,480
COST OF REVENUES
Cost of sales of licenses	418	488	421
Cost of services	8,212	9,462	7,450
Cost of Revenue, Total	8,630	9,950	7,871
GROSS PROFIT	12,298	15,070	10,609
RESEARCH AND DEVELOPMENT EXPENSES	2,943	4,539	5,030
SELLING AND MARKETING EXPENSES	1,173	1,140	1,694
GENERAL AND ADMINISTRATIVE EXPENSES	1,766	1,934	1,726
OPERATING INCOME	6,416	7,457	2,159
FINANCIAL INCOME (EXPENSES) - net	(114)	(306)	163
INCOME BEFORE TAXES ON INCOME	6,302	7,151	2,322
TAXES ON INCOME	1,284	1,668	137
NET INCOME FOR THE YEAR	$ 5,018	$ 5,483	$ 2,185
EARNINGS PER ORDINARY SHARE -
Basic and diluted (in dollars per share)	$ 0.26	$ 0.29	$ 0.12
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES USED IN COMPUTATION OF EARNINGS PER ORDINARY SHARE - IN THOUSANDS
Basic (in shares)	19,183	18,949	18,869
Diluted (in shares)	19,283	19,032	18,890

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
COMPREHENSIVE INCOME
Net Income	$ 5,018	$ 5,483	$ 2,185
OTHER COMPREHENSIVE INCOME (LOSS)
Currency translation adjustments	0	81	85
Unrealized gain (loss) from available-for-sale securities	(132)	(94)	14
Total other comprehensive income (loss)	(132)	(13)	99
TOTAL COMPREHENSIVE INCOME	$ 4,886	$ 5,470	$ 2,284

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Loss [Member]	Accumulated deficit [Member]	Treasury Shares [Member]
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	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 issued to employees from treasury shares	73	$ 0	0	0	0	73
Exercise of options issued to employees from treasury shares (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	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 issued to employees from treasury shares	424	$ 0	0	0	0	424
Exercise of options issued to employees from treasury shares (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
Comprehensive income	4,886	$ 0	0	(132)	5,018	0
Dividend paid (Note 7c)	(5,758)	0	0	0	(5,758)	0
Employees share based compensation expenses	138	0	138	0	0	0
Exercise of options issued to employees from treasury shares	171	$ 0	0	0	0	171
Exercise of options issued to employees from treasury shares (in shares)		92
BALANCE at Dec. 31, 2015	$ 21,848	$ 54	$ 25,862	$ (1,072)	$ (1,304)	$ (1,692)
BALANCE (in shares) at Dec. 31, 2015		19,202

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 5,018	$ 5,483	$ 2,185
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (see Note 3)	173	233	250
Deferred income taxes, net	(46)	101	(157)
Accrued severance pay	105	68	77
Unrealized loss (gain) from marketable securities, net	98	(26)	6
Capital gain on sale of property and equipment, net	0	0	(5)
Employees share based compensation	138	72	58
Realized loss (gain) on sale of marketable securities - available-for-sale, net	0	(9)	1
Decrease (increase) in accounts receivable:
Trade	352	(1,354)	(390)
Other	21	(70)	(15)
Decrease (increase) in prepaid expenses and deferred cost of revenues	95	(77)	351
Decrease in inventories	1	0	3
Increase (decrease) in accounts payable and accruals:
Trade	99	(387)	412
Other	(42)	1,153	1
Increase (decrease) in deferred revenues	285	(1,346)	2,413
Net cash provided by operating activities	6,297	3,841	5,190
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in marketable securities - available-for-sale	0	(1,664)	0
Proceeds from sale of marketable securities - available-for-sale	0	522	0
Purchase of property and equipment	(146)	(201)	(240)
Severance pay funds	(32)	(109)	(162)
Investment in short-term bank deposits	0	0	(2,559)
Realization of short-term bank deposits	3,053	3,746	0
Investments in marketable securities	(210)	(2,176)	(2,842)
Proceeds from sale of property and equipment	0	0	26
Net cash provided by (used in) investing activities	2,665	118	(5,777)
CASH FLOWS FROM FINANCING ACTIVITIES:
Employee stock options exercised and paid	171	424	73
Dividend paid	(5,758)	(4,544)	(4,532)
Net cash used in financing activities	(5,587)	(4,120)	(4,459)
TRANSLATION ADJUSTMENTS ON CASH AND CASH EQUIVALENTS	0	49	(52)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	3,375	(112)	(5,098)
BALANCE OF CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	8,100	8,212	13,310
BALANCE OF CASH AND CASH EQUIVALENTS AT END OF YEAR	11,475	8,100	8,212
SUPPLEMENTAL DISCLOSURE OF CASH FLOW AND NON-CASH ACTIVITIES-
Taxes paid	$ 414	$ 1,266	$ 95

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2015
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"). 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. 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. Principles of consolidation: 1) The consolidated financial statements include the accounts of the Company and all of its wholly-owned 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 AFS 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. % Computers and electronic equipment 15-33 (mainly 33) Office furniture and equipment 6-7 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 Accounting Standards Codification (“ASC”) 350, "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: The Company accounts for income taxes, in accordance with the provisions of ASC 740 ("Income Taxes,") under the liability method of accounting. Under the liability method, deferred taxes are determined based on the differences between the financial statement and tax basis of assets and liabilities at enacted tax rates in effect in the year in which the differences are expected to reverse. Valuation allowances are established, when necessary, to reduce deferred tax assets to amounts expected to be realized. Deferred tax liabilities and assets are classified as current or non-current based on the classification of the related asset or liability for financial reporting or, if not related to an asset or liability for financial reporting, according to the expected reversal dates of the specific temporary differences. For uncertain tax positions, the Company follows a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate resolution. The Company’s policy is to include interest and penalties related to unrecognized tax benefits within income tax expense. 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" and ASC 605-35, "Construction-Type and Production-Type Contracts", 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", 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. Share-based compensation: The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation - Stock Compensation", which requires the measurement and recognition of compensation expense based on estimated fair values for all 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 statements of operations. 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 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, 2015 and 2014 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 Financial Accounting Statndards Board (“FASB”) and the International Accounting Standards Board (“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). ASU 2014-09 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, ASU 2014-09 also requires significantly expanded disclosures about revenue recognition. On August 12, 2015, the FASB issued ASU 2015-14, which defers the effective date of the Board’s revenue standard, ASU 2014-09, by one year for all entities and permits early adoption on a limited basis. Specifically: • For public business entities, the standard is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2017. Early adoption is permitted as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within those annual periods. • For non-public entities, the standard is effective for annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. Non-public entities can also elect to early adopt the standard as of the following: - Annual reporting periods beginning after December 15, 2016, including interim periods. - Annual reporting periods beginning after December 15, 2016, and interim periods within annual reporting periods beginning one year after the annual reporting period in which the new standard is initially applied. On November 20, 2015, the FASB issued ASU 2015-17 as part of its simplification initiative (i.e., the Board’s effort to reduce the cost and complexity of certain aspects of U.S. GAAP). The ASU requires entities to present deferred tax assets (“DTAs”) and deferred tax liabilities (“DTLs”) as non-current in a classified balance sheet. It thus simplifies the current guidance, which requires entities to separately present DTAs and DTLs as current or non-current in a classified balance sheet. Netting of DTAs and DTLs by tax jurisdiction is still required under the new guidance. For public business entities, the amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. For all other entities, the amendments in this Update are effective for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period.

MARKETABLE SECURITIES

MARKETABLE SECURITIES	12 Months Ended
	Dec. 31, 2015
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 2015 2014 U.S. dollars in thousands Short-term (a): Municipal bond $ 4,446 $ 4,408 Corporate bond 705 630 $ 5,151 $ 5,038 Long-term - security bond (b) Perpetual $ 1,441 $ 1,574 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, 2015 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 security based on quoted prices in active markets for identical instruments (Level 1 as defined under ASC_820).

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2015
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 2015 2014 U.S. dollars in thousands Computers and electronic equipment $ 1,756 $ 1,621 Land 263 263 Office furniture and equipment 166 165 Vehicles 201 191 Leasehold improvements 8 8 2,394 2,248 Less - accumulated depreciation and amortization 1,803 1,630 $ 591 $ 618 b. Depreciation and amortization expenses totaled $ 173 233 250

GOODWILL

GOODWILL	12 Months Ended
	Dec. 31, 2015
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. 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 2015, 2014 and 2013 and did not identify any impairment losses.

EMPLOYEES' RIGHTS UPON RETIREME

EMPLOYEES' RIGHTS UPON RETIREMENT	12 Months Ended
	Dec. 31, 2015
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. December 31 2015 2014 U.S. dollars in thousands Accrued severance pay $ 1,786 $ 1,687 Less - amounts funded (presented in “Investment and other non-current assets”) (1,623) (1,597) Unfunded balance $ 163 $ 90 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 $ 271 181 139

COMMITMENTS AND CONTINGENT LIAB

COMMITMENTS AND CONTINGENT LIABILITIES	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	NOTE 6 - COMMITMENTS AND CONTINGENT LIABILITIES a. Commitments: The Company and its subsidiaries entered into premises lease agreements that will expire between 2017 and 2019. Years ending December 31: U.S. dollars in thousands 2016 $ 548 2017 539 2018 246 2019 46 $ 1,379 Rental expense totaled $ 529 603 581 b. Contingent liabilities: The Company has provided bank guarantees relating to future performance on certain contracts. As of December 31, 2015, contingent liabilities on outstanding bank guarantees aggregated to an amount of approximately $ 40

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2015
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 2.8 2,457,592 1.7 171 424 73 c. Dividend: Dividends paid per share in the years ended December 31, 2015, 2014 and 2013 were $ 0.30 0.24 0.24 The Company paid dividends to its shareholders in the amounts of $ 5.8 4.5 4.5 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 0.01 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 0.01 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 5 7 The compensation costs charged against income for all of the Company's equity incentive plans during the years ended December 31, 2015, 2014 and 2013 were approximately $ 138 72 58 1) Years ended December 31 2015 2014 2013 Number Weighted Number Weighted Number Weighted Options outstanding at beginning of year 851,600 $ 2.63 460,000 $ 1.93 588,700 $ 1.87 Changes during year: Granted (a) 116,800 $ 1.66 666,000 $ 2.81 96,000 $ 2.16 Exercised (92,100) $ 1.85 (225,400) $ 1.88 (103,500) $ 0.70 Forfeited (166,000) $ 2.88 (49,000) $ 2.03 (36,000) $ 1.94 Expired - - - - (85,200) $ 3.24 Options outstanding at end of year 710,300 $ 2.51 851,600 $ 2.63 460,000 $ 1.93 Options exercisable at end of year 51,000 $ 1.98 43,600 $ 2.00 193,000 $ 1.95 Weighted average grant date fair value of options granted during the year (b) 0.94 $ 0.51 $ 0.41 (a) In the years ended December 31, 2015 and 2014 the options were granted with an exercise price equal to the average closing price per share of the Company’s ordinary 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 the year ended December 31, 2013 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) Years ended December 31 2015 2014 2013 Dividend yield 10 % 11 % 11 % Expected volatility* 48 % 44 % 49 % Average risk-free interest rate 1.5 % 1.5 % 0.8 % 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, 2015 there were approximately $ 225 1.46 2) 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 2015 life price 2015 life price Years Years $ 0.003 – 1.939 118,800 2.74 $ 0.72 44,000 0.85 $ 1.94 $ 2.16 – 2.947 591,500 3.73 $ 2.87 7,000 1.74 $ 2.27 710,300 3.56 $ 2.51 51,000 0.97 $ 1.98 The total intrinsic value of options exercised during the years ended December 31, 2015, 2014 and 2013 were approximately $ 176 322 165 231 28

TAXES ON INCOME

TAXES ON INCOME	12 Months Ended
	Dec. 31, 2015
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 (the "2011 Amendment") was published. The 2011 Amendment significantly revised the tax incentive regime in Israel, commencing on January, 1 2011. The 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 Israeli Parliament 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%. Tax Year Development Other Areas 2011-2012 10% 15% 2013 7% 12.5% 2014 onwards 9% 16% b. Tax benefits under the Law for the Encouragement of Capital Investments, 1959: (continued) 2) Tax benefits under the 2011 Amendment (continued) 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. The Company's 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 2015 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% in 2014 and 2015. On 5 January 2016, the Israeli Parliament officially published the Law for the Amendment of the Israeli Tax Ordinance (Amendment 216), that reduces the standard corporate income tax rate from 26.5% to 25%. The amendment will enter into force on January 1, 2016 and the 25% corporate tax rate will apply to income that was generated from that day onwards. 2) Income of non-Israeli subsidiaries Non-Israeli subsidiaries are taxed according to tax laws in their countries of residence. December 31 2015 2014 U.S. dollars in thousands 1) Research and development expenses $ 54 $ 13 Carryforward tax losses 1,494 2,284 Other 187 182 Less- valuation allowance (1,494 ) (2,284 ) $ 241 $ 195 2) As of December 31, 2015, the carryforward tax losses are related mainly to the Company’s subsidiaries (in the U.S. and U.K.) and amounted to approximately $4.6 million. The Company has provided valuation allowance in respect of deferred tax assets resulting from carryforward tax losses of the Company's 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: Years ended December 31, 2015 2014 2013 U.S. dollars in thousands Current: In Israel $ 1,283 $ 1,473 $ 116 Outside Israel 99 94 71 1,382 1,567 187 Taxes in respect of previous years (52 ) - 107 Deferred taxes in Israel (46 ) 101 (157 ) $ 1,284 $ 1,668 $ 137 2) Years ended December 31, 2015 2014 2013 U.S. dollars in thousands Income before taxes on income, as reported in the statements of operations* $ 6,302 $ 7,151 $ 2,322 Theoretical tax expense 1,670 1,895 581 Less - tax benefits arising from approved enterprise status, see a. above (271 ) (401 ) (60 ) 1,399 1,494 521 Increase (decrease) in taxes resulting from permanent differences: Disallowable deductions 42 22 60 Taxes in respect of previous years (52 ) - 107 Changes in valuation allowance (747 ) 62 243 Changes in taxes resulting from computation of deferred taxes at a rate which is different from the theoretical rate and other 642 90 (794 ) Taxes on income for the reported years: $ 1,284 $ 1,668 $ 137 * As follows: Taxable in Israel $ 5,346 $ 6,145 $ 1,325 Taxable outside Israel 956 1,006 997 $ 6,302 $ 7,151 $ 2,322 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, the Company recognized a capital gain, which was offset against carryforward capital losses from previous years.

SUPPLEMENTARY BALANCE SHEET INF

SUPPLEMENTARY BALANCE SHEET INFORMATION	12 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation Of Financial Statements [Abstract]
Supplemental Balance Sheet Disclosures [Text Block]	a. Cash and cash equivalents: The balance as of December 31, 2015 and 2014 includes $ 6.8 3.7 0.36 b. Accounts receivable: 1) Trade: December 31, 2015 2014 U.S. dollars in thousands Open accounts $ 2,488 $ 2,595 Less - allowance for doubtful accounts * (245) - $ 2,243 $ 2,595 * The changes in allowance for doubtful accounts are composed as follows: Years ended December 31, 2015 2014 2013 U.S. dollars in thousands Balance at beginning of year $ - $ - $ 327 Increase (decrease) during the year 245 - - Bad debt written off - - (327) Balance at end of year $ 245 $ - $ - December 31, 2015 2014 U.S. dollars in thousands Government of Israel $ 19 $ - Employees 26 11 Sundry 168 223 $ 213 $ 234 December 31, 2015 2014 U.S. dollars in thousands Payroll and related expenses $ 964 $ 1,268 Government institutions 1,166 659 Accrued vacation pay 63 92 Accrued expenses and sundry 71 287 $ 2,264 $ 2,306

SELECTED STATEMENT OF OPERATION

SELECTED STATEMENT OF OPERATIONS DATA	12 Months Ended
	Dec. 31, 2015
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”. Years ended December 31, 2015 2014 2013 U.S. dollars in thousands Product line “A” $ 16,567 $ 20,990 $ 14,210 Product line “B” 4,361 4,030 4,270 $ 20,928 $ 25,020 $ 18,480 2) Following are data regarding geographical revenues classified by geographical location of the customers: Years ended December 31, 2015 2014 2013 U.S. dollars in thousands United States $ 11,292 $ 14,411 $ 11,809 United Kingdom 904 763 1,221 Rest of Europe 5,793 6,402 2,537 Israel 1,417 2,256 1,768 Other 1,522 1,188 1,145 $ 20,928 $ 25,020 $ 18,480 December 31 2015 2014 U.S. dollars in thousands Israel $ 182 $ 193 Romania 407 421 United States 2 4 $ 591 $ 618 Years ended December 31, 2015 2014 2013 U.S. dollars in thousands Payroll and related expenses $ 2,148 $ 3,614 $ 3,972 Rent and related expenses 321 367 378 Depreciation and amortization 72 114 133 Subcontracting 202 189 188 Other 200 255 359 $ 2,943 $ 4,539 $ 5,030 Years ended December 31, 2015 2014 2013 U.S. dollars in thousands Payroll and related expenses $ 949 $ 963 $ 1,459 Depreciation and amortization 4 3 8 Travel and conventions 123 79 108 Other 97 95 119 $ 1,173 $ 1,140 $ 1,694 Years ended December 31, 2015 2014 2013 U.S. dollars in thousands Payroll and related expenses $ 923 $ 1,298 $ 1,105 Depreciation and amortization 19 17 21 Insurances 55 65 60 Office expenses 68 99 102 Professional services 276 269 302 Allowance for doubtful accounts and bad debts 245 - - Other 180 186 136 $ 1,766 $ 1,934 $ 1,726 e. Financial income (expense) - net: Years ended December 31, 2015 2014 2013 U.S. dollars in thousands Income: Interest on bank deposits and short-term investments $ 54 $ 151 $ 97 Non-dollar currency gains - net - - 17 Income from marketable securities 102 148 33 Realized gain from sale of available-for-sale securities - 38 - Interest on available for sale securities 59 33 35 215 370 182 Expenses: Non-dollar currency losses - net (315) (663) - Bank commissions and charges (14) (13) (19) Realized loss on sale of available-for-sale securities - - (329) (676) (19) $ (114) $ (306) $ 163 f. Earnings per ordinary share (“EPS”): Years ended December 31, 2015 2014 2013 U.S. dollars in thousands Weighted average number of shares issued 19,183 18,949 18,869 Add - incremental shares from assumed exercise of options 100 83 21 Weighted average number of shares used in computation of diluted EPS 19,283 19,032 18,890 In the years ended December 31, 2015, 2014 and 2013, options that their effect was anti-dilutive, were not taken into account in computing the diluted EPS. The number of options that could potentially dilute EPS in the future and were not included in the computation of diluted EPS is 708,000 636,000 400,000

SIGNIFICANT ACCOUNTING POLICI17

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2015
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]	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]	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]	Principles of consolidation: 1) The consolidated financial statements include the accounts of the Company and all of its wholly-owned 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 AFS 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. % Computers and electronic equipment 15-33 (mainly 33) Office furniture and equipment 6-7 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 Accounting Standards Codification (“ASC”) 350, "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: The Company accounts for income taxes, in accordance with the provisions of ASC 740 ("Income Taxes,") under the liability method of accounting. Under the liability method, deferred taxes are determined based on the differences between the financial statement and tax basis of assets and liabilities at enacted tax rates in effect in the year in which the differences are expected to reverse. Valuation allowances are established, when necessary, to reduce deferred tax assets to amounts expected to be realized. Deferred tax liabilities and assets are classified as current or non-current based on the classification of the related asset or liability for financial reporting or, if not related to an asset or liability for financial reporting, according to the expected reversal dates of the specific temporary differences. For uncertain tax positions, the Company follows a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate resolution. The Company’s policy is to include interest and penalties related to unrecognized tax benefits within income tax expense.
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" and ASC 605-35, "Construction-Type and Production-Type Contracts", 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", 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. Share-based compensation: The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation - Stock Compensation", which requires the measurement and recognition of compensation expense based on estimated fair values for all 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 statements of operations. 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 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, 2015 and 2014 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 Financial Accounting Statndards Board (“FASB”) and the International Accounting Standards Board (“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). ASU 2014-09 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, ASU 2014-09 also requires significantly expanded disclosures about revenue recognition. On August 12, 2015, the FASB issued ASU 2015-14, which defers the effective date of the Board’s revenue standard, ASU 2014-09, by one year for all entities and permits early adoption on a limited basis. Specifically: • For public business entities, the standard is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2017. Early adoption is permitted as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within those annual periods. • For non-public entities, the standard is effective for annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. Non-public entities can also elect to early adopt the standard as of the following: - Annual reporting periods beginning after December 15, 2016, including interim periods. - Annual reporting periods beginning after December 15, 2016, and interim periods within annual reporting periods beginning one year after the annual reporting period in which the new standard is initially applied. On November 20, 2015, the FASB issued ASU 2015-17 as part of its simplification initiative (i.e., the Board’s effort to reduce the cost and complexity of certain aspects of U.S. GAAP). The ASU requires entities to present deferred tax assets (“DTAs”) and deferred tax liabilities (“DTLs”) as non-current in a classified balance sheet. It thus simplifies the current guidance, which requires entities to separately present DTAs and DTLs as current or non-current in a classified balance sheet. Netting of DTAs and DTLs by tax jurisdiction is still required under the new guidance. For public business entities, the amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. For all other entities, the amendments in this Update are effective for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period.

SIGNIFICANT ACCOUNTING POLICI18

SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2015
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 6-7 Vehicles 15

MARKETABLE SECURITIES (Tables)

MARKETABLE SECURITIES (Tables)	12 Months Ended
	Dec. 31, 2015
Available-For-Sale Securities [Abstract]
Schedule of Available-for-sale Securities Reconciliation [Table Text Block]	December 31 Maturity year 2015 2014 U.S. dollars in thousands Short-term (a): Municipal bond $ 4,446 $ 4,408 Corporate bond 705 630 $ 5,151 $ 5,038 Long-term - security bond (b) Perpetual $ 1,441 $ 1,574 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, 2015 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 security based on quoted prices in active markets for identical instruments (Level 1 as defined under ASC_820).

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2015
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 2015 2014 U.S. dollars in thousands Computers and electronic equipment $ 1,756 $ 1,621 Land 263 263 Office furniture and equipment 166 165 Vehicles 201 191 Leasehold improvements 8 8 2,394 2,248 Less - accumulated depreciation and amortization 1,803 1,630 $ 591 $ 618

EMPLOYEES' RIGHTS UPON RETIRE21

EMPLOYEES' RIGHTS UPON RETIREMENT (Tables)	12 Months Ended
	Dec. 31, 2015
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 2015 2014 U.S. dollars in thousands Accrued severance pay $ 1,786 $ 1,687 Less - amounts funded (presented in “Investment and other non-current assets”) (1,623) (1,597) Unfunded balance $ 163 $ 90

COMMITMENTS AND CONTINGENT LI22

COMMITMENTS AND CONTINGENT LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	Future minimum lease commitments of the Company and its subsidiaries under the above leases, at exchange rates in effect on December 31, 2015, are as follows: Years ending December 31: U.S. dollars in thousands 2016 $ 548 2017 539 2018 246 2019 46 $ 1,379

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2015
Equity [Abstract]
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	The following is a summary of the status of the 1998 Plan, 2000 plan and 2011 Share Incentive Plan as of December 31, 2015, 2014 and 2013, and changes during the years ended on those dates: 1) Years ended December 31 2015 2014 2013 Number Weighted Number Weighted Number Weighted Options outstanding at beginning of year 851,600 $ 2.63 460,000 $ 1.93 588,700 $ 1.87 Changes during year: Granted (a) 116,800 $ 1.66 666,000 $ 2.81 96,000 $ 2.16 Exercised (92,100) $ 1.85 (225,400) $ 1.88 (103,500) $ 0.70 Forfeited (166,000) $ 2.88 (49,000) $ 2.03 (36,000) $ 1.94 Expired - - - - (85,200) $ 3.24 Options outstanding at end of year 710,300 $ 2.51 851,600 $ 2.63 460,000 $ 1.93 Options exercisable at end of year 51,000 $ 1.98 43,600 $ 2.00 193,000 $ 1.95 Weighted average grant date fair value of options granted during the year (b) 0.94 $ 0.51 $ 0.41 (a) In the years ended December 31, 2015 and 2014 the options were granted with an exercise price equal to the average closing price per share of the Company’s ordinary 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 the year ended December 31, 2013 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) Years ended December 31 2015 2014 2013 Dividend yield 10 % 11 % 11 % Expected volatility* 48 % 44 % 49 % Average risk-free interest rate 1.5 % 1.5 % 0.8 % 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]	2) 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 2015 life price 2015 life price Years Years $ 0.003 – 1.939 118,800 2.74 $ 0.72 44,000 0.85 $ 1.94 $ 2.16 – 2.947 591,500 3.73 $ 2.87 7,000 1.74 $ 2.27 710,300 3.56 $ 2.51 51,000 0.97 $ 1.98

TAXES ON INCOME (Tables)

TAXES ON INCOME (Tables)	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Schedule Of Reduced Flat Tax Rate [Table Text Block]	Tax Year Development Other Areas 2011-2012 10% 15% 2013 7% 12.5% 2014 onwards 9% 16%
Summary of Income Tax Examinations [Table Text Block]	d. Deferred income taxes: December 31 2015 2014 U.S. dollars in thousands 1) Research and development expenses $ 54 $ 13 Carryforward tax losses 1,494 2,284 Other 187 182 Less- valuation allowance (1,494 ) (2,284 ) $ 241 $ 195
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]	1) As follows: Years ended December 31, 2015 2014 2013 U.S. dollars in thousands Current: In Israel $ 1,283 $ 1,473 $ 116 Outside Israel 99 94 71 1,382 1,567 187 Taxes in respect of previous years (52 ) - 107 Deferred taxes in Israel (46 ) 101 (157 ) $ 1,284 $ 1,668 $ 137
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	2) Years ended December 31, 2015 2014 2013 U.S. dollars in thousands Income before taxes on income, as reported in the statements of operations* $ 6,302 $ 7,151 $ 2,322 Theoretical tax expense 1,670 1,895 581 Less - tax benefits arising from approved enterprise status, see a. above (271 ) (401 ) (60 ) 1,399 1,494 521 Increase (decrease) in taxes resulting from permanent differences: Disallowable deductions 42 22 60 Taxes in respect of previous years (52 ) - 107 Changes in valuation allowance (747 ) 62 243 Changes in taxes resulting from computation of deferred taxes at a rate which is different from the theoretical rate and other 642 90 (794 ) Taxes on income for the reported years: $ 1,284 $ 1,668 $ 137 * As follows: Taxable in Israel $ 5,346 $ 6,145 $ 1,325 Taxable outside Israel 956 1,006 997 $ 6,302 $ 7,151 $ 2,322

SUPPLEMENTARY BALANCE SHEET I25

SUPPLEMENTARY BALANCE SHEET INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation Of Financial Statements [Abstract]
Schedule Of Accounts Receivable [Table Text Block]	1) Trade: December 31, 2015 2014 U.S. dollars in thousands Open accounts $ 2,488 $ 2,595 Less - allowance for doubtful accounts * (245) - $ 2,243 $ 2,595 * The changes in allowance for doubtful accounts are composed as follows: Years ended December 31, 2015 2014 2013 U.S. dollars in thousands Balance at beginning of year $ - $ - $ 327 Increase (decrease) during the year 245 - - Bad debt written off - - (327) Balance at end of year $ 245 $ - $ -
Schedule Of Non Trade Receivables [Table Text Block]	2) Other: December 31, 2015 2014 U.S. dollars in thousands Government of Israel $ 19 $ - Employees 26 11 Sundry 168 223 $ 213 $ 234
Schedule Of Other Accounts Payable and Accrued Liabilities [Table Text Block]	c. Accounts payable and accruals - other: December 31, 2015 2014 U.S. dollars in thousands Payroll and related expenses $ 964 $ 1,268 Government institutions 1,166 659 Accrued vacation pay 63 92 Accrued expenses and sundry 71 287 $ 2,264 $ 2,306

SELECTED STATEMENT OF OPERATI26

SELECTED STATEMENT OF OPERATIONS DATA (Tables)	12 Months Ended
	Dec. 31, 2015
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, 2015 2014 2013 U.S. dollars in thousands Product line “A” $ 16,567 $ 20,990 $ 14,210 Product line “B” 4,361 4,030 4,270 $ 20,928 $ 25,020 $ 18,480
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, 2015 2014 2013 U.S. dollars in thousands United States $ 11,292 $ 14,411 $ 11,809 United Kingdom 904 763 1,221 Rest of Europe 5,793 6,402 2,537 Israel 1,417 2,256 1,768 Other 1,522 1,188 1,145 $ 20,928 $ 25,020 $ 18,480
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 2015 2014 U.S. dollars in thousands Israel $ 182 $ 193 Romania 407 421 United States 2 4 $ 591 $ 618
Schedule Of Research and Development Expense [Table Text Block]	b. Research and development expenses: Years ended December 31, 2015 2014 2013 U.S. dollars in thousands Payroll and related expenses $ 2,148 $ 3,614 $ 3,972 Rent and related expenses 321 367 378 Depreciation and amortization 72 114 133 Subcontracting 202 189 188 Other 200 255 359 $ 2,943 $ 4,539 $ 5,030
Schedule Of Selling and Marketing Expenses [Table Text Block]	c. Selling and marketing expenses: Years ended December 31, 2015 2014 2013 U.S. dollars in thousands Payroll and related expenses $ 949 $ 963 $ 1,459 Depreciation and amortization 4 3 8 Travel and conventions 123 79 108 Other 97 95 119 $ 1,173 $ 1,140 $ 1,694
Schedule Of General and Administrative Expenses [Table Text Block]	d. General and administrative expenses: Years ended December 31, 2015 2014 2013 U.S. dollars in thousands Payroll and related expenses $ 923 $ 1,298 $ 1,105 Depreciation and amortization 19 17 21 Insurances 55 65 60 Office expenses 68 99 102 Professional services 276 269 302 Allowance for doubtful accounts and bad debts 245 - - Other 180 186 136 $ 1,766 $ 1,934 $ 1,726
Schedule of Other Nonoperating Income (Expense) [Table Text Block]	e. Financial income (expense) - net: Years ended December 31, 2015 2014 2013 U.S. dollars in thousands Income: Interest on bank deposits and short-term investments $ 54 $ 151 $ 97 Non-dollar currency gains - net - - 17 Income from marketable securities 102 148 33 Realized gain from sale of available-for-sale securities - 38 - Interest on available for sale securities 59 33 35 215 370 182 Expenses: Non-dollar currency losses - net (315) (663) - Bank commissions and charges (14) (13) (19) Realized loss on sale of available-for-sale securities - - (329) (676) (19) $ (114) $ (306) $ 163
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, 2015 2014 2013 U.S. dollars in thousands Weighted average number of shares issued 19,183 18,949 18,869 Add - incremental shares from assumed exercise of options 100 83 21 Weighted average number of shares used in computation of diluted EPS 19,283 19,032 18,890

SIGNIFICANT ACCOUNTING POLICI27

SIGNIFICANT ACCOUNTING POLICIES (Details)	12 Months Ended
	Dec. 31, 2015
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 ($) $ in Thousands		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Long-term - security bond Maturity year	[1]	Perpetual
Short-term - security bond	[2]	$ 5,151	$ 5,038
Long-term - security bond	[1]	1,441	1,574
Municipal bond [Member]
Schedule of Available-for-sale Securities [Line Items]
Short-term - security bond	[2]	4,446	4,408
Corporate bond [Member]
Schedule of Available-for-sale Securities [Line Items]
Short-term - security bond	[2]	$ 705	$ 630
[1]	As of December 31, 2015 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 security based on quoted prices in active markets for identical instruments (Level 1 as defined under ASC_820).
[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 ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 2,394	$ 2,248
Less - accumulated depreciation and amortization	1,803	1,630
Property Plant And Equipment Net	591	618
Computers and electronic equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	1,756	1,621
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	166	165
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	201	191
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 8	$ 8

PROPERTY AND EQUIPMENT (Detai30

PROPERTY AND EQUIPMENT (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Line Items]
Depreciation, Depletion and Amortization	$ 173	$ 233	$ 250

EMPLOYEES' RIGHTS UPON RETIRE31

EMPLOYEES' RIGHTS UPON RETIREMENT (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Employees Rights Upon Retirement [Line Items]
Accrued severance pay	$ 1,786	$ 1,687
Less - amounts funded (presented in “Investment and other non-current assets”)	(1,623)	(1,597)
Unfunded balance	$ 163	$ 90

EMPLOYEES' RIGHTS UPON RETIRE32

EMPLOYEES' RIGHTS UPON RETIREMENT (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Employees Rights Upon Retirement [Line Items]
Severance Costs	$ 105	$ 68	$ 77
Employee Severance [Member]
Employees Rights Upon Retirement [Line Items]
Severance Costs	$ 271	$ 181	$ 139

COMMITMENTS AND CONTINGENT LI33

COMMITMENTS AND CONTINGENT LIABILITIES (Details) $ in Thousands	Dec. 31, 2015USD ($)
Gain Contingencies [Line Items]
2,016	$ 548
2,017	539
2,018	246
2,019	46
Operating Leases, Future Minimum Payments Due	$ 1,379

COMMITMENTS AND CONTINGENT LI34

COMMITMENTS AND CONTINGENT LIABILITIES (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Gain Contingencies [Line Items]
Operating Leases, Rent Expense, Contingent Rentals	$ 529	$ 603	$ 581
Contingent Liabilities	$ 40

SHAREHOLDERS' EQUITY (Details)

SHAREHOLDERS' EQUITY (Details) - Common Stock [Member] - $ / shares		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options, outstanding at beginning of year (in shares)		851,600	460,000	588,700
Number of options, granted (in shares)	[1]	116,800	666,000	96,000
Number of options, exercised (in shares)		(92,000)	(225,000)	(104,000)
Number of options, forfeited (in shares)		(166,000)	(49,000)	(36,000)
Number of options, expired (in shares)		0	0	(85,200)
Number of options, outstanding at end of year (in shares)		710,300	851,600	460,000
Number of options, exercisable at end of year (in shares)		51,000	43,600	193,000
Weighted average exercise price, options outstanding at beginning of year		$ 2.63	$ 1.93	$ 1.87
Weighted average exercise price, options granted	[1]	1.66	2.81	2.16
Weighted average exercise price, options exercised		1.85	1.88	0.7
Weighted average exercise price, options forfeited		2.88	2.03	1.94
Weighted average exercise price, options expired		0	0	3.24
Weighted average exercise price, options options outstanding at end of year		2.51	2.63	1.93
Weighted average exercise price, options exercisable at end of year		1.98	2	1.95
Weighted average grant date fair value of options granted during the year	[2]	$ 0.94	$ 0.51	$ 0.41
[1]	In the years ended December 31, 2015 and 2014 the options were granted with an exercise price equal to the average closing price per share of the Company’s ordinary 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:

SHAREHOLDERS' EQUITY (Details 1

SHAREHOLDERS' EQUITY (Details 1)		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield		10.00%	11.00%	11.00%
Expected volatility	[1]	48.00%	44.00%	49.00%
Average risk-free interest rate		1.50%	1.50%	0.80%
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)	12 Months Ended
	Dec. 31, 2015$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of options, outstanding at December 31, 2015 (in shares) | shares	710,300
Outstanding options, weighted average remaining contractual Life (Years)	3 years 6 months 22 days
Outstanding options, weighted average exercise price	$ 2.51
Number of options, exercisable at December 31, 2015 (in shares) | shares	51,000
Exercisable options, weighted average remaining contractual Life (Years)	11 months 19 days
Exercisable options, weighted average exercise price	$ 1.98
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)	0.003
Range of exercise prices (Upper Range Limit)	$ 1.939
Number of options, outstanding at December 31, 2015 (in shares) | shares	118,800
Outstanding options, weighted average remaining contractual Life (Years)	2 years 8 months 26 days
Outstanding options, weighted average exercise price	$ 0.72
Number of options, exercisable at December 31, 2015 (in shares) | shares	44,000
Exercisable options, weighted average remaining contractual Life (Years)	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)	2.16
Range of exercise prices (Upper Range Limit)	$ 2.947
Number of options, outstanding at December 31, 2015 (in shares) | shares	591,500
Outstanding options, weighted average remaining contractual Life (Years)	3 years 8 months 23 days
Outstanding options, weighted average exercise price	$ 2.87
Number of options, exercisable at December 31, 2015 (in shares) | shares	7,000
Exercisable options, weighted average remaining contractual Life (Years)	1 year 8 months 26 days
Exercisable options, weighted average exercise price	$ 2.27

SHAREHOLDERS' EQUITY (Details T

SHAREHOLDERS' EQUITY (Details Textual) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)$ / sharesshares	Dec. 31, 2014USD ($)$ / shares	Dec. 31, 2013USD ($)$ / shares	Dec. 31, 2009USD ($)shares	Dec. 31, 2011₪ / sharesshares	Dec. 31, 2010₪ / sharesshares
Class of Stock [Line Items]
Stock Repurchased and Retired During Period, Shares (in shares) | shares				3,165,092
Stock Repurchased and Retired During Period, Value				$ 2,800
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share) | $ / shares	$ 0.30	$ 0.24	$ 0.24
Dividend paid	$ 5,758	$ 4,544	$ 4,532
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | shares						4,306,000
Share-Based Compensation Arrangement By Share-Based Payment Award, Par Value (in dollars per share) | ₪ / shares						₪ 0.01
Allocated Share-based Compensation Expense	138	72	58
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized	$ 225
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition	1 year 5 months 16 days
Proceeds From Stock Options Exercised	$ 171	424	73
Treasury Stock, Shares | shares	2,457,592
Treasury Stock, Value	$ 1,692	1,863
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	176	$ 322	$ 165
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	231
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value	$ 28
Minimum [Member]
Class of Stock [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	5 years
Maximum [Member]
Class of Stock [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	5 years
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	7 years
Share Incentive Plan [Member]
Class of Stock [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | shares					1,800,000
Share-Based Compensation Arrangement By Share-Based Payment Award, Par Value (in dollars per share) | ₪ / shares					₪ 0.01

TAXES ON INCOME (Details)

TAXES ON INCOME (Details)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
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 ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Income Tax Expenses Benefit [Line Items]
Research and development expenses	$ 54	$ 13
Carryforward tax losses	1,494	2,284
Other	187	182
Less- valuation allowance	(1,494)	(2,284)
Deferred Tax Assets, Net	$ 241	$ 195

TAXES ON INCOME (Details 2)

TAXES ON INCOME (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Expenses Benefit [Line Items]
Current Income Tax Expense (Benefit)	$ 1,382	$ 1,567	$ 187
Taxes in respect of previous years	(52)	0	107
Deferred taxes in Israel	(46)	101	(157)
Income Tax Expense (Benefit)	1,284	1,668	137
In Israel [Member]
Income Tax Expenses Benefit [Line Items]
Current State And Local Tax Expense Benefit	1,283	1,473	116
Outside Israel [Member]
Income Tax Expenses Benefit [Line Items]
Current Foreign Tax Expense Benefit	$ 99	$ 94	$ 71

TAXES ON INCOME (Details 3)

TAXES ON INCOME (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Expenses Benefit [Line Items]
Income before taxes on income, as reported in the statements of operations*	$ 6,302	$ 7,151	$ 2,322
Theoretical tax expense	1,670	1,895	581
Less - tax benefits arising from approved enterprise status, see a. above	(271)	(401)	(60)
Theoretical Tax Expense Net of Tax Benefits	1,399	1,494	521
Increase (decrease) in taxes resulting from permanent differences:
Disallowable deductions	42	22	60
Taxes in respect of previous years	(52)	0	107
Changes in valuation allowance	(747)	62	243
Changes in taxes resulting from computation of deferred taxes at a rate which is different from the theoretical rate and other	642	90	(794)
Taxes on income for the reported years:	1,284	1,668	137
* As follows:
Taxable in Israel	5,346	6,145	1,325
Taxable outside Israel	956	1,006	997
Income before taxes on income	$ 6,302	$ 7,151	$ 2,322

TAXES ON INCOME (Details Textua

TAXES ON INCOME (Details Textual) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jul. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2011
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		$ 4,600
MIND Software Limited [Member]
Income Tax Expenses Benefit [Line Items]
Proceeds from Sale of Productive Assets	$ 3,880
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%	26.50%
January 1, 2016 [Member]
Income Tax Expenses Benefit [Line Items]
Effective Income Tax Rate, Continuing Operations		25.00%
January 5, 2016 [Member]
Income Tax Expenses Benefit [Line Items]
Effective Income Tax Rate, Continuing Operations		26.50%	25.00%
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 I44

SUPPLEMENTARY BALANCE SHEET INFORMATION (Details) - USD ($) $ in Thousands	Dec. 31, 2015		Dec. 31, 2014		Dec. 31, 2013	Dec. 31, 2012
Trade:
Open accounts	$ 2,488		$ 2,595
Less - allowance for doubtful accounts	(245)	[1]	0	[1]	$ 0	$ (327)
Trade	$ 2,243		$ 2,595
[1]	The changes in allowance for doubtful accounts are composed as follows:

SUPPLEMENTARY BALANCE SHEET I45

SUPPLEMENTARY BALANCE SHEET INFORMATION (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015		Dec. 31, 2014		Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance at beginning of year	$ 0	[1]	$ 0		$ 327
Increase (decrease) during the year	245		0		0
Bad debt written off	0		0		(327)
Balance at end of year	$ 245	[1]	$ 0	[1]	$ 0
[1]	The changes in allowance for doubtful accounts are composed as follows:

SUPPLEMENTARY BALANCE SHEET I46

SUPPLEMENTARY BALANCE SHEET INFORMATION (Details 2) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Other:
Nontrade Receivables, Current	$ 213	$ 234
Government of Israel [Member]
Other:
Nontrade Receivables, Current	19	0
Employees [Member]
Other:
Nontrade Receivables, Current	26	11
Sundry [Member]
Other:
Nontrade Receivables, Current	$ 168	$ 223

SUPPLEMENTARY BALANCE SHEET I47

SUPPLEMENTARY BALANCE SHEET INFORMATION (Details 3) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Accounts payable and accruals - other:
Payroll and related expenses	$ 964	$ 1,268
Government institutions	1,166	659
Accrued vacation pay	63	92
Accrued expenses and sundry	71	287
Accounts payable and accruals - other	$ 2,264	$ 2,306

SUPPLEMENTARY BALANCE SHEET I48

SUPPLEMENTARY BALANCE SHEET INFORMATION (Details Textual) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cash Equivalents, at Carrying Value	$ 6.8	$ 3.7
Weighted Average Annual Interest Rate On Bank Deposits	0.36%

SELECTED STATEMENT OF OPERATI49

SELECTED STATEMENT OF OPERATIONS DATA (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues, Total	$ 20,928	$ 25,020	$ 18,480
Product Line A [Member]
Revenues, Total	16,567	20,990	14,210
Product Line B [Member]
Revenues, Total	$ 4,361	$ 4,030	$ 4,270

SELECTED STATEMENT OF OPERATI50

SELECTED STATEMENT OF OPERATIONS DATA (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues, Total	$ 20,928	$ 25,020	$ 18,480
United States
Revenues, Total	11,292	14,411	11,809
United Kingdom
Revenues, Total	904	763	1,221
Rest of Europe
Revenues, Total	5,793	6,402	2,537
Israel
Revenues, Total	1,417	2,256	1,768
Other
Revenues, Total	$ 1,522	$ 1,188	$ 1,145

SELECTED STATEMENT OF OPERATI51

SELECTED STATEMENT OF OPERATIONS DATA (Details 2) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Property Plant And Equipment Net	$ 591	$ 618
Israel
Property, Plant and Equipment [Line Items]
Property Plant And Equipment Net	182	193
Romania
Property, Plant and Equipment [Line Items]
Property Plant And Equipment Net	407	421
United States
Property, Plant and Equipment [Line Items]
Property Plant And Equipment Net	$ 2	$ 4

SELECTED STATEMENT OF OPERATI52

SELECTED STATEMENT OF OPERATIONS DATA (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Research and development expenses:
Research and development expenses	$ 2,943	$ 4,539	$ 5,030
Research and Development Expense [Member]
Research and development expenses:
Payroll and related expenses	2,148	3,614	3,972
Rent and related expenses	321	367	378
Depreciation and amortization	72	114	133
Subcontracting	202	189	188
Other	$ 200	$ 255	$ 359

SELECTED STATEMENT OF OPERATI53

SELECTED STATEMENT OF OPERATIONS DATA (Details 4) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Selling and marketing expenses:
Selling and marketing expenses	$ 1,173	$ 1,140	$ 1,694
Selling and Marketing Expense [Member]
Selling and marketing expenses:
Payroll and related expenses	949	963	1,459
Depreciation and amortization	4	3	8
Travel and conventions	123	79	108
Other	$ 97	$ 95	$ 119

SELECTED STATEMENT OF OPERATI54

SELECTED STATEMENT OF OPERATIONS DATA (Details 5) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
General and administrative expenses:
General and administrative expenses	$ 1,766	$ 1,934	$ 1,726
General and Administrative Expense [Member]
General and administrative expenses:
Payroll and related expenses	923	1,298	1,105
Depreciation and amortization	19	17	21
Insurances	55	65	60
Office expenses	68	99	102
Professional services	276	269	302
Allowance for doubtful accounts and bad debts	245	0	0
Other	$ 180	$ 186	$ 136

SELECTED STATEMENT OF OPERATI55

SELECTED STATEMENT OF OPERATIONS DATA (Details 6) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income:
Interest on bank deposits and short-term investments	$ 54	$ 151	$ 97
Non-dollar currency gains - net	0	0	17
Income from Marketable securities	102	148	33
Realized gain from sale of available-for-sale securities	0	38	0
Interest on available for sale securities	59	33	35
Other Nonoperating Income	215	370	182
Expenses:
Non-dollar currency losses - net	(315)	(663)	0
Bank commissions and charges	(14)	(13)	(19)
Realized loss on sale of available for sale securities		0	0
Other Nonoperating Expense	(329)	(676)	(19)
Financial income (expense) - net	$ (114)	$ (306)	$ 163

SELECTED STATEMENT OF OPERATI56

SELECTED STATEMENT OF OPERATIONS DATA (Details 7) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Earnings per ordinary share (“EPS”):
Weighted average number of shares issued and outstanding - used in computation of basic EPS	19,183	18,949	18,869
Add - incremental shares from assumed exercise of options	100	83	21
Weighted average number of shares used in computation of diluted EPS	19,283	19,032	18,890

SELECTED STATEMENT OF OPERATI57

SELECTED STATEMENT OF OPERATIONS DATA (Details Textual) - shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
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)	708,000	636,000	400,000