Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2015shares | |
Document And Entity Information [Abstract] | |
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 Registrant Name | CERAGON NETWORKS LTD |
Entity Central Index Key | 1,119,769 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 77,636,864 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 36,318 | $ 41,423 |
Short-term bank deposits | 413 | |
Marketable securities | 535 | |
Trade receivables (net of allowance for doubtful accounts of $ 8,404 and $ 12,229 at December 31, 2014 and 2015, respectively) | $ 116,683 | 162,626 |
Other accounts receivable and prepaid expenses | 22,583 | 22,898 |
Deferred tax assets, net | 1,633 | 3,522 |
Inventories | 49,690 | 61,830 |
Total current assets | 226,907 | 293,247 |
NON-CURRENT ASSETS: | ||
Deferred tax assets, net | 189 | 239 |
Severance pay and pension fund | 4,681 | 5,669 |
Other non-current assets | 1,457 | 4,510 |
PROPERTY AND EQUIPMENT, NET | 28,906 | 33,138 |
INTANGIBLE ASSETS, NET | 3,192 | 5,070 |
Total long-term assets | 38,425 | 48,626 |
Total assets | 265,332 | 341,873 |
CURRENT LIABILITIES: | ||
Short-term loans | $ 34,922 | 40,600 |
Current maturities of long-term loan | 8,232 | |
Trade payables | $ 71,721 | 101,752 |
Deferred revenues | 8,901 | 17,667 |
Other accounts payable and accrued expenses | 27,052 | 37,248 |
Total current liabilities | 142,596 | 205,499 |
LONG-TERM LIABILITIES: | ||
Long-term loan, net of current maturities | 2,072 | |
Accrued severance pay and pensions | 9,276 | 11,452 |
Other long-term liabilities | 10,639 | 18,298 |
Total long-term liabilities | $ 19,915 | $ 31,822 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
SHAREHOLDERS' EQUITY: | ||
Share capital - Ordinary shares of NIS 0.01 par value - Authorized: 120,000,000 shares at December 31, 2014 and 2015; Issued: 80,612,389 and 81,118,387 shares at December 31, 2014 and 2015, respectively; Outstanding: 77,130,866 and 77,636,864 shares at December 31, 2014 and 2015, respectively | $ 214 | $ 212 |
Additional paid-in capital | 408,174 | 406,413 |
Treasury shares at cost - 3,481,523 ordinary shares as of December 31, 2014 and 2015. | (20,091) | (20,091) |
Accumulated other comprehensive loss | (8,616) | (4,111) |
Accumulated deficit | (276,860) | (277,871) |
Total shareholders' equity | 102,821 | 104,552 |
Total liabilities and shareholders' equity | $ 265,332 | $ 341,873 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowance for doubtful accounts | $ 8,404 | $ 12,229 |
Ordinary shares, par value | $ 0.01 | $ 0.01 |
Ordinary shares, shares authorized | 120,000,000 | 120,000,000 |
Ordinary shares, shares issued | 81,118,387 | 80,612,389 |
Ordinary shares, shares outstanding | 77,636,864 | 77,130,866 |
Treasury stock, ordinary shares | 3,481,523 | 3,481,523 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Income Statement [Abstract] | ||||
Revenues | $ 349,435 | $ 371,112 | $ 361,772 | |
Cost of revenues | 246,487 | 286,670 | 249,543 | |
Gross profit | 102,948 | 84,442 | 112,229 | |
Operating expenses: | ||||
Research and development, net | 22,930 | 35,004 | 42,962 | |
Selling and marketing | 40,816 | 56,059 | 67,743 | |
General and administrative | 21,235 | 23,657 | 26,757 | |
Restructuring costs | $ 1,225 | 6,816 | $ 9,345 | |
Goodwill impairment | 14,765 | [1] | ||
Other income | $ (4,849) | (19,827) | $ (7,657) | |
Total operating expenses | 81,357 | 116,474 | 139,150 | |
Operating income (loss) | 21,591 | (32,032) | (26,921) | |
Financial expenses, net | 14,738 | 37,946 | 14,018 | |
Income (loss) before taxes on income | 6,853 | (69,978) | (40,939) | |
Taxes on income | 5,842 | 6,501 | 6,539 | |
Net income (loss) | $ 1,011 | $ (76,479) | $ (47,478) | |
Net Income (loss) per share: | ||||
Basic net income (loss) per share | $ 0.01 | $ (1.22) | $ (1.23) | |
Diluted net income (loss) per share | $ 0.01 | $ (1.22) | $ (1.23) | |
Weighted average number of ordinary shares used in computing basic net income (loss) per share | 77,239,409 | 62,518,602 | 38,519,606 | |
Weighted average number of ordinary shares used in computing diluted net income (loss) per share | 77,296,681 | 62,518,602 | 38,519,606 | |
[1] | During the fourth quarter of 2014, the Company determined that sufficient indicators of potential impairment existed to require additional goodwill impairment analysis. These indicators included the trading value of the Company's stock at the time of the impairment test, coupled with existing market conditions and business trends. Based on the step one and step two analyses (see also note 2l), the Company recorded complete goodwill impairment charge in 2014, in the amount of $ 14,765. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 1,011 | $ (76,479) | $ (47,478) |
Other comprehensive loss: | |||
Change in foreign currency translation adjustment | 4,149 | 1,853 | 1,311 |
Available-for-sale investments: | |||
Change in net unrealized (gains) losses | 423 | (260) | (223) |
Reclassification adjustment for net (gains) losses included in net income | (330) | 735 | 97 |
Net change | 93 | 475 | (126) |
Cash flow hedges: | |||
Change in net unrealized (gains) losses | 153 | 709 | (1,295) |
Reclassification adjustment for net (gains) losses included in net income | 110 | (495) | 1,189 |
Net change | 263 | 214 | (106) |
Other comprehensive loss, net | 4,505 | 2,542 | 1,079 |
Total of comprehensive loss | $ 3,494 | $ 79,021 | $ 48,557 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional paid-in Capital [Member] | Treasury shares at cost [Member] | Accumulated other comprehensive loss [Member] | Accumulated deficit [Member] | Total |
Balance at Dec. 31, 2012 | $ 98 | $ 318,106 | $ (20,091) | $ (490) | $ (153,914) | $ 143,709 |
Balance, shares at Dec. 31, 2012 | 36,565,168 | |||||
Exercise of options and RSU's | 1,145 | 1,145 | ||||
Exercise of options and RSU's, shares | 292,000 | |||||
Issuance of shares, net of issuance expenses | $ 43 | 34,916 | 34,959 | |||
Issuance of shares, shares | 15,600,000 | |||||
Share-based compensation expense | 3,822 | 3,822 | ||||
Other comprehensive loss, net | (1,079) | (1,079) | ||||
Net loss | (47,478) | (47,478) | ||||
Balance at Dec. 31, 2013 | $ 141 | 357,989 | (20,091) | (1,569) | (201,392) | 135,078 |
Balance, shares at Dec. 31, 2013 | 52,457,168 | |||||
Exercise of options and RSU's | $ 1 | 1 | ||||
Exercise of options and RSU's, shares | 573,698 | |||||
Issuance of shares, net of issuance expenses | $ 70 | 45,079 | 45,149 | |||
Issuance of shares, shares | 24,100,000 | |||||
Share-based compensation expense | 3,345 | 3,345 | ||||
Other comprehensive loss, net | (2,542) | (2,542) | ||||
Net loss | (76,479) | (76,479) | ||||
Balance at Dec. 31, 2014 | $ 212 | 406,413 | (20,091) | (4,111) | (277,871) | $ 104,552 |
Balance, shares at Dec. 31, 2014 | 77,130,866 | 77,130,866 | ||||
Exercise of options and RSU's | $ 2 | 136 | $ 138 | |||
Exercise of options and RSU's, shares | 505,998 | 125,000 | ||||
Issuance of shares, net of issuance expenses | $ 73,500 | |||||
Share-based compensation expense | 1,625 | 1,625 | ||||
Other comprehensive loss, net | (4,505) | (4,505) | ||||
Net loss | 1,011 | 1,011 | ||||
Balance at Dec. 31, 2015 | $ 214 | $ 408,174 | $ (20,091) | $ (8,616) | $ (276,860) | $ 102,821 |
Balance, shares at Dec. 31, 2015 | 77,636,864 | 77,636,864 |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||
Issuance expenses | $ 400 | $ 361 |
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 (loss) | $ 1,011 | $ (76,479) | $ (47,478) | |
Adjustments required to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 12,203 | 13,498 | 15,645 | |
Share-based compensation expense | $ 1,625 | 3,345 | 3,822 | |
Impairment of long-lived assets | 2,367 | $ 2,559 | ||
Impairment of goodwill | 14,765 | [1] | ||
Other than temporary impairment and loss from sale of marketable securities | $ 330 | 3,471 | $ 2,108 | |
Accrued severance pay and pensions, net | $ (1,188) | $ (787) | 1,422 | |
Accrued interest and amortization of premium on marketable securities | (40) | |||
Decrease (increase) in trade receivables, net | $ 39,545 | $ (33,876) | 15,505 | |
Decrease in other accounts receivable and prepaid expenses | 626 | 11,283 | 2,767 | |
Decrease in inventories | 10,240 | 1,792 | 401 | |
Increase (decrease) in trade payables | (30,361) | 25,155 | (24,067) | |
Increase (decrease) in deferred revenues | (8,766) | 9,699 | (8,751) | |
Decrease in deferred tax asset, net | 1,975 | 9,788 | 3,572 | |
Increase (decrease) in other accounts payable and accrued expenses (including other long term liabilities) | (11,119) | (16,300) | 3,023 | |
Net cash provided by (used in) operating activities | 16,121 | (32,279) | (29,512) | |
Cash flows from investing activities: | ||||
Purchase of property and equipment | (5,266) | (12,691) | (16,423) | |
Investment in short-term bank deposits | (19) | (36) | (679) | |
Proceeds from maturities of short-term bank deposits | $ 432 | $ 69 | 635 | |
Investment in marketable securities | (7,867) | |||
Proceeds from sale of marketable securities | $ 122 | $ 5,161 | 513 | |
Net cash used in investing activities | (4,731) | (7,497) | (23,821) | |
Cash flows from financing activities: | ||||
Proceeds and loans from financial institutions | 4,200 | 22,691 | 23,690 | |
Repayment of bank loan | (20,182) | (29,012) | (10,234) | |
Proceeds from issuance of shares, net | $ 45,149 | 34,959 | ||
Proceeds from exercise of options | 138 | 1,145 | ||
Net cash provided by (used in) financing activities | (15,844) | $ 38,828 | 49,560 | |
Effect of exchange rate changes on cash | (651) | (36) | (919) | |
Decrease in cash and cash equivalents | (5,105) | (984) | (4,692) | |
Cash and cash equivalents at the beginning of the year | 41,423 | 42,407 | 47,099 | |
Cash and cash equivalents at the end of the year | 36,318 | 41,423 | 42,407 | |
Supplemental disclosure of cash flow information: | ||||
Cash paid during the year for income taxes | 1,509 | 2,572 | 1,778 | |
Cash paid during the year for interest | $ 2,820 | $ 3,541 | $ 2,597 | |
[1] | During the fourth quarter of 2014, the Company determined that sufficient indicators of potential impairment existed to require additional goodwill impairment analysis. These indicators included the trading value of the Company's stock at the time of the impairment test, coupled with existing market conditions and business trends. Based on the step one and step two analyses (see also note 2l), the Company recorded complete goodwill impairment charge in 2014, in the amount of $ 14,765. |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | NOTE 1:- GENERAL a. Ceragon Networks Ltd. ("the Company") is a wireless backhaul specialist. It provides wireless backhaul solutions that enable cellular operators and other wireless service providers to deliver voice and data services, enabling smart-phone applications such as internet browsing, social networking applications, image sharing, music and video applications. Its wireless backhaul solutions use microwave radio technology to transfer large amounts of telecommunication traffic between base stations and small-cells and the core of the service provider's network. The Company also provides wireless fronthaul solutions that use microwave technology for ultra-high speed, ultra-low latency communication between LTE/LTE-Advanced base band digital units stations and remote radio heads. The Company's solutions support all wireless access technologies, including LTE-Advanced, LTE, HSPA, EV-DO, CDMA, W-CDMA and GSM. The Company's systems also serve evolving network architectures including all-IP long haul networks. The Company sells its products through a direct sales force, systems integrators, distributors and original equipment manufacturers. The Company has forty one wholly-owned subsidiaries worldwide. The subsidiaries provide research and development, marketing, manufacturing, distribution, sales and technical support to the Company's customers worldwide. As to principal markets and major customers, see notes 16b and 16c. b. Acquisitions: On January 19, 2011 ("Acquisition Date"), the Company completed the purchase of all the share capital of Nera Networks AS (now called Ceragon Networks AS) and its subsidiaries (the "Nera") from Eltek ASA, pursuant to a Share Purchase Agreement dated January 19, 2011. The consideration for all of the shares of Nera was $ 57,175. January 19, 2011 was considered to be the Acquisition Date, as control was obtained, assets were received and liabilities assumed. Eltek ASA undertook not to compete with the Company for a period of five years. In April 2014, the Company signed an agreement with Eltek ASA, to settle all claims, counter claims, legal proceedings, and any other contingent or potential claims regarding alleged breaches of representations and warranties contained in the purchase agreement governing the Nera Acquisition from Eltek in January 2011. In May 2014, the Company received $ 16,800 in cash, net of associated legal expenses and recorded as part of other income in the consolidated statements of operations. c. Cost reduction plans: 2013 Plan: During the fourth quarter of 2013, the Company initiated a restructuring plan to reduce its operating cost and improve its efficiency, mainly by realigning teams on enhancing the newly released IP-20 platform, consolidating or relocating certain offices and reducing staff functions and some operations positions, as well as other measures. The restructuring expenses include mainly severance and other compensation related expenses associated with the termination of employment under a restructuring plan and facilities related expenses for office closing and consolidations. The total restructuring costs in 2013 and 2014 associated with exiting activities of the Company were $ 9,345 and $ 978, respectively, recorded in operating expenses, as restructuring costs. As of December 31, 2014, the total liability balance for the restructuring plan was $ 501, respectively, mainly due to facilities related expenses and termination of employment expenses. As of December 31, 2015, the Company does not expect any future obligations in relation to the 2013 Plan. 2014 Plan: During the fourth quarter of 2014, the Company initiated another restructuring plan to reduce its operating cost and improve its efficiency, mainly by relocating certain offices and reducing staff functions and some operations positions, as well as other measures. The restructuring expenses include mainly post termination benefits, write-off of property and equipment that is related to activities that were terminated and facilities related expenses for warehouse and office closing and relocations. The total restructuring costs in 2014 and 2015 associated with exiting activities of the Company were $ 5,838 and $ 1,225, respectively, recorded in operating expenses, as restructuring costs. As of December 31, 2014 and 2015, the total liability balance for the restructuring plan was $ 2,427 and $ 52, respectively. d. Liquidity and Capital Resources: During the year ended December 31, 2015, the Company incurred net profit of $1,011 and had positive cash flow from operating activities in the amount of $ 16,121. As of December 31, 2015, the Company had $ 36,318 in cash and cash equivalents and short term bank deposits. The outstanding cash and cash equivalents includes $ 1,039 located in Venezuela, subject to regulated foreign currency exchange which impairs the availability of that cash outside of the country The Company's management addressed its liquidity matters with the following initiatives: In August 2014, the Company completed a public offering of its shares on NASDAQ. Total net proceeds from the issuance amounted to approximately $45,149 (see also note 14b). In December 2014, the Company announced that it will realign its operations, reduce headcount and undertake other cost reduction measures in order to improve profitability (see also note 1c). In March 2013, the Company entered into a syndicated credit agreement (the “Credit Facility”) with four financial institutions. Such agreement provides the Company with revolving credit facilities in the form of loans and bank guarantees, under which an aggregate sum of up to $ 73,500 of credit loans and up to $ 40,200 of bank guarantees was available. The Credit Facilities were set to be terminated, and all borrowings were set to be repaid, upon March 2016. Repayment could have been accelerated by the financial institutions in certain events of default, including insolvency events, failure to comply with financial covenants, or an event in which a current or future shareholder acquires control(as defined under the Israel Securities Law) of the Company. The financial covenants were mainly based on financial ratios that were related to the Company's total shareholders' equity, financial debt, trade receivables balance and working capital (For further information, see note 10). In March 2016, the Company had further amended its Credit Facility arrangements to adjust the financial covenants and applicable interest rates and fees through the termination date of the credit facility. According to the amended terms, the Credit Facility was set to be terminated on June 30, 2016. Additionally, the available loan facility was gradually reduced to $ 56,000 as of December 31, 2015, and to $ 50,000 as of February 28, 2016. The amended Credit Facility also included a gradual reduction in the minimum cash covenant from $20,000 to $15,000 by October 1, 2015 (the "Amended Covenants"). In March 2016 the Company signed a further amendment to its agreement with the four financial institutions to extend the credit facility repayment date to March 31, 2017. According to the amendment, the covenants requirements and available credit line facility remained unchanged. As of the date of these financial statements, the Company’s management believes that current cash and cash equivalent balances and short-term bank deposits will be sufficient for its operational requirements through at least the following 12 months. According to the Company's plans, it will extend its Credit Facility agreement, or replace it with another financing arrangement in order to support the operations beyond March 31, 2017. The Company's management and board of directors believe that they will be able to obtain sufficient financial resources, however, there can be no assurances that the Company will be successful in obtaining sufficient financial resources when required. As of December 31, 2015 the Company utilized $ 34,922 out of $ 56,000 of available credit lines. As of December 31, 2015, the Company is in compliance with its Amended Covenants and also expects to be in compliance through at least the following 12 months |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES a. Basis of presentation: The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. ("U.S. GAAP"). b. Use of estimates: The preparation of the financial statements and related disclosures in conformity with U.S. GAAP requires the Company to make judgments, assumptions, and estimates that affect the amounts reported in the consolidated financial statements and the accompanying notes. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes are reasonable under the circumstances, to determine the carrying values of assets and liabilities that are not readily apparent from other sources. To the extent there are material differences between the Company's estimates and the actual results, the Company's future consolidated results of operation may be affected. c. Financial statements in U.S. dollars: A majority of the revenues of the Company and certain of its subsidiaries are generated in U.S. dollars ("dollars"). In addition, a substantial portion of the Company's and certain of its subsidiaries' costs is incurred in dollars. Since management believes that the dollar is the currency of the primary economic environment in which the Company and its subsidiaries operate and considers the non-U.S. subsidiaries to be a direct, integral extension of the parent company's operations, the dollar is its functional and reporting currency. Accordingly, amounts in currencies other than U.S dollars have been re-measured in accordance with ASC topic 830, "Foreign Currency Matters" ("ASC 830") as follows: Monetary balances - at the exchange rate in effect on the balance sheet date. Consolidated statements of operations items - average exchange rates prevailing during the year. All exchange gains and losses from the re-measurement mentioned above are reflected in the statement of operations in financial expenses, net. The financial statements of the Company's Brazilian subsidiaries, whose functional currency is not the dollar, have been re-measured and translated into dollars. All amounts on the balance sheets have been translated into the dollar using the exchange rates in effect on the relevant balance sheet dates. All amounts in the statements of operations have been translated into the dollar using the average exchange rate for the relevant periods. The resulting translation adjustments are reported as a component of accumulated other comprehensive income (loss) in shareholders' equity. d. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its subsidiaries ("the Group"). Intercompany balances and transactions including profits from intercompany sales not yet realized outside the Group, have been eliminated upon consolidation. e. Cash equivalents: Cash equivalents include short-term, highly liquid investments that are readily convertible to cash with original maturities of three months or less. f. Short-term bank deposits: Short-term bank deposits are deposits with maturities of more than three months and up to one year. The short-term bank deposits are in EURO and U.S. dollars and bear interest at an average rate of 0% of December 31, 2014. The short-term bank deposits are presented at their cost, including accrued interest. As of December 31, 2014, the Company had short-term bank deposits in the amount of $413. As of December 31, 2015, the Company had no short-term bank deposits. g. Inventories: Inventories are stated at the lower of cost or market value . Inventory includes costs of products delivered to customers and not recognized as cost of sales, where revenues in the related arrangements were not recognized. Cost is determined for all types of inventory using the moving average cost method plus indirect costs. h. Property and equipment: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets, at the following annual rates: % Computers, manufacturing and peripheral equipment 6 – 33 Enterprise Resource Planning systems ("ERP") 10 Office furniture and equipment Mainly 15 Leasehold improvements Over the shorter of the term of the lease or useful life of the asset i. Impairment of long-lived assets: The Company's and its subsidiaries' long-lived assets are reviewed for impairment in accordance with ASC topic 360," Property Plant and Equipment", ("ASC 360"), whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the asset. If an asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. During 2013 and 2015, no impairment losses have been recognized. During 2014 the Company recognized impairment expenses in the amount of $ 2,367. j. Income taxes: The Company and its subsidiaries account for income taxes in accordance with ASC topic 740, "Income Taxes", ("ASC 740"). This Statement prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and for carry forward losses deferred taxes are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company and its subsidiaries provide a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value if it is more likely than not that some portion or all of the deferred tax asset will not be realized. For more information see note 15c. The Company adopted ASC topic 740-10, "Income Taxes", ("ASC 740-10"). ASC 740-10 contains a two-step approach to recognizing and measuring uncertain tax positions accounted for in accordance with ASC 740. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company elected to classify interest expenses and penalties recognized in the financial statements as income taxes. For more information see note 15g. k. Goodwill and other intangible assets: Goodwill and certain other purchased intangible assets have been recorded in the Company's financial statements as a result of acquisitions. Goodwill represents excess of the costs over the net tangible and intangible assets acquired of businesses acquired under ASC topic 350, "Intangible - Goodwill and Other", ("ASC 350") according to which goodwill is not amortized. According to ASC 350, goodwill impairment testing is a two-step process. The first step involves comparing the fair value of a company's reporting units to their carrying amount. The Company elects to perform an annual impairment test of goodwill as of October 1 of each year, or more frequently if impairment indicators are present, (As of December 31, 2014 and 2015 the Company operates as one reporting unit). If the fair value of the reporting unit is determined to be greater than its carrying amount, there is no impairment. If the reporting unit's carrying amount is determined to be greater than the fair value, the second step must be completed to measure the amount of impairment, if any. Step two calculates the implied fair value of goodwill by deducting the fair value of all tangible and intangible assets, excluding goodwill, of the reporting unit from the fair value of the reporting unit as determined in step one. The implied fair value of the goodwill in this step is compared to the carrying value of goodwill. If the implied fair value of the goodwill is less than the carrying value of the goodwill, an impairment loss equivalent to the difference is recorded. Intangible assets that are considered to have definite useful life are amortized using the straight-line basis over their estimated useful lives, 7 years for Technology and Customer relations. The carrying amount of these assets is reviewed whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of these assets is measured by comparison of the carrying amount of the asset to the future undiscounted cash flows the asset is expected to generate. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. During 2014, the Company identified indicators of goodwill impairment and accordingly performed the two-step impairment which resulted in recording an impairment charge of its goodwill (see note 8). For the year ended December 31, 2013 and 2015, no impairment losses have been recognized. l. Revenue recognition: The Company and its subsidiaries generate revenues from selling products to end users, distributors, system integrators and original equipment manufacturers ("OEM"). Revenues from product sales are recognized in accordance with ASC topic 605-10, "Revenue recognition" and with ASC 605-25 "Multiple-Element Arrangements", ("ASC 605"), when delivery has occurred, persuasive evidence of an arrangement exists, the vendor's fee is fixed or determinable, no future obligation exists and collectability is probable. When required, the Company complies with ASU 605-25, "Multiple-Deliverable Revenue Arrangements". This standard changes the requirements for establishing separate units of accounting in a multiple element arrangement by elimination of the residual method and requires the allocation of arrangement consideration to each deliverable to be based on using the relative selling price method. Pursuant to the guidance of ASU 605-25, when a sales arrangement contains multiple elements, such as equipment and services, the Company allocates revenues to each element based on a selling price hierarchy. The selling price for a deliverable is based on its vendor specific objective evidence (''VSOE'') if available, third party evidence (''TPE'') if VSOE is not available, or estimated selling price (''ESP'') if neither VSOE nor TPE is available. In multiple element arrangements, revenues are allocated to each separate unit of accounting for each of the deliverables based on the aforementioned selling price hierarchy. The Company considers the sale of equipment and its installation to be two separate units of accounting in the arrangement in which the installation is not essential to the functionality of the equipment, the equipment has value to the customer on a standalone basis and whenever the arrangement does not include a general right of return relative to the delivered item or delivery or performance of the undelivered item is considered probable and substantially in the control of the Company. In such arrangement, revenues from the sale of equipment are recognized upon delivery, if all other revenue recognition criteria are met and the installation revenues are deferred to the period in which such installation occurs (but not less than the amount contingent upon completion of installation, if any) using relative selling prices of each of the deliverables based on the aforementioned selling price hierarchy. The Company determines the selling price in its multiple-element arrangements by reviewing historical transactions, and considering internal factors including, but not limited to, pricing practices including discounting, margin objectives, and competition. The determination of estimated selling price ("ESP") is made through consultation with management, taking into consideration the pricing model and strategy. When sale arrangements include a customer acceptance provision, revenue is recognized when the Company has demonstrated that the criteria specified in the acceptance provision have been satisfied or as the acceptance provision has lapsed and deemed to be attained. To assess the probability of collection for revenue recognition purposes, the Company analyzes historical collection experience, current economic trends and the financial position of its customers. On the basis of these criterions, the Company concludes whether revenue recognition should be deferred and recognized on a cash basis. When applicable, the Company records a provision for estimated sale returns, stock rotation and credits granted to customers on products in the same period the related revenues are recorded in accordance with ASC 605. These estimates are based on historical sales returns, stock rotations and other known factors. Deferred revenue includes unearned amounts received in its arrangements, and amounts received from customers but not recognized as revenues due to the fact that these transactions did not meet the revenue recognition criteria. m. Research and development expenses, net: Research and development expenses, net are charged to the statement of operations as incurred. n. Warranty costs: The Company generally offers a standard limited warranty, including parts and labor for an average period of 1-3 years for its products. The Company estimates the costs that may be incurred under its basic limited warranty and records a liability in the amount of such costs at the time product revenue is recognized. Factors that affect the Company's warranty liability include the number of installed units, historical and anticipated rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary. The Company recorded income from decrease of warranty provision for the years ended December 31, 2013, 2014 and 2015 in the amount of $ 1,816, $ 133 and $ 139, respectively. As of December 31, 2014 and 2015, the warranty provision was $ 2,851 and $ 2,712, respectively. o. Derivative instruments: The Company has instituted a foreign currency cash flow hedging program using foreign currency forward contracts ("derivative instruments") in order to hedge the exposure to variability in expected future cash flows resulting from changes in related foreign currency exchange rates. These transactions are designated as cash flow hedges, as defined under ASC topic 815, "Derivatives and Hedging". ASC 815 requires companies to recognize all of their derivative instruments as either assets or liabilities in the financial statements at fair value. The Company measured the fair value of the contracts in accordance with ASC topic 820, "Fair value Measurement and Disclosures" at Level 2 (see also note 2v). The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge or a hedge of a net investment in a foreign operation. For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss), net of taxes and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The non-effective portion of the derivative's change in fair value is recognized in earnings. For derivative instruments that are designated as fair value hedges to hedge foreign currency risks for our exposure denominated in currencies other than the U.S. dollar. Gains and losses on these forward contracts are recognized in earnings. The Company's cash flow hedging program is to hedge against the risk of overall changes in cash flows resulting from forecasted foreign currency salary payments during the year. The Company hedges portions of its forecasted expenses denominated in NIS with forward exchange contracts. These forward exchange contracts are designated as cash flow hedges, as defined by ASC 815 and Derivative Implementation Group No. G20, "Cash Flow Hedges: Assessing and Measuring the Effectiveness of a Purchased option Used in a Cash Flow Hedge" ("DIG 20") and are all effective. p. Concentrations of credit risk: Financial instruments that potentially subject the Company and its subsidiaries to concentrations of credit risk consist principally of cash and cash equivalents, short-term bank deposits, marketable securities, trade receivables and trade payables. The majority of the Company's cash and cash equivalents and short-term bank deposits are invested in U.S. dollar instruments with major banks worldwide. Such cash and cash equivalents and deposits in the United States may be in excess of insured limits and are not insured in other jurisdictions. Generally, these cash and cash equivalents and deposits may be redeemed upon demand and, therefore, bear minimal risk. Management believes that the financial institutions that hold the Company's and its subsidiaries' investments are institutions with high credit standing, and accordingly, minimal credit risk exists with respect to these investments. The Company's marketable securities consist of securities issued by debentures of Argentinean and Venezuelan government. As of December 31, 2013 and 2014, the Company’s entire marketable securities portfolio was invested in debt securities of governmental institutions. The Company's investment policy limits the amount the Company may invest in any one type of investment or issuer, thereby reducing credit risk concentrations. The Company's trade receivables are geographically diversified and derived from sales to customers mainly in the Europe, Latin America and Asia. The Company and its subsidiaries generally do not require collateral; however, in certain circumstances, the Company and its subsidiaries may require letters of credit, additional guarantees or advance payments. The Company and its subsidiaries perform ongoing credit evaluations of their customers and insure certain trade receivables under credit insurance policies. q. Allowance for doubtful debt: An allowance for doubtful accounts is determined with respect to specific receivables, of which the collection may be doubtful. The Company charges off receivables when they are deemed uncollectible. r. Transfers of financial assets: ASC 860 "Transfers and Servicing", ("ASC 860"), establishes a standard for determining when a transfer of financial assets should be accounted for as a sale. The Company's arrangements are such that the underlying conditions are met for the transfer of financial assets to qualify for accounting as a sale. The transfers of financial assets are typically performed by the factoring of receivables to three financial institutions. As of December 31, 2014 and 2015, the Company sold trade receivables to several different financial institutions in a total net amount of $ 13,061 and $ 14,443, respectively. Control and risk of those trade receivables were fully transferred in accordance with ASC 860. The agreements, pursuant to which the Company sells its trade receivables, are structured such that the Company (i) transfers the proprietary rights in the receivable from the Company to the financial institution; (ii) legally isolates the receivable from the Company's other assets, and presumptively puts the receivable beyond the lawful reach of the Company and its creditors, even in bankruptcy or other receivership; (iii) confers on the financial institution the right to pledge or exchange the receivable; and (iv) eliminates the Company's effective control over the receivable, in the sense that the Company is not entitled and shall not be obligated to repurchase the receivable other than in case of failure by the Company to fulfill its commercial obligation. s. Severance pay: The Company's severance pay liability for its Israeli employees is calculated pursuant to Israel's Severance Pay Law based on the most recent salary of the employees multiplied by the number of years of employment, as of the balance sheet date. Employees are entitled to one month's salary for each year of employment or a portion thereof. The Company's liability for all of its employees in Israel is fully covered by monthly deposits with pension funds, insurance policies and an accrual. The value of the funds deposited into pension funds and insurance policies is recorded as an asset - severance pay fund - in the Company's balance sheet. The severance pay fund includes the deposited funds and accumulated adjustments to the Israeli Consumer Price Index up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israel's Severance Pay Law or labor agreements. The value of the deposited funds in insurance policies, is based on the cash surrendered value of these policies, and includes profits / losses. Starting April 2009, the Company's agreements with new employees in Israel are under section 14 of the Severance Pay Law -1963. The Company's contributions for severance pay shall replace its severance obligation, no additional calculations shall be conducted between the parties regarding the matter of severance pay and no additional payments shall be made by the Company to the employee. Further, the related obligation and amounts deposited on behalf of such obligation are not stated on the balance sheet, as the Company is legally released from obligation to employees once the deposit amounts have been paid. Severance expense for the years ended December 31, 2013, 2014 and 2015, amounted to approximately $ 2,588, $ 1,964 and $ 2,673, respectively. t. Pension accrual: The Company accounts, for its obligations for pension and other postretirement benefits, in accordance with ASC 715, "Compensation - Retirement Benefits". For more information refer to note 12. u. Accounting for stock-based compensation: ASC topic 718, "Compensation - Stock Compensation", ("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 estimates the fair value of stock options granted under ASC 718 using the binomial model with the following weighted-average assumptions for 2013, 2014 and 2015: December 31, 2013 2014 2015 Dividend yield 0 % 0 % 0 % Volatility 41%-56 % 49%-65 % 48%-70 % Risk free interest 0.1%-2.80 % 0.1%-2.40 % 0.1%-2.40 % Early exercise multiple 1.60-1.90 2.20-2.80 2.60-3.40 Risk-free interest rates are based on the yield from U.S. Treasury zero-coupon bonds with a term equivalent to the contractual life of the options; volatility of price of the Company's shares based upon actual historical stock price movements. The Early exercise factor is representing the value of the underlying stock as a multiple of the exercise price of the option which, if achieved, results in exercise of the option. Early exercise multiple is based on actual historical exercise activity. The expected term of the options granted is derived from output of the option valuation model and represents the period of time that options granted are expected to be outstanding. The Company recognizes compensation expense using the accelerated method for all awards ultimately expected to vest. Estimated forfeitures are based on historical pre-vesting forfeitures and on management's estimates. ASC topic 718 requires forfeitures to be estimated and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. v. Fair value of financial instruments: The Company applies ASC 820, "Fair Value Measurements and Disclosures". Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the inputs as follows: Level 1 - Valuations based on quoted prices in active markets for identical assets that the Company has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. Level 2 - Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of observable inputs can vary from investment to investment and is affected by a wide variety of factors, including, for example, the type of investment, the liquidity of markets and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment and the investments are categorized as Level 3 (see also note 18). The following methods and assumptions were used by the Company and its subsidiaries in estimating their fair value disclosures for financial instruments: The carrying amounts of cash and cash equivalents, short-term bank deposits, trade receivables, other accounts receivable, trade payables, and other accounts payable and accrued expenses approximate their fair values due to the short-term maturities of such instruments. The marketable securities fair value, based on quoted market prices, classified within Level 1 (see also note 3). The derivative instruments are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. w. Restructuring costs: The Company accounts for restructuring activities in accordance to ASC topic 420, "Exit or Disposal Cost Obligations" and ASC 712 "Compensation-Nonretirement Postemployment Benefits" ("ASC 712"), which requires that a liability for a cost associated with an exit or disposal activity be recognized and measured, initially at fair value, only when the liability is incurred and for contractual postemployment benefits under ASC 712 when it is probable that the employees will be entitled to the benefits, the amount is estimable. For more information regarding impairment of long lived assets related to the restructuring plan, see note 2i. x. Comprehensive income: The Company accounts for comprehensive income in accordance with ASC topic 220, "Comprehensive Income". This statement establishes standards for the reporting and display of comprehensive income and its components in a full set of general purpose financial statements. Comprehensive income generally represents all changes in stockholders' equity during the period except those resulting from investments by, or distributions to, stockholders. The components of AOCI, net of tax, were as follows: Unrealized Gains (Losses) on Available- for-Sale Investments Unrealized Gains (Losses) on Cash Flow Hedges Foreign Currency Translation Adjustments Total Balance as of January 1, 2015 $ 93 $ 100 $ (4,304 ) $ (4,111 ) Other comprehensive income (loss) before reclassifications (423 ) (153 ) (4,149 ) (4,725 ) Amounts reclassified from AOCI 330 (110 ) - 220 Other comprehensive income (loss) (93 ) (263 ) (4,149 ) (4,505 ) Balance as of December 31, 2015 - $ (163 ) $ (8,453 ) $ (8,616 ) The effects on net income of amounts reclassified from AOCI for the year ended December 31, 2015 derive from realized gains on Cash Flow Hedges, included in operating expenses. y. Treasury shares: The Company repurchased its ordinary shares on the open-market and holds such shares as Treasury shares. The Company presents the cost of repurchased treasury shares as a reduction of shareholders' equity. z. Basic and diluted net earnings per share: Basic net earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year. Diluted net earnings per share is computed based on the weighted average number of ordinary shares outstanding during each year, plus dilutive potential ordinary shares considered outstanding during the year, in accordance with ASC topic 260, "Earnings Per Share" ("ASC 260"). The total weighted average number of shares related to the outstanding options excluded from the calculations of diluted net earnings per share due to their anti-dilutive effect was 5,996,622, 6,895,891 and 5,679,468 for the years ended December 31, 2013, 2014 and 2015, respectively. aa. Advertising expenses: Advertising expenses are charged to the statements of operations as incurred. Advertising expenses for the years ended December 31, 2013, 2014 and 2015 amounted to $ 325, $235 and $ 350, respectively. ab. Impact of recently issued Accounting Standards: In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09 (ASU 2014-09) "Revenue from Contracts with Customers." ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. As currently issued and amended, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, though early adoption is permitted for annual reporting periods beginning after December 15, 2016. We are currently in the process of evaluating the impact of the adoption of ASU 2014-09 on our consolidated financial statements, implementing accounting system changes related to the adoption, and considering additional disclosure requirements. In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern, which defines management’s responsibility to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures if there is substantial doubt about its ability to continue as a going concern. The pronouncement is effective for annual reporting periods ending after December 15, 2016 with early adoption permitted. In February 2015, the FASB issued Accounting Standards Update No. 2015-02 (ASU 2015-02) "Consolidation (Topic 810): Amendments to the Consolidation Analysis." ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. We will adopt this standard in the first quarter of 2016 on a retrospective basis. We do not expect the adoption of this stand |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2015 | |
Marketable Securities [Abstract] | |
MARKETABLE SECURITIES | NOTE 3:- MARKETABLE SECURITIES The following is a summary of the CompanyÂ’s investments in marketable securities: 2014 2015 Amortized Gross unrealized Fair market Amortized Gross unrealized Fair market Cost gains value cost gains value Government bonds $ 535 $ - $ 535 $ - $ - $ - All of the government bonds are for a period of less than one year. During 2013, 2014 and 2015, the Company recorded proceeds from sales of these securities in an amount of $ 513, $ 5,161 and $ 122 respectively, and other than temporary impairment and income (loss) from the sale of marketable securities in an amount of $ 2,114, $ 3,133 and $ (330), respectively. |
OTHER ACCOUNTS RECEIVABLE AND P
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES | 12 Months Ended |
Dec. 31, 2015 | |
Prepaid Expense and Other Assets [Abstract] | |
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSE | NOTE 4:- OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES December 31, 2014 2015 Government authorities $ 11,036 $ 6,940 Advances to suppliers 1,568 3,593 Deferred charges and prepaid expenses 6,554 6,462 Other 3,740 5,588 $ 22,898 $ 22,583 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 5:- INVENTORIES December 31, 2014 2015 Raw materials $ 11,535 $ 6,984 Work in progress 1,473 252 Finished products 48,822 42,454 $ 61,830 $ 49,690 Finished products include products shipped to customers for which revenues were not recognized. Such products amounted to $ 18,622 and $ 10,707 at December 31, 2014 and 2015, respectively. During the year ended December 31, 2013, 2014 and 2015, the Company recorded inventory write-offs for excess inventory and slow moving inventory in a total amount of $ 396, $ 3,515 and $ 5,124, respectively that have been included in cost of revenues. Inventory write-off provision as of December 31, 2014 and 2015 amounted of $ 5,238 and $ 5,033, respectively. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 6:- PROPERTY AND EQUIPMENT, NET December 31, 2014 2015 Cost: Computers, manufacturing, peripheral equipment $ 81,855 $ 86,244 Office furniture and equipment 2,876 2,903 Leasehold improvements 1,049 1,161 85,780 90,308 Accumulated depreciation: Computers, manufacturing, peripheral equipment 50,271 58,469 Office furniture and equipment 1,616 2,084 Leasehold improvements 755 849 52,642 61,402 Depreciated cost $ 33,138 $ 28,906 Depreciation expenses for the years ended December 31, 2013, 2014 and 2015 were $ 13,111, $ 11,377 and $ 10,338 respectively. During 2013 and 2014 and mainly as part of restructuring plans, the Company wrote off property and equipment in the total net amount of $ 2,559 and $ 2,367, respectively. No write-off expense was recorded in 2015. Changes of property and equipment not resulted in cash flow outflows as of December 31, 2014 and 2015 amounted of $ (982) and $ (1,013), respectively. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 7:- INTANGIBLE ASSETS, NET a. Intangible assets: The following table sets forth the components of intangible assets associated with the Nera Acquisition: December 31, 2014 2015 Original amounts: Technology $ 8,600 $ 8,600 Trademarks 800 800 Customer relationships *) 8,023 7,970 17,423 17,370 Accumulated amortization: Technology 4,854 6,082 Trademarks 800 800 Customer relationships 6,699 7,296 12,353 14,178 Intangible assets, net $ 5,070 $ 3,192 *) Including functional currency translation adjustments related to Brazilian subsidiary. Customer relationships represent relationships with customer through whom Nera generates its revenue, capable of being separated or divided from the entity and sold, or transferred. Technology includes Nera's internally developed proprietary technologies, features, platforms, and offerings, capable of being separated or divided from the entity and sold, transferred, or licensed. Trade names value consists of the right to use for two years Nera's trade names, trademarks, logos and URLs, capable of being separated or divided from the entity and sold, transferred, or licensed. b. Amortization expense for the years ended December 31, 2013, 2014 and 2015 amounted to $ 2,534, $ 2,121 and $1,865 respectively. c. The estimated future amortization expense of purchased intangible assets as of December 31, 2015 is as follows: 2016 1,665 2017 1,527 $ 3.192 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill [Abstract] | |
GOODWILL | NOTE 8:- GOODWILL The changes in the carrying amount of goodwill for the year ended December 31, 2014 are as follows: Year ended December 31, 2014 Beginning balance $ 14,935 Impairment of Goodwill (1) (14,765 ) Functional currency translation adjustments and other adjustments (2) (170 ) Ending balance $ - (1) During the fourth quarter of 2014, the Company determined that sufficient indicators of potential impairment existed to require additional goodwill impairment analysis. These indicators included the trading value of the Company's stock at the time of the impairment test, coupled with existing market conditions and business trends. Based on the step one and step two analyses (see also note 2k), the Company recorded complete goodwill impairment charge in 2014, in the amount of $ 14,765. (2) Foreign currency translation differences resulting from goodwill allocated to subsidiaries, whose functional currency has been determined to be other than the U.S. dollar and adjustment related to provisions. |
OTHER ACCOUNTS PAYABLE AND ACCR
OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSE | NOTE 9:- OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES December 31, 2014 2015 Employees and payroll accruals $ 11,392 $ 11,352 Provision for warranty costs 2,851 2,712 Government authorities 3,602 4,820 Accrued expenses 16,337 5,035 Other accounts payables 3,066 3,133 $ 37,248 $ 27,052 |
LOAN AND CREDIT LINES
LOAN AND CREDIT LINES | 12 Months Ended |
Dec. 31, 2015 | |
Long-term Debt, Unclassified [Abstract] | |
LOAN AND CREDIT LINES | NOTE 10:- LOAN AND CREDIT LINES In 2011 the Company entered into a loan agreement with Bank Hapoalim Ltd. (the "Loan Agreement") for a loan in the principal amount of $ 35,000 (the "Loan"). The Loan Agreement provides that the principal amount of $ 35,000 bear effective interest at a rate of Libor + 3.15%, which Libor is updated every three months. The principal amount is to be repaid in 17 quarterly installments from February 19, 2012, through February 19, 2016 and the interest is to be paid in quarterly payments starting as of February 19, 2011. As of December 31, 2014 and 2015 the accrued interest is $38 and $ 18, respectively, and is recorded as part of the accrued expenses. The loan is secured by a floating charge over all Company assets as well as several customary fixed charges on specific assets and subject to certain financial covenants, as further described below. The maturities of the principal amount for period after December 31, 2015 are $ 2,072. In March 2013, the Company was provided with a Credit Facility by four financial institutions. The credit facility provided the Company with revolving credit facilities, under which a sum of up to $ 40,200 in the form of bank guarantees and $ 73,500 in the form of loans was available. The new agreement replaced all of the Company's previously existing credit facilities, including the loan agreement (with respect to the Loan provides the same interest and repayment installments set forth in the Loan Agreement). Each portion of the Credit Facility was operated by its furnishing financial institution. Borrowings and repayments were made directly with the relevant financial institution. Any amounts repaid during the term of the Credit Facility were available for re-borrowing up to the amount available under the loan segment of the Credit Facility. In the framework of the Credit Facility, the Company undertook certain financial and other covenants. The Credit Facility was set to be terminated, and all borrowings set to l be repaid, on March 14, 2016. Repayment could have been accelerated by the financial institutions in certain events of default including in insolvency events, failure to comply with financial covenants or an event in which a current or future shareholder acquires control (as defined under the Israel Securities Law) of the Company. During the first quarter of 2014 the Company amended its Credit Facility arrangements to adjust the financial covenants and applicable interest rates and fees.. According to the amendment, the available loan facilities were reduced by $ 5,000 on January 1, 2015 and by an additional $ 5,000 on April 1, 2015. On March 31, 2015 the Company signed a further amendment to its agreement with the four financial institutions to better align its credit facility terms to its current needs and to adjust the financial covenants and applicable interest rates and fees. The main changes consisted of: a. An increase in the allowed discounting activities of one of the CompanyÂ’s main customers' long-term receivables to $ 54,000 and additional $ 20,000 for other customers. c. Gradual reduction of the credit facility for loans from $ 63, 500 (starting April 1, 2015) to $ 50,000 by February 28, 2016. c. Gradual reduction in minimum cash covenant from $ 20,000 to $ 15,000 by October 1, 2015. d. An extension of the credit facility repayment date to June 30, 2016 (from March, 14, 2016). e. Changes in the equity related covenants definition to exclude Goodwill and Intangible Assets from the calculation, as well as reduction for the minimum total shareholdersÂ’ equity value to $ 85,000 and reduction of the minimum total shareholdersÂ’ equity total assets ratio 0.27. f. Other changes primarily increase in the maximum spread of interest chargeable to 3.5% and other bank fees. In March 2016 the Company signed a further amendment to its agreement with the four financial institutions to extend the credit facility repayment date to March 31, 2017 (from June 30, 2016). As of December 31, 2015 the Company utilized $ 34,922 out of $ 56,000 of available credit lines from several banks. The credit lines carry interest rates in the range of Libor+3.5% and Libor+3.75%. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENT | NOTE 11:- DERIVATIVE INSTRUMENTS As of December 31, 2014, the Company had outstanding forward exchange contracts designated as cash flow hedge for the acquisition of NIS 116,942 in consideration for $ 29,987 maturing in a period of up to one year. As of December 31, 2015, the Company had outstanding forward exchange contracts designated as cash flow hedge for the acquisition of NIS 122,407 in consideration for $ 31,686 maturing, in a period of up to one year. As of December 31, 2014, the Company recorded accumulated unrealized gain in other comprehensive income, in the amount of $ 100. As of December 31, 2015, the Company recorded accumulated unrealized loss in other comprehensive income in the amount of $ 163, from its forward contracts with respect to anticipated payroll payment. The Company also enters into forward exchange contracts to hedge a portion of its certain monetary items in the balance sheet, such as trade receivables and trade payables denominated in foreign currencies for a period of up to one month (the "Fair Value Hedging Program"). The purpose of the Company's Fair Value Hedging Program is to protect the fair value of the monetary assets from foreign exchange rates fluctuations. Gains and losses from derivatives related to the Fair Value Hedging Program are not designated as hedging instruments. In 2013 and 2014 the Company recorded financial expenses in the amount of $ 2,150 and $ 240, respectively, in relation to the Fair Value Hedging Program. In 2015, the Company recorded financial income in the amount of $705 in relation to the Fair Value Hedging Program. Loss recognized in Statements of Comprehensive loss Gain (loss) recognized in consolidated statements of operations December 31, Statement of Year ended December 31, 2015 Operations item 2013 2014 2015 Derivatives designated as hedging instruments: Foreign exchange option and forward contract $ 163 Operating expenses $ 1,189 $ (495 ) $ 110 Derivatives not designated as hedging instruments: Foreign exchange forward contracts - Financial expenses (2,150 ) (240 ) 705 Total $ 163 $ (961 ) $ (735 ) $ 815 December 31, Balance sheet 2014 2015 Derivatives designated as hedging instruments: Foreign exchange forward contracts "Other account receivables and prepaid expenses" $ 100 $ - "Other account payables and accrued expenses" $ - $ 163 "Other comprehensive income (loss)" $ 100 $ (163 ) Derivatives not designated as hedging instruments: Foreign exchange forward contracts and other derivatives "Other receivables and prepaid expenses" $ 26 $ 138 "Other account payables and accrued expenses" $ 139 $ 395 |
PENSION LIABILITIES, NET
PENSION LIABILITIES, NET | 12 Months Ended |
Dec. 31, 2015 | |
Pension and Other Postretirement Defined Benefit Plans, Liabilities [Abstract] | |
PENSION LIABILITIES, NET | NOTE 12:- PENSION LIABILITIES, NET The Norwegian subsidiary Ceragon Networks AS (formerly "Nera Networks AS") has defined contribution schemes and 4 unfunded pension plans. Under the defined contributions scheme Ceragon Networks AS makes a payment to the insurance company who administer the fund on behalf of the employee. Ceragon Networks AS has no liabilities relating to such schemes after the payment to the insurance company. As of December 31, 2015 almost all active employees are in this scheme. The contribution and the corresponding social security taxes are recognized as payroll expenses in the period to which the employee's services are rendered. The defined pension contribution schemes meet the requirements of the law on compulsory occupational pension. Defined benefit scheme was stopped for admission from December 1, 2007, and persons that were employed after that date were automatically entered into the defined contribution scheme. The schemes give right to defined future benefits. These are mainly dependent on the number of qualifying employment years, salary level at pension age, and the amount of benefits from the national insurance scheme. The commitment related to the pension scheme is covered through an insurance company. As of December 31, 2015 the pension scheme has 0 members. AFP-scheme - in force from 1 January 2011, the AFP-scheme is a defined benefit multi-enterprise scheme, but is recognized in the accounts as a defined contribution scheme until reliable and sufficient information is available for the group to recognize its proportional share of pension cost, pension liability and pension funds in the scheme. Ceragon Networks AS's liabilities are therefore not recognized as liability in the balance sheet. . The liabilities in respect of Ceragon Networks AS's pension plans have been recalculated based on updated employee numbers as at December 31, 2015. These plans together represent 100% of the PBO of the entire group. The following tables provide a reconciliation of the changes in the plans' benefits obligation for the year ended December 31, 2015, and the statement of funds status as of December 31, 2015: December 31, 2014 2015 Accumulated benefit obligation $ 3,243 $ 2,362 Change in projected benefit obligation Projected benefit obligation at beginning of year $ 11,204 3,243 Liability assumed at the acquisition date of Nera Service cost 37 16 Interest cost 271 53 Plan settlements (7,007 ) - Expenses paid (548 ) (315 ) Exchange rates differences (963 ) (417 ) Actuarial loss (gain) 249 (218 ) Projected benefit obligation at end of year $ 3,243 $ 2,362 Change in plan assets Fair value of plan assets at beginning of year $ 7,124 $ - Actual return on plan assets 146 - Employer contributions to plan 18 - Plan settlements (7,053 ) - Exchange rates differences (235 ) - Fair value of plan assets at end of year $ - $ - The assumptions used in the measurement of the Company' benefits obligations as of December 31, 2015 is as follows: December 31, 2014 2015 Weighted-average assumptions Discount rate 3.00 % 2,70% Rate of compensation increase 3.25 % 2,5% The amounts reported for net periodic pension costs and the respective benefit obligation amounts are dependent upon the actuarial assumptions used. The Company reviews historical trends, future expectations, current market conditions and external data to determine the assumptions. The discount rate is the covered bond. For purposes of calculating the 2016 net periodic benefit cost and the 2015 benefit obligation, the Company has used a discount rate of 2,7%. The rate of compensation increase is determined by the Company, based upon its long-term plans for such increases. The following table provides the components of net periodic benefits cost for the years ended December 31, 2014 and 2015: December 31, 2014 2015 Components of net periodic benefit cost Service cost $ 37 $ 145 Interest cost 271 467 Expected return on plan assets (146) - Exchange rates differences 15 - Net periodic benefit cost $ 177 $ 612 Benefit payments are expected to be paid as follows: December 31, 2014 2015 2015 $ 480 $ 315 2016 396 290 2017 241 240 2018 150 150 2019 and thereafter 692 700 $ 1,959 $ 1,695 Regarding the policy for amortizing actuarial gains or losses for pension and post-employment plans, the Company has chosen to charge the actuarial gains or losses to statement of operations. For the years ended December 31, 2013, 2014 and 2015, an actuarial gain (loss) of $ (1,291), $ (533) and $ 174, respectively, was recognized in statements of income (loss). |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 13:- COMMITMENTS AND CONTINGENT LIABILITIES a. Lease commitments: The Company and its subsidiaries lease their facilities and motor vehicles under various operating lease agreements that expire on various dates. Aggregate minimum rental commitments under non-cancelable leases at December 31, 2015, are as follows: Facilities Motor vehicles Total 2016 $ 3,484 $ 775 $ 4,259 2017 3,037 581 3,618 2018 489 379 868 2019 236 103 339 2020 and thereafter 324 5 329 $ 7,570 $ 1,843 $ 9,413 Expenses for lease of facilities for the years ended December 31, 2013, 2014 and 2015 were approximately $ 8,182, $ 5,426 and $ 3,797, respectively. Expenses for the lease of motor vehicles for the years ended December 31, 2013, 2014 and 2015 were approximately $ 1,568, $ 1,174 and $ 1,175, respectively. b. During 2014 and 2015, the Company received several grants from the OCS. The grants require the Company to comply with the requirements of the Research and Development Law, however, the Company is not obligated to pay royalties on sales of products based on technology or know how developed from the grants. In a case involving the transfer of technology or know how developed from the grants outside of Israel, the Company may be required to pay royalties related to past sales of products based on the technology or the developed know how. The Company recorded income from OCS grants for the years ended December 31, 2013, 2014 and 2015 in the amount of $ 599, $ 1,092 and $ 1,318, respectively. c. Charges and guarantees: As of December 31, 2014 and 2015, the Company provided bank guarantees in an aggregate amount of $ 27,890 and $ 25,410, respectively, with respect to tender offer guarantees and performance guarantees to its customers. d. Litigations: The Company is currently involved in various claims and legal proceedings. The Company reviews the status of each matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss. On January 6, 2015 the Company was served with a motion to approve a purported class action, naming the Company, its Chief Executive Officer and its directors as defendants. The motion was filed with the District Court of Tel-Aviv. The purported class action alleges breaches of duties by making false and misleading statements in the CompanyÂ’s SEC filings and public statements. The Company filed its defense on June 21 2015 and the parties are now debating the plaintiffsÂ’ right for discovery. The Company filed its response to the plaintiffsÂ’ request for discovery on January 25, 2016 and the plaintiffs submitted their response on February 24 2016. Once the court decides in relation to discovery, it is expected that a date for submission of plaintiffÂ’s response to the CompanyÂ’s defense will be set. The initial procedure, i.e. until the District Court decides whether to approve the motion or to deny it, has been conducted for over a year now, and it is difficult to estimate how long it is expected to last. The Company believes that the District Court should deny the motion. There is no assurance that the CompanyÂ’s position will be accepted by the District Court. In such case the Company may have to divert attention of its executives to deal with this class action as well as incur expenses that may be beyond its insurance coverage for such cases, which cause a risk of loss and expenditures that may adversely affect its financial condition and results of operations. The Company believes it has strong defense claims and intends to vigorously defend its position. The Company cannot assess the outcome of this claim due its early stage. Therefore the company did not record a provision as of December 31, 2015. e. Inventory : The Group is obligated under certain agreement with its supplier to purchase specified item of excess inventory which is expected to be utilized during the years 2016-2018. As of December 31, 2015, non-cancelable purchase obligations were approximately $1,638 . |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | style="margin-top:
0; margin-bottom: 0">
This
amount is impacted by the changes in the fair market value of the Company's shares. Total
intrinsic value of options and RSUs exercised during the years ended December 31, 2014
and 2015 were $ 573 and $ 480, respectively. As of December 31, 2015, there
was $ 1,049 of total unrecognized compensation cost related to non-vested share-based
compensation arrangements granted under the Plan. This cost is expected to be recognized
over a weighted-average period of 0.92 years.
The following
is a summary of the Company's stock options and RSUs granted separated into ranges of
exercise price:
Exercise
price (range) Options
and RSUs outstanding as
of December
31, 2015 Weighted average remaining contractual life
(years) Weighted average exercise price Options
and RSUs exercisable as
of December
31, 2015 Remaining
contractual life (years for exercisable options Weighted average exercise price
$ $ $
RSUs
0.0 99,449 0.00 -
0.01-2.00 2,899,240 5.34 1.19 83,332 5.34 1.15
2.01-4.00 537,188 4.98 2.61 240,394 4.94 2.87
4.01-6.00 1,090,830 3.67 5.23 1,000,809 3.36 5.27
6.01-8.00 46,500 6.42 6.85 38,179 6.36 6.91
8.01-10.00 970,440 4.70 9.02 915,585 4.59 9.02
10.01-14.29 921,584 4.08 12.43 921,584 4.08 12.43
6,565,231 3,199,883
The total
equity-based compensation expense related to all of the Company's equity-based awards,
recognized for the years ended December 31, 2013, 2014 and 2015, was comprised as follows:
Year
ended December
31,
2013 2014 2015
Cost
of revenues $ 181 $ 215 $ 73
Research
and development 1,009 1,625 736
Selling
and marketing 1,334 674 495
General
and administrative 1,298 831 321
Total
stock-based compensation expenses *) $ 3,822 $ 3,345 $ 1,625
*) Including
$ 674, $ 2,086 and $ 822 compensation expenses related to RSUs for the
year ended December 31, 2013, 2014 and 2015, respectively
e. Dividends:
In
the event that cash dividends are declared in the future, such dividends will be paid
in NIS or in foreign currency subject to any statutory limitations. The Company does
not intend to pay cash dividends in the foreseeable future." id="sjs-B4">NOTE 14:- SHAREHOLDERS' EQUITY The ordinary shares of the Company are traded on Nasdaq Global Market and on the Tel Aviv Stock Exchange, under the symbol "CRNT". a. General: The ordinary shares entitle their holders to receive notice to participate and vote in general meetings of the Company, the right to share in distributions upon liquidation of the Company, and to receive dividends, if declared. b. In November 2013, the Company completed a public offering of its shares on NASDAQ. The Company issued 14,000,000 of its ordinary shares, nominal value NIS 0.01 per share he Company also granted to the underwriters the option to purchase up to 1,600,000 additional ordinary shares within 30 days, which was fully exercised. In August 2014, the Company completed a public offering of its shares on NASDAQ. The Company issued 21,250,000 of its ordinary shares, nominal value NIS 0.01 per share he Company also granted to the underwriters the option to purchase up to 2,850,000 additional ordinary shares within 30 days, which was fully exercised. c. Stock options plans: 1. In 2003, the Company adopted a share option plan (the "Plan"). Un der the Plan, options may be granted to officers, directors, employees and consultants of the Company or its subsidiaries. The options vest primarily over four years. The options expire ten years from the date of grant. In December 2012, the Company extended the term of the Plan for an additional period of ten years. Upon adoption of the Plan, the Company reserved for issuance 8,639,000 ordinary shares in accordance with the respective terms thereof. Any options, which are canceled or forfeited before the expiration date, become available for future grants. As of December 31, 2015, the Company has 1,884,425 Ordinary shares available for future grant under the Plan. 2. On September 6, 2010, the Company's board of directors amended the Plan so as to enable to grant Restricted share Units ("RSUs") pursuant to such Plan. 3. The following is a summary of the Company's stock options and RSUs granted among the various plans: Year ended December 31, 2015 Number of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Outstanding at beginning of year 5,699,012 $ 7.46 $ - Granted 3,094,774 $ 1.19 Exercised (125,000 ) $ 1.03 Forfeited or expired (2,203,004 ) $ 6.78 Outstanding at end of the year 6,465,782 $ 4.81 4.76 $ 88 Options exercisable at end of the year 3,199,883 $ 8.14 4.13 $ 5 Vested and expected to vest 5,512,842 $ 5.41 4.66 $ 64 Year ended December 31, 2015 Number of RSUs Aggregate intrinsic value Outstanding at beginning of year 654,306 Granted - Exercised (380,998 ) Forfeited (173,859 ) Outstanding at end of the year 99,449 $ 120 Vested and expected to vest 81,691 $ 99 The Company's options are generally granted at exercise prices which are equal to the average market value of the ordinary shares in the period of 30 trading days prior to the grant date. The weighted average grant date fair value of the options granted during 2013, 2014 and 2015 were $ 1.99, $ 0.96 and $ 0.54, respectively. No RSUs were granted during 2015. The aggregate intrinsic value in the table above represents the total intrinsic value (the difference between the Company's closing stock price on the last trading day of the year and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on the last day of the year. style="margin-top: 0; margin-bottom: 0">style="margin-top: 0; margin-bottom: 0"> This amount is impacted by the changes in the fair market value of the Company's shares. Total intrinsic value of options and RSUs exercised during the years ended December 31, 2014 and 2015 were $ 573 and $ 480, respectively. As of December 31, 2015, there was $ 1,049 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Plan. This cost is expected to be recognized over a weighted-average period of 0.92 years. The following is a summary of the Company's stock options and RSUs granted separated into ranges of exercise price: Exercise price (range) Options and RSUs outstanding as of December 31, 2015 Weighted average remaining contractual life (years) Weighted average exercise price Options and RSUs exercisable as of December 31, 2015 Remaining contractual life (years for exercisable options Weighted average exercise price $ $ $ RSUs 0.0 99,449 0.00 - 0.01-2.00 2,899,240 5.34 1.19 83,332 5.34 1.15 2.01-4.00 537,188 4.98 2.61 240,394 4.94 2.87 4.01-6.00 1,090,830 3.67 5.23 1,000,809 3.36 5.27 6.01-8.00 46,500 6.42 6.85 38,179 6.36 6.91 8.01-10.00 970,440 4.70 9.02 915,585 4.59 9.02 10.01-14.29 921,584 4.08 12.43 921,584 4.08 12.43 6,565,231 3,199,883 The total equity-based compensation expense related to all of the Company's equity-based awards, recognized for the years ended December 31, 2013, 2014 and 2015, was comprised as follows: Year ended December 31, 2013 2014 2015 Cost of revenues $ 181 $ 215 $ 73 Research and development 1,009 1,625 736 Selling and marketing 1,334 674 495 General and administrative 1,298 831 321 Total stock-based compensation expenses *) $ 3,822 $ 3,345 $ 1,625 *) Including $ 674, $ 2,086 and $ 822 compensation expenses related to RSUs for the year ended December 31, 2013, 2014 and 2015, respectively e. Dividends: In the event that cash dividends are declared in the future, such dividends will be paid in NIS or in foreign currency subject to any statutory limitations. The Company does not intend to pay cash dividends in the foreseeable future. |
TAXES ON INCOME
TAXES ON INCOME | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
TAXES ON INCOME | NOTE 15:- TAXES ON INCOME a. Israeli taxation: 1. Measurement of taxable income: The Company has elected to file its tax return under the Israeli Income Tax Regulations 1986 (Principles Regarding the Management of Books of Account of Foreign Invested Companies and Certain Partnerships and the Determination of Their Taxable Income). Accordingly, starting tax year 2003, results of operations in Israel are measured in terms of earnings in U.S. dollar. 2. Tax benefits under the Law for the Encouragement of Capital Investments, 1959 (the "Law"): According to the Law, the Company is entitled to various tax benefits by virtue of the "approved enterprise" and/or "Benefited enterprise" status granted to part of their enterprises, as implied by this Law. The principal benefits by virtue of the Law asre: According to the provisions of the Law, the Company has chosen to enjoy the "Alternative" track. Under this track, the Company is tax exempt in the first two years of the benefit period and subject to tax at the reduced rate of 10%-25% for the remaining benefit period. For receiving the benefits under the alternative track, there is a minimum qualifying investment. This condition requires an investment in the acquisition of productive assets such as machinery and equipment which must be carried out within three years. The minimum qualifying investment required for setting up a plant is NIS 300 thousand. As for plant expansions, the minimum qualifying investment is the higher of NIS 300 thousand and an amount equivalent to the "qualifying percentage" of the value of the productive assets. Productive assets that are used by the plant but not owned by it will also be viewed as productive assets. The Company was eligible under the terms of minimum qualifying investment and elected 2006 and 2009 as its "years of election". The qualifying percentage of the value of the productive assets is as follows: The value of productive assets before the expansion (NIS in millions) The new proportion that the required investment bears to the value of productive assets Up to NIS 140 12% NIS 140 - NIS 500 7% More than NIS 500 5% The income qualifying for tax benefits under the alternative track is the taxable income of a company that has met certain conditions as determined by the Law ("a Benefited company"), and which is derived from an industrial enterprise. The Law specifies the types of qualifying income that is entitled to tax benefits under the alternative track with respect of an industrial enterprise, whereby income from an industrial enterprise includes, among others, revenues from the production and development of software products and revenues from industrial research and development activities performed for a foreign resident (and approved by the Head of the Administration of Industrial Research and Development). The benefit period starts with the first year the Benefited enterprise earns taxable income, provided that 14 years have not passed since the approval was granted and 12 years have not passed since the enterprise began operating. In respect of expansion programs pursuant to Amendment No. 60 to the Law, the benefit period starts at the later of the year elected and the first year the Company earns taxable income provided that 12 years have not passed since the beginning of the year of election. The respective benefit period has not yet begun. The above benefits are conditional upon the fulfillment of the conditions stipulated by the Law, regulations published thereunder and th+e letters of approval for the investments in the approved enterprises, as above. Non-compliance with the conditions may cancel all or part of the benefits and refund of the amount of the benefits, including interest. As of December 31, 2015, the management believes that the Company is in compliance with all of the aforementioned conditions. The Company is also a "foreign investors' company", as defined by the Capital Investments Law, and, as such, is entitled to a 10-year period of benefits and may be entitled to reduced tax rates of between 10% to 25% (depending on the percentage of foreign ownership in each tax year). The Company has three capital investment programs that have been granted approved enterprise status, under the Law and two programs under beneficiary enterprise status pursuant to the Amended Legislation . Income from sources other than the "Approved Enterprise" and "Benefited Enterprise" during the benefit period will be subject to the tax at the regular tax rate. Amendment to the Law for the Encouragement of Capital Investments, 1959 (Amendment 68): Effective January 1, 2011, the "Knesset" (Israeli Parliament) enacted the Law for Economic Policy for 2011 and 2012 (Amended Legislation), and among other things, amended the Law, ("the Amendment"). According to the Amendment, the benefit tracks in the Investment Law were modified and a flat tax rate applies to the Company's entire preferred income. The Company will be able to opt to apply (the waiver is non-recourse) the Amendment and from then on it will be subject to the amended tax rates as follows: 2011 and 2012 - 15%, 2013 and 2014 - 12.5% and in 2015 and thereafter - 12%. Amendment to the Law for the Encouragement of Capital Investments, 1959 (Amendment 71): On August 5, 2013, the "Knesset" issued the Law for Changing National Priorities (Legislative Amendments for Achieving Budget Targets for 2013 and 2014), 2013 which consists of Amendment 71 to the Law for the Encouragement of Capital Investment The Amendment also prescribes that any dividends distributed to individuals or foreign residents from the preferred enterprise's earnings as above will be subject to tax at a rate of 20%. The Company has evaluated the effect of the adoption of the Amendment on its financial statements, and as of the date of the approval of the financial statements, the Company believes that it will not apply the Amendment. Accordingly, the Company has not adjusted its deferred tax balances as of December 31, 2015. The Company may change its position in the future. 3. Tax benefits under the Law for the Encouragement of Industry (Taxes), 1969: The Encouragement Law, provides several tax benefits for industrial companies. An industrial company is defined as a company resident and located in Israel, at least 90% of the income of which in a given tax year exclusive of income from specified Government loans, capital gains, interest and dividends, is derived from an industrial enterprise owned by it. An industrial enterprise is defined as an enterprise whose major activity in a given tax year is industrial production activity. Management believes that the Company is currently qualified as an "industrial company" under the Encouragement Law and, as such, enjoys tax benefits, including: (1) deduction of purchase of know-how and patents and/or right to use a patent over an eight-year period; (2) the right to elect, under specified conditions, to file a consolidated tax return with additional related Israeli industrial companies and an industrial holding company; (3) accelerated depreciation rates on equipment and buildings; and (4) expenses related to a public offering on the Tel-Aviv Stock Exchange and on recognized stock markets outside of Israel, are deductible in equal amounts over three years. Eligibility for benefits under the Encouragement Law is not subject to receipt of prior approval from any Governmental authority. No assurance can be given that the Israeli tax authorities will agree that the Company qualifies, or, if the Company qualifies, that the Company will continue to qualify as an industrial company or that the benefits described above will be available to the Company in the future. 4. Tax rates: Taxable income of Israeli companies is subject to tax at the rate of 26.5% in the years ended December 31, 2014 and 2015 On January 4, 2016, the Israeli Parliament (the Knesset) approved the second and third readings of the amendment to the Income Tax Ordinance (Num 217), lowering the Israeli corporate tax rate from 26.5% to 25%. The effective tax rate payable by a company which is taxed under the Investment Law may be considerably lower (see also Note 15.a2 above). b. The income tax expense (benefit) for the years ended December 31, 2013, 2014 and 2015 consisted of the following: Year ended December 31, 2013 2014 2015 Current $ 2,967 $ (3,382 ) $ 3,895 Deferred 3,572 9,883 1,947 $ 6,539 $ 6,501 $ 5,842 Domestic (Israel) $ 1,150 $ 335 $ (606 ) Foreign 5,389 6,166 6,448 $ 6,539 $ 6,501 $ 5,842 c. Deferred income taxes: Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax assets and liabilities are as follows: December 31, 2014 2015 Deferred tax assets: Net operating loss carry forward $ 66,489 $ 64,476 Research and Development 7,702 5,147 Other temporary differences mainly relating to reserve and allowances 25,879 30,283 Deferred tax asset before valuation allowance 100,070 99,906 Valuation allowance (95,928 ) (97,899 ) Deferred tax asset 4,142 2,007 Deferred tax liabilities: Acquired intangibles (381 ) (185 ) Deferred tax asset, net $ 3,761 $ 1,822 In assessing the realization of deferred tax assets, management considers whether it is more likely than not that all or some portion of the deferred tax assets will not be realized in each tax jurisdiction. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences are deductible and net operating losses are utilized. Based on consideration of these factors, the Company recorded a valuation allowance amounting $ 108,292 and $ 97,899 at December 31, 2014 and 2015, respectively. d. Net operating loss carry forward and capital loss: The Company has accumulated net operating losses and capital loss for Israeli income tax purposes as of December 31, 2015 in the amount of approximately $ 198,760 and $ 7,987, respectively. The net operating losses may be carried forward and offset against taxable income in the future for an indefinite period. As of December 31, 2015, the Company's U.S. subsidiary had a U.S. federal net operating loss carry forward of approximately $ 1,400 that can be carried forward and offset against taxable income and that expires during the years 2017 to 2026. Utilization of U.S. net operating losses may be subject to substantial annual limitations due to the "change in ownership" provisions of the Internal Revenue Code of 1986 and similar state law provisions. The annual limitations may result in the expiration of net operating losses before utilization. As of December 31, 2015, the Company's Norwegian subsidiary had a net operating loss carry forward of approximately $ 12,600 that can be carried forward. The net operating losses may be carried forward and offset against taxable income in the future for an indefinite period. As of December 31, 2015, the Company's Brazilian subsidiary had a net operating loss carryforward of approximately $ 9,500 that can be carried forward. The net operating losses may be carried forward and offset against taxable income in the future for an indefinite period. The offset is limited to a maximum 30% of the annual taxable income. e. Income (Loss) before taxes is comprised as follows: Year ended December 31, 2013 2014 2015 Domestic $ (79,900 ) $ (81,227 ) $ 14,479 Foreign 38,961 11,249 (7,626 ) $ (40,939 ) $ (69,978 ) $ 6,853 f. Reconciliation of the theoretical tax expense to the actual tax expense: Reconciliation between the theoretical tax expense, assuming all income is taxed at the statutory tax rate applicable to income of the Company and the actual tax expense as reported in the Statement of Income (Loss) is as follows: Year ended December 31, 2013 2014 2015 Income (Loss) before taxes as reported in the consolidated statements of operations $ (40,939 ) $ (69,978 ) $ 6,853 Statutory tax rate 25 % 26.5 % 26.5 % Theoretical tax income on the above amount at the Israeli statutory tax rate $ (10,235 ) $ (18,544 ) $ 1,816 Non-deductible expenses 9,459 2,741 1,527 Non-deductible expenses related to employee stock options 955 886 430 Changes in valuation allowance, net 4,223 20,286 2,003 Other 2,137 1,132 66 Actual tax expense $ 6,539 $ 6,501 $ 5,842 g. The Company adopted the provisions of ASC topic 740-10, "Income Taxes". A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits is as follows: December 31, 2014 2015 Uncertain tax positions, beginning of year $ 9,145 $ 4,659 Decreases in tax positions for prior years (4,486 ) (3,772 ) Increases in tax positions for prior years - 2,875 Increase in tax position for current year - 3,130 Uncertain tax positions, end of year $ 4,659 $ 6,942 The Company has further accrued $ 1,370 due to interest and penalty related to uncertain tax positions as of December 31, 2015 . As of December 31, 2015, the Company is subject to income and indirect tax audits in Africa and Norway. |
SEGMENTS, CUSTOMERS AND GEOGRAP
SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION | 12 Months Ended |
Dec. 31, 2015 | |
Geographic Areas, Revenues from External Customers [Abstract] | |
SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION | NOTE 16:- SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION a. The Company applies ASC topic 280, "Segment Reporting", ("ASC 820"). The Company operates in one reportable segment (see note 1 for a brief description of the Company's business). The total revenues are attributed to geographic areas based on the location of the end customer. b. The following tables present total revenues for the years ended December 31, 2013, 2014 and 2015 and long-lived assets as of December 31, 2013, 2014 and 2015: Year ended December 31, 2013 2014 2015 Revenues from sales to unaffiliated customers: North America $ 35,584 $ 40,353 $ 45,934 Europe 62,914 58,537 48,637 Africa 73,735 55,954 34,642 Asia-Pacific and Middle East 40,731 42,095 31,929 India 26,646 92,066 105,990 Latin America 122,162 82,107 82,303 $ 361,772 $ 371,112 $ 349,435 Property and equipment, net, by geographic areas: Israel $ 30,759 $ 29,418 $ 26,127 Others 4,486 3,720 2,779 $ 35,245 $ 33,138 $ 28,906 c. Major customer data as a percentage of total revenues: In 2013 the company had revenues from a single customer group of affiliated companies that accounted for approximately 15.4% of total revenues. In 2014 the company had revenue from a single customer that accounted for approximately 16.1% of total revenues. In 2015 the Company had revenue from a single customer group of affiliated companies equaling 17.7% of total revenues. |
SELECTED STATEMENTS OF OPERATIO
SELECTED STATEMENTS OF OPERATIONS DATA | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
SELECTED STATEMENTS OF OPERATIONS DATA | NOTE 17:- SELECTED STATEMENTS OF OPERATIONS DATA a. Financial income, net: Year ended December 31, 2013 2014 2015 Financial income: Interest on marketable securities and bank deposits $ 1,310 $ 140 $ 101 Foreign currency translation differences and derivatives 1,599 1,567 1,273 2,909 1,707 1,374 Financial expenses: Bank charges and interest on loans (5,260 ) (7,691 ) (5,885 ) Foreign currency translation differences (*) (9,559 ) (28,491 ) (9,897 ) Impairment and amortization of premium on marketable securities (*) (2,108 ) (3,471 ) (330 ) (16,927 ) (39,653 ) (16,112 ) $ (14,018 ) $ (37,946 ) $ (14,738 ) (*) The amounts for the years ended December 2014 and 2015 include expenses of $ 20,452 and $1,634, respectively resulting from the devaluation of the local currency in Venezuela, pursuant to SICAD II, and the related re-measurement of certain assets denominated in or linked to the U.S. dollar due to restrictive government policies on payments in foreign currency. In addition for the year ended December 31, 2014 this amount also includes $ 2,170 related to certain transactions to expatriate cash from Venezuela and Argentina. b. Net income per share: The following table sets forth the computation of basic and diluted net earnings per share: Year ended December 31, 2013 2014 2015 Numerator: Numerator for basic and diluted net income (loss) per share - income (loss) available to shareholders of Ordinary shares $ (47,478 ) $ (76,479 ) $ 1,011 Denominator: Denominator for basic net income (loss) per share - weighted average number of shares 38,519,606 62,518,602 77,239,409 Effect of dilutive securities: Employee stock options and RSU *) - *) - 57,272 Denominator for diluted net income (loss) per share - adjusted weighted average number of shares 38,519,606 62,518,602 77,296,681 *) Antidilutive. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | NOTE 18:- FAIR VALUE MEASUREMENT: The Company's financial assets (liabilities) measured at fair value on a recurring basis, excluding accrued interest components, consisted of the following types of instruments: Year ended December 31, 2015 Fair value measurements using input type Level 2 Total Derivatives instruments $ (420 ) $ (420 ) Total liabilities $ (420 ) $ (420 ) Year ended December 31, 2014 Fair value measurements using input type Level 1 Level 2 Total Marketable securities $ 535 $ - $ 535 Derivatives instruments (net of tax effect of $ 36) - (13 ) (13 ) Total assets (liabilities) $ 535 $ (13 ) $ 522 |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY BALANCES AND TRANSACTIONS | NOTE 19:- RELATED PARTY BALANCES AND TRANSACTIONS Most of the related party balances and transactions are with related companies and principal shareholders. Yehuda Zisapel is a principal shareholder of the Company. Zohar Zisapel is the Chairman of the Board of Directors and a principal shareholder of the Company. Yehuda and Zohar Zisapel are brothers who do not have a voting agreement between them. Jointly or severally, they are also founders, directors and principal shareholders of several other companies that are known as the RAD-BYNET group. Members of the RAD-BYNET group provide the Company on an as-needed basis with information systems, marketing, and administrative services, the Company reimburses each company for its costs in providing these services. The aggregate amount of these expenses was approximately $ 1,197, $ 1,699 and $ 1,060 in 2013, 2014 and 2015, respectively. The Company leases its offices in Israel from real estate holding companies controlled by Yehuda and Zohar Zisapel. The leases for the majority of this facility expire in December 2017, with an option to terminate early after three years. . Additionally, the Company leases the U.S. subsidiary's office space from a real estate holding company controlled by Yehuda and Zohar Zisapel. The lease for this facility was terminated in April 2015. The aggregate amount of rent and maintenance expenses related to these properties was approximately $ 2,412 in 2013, $ 2,046 in 2014 and $ 2,182 in 2015. The Company has an OEM arrangement with RADWIN, a member of RAD-BYNET group, according to which the Company purchases RADWIN products which are then resold to our customers. In addition, the Company purchases certain inventory components from other members of the RAD-BYNET group, which are integrated into its products. The aggregate purchase price of these components was approximately $ 4,770, $ 4,149 and $ 2,911 for the years ended December 31, 2013, 2014 and 2015, respectively. The Company purchases certain property and equipment from members of the RAD-BYNET group, the aggregate purchase price of these assets was approximately $ 265, $ 100 and $ 51 for the years ended December 31, 2013, 2014 and 2015, respectively. Transactions with related parties: Year ended December 31, 2013 2014 2015 Cost of revenues $ 5,381 $ 4,613 $ 3,343 Research and development expenses $ 1,011 $ 1,244 $ 1,465 Selling and marketing expenses $ 1,189 $ 914 $ 737 General and administrative expenses $ 798 $ 1,123 $ 606 Purchase of property and equipment $ 265 $ 100 $ 51 Balances with related parties: December 31, 2014 2015 Trade payables, other accounts payable and accrued expenses $ 1,400 $ 1,915 |
NONRECOGNIZED SUBSEQUENT EVENTS
NONRECOGNIZED SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
NONRECOGNIZED SUBSEQUENT EVENTS | NOTE 20:- NON RECOGNIZED SUBSEQUENT EVENTS The Company uses the U.S. dollar as the functional currency for its operations in Venezuela. On February 17, 2016, the Venezuelan government announced changes to its foreign exchange controls. Based on this announcement, The Company expects to begin using the SIMADI rate in the first quarter of 2016 to remeasure its net bolivar-denominated monetary assets, despite the possibly limited availability of U.S. dollars (notwithstanding the fact that it has been described as a free floating rate) and although the new SIMADI rate may not necessarily be reflective of economic reality. Re-measurement of the CompanyÂ’s bolivar-denominated assets and liabilities due to changes in the exchange rate is recorded in earnings. At the expected minimum new SIMADI rate of 202 bolivars per U.S. dollar, the Company estimates that it will bear insignificant foreign currency loss in the first quarter of 2016, which could increase if the bolivar continues to devalue in the new SIMADI market. Additionally the Company expects its revenues and expenses will be translated at the SIMADI rate beginning in the first quarter of 2016. |
SIGNIFICANT ACCOUNTING POLICI29
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis Of Presentation | a. Basis of presentation: The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. ("U.S. GAAP"). |
Use Of Estimates | b. Use of estimates: The preparation of the financial statements and related disclosures in conformity with U.S. GAAP requires the Company to make judgments, assumptions, and estimates that affect the amounts reported in the consolidated financial statements and the accompanying notes. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes are reasonable under the circumstances, to determine the carrying values of assets and liabilities that are not readily apparent from other sources. To the extent there are material differences between the Company's estimates and the actual results, the Company's future consolidated results of operation may be affected. |
Financial Statements In U.S. Dollars | c. Financial statements in U.S. dollars: A majority of the revenues of the Company and certain of its subsidiaries are generated in U.S. dollars ("dollars"). In addition, a substantial portion of the Company's and certain of its subsidiaries' costs is incurred in dollars. Since management believes that the dollar is the currency of the primary economic environment in which the Company and its subsidiaries operate and considers the non-U.S. subsidiaries to be a direct, integral extension of the parent company's operations, the dollar is its functional and reporting currency. Accordingly, amounts in currencies other than U.S dollars have been re-measured in accordance with ASC topic 830, "Foreign Currency Matters" ("ASC 830") as follows: Monetary balances - at the exchange rate in effect on the balance sheet date. Consolidated statements of operations items - average exchange rates prevailing during the year. All exchange gains and losses from the re-measurement mentioned above are reflected in the statement of operations in financial expenses, net. The financial statements of the Company's Brazilian subsidiaries, whose functional currency is not the dollar, have been re-measured and translated into dollars. All amounts on the balance sheets have been translated into the dollar using the exchange rates in effect on the relevant balance sheet dates. All amounts in the statements of operations have been translated into the dollar using the average exchange rate for the relevant periods. The resulting translation adjustments are reported as a component of accumulated other comprehensive income (loss) in shareholders' equity. |
Principles Of Consolidation | d. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its subsidiaries ("the Group"). Intercompany balances and transactions including profits from intercompany sales not yet realized outside the Group, have been eliminated upon consolidation. |
Cash Equivalents | e. Cash equivalents: Cash equivalents include short-term, highly liquid investments that are readily convertible to cash with original maturities of three months or less. |
Short-Term Bank Deposit | f. Short-term bank deposits: Short-term bank deposits are deposits with maturities of more than three months and up to one year. The short-term bank deposits are in EURO and U.S. dollars and bear interest at an average rate of 0% of December 31, 2014. The short-term bank deposits are presented at their cost, including accrued interest. As of December 31, 2014, the Company had short-term bank deposits in the amount of $413. As of December 31, 2015, the Company had no short-term bank deposits. |
Inventories | g. Inventories: Inventories are stated at the lower of cost or market value . Inventory includes costs of products delivered to customers and not recognized as cost of sales, where revenues in the related arrangements were not recognized. Cost is determined for all types of inventory using the moving average cost method plus indirect costs. |
Property And Equipment | h. Property and equipment: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets, at the following annual rates: % Computers, manufacturing and peripheral equipment 6 - 33 Enterprise Resource Planning systems ("ERP") 10 Office furniture and equipment Mainly 15 Leasehold improvements Over the shorter of the term of the lease or useful life of the asset |
Impairment Of Long-Lived Asset | i. Impairment of long-lived assets: The Company's and its subsidiaries' long-lived assets are reviewed for impairment in accordance with ASC topic 360," Property Plant and Equipment", ("ASC 360"), whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the asset. If an asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. During 2013 and 2015, no impairment losses have been recognized. During 2014 the Company recognized impairment expenses in the amount of $ 2,367. |
Income Taxes | j. Income taxes: The Company and its subsidiaries account for income taxes in accordance with ASC topic 740, "Income Taxes", ("ASC 740"). This Statement prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and for carry forward losses deferred taxes are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company and its subsidiaries provide a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value if it is more likely than not that some portion or all of the deferred tax asset will not be realized. For more information see note 15c. The Company adopted ASC topic 740-10, "Income Taxes", ("ASC 740-10"). ASC 740-10 contains a two-step approach to recognizing and measuring uncertain tax positions accounted for in accordance with ASC 740. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company elected to classify interest expenses and penalties recognized in the financial statements as income taxes. For more information see note 15g. |
Goodwill And Other Intangible Assets | k. Goodwill and other intangible assets: Goodwill and certain other purchased intangible assets have been recorded in the Company's financial statements as a result of acquisitions. Goodwill represents excess of the costs over the net tangible and intangible assets acquired of businesses acquired under ASC topic 350, "Intangible - Goodwill and Other", ("ASC 350") according to which goodwill is not amortized. According to ASC 350, goodwill impairment testing is a two-step process. The first step involves comparing the fair value of a company's reporting units to their carrying amount. The Company elects to perform an annual impairment test of goodwill as of October 1 of each year, or more frequently if impairment indicators are present, (As of December 31, 2014 and 2015 the Company operates as one reporting unit). If the fair value of the reporting unit is determined to be greater than its carrying amount, there is no impairment. If the reporting unit's carrying amount is determined to be greater than the fair value, the second step must be completed to measure the amount of impairment, if any. Step two calculates the implied fair value of goodwill by deducting the fair value of all tangible and intangible assets, excluding goodwill, of the reporting unit from the fair value of the reporting unit as determined in step one. The implied fair value of the goodwill in this step is compared to the carrying value of goodwill. If the implied fair value of the goodwill is less than the carrying value of the goodwill, an impairment loss equivalent to the difference is recorded. Intangible assets that are considered to have definite useful life are amortized using the straight-line basis over their estimated useful lives, 7 years for Technology and Customer relations. The carrying amount of these assets is reviewed whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of these assets is measured by comparison of the carrying amount of the asset to the future undiscounted cash flows the asset is expected to generate. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. During 2014, the Company identified indicators of goodwill impairment and accordingly performed the two-step impairment which resulted in recording an impairment charge of its goodwill (see note 8). For the year ended December 31, 2013 and 2015, no impairment losses have been recognized. |
Revenue Recognition | l. Revenue recognition: The Company and its subsidiaries generate revenues from selling products to end users, distributors, system integrators and original equipment manufacturers ("OEM"). Revenues from product sales are recognized in accordance with ASC topic 605-10, "Revenue recognition" and with ASC 605-25 "Multiple-Element Arrangements", ("ASC 605"), when delivery has occurred, persuasive evidence of an arrangement exists, the vendor's fee is fixed or determinable, no future obligation exists and collectability is probable. When required, the Company complies with ASU 605-25, "Multiple-Deliverable Revenue Arrangements". This standard changes the requirements for establishing separate units of accounting in a multiple element arrangement by elimination of the residual method and requires the allocation of arrangement consideration to each deliverable to be based on using the relative selling price method. Pursuant to the guidance of ASU 605-25, when a sales arrangement contains multiple elements, such as equipment and services, the Company allocates revenues to each element based on a selling price hierarchy. The selling price for a deliverable is based on its vendor specific objective evidence (''VSOE'') if available, third party evidence (''TPE'') if VSOE is not available, or estimated selling price (''ESP'') if neither VSOE nor TPE is available. In multiple element arrangements, revenues are allocated to each separate unit of accounting for each of the deliverables based on the aforementioned selling price hierarchy. The Company considers the sale of equipment and its installation to be two separate units of accounting in the arrangement in which the installation is not essential to the functionality of the equipment, the equipment has value to the customer on a standalone basis and whenever the arrangement does not include a general right of return relative to the delivered item or delivery or performance of the undelivered item is considered probable and substantially in the control of the Company. In such arrangement, revenues from the sale of equipment are recognized upon delivery, if all other revenue recognition criteria are met and the installation revenues are deferred to the period in which such installation occurs (but not less than the amount contingent upon completion of installation, if any) using relative selling prices of each of the deliverables based on the aforementioned selling price hierarchy. The Company determines the selling price in its multiple-element arrangements by reviewing historical transactions, and considering internal factors including, but not limited to, pricing practices including discounting, margin objectives, and competition. The determination of estimated selling price ("ESP") is made through consultation with management, taking into consideration the pricing model and strategy. When sale arrangements include a customer acceptance provision, revenue is recognized when the Company has demonstrated that the criteria specified in the acceptance provision have been satisfied or as the acceptance provision has lapsed and deemed to be attained. To assess the probability of collection for revenue recognition purposes, the Company analyzes historical collection experience, current economic trends and the financial position of its customers. On the basis of these criterions, the Company concludes whether revenue recognition should be deferred and recognized on a cash basis. When applicable, the Company records a provision for estimated sale returns, stock rotation and credits granted to customers on products in the same period the related revenues are recorded in accordance with ASC 605. These estimates are based on historical sales returns, stock rotations and other known factors. Deferred revenue includes unearned amounts received in its arrangements, and amounts received from customers but not recognized as revenues due to the fact that these transactions did not meet the revenue recognition criteria. |
Research and development expenses, net | m. Research and development expenses, net: Research and development expenses, net are charged to the statement of operations as incurred. |
Warranty Costs | n. Warranty costs: The Company generally offers a standard limited warranty, including parts and labor for an average period of 1-3 years for its products. The Company estimates the costs that may be incurred under its basic limited warranty and records a liability in the amount of such costs at the time product revenue is recognized. Factors that affect the Company's warranty liability include the number of installed units, historical and anticipated rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary. The Company recorded income from decrease of warranty provision for the years ended December 31, 2013, 2014 and 2015 in the amount of $ 1,816, $ 133 and $ 139, respectively. As of December 31, 2014 and 2015, the warranty provision was $ 2,851 and $ 2,712, respectively. |
Derivative Instruments | o. Derivative instruments: The Company has instituted a foreign currency cash flow hedging program using foreign currency forward contracts ("derivative instruments") in order to hedge the exposure to variability in expected future cash flows resulting from changes in related foreign currency exchange rates. These transactions are designated as cash flow hedges, as defined under ASC topic 815, "Derivatives and Hedging". ASC 815 requires companies to recognize all of their derivative instruments as either assets or liabilities in the financial statements at fair value. The Company measured the fair value of the contracts in accordance with ASC topic 820, "Fair value Measurement and Disclosures" at Level 2 (see also note 2v). The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge or a hedge of a net investment in a foreign operation. For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss), net of taxes and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The non-effective portion of the derivative's change in fair value is recognized in earnings. For derivative instruments that are designated as fair value hedges to hedge foreign currency risks for our exposure denominated in currencies other than the U.S. dollar. Gains and losses on these forward contracts are recognized in earnings. The Company's cash flow hedging program is to hedge against the risk of overall changes in cash flows resulting from forecasted foreign currency salary payments during the year. The Company hedges portions of its forecasted expenses denominated in NIS with forward exchange contracts. These forward exchange contracts are designated as cash flow hedges, as defined by ASC 815 and Derivative Implementation Group No. G20, "Cash Flow Hedges: Assessing and Measuring the Effectiveness of a Purchased option Used in a Cash Flow Hedge" ("DIG 20") and are all effective. |
Concentrations Of Credit Risk | p. Concentrations of credit risk: Financial instruments that potentially subject the Company and its subsidiaries to concentrations of credit risk consist principally of cash and cash equivalents, short-term bank deposits, marketable securities, trade receivables and trade payables. The majority of the Company's cash and cash equivalents and short-term bank deposits are invested in U.S. dollar instruments with major banks worldwide. Such cash and cash equivalents and deposits in the United States may be in excess of insured limits and are not insured in other jurisdictions. Generally, these cash and cash equivalents and deposits may be redeemed upon demand and, therefore, bear minimal risk. Management believes that the financial institutions that hold the Company's and its subsidiaries' investments are institutions with high credit standing, and accordingly, minimal credit risk exists with respect to these investments. The Company's marketable securities consist of securities issued by debentures of Argentinean and Venezuelan government. As of December 31, 2013 and 2014, the CompanyÂ’s entire marketable securities portfolio was invested in debt securities of governmental institutions. The Company's investment policy limits the amount the Company may invest in any one type of investment or issuer, thereby reducing credit risk concentrations. The Company's trade receivables are geographically diversified and derived from sales to customers mainly in the Europe, Latin America and Asia. The Company and its subsidiaries generally do not require collateral; however, in certain circumstances, the Company and its subsidiaries may require letters of credit, additional guarantees or advance payments. The Company and its subsidiaries perform ongoing credit evaluations of their customers and insure certain trade receivables under credit insurance policies. |
Allowance For Doubtful Debt | q. Allowance for doubtful debt: An allowance for doubtful accounts is determined with respect to specific receivables, of which the collection may be doubtful. The Company charges off receivables when they are deemed uncollectible. |
Transfers Of Financial Assets | r. Transfers of financial assets: ASC 860 "Transfers and Servicing", ("ASC 860"), establishes a standard for determining when a transfer of financial assets should be accounted for as a sale. The Company's arrangements are such that the underlying conditions are met for the transfer of financial assets to qualify for accounting as a sale. The transfers of financial assets are typically performed by the factoring of receivables to three financial institutions. As of December 31, 2014 and 2015, the Company sold trade receivables to several different financial institutions in a total net amount of $ 13,061 and $ 14,443, respectively. Control and risk of those trade receivables were fully transferred in accordance with ASC 860. The agreements, pursuant to which the Company sells its trade receivables, are structured such that the Company (i) transfers the proprietary rights in the receivable from the Company to the financial institution; (ii) legally isolates the receivable from the Company's other assets, and presumptively puts the receivable beyond the lawful reach of the Company and its creditors, even in bankruptcy or other receivership; (iii) confers on the financial institution the right to pledge or exchange the receivable; and (iv) eliminates the Company's effective control over the receivable, in the sense that the Company is not entitled and shall not be obligated to repurchase the receivable other than in case of failure by the Company to fulfill its commercial obligation. |
Severance Pay | s. Severance pay: The Company's severance pay liability for its Israeli employees is calculated pursuant to Israel's Severance Pay Law based on the most recent salary of the employees multiplied by the number of years of employment, as of the balance sheet date. Employees are entitled to one month's salary for each year of employment or a portion thereof. The Company's liability for all of its employees in Israel is fully covered by monthly deposits with pension funds, insurance policies and an accrual. The value of the funds deposited into pension funds and insurance policies is recorded as an asset - severance pay fund - in the Company's balance sheet. The severance pay fund includes the deposited funds and accumulated adjustments to the Israeli Consumer Price Index up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israel's Severance Pay Law or labor agreements. The value of the deposited funds in insurance policies, is based on the cash surrendered value of these policies, and includes profits / losses. Starting April 2009, the Company's agreements with new employees in Israel are under section 14 of the Severance Pay Law -1963. The Company's contributions for severance pay shall replace its severance obligation, no additional calculations shall be conducted between the parties regarding the matter of severance pay and no additional payments shall be made by the Company to the employee. Further, the related obligation and amounts deposited on behalf of such obligation are not stated on the balance sheet, as the Company is legally released from obligation to employees once the deposit amounts have been paid. Severance expense for the years ended December 31, 2013, 2014 and 2015, amounted to approximately $ 2,588, $ 1,964 and $ 2,673, respectively. |
Pension Accrual | t. Pension accrual: The Company accounts, for its obligations for pension and other postretirement benefits, in accordance with ASC 715, "Compensation - Retirement Benefits". For more information refer to note 12. |
Accounting For Stock-Based Compensation | u. Accounting for stock-based compensation: ASC topic 718, "Compensation - Stock Compensation", ("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 estimates the fair value of stock options granted under ASC 718 using the binomial model with the following weighted-average assumptions for 2013, 2014 and 2015: December 31, 2013 2014 2015 Dividend yield 0% 0% 0% Volatility 41%-56% 49%-65% 48%-70% Risk free interest 0.1%-2.80% 0.1%-2.40% 0.1%-2.40% Early exercise multiple 1.60-1.90 2.20-2.80 2.60-3.40 Risk-free interest rates are based on the yield from U.S. Treasury zero-coupon bonds with a term equivalent to the contractual life of the options; volatility of price of the Company's shares based upon actual historical stock price movements. The Early exercise factor is representing the value of the underlying stock as a multiple of the exercise price of the option which, if achieved, results in exercise of the option. Early exercise multiple is based on actual historical exercise activity. The expected term of the options granted is derived from output of the option valuation model and represents the period of time that options granted are expected to be outstanding. The Company recognizes compensation expense using the accelerated method for all awards ultimately expected to vest. Estimated forfeitures are based on historical pre-vesting forfeitures and on management's estimates. ASC topic 718 requires forfeitures to be estimated and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. |
Fair Value Of Financial Instruments | v. Fair value of financial instruments: The Company applies ASC 820, "Fair Value Measurements and Disclosures". Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the inputs as follows: Level 1 - Valuations based on quoted prices in active markets for identical assets that the Company has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. Level 2 - Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of observable inputs can vary from investment to investment and is affected by a wide variety of factors, including, for example, the type of investment, the liquidity of markets and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment and the investments are categorized as Level 3 (see also note 18). The following methods and assumptions were used by the Company and its subsidiaries in estimating their fair value disclosures for financial instruments: The carrying amounts of cash and cash equivalents, short-term bank deposits, trade receivables, other accounts receivable, trade payables, and other accounts payable and accrued expenses approximate their fair values due to the short-term maturities of such instruments. The marketable securities fair value, based on quoted market prices, classified within Level 1 (see also note 3). The derivative instruments are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. |
Restructuring Cost | w. Restructuring costs: The Company accounts for restructuring activities in accordance to ASC topic 420, "Exit or Disposal Cost Obligations" and ASC 712 "Compensation-Nonretirement Postemployment Benefits" ("ASC 712"), which requires that a liability for a cost associated with an exit or disposal activity be recognized and measured, initially at fair value, only when the liability is incurred and for contractual postemployment benefits under ASC 712 when it is probable that the employees will be entitled to the benefits, the amount is estimable. For more information regarding impairment of long lived assets related to the restructuring plan, see note 2i. |
Comprehensive Income | x. Comprehensive income: The Company accounts for comprehensive income in accordance with ASC topic 220, "Comprehensive Income". This statement establishes standards for the reporting and display of comprehensive income and its components in a full set of general purpose financial statements. Comprehensive income generally represents all changes in stockholders' equity during the period except those resulting from investments by, or distributions to, stockholders. The components of AOCI, net of tax, were as follows: Unrealized Gains (Losses) on Available- for-Sale Investments Unrealized Gains (Losses) on Cash Flow Hedges Foreign Currency Translation Adjustments Total Balance as of January 1, 2015 $ 93 $ 100 $ (4,304 ) $ (4,111 ) Other comprehensive income (loss) before reclassifications (423 ) (153 ) (4,149 ) (4,725 ) Amounts reclassified from AOCI 330 (110 ) - 220 Other comprehensive income (loss) (93 ) (263 ) (4,149 ) (4,505 ) Balance as of December 31, 2015 - $ (163 ) $ (8,453 ) $ (8,616 ) The effects on net income of amounts reclassified from AOCI for the year ended December 31, 2015 derive from realized gains on Cash Flow Hedges, included in operating expenses. |
Treasury Shares | y. Treasury shares: The Company repurchased its ordinary shares on the open-market and holds such shares as Treasury shares. The Company presents the cost of repurchased treasury shares as a reduction of shareholders' equity. |
Basic And Diluted Net Earnings Per Share | aa. Basic and diluted net earnings per share: Basic net earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year. Diluted net earnings per share is computed based on the weighted average number of ordinary shares outstanding during each year, plus dilutive potential ordinary shares considered outstanding during the year, in accordance with ASC topic 260, "Earnings Per Share" ("ASC 260"). The total weighted average number of shares related to the outstanding options excluded from the calculations of diluted net earnings per share due to their anti-dilutive effect was 5,996,622, 6,895,891 and 5,679,468 for the years ended December 31, 2013, 2014 and 2015, respectively. |
Advertising expenses | ac. Advertising expenses: Advertising expenses are charged to the statements of operations as incurred. Advertising expenses for the years ended December 31, 2013, 2014 and 2015 amounted to $ 325, $ 235 and $ 350, respectively. |
Impact Of Recently Issued Accounting Standards | aa. Impact of recently issued Accounting Standards: In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09 (ASU 2014-09) "Revenue from Contracts with Customers." ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. As currently issued and amended, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, though early adoption is permitted for annual reporting periods beginning after December 15, 2016. We are currently in the process of evaluating the impact of the adoption of ASU 2014-09 on our consolidated financial statements, implementing accounting system changes related to the adoption, and considering additional disclosure requirements. In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern, which defines management’s responsibility to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures if there is substantial doubt about its ability to continue as a going concern. The pronouncement is effective for annual reporting periods ending after December 15, 2016 with early adoption permitted. In February 2015, the FASB issued Accounting Standards Update No. 2015-02 (ASU 2015-02) "Consolidation (Topic 810): Amendments to the Consolidation Analysis." ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. We will adopt this standard in the first quarter of 2016 on a retrospective basis. We do not expect the adoption of this standard to have a material impact on our consolidated statement of operations or consolidated balance sheet, but it may result in additional disclosures. In July 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2015-11 (ASU 2015-11) "Simplifying the Measurement of Inventory". ASU 2015-11 simplified the current guidance under which the Company should measure the inventory at the lower of cost or market. Under ASU 2015-11, inventory is measured at the “lower of cost and net realizable value,” which eliminates the other two options that currently exist for “market”: (1) replacement cost and (2) net realizable value less an approximately normal profit margin. ASU 2015-11 is effective for annual reporting periods beginning after December 15, 2016, and interim periods within reporting period beginning after December 15, 2017. Early adoption is permitted. The Company elected to adopt ASU 2015-11 during the year ended December 31, 2015. In November 2015, the FASB issued Accounting Standards Update No. 2015-17 (ASU 2015-17) “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes”. ASU 2015-17 simplifies the presentation of deferred income taxes by eliminating the separate classification of deferred income tax liabilities and assets into current and noncurrent amounts in the consolidated balance sheet statement of financial position. The amendments in the update require that all deferred tax liabilities and assets be classified as noncurrent in the consolidated balance sheet. The amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods therein and may be applied either prospectively or retrospectively to all periods presented. Early adoption is permitted. The Company has not yet adopted ASU 2015-17 and does not expect the adoption of this guidance to have a material impact on its consolidated financial position or results of operations. In February 2016, the FASB issued ASU 2016-02, “Leases” (Topic 842), whereby, lessees will be required to recognize for all leases at the commencement date a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. A modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements must be applied. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Companies may not apply a full retrospective transition approach. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018. Early application is permitted. The Company is evaluating the potential impact of this pronouncement. None of the new standards, interpretations and amendments, effective for the first time from February 2015, have had a material effect on the financial statement. |
SIGNIFICANT ACCOUNTING POLICI30
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule Of Annual Depreciation Rates | % Computers, manufacturing and peripheral equipment 6 - 33 Enterprise Resource Planning systems ("ERP") 10 Office furniture and equipment Mainly 15 Leasehold improvements Over the shorter of the term of the lease or useful life of the asset |
Schedule Of Stock Option Granted Assumptions | December 31, 2013 2014 2015 Dividend yield 0% 0% 0% Volatility 41%-56% 49%-65% 48%-70% Risk free interest 0.1%-2.80% 0.1%-2.40% 0.1%-2.40% Early exercise multiple 1.60-1.90 2.20-2.80 2.60-3.40 |
Schedule of Accumulated Other Comprehensive Income, Net | Unrealized Gains (Losses) on Available- for-Sale Investments Unrealized Gains (Losses) on Cash Flow Hedges Foreign Currency Translation Adjustments Total Balance as of January 1, 2015 $ 93 $ 100 $ (4,304 ) $ (4,111 ) Other comprehensive income (loss) before reclassifications (423 ) (153 ) (4,149 ) (4,725 ) Amounts reclassified from AOCI 330 (110 ) - 220 Other comprehensive income (loss) (93 ) (263 ) (4,149 ) (4,505 ) Balance as of December 31, 2015 - $ (163 ) $ (8,453 ) $ (8,616 ) |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Marketable Securities [Abstract] | |
Schedule of investments in marketable securities | 2014 2015 Amortized Gross unrealized Fair market Amortized Gross unrealized Fair market Cost gains value cost gains value Government bonds $ 535 $ - $ 535 $ - $ - $ - |
OTHER ACCOUNTS RECEIVABLE AND32
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Prepaid Expense and Other Assets [Abstract] | |
Schedule of other accounts receivable and prepaid expenses | December 31, 2014 2015 Government authorities $ 11,036 $ 6,940 Advances to suppliers 1,568 3,593 Deferred charges and prepaid expenses 6,554 6,462 Other 3,740 5,588 $ 22,898 $ 22,583 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule Of Inventory | December 31, 2014 2015 Raw materials $ 11,535 $ 6,984 Work in progress 1,473 252 Finished products 48,822 42,454 $ 61,830 $ 49,690 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule Of Property And Equpment, Net | December 31, 2014 2015 Cost: Computers, manufacturing, peripheral equipment $ 81,855 $ 86,244 Office furniture and equipment 2,876 2,903 Leasehold improvements 1,049 1,161 85,780 90,308 Accumulated depreciation: Computers, manufacturing, peripheral equipment 50,271 58,469 Office furniture and equipment 1,616 2,084 Leasehold improvements 755 849 52,642 61,402 Depreciated cost $ 33,138 $ 28,906 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule Of Intangible Assets | December 31, 2014 2015 Original amounts: Technology $ 8,600 $ 8,600 Trademarks 800 800 Customer relationships *) 8,023 7,970 17,423 17,370 Accumulated amortization: Technology 4,854 6,082 Trademarks 800 800 Customer relationships 6,699 7,296 12,353 14,178 Intangible assets, net $ 5,070 $ 3,192 *) Including functional currency translation adjustments related to Brazilian subsidiary. |
Schedule Of Estimated Future Amortization Expense | 2016 1,665 2017 1,527 $ 3.192 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill [Abstract] | |
Schedule Of Goodwill | Year ended December 31, 2014 Beginning balance $ 14,935 Impairment of Goodwill (1) (14,765 ) Functional currency translation adjustments and other adjustments (2) (170 ) Ending balance $ - (1) During the fourth quarter of 2014, the Company determined that sufficient indicators of potential impairment existed to require additional goodwill impairment analysis. These indicators included the trading value of the Company's stock at the time of the impairment test, coupled with existing market conditions and business trends. Based on the step one and step two analyses (see also note 2l), the Company recorded complete goodwill impairment charge in 2014, in the amount of $ 14,765. (2) Foreign currency translation differences resulting from goodwill allocated to subsidiaries, whose functional currency has been determined to be other than the U.S. dollar and adjustment related to provisions. |
OTHER ACCOUNTS PAYABLE AND AC37
OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Schedule Of Other Accounts Payable And Accrued Expenses | December 31, 2014 2015 Employees and payroll accruals $ 11,392 $ 11,352 Provision for warranty costs 2,851 2,712 Government authorities 3,602 4,820 Accrued expenses 16,337 5,035 Other accounts payables 3,066 3,133 $ 37,248 $ 27,052 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of Derivative Instruments | Loss recognized in Statements of Comprehensive loss Gain (loss) recognized in consolidated statements of operations December 31, Statement of Year ended December 31, 2015 Operations item 2013 2014 2015 Derivatives designated as hedging instruments: Foreign exchange option and forward contract $ 163 Operating expenses $ 1,189 $ (495 ) $ 110 Derivatives not designated as hedging instruments: Foreign exchange forward contracts - Financial expenses (2,150 ) (240 ) 705 Total $ 163 $ (961 ) $ (735 ) $ 815 December 31, Balance sheet 2014 2015 Derivatives designated as hedging instruments: Foreign exchange forward contracts "Other account receivables and prepaid expenses" $ 100 $ - "Other account payables and accrued expenses" $ - $ 163 "Other comprehensive income (loss)" $ 100 $ (163 ) Derivatives not designated as hedging instruments: Foreign exchange forward contracts and other derivatives "Other receivables and prepaid expenses" $ 26 $ 138 "Other account payables and accrued expenses" $ 139 $ 395 |
PENSION LIABILITIES, NET (Table
PENSION LIABILITIES, NET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Pension and Other Postretirement Defined Benefit Plans, Liabilities [Abstract] | |
Schedule Of Changes In Projected Benefit Obligations | December 31, 2014 2015 Accumulated benefit obligation $ 3,243 $ 2,362 Change in projected benefit obligation Projected benefit obligation at beginning of year $ 11,204 3,243 Liability assumed at the acquisition date of Nera Service cost 37 16 Interest cost 271 53 Plan settlements (7,007 ) - Expenses paid (548 ) (315 ) Exchange rates differences (963 ) (417 ) Actuarial loss (gain) 249 (218 ) Projected benefit obligation at end of year $ 3,243 $ 2,362 Change in plan assets Fair value of plan assets at beginning of year $ 7,124 $ - Actual return on plan assets 146 - Employer contributions to plan 18 - Plan settlements (7,053 ) - Exchange rates differences (235 ) - Fair value of plan assets at end of year $ - $ - |
Schedule Of Assumptions Used | December 31, 2014 2015 Weighted-average assumptions Discount rate 3.00 % 2,70% Rate of compensation increase 3.25 % 2,5% |
Schedule Of Net Benefit Costs | December 31, 2014 2015 Components of net periodic benefit cost Service cost $ 37 $ 145 Interest cost 271 467 Expected return on plan assets (146) - Exchange rates differences 15 - Net periodic benefit cost $ 177 $ 612 |
Schedule Of Expected Benefit Payments | December 31, 2014 2015 2015 $ 480 $ 315 2016 396 290 2017 241 240 2018 150 150 2019 and thereafter 692 700 $ 1,959 $ 1,695 |
COMMITMENTS AND CONTINGENT LI40
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Future Minimum Rental Commitments | Facilities Motor vehicles Total 2016 $ 3,484 $ 775 $ 4,259 2017 3,037 581 3,618 2018 489 379 868 2019 236 103 339 2020 and thereafter 324 5 329 $ 7,570 $ 1,843 $ 9,413 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation [Abstract] | |
Summary Of Stock Options And RSUs Granted | Year ended December 31, 2015 Number of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Outstanding at beginning of year 5,699,012 $ 7.46 $ - Granted 3,094,774 $ 1.19 Exercised (125,000 ) $ 1.03 Forfeited or expired (2,203,004 ) $ 6.78 Outstanding at end of the year 6,465,782 $ 4.81 4.76 $ 88 Options exercisable at end of the year 3,199,883 $ 8.14 4.13 $ 5 Vested and expected to vest 5,512,842 $ 5.41 4.66 $ 64 Year ended December 31, 2015 Number of RSUs Aggregate intrinsic value Outstanding at beginning of year 654,306 Granted - Exercised (380,998 ) Forfeited (173,859 ) Outstanding at end of the year 99,449 $ 120 Vested and expected to vest 81,691 $ 99 |
Summary Of Stock Options And RSUs Granted Separated Into Ranges Of Exercise Price | Exercise price (range) Options and RSUs outstanding as of December 31, 2015 Weighted average remaining contractual life (years) Weighted average exercise price Options and RSUs exercisable as of December 31, 2015 Remaining contractual life (years for exercisable options Weighted average exercise price $ $ $ RSUs 0.0 99,449 0.00 - 0.01-2.00 2,899,240 5.34 1.19 83,332 5.34 1.15 2.01-4.00 537,188 4.98 2.61 240,394 4.94 2.87 4.01-6.00 1,090,830 3.67 5.23 1,000,809 3.36 5.27 6.01-8.00 46,500 6.42 6.85 38,179 6.36 6.91 8.01-10.00 970,440 4.70 9.02 915,585 4.59 9.02 10.01-14.29 921,584 4.08 12.43 921,584 4.08 12.43 6,565,231 3,199,883 |
Schedule Of Equity-Based Compensation Expense | Year ended December 31, 2013 2014 2015 Cost of revenues $ 181 $ 215 $ 73 Research and development 1,009 1,625 736 Selling and marketing 1,334 674 495 General and administrative 1,298 831 321 Total stock-based compensation expenses *) $ 3,822 $ 3,345 $ 1,625 *) Including $ 674, $ 2,086 and $ 822 compensation expenses related to RSUs for the year ended December 31, 2013, 2014 and 2015, respectively |
TAXES ON INCOME (Tables)
TAXES ON INCOME (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule Of The Qualifying Percentage Of The Value Of The Productive Assets | The value of productive assets before the expansion (NIS in millions) The new proportion that the required investment bears to the value of productive assets Up to NIS 140 12% NIS 140 - NIS 500 7% More than NIS 500 5% |
Schedule Of Income Tax Expense (Benefit) | Year ended December 31, 2013 2014 2015 Current $ 2,967 $ (3,382 ) $ 3,895 Deferred 3,572 9,883 1,947 $ 6,539 $ 6,501 $ 5,842 Domestic (Israel) $ 1,150 $ 335 $ (606 ) Foreign 5,389 6,166 6,448 $ 6,539 $ 6,501 $ 5,842 |
Schedule Of Deferred Income Taxes | December 31, 2014 2015 Deferred tax assets: Net operating loss carry forward $ 66,489 $ 64,476 Research and Development 7,702 5,147 Other temporary differences mainly relating to reserve and allowances 25,879 30,283 Deferred tax asset before valuation allowance 100,070 99,906 Valuation allowance (95,928 ) (97,899 ) Deferred tax asset 4,142 2,007 Deferred tax liabilities: Acquired intangibles (381 ) (185 ) Deferred tax asset, net $ 3,761 $ 1,822 |
Schedule Of Income (Loss) Before Taxes | Year ended December 31, 2013 2014 2015 Domestic $ (79,900 ) $ (81,227 ) $ 14,479 Foreign 38,961 11,249 (7,626 ) $ (40,939 ) $ (69,978 ) $ 6,853 |
Schedule Of Income Tax Reconciliation | Year ended December 31, 2013 2014 2015 Income (Loss) before taxes as reported in the consolidated statements of operations $ (40,939 ) $ (69,978 ) $ 6,853 Statutory tax rate 25 % 26.5 % 26.5 % Theoretical tax income on the above amount at the Israeli statutory tax rate $ (10,235 ) $ (18,544 ) $ 1,816 Non-deductible expenses 9,459 2,741 1,527 Non-deductible expenses related to employee stock options 955 886 430 Changes in valuation allowance, net 4,223 20,286 2,003 Other 2,137 1,132 66 Actual tax expense $ 6,539 $ 6,501 $ 5,842 |
Schedule Of Changes In Unrecognized Tax Benefits | December 31, 2014 2015 Uncertain tax positions, beginning of year $ 9,145 $ 4,659 Decreases in tax positions for prior years (4,486 ) (3,772 ) Increases in tax positions for prior years - 2,875 Increase in tax position for current year - 3,130 Uncertain tax positions, end of year $ 4,659 $ 6,942 |
SEGMENTS, CUSTOMERS AND GEOGR43
SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Geographic Areas, Revenues from External Customers [Abstract] | |
Schedule Of Major Customer Data As Percentage Of Total Revenues | Year ended December 31, 2013 2014 2015 Revenues from sales to unaffiliated customers: North America $ 35,584 $ 40,353 $ 45,934 Europe 62,914 58,537 48,637 Africa 73,735 55,954 34,642 Asia-Pacific and Middle East 40,731 42,095 31,929 India 26,646 92,066 105,990 Latin America 122,162 82,107 82,303 $ 361,772 $ 371,112 $ 349,435 Property and equipment, net, by geographic areas: Israel $ 30,759 $ 29,418 $ 26,127 Others 4,486 3,720 2,779 $ 35,245 $ 33,138 $ 28,906 |
SELECTED STATEMENTS OF OPERAT44
SELECTED STATEMENTS OF OPERATIONS DATA (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
Schedule Of Financial Income, Net | Year ended December 31, 2013 2014 2015 Financial income: Interest on marketable securities and bank deposits $ 1,310 $ 140 $ 101 Foreign currency translation differences and derivatives 1,599 1,567 1,273 2,909 1,707 1,374 Financial expenses: Bank charges and interest on loans (5,260 ) (7,691 ) (5,885 ) Foreign currency translation differences (*) (9,559 ) (28,491 ) (9,897 ) Impairment and amortization of premium on marketable securities (*) (2,108 ) (3,471 ) (330 ) (16,927 ) (39,653 ) (16,112 ) $ (14,018 ) $ (37,946 ) $ (14,738 ) (*) The amounts for the years ended December 2014 and 2015 include expenses of $ 20,452 and $1,634, respectively resulting from the devaluation of the local currency in Venezuela, pursuant to SICAD II, and the related re-measurement of certain assets denominated in or linked to the U.S. dollar due to restrictive government policies on payments in foreign currency. In addition for the year ended December 31, 2014 this amount also includes $ 2,170 related to certain transactions to expatriate cash from Venezuela and Argentina. |
Schedule Of Net income per share | Year ended December 31, 2013 2014 2015 Numerator: Numerator for basic and diluted net income (loss) per share - income (loss) available to shareholders of Ordinary shares $ (47,478 ) $ (76,479 ) $ 1,011 Denominator: Denominator for basic net income (loss) per share - weighted average number of shares 38,519,606 62,518,602 77,239,409 Effect of dilutive securities: Employee stock options and RSU *) - *) - 57,272 Denominator for diluted net income (loss) per share - adjusted weighted average number of shares 38,519,606 62,518,602 77,296,681 *) Antidilutive. |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Assets And Liabilities Measured At Fair Value On Recurring Basis | Year ended December 31, 2015 Fair value measurements using input type Level 2 Total Derivatives instruments $ (420 ) $ (420 ) Total liabilities $ (420 ) $ (420 ) Year ended December 31, 2014 Fair value measurements using input type Level 1 Level 2 Total Marketable securities $ 535 $ - $ 535 Derivatives instruments (net of tax effect of $ 36) - (13 ) (13 ) Total assets (liabilities) $ 535 $ (13 ) $ 522 |
RELATED PARTY BALANCES AND TR46
RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Schedule Of Transaction With Related Parties | Year ended December 31, 2013 2014 2015 Cost of revenues $ 5,381 $ 4,613 $ 3,343 Research and development expenses $ 1,011 $ 1,244 $ 1,465 Selling and marketing expenses $ 1,189 $ 914 $ 737 General and administrative expenses $ 798 $ 1,123 $ 606 Purchase of property and equipment $ 265 $ 100 $ 51 |
Schedule Of Balances With Related Parties | December 31, 2014 2015 Trade payables, other accounts payable and accrued expenses $ 1,400 $ 1,915 |
GENERAL (Narratives) (Details)
GENERAL (Narratives) (Details) - USD ($) $ in Thousands | Mar. 31, 2015 | Aug. 31, 2014 | May. 31, 2014 | Nov. 30, 2013 | Jan. 19, 2011 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 28, 2016 | Jan. 01, 2016 | Oct. 01, 2015 | Apr. 01, 2015 |
General [Line Items] | ||||||||||||
Restructuring expenses | $ 1,225 | $ 6,816 | $ 9,345 | |||||||||
Maturity date | Mar. 14, 2016 | |||||||||||
Line of credit outstanding amount | $ 34,922 | |||||||||||
Maximum borrowing capacity under the credit agreement | 56,000 | |||||||||||
Total proceeds from public offering | $ 45,149 | $ 349,590 | 73,500 | 45,149 | 34,959 | |||||||
Maximum bank guarantees | 40,200 | |||||||||||
Net income (loss) | 1,011 | (76,479) | (47,478) | |||||||||
Net cash provided by operating activities | 16,121 | (32,279) | (29,512) | |||||||||
Line of credit reduction | 56,000 | |||||||||||
Cash and cash equivalents and short-term investments | 36,318 | |||||||||||
Venezuela [Member] | ||||||||||||
General [Line Items] | ||||||||||||
Cash and cash equivalents, short-term bank deposits and short and long-term marketable securities | 1,039 | |||||||||||
Elteck Asa [Member] | ||||||||||||
General [Line Items] | ||||||||||||
Proceed from previous acquisition, net of associated legal expenses | $ 16,800 | |||||||||||
Nera Networks [Member] | ||||||||||||
General [Line Items] | ||||||||||||
Consideration for all shares | $ 57,175 | |||||||||||
Line Of Credit [Member] | ||||||||||||
General [Line Items] | ||||||||||||
Maturity date | Jun. 30, 2016 | |||||||||||
Line of credit reduction | $ 50,000 | $ 4,000 | $ 5,000 | $ 5,000 | ||||||||
Line Of Credit [Member] | Minimum [Member] | ||||||||||||
General [Line Items] | ||||||||||||
Cash covenant amount | 20,000 | $ 15,000 | ||||||||||
Restructuring Plan 2013 [Member] | ||||||||||||
General [Line Items] | ||||||||||||
Restructuring expenses | 978 | $ 9,345 | ||||||||||
Restructuring reserve | 501 | |||||||||||
Restructuring Plan 2014 [Member] | ||||||||||||
General [Line Items] | ||||||||||||
Restructuring expenses | 1,225 | 5,838 | ||||||||||
Restructuring reserve | $ 42 | $ 2,427 |
SIGNIFICANT ACCOUNTING POLICI48
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)itemshares | Dec. 31, 2014USD ($)itemshares | Dec. 31, 2013USD ($)shares | |
Significant Accounting Policies [Line Items] | |||
Short-term bank deposits average interest rate | 0.00% | 0.00% | |
Income tax benefit realization threshold | 50.00% | ||
Intangible assets useful lives | 7 years | ||
Impairment of long-lived assets | $ 2,367 | $ 2,559 | |
Number of reporting units | item | 1 | ||
Number of additional research and development grants approved | item | 3 | ||
Warranty expense (income) | $ (139) | $ (133) | (1,816) |
Warranty provision | 2,712 | 2,851 | |
Allowance for doubtful accounts | 8,404 | 12,229 | |
Trade receivables sold | 14,443 | 13,061 | |
Severance expense | $ 2,673 | $ 1,964 | $ 2,588 |
Outstanding options excluded from the calculations of diluted net earnings per share due to their anti-dilutive effect | shares | 5,679,468 | 6,895,891 | 5,996,622 |
Advertising expenses | $ 350 | $ 235 | $ 325 |
Short-term bank deposits | $ 413 | ||
Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Warranty period | 3 years | ||
Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Warranty period | 1 year |
SIGNIFICANT ACCOUNTING POLICI49
SIGNIFICANT ACCOUNTING POLICIES (Schedule Of Annual Depreciation Rates) (Details) | Dec. 31, 2015 |
Computers, manufacturing and peripheral equipment [Member] | Minimum [Member] | |
Significant Accounting Policies [Line Items] | |
Depreciation rate | 6.00% |
Computers, manufacturing and peripheral equipment [Member] | Maximum [Member] | |
Significant Accounting Policies [Line Items] | |
Depreciation rate | 33.00% |
Enterprise Resource Planning systems ("ERP") [Member] | |
Significant Accounting Policies [Line Items] | |
Depreciation rate | 10.00% |
Office furniture and equipment [Member] | |
Significant Accounting Policies [Line Items] | |
Depreciation rate | 15.00% |
SIGNIFICANT ACCOUNTING POLICI50
SIGNIFICANT ACCOUNTING POLICIES (Schedule Of Stock Option Granted Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Volatility, minimum | 48.00% | 49.00% | 41.00% |
Volatility, maximum | 70.00% | 65.00% | 56.00% |
Risk free interest, minimum | 0.10% | 0.10% | 0.10% |
Risk free interest, maximum | 2.40% | 2.40% | 2.80% |
Early exercise multiple, minimum | 2.60 | 2.20 | 1.60 |
Early exercise multiple, maximum | 3.40 | 2.80 | 1.90 |
SIGNIFICANT ACCOUNTING POLICI51
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Accumulated Other Comprehensive Income, Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of December 31, 2014 | $ (4,111) | ||
Other comprehensive income (loss) before reclassifications | (4,725) | ||
Amounts reclassified from AOCI | (220) | ||
Other comprehensive income (loss) | (4,505) | $ (2,542) | $ (1,079) |
Balance as of December 31, 2015 | (8,616) | (4,111) | |
Unrealized Gains (Losses) on Available-for-Sale Investments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of December 31, 2014 | 93 | ||
Other comprehensive income (loss) before reclassifications | (423) | ||
Amounts reclassified from AOCI | 330 | ||
Other comprehensive income (loss) | $ (93) | ||
Balance as of December 31, 2015 | 93 | ||
Unrealized Gains (Losses) on Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of December 31, 2014 | $ 100 | ||
Other comprehensive income (loss) before reclassifications | (153) | ||
Amounts reclassified from AOCI | (110) | ||
Other comprehensive income (loss) | (263) | ||
Balance as of December 31, 2015 | (163) | 100 | |
Foreign Currency Translation Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of December 31, 2014 | (4,304) | ||
Other comprehensive income (loss) before reclassifications | $ (4,149) | ||
Amounts reclassified from AOCI | |||
Other comprehensive income (loss) | $ (4,149) | ||
Balance as of December 31, 2015 | $ (8,453) | $ (4,304) |
MARKETABLE SECURITIES (Narrativ
MARKETABLE SECURITIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Marketable Securities [Abstract] | |||
Maximum maturity period of government bonds | 1 year | ||
Proceeds from sale of marketable securities | $ 122 | $ 5,161 | $ 513 |
Loss (income) from sale of marketable securitites | $ (330) | $ 3,133 | $ 2,114 |
MARKETABLE SECURITIES (Schedule
MARKETABLE SECURITIES (Schedule Of Marketable Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair market Value | $ 535 | |
Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 535 | |
Gross unrealized gains | ||
Fair market Value | $ 535 |
OTHER ACCOUNTS RECEIVABLE AND54
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Prepaid Expense and Other Assets [Abstract] | ||
Government authorities | $ 6,940 | $ 11,036 |
Advances to suppliers | 3,593 | 1,568 |
Deferred charges and prepaid expenses | 6,462 | 6,554 |
Other | 5,588 | 3,740 |
Other accounts receivable and prepaid expenses, Total | $ 22,583 | $ 22,898 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 6,984 | $ 11,535 | |
Work in progress | 252 | 1,473 | |
Finished products | 42,454 | 48,822 | |
Inventories, Net | 49,690 | 61,830 | |
Inventories shipped to customers | 10,707 | 18,622 | |
Inventory write-off | 5,124 | 3,515 | $ 396 |
Inventory write-off provision | $ 5,033 | $ 5,238 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Cost | $ 90,308 | $ 85,780 | |
Accumulated depreciation | 61,402 | 52,642 | |
Depreciated cost | 28,906 | 33,138 | |
Depreciation expenses | $ 10,338 | 11,377 | $ 13,111 |
Impairment of long-lived assets related to restructuring plan | 2,367 | $ 2,559 | |
Changes of property and equipment | $ (1,013) | (982) | |
Computers, manufacturing, peripheral equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 86,244 | 81,855 | |
Accumulated depreciation | 58,469 | 50,271 | |
Office furniture and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 2,903 | 2,876 | |
Accumulated depreciation | 2,084 | 1,616 | |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 1,161 | 1,049 | |
Accumulated depreciation | $ 849 | $ 755 |
INTANGIBLE ASSETS, NET (Schedul
INTANGIBLE ASSETS, NET (Schedule Of Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Finite-Lived Intangible Assets [Line Items] | ||||
Original amount | $ 17,370 | $ 17,423 | ||
Accumulated amortization | 14,178 | 12,353 | ||
Intangible assets, net | $ 3,192 | 5,070 | ||
Useful lives | 7 years | |||
Amortization expense | $ 1,865 | 2,121 | $ 2,534 | |
Technology [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Original amount | 8,600 | |||
Accumulated amortization | 6,082 | |||
Trademarks [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Original amount | 800 | 800 | ||
Accumulated amortization | 800 | 800 | ||
Customer Relationships [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Original amount | [1] | 7,970 | 8,023 | |
Accumulated amortization | $ 7,296 | 6,699 | ||
Technology [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Original amount | 8,600 | |||
Accumulated amortization | $ 4,854 | |||
[1] | Including functional currency translation adjustments related to Brazilian subsidiary. |
INTANGIBLE ASSETS, NET (Sched58
INTANGIBLE ASSETS, NET (Schedule Of Estimated Future Amortization Expense) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
2,016 | $ 1,665 | |
2,017 | 1,527 | |
Intangible assets, net | $ 3,192 | $ 5,070 |
GOODWILL (Details)
GOODWILL (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Goodwill [Abstract] | |||||
Beginning balance | $ 14,935 | ||||
Impairment of goodwill | (14,765) | [1] | |||
Functional currency translation adjustments and other adjustment | [2] | $ (170) | |||
Ending balance | $ 14,935 | ||||
[1] | During the fourth quarter of 2014, the Company determined that sufficient indicators of potential impairment existed to require additional goodwill impairment analysis. These indicators included the trading value of the Company's stock at the time of the impairment test, coupled with existing market conditions and business trends. Based on the step one and step two analyses (see also note 2l), the Company recorded complete goodwill impairment charge in 2014, in the amount of $ 14,765. | ||||
[2] | Foreign currency translation differences resulting from goodwill allocated to subsidiaries, whose functional currency has been determined to be other than the U.S. dollar and adjustment related to provisions. |
OTHER ACCOUNTS PAYABLE AND AC60
OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Employees and payroll accruals | $ 11,352 | $ 11,392 |
Provision for warranty costs | 2,712 | 2,851 |
Government authorities | 4,820 | 3,602 |
Accrued expenses | 5,035 | 16,337 |
Other accounts payable | 3,133 | 3,066 |
Other accounts payable and accrued expenses | $ 27,052 | $ 37,248 |
LOAN AND CREDIT LINES (Narrativ
LOAN AND CREDIT LINES (Narrative) (Details) $ in Thousands | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($)item | Feb. 28, 2016USD ($) | Jan. 01, 2016USD ($) | Oct. 01, 2015USD ($) | Apr. 01, 2015USD ($) | Mar. 30, 2015USD ($) | Dec. 31, 2014USD ($) |
Debt Instrument [Line Items] | ||||||||
Principal amount | $ 35,000 | |||||||
Libor spread | 3.15% | |||||||
Libor update period | 3 months | |||||||
Accrued interest | $ 18 | $ 38 | ||||||
Number of quarterly debt installments | item | 17 | |||||||
Maximum borrowing capacity under the credit agreement | $ 56,000 | |||||||
Credit agreement, expiration date | Mar. 14, 2016 | |||||||
Line of credit reduction | $ 56,000 | |||||||
Line of credit outstanding amount | 34,922 | |||||||
Maturities principal amount | $ 2,072 | |||||||
Libor [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Libor spread | 3.15% | |||||||
Maximum [Member] | Libor [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Libor spread | 3.40% | |||||||
Minimum [Member] | Libor [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Libor spread | 3.21% | |||||||
Line Of Credit [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit agreement, expiration date | Jun. 30, 2016 | |||||||
Line of credit reduction | $ 50,000 | $ 4,000 | $ 5,000 | $ 5,000 | ||||
Line of credit covenant, allowed discounting activities of the main Indian customer long-term receivables | $ 54,000 | $ 20,000 | ||||||
Loan amount before start of gradual reduction | 63,500 | |||||||
Loan amount after reduction | 50,000 | |||||||
Minimum cash covenant before start of gradual reduction | 20,000 | |||||||
Minimum cash covenant after reduction | 15,000 | |||||||
Line of credit covenant, minimum total shareholders'' equity | $ 85,000 | |||||||
Line of credit covenant, reduction of the minimum total shareholders'' equity total assets ratio | 0.27 | |||||||
Line Of Credit [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Libor spread | 3.50% | |||||||
Letter of Credit [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity under the credit agreement | $ 40,200 |
DERIVATIVE INSTRUMENTS (Narrati
DERIVATIVE INSTRUMENTS (Narrative) (Details) ₪ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2015ILS (₪) | Dec. 31, 2014USD ($) | Dec. 31, 2014ILS (₪) | |
Outstanding forward exchange contracts | $ 31,686 | $ 29,987 | ||
Gain recognized in other comprehensive Income | $ 163 | |||
Forward exchange contract remaining maturity | 1 year | |||
Israel, New Shekels | ||||
Outstanding forward exchange contracts | ₪ | ₪ 122,407 | ₪ 116,942 |
DERIVATIVE INSTRUMENTS (Schedul
DERIVATIVE INSTRUMENTS (Schedule Of Derivative Instruments) (Statement of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Loss recognized in Statements of Comprehensive loss | $ 163 | ||
Gain (loss) recognized in consolidated statements of operations | 815 | $ (735) | $ (961) |
Foreign Exchange Option And Forward Contract [Member] | Derivatives designated as hedging instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Loss recognized in Statements of Comprehensive loss | 163 | ||
Foreign Exchange Option And Forward Contract [Member] | Derivatives designated as hedging instruments [Member] | Operating Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in consolidated statements of operations | $ 110 | (495) | 1,189 |
Foreign exchange forward contracts [Member] | Derivatives not designated as hedging instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Loss recognized in Statements of Comprehensive loss | |||
Foreign exchange forward contracts [Member] | Derivatives not designated as hedging instruments [Member] | Financial Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in consolidated statements of operations | $ (705) | $ (240) | $ (2,150) |
DERIVATIVE INSTRUMENTS (Sched64
DERIVATIVE INSTRUMENTS (Schedule Of Derivative Instruments) (Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Derivatives designated as hedging instruments [Member] | Foreign exchange forward contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other account receivables and prepaid expenses | $ 100 | |
Other account payables and accrued expenses | $ 163 | |
Other comprehensive income (loss) | (163) | 100 |
Derivatives not designated as hedging instruments [Member] | Foreign exchange forward contracts and other derivatives [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other account receivables and prepaid expenses | 138 | 26 |
Other account payables and accrued expenses | $ 395 | $ 139 |
PENSION LIABILITIES, NET (Narra
PENSION LIABILITIES, NET (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)item | Dec. 31, 2013USD ($) | |
Pension and Other Postretirement Defined Benefit Plans, Liabilities [Abstract] | |||
Number of participants | item | 1 | ||
Net periodic benefit cost, discount rate | 2.70% | ||
Actuarial gain (loss) | $ | $ 174 | $ (533) | $ (1,291) |
PENSION LIABILITIES, NET (Sched
PENSION LIABILITIES, NET (Schedule Of Changes In Projected Benefit Obligations) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||
Accumulated benefit obligation | $ 2,362 | $ 3,243 |
Projected benefit obligation at beginning of year | 3,243 | 11,204 |
Service cost | 145 | 37 |
Interest cost | 467 | 271 |
Plan settlements | 0 | (7,007) |
Expense paid | (315) | (548) |
Exchange rates differences | (417) | (963) |
Actuarial loss (gain) | (218) | 249 |
Projected benefit obligation at end of year | $ 2,362 | $ 3,243 |
PENSION LIABILITIES, NET (Sch67
PENSION LIABILITIES, NET (Schedule Of Changes In Fair Value Of Plan Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||
Fair value of plan assets at beginning of year | $ 7,124 | |
Actual return on plan assets | 146 | |
Employer contributions to plan | 18 | |
Plan settlements | (7,053) | |
Exchange rates differences | $ (235) | |
Fair value of plan assets at end of year |
PENSION LIABILITIES, NET (Sch68
PENSION LIABILITIES, NET (Schedule Of Assumptions Used) (Details) | Dec. 31, 2015 | Dec. 31, 2014 |
Pension and Other Postretirement Defined Benefit Plans, Liabilities [Abstract] | ||
Discount rate | 2.70% | 3.00% |
Rate of compensation increase | 2.50% | 3.25% |
PENSION LIABILITIES, NET (Summa
PENSION LIABILITIES, NET (Summary Of Components Of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||
Service cost | $ 145 | $ 37 |
Interest cost | $ 467 | 271 |
Expected return on plan assets | (146) | |
Exchange rates differences | 15 | |
Net periodic benefit cost | $ 612 | $ 177 |
PENSION LIABILITIES, NET (Sch70
PENSION LIABILITIES, NET (Schedule Of Expected Benefit Payments) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||
2,015 | $ 315 | $ 480 |
2,016 | 290 | 396 |
2,017 | 240 | 241 |
2,018 | 150 | 150 |
2019 and thereafter | 700 | 692 |
Expected benefit payments, total | $ 1,695 | $ 1,959 |
COMMITMENTS AND CONTINGENT LI71
COMMITMENTS AND CONTINGENT LIABILITIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Leased Assets [Line Items] | |||
Bank guarantees | $ 25,410 | $ 27,890 | |
Income from OCS grants | 1,318 | 1,092 | $ 599 |
Non cancelable purchase obligation | 1,638 | ||
Vehicles [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating lease expense | 1,175 | 1,174 | 1,568 |
Facilities [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating lease expense | $ 3,797 | $ 5,426 | $ 8,182 |
COMMITMENTS AND CONTINGENT LI72
COMMITMENTS AND CONTINGENT LIABILITIES (Schedule Of Future Minimum Lease Payments For Capital Leases) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
2,016 | $ 4,259 |
2,017 | 3,618 |
2,018 | 868 |
2,019 | 339 |
2020 and thereafter | 329 |
Operating Leases, Future Minimum Payments Due, Total | 9,413 |
Facilities [Member] | |
2,016 | 3,484 |
2,017 | 3,037 |
2,018 | 489 |
2,019 | 236 |
2020 and thereafter | 324 |
Operating Leases, Future Minimum Payments Due, Total | 7,570 |
Vehicles [Member] | |
2,016 | 775 |
2,017 | 581 |
2,018 | 379 |
2,019 | 103 |
2020 and thereafter | 5 |
Operating Leases, Future Minimum Payments Due, Total | $ 1,843 |
SHAREHOLDERS' EQUITY (Narrative
SHAREHOLDERS' EQUITY (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Aug. 31, 2014 | Nov. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Expiration period | 10 years | |||||
Ordinary shares reserved for issuance | 8,639,000 | |||||
Ordinary shares available for future grant | 1,884,425 | |||||
Average market value, trading day period | 30 days | 30 days | ||||
Total intrinsic value of options exercised | $ 480 | $ 573 | ||||
Unrecognized compensation cost, period for recognition | 11 months 1 day | |||||
Total unrecognized compensation cost | [1] | $ 1,625 | 3,345 | $ 3,822 | ||
Total proceeds from public offering | $ 45,149 | $ 349,590 | $ 73,500 | $ 45,149 | $ 34,959 | |
Additional Shares authorized | 2,850,000 | 1,600,000 | ||||
Stock issued, shares | 21,250,000 | 14,000,000 | ||||
Issuance expenses | $ 400 | $ 361 | ||||
Share price | $ 1.89 | $ 2.40 | ||||
Stock Option [Member] | ||||||
Weighted average grant date fair value of options granted | $ 0.54 | $ 0.96 | $ 1.99 | |||
Total unrecognized compensation cost | $ 1,049 | |||||
[1] | Including $ 674, $ 2,086 and $ 822 compensation expenses related to RSUs for the year ended December 31, 2013, 2014 and 2015, respectively |
SHAREHOLDERS' EQUITY (Summary O
SHAREHOLDERS' EQUITY (Summary Of Stock Options And RSUs Granted) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Number of options | |
Outstanding at beginning of year | 5,699,012 |
Granted | 3,094,774 |
Exercised | (125,000) |
Forfeited or expired | (2,203,004) |
Outstanding at end of year | 6,465,782 |
Options exercisable at end of the year | 3,199,883 |
Vested and expected to vest | 5,512,842 |
Weighted average exercise price | |
Outstanding at beginning of year | $ / shares | $ 7.46 |
Granted | $ / shares | 1.19 |
Exercised | $ / shares | 1.03 |
Forfeited or expired | $ / shares | 6.78 |
Outstanding at end of year | $ / shares | 4.81 |
Options exercisable at end of the year | $ / shares | 8.14 |
Vested and expected to vest | $ / shares | $ 5.41 |
Weighted-average remaining contractual term | |
Outstanding at end of year | 4 years 9 months 4 days |
Options exercisable at end of the year | 4 years 1 month 17 days |
Vested and expected to vest | 4 years 7 months 28 days |
Aggregate intrinsic value | |
Outstanding at end of the year | $ | $ 88 |
Options exercisable at end of the year | $ | 5 |
Vested and expected to vest | $ | $ 64 |
Restricted Stock Units R S U [Member] | |
Number of options | |
Outstanding at beginning of year | 654,306 |
Granted | |
Exercised | (380,998) |
Forfeited or expired | (173,859) |
Outstanding at end of year | 99,449 |
Vested and expected to vest | 81,691 |
Aggregate intrinsic value | |
Outstanding at end of the year | $ | $ 120 |
Vested and expected to vest | $ | $ 99 |
SHAREHOLDERS' EQUITY (Summary75
SHAREHOLDERS' EQUITY (Summary Of Stock Options And RSUs Granted Separated Into Ranges Of Exercise Price) (Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding options | shares | 6,565,231 |
Options and RSUs exercisable | shares | 3,199,883 |
RSUs 0.0 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, lower range limit | $ 0 |
Exercise price, upper range limit | $ 0 |
RSUs outstanding | shares | 99,449 |
Outstanding options, Weighted average exercise price | $ 0 |
Options and RSUs exercisable | shares | 0 |
0.01-2.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, lower range limit | $ 0.01 |
Exercise price, upper range limit | $ 2 |
Outstanding options | shares | 2,899,240 |
Outstanding options, Weighted average remaining contractual life (years) | 5 years 4 months 2 days |
Outstanding options, Weighted average exercise price | $ 1.19 |
Options and RSUs exercisable | shares | 83,332 |
Exercisable options, Remaining contractual life (in years) | 5 years 4 months 2 days |
Exercisable options, Weighted average exercise price | $ 1.15 |
2.01-4.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, lower range limit | 2.01 |
Exercise price, upper range limit | $ 4 |
Outstanding options | shares | 537,188 |
Outstanding options, Weighted average remaining contractual life (years) | 4 years 11 months 23 days |
Outstanding options, Weighted average exercise price | $ 2.61 |
Options and RSUs exercisable | shares | 240,394 |
Exercisable options, Remaining contractual life (in years) | 4 years 11 months 9 days |
Exercisable options, Weighted average exercise price | $ 2.87 |
4.01-6.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, lower range limit | 4.01 |
Exercise price, upper range limit | $ 6 |
Outstanding options | shares | 1,090,830 |
Outstanding options, Weighted average remaining contractual life (years) | 3 years 8 months 1 day |
Outstanding options, Weighted average exercise price | $ 5.23 |
Options and RSUs exercisable | shares | 1,000,809 |
Exercisable options, Remaining contractual life (in years) | 3 years 4 months 10 days |
Exercisable options, Weighted average exercise price | $ 5.27 |
6.01-8.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, lower range limit | 6.01 |
Exercise price, upper range limit | $ 8 |
Outstanding options | shares | 46,500 |
Outstanding options, Weighted average remaining contractual life (years) | 6 years 5 months 1 day |
Outstanding options, Weighted average exercise price | $ 6.85 |
Options and RSUs exercisable | shares | 38,179 |
Exercisable options, Remaining contractual life (in years) | 6 years 4 months 10 days |
Exercisable options, Weighted average exercise price | $ 6.91 |
8.01-10.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, lower range limit | 8.01 |
Exercise price, upper range limit | $ 10 |
Outstanding options | shares | 970,440 |
Outstanding options, Weighted average remaining contractual life (years) | 4 years 8 months 12 days |
Outstanding options, Weighted average exercise price | $ 9.02 |
Options and RSUs exercisable | shares | 915,585 |
Exercisable options, Remaining contractual life (in years) | 4 years 7 months 2 days |
Exercisable options, Weighted average exercise price | $ 9.02 |
10.01-14.29 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, lower range limit | 10.01 |
Exercise price, upper range limit | $ 14.29 |
Outstanding options | shares | 921,584 |
Outstanding options, Weighted average remaining contractual life (years) | 4 years 29 days |
Outstanding options, Weighted average exercise price | $ 12.43 |
Options and RSUs exercisable | shares | 921,584 |
Exercisable options, Remaining contractual life (in years) | 4 years 29 days |
Exercisable options, Weighted average exercise price | $ 12.43 |
SHAREHOLDERS' EQUITY (Schedule
SHAREHOLDERS' EQUITY (Schedule Of Equity-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Total stock-based compensation expense | [1] | $ 1,625 | $ 3,345 | $ 3,822 |
Stock Option [Member] | ||||
Total stock-based compensation expense | 1,049 | |||
Cost Of Sales [Member] | ||||
Total stock-based compensation expense | 73 | 215 | 1,009 | |
Research And Development Expense [Member] | ||||
Total stock-based compensation expense | 736 | 1,625 | 1,298 | |
Research And Development Expense [Member] | Restricted Stock Units R S U [Member] | ||||
Total stock-based compensation expense | 0 | 2,086 | 674 | |
Selling And Marketing Expense [Member] | ||||
Total stock-based compensation expense | 495 | 674 | 181 | |
General And Administrative Expense [Member] | ||||
Total stock-based compensation expense | $ 321 | $ 831 | $ 1,334 | |
[1] | Including $ 674, $ 2,086 and $ 822 compensation expenses related to RSUs for the year ended December 31, 2013, 2014 and 2015, respectively |
TAXES ON INCOME (Narrative) (De
TAXES ON INCOME (Narrative) (Details) ₪ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015ILS (₪) | Dec. 31, 2014USD ($) | Dec. 31, 2013 | Dec. 31, 2015USD ($)item | |
Taxes On Income [Line Items] | ||||
Period of tax exemption | 2 years | |||
Period in which investment must be made | 3 years | |||
Minimum qualifying investment | ₪ | ₪ 300 | |||
Experation period since approval | 14 years | |||
Experation period since enterpise began operating | 14 years | |||
Experation period since beginning of the year of election | 14 years | |||
Foreign investors'' company tax benefits period | 14 years | |||
Number of capital investment programs granted approved enterprise status | item | 3 | |||
Number of capital investment programs under beneficiary enterprise status | item | 2 | |||
Israeli tax rate | 26.50% | 26.50% | 25.00% | |
Valuation allowance | $ 95,928 | $ 97,899 | ||
Accrued interest and penalties | $ 1,370 | |||
Law For Encouragement Of Capital Investments [Member] | ||||
Taxes On Income [Line Items] | ||||
Amended tax rate 2011 and 2012 | 15.00% | |||
Amended tax rate 2013 and 2014 | 0.00% | |||
Amended tax rate 2015 and thereafter | 12.50% | |||
Amended tax rate 2014 and thereafter | 12.00% | |||
Tax rate on dividends distributed to individuals or foreign residents from the preferred enterprise's earnings | 16.00% | |||
Industrial company defined as a company resident in Israel based on minimum percentage of income derived from an industrial enterprise owned by it | 20.00% | |||
Law For Encouragement Of Capital Investments [Member] | Development Area [Member] | ||||
Taxes On Income [Line Items] | ||||
Amended tax rate 2014 and thereafter | 9.00% | |||
Law For Encouragement Of Industry Taxes [Member] | ||||
Taxes On Income [Line Items] | ||||
Industrial company defined as a company resident in Israel based on minimum percentage of income derived from an industrial enterprise owned by it | 90.00% | |||
Amortization period for know-how and patents | 8 years | |||
Amortization period for deferred stock issuance costs | 3 years | |||
NO [Member] | ||||
Taxes On Income [Line Items] | ||||
Net operating losses | $ 12,600 | |||
Internal Revenue Service I R S [Member] | ||||
Taxes On Income [Line Items] | ||||
Net operating losses | 1,400 | |||
Domestic Country [Member] | ||||
Taxes On Income [Line Items] | ||||
Net operating losses | 198,760 | |||
Israeli capital loss | 7,987 | |||
BR [Member] | ||||
Taxes On Income [Line Items] | ||||
Net operating losses | $ 9,500 | |||
Annual limit against taxable income | 30.00% | |||
Maximum [Member] | ||||
Taxes On Income [Line Items] | ||||
Foreign investors' company tax benefits pecent | 25.00% | |||
Minimum [Member] | ||||
Taxes On Income [Line Items] | ||||
Foreign investors' company tax benefits pecent | 10.00% |
TAXES ON INCOME (Schedule Of Th
TAXES ON INCOME (Schedule Of The Qualifying Percentage Of The Value Of The Productive Assets) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Up To Nis 140 [Member] | |
Taxes On Income [Line Items] | |
New proportion that the required investment bears to the value of productive assets | 12.00% |
Up To Nis 140 [Member] | Maximum [Member] | |
Taxes On Income [Line Items] | |
Value of productive assets before the expansion | $ 140 |
NIS 140 - NIS 500 [Member] | |
Taxes On Income [Line Items] | |
New proportion that the required investment bears to the value of productive assets | 7.00% |
NIS 140 - NIS 500 [Member] | Minimum [Member] | |
Taxes On Income [Line Items] | |
Value of productive assets before the expansion | $ 140 |
NIS 140 - NIS 500 [Member] | Maximum [Member] | |
Taxes On Income [Line Items] | |
Value of productive assets before the expansion | $ 500 |
More than NIS 500 [Member] | |
Taxes On Income [Line Items] | |
New proportion that the required investment bears to the value of productive assets | 5.00% |
More than NIS 500 [Member] | Minimum [Member] | |
Taxes On Income [Line Items] | |
Value of productive assets before the expansion | $ 500 |
TAXES ON INCOME (Schedule Of In
TAXES ON INCOME (Schedule Of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Current | $ 3,895 | $ (3,382) | $ 2,967 |
Deferred | 1,947 | 9,883 | 3,572 |
Income tax expense | 5,842 | 6,501 | 6,539 |
Domestic (Israel) | (606) | 335 | 1,150 |
Foreign | $ 6,448 | $ 6,166 | $ 5,389 |
TAXES ON INCOME (Schedule Of De
TAXES ON INCOME (Schedule Of Deferred Income Taxes) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carry forward | $ 64,476 | $ 66,489 |
Research and Development | 5,147 | 7,702 |
Other temporary differences mainly relating to reserve and allowances | 30,283 | 25,879 |
Deferred tax asset before valuation allowance | 99,906 | 100,070 |
Valuation allowance | (97,899) | (95,928) |
Deferred tax asset | 2,007 | 4,142 |
Acquired intangibles | (185) | (381) |
Deferred tax asset, Total | $ 1,822 | $ 3,761 |
TAXES ON INCOME (Schedule Of 81
TAXES ON INCOME (Schedule Of Income (Loss) Before Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 14,479 | $ (81,227) | $ (79,900) |
Foreign | (7,626) | 11,249 | 38,961 |
Income (loss) before taxes | $ 6,853 | $ (69,978) | $ (40,939) |
TAXES ON INCOME (Schedule Of 82
TAXES ON INCOME (Schedule Of Income Tax Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Income (Loss) before taxes as reported in the consolidated statements of operations | $ 6,853 | $ (69,978) | $ (40,939) |
Statutory tax rate | 26.50% | 26.50% | 25.00% |
Theoretical tax income on the above amount at the Israeli statutory tax rate | $ 1,816 | $ (18,544) | $ (10,235) |
Non-deductible expenses | 1,527 | 2,741 | 9,459 |
Non-deductible expenses related to employee stock options | 430 | 886 | 955 |
Changes in valuation allowance, net | 2,003 | 20,286 | 4,223 |
Other | 66 | 1,132 | 2,137 |
Income tax expense | $ 5,842 | $ 6,501 | $ 6,539 |
TAXES ON INCOME (Schedule Of Ch
TAXES ON INCOME (Schedule Of Changes In Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||
Uncertain tax positions, beginning of year | $ 4,659 | $ 9,145 |
Decreases in tax positions for prior years | (3,772) | $ (4,486) |
Increases in tax positions for prior years | 2,875 | |
Increase in tax position for current year | 3,130 | |
Uncertain tax positions, end of year | $ 6,942 | $ 4,659 |
SEGMENTS, CUSTOMERS AND GEOGR84
SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION (Schedule Of Revenues From Sales To Unaffiliated Customers) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of reportable segments | item | 1 | ||
Revenues | $ 349,435 | $ 371,112 | $ 361,772 |
Long-loved assets | 28,906 | 33,138 | 35,245 |
North America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 45,934 | 40,353 | 35,584 |
Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 48,637 | 58,537 | 62,914 |
Africa [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 34,642 | 55,954 | 73,735 |
Asia-Pacific and Middle East [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 31,929 | 42,095 | 40,731 |
India [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 105,990 | 92,066 | 26,646 |
Latin America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 82,303 | 82,107 | 122,162 |
Israel [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-loved assets | 26,127 | 29,418 | 30,759 |
Others [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-loved assets | $ 2,779 | $ 3,720 | $ 4,486 |
SEGMENTS, CUSTOMERS AND GEOGR85
SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION (Schedule Of Major Customer Data As Percentage Of Total Revenues) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Sales Revenue Goods Net [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of total revenues | 17.70% | 16.10% | 15.40% |
SELECTED STATEMENTS OF OPERAT86
SELECTED STATEMENTS OF OPERATIONS DATA (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Net Investment Income [Line Items] | ||
Loss resulting from devaluation of the local currency in Venezuela | $ 1,634 | $ 20,452 |
Others [Member] | ||
Net Investment Income [Line Items] | ||
Loss resulting from devaluation of the local currency in Venezuela | $ 2,170 |
SELECTED STATEMENTS OF OPERAT87
SELECTED STATEMENTS OF OPERATIONS DATA (Schedule Of Financial Income, Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Quarterly Financial Data [Abstract] | ||||
Interest on marketable securities and bank deposits | $ 101 | $ 140 | $ 1,310 | |
Foreign currency translation differences and derivatives | 1,273 | 1,567 | 1,599 | |
Total gross financial income | 1,374 | 1,707 | 2,909 | |
Bank charges and interest on loan | (5,885) | (7,691) | (5,260) | |
Foreign currency translation differences | [1] | (9,897) | (28,491) | (9,559) |
Impairment and amortization of premium on marketable securities | [1] | (330) | (3,471) | (2,108) |
Total gross financial expenses | (16,112) | (39,653) | (16,927) | |
Financial income, net | $ (14,738) | $ (37,946) | $ (14,018) | |
[1] | The amounts for the years ended December 2014 and 2015 include expenses of $ 24,771 and $1,634, respectively resulting from the devaluation of the local currency in Venezuela, pursuant to SICAD II, and the related re-measurement of certain assets denominated in or linked to the U.S. dollar due to restrictive government policies on payments in foreign currency. In addition for the year ended December 31, 2014 this amount also includes $ 2,170 related to certain transactions to expatriate cash from Venezuela and Argentina. |
SELECTED STATEMENTS OF OPERAT88
SELECTED STATEMENTS OF OPERATIONS DATA (Schedule Of Net income per share) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Numerator: | |||||
Numerator for basic and diluted net income (loss) per share - income (loss) available to shareholders of Ordinary shares | $ 1,011 | $ (76,479) | $ (47,478) | ||
Denominator: | |||||
Denominator for basic net income (loss) per share - weighted average number of shares | 77,239,409 | 62,518,602 | 38,519,606 | ||
Effect of dilutive securities: | |||||
Employee stock options and RSU | $ 57,272 | [1] | [1] | ||
Denominator for diluted net income (loss) per share - adjusted weighted average number of shares | 77,296,681 | 62,518,602 | 38,519,606 | ||
[1] | Antidilutive. |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 535 | |
Derivatives instruments | $ (420) | (13) |
Total assets (liabilities) | $ (420) | 522 |
Derivatives instruments, tax effect | $ 36 | |
Fair Value Inputs Level2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | ||
Derivatives instruments | $ (420) | $ (13) |
Total assets (liabilities) | $ (420) | (13) |
Fair Value Inputs Level1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 535 | |
Derivatives instruments | ||
Total assets (liabilities) | $ 535 |
RELATED PARTY BALANCES AND TR90
RELATED PARTY BALANCES AND TRANSACTIONS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Purchase Of Property And Equpment [Member] | |||
Related Party Transaction [Line Items] | |||
Expenses | $ 51 | $ 100 | $ 265 |
Rent And Maintenance [Member] | |||
Related Party Transaction [Line Items] | |||
Expenses | 2,182 | 2,046 | 2,412 |
Rad Bynet [Member] | |||
Related Party Transaction [Line Items] | |||
Reimbursements for services provided | 1,060 | 1,699 | 1,197 |
Rad Bynet [Member] | Purchase Of Property And Equpment [Member] | |||
Related Party Transaction [Line Items] | |||
Expenses | 51 | 100 | 265 |
Rad Bynet [Member] | Inventories [Member] | |||
Related Party Transaction [Line Items] | |||
Expenses | $ 4,770 | $ 2,911 | $ 4,149 |
RELATED PARTY BALANCES AND TR91
RELATED PARTY BALANCES AND TRANSACTIONS (Schedule Of Transaction With Related Parties) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | |||
Cost of revenues | $ 3,343 | $ 4,613 | $ 5,381 |
Research And Development Expense [Member] | |||
Related Party Transaction [Line Items] | |||
Expenses | 1,465 | 1,244 | 1,011 |
Selling And Marketing Expense [Member] | |||
Related Party Transaction [Line Items] | |||
Expenses | 737 | 914 | 1,189 |
General And Administrative Expense [Member] | |||
Related Party Transaction [Line Items] | |||
Expenses | 606 | 1,123 | 798 |
Purchase Of Property And Equpment [Member] | |||
Related Party Transaction [Line Items] | |||
Expenses | $ 51 | $ 100 | $ 265 |
RELATED PARTY BALANCES AND TR92
RELATED PARTY BALANCES AND TRANSACTIONS (Schedule Of Balances With Related Parties) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Related Party Transactions [Abstract] | ||
Trade payables, other accounts payable and accrued expenses | $ 1,915 | $ 1,400 |