Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 07, 2014 | Jun. 30, 2013 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'CEVA | ' | ' |
Entity Registrant Name | 'CEVA INC | ' | ' |
Entity Central Index Key | '0001173489 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 21,139,966 | ' |
Entity Public Float | ' | ' | $297,757,000 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $24,117 | $18,422 |
Short-term bank deposits | 41,947 | 47,229 |
Marketable securities (Note 2) | 68,464 | 69,343 |
Trade receivables (net of allowance for doubtful accounts of $9 and $0) | 5,629 | 6,232 |
Deferred tax assets (Note 12) | 3,457 | 2,065 |
Prepaid expenses and other current assets (Note 5) | 1,996 | 2,361 |
Total current assets | 145,610 | 145,652 |
Long-term assets: | ' | ' |
Long term bank deposits | 17,066 | 23,050 |
Severance pay fund | 7,215 | 6,130 |
Deferred tax assets (Note 12) | 955 | 1,178 |
Property and equipment, net (Note 4) | 1,616 | 1,392 |
Goodwill | 36,498 | 36,498 |
Investments in other companies | 3,367 | 2,433 |
Total long-term assets | 66,717 | 70,681 |
Total assets | 212,327 | 216,333 |
Current liabilities: | ' | ' |
Trade payables | 1,085 | 1,176 |
Deferred revenues | 623 | 865 |
Accrued expenses and other payables (Note 6) | 2,955 | 3,462 |
Accrued payroll and related benefits | 7,681 | 6,978 |
Income taxes payable, net | 1,833 | 1,626 |
Total current liabilities | 14,177 | 14,107 |
Long-term liabilities: | ' | ' |
Accrued severance pay | 7,255 | 6,158 |
Total long-term liabilities | 7,255 | 6,158 |
Stockholders' equity: | ' | ' |
Preferred stock: $0.001 par value: 5,000,000 shares authorized; none issued and outstanding | ' | ' |
Common stock: $0.001 par value: 60,000,000 shares authorized; 23,595,160 shares issued at December 31, 2012 and 2013. 22,187,367 and 21,181,730 shares outstanding at December 31, 2012 and 2013, respectively | 21 | 22 |
Additional paid in-capital | 204,415 | 198,495 |
Treasury stock at cost (1,407,793 and 2,413,430 shares of common stock at December 31, 2012 and 2013, respectively) | -41,005 | -25,694 |
Accumulated other comprehensive income (loss) | -81 | 360 |
Retained earnings | 27,545 | 22,885 |
Total stockholders' equity | 190,895 | 196,068 |
Total liabilities and stockholders' equity | $212,327 | $216,333 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts trade receivable | $0 | $9 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 23,595,160 | 23,595,160 |
Common stock, shares outstanding | 21,181,730 | 22,187,367 |
Treasury stock, shares | 2,413,430 | 1,407,793 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues: | ' | ' | ' |
Licensing and related revenue | $22,372 | $21,727 | $23,836 |
Royalties | 26,528 | 31,950 | 36,403 |
Total revenues | 48,900 | 53,677 | 60,239 |
Cost of revenues | 5,163 | 3,952 | 3,559 |
Gross profit | 43,737 | 49,725 | 56,680 |
Operating expenses: | ' | ' | ' |
Research and development, net | 21,216 | 20,243 | 21,543 |
Sales and marketing | 10,092 | 9,231 | 8,937 |
General and administrative | 7,670 | 7,884 | 7,639 |
Total operating expenses | 38,978 | 37,358 | 38,119 |
Operating income | 4,759 | 12,367 | 18,561 |
Financial income, net (Note 11) | 2,714 | 3,380 | 2,909 |
Income before taxes on income | 7,473 | 15,747 | 21,470 |
Income taxes (Note 12) | 788 | 2,062 | 2,908 |
Net income | $6,685 | $13,685 | $18,562 |
Basic net income per share | $0.30 | $0.60 | $0.80 |
Diluted net income per share | $0.30 | $0.59 | $0.77 |
Weighted average shares used to compute net income per share | ' | ' | ' |
Basic | 22,009 | 22,798 | 23,173 |
Diluted | 22,465 | 23,357 | 24,153 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $6,685 | $13,685 | $18,562 |
Available-for-sale securities: | ' | ' | ' |
Changes in unrealized gains (losses) | 65 | 1,407 | -1,084 |
Reclassification adjustments for gains included in net income | -379 | -184 | -54 |
Net change | -314 | 1,223 | -1,138 |
Cash flow hedges: | ' | ' | ' |
Changes in unrealized gains (losses) | 283 | 246 | -283 |
Reclassification adjustments for gains (losses) included in net income | -515 | 195 | -183 |
Net change | -232 | 441 | -466 |
Other comprehensive income (loss) before tax | -546 | 1,664 | -1,604 |
Income tax benefit (expense) related to components of other comprehensive income (loss) | 105 | -403 | 386 |
Other comprehensive income (loss), net of taxes | -441 | 1,261 | -1,218 |
Comprehensive income | $6,244 | $14,946 | $17,344 |
STATEMENTS_OF_CHANGES_IN_STOCK
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (accumulated deficit) |
In Thousands, except Share data | ||||||
Beginning balance at Dec. 31, 2010 | $168,468 | $23 | $176,838 | ' | $317 | ($8,710) |
Beginning balance (in shares) at Dec. 31, 2010 | ' | 22,524,449 | ' | ' | ' | ' |
Net income | 18,562 | ' | ' | ' | ' | 18,562 |
Other comprehensive income (loss) | -1,218 | ' | ' | ' | -1,218 | ' |
Equity-based compensation | 5,158 | ' | 5,158 | ' | ' | ' |
Tax benefit related to exercise of stock options | 1,290 | ' | 1,290 | ' | ' | ' |
Issuance of Common Stock upon exercise of stock-based awards, (in shares) | ' | 1,019,297 | ' | ' | ' | ' |
Issuance of Common Stock upon exercise of stock-based awards | 8,660 | 1 | 8,659 | ' | ' | ' |
Purchase of Treasury Stock, (in shares) | 0 | ' | ' | ' | ' | ' |
Ending balance at Dec. 31, 2011 | 200,920 | 24 | 191,945 | ' | -901 | 9,852 |
Ending balance (in shares) at Dec. 31, 2011 | ' | 23,543,746 | ' | ' | ' | ' |
Net income | 13,685 | ' | ' | ' | ' | 13,685 |
Other comprehensive income (loss) | 1,261 | ' | ' | ' | 1,261 | ' |
Equity-based compensation | 5,083 | ' | 5,083 | ' | ' | ' |
Tax benefit related to exercise of stock options | 672 | ' | 672 | ' | ' | ' |
Issuance of Common Stock upon exercise of stock-based awards, (in shares) | ' | 51,414 | ' | ' | ' | ' |
Issuance of Common Stock upon exercise of stock-based awards | 795 | ' | 795 | ' | ' | ' |
Purchase of Treasury Stock, (in shares) | -1,482,548 | -1,482,548 | ' | ' | ' | ' |
Purchase of Treasury Stock | -27,168 | -2 | ' | -27,166 | ' | ' |
Issuance of Treasury Stock upon exercise of stock-based awards (in shares) | ' | 74,755 | ' | ' | ' | ' |
Issuance of Treasury Stock upon exercise of stock-based awards | 820 | ' | ' | 1,472 | ' | -652 |
Accumulated other comprehensive income (loss), net | 360 | ' | ' | ' | ' | ' |
Ending balance at Dec. 31, 2012 | 196,068 | 22 | 198,495 | -25,694 | 360 | 22,885 |
Ending balance (in shares) at Dec. 31, 2012 | ' | 22,187,367 | ' | ' | ' | ' |
Net income | 6,685 | ' | ' | ' | ' | 6,685 |
Other comprehensive income (loss) | -441 | ' | ' | ' | -441 | ' |
Equity-based compensation | 5,920 | ' | 5,920 | ' | ' | ' |
Purchase of Treasury Stock, (in shares) | -1,257,004 | -1,257,004 | ' | ' | ' | ' |
Purchase of Treasury Stock | -19,816 | -1 | ' | -19,815 | ' | ' |
Issuance of Treasury Stock upon exercise of stock-based awards (in shares) | ' | 251,367 | ' | ' | ' | ' |
Issuance of Treasury Stock upon exercise of stock-based awards | 2,479 | ' | ' | 4,504 | ' | -2,025 |
Accumulated unrealized loss from available-for-sale securities, net of taxes | ' | ' | ' | ' | -65 | ' |
Accumulated unrealized loss from hedging activities, net of taxes | ' | ' | ' | ' | -16 | ' |
Accumulated other comprehensive income (loss), net | -81 | ' | ' | ' | -81 | ' |
Ending balance at Dec. 31, 2013 | $190,895 | $21 | $204,415 | ($41,005) | ($81) | $27,545 |
Ending balance (in shares) at Dec. 31, 2013 | ' | 21,181,730 | ' | ' | ' | ' |
STATEMENTS_OF_CHANGES_IN_STOCK1
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Statement Of Stockholders Equity [Abstract] | ' |
Accumulated unrealized loss from available-for-sale securities, taxes | $25 |
Accumulated unrealized loss from hedging activities, taxes | $0 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $6,685 | $13,685 | $18,562 |
Adjustments required to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation | 670 | 525 | 506 |
Equity-based compensation | 5,920 | 5,083 | 5,158 |
Gain from sale of property and equipment | ' | ' | -10 |
Realized gain, net on sale of available-for-sale marketable securities | -379 | -184 | -54 |
Amortization of premiums on available-for-sale marketable securities | 1,504 | 1,267 | 2,068 |
Unrealized foreign exchange gain | -49 | -21 | -46 |
Accrued interest on bank deposits | -245 | -1,842 | -1,070 |
Changes in operating assets and liabilities: | ' | ' | ' |
Decrease (increase) in trade receivables | 603 | -1,116 | 790 |
Decrease in prepaid expenses and other current assets | 146 | 856 | 3,338 |
Increase in deferred tax, net | -1,191 | -656 | -1,443 |
Increase (decrease) in trade payables | -102 | 594 | 7 |
Increase (decrease) in deferred revenues | -242 | -209 | 458 |
Increase (decrease) in accrued expenses and other payables | -394 | 282 | -589 |
Increase in accrued payroll and related benefits | 568 | 57 | 137 |
Increase in income taxes payable | 207 | 1,081 | 475 |
Excess tax benefit from equity-based compensation | ' | -672 | -1,290 |
Increase (decrease) in accrued severance pay, net | 6 | -106 | 85 |
Net cash provided by operating activities | 13,707 | 18,624 | 27,082 |
Cash flows from investing activities: | ' | ' | ' |
Purchase of property and equipment | -894 | -682 | -393 |
Proceeds from sale of property and equipment | ' | ' | 10 |
Investment in bank deposits | -40,190 | -64,695 | -64,709 |
Proceeds from bank deposits | 51,850 | 76,921 | 25,040 |
Investment in available-for-sale marketable securities | -64,760 | -60,863 | -42,291 |
Proceeds from maturity of available-for-sale marketable securities | 8,686 | 14,983 | 29,173 |
Proceeds from sale of available-for-sale marketable securities | 55,514 | 45,704 | 14,813 |
Investments in other companies | -934 | -1,533 | -900 |
Net cash provided by (used in) investing activities | 9,272 | 9,835 | -39,257 |
Cash flows from financing activities: | ' | ' | ' |
Purchase of Treasury Stock | -19,816 | -27,168 | ' |
Proceeds from exercise of stock-based awards | 2,479 | 1,615 | 8,660 |
Excess tax benefit from equity-based compensation | 0 | 672 | 1,290 |
Net cash provided by (used in) financing activities | -17,337 | -24,881 | 9,950 |
Effect of exchange rate movements on cash | 53 | -110 | 81 |
Increase (decrease) in cash and cash equivalents | 5,695 | 3,468 | -2,144 |
Cash and cash equivalents at the beginning of the year | 18,422 | 14,954 | 17,098 |
Cash and cash equivalents at the end of the year | 24,117 | 18,422 | 14,954 |
Cash paid during the year for: | ' | ' | ' |
Income and withholding taxes, net of refunds | $1,851 | $926 | $528 |
ORGANIZATION_AND_SIGNIFICANT_A
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||||
NOTE 1: ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||
Organization: | |||||||||||||
CEVA, Inc. (“CEVA” or the “Company”) was incorporated in Delaware on November 22, 1999. The Company was formed through the combination of Parthus Technologies plc (“Parthus”) and the digital signal processor (DSP) cores licensing business and operations of DSP Group, Inc. in November 2002. The Company had no business or operations prior to the combination. | |||||||||||||
CEVA licenses a family of programmable DSP cores and application-specific platforms, including communications (wireless, Wi-Fi and Bluetooth), computational photography, computer vision, audio, voice, Serial ATA (SATA) and Serial Attached SCSI (SAS). | |||||||||||||
CEVA’s technologies are licensed to leading semiconductor and original equipment manufacturer (OEM) companies in the form of intellectual property (IP). These companies design, manufacture, market and sell application-specific integrated circuits (“ASICs”) and application-specific standard products (“ASSPs”) based on CEVA’s technology to wireless, consumer electronics and automotive companies for incorporation into a wide variety of end products. | |||||||||||||
Basis of presentation: | |||||||||||||
The consolidated financial statements have been prepared according to U.S Generally Accepted Accounting Principles (“U.S. GAAP”). | |||||||||||||
Starting January 1, 2013, the Company consolidated other revenues within licensing revenues. Prior period numbers were conformed to the Company’s current period presentation of one revenue line titled “licensing and related revenue.” | |||||||||||||
Use of estimates: | |||||||||||||
The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||
Financial statements in U.S. dollars: | |||||||||||||
A majority of the revenues of the Company and its subsidiaries is generated in U.S. dollars (“dollars”). In addition, a portion of the Company and its subsidiaries’ costs are incurred in dollars. The Company’s management has determined that the dollar is the primary currency of the economic environment in which the Company and its subsidiaries principally operate. Thus, the functional and reporting currency of the Company and its subsidiaries is the dollar. | |||||||||||||
Accordingly, monetary accounts maintained in currencies other than the dollar are remeasured into dollars in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 830, “Foreign Currency Matters.” All transaction gains and losses from remeasurement of monetary balance sheet items are reflected in the consolidated statements of income as financial income or expenses, as appropriate, which is included in “financial income, net.” The foreign exchange losses arose principally on the Euro and the NIS liabilities as a result of the currency fluctuations of the Euro and the NIS against the dollar. | |||||||||||||
Principles of consolidation: | |||||||||||||
The consolidated financial statements incorporate the financial statements of the Company and all of its subsidiaries. All significant inter-company balances and transactions have been eliminated on consolidation. | |||||||||||||
Cash equivalents: | |||||||||||||
Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less from the date acquired. | |||||||||||||
Short-term bank deposits: | |||||||||||||
Short-term bank deposits are deposits with maturities of more than three months but less than one year from the balance sheet date. The deposits are presented at their cost, including accrued interest. The deposits bear interest annually at an average rate of 2.06%, 2.32% and 1.88% during 2011, 2012 and 2013, respectively. | |||||||||||||
Marketable securities: | |||||||||||||
Marketable securities consist of certificates of deposits, corporate bonds and government securities. The Company determines the appropriate classification of marketable securities at the time of purchase and re-evaluates such designation at each balance sheet date. In accordance with FASB ASC No. 320 “Investments- Debt and Equity Securities,” the Company classifies marketable securities as available-for-sale. Available-for-sale securities are stated at fair value, with unrealized gains and losses reported in accumulated other comprehensive income (loss), a separate component of stockholders’ equity, net of taxes. Realized gains and losses on sales of marketable securities, as determined on a specific identification basis, are included in financial income, net. The amortized cost of marketable securities is adjusted for amortization of premium and accretion of discount to maturity, both of which, together with interest, are included in financial income, net. The Company has classified all marketable securities as short-term, even though the stated maturity date may be one year or more beyond the current balance sheet date, because it may sell these securities prior to maturity to meet liquidity needs or as part of risk versus reward objectives. | |||||||||||||
The Company recognizes an impairment charge when a decline in the fair value of its investments in debt securities below the cost basis of such securities is judged to be other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Company’s intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. For securities that are deemed other-than-temporarily impaired (“OTTI”), the amount of impairment is recognized in the statement of income and is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income. The Company did not recognize OTTI on its marketable securities in 2011, 2012 and 2013. | |||||||||||||
Long-term bank deposits: | |||||||||||||
Long-term bank deposits are deposits with maturities of more than one year as of the balance sheet date. The deposits presented at their cost, including accrued interest. The deposits bear interest annually at an average rate of 2.28%, 2.40% and 2.14% during 2011, 2012 and 2013, respectively. | |||||||||||||
Property and equipment, net: | |||||||||||||
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, at the following annual rates: | |||||||||||||
% | |||||||||||||
Computers, software and equipment | 15-33 | ||||||||||||
Office furniture and equipment | 25-Jul | ||||||||||||
Leasehold improvements | 10 | ||||||||||||
(the shorter of the expected | |||||||||||||
lease term or useful | |||||||||||||
economic life) | |||||||||||||
The Company’s long-lived assets are reviewed for impairment in accordance with FASB ASC No. 360-10-35, “Impairment or Disposal of Long-Lived Assets,” whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of the carrying amount of an asset to be held and used is measured by a comparison of its carrying amount to the future undiscounted cash flows expected to be generated by such asset. If such asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of such asset exceeds its fair value. In determining the fair value of long-lived assets for purposes of measuring impairment, the Company’s assumptions include those that market participants would consider in valuations of similar assets. | |||||||||||||
An asset to be disposed is reported at the lower of its carrying amount or fair value less selling costs. No impairment was recorded in 2011, 2012 and 2013. | |||||||||||||
Goodwill: | |||||||||||||
The Company applies FASB ASC No. 350, “Intangibles—Goodwill and Other.” Goodwill is carried at cost and is not amortized but rather is tested for impairment at least annually or between annual tests in certain circumstances. The Company conducts its annual test of impairment for goodwill on October 1st of each year. | |||||||||||||
The Company operates in one operating segment and this segment comprises the only reporting unit. | |||||||||||||
ASC No. 350 prescribes a two-phase process for impairment testing of goodwill. The first phase screens for potential impairment, while the second phase (if necessary) measures impairment. Goodwill impairment is deemed to exist if the net book value of a reporting unit exceeds its estimated fair value. In such case, the second phase is then performed, and the Company measures impairment by comparing the carrying amount of the reporting unit’s goodwill to the implied fair value of that goodwill. An impairment loss is recognized in an amount equal to the excess. For each of the three years in the period ended December 31, 2013, no impairment of goodwill has been identified. | |||||||||||||
Investments in other companies: | |||||||||||||
The Company’s investments in two private companies, in which it holds minority equity interests, are presented at cost because the Company does not have significant influence over the underlying investees. The investments are reviewed periodically to determine if their values have been impaired and adjustments are recorded as necessary. During the years ended December 31, 2011, 2012 and 2013, no impairment loss was identified. | |||||||||||||
Revenue recognition: | |||||||||||||
The Company generates its revenues from (1) licensing intellectual property, which in certain circumstances is modified for customer-specific requirements, (2) royalty revenues, and (3) other revenues, which include revenues from support, training and sale of development systems. | |||||||||||||
The Company accounts for its IP license revenues and related services in accordance with FASB ASC No. 985-605, “Software Revenue Recognition.” Revenues are recognized when persuasive evidence of an arrangement exists and no further obligation exists, delivery has occurred, the license fee is fixed or determinable, and collection is reasonably assured. A license may be perpetual or time limited in its application. Revenue earned on licensing arrangements involving multiple elements are allocated to each element based on the “residual method” when vendor specific objective evidence (“VSOE”) of fair value exists for all undelivered elements and VSOE does not exist for one of the delivered elements. VSOE of fair value of the undelivered elements is determined based on the substantive renewal rate as stated in the agreement. | |||||||||||||
Extended payment terms in a licensing arrangement may indicate that the license fees are not deemed to be fixed or determinable. If the fee is not fixed or determinable, revenue is recognized as payments become due from the customer unless collection is not considered reasonably assured, then revenue is recognized as payments are collected from the customer, provided all other revenue recognition criteria have been met. | |||||||||||||
Revenues from license fees that involve significant customization of the Company’s IP to customer-specific specifications are recognized in accordance with the principles set out in FASB ASC No. 605-35-25, “Construction-Type and Production-Type Contracts Recognition,” using contract accounting on a percentage of completion method. The amount of revenue recognized is based on the total license fees under the agreement and the percentage of completion achieved. The percentage of completion is measured by the actual time incurred to date on the project compared to the total estimated project requirements, which corresponds to the costs related to earned revenues. Provisions for estimated losses on uncompleted contracts are made during the period in which such losses are first determined, in the amount of the estimated loss on the entire contract. | |||||||||||||
Revenues that are derived from the sale of a licensee’s products that incorporate the Company’s IP are classified as royalty revenues. Royalty revenues are recognized during the quarter in which the Company receives a report from the licensee detailing the shipment of products that incorporate the Company’s IP, which receipt is in the quarter following the licensee’s sale of such products to its customers. Royalties are calculated either as a percentage of the revenues received by the Company’s licensees on sales of products incorporating the Company’s IP or on a per unit basis, as specified in the agreements with the licensees. Non-refundable payments on account of prepaid units (prepaid royalties) are included within the Company’s licensing and related revenue line on the consolidated statements of income. | |||||||||||||
In addition to license fees, contracts with customers generally contain an agreement to provide for post contract support and training, which consists of telephone or e-mail support, correction of errors (bug fixing) and unspecified updates and upgrades. Fees for post contract support, which takes place after delivery to the customer, are specified in the contract and are generally mandatory for the first year. After the mandatory period, the customer may extend the support agreement on similar terms on an annual basis. The Company recognizes revenue for post contract support on a straight-line basis over the period for which technical support is contractually agreed to be provided to the licensee, typically 12 months. Revenues from training are recognized as the training is performed. | |||||||||||||
Revenues from the sale of development systems are recognized when title to the product passes to the customer and all other revenue recognition criteria have been met. | |||||||||||||
The Company usually does not provide rights of return. When rights of return are included in the license agreements, revenue is deferred until rights of return expire. | |||||||||||||
Deferred revenues include unearned amounts received under license agreements, unearned technical support and amounts paid by customers not yet recognized as revenues. | |||||||||||||
Cost of revenue: | |||||||||||||
Cost of revenue includes the costs of products, services and royalty expense payments to the Office of the Chief Scientist of Israel (refer to Note 14c for further details). Cost of product revenue includes materials and the portion of development costs associated with product development arrangements. Cost of service revenue includes salary costs for personnel engaged in services, training and customer support, and travel, telephone and other support costs. | |||||||||||||
Income taxes: | |||||||||||||
The Company recognizes income taxes under the liability method. It recognizes deferred income tax assets and liabilities for the expected future consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. These differences are measured using the enacted statutory tax rates that are expected to apply to taxable income for the years in which differences are expected to reverse. The effect of a change in tax rates on deferred income taxes is recognized in the statements of income during the period that includes the enactment date. | |||||||||||||
Valuation allowance is recorded to reduce the deferred tax assets to the net amount that the Company believes is more likely than not to be realized. The Company considers all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income and ongoing tax planning strategies, in assessing the need for a valuation allowance. | |||||||||||||
Tax benefits are recognized from uncertain tax positions only if the Company believes that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. Adjustments are made to these reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. The provision for income taxes includes the effects of any reserves that are considered appropriate, as well as the related net interest and penalties. | |||||||||||||
Research and development: | |||||||||||||
Research and development costs are charged to the consolidated statements of income as incurred. | |||||||||||||
Government grants: | |||||||||||||
Government grants received by the Company relating to categories of operating expenditures are credited to the consolidated statements of income during the period in which the expenditure to which they relate is charged. Royalty and non-royalty-bearing grants from the Office of the Chief Scientist of Israel for funding certain approved research and development projects are recognized at the time when the Company is entitled to such grants, on the basis of the related costs incurred, and included as a deduction from research and development expenses. | |||||||||||||
The Company recorded grants in the amounts of $2,518, $2,849 and $3,304 for the years ended December 31, 2011, 2012 and 2013, respectively. The Company’s Israeli subsidiary is obligated to pay royalties amounting to 3%-3.5% of the sales of certain products the development of which received grants from the Office of the Chief Scientist of Israel in previous years. The obligation to pay these royalties is contingent on actual sales of the products. Grants received from Enterprise Ireland, Invest Northern Ireland and the Office of the Chief Scientist of Israel may become repayable if certain criteria under the grants are not met. | |||||||||||||
Employee benefit plan: | |||||||||||||
Certain of the Company’s employees are eligible to participate in a defined contribution pension plan (the “Plan”). Participants in the Plan may elect to defer a portion of their pre-tax earnings into the Plan, which is run by an independent party. The Company makes pension contributions at rates varying up to 10% of the participant’s pensionable salary. Contributions to the Plan are recorded as an expense in the consolidated statements of income. | |||||||||||||
The Company’s U.S. operations maintain a retirement plan (the “U.S. Plan”) that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Participants in the U.S. Plan may elect to defer a portion of their pre-tax earnings, up to the Internal Revenue Service annual contribution limit. The Company matches 100% of each participant’s contributions up to a maximum of 6% of the participant’s base pay. Each participant may contribute up to 15% of base remuneration. Contributions to the U.S. Plan are recorded during the year contributed as an expense in the consolidated statements of income. | |||||||||||||
Total contributions for the years ended December 31, 2011, 2012 and 2013 were $311, $313 and $338, respectively. | |||||||||||||
Accrued severance pay: | |||||||||||||
The liability of CEVA’s Israeli subsidiary for severance pay is calculated pursuant to Israeli severance pay law for all Israeli employees, based on the most recent salary of each employee multiplied by the number of years of employment for that employee as of the balance sheet date. The Israeli subsidiary’s liability is fully provided for by monthly deposits with severance pay funds, insurance policies and an accrual. | |||||||||||||
The deposited funds include profits and losses accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israeli severance pay law or labor agreements. The value of these policies is recorded as an asset on the Company’s consolidated balance sheets. | |||||||||||||
Severance pay expenses, net of related income, for the years ended December 31, 2011, 2012 and 2013, were $1,037, $826 and $1,014, respectively. | |||||||||||||
Equity-based compensation: | |||||||||||||
The Company accounts for equity-based compensation in accordance with FASB ASC No. 718, “Stock Compensation” which requires the recognition of compensation expenses based on estimated fair values for all equity-based awards made to employees and nonemployees directors. | |||||||||||||
The Company estimates the fair value of equity-based awards on the date of grant using an option-pricing model. The value of the portion of an award that is ultimately expected to vest is recognized as an expense over the requisite service period in the Company’s consolidated statements of income. The Company recognizes compensation expenses for the value of its awards, which have graded vesting based on the accelerated attribution method over the requisite service period of each of the awards, net of estimated forfeitures. Estimated forfeitures are based on actual historical pre-vesting forfeitures and the rate is adjusted to reflect changes in facts and circumstances, if any. Estimated forfeiture rate will be revised if actual forfeitures differ from the initial estimates. | |||||||||||||
The Company uses the Monte-Carlo simulation model for options and stock appreciation rights (“SARs”) granted. The Monte-Carlo simulation model uses the assumptions noted below. Expected volatility was calculated based upon actual historical stock price movements over the most recent periods ending on the grant date, equal to the expected option and SAR term. The Company has historically not paid dividends and has no foreseeable plans to pay dividends. The risk-free interest rate is based on the yield from U.S. Treasury zero-coupon bonds with an equivalent term. The Monte-Carlo model also considers the suboptimal exercise multiple which is based on the average exercise behavior of the Company’s employees over the past years, the contractual term of the options and SARs, and the probability of termination or retirement of the holder of the options and SARs in computing the value of the options and SARs. | |||||||||||||
The fair value for the Company’s stock options and SARs (other than share issuances in connection with the employee stock purchase plan, as detailed below) granted to employees and non-employees directors was estimated using the following assumptions: | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Expected dividend yield | 0% | 0% | 0% | ||||||||||
Expected volatility | 39%-58% | 43%-58% | 38%-54% | ||||||||||
Risk-free interest rate | 0.1%-2.7% | 0.1%-1.2% | 0.1%-2.5% | ||||||||||
Expected forfeiture (employees) | 10% | 10% | 10% | ||||||||||
Expected forfeiture (executives) | 5% | 5% | 5% | ||||||||||
Contractual term of up to | 10 years | 10 years | 10 years | ||||||||||
Suboptimal exercise multiple (employees) | 2.0-2.1 | 2.1 | 2.1 | ||||||||||
Suboptimal exercise multiple (executives) | 2.3 | 2.4 | 2.4 | ||||||||||
The fair value for rights to purchase shares of common stock under the Company’s employee stock purchase plan was estimated on the date of grant using the following assumptions: | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Expected dividend yield | 0% | 0% | 0% | ||||||||||
Expected volatility | 41%-50% | 41%-61% | 34%-53% | ||||||||||
Risk-free interest rate | 0.2%-1.8% | 0.1%-0.6% | 0.1%-0.2% | ||||||||||
Expected forfeiture | 0% | 0% | 0% | ||||||||||
Contractual term of up to | 24 months | 24 months | 24 months | ||||||||||
During the years ended December 31, 2011, 2012 and 2013, the Company recognized equity-based compensation expense related to stock options, SARs and employee stock purchase plan as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Cost of revenue | $ | 239 | $ | 241 | $ | 312 | |||||||
Research and development, net | 1,934 | 1,810 | 2,014 | ||||||||||
Sales and marketing | 1,094 | 1,036 | 1,311 | ||||||||||
General and administrative | 1,891 | 1,996 | 2,283 | ||||||||||
Total equity-based compensation expense | $ | 5,158 | $ | 5,083 | $ | 5,920 | |||||||
As of December 31, 2013, there was $5,630 of unrecognized compensation expense related to unvested equity awards. This amount is expected to be recognized over a weighted-average period of 1.4 years. To the extent the actual forfeiture rate is different from what the Company has estimated, equity-based compensation related to these awards will be different from the Company’s expectations. | |||||||||||||
FASB ASC No. 718 requires the cash flows resulting from the tax deductions in excess of the equity-based compensation costs recognized for those equity-based awards to be classified as financing cash flows. During the years ended December 31, 2011, 2012 and 2013, the Company classified $1,290, $672 and $0, respectively, of excess tax benefit from equity-based compensation as financing cash flows. | |||||||||||||
Fair value of financial instruments: | |||||||||||||
The carrying amount of cash, cash equivalents, short term bank deposits, trade receivables, other accounts receivable, trade payables and other accounts payable approximates fair value due to the short-term maturities of these instruments. Marketable securities and derivative instruments are carried at fair value. See Note 3 for more information. | |||||||||||||
Comprehensive income (loss): | |||||||||||||
The Company accounts for comprehensive income (loss) in accordance with FASB ASC No. 220, “Comprehensive Income.” This statement establishes standards for the reporting and display of comprehensive income (loss) and its components in a full set of general purpose financial statements. Comprehensive income (loss) generally represents all changes in stockholders’ equity during the period except those resulting from investments by, or distributions to, stockholders. The Company determined that its items of other comprehensive income (loss) relate to unrealized gains and losses, net of tax, on hedging derivative instruments and marketable securities. | |||||||||||||
Concentration of credit risk: | |||||||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, bank deposits, marketable securities, foreign exchange contracts and trade receivables. The Company invests its surplus cash in cash deposits and marketable securities in financial institutions and has established guidelines relating to diversification and maturities to maintain safety and liquidity of the investments. | |||||||||||||
The majority of the Company’s cash and cash equivalents are invested in high grade certificates of deposits with major U.S., European and Israeli banks. Generally, cash and cash equivalents and bank deposits may be redeemed on demand and therefore minimal credit risk exists with respect to them. Nonetheless, deposits with these banks exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance limits or similar limits in foreign jurisdictions, to the extent such deposits are even insured in such foreign jurisdictions. While the Company monitors on a systematic basis the cash and cash equivalent balances in the operating accounts and adjust the balances as appropriate, these balances could be impacted if one or more of the financial institutions with which the Company deposit its funds fails or is subject to other adverse conditions in the financial or credit markets. To date the Company has experienced no loss of principal or lack of access to its invested cash or cash equivalents; however, the Company can provide no assurance that access to its invested cash and cash equivalents will not be affected if the financial institutions in which the Company holds its cash and cash equivalents fail. Furthermore, the Company holds an investment portfolio consisting principally of corporate bonds. The Company intends, and has the ability, to hold such investments until recovery of temporary declines in market value or maturity; accordingly, as of December 31, 2013, the Company believes the losses associated with its investments are temporary and no impairment loss was recognized during 2013. However, the Company can provide no assurance that it will recover declines in the market value of its investments. | |||||||||||||
The Company is exposed primarily to fluctuations in the level of U.S. interest rates. To the extent that interest rates rise, fixed interest investments may be adversely impacted, whereas a decline in interest rates may decrease the anticipated interest income for variable rate investments. | |||||||||||||
The Company is exposed to financial market risks, including changes in interest rates. The Company typically does not attempt to reduce or eliminate its market exposures on its investment securities because the majority of its investments are short-term. | |||||||||||||
The Company’s trade receivables are geographically diverse and are derived from sales to OEMs, mainly in the United States, Europe and Asia. Concentration of credit risk with respect to trade receivables is limited by credit limits, ongoing credit evaluation and account monitoring procedures. The Company performs ongoing credit evaluations of its customers and to date has not experienced any material losses. The Company makes judgments on its ability to collect outstanding receivables and provides allowances for the portion of receivables for which collection becomes doubtful. Provisions are made based upon a specific review of all significant outstanding receivables. In determining the provision, the Company considers the expected collectability of receivables. Allowance for doubtful accounts amounted to $9 and $0 as of December 31, 2012 and 2013, respectively. | |||||||||||||
The Company has no off-balance-sheet concentration of credit risk. | |||||||||||||
Derivative and hedging activities: | |||||||||||||
The Company follows the requirements of FASB ASC No. 815,” Derivatives and Hedging” which requires companies to recognize all of their derivative instruments as either assets or liabilities in the statement of financial position at fair value. The accounting for changes in 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 transaction and further, on the type of hedging transaction. 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. Due to the Company’s global operations, it is exposed to foreign currency exchange rate fluctuations in the normal course of its business. The Company’s treasury policy allows it to offset the risks associated with the effects of certain foreign currency exposures through the purchase of foreign exchange forward or option contracts (“Hedging Contracts”). The policy, however, prohibits the Company from speculating on such Hedging Contracts for profit. To protect against the increase in value of forecasted foreign currency cash flow resulting from salaries paid in currencies other than the U.S. dollar during the year, the Company instituted a foreign currency cash flow hedging program. The Company hedges portions of the anticipated payroll of its non-U.S. employees denominated in the currencies other than the U.S. dollar for a period of one to twelve months with Hedging Contracts. Accordingly, when the dollar strengthens against the foreign currencies, the decline in present value of future foreign currency expenses is offset by losses in the fair value of the Hedging Contracts. Conversely, when the dollar weakens, the increase in the present value of future foreign currency expenses is offset by gains in the fair value of the Hedging Contracts. These Hedging Contracts are designated as cash flow hedges. | |||||||||||||
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) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Any gain or loss on a derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item is recognized in current earnings during the period of change. As of December 31, 2012 and 2013, the notional principal amount of the Hedging Contracts to sell U.S. dollars held by the Company was $5,400 and $720, respectively. | |||||||||||||
Other derivative instruments that are not qualified as hedging instruments consist of forward contracts that the Company uses to hedge monetary assets denominated in currencies other than the U.S. dollar. Gains and losses on these contracts as well as related costs are included in financial income, net, along with the gains and losses of the related hedged item. As of December 31, 2012 and 2013, the notional principal amount of the foreign exchange contracts to sell NIS held by the Company was $2,610 and $0, respectively. | |||||||||||||
Advertising expenses: | |||||||||||||
Advertising expenses are charged to consolidated statements of income as incurred. Advertising expenses for the years ended December 31, 2011, 2012 and 2013 were $570, $791 and $660, respectively. | |||||||||||||
Treasury stock: | |||||||||||||
The Company repurchases its common stock from time to time pursuant to a board-authorized share repurchase program through open market purchases and repurchase plans in accordance with Rules 10b5-1 and 10b-18 of the United States Securities Exchange Act of 1934, as amended. | |||||||||||||
The repurchases of common stock are accounted for as treasury stock, and result in a reduction of stockholders’ equity. When treasury shares are reissued, the Company accounts for the reissuance in accordance with FASB ASC No. 505-30, “Treasury Stock” and charges the excess of the repurchase cost over issuance price using the weighted average method to retained earnings . The purchase cost is calculated based on the specific identified method. In the case where the repurchase cost over issuance price using the weighted average method is lower than the issuance price, the Company credits the difference to additional paid-in capital. | |||||||||||||
Net income per share of common stock: | |||||||||||||
Basic net income per share is computed based on the weighted average number of shares of common stock outstanding during each year. Diluted net income per share is computed based on the weighted average number of shares of common stock outstanding during each year, plus dilutive potential shares of common stock considered outstanding during the year, in accordance with FASB ASC No. 260, “Earnings Per Share.” | |||||||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Numerator: | |||||||||||||
Net income | $ | 18,562 | $ | 13,685 | $ | 6,685 | |||||||
Denominator (in thousands): | |||||||||||||
Weighted-average common stock outstanding | 23,173 | 22,798 | 22,009 | ||||||||||
Effect of stock options and stock appreciation rights | 980 | 559 | 456 | ||||||||||
Diluted weighted-average common stock outstanding | 24,153 | 23,357 | 22,465 | ||||||||||
Basic net income per share | $ | 0.8 | $ | 0.6 | $ | 0.3 | |||||||
Diluted net income per share | $ | 0.77 | $ | 0.59 | $ | 0.3 | |||||||
The weighted-average number of shares related to outstanding options and stock appreciation rights excluded from the calculation of diluted net income per share, since their effect was anti-dilutive, were 592,647, 973,919 and 1,732,154 shares for the years ended December 31, 2011, 2012 and 2013, respectively. |
MARKETABLE_SECURITIES
MARKETABLE SECURITIES | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Cash And Cash Equivalents [Abstract] | ' | ||||||||||||||||
MARKETABLE SECURITIES | ' | ||||||||||||||||
NOTE 2: MARKETABLE SECURITIES | |||||||||||||||||
The following is a summary of available-for-sale marketable securities at December 31, 2012 and 2013: | |||||||||||||||||
As at December 31, 2013 | |||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||
cost | unrealized | unrealized | value | ||||||||||||||
gains | losses | ||||||||||||||||
Available-for-sale—matures within one year: | |||||||||||||||||
Corporate bonds | $ | 2,852 | $ | 6 | $ | (3 | ) | $ | 2,855 | ||||||||
Available-for-sale—matures after one year through three years: | |||||||||||||||||
Corporate bonds | 65,702 | 134 | (227 | ) | 65,609 | ||||||||||||
Total | $ | 68,554 | $ | 140 | $ | (230 | ) | $ | 68,464 | ||||||||
As at December 31, 2012 | |||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||
cost | unrealized | unrealized | value | ||||||||||||||
gains | losses | ||||||||||||||||
Available-for-sale—matures within one year: | |||||||||||||||||
Corporate bonds | $ | 10,964 | $ | 73 | $ | (4 | ) | $ | 11,033 | ||||||||
10,964 | 73 | (4 | ) | 11,033 | |||||||||||||
Available-for-sale—matures after one year through three years: | |||||||||||||||||
Certificates of deposits | 1,960 | — | (1 | ) | 1,959 | ||||||||||||
Foreign government bond | 573 | 2 | — | 575 | |||||||||||||
Corporate bonds | 55,622 | 391 | (237 | ) | 55,776 | ||||||||||||
58,155 | 393 | (238 | ) | 58,310 | |||||||||||||
Total | $ | 69,119 | $ | 466 | $ | (242 | ) | $ | 69,343 | ||||||||
The following table presents gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2012 and 2013, and the length of time that those investments have been in a continuous loss position: | |||||||||||||||||
Less than 12 months | 12 months or greater | ||||||||||||||||
Fair Value | Gross | Fair Value | Gross | ||||||||||||||
unrealized | unrealized | ||||||||||||||||
loss | loss | ||||||||||||||||
As of December 31, 2013 | $ | 28,535 | $ | (208 | ) | $ | 4,278 | $ | (22 | ) | |||||||
As of December 31, 2012 | $ | 28,711 | $ | (241 | ) | $ | 489 | $ | (1 | ) | |||||||
As of December 31, 2012 and 2013, management believes the impairments are not other than temporary and therefore the impairment losses were recorded in accumulated other comprehensive income (loss). The Company has no intent to sell these securities and it is more likely than not that the Company will not be required to sell these securities prior to the recovery of the entire amortized cost basis. | |||||||||||||||||
The following table presents gross realized gain and gross realized loss from sale of available-for-sale marketable securities: | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2011 | 2012 | 2013 | |||||||||||||||
Gross realized gain from sale of available-for-sale marketable securities | $ | 77 | $ | 301 | $ | 400 | |||||||||||
Gross realized loss from sale of available-for-sale marketable securities | $ | (23 | ) | $ | (117 | ) | $ | (21 | ) |
FAIR_VALUE_MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
FAIR VALUE MEASUREMENT | ' | ||||||||||||||||
NOTE 3: FAIR VALUE MEASUREMENT | |||||||||||||||||
FASB ASC No. 820, “Fair Value Measurements and Disclosures” defines fair value, establishes a framework for measuring fair value. Fair value is an exit price, representing the amount that would be received for selling an asset or paid for the transfer of a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: | |||||||||||||||||
Level 1 | Unadjusted quoted prices in active markets that are accessible on the measurement date for identical, unrestricted assets or liabilities; | ||||||||||||||||
Level 2 | Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and | ||||||||||||||||
Level 3 | Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). | ||||||||||||||||
The Company measures its marketable securities and foreign currency derivative contracts at fair value. Marketable securities and foreign currency derivative contracts are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. | |||||||||||||||||
The table below sets forth the Company’s assets and liabilities measured at fair value by level within the fair value hierarchy. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||
Description | December 31, | Level I | Level II | Level III | |||||||||||||
2013 | |||||||||||||||||
Assets: | |||||||||||||||||
Marketable securities: | |||||||||||||||||
Corporate bonds | $ | 68,464 | — | $ | 68,464 | — | |||||||||||
Liabilities: | |||||||||||||||||
Foreign exchange contracts | 16 | — | 16 | — | |||||||||||||
Description | December 31, | Level I | Level II | Level III | |||||||||||||
2012 | |||||||||||||||||
Assets: | |||||||||||||||||
Marketable securities: | |||||||||||||||||
Certificates of deposits | $ | 1,959 | — | $ | 1,959 | — | |||||||||||
Foreign government bonds | 575 | — | 575 | — | |||||||||||||
Corporate bonds | 66,809 | — | 66,809 | — | |||||||||||||
Foreign exchange contracts | 216 | — | 216 | — | |||||||||||||
Liabilities: | |||||||||||||||||
Foreign exchange contracts | 112 | — | 112 | — |
PROPERTY_AND_EQUIPMENT_NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
PROPERTY AND EQUIPMENT, NET | ' | ||||||||
NOTE 4: PROPERTY AND EQUIPMENT, NET | |||||||||
Composition of assets, grouped by major classifications, is as follows: | |||||||||
As at December 31, | |||||||||
2012 | 2013 | ||||||||
Cost: | |||||||||
Computers, software and equipment | $ | 11,827 | $ | 10,329 | |||||
Office furniture and equipment | 835 | 513 | |||||||
Leasehold improvements | 801 | 870 | |||||||
13,463 | 11,712 | ||||||||
Less—Accumulated depreciation | (12,071 | ) | (10,096 | ) | |||||
Property and equipment, net | $ | 1,392 | $ | 1,616 | |||||
In 2013, there was a decrease in the amount of property and equipment of $2,645 as a result of the disposal of redundant assets. |
PREPAID_EXPENSES_AND_OTHER_CUR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ||||||||
PREPAID EXPENSES AND OTHER CURRENT ASSETS | ' | ||||||||
NOTE 5: PREPAID EXPENSES AND OTHER CURRENT ASSETS | |||||||||
As at December 31, | |||||||||
2012 | 2013 | ||||||||
Prepaid leased design tools | $ | 253 | $ | 220 | |||||
Prepaid rent | 200 | 212 | |||||||
Inventories | 313 | 285 | |||||||
Taxes | 221 | 225 | |||||||
IT consumables | 90 | 302 | |||||||
Interest receivable | 650 | 458 | |||||||
Foreign exchange contracts | 216 | — | |||||||
Other | 418 | 294 | |||||||
$ | 2,361 | $ | 1,996 | ||||||
ACCRUED_EXPENSES_AND_OTHER_PAY
ACCRUED EXPENSES AND OTHER PAYABLES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
ACCRUED EXPENSES AND OTHER PAYABLES | ' | ||||||||
NOTE 6: ACCRUED EXPENSES AND OTHER PAYABLES | |||||||||
As at December 31, | |||||||||
2012 | 2013 | ||||||||
Engineering accruals | 824 | 606 | |||||||
Professional fees | 811 | 637 | |||||||
Deferred tax liabilities | 200 | 73 | |||||||
Government grants | 129 | 480 | |||||||
Other | 1,498 | 1,159 | |||||||
$ | 3,462 | $ | 2,955 | ||||||
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
STOCKHOLDERS' EQUITY | ' | ||||||||||||||||||||||||
NOTE 7: STOCKHOLDERS’ EQUITY | |||||||||||||||||||||||||
a. Common stock: | |||||||||||||||||||||||||
Holders of common stock are entitled to one vote per share on all matters to be voted upon by the Company’s stockholders. In the event of a liquidation, dissolution or winding up of the Company, holders of common stock are entitled to share ratably in all of the Company’s assets. The Board of Directors may declare a dividend out of funds legally available therefore and the holders of common stock are entitled to receive ratably any such dividends. Holders of common stock have no preemptive rights or other subscription rights to convert their shares into any other securities. | |||||||||||||||||||||||||
b. Preferred stock: | |||||||||||||||||||||||||
The Company is authorized to issue up to 5,000,000 shares of “blank check” preferred stock, par value $0.001 per share. Such preferred stock may be issued by the Board of Directors from time to time in one or more series. These series may have designations, preferences and relative, participating, optional or other special rights and any qualifications, limitations or restrictions thereof, including dividend rights, conversion rights, exchange rights, voting rights, redemption rights (including sinking and purchase fund provisions), and dissolution preferences as may be determined by the Company’s Board of Directors. | |||||||||||||||||||||||||
c. Share repurchase program: | |||||||||||||||||||||||||
In August 2008, the Company announced that its Board of Directors approved a share repurchase program for up to one million shares of common stock. In May 2010, the Company announced that its Board of Directors approved the expansion of its share repurchase program by another two million shares of common stock, with one million shares available for repurchase in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which plan terminated by its terms in November 2011 and one million shares available for repurchase in accordance with Rule 10b-18 under the Exchange Act. In January 2012, the Company’s Board of Directors reaffirmed its authorization for the repurchase by the Company of the remaining 1,966,700 shares of common stock available for repurchase pursuant to Rule 10b-18 of the Exchange Act. In July 2013, the Company’s Board of Directors authorized the repurchase by the Company of an additional two million shares of common stock pursuant to Rule 10b-18 of the Exchange Act. As of December 31, 2013, 1,227,148 shares of common stock remained authorized for repurchase pursuant to the Company’s share repurchase program. | |||||||||||||||||||||||||
The Company did not repurchase any shares during 2011. In 2012, the Company repurchased 1,482,548 shares of common stock at an average purchase price of $18.33 per share for an aggregate purchase price of $27,168. In 2013, the Company repurchased 1,257,004 shares of common stock at an average purchase price of $15.76 per share for an aggregate purchase price of $19,816. | |||||||||||||||||||||||||
d. Employee and non-employee stock plans: | |||||||||||||||||||||||||
The Company grants stock options and SARs capped with a ceiling to employees and stock options to non-employee directors of the Company and its subsidiaries and provides the right to purchase common stock pursuant to the Company’s 2002 employee stock purchase plan to employees of the Company and its subsidiaries. The SAR unit confers the holder the right to stock appreciation over a preset price of the Company’s common stock during a specified period of time. When the unit is exercised, the appreciation amount is paid through the issuance of shares of the Company’s common stock. The ceiling limits the maximum income for each SAR unit. SARs are considered an equity instrument as it is a net share settled award capped with a ceiling (400% for SAR grants made in 2012 and 2013). The options and SARs granted under the Company’s stock incentive plans have been granted at the fair market value of the Company’s common stock on the grant date. Options and SARs granted to employees under stock incentive plans vest at a rate of 25% of the shares underlying the option after one year and the remaining shares vest in equal portions over the following 36 months, such that all shares are vested after four years. Options granted to non-employee directors vest 25% of the shares underlying the option on each anniversary of the option grant. | |||||||||||||||||||||||||
A summary of the Company’s stock option and SARs activities and related information for the year ended December 31, 2013, is as follows: | |||||||||||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||||||||||
options | average | average | intrinsic- | ||||||||||||||||||||||
and SAR | exercise | remaining | value | ||||||||||||||||||||||
units | price | contractual | |||||||||||||||||||||||
term | |||||||||||||||||||||||||
Outstanding at the beginning of the year | 2,546,117 | $ | 15.88 | ||||||||||||||||||||||
Granted (1) | 825,750 | 16.67 | |||||||||||||||||||||||
Options/SAR units exercised | (151,867 | ) | 8.1 | ||||||||||||||||||||||
Options/SAR units forfeited or expired | (104,028 | ) | 20.94 | ||||||||||||||||||||||
Outstanding at the end of the year (2) | 3,115,972 | $ | 16.3 | 4.8 | $ | 5,785,501 | |||||||||||||||||||
Vested or expected to vest as of December 31 | 3,008,858 | $ | 16.25 | 4.7 | $ | 5,778,854 | |||||||||||||||||||
Exercisable as of December 31 (3) | 1,595,611 | $ | 14.79 | 3.2 | $ | 5,675,797 | |||||||||||||||||||
-1 | Includes 693,750 SAR units which are convertible for a maximum number of shares of the Company’s common stock equal to 75% of the SAR units subject to the grant. | ||||||||||||||||||||||||
-2 | Due to the ceiling imposed on the SAR grants, the outstanding amount equals a maximum of 2,816,691 shares of the Company’s common stock issuable upon exercise. | ||||||||||||||||||||||||
-3 | Due to the ceiling imposed on the SAR grants, the exercisable amount equals a maximum of 1,549,633 shares of the Company’s common stock issuable upon exercise. | ||||||||||||||||||||||||
The weighted average fair value of options and SARs granted during the years ended December 31, 2011, 2012 and 2013 was $11.6, $7.4 and $7.2 per share, respectively. The total intrinsic value of options exercised during the years ended December 31, 2011, 2012 and 2013 was $18,286, $581 and $1,336, respectively. | |||||||||||||||||||||||||
The options and SARs granted to employees of the Company and its subsidiaries and the options granted to non-employee directors of the Company and its subsidiaries which were outstanding as of December 31, 2013 have been classified into a range of exercise prices as follows: | |||||||||||||||||||||||||
Outstanding | Exercisable | ||||||||||||||||||||||||
Exercise price | Weighted | Weighted | Weighted | Weighted | |||||||||||||||||||||
(range) | Number of | average | average | Number of | average | average | |||||||||||||||||||
options | remaining | exercise | options | remaining | exercise | ||||||||||||||||||||
contractual | price | contractual | price | ||||||||||||||||||||||
life (years) | life (years) | ||||||||||||||||||||||||
5.76-9.80 | 776,274 | 1.6 | $ | 8.36 | 776,274 | 1.6 | $ | 8.36 | |||||||||||||||||
11.17-15.54 | 696,544 | 5.1 | $ | 14.8 | 305,053 | 4.7 | $ | 14.27 | |||||||||||||||||
16.08-17.61 | 814,062 | 6.7 | $ | 16.44 | 49,580 | 7.5 | $ | 17.21 | |||||||||||||||||
18.23-32.34 | 829,092 | 5.5 | $ | 24.87 | 464,704 | 4.6 | $ | 25.61 | |||||||||||||||||
3,115,972 | 4.8 | $ | 16.3 | 1,595,611 | 3.2 | $ | 14.79 | ||||||||||||||||||
Stock Plans | |||||||||||||||||||||||||
As of December 31, 2013, the Company maintains the Company’s Amended and Restated 2003 Director Stock Option Plan (the “Director Plan”) and the 2011 Stock Incentive Plan (the “2011 Plan” and together with the Director Plan, the “Stock Plans”). | |||||||||||||||||||||||||
As of December 31, 2013, options and SARs to purchase 245,632 shares of common stock were available for grant under the Stock Plans. | |||||||||||||||||||||||||
2011 Stock Incentive Plan | |||||||||||||||||||||||||
The 2011 Plan was adopted by the Company’s Board of Directors in February 2011 and stockholders on May 17, 2011. Up to 1,100,000 shares of common stock (subject to adjustment in the event of future stock splits, future stock dividends or other similar changes in the common stock or the Company’s capital structure), plus the number of shares that remain available for grant of awards under the Company’s 2002 Stock Incentive Plan (the “2002 Plan), plus any shares that would otherwise return to the 2002 Plan as a result of forfeiture, termination or expiration of awards previously granted under the 2002 plan (subject to adjustment in the event of stock splits and other similar events), are reserved for issuance under the 2011 Plan. The 2002 Plan was automatically terminated and replaced and superseded by the 2011 Plan, except that any awards previously granted under the 2002 Plan shall remain in effect pursuant to their term. | |||||||||||||||||||||||||
The 2011 Plan provides for the grant of incentive stock options intended to qualify under Section 422 of the Internal Revenue Code, nonqualified stock options, restricted stock, restricted stock units, dividend equivalent rights and stock appreciation rights. Officers, employees, directors, outside consultants and advisors of the Company and those of the Company’s present and future parent and subsidiary corporations are eligible to receive awards under the 2011 Plan. Under current U.S. tax laws, incentive stock options may only be granted to employees. The 2011 Plan permits the Company’s Board of Directors or a committee thereof to determine how grantees may pay the exercise or purchase price of their awards. | |||||||||||||||||||||||||
Unless sooner terminated, the 2011 Plan is effective until February 2021. | |||||||||||||||||||||||||
The Company’s Board of Directors or a committee thereof has authority to administer the 2011 Plan. The Company’s Board of Directors has the authority to adopt, amend and repeal the administrative rules, guidelines and practices relating to the 2011 Plan and to interpret its provisions. | |||||||||||||||||||||||||
2003 Director Stock Option Plan | |||||||||||||||||||||||||
Under the Director Plan, 1,100,000 shares of common stock (subject to adjustment in the event of future stock splits, future stock dividends or other similar changes in the common stock or the Company’s capital structure) are authorized for issuance. | |||||||||||||||||||||||||
The Director Plan provides for the grant of nonqualified stock options to non-employee directors. Options must be granted at an exercise price equal to the fair market value of the common stock on the date of grant. Options may not be granted for a term in excess of ten years. | |||||||||||||||||||||||||
Under the terms of the Director Plan, any person who becomes a non-employee director of the Company will automatically be granted an option to purchase 38,000 shares of common stock. On June 30 of each year, beginning in 2004, each non-employee director who has served on the Company’s Board of Directors for at least six (6) months as of such date will automatically be granted an option to purchase 13,000 shares of common stock, and each non-employee director would receive an option to purchase 13,000 shares of common stock for each committee on which he or she had served as chairperson for at least six months prior to such date. The Chairman of the Board is granted an additional option to purchase 15,000 shares of common stock on an annual basis. | |||||||||||||||||||||||||
The Company’s Board of Directors or a committee thereof may grant additional options to purchase common stock with a vesting schedule to be determined by the Board of Directors in recognition of services provided by a non-employee director in his or her capacity as a director. | |||||||||||||||||||||||||
The Company’s Board of Directors or a committee thereof has authority to administer the Director Plan. The Company’s Board of Directors or a committee thereof has the authority to adopt, amend and repeal the administrative rules, guidelines and practices relating to the Director Plan and to interpret its provisions. | |||||||||||||||||||||||||
2002 Employee Stock Purchase Plan (“ESPP”) | |||||||||||||||||||||||||
The ESPP was adopted by the Company’s Board of Directors and stockholder in July 2002. The ESPP is intended to qualify as an “Employee Stock Purchase Plan” under Section 423 of the U.S. Internal Revenue Code and is intended to provide the Company’s employees with an opportunity to purchase shares of common stock through payroll deductions. An aggregate of 2,150,000 shares of common stock (subject to adjustment in the event of future stock splits, future stock dividends or other similar changes in the common stock or the Company’s capital structure) are reserved for issuance. As of December 31, 2013, 202,934 shares of common stock were available for future issuance under the ESPP. | |||||||||||||||||||||||||
All of the Company’s employees who are regularly employed for more than five months in any calendar year and work 20 hours or more per week are eligible to participate in the ESPP. Non-employee directors, consultants, and employees subject to the rules or laws of a foreign jurisdiction that prohibit or make impractical their participation in an employee stock purchase plan are not eligible to participate in the ESPP. | |||||||||||||||||||||||||
The ESPP designates offer periods, purchase periods and exercise dates. Offer periods generally will be overlapping periods of 24 months. Purchase periods generally will be six-month periods. Exercise dates are the last day of each purchase period. In the event the Company merges with or into another corporation, sells all or substantially all of the Company’s assets, or enters into other transactions in which all of the Company’s stockholders before the transaction own less than 50% of the total combined voting power of the Company’s outstanding securities following the transaction, the Company’s Board of Directors or a committee designated by the Board may elect to shorten the offer period then in progress. | |||||||||||||||||||||||||
The price per share at which shares of common stock may be purchased under the ESPP during any purchase period is the lesser of: | |||||||||||||||||||||||||
• | 85% of the fair market value of common stock on the date of grant of the purchase right, which is the commencement of an offer period; or | ||||||||||||||||||||||||
• | 85% of the fair market value of common stock on the exercise date, which is the last day of a purchase period. | ||||||||||||||||||||||||
The participant’s purchase right is exercised in the above noted manner on each exercise date arising during the offer period unless, on the first day of any purchase period, the fair market value of common stock is lower than the fair market value of common stock on the first day of the offer period. If so, the participant’s participation in the original offer period will be terminated, and the participant will automatically be enrolled in the new offer period effective the same date. | |||||||||||||||||||||||||
The ESPP is administered by the Board of Directors or a committee designated by the Board, which will have the authority to terminate or amend the plan, subject to specified restrictions, and otherwise to administer and resolve all questions relating to the administration of the plan. | |||||||||||||||||||||||||
e. Dividend policy: | |||||||||||||||||||||||||
The Company has never declared or paid any cash dividends on its capital stock and does not anticipate paying any cash dividends in the foreseeable future. |
DERIVATIVES_AND_HEDGING_ACTIVI
DERIVATIVES AND HEDGING ACTIVITIES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||
DERIVATIVES AND HEDGING ACTIVITIES | ' | ||||||||||||
NOTE 8: DERIVATIVES AND HEDGING ACTIVITIES | |||||||||||||
The fair value of the Company’s outstanding derivative instruments is as follows: | |||||||||||||
As at December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
Derivative assets: | |||||||||||||
Derivatives designated as cash flow hedging instruments: | |||||||||||||
Foreign exchange option contracts | $ | 158 | $ | — | |||||||||
Foreign exchange forward contracts | 58 | — | |||||||||||
Total | $ | 216 | $ | — | |||||||||
Derivative liabilities: | |||||||||||||
Derivatives designated as cash flow hedging instruments: | |||||||||||||
Foreign exchange forward contracts | $ | — | $ | 16 | |||||||||
Derivatives not qualified as hedging instruments: | |||||||||||||
Foreign exchange forward contracts | 112 | — | |||||||||||
Total | $ | 112 | $ | 16 | |||||||||
The Company recorded the fair value of derivative assets in “prepaid expenses and other accounts receivable” and the fair value of derivative liabilities in “accrued expenses and other payables” on the Company’s consolidated balance sheets. | |||||||||||||
The increase in gains (losses) recognized in “accumulated other comprehensive income (loss)” on derivatives, before tax effect, is as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Derivatives designated as cash flow hedging instruments: | |||||||||||||
Foreign exchange option contracts | $ | (102 | ) | $ | 177 | $ | 108 | ||||||
Foreign exchange forward contracts | (181 | ) | 69 | 175 | |||||||||
$ | (283 | ) | $ | 246 | $ | 283 | |||||||
The gains (losses) reclassified from “accumulated other comprehensive income (loss)” into income, are as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Derivatives designated as cash flow hedging instruments: | |||||||||||||
Foreign exchange option contracts | $ | (192 | ) | $ | 124 | $ | (266 | ) | |||||
Foreign exchange forward contracts | 9 | 71 | (249 | ) | |||||||||
$ | (183 | ) | $ | 195 | $ | (515 | ) | ||||||
The Company recorded in cost of revenues and operating expenses, a net gain of $183, a net loss of $195 and a net gain of $515 during the years ended December 31, 2011, 2012 and 2013, respectively, related to its Hedging Contracts. In addition, the Company recorded in financial income, net, a net gain of $43, a net loss of $112 and a net gain of $112 during the years ended December 31, 2011, 2012 and 2013, respectively, related to derivatives not qualified as hedging instruments. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ' | ||||||||||||||||
NOTE 9: ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||
The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the year ended December 31, 2013: | |||||||||||||||||
Unrealized | Unrealized | Estimated | Total | ||||||||||||||
gains (losses) on | gains (losses) | tax | |||||||||||||||
available-for-sale | on cash flow | (expense) | |||||||||||||||
marketable | hedges | benefit | |||||||||||||||
securities | |||||||||||||||||
Beginning balance | $ | 224 | $ | 216 | $ | (80 | ) | $ | 360 | ||||||||
Other comprehensive income (loss) before reclassifications | 65 | 283 | (57 | ) | 291 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (379 | ) | (515 | ) | 162 | (732 | ) | ||||||||||
Net current period other comprehensive income (loss) | (314 | ) | (232 | ) | 105 | (441 | ) | ||||||||||
Ending balance | $ | (90 | ) | $ | (16 | ) | $ | 25 | $ | (81 | ) | ||||||
The following table provides details about reclassifications out of accumulated other comprehensive income (loss): | |||||||||||||||||
Details about Accumulated Other Comprehensive | Amount Reclassified from | Affected Line Item in the | |||||||||||||||
Income (Loss) Components | Accumulated Other Comprehensive | Statements of Income | |||||||||||||||
Income (Loss) | |||||||||||||||||
Year ended | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Unrealized gains on cash flow hedges | $ | 13 | Cost of revenues | ||||||||||||||
432 | Research and development | ||||||||||||||||
27 | Sales and marketing | ||||||||||||||||
43 | General and administrative | ||||||||||||||||
515 | Total, before income taxes | ||||||||||||||||
(54 | ) | Provision for income taxes | |||||||||||||||
461 | Total, net of income taxes | ||||||||||||||||
Unrealized gains on available-for-sale marketable securities | 379 | Financial income, net | |||||||||||||||
(108 | ) | Provision for income taxes | |||||||||||||||
271 | Total, net of income taxes | ||||||||||||||||
$ | 732 | Total, net of income taxes |
GEOGRAPHIC_INFORMATION_AND_MAJ
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA | ' | ||||||||||||
NOTE 10: GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA | |||||||||||||
a. Summary information about geographic areas: | |||||||||||||
FASB ASC No. 280, “Segment Reporting,” establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company manages its business on a basis of one reportable segment: the licensing of intellectual property to semiconductor companies and electronic equipment manufacturers (see Note 1 for a brief description of the Company’s business). The following is a summary of revenues within geographic areas: | |||||||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Revenues based on customer location: | |||||||||||||
United States | $ | 14,312 | $ | 11,389 | $ | 6,067 | |||||||
Europe, Middle East (1) (2) | 19,878 | 13,695 | 13,384 | ||||||||||
Asia Pacific (3) (4) | 26,049 | 28,593 | 29,449 | ||||||||||
$ | 60,239 | $ | 53,677 | $ | 48,900 | ||||||||
(1) Germany | $ | 12,262 | $ | 6,840 | $ | 5,543 | |||||||
(2) Switzerland | $ | 6,150 | * | ) | * | ) | |||||||
(3) China | $ | 13,790 | $ | 15,919 | $ | 20,472 | |||||||
(4) Japan | * | ) | $ | 7,744 | * | ) | |||||||
*) | Less than 10% | ||||||||||||
December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Long-lived assets by geographic region: | |||||||||||||
Israel | 1,157 | 1,283 | 1,532 | ||||||||||
Other | 78 | 109 | 84 | ||||||||||
$ | 1,235 | $ | 1,392 | $ | 1,616 | ||||||||
b. Major customer data as a percentage of total revenues: | |||||||||||||
The following table sets forth the customers that represented 10% or more of the Company’s total revenues in each of the periods set forth below: | |||||||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Customer A | 17 | % | 24 | % | 28 | % | |||||||
Customer B | 16 | % | 13 | % | 11 | % | |||||||
Customer C | 12 | % | 12 | % | * | ) | |||||||
*) | Less than 10% | ||||||||||||
c. Information about Products and Services: | |||||||||||||
The following table sets forth the products and services that represented 10% or more of the Company’s total revenues in each of the periods set forth below: | |||||||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
CEVA-X family | 26 | % | 21 | % | 39 | % | |||||||
CEVA TeakLite family | 49 | % | 54 | % | 38 | % | |||||||
CEVA Teak family | 17 | % | 14 | % | * | ) | |||||||
*) | Less than 10% | ||||||||||||
The remaining amount consists of other families of products and services that each represented less than 10% of total revenues. |
SELECTED_STATEMENTS_OF_INCOME_
SELECTED STATEMENTS OF INCOME DATA | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ||||||||||||
SELECTED STATEMENTS OF INCOME DATA | ' | ||||||||||||
NOTE 11: SELECTED STATEMENTS OF INCOME DATA | |||||||||||||
Financial income, net: | |||||||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Interest income | $ | 4,937 | $ | 4,507 | $ | 3,884 | |||||||
Gain on available-for-sale marketable securities, net | 54 | 184 | 379 | ||||||||||
Amortization of premium on available-for-sale marketable securities, net | (2,068 | ) | (1,267 | ) | (1,504 | ) | |||||||
Foreign exchange loss, net | (14 | ) | (44 | ) | (45 | ) | |||||||
$ | 2,909 | $ | 3,380 | $ | 2,714 | ||||||||
TAXES_ON_INCOME
TAXES ON INCOME | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
TAXES ON INCOME | ' | ||||||||||||
NOTE 12: TAXES ON INCOME | |||||||||||||
a. A number of the Company’s operating subsidiaries are taxed at rates lower than U.S. rates. | |||||||||||||
1. Irish Subsidiaries | |||||||||||||
The Irish operating subsidiary qualified for a 12.5% tax rate on its trade. Interest income earned by the Irish subsidiary is taxed at a rate of 25%. As of December 31, 2013, the open tax years, subject to review by the applicable taxing authorities for the Irish subsidiary, are 2009 and subsequent years. | |||||||||||||
2. Israeli Subsidiary | |||||||||||||
The Israeli subsidiary has been granted “Approved Enterprise” and “Benefited Enterprise” status under the Israeli Law for the Encouragement of Capital Investments. For such Approved Enterprises and Benefited Enterprises, the Israeli subsidiary elected to apply for alternative tax benefits—the waiver of government grants in return for tax exemptions on undistributed income. Upon distribution of such exempt income, the Israeli subsidiary will be subject to corporate tax at the rate ordinarily applicable to the Approved Enterprise’s or Benefited Enterprise’s income. Such tax exemption on undistributed income applies for a limited period of between two to ten years, depending upon the location of the enterprise. During the remainder of the benefits period (generally until the expiration of ten years), a corporate tax rate not exceeding 25% will apply. | |||||||||||||
The Israeli subsidiary is a foreign investor company, or FIC, as defined by the Investment Law. FICs are entitled to further reductions in the tax rate normally applicable to Approved Enterprises and Benefited Enterprises. Depending on the foreign ownership in each tax year, the tax rate can range between 10% (when foreign ownership exceeds 90%) to 20% (when foreign ownership exceeds 49%). There can be no assurance that the subsidiary will continue to qualify as an FIC in the future or that the benefits described herein will be granted in the future. | |||||||||||||
The Company’s Israeli subsidiary’s tax-exempt profit from Approved Enterprises and Benefited Enterprises is permanently reinvested. Therefore, deferred taxes have not been provided for such tax-exempt | |||||||||||||
income, as the Company intends to continue to reinvest these profits and does not currently foresee a need to distribute dividends out of such tax-exempt income. | |||||||||||||
Income not eligible for Approved Enterprise benefits or Benefited Enterprise benefits is taxed at a regular rate, which was 25% in 2013. | |||||||||||||
On July 30, 2013, the Israeli Parliament (the Knesset) passed a law which was designated to increase the tax levy in the years 2013 and 2014. Among other things, the law increases the Israeli corporate tax rate from 25% to 26.5%, and commencing on January 1, 2014, increases the tax rate to 20% on dividends from sources under the Law for the Encouragement of Capital Investment, 1959. | |||||||||||||
The Israeli subsidiary elected to compute their taxable income in accordance with Income Tax Regulations (Rules for Accounting for Foreign Investors Companies and Certain Partnerships and Setting their Taxable Income), 1986. Accordingly, the taxable income or loss is calculated in U.S. dollars. Applying these regulations reduces the effect of the foreign exchange rate (of NIS against the U.S. dollar) on the Company’s Israeli taxable income. | |||||||||||||
CEVA’s Israeli subsidiary has received final tax assessments through 2005. As of December 31, 2013, the open tax years, subject to review by the applicable taxing authorities for the Israeli subsidiary, are 2010 and subsequent years. | |||||||||||||
b. The provision for income taxes is as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Domestic taxes: | |||||||||||||
Current | $ | 1,452 | $ | 727 | $ | (37 | ) | ||||||
Deferred | (1,024 | ) | (742 | ) | (1,127 | ) | |||||||
Foreign taxes: | |||||||||||||
Current | 2,899 | 1,993 | 2,016 | ||||||||||
Deferred | (419 | ) | 84 | (64 | ) | ||||||||
$ | 2,908 | $ | 2,062 | $ | 788 | ||||||||
Income (loss) before taxes on income: | |||||||||||||
Domestic | $ | 542 | $ | (1,651 | ) | $ | (4,315 | ) | |||||
Foreign | 20,928 | 17,398 | 11,788 | ||||||||||
$ | 21,470 | $ | 15,747 | $ | 7,473 | ||||||||
c. Reconciliation between the Company’s effective tax rate and the U.S. statutory rate: | |||||||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Income before taxes on income | $ | 21,470 | $ | 15,747 | $ | 7,473 | |||||||
Theoretical tax at U.S. statutory rate | 7,515 | 5,511 | 2,541 | ||||||||||
Foreign income taxes at rates other than U.S. rate | (5,622 | ) | (3,957 | ) | (2,610 | ) | |||||||
Subpart F | 221 | 529 | 633 | ||||||||||
Non-deductible items | 355 | 346 | 169 | ||||||||||
Valuation allowance | (545 | ) | (380 | ) | (111 | ) | |||||||
Other, net | 984 | 13 | 166 | ||||||||||
Taxes on income | $ | 2,908 | $ | 2,062 | $ | 788 | |||||||
Effective tax rate | 14 | % | 13 | % | 11 | % | |||||||
d. Deferred taxes on income: | |||||||||||||
Deferred taxes on income reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets are as follows: | |||||||||||||
As at December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
Deferred tax assets | |||||||||||||
Operating loss carryforward | $ | 8,498 | $ | 8,544 | |||||||||
Accrued expenses | 414 | 490 | |||||||||||
Temporary differences related to R&D expenses | 992 | 1,045 | |||||||||||
Equity-based compensation | 1,435 | 2,085 | |||||||||||
Other | 639 | 774 | |||||||||||
Total gross deferred tax assets | 11,978 | 12,938 | |||||||||||
Valuation allowance | (8,735 | ) | (8,526 | ) | |||||||||
Net deferred tax assets | $ | 3,243 | $ | 4,412 | |||||||||
Deferred tax liabilities | |||||||||||||
Other | $ | 200 | $ | 73 | |||||||||
Total gross deferred tax liabilities | $ | 200 | $ | 73 | |||||||||
Net deferred tax assets (*) | $ | 3,043 | $ | 4,339 | |||||||||
(*) | Net deferred tax for the year ended December 31, 2012 from domestic and foreign jurisdictions was $1,851 and $1,192, respectively. | ||||||||||||
Net deferred tax for the year ended December 31, 2013 from domestic and foreign jurisdictions was $2,999 and $1,340, respectively. | |||||||||||||
The Company and its subsidiaries provide valuation allowances for deferred tax assets resulting principally from the carryforward of tax losses. Management currently believes that it is more likely than not that the deferred tax regarding the carryforward of losses and certain accrued expenses will not be realized in the foreseeable future. | |||||||||||||
The Company does not have a provision for U.S. Federal income taxes on the undistributed earnings of its international subsidiaries because such earnings are considered to be indefinitely reinvested. Determination of the amount of income tax liability that would be incurred is not practical. In addition, the Company operates within multiple taxing jurisdictions involving complex issues, and it has provisions for tax liabilities on investment activities as appropriate. | |||||||||||||
e. Uncertain tax positions | |||||||||||||
The Company accounts for its income tax uncertainties in accordance with FASB ASC No. 740 which clarifies the accounting for uncertainties in income taxes recognized in a company’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits based on the provisions of FASB ASC No. 740 is as follows: | |||||||||||||
Year ended | |||||||||||||
December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
Beginning of year | $ | 3,054 | $ | 3,520 | |||||||||
Additions for current year tax positions | 187 | 116 | |||||||||||
Additions for prior year’s tax positions | 614 | — | |||||||||||
Reductions for prior year’s tax positions | (335 | ) | (73 | ) | |||||||||
Balance at December 31 | $ | 3,520 | $ | 3,563 | |||||||||
As of December 31, 2012 and 2013, there were $3,520 and $3,563, respectively, of unrecognized tax benefits that if recognized would affect the annual effective tax rate. As of December 31, 2012 and 2013, the Company had accrued interest related to unrecognized tax benefits of $48 and $226, respectively. The Company did not accrue penalties during the years ended December 31, 2012 and 2013. | |||||||||||||
f. Tax loss carryforwards: | |||||||||||||
As of December 31, 2013, CEVA and its subsidiaries had net operating loss carryforwards for federal income tax purposes of approximately $4,338, which are available to offset future federal taxable income. Of that amount, $3,644 is due to excess tax benefits from stock option exercises. Excess tax benefits related to stock option exercises cannot be recognized until realized through a reduction of current taxes payable. Such loss carryforwards begin to expire in 2030. | |||||||||||||
As of December 31, 2013, CEVA and its subsidiaries had net operating loss carryforwards for California income tax purposes of approximately $4,764, which are available to offset future California taxable income. Such loss carryforwards begin to expire in 2014. As of December 31, 2013, CEVA and its subsidiaries had foreign operating losses only in CEVA’s Irish subsidiary of approximately $64,102, which are available to offset future taxable income. Such foreign operating losses can be carried forward indefinitely for tax purposes. A full valuation allowance was provided in relation to those carryforward tax losses due to the uncertainty of their utilization in the foreseeable future. | |||||||||||||
g. Tax returns: | |||||||||||||
CEVA files income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions. With few exceptions, CEVA is no longer subject to U.S. federal income tax examinations by tax authorities, and state and local income tax examinations, for the years prior to 2009. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
RELATED PARTY TRANSACTIONS | ' |
NOTE 13: RELATED PARTY TRANSACTIONS | |
One of the Company’s directors, Bruce Mann, is a partner of Morrison & Foerster LLP, the Company’s outside legal counsel. Fees attributed to Morrison & Foerster LLP during the years ended December 31, 2011, 2012 and 2013 were $256, $578 and $279, respectively. The accounts payable balance with Morrison & Foerster LLP at December 31, 2012 and 2013 were $171 and $0, respectively. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ' | ||||||||||||||||
NOTE 14: COMMITMENTS AND CONTINGENCIES | |||||||||||||||||
a. The Company is not a party to any litigation or other legal proceedings that the Company believes could reasonably be expected to have a material adverse effect on the Company’s business, results of operations and financial condition. | |||||||||||||||||
b. As of December 31, 2013, the Company and its subsidiaries had several non-cancelable operating leases, primarily for facilities and equipment. These leases generally contain renewal options and require the Company and its subsidiaries to pay all executory costs such as maintenance and insurance. In addition, the Company has several fixed service agreements with sub-contractors. | |||||||||||||||||
Rent expenses for the years ended December 31, 2011, 2012 and 2013, were $884, $821 and $839, respectively. | |||||||||||||||||
As of December 31, 2013, future purchase obligations and minimum rental commitments for leasehold properties and operating leases with non-cancelable terms are as follows: | |||||||||||||||||
Minimum rental | Other purchase | Total | |||||||||||||||
commitments for | Commitments for | obligations | |||||||||||||||
leasehold | other lease | ||||||||||||||||
properties | obligations | ||||||||||||||||
2014 | $ | 728 | $ | 1,681 | $ | 220 | $ | 2,629 | |||||||||
2015 | 151 | 1,279 | — | 1,430 | |||||||||||||
2016 | 35 | — | — | 35 | |||||||||||||
$ | 914 | $ | 2,960 | $ | 220 | $ | 4,094 | ||||||||||
c. Royalties: | |||||||||||||||||
The Company participated in programs sponsored by the Israeli government for the support of research and development activities. Through December 31, 2013, the Company had obtained grants from the Office of the Chief Scientist of the Israeli Ministry of Industry and Trade (the “OCS”) for certain of the Company’s research and development projects. The Company is obligated to pay royalties to the OCS, amounting to 3%-3.5% of the sales of the products and other related revenues (based on the dollar) generated from such projects, up to 100% of the grants received. Royalty payment obligations also bear interest at the LIBOR rate. The obligation to pay these royalties is contingent on actual sales of the products and in the absence of such sales, no payment is required. | |||||||||||||||||
During 2011, the Company did not pay any royalties to the OCS since no actual sales were generated from projects that previously received grants from the OCS. During 2012 and 2013, the Company paid royalties to the OCS in the amount $12 and $147, respectively. As of December 31, 2013, the aggregate contingent liability to the OCS (including interest) amounted to $8,575. |
VALUATION_AND_QUALIFYING_ACCOU
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Valuation And Qualifying Accounts [Abstract] | ' | ||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ' | ||||||||||||||||
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||
Balance at | Additions | Deduction | Balance at | ||||||||||||||
beginning of | end of period | ||||||||||||||||
period | |||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||
Allowance for doubtful accounts | $ | 9 | $ | — | $ | 9 | $ | — | |||||||||
Year ended December 31, 2012 | |||||||||||||||||
Allowance for doubtful accounts | $ | 25 | $ | — | $ | 16 | $ | 9 | |||||||||
Year ended December 31, 2011 | |||||||||||||||||
Allowance for doubtful accounts | $ | 25 | $ | — | $ | — | $ | 25 |
ORGANIZATION_AND_SIGNIFICANT_A1
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Organization | ' | ||||||||||||
Organization: | |||||||||||||
CEVA, Inc. (“CEVA” or the “Company”) was incorporated in Delaware on November 22, 1999. The Company was formed through the combination of Parthus Technologies plc (“Parthus”) and the digital signal processor (DSP) cores licensing business and operations of DSP Group, Inc. in November 2002. The Company had no business or operations prior to the combination. | |||||||||||||
CEVA licenses a family of programmable DSP cores and application-specific platforms, including communications (wireless, Wi-Fi and Bluetooth), computational photography, computer vision, audio, voice, Serial ATA (SATA) and Serial Attached SCSI (SAS). | |||||||||||||
CEVA’s technologies are licensed to leading semiconductor and original equipment manufacturer (OEM) companies in the form of intellectual property (IP). These companies design, manufacture, market and sell application-specific integrated circuits (“ASICs”) and application-specific standard products (“ASSPs”) based on CEVA’s technology to wireless, consumer electronics and automotive companies for incorporation into a wide variety of end products. | |||||||||||||
Basis of Presentation | ' | ||||||||||||
Basis of presentation: | |||||||||||||
The consolidated financial statements have been prepared according to U.S Generally Accepted Accounting Principles (“U.S. GAAP”). | |||||||||||||
Starting January 1, 2013, the Company consolidated other revenues within licensing revenues. Prior period numbers were conformed to the Company’s current period presentation of one revenue line titled “licensing and related revenue. “ | |||||||||||||
Use of Estimates | ' | ||||||||||||
Use of estimates: | |||||||||||||
The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||
Financial Statements in U.S. Dollars | ' | ||||||||||||
Financial statements in U.S. dollars: | |||||||||||||
A majority of the revenues of the Company and its subsidiaries is generated in U.S. dollars (“dollars”). In addition, a portion of the Company and its subsidiaries’ costs are incurred in dollars. The Company’s management has determined that the dollar is the primary currency of the economic environment in which the Company and its subsidiaries principally operate. Thus, the functional and reporting currency of the Company and its subsidiaries is the dollar. | |||||||||||||
Accordingly, monetary accounts maintained in currencies other than the dollar are remeasured into dollars in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 830, “Foreign Currency Matters.” All transaction gains and losses from remeasurement of monetary balance sheet items are reflected in the consolidated statements of income as financial income or expenses, as appropriate, which is included in “financial income, net.” The foreign exchange losses arose principally on the Euro and the NIS liabilities as a result of the currency fluctuations of the Euro and the NIS against the dollar. | |||||||||||||
Principles of Consolidation | ' | ||||||||||||
Principles of consolidation: | |||||||||||||
The consolidated financial statements incorporate the financial statements of the Company and all of its subsidiaries. All significant inter-company balances and transactions have been eliminated on consolidation. | |||||||||||||
Cash Equivalents | ' | ||||||||||||
Cash equivalents: | |||||||||||||
Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less from the date acquired. | |||||||||||||
Short-term Bank Deposits | ' | ||||||||||||
Short-term bank deposits: | |||||||||||||
Short-term bank deposits are deposits with maturities of more than three months but less than one year from the balance sheet date. The deposits are presented at their cost, including accrued interest. The deposits bear interest annually at an average rate of 2.06%, 2.32% and 1.88% during 2011, 2012 and 2013, respectively. | |||||||||||||
Marketable Securities | ' | ||||||||||||
Marketable securities: | |||||||||||||
Marketable securities consist of certificates of deposits, corporate bonds and government securities. The Company determines the appropriate classification of marketable securities at the time of purchase and re-evaluates such designation at each balance sheet date. In accordance with FASB ASC No. 320 “Investments- Debt and Equity Securities,” the Company classifies marketable securities as available-for-sale. Available-for-sale securities are stated at fair value, with unrealized gains and losses reported in accumulated other comprehensive income (loss), a separate component of stockholders’ equity, net of taxes. Realized gains and losses on sales of marketable securities, as determined on a specific identification basis, are included in financial income, net. The amortized cost of marketable securities is adjusted for amortization of premium and accretion of discount to maturity, both of which, together with interest, are included in financial income, net. The Company has classified all marketable securities as short-term, even though the stated maturity date may be one year or more beyond the current balance sheet date, because it may sell these securities prior to maturity to meet liquidity needs or as part of risk versus reward objectives. | |||||||||||||
The Company recognizes an impairment charge when a decline in the fair value of its investments in debt securities below the cost basis of such securities is judged to be other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Company’s intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. For securities that are deemed other-than-temporarily impaired (“OTTI”), the amount of impairment is recognized in the statement of income and is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income. The Company did not recognize OTTI on its marketable securities in 2011, 2012 and 2013. | |||||||||||||
Long-term Bank Deposits | ' | ||||||||||||
Long-term bank deposits: | |||||||||||||
Long-term bank deposits are deposits with maturities of more than one year as of the balance sheet date. The deposits presented at their cost, including accrued interest. The deposits bear interest annually at an average rate of 2.28%, 2.40% and 2.14% during 2011, 2012 and 2013, respectively. | |||||||||||||
Property and Equipment, Net | ' | ||||||||||||
Property and equipment, net: | |||||||||||||
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, at the following annual rates: | |||||||||||||
% | |||||||||||||
Computers, software and equipment | 15-33 | ||||||||||||
Office furniture and equipment | 25-Jul | ||||||||||||
Leasehold improvements | 10 | ||||||||||||
(the shorter of the expected | |||||||||||||
lease term or useful | |||||||||||||
economic life) | |||||||||||||
The Company’s long-lived assets are reviewed for impairment in accordance with FASB ASC No. 360-10-35, “Impairment or Disposal of Long-Lived Assets,” whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of the carrying amount of an asset to be held and used is measured by a comparison of its carrying amount to the future undiscounted cash flows expected to be generated by such asset. If such asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of such asset exceeds its fair value. In determining the fair value of long-lived assets for purposes of measuring impairment, the Company’s assumptions include those that market participants would consider in valuations of similar assets. | |||||||||||||
An asset to be disposed is reported at the lower of its carrying amount or fair value less selling costs. No impairment was recorded in 2011, 2012 and 2013. | |||||||||||||
Goodwill | ' | ||||||||||||
Goodwill: | |||||||||||||
The Company applies FASB ASC No. 350, “Intangibles—Goodwill and Other.” Goodwill is carried at cost and is not amortized but rather is tested for impairment at least annually or between annual tests in certain circumstances. The Company conducts its annual test of impairment for goodwill on October 1st of each year. | |||||||||||||
The Company operates in one operating segment and this segment comprises the only reporting unit. | |||||||||||||
ASC No. 350 prescribes a two-phase process for impairment testing of goodwill. The first phase screens for potential impairment, while the second phase (if necessary) measures impairment. Goodwill impairment is deemed to exist if the net book value of a reporting unit exceeds its estimated fair value. In such case, the second phase is then performed, and the Company measures impairment by comparing the carrying amount of the reporting unit’s goodwill to the implied fair value of that goodwill. An impairment loss is recognized in an amount equal to the excess. For each of the three years in the period ended December 31, 2013, no impairment of goodwill has been identified. | |||||||||||||
Investments in Other Companies | ' | ||||||||||||
Investments in other companies: | |||||||||||||
The Company’s investments in two private companies, in which it holds minority equity interests, are presented at cost because the Company does not have significant influence over the underlying investees. The investments are reviewed periodically to determine if their values have been impaired and adjustments are recorded as necessary. During the years ended December 31, 2011, 2012 and 2013, no impairment loss was identified. | |||||||||||||
Revenue Recognition | ' | ||||||||||||
Revenue recognition: | |||||||||||||
The Company generates its revenues from (1) licensing intellectual property, which in certain circumstances is modified for customer-specific requirements, (2) royalty revenues, and (3) other revenues, which include revenues from support, training and sale of development systems. | |||||||||||||
The Company accounts for its IP license revenues and related services in accordance with FASB ASC No. 985-605, “Software Revenue Recognition.” Revenues are recognized when persuasive evidence of an arrangement exists and no further obligation exists, delivery has occurred, the license fee is fixed or determinable, and collection is reasonably assured. A license may be perpetual or time limited in its application. Revenue earned on licensing arrangements involving multiple elements are allocated to each element based on the “residual method” when vendor specific objective evidence (“VSOE”) of fair value exists for all undelivered elements and VSOE does not exist for one of the delivered elements. VSOE of fair value of the undelivered elements is determined based on the substantive renewal rate as stated in the agreement. | |||||||||||||
Extended payment terms in a licensing arrangement may indicate that the license fees are not deemed to be fixed or determinable. If the fee is not fixed or determinable, revenue is recognized as payments become due from the customer unless collection is not considered reasonably assured, then revenue is recognized as payments are collected from the customer, provided all other revenue recognition criteria have been met. | |||||||||||||
Revenues from license fees that involve significant customization of the Company’s IP to customer-specific specifications are recognized in accordance with the principles set out in FASB ASC No. 605-35-25, “Construction-Type and Production-Type Contracts Recognition,” using contract accounting on a percentage of completion method. The amount of revenue recognized is based on the total license fees under the agreement and the percentage of completion achieved. The percentage of completion is measured by the actual time incurred to date on the project compared to the total estimated project requirements, which corresponds to the costs related to earned revenues. Provisions for estimated losses on uncompleted contracts are made during the period in which such losses are first determined, in the amount of the estimated loss on the entire contract. | |||||||||||||
Revenues that are derived from the sale of a licensee’s products that incorporate the Company’s IP are classified as royalty revenues. Royalty revenues are recognized during the quarter in which the Company receives a report from the licensee detailing the shipment of products that incorporate the Company’s IP, which receipt is in the quarter following the licensee’s sale of such products to its customers. Royalties are calculated either as a percentage of the revenues received by the Company’s licensees on sales of products incorporating the Company’s IP or on a per unit basis, as specified in the agreements with the licensees. Non-refundable payments on account of prepaid units (prepaid royalties) are included within the Company’s licensing and related revenue line on the consolidated statements of income. | |||||||||||||
In addition to license fees, contracts with customers generally contain an agreement to provide for post contract support and training, which consists of telephone or e-mail support, correction of errors (bug fixing) and unspecified updates and upgrades. Fees for post contract support, which takes place after delivery to the customer, are specified in the contract and are generally mandatory for the first year. After the mandatory period, the customer may extend the support agreement on similar terms on an annual basis. The Company recognizes revenue for post contract support on a straight-line basis over the period for which technical support is contractually agreed to be provided to the licensee, typically 12 months. Revenues from training are recognized as the training is performed. | |||||||||||||
Revenues from the sale of development systems are recognized when title to the product passes to the customer and all other revenue recognition criteria have been met. | |||||||||||||
The Company usually does not provide rights of return. When rights of return are included in the license agreements, revenue is deferred until rights of return expire. | |||||||||||||
Deferred revenues include unearned amounts received under license agreements, unearned technical support and amounts paid by customers not yet recognized as revenues. | |||||||||||||
Cost of Revenue | ' | ||||||||||||
Cost of revenue: | |||||||||||||
Cost of revenue includes the costs of products, services and royalty expense payments to the Office of the Chief Scientist of Israel (refer to Note 14c for further details). Cost of product revenue includes materials and the portion of development costs associated with product development arrangements. Cost of service revenue includes salary costs for personnel engaged in services, training and customer support, and travel, telephone and other support costs. | |||||||||||||
Income Taxes | ' | ||||||||||||
Income taxes: | |||||||||||||
The Company recognizes income taxes under the liability method. It recognizes deferred income tax assets and liabilities for the expected future consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. These differences are measured using the enacted statutory tax rates that are expected to apply to taxable income for the years in which differences are expected to reverse. The effect of a change in tax rates on deferred income taxes is recognized in the statements of income during the period that includes the enactment date. | |||||||||||||
Valuation allowance is recorded to reduce the deferred tax assets to the net amount that the Company believes is more likely than not to be realized. The Company considers all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income and ongoing tax planning strategies, in assessing the need for a valuation allowance. | |||||||||||||
Tax benefits are recognized from uncertain tax positions only if the Company believes that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. Adjustments are made to these reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. The provision for income taxes includes the effects of any reserves that are considered appropriate, as well as the related net interest and penalties. | |||||||||||||
Research and Development | ' | ||||||||||||
Research and development: | |||||||||||||
Research and development costs are charged to the consolidated statements of income as incurred. | |||||||||||||
Government Grants | ' | ||||||||||||
Government grants: | |||||||||||||
Government grants received by the Company relating to categories of operating expenditures are credited to the consolidated statements of income during the period in which the expenditure to which they relate is charged. Royalty and non-royalty-bearing grants from the Office of the Chief Scientist of Israel for funding certain approved research and development projects are recognized at the time when the Company is entitled to such grants, on the basis of the related costs incurred, and included as a deduction from research and development expenses. | |||||||||||||
The Company recorded grants in the amounts of $2,518, $2,849 and $3,304 for the years ended December 31, 2011, 2012 and 2013, respectively. The Company’s Israeli subsidiary is obligated to pay royalties amounting to 3%-3.5% of the sales of certain products the development of which received grants from the Office of the Chief Scientist of Israel in previous years. The obligation to pay these royalties is contingent on actual sales of the products. Grants received from Enterprise Ireland, Invest Northern Ireland and the Office of the Chief Scientist of Israel may become repayable if certain criteria under the grants are not met. | |||||||||||||
Employee Benefit Plan | ' | ||||||||||||
Employee benefit plan: | |||||||||||||
Certain of the Company’s employees are eligible to participate in a defined contribution pension plan (the “Plan”). Participants in the Plan may elect to defer a portion of their pre-tax earnings into the Plan, which is run by an independent party. The Company makes pension contributions at rates varying up to 10% of the participant’s pensionable salary. Contributions to the Plan are recorded as an expense in the consolidated statements of income. | |||||||||||||
The Company’s U.S. operations maintain a retirement plan (the “U.S. Plan”) that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Participants in the U.S. Plan may elect to defer a portion of their pre-tax earnings, up to the Internal Revenue Service annual contribution limit. The Company matches 100% of each participant’s contributions up to a maximum of 6% of the participant’s base pay. Each participant may contribute up to 15% of base remuneration. Contributions to the U.S. Plan are recorded during the year contributed as an expense in the consolidated statements of income. | |||||||||||||
Total contributions for the years ended December 31, 2011, 2012 and 2013 were $311, $313 and $338, respectively. | |||||||||||||
Accrued Severance Pay | ' | ||||||||||||
Accrued severance pay: | |||||||||||||
The liability of CEVA’s Israeli subsidiary for severance pay is calculated pursuant to Israeli severance pay law for all Israeli employees, based on the most recent salary of each employee multiplied by the number of years of employment for that employee as of the balance sheet date. The Israeli subsidiary’s liability is fully provided for by monthly deposits with severance pay funds, insurance policies and an accrual. | |||||||||||||
The deposited funds include profits and losses accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israeli severance pay law or labor agreements. The value of these policies is recorded as an asset on the Company’s consolidated balance sheets. | |||||||||||||
Severance pay expenses, net of related income, for the years ended December 31, 2011, 2012 and 2013, were $1,037, $826 and $1,014, respectively. | |||||||||||||
Equity-based Compensation | ' | ||||||||||||
Equity-based compensation: | |||||||||||||
The Company accounts for equity-based compensation in accordance with FASB ASC No. 718, “Stock Compensation” which requires the recognition of compensation expenses based on estimated fair values for all equity-based awards made to employees and nonemployees directors. | |||||||||||||
The Company estimates the fair value of equity-based awards on the date of grant using an option-pricing model. The value of the portion of an award that is ultimately expected to vest is recognized as an expense over the requisite service period in the Company’s consolidated statements of income. The Company recognizes compensation expenses for the value of its awards, which have graded vesting based on the accelerated attribution method over the requisite service period of each of the awards, net of estimated forfeitures. Estimated forfeitures are based on actual historical pre-vesting forfeitures and the rate is adjusted to reflect changes in facts and circumstances, if any. Estimated forfeiture rate will be revised if actual forfeitures differ from the initial estimates. | |||||||||||||
The Company uses the Monte-Carlo simulation model for options and stock appreciation rights (“SARs”) granted. The Monte-Carlo simulation model uses the assumptions noted below. Expected volatility was calculated based upon actual historical stock price movements over the most recent periods ending on the grant date, equal to the expected option and SAR term. The Company has historically not paid dividends and has no foreseeable plans to pay dividends. The risk-free interest rate is based on the yield from U.S. Treasury zero-coupon bonds with an equivalent term. The Monte-Carlo model also considers the suboptimal exercise multiple which is based on the average exercise behavior of the Company’s employees over the past years, the contractual term of the options and SARs, and the probability of termination or retirement of the holder of the options and SARs in computing the value of the options and SARs. | |||||||||||||
The fair value for the Company’s stock options and SARs (other than share issuances in connection with the employee stock purchase plan, as detailed below) granted to employees and non-employees directors was estimated using the following assumptions: | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Expected dividend yield | 0% | 0% | 0% | ||||||||||
Expected volatility | 39%-58% | 43%-58% | 38%-54% | ||||||||||
Risk-free interest rate | 0.1%-2.7% | 0.1%-1.2% | 0.1%-2.5% | ||||||||||
Expected forfeiture (employees) | 10% | 10% | 10% | ||||||||||
Expected forfeiture (executives) | 5% | 5% | 5% | ||||||||||
Contractual term of up to | 10 years | 10 years | 10 years | ||||||||||
Suboptimal exercise multiple (employees) | 2.0-2.1 | 2.1 | 2.1 | ||||||||||
Suboptimal exercise multiple (executives) | 2.3 | 2.4 | 2.4 | ||||||||||
The fair value for rights to purchase shares of common stock under the Company’s employee stock purchase plan was estimated on the date of grant using the following assumptions: | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Expected dividend yield | 0% | 0% | 0% | ||||||||||
Expected volatility | 41%-50% | 41%-61% | 34%-53% | ||||||||||
Risk-free interest rate | 0.2%-1.8% | 0.1%-0.6% | 0.1%-0.2% | ||||||||||
Expected forfeiture | 0% | 0% | 0% | ||||||||||
Contractual term of up to | 24 months | 24 months | 24 months | ||||||||||
During the years ended December 31, 2011, 2012 and 2013, the Company recognized equity-based compensation expense related to stock options, SARs and employee stock purchase plan as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Cost of revenue | $ | 239 | $ | 241 | $ | 312 | |||||||
Research and development, net | 1,934 | 1,810 | 2,014 | ||||||||||
Sales and marketing | 1,094 | 1,036 | 1,311 | ||||||||||
General and administrative | 1,891 | 1,996 | 2,283 | ||||||||||
Total equity-based compensation expense | $ | 5,158 | $ | 5,083 | $ | 5,920 | |||||||
As of December 31, 2013, there was $5,630 of unrecognized compensation expense related to unvested equity awards. This amount is expected to be recognized over a weighted-average period of 1.4 years. To the extent the actual forfeiture rate is different from what the Company has estimated, equity-based compensation related to these awards will be different from the Company’s expectations. | |||||||||||||
FASB ASC No. 718 requires the cash flows resulting from the tax deductions in excess of the equity-based compensation costs recognized for those equity-based awards to be classified as financing cash flows. During the years ended December 31, 2011, 2012 and 2013, the Company classified $1,290, $672 and $0, respectively, of excess tax benefit from equity-based compensation as financing cash flows. | |||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||
Fair value of financial instruments: | |||||||||||||
The carrying amount of cash, cash equivalents, short term bank deposits, trade receivables, other accounts receivable, trade payables and other accounts payable approximates fair value due to the short-term maturities of these instruments. Marketable securities and derivative instruments are carried at fair value. See Note 3 for more information. | |||||||||||||
Comprehensive Income (Loss) | ' | ||||||||||||
Comprehensive income (loss): | |||||||||||||
The Company accounts for comprehensive income (loss) in accordance with FASB ASC No. 220, “Comprehensive Income.” This statement establishes standards for the reporting and display of comprehensive income (loss) and its components in a full set of general purpose financial statements. Comprehensive income (loss) generally represents all changes in stockholders’ equity during the period except those resulting from investments by, or distributions to, stockholders. The Company determined that its items of other comprehensive income (loss) relate to unrealized gains and losses, net of tax, on hedging derivative instruments and marketable securities. | |||||||||||||
Concentration of Credit Risk | ' | ||||||||||||
Concentration of credit risk: | |||||||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, bank deposits, marketable securities, foreign exchange contracts and trade receivables. The Company invests its surplus cash in cash deposits and marketable securities in financial institutions and has established guidelines relating to diversification and maturities to maintain safety and liquidity of the investments. | |||||||||||||
The majority of the Company’s cash and cash equivalents are invested in high grade certificates of deposits with major U.S., European and Israeli banks. Generally, cash and cash equivalents and bank deposits may be redeemed on demand and therefore minimal credit risk exists with respect to them. Nonetheless, deposits with these banks exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance limits or similar limits in foreign jurisdictions, to the extent such deposits are even insured in such foreign jurisdictions. While the Company monitors on a systematic basis the cash and cash equivalent balances in the operating accounts and adjust the balances as appropriate, these balances could be impacted if one or more of the financial institutions with which the Company deposit its funds fails or is subject to other adverse conditions in the financial or credit markets. To date the Company has experienced no loss of principal or lack of access to its invested cash or cash equivalents; however, the Company can provide no assurance that access to its invested cash and cash equivalents will not be affected if the financial institutions in which the Company holds its cash and cash equivalents fail. Furthermore, the Company holds an investment portfolio consisting principally of corporate bonds. The Company intends, and has the ability, to hold such investments until recovery of temporary declines in market value or maturity; accordingly, as of December 31, 2013, the Company believes the losses associated with its investments are temporary and no impairment loss was recognized during 2013. However, the Company can provide no assurance that it will recover declines in the market value of its investments. | |||||||||||||
The Company is exposed primarily to fluctuations in the level of U.S. interest rates. To the extent that interest rates rise, fixed interest investments may be adversely impacted, whereas a decline in interest rates may decrease the anticipated interest income for variable rate investments. | |||||||||||||
The Company is exposed to financial market risks, including changes in interest rates. The Company typically does not attempt to reduce or eliminate its market exposures on its investment securities because the majority of its investments are short-term. | |||||||||||||
The Company’s trade receivables are geographically diverse and are derived from sales to OEMs, mainly in the United States, Europe and Asia. Concentration of credit risk with respect to trade receivables is limited by credit limits, ongoing credit evaluation and account monitoring procedures. The Company performs ongoing credit evaluations of its customers and to date has not experienced any material losses. The Company makes judgments on its ability to collect outstanding receivables and provides allowances for the portion of receivables for which collection becomes doubtful. Provisions are made based upon a specific review of all significant outstanding receivables. In determining the provision, the Company considers the expected collectability of receivables. Allowance for doubtful accounts amounted to $9 and $0 as of December 31, 2012 and 2013, respectively. | |||||||||||||
The Company has no off-balance-sheet concentration of credit risk. | |||||||||||||
Derivative and Hedging Activities | ' | ||||||||||||
Derivative and hedging activities: | |||||||||||||
The Company follows the requirements of FASB ASC No. 815,” Derivatives and Hedging” which requires companies to recognize all of their derivative instruments as either assets or liabilities in the statement of financial position at fair value. The accounting for changes in 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 transaction and further, on the type of hedging transaction. 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. Due to the Company’s global operations, it is exposed to foreign currency exchange rate fluctuations in the normal course of its business. The Company’s treasury policy allows it to offset the risks associated with the effects of certain foreign currency exposures through the purchase of foreign exchange forward or option contracts (“Hedging Contracts”). The policy, however, prohibits the Company from speculating on such Hedging Contracts for profit. To protect against the increase in value of forecasted foreign currency cash flow resulting from salaries paid in currencies other than the U.S. dollar during the year, the Company instituted a foreign currency cash flow hedging program. The Company hedges portions of the anticipated payroll of its non-U.S. employees denominated in the currencies other than the U.S. dollar for a period of one to twelve months with Hedging Contracts. Accordingly, when the dollar strengthens against the foreign currencies, the decline in present value of future foreign currency expenses is offset by losses in the fair value of the Hedging Contracts. Conversely, when the dollar weakens, the increase in the present value of future foreign currency expenses is offset by gains in the fair value of the Hedging Contracts. These Hedging Contracts are designated as cash flow hedges. | |||||||||||||
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) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Any gain or loss on a derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item is recognized in current earnings during the period of change. As of December 31, 2012 and 2013, the notional principal amount of the Hedging Contracts to sell U.S. dollars held by the Company was $5,400 and $720, respectively. | |||||||||||||
Other derivative instruments that are not qualified as hedging instruments consist of forward contracts that the Company uses to hedge monetary assets denominated in currencies other than the U.S. dollar. Gains and losses on these contracts as well as related costs are included in financial income, net, along with the gains and losses of the related hedged item. As of December 31, 2012 and 2013, the notional principal amount of the foreign exchange contracts to sell NIS held by the Company was $2,610 and $0, respectively. | |||||||||||||
Advertising Expenses | ' | ||||||||||||
Advertising expenses: | |||||||||||||
Advertising expenses are charged to consolidated statements of income as incurred. Advertising expenses for the years ended December 31, 2011, 2012 and 2013 were $570, $791 and $660, respectively. | |||||||||||||
Treasury Stock | ' | ||||||||||||
Treasury stock: | |||||||||||||
The Company repurchases its common stock from time to time pursuant to a board-authorized share repurchase program through open market purchases and repurchase plans in accordance with Rules 10b5-1 and 10b-18 of the United States Securities Exchange Act of 1934, as amended. | |||||||||||||
The repurchases of common stock are accounted for as treasury stock, and result in a reduction of stockholders’ equity. When treasury shares are reissued, the Company accounts for the reissuance in accordance with FASB ASC No. 505-30, “Treasury Stock” and charges the excess of the repurchase cost over issuance price using the weighted average method to retained earnings . The purchase cost is calculated based on the specific identified method. In the case where the repurchase cost over issuance price using the weighted average method is lower than the issuance price, the Company credits the difference to additional paid-in capital. | |||||||||||||
Net Income Per Share of Common Stock | ' | ||||||||||||
Net income per share of common stock: | |||||||||||||
Basic net income per share is computed based on the weighted average number of shares of common stock outstanding during each year. Diluted net income per share is computed based on the weighted average number of shares of common stock outstanding during each year, plus dilutive potential shares of common stock considered outstanding during the year, in accordance with FASB ASC No. 260, “Earnings Per Share.” | |||||||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Numerator: | |||||||||||||
Net income | $ | 18,562 | $ | 13,685 | $ | 6,685 | |||||||
Denominator (in thousands): | |||||||||||||
Weighted-average common stock outstanding | 23,173 | 22,798 | 22,009 | ||||||||||
Effect of stock options and stock appreciation rights | 980 | 559 | 456 | ||||||||||
Diluted weighted-average common stock outstanding | 24,153 | 23,357 | 22,465 | ||||||||||
Basic net income per share | $ | 0.8 | $ | 0.6 | $ | 0.3 | |||||||
Diluted net income per share | $ | 0.77 | $ | 0.59 | $ | 0.3 | |||||||
The weighted-average number of shares related to outstanding options and stock appreciation rights excluded from the calculation of diluted net income per share, since their effect was anti-dilutive, were 592,647, 973,919 and 1,732,154 shares for the years ended December 31, 2011, 2012 and 2013, respectively. | |||||||||||||
Dividend policy | ' | ||||||||||||
Dividend policy: | |||||||||||||
The Company has never declared or paid any cash dividends on its capital stock and does not anticipate paying any cash dividends in the foreseeable future. |
ORGANIZATION_AND_SIGNIFICANT_A2
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Annual Depreciation Rates of Property, Plant and Equipment | ' | ||||||||||||
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, at the following annual rates: | |||||||||||||
% | |||||||||||||
Computers, software and equipment | 15-33 | ||||||||||||
Office furniture and equipment | 25-Jul | ||||||||||||
Leasehold improvements | 10 | ||||||||||||
(the shorter of the expected | |||||||||||||
lease term or useful | |||||||||||||
economic life) | |||||||||||||
Assumptions Used to Estimate Fair Value of Stock Options Granted | ' | ||||||||||||
The fair value for the Company’s stock options and SARs (other than share issuances in connection with the employee stock purchase plan, as detailed below) granted to employees and non-employees directors was estimated using the following assumptions: | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Expected dividend yield | 0% | 0% | 0% | ||||||||||
Expected volatility | 39%-58% | 43%-58% | 38%-54% | ||||||||||
Risk-free interest rate | 0.1%-2.7% | 0.1%-1.2% | 0.1%-2.5% | ||||||||||
Expected forfeiture (employees) | 10% | 10% | 10% | ||||||||||
Expected forfeiture (executives) | 5% | 5% | 5% | ||||||||||
Contractual term of up to | 10 years | 10 years | 10 years | ||||||||||
Suboptimal exercise multiple (employees) | 2.0-2.1 | 2.1 | 2.1 | ||||||||||
Suboptimal exercise multiple (executives) | 2.3 | 2.4 | 2.4 | ||||||||||
Assumptions Used to Estimate Fair Value of Employee Stock Purchase Plan | ' | ||||||||||||
The fair value for rights to purchase shares of common stock under the Company’s employee stock purchase plan was estimated on the date of grant using the following assumptions: | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Expected dividend yield | 0% | 0% | 0% | ||||||||||
Expected volatility | 41%-50% | 41%-61% | 34%-53% | ||||||||||
Risk-free interest rate | 0.2%-1.8% | 0.1%-0.6% | 0.1%-0.2% | ||||||||||
Expected forfeiture | 0% | 0% | 0% | ||||||||||
Contractual term of up to | 24 months | 24 months | 24 months | ||||||||||
Equity-Based Compensation Expenses Related to Stock Options, SARs and Employee Stock Purchase Plan | ' | ||||||||||||
During the years ended December 31, 2011, 2012 and 2013, the Company recognized equity-based compensation expense related to stock options, SARs and employee stock purchase plan as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Cost of revenue | $ | 239 | $ | 241 | $ | 312 | |||||||
Research and development, net | 1,934 | 1,810 | 2,014 | ||||||||||
Sales and marketing | 1,094 | 1,036 | 1,311 | ||||||||||
General and administrative | 1,891 | 1,996 | 2,283 | ||||||||||
Total equity-based compensation expense | $ | 5,158 | $ | 5,083 | $ | 5,920 | |||||||
Calculation of Numerator and Denominator in Earnings Per Share | ' | ||||||||||||
Diluted net income per share is computed based on the weighted average number of shares of common stock outstanding during each year, plus dilutive potential shares of common stock considered outstanding during the year, in accordance with FASB ASC No. 260, “Earnings Per Share.” | |||||||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Numerator: | |||||||||||||
Net income | $ | 18,562 | $ | 13,685 | $ | 6,685 | |||||||
Denominator (in thousands): | |||||||||||||
Weighted-average common stock outstanding | 23,173 | 22,798 | 22,009 | ||||||||||
Effect of stock options and stock appreciation rights | 980 | 559 | 456 | ||||||||||
Diluted weighted-average common stock outstanding | 24,153 | 23,357 | 22,465 | ||||||||||
Basic net income per share | $ | 0.8 | $ | 0.6 | $ | 0.3 | |||||||
Diluted net income per share | $ | 0.77 | $ | 0.59 | $ | 0.3 | |||||||
MARKETABLE_SECURITIES_Tables
MARKETABLE SECURITIES (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Cash And Cash Equivalents [Abstract] | ' | ||||||||||||||||
Summary of Available-for-Sale Marketable Securities | ' | ||||||||||||||||
The following is a summary of available-for-sale marketable securities at December 31, 2012 and 2013: | |||||||||||||||||
As at December 31, 2013 | |||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||
cost | unrealized | unrealized | value | ||||||||||||||
gains | losses | ||||||||||||||||
Available-for-sale - matures within one year: | |||||||||||||||||
Corporate bonds | $ | 2,852 | $ | 6 | $ | (3 | ) | $ | 2,855 | ||||||||
Available-for-sale - matures after one year through three years: | |||||||||||||||||
Corporate bonds | 65,702 | 134 | (227 | ) | 65,609 | ||||||||||||
Total | $ | 68,554 | $ | 140 | $ | (230 | ) | $ | 68,464 | ||||||||
As at December 31, 2012 | |||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||
cost | unrealized | unrealized | value | ||||||||||||||
gains | losses | ||||||||||||||||
Available-for-sale - matures within one year: | |||||||||||||||||
Corporate bonds | $ | 10,964 | $ | 73 | $ | (4 | ) | $ | 11,033 | ||||||||
10,964 | 73 | (4 | ) | 11,033 | |||||||||||||
Available-for-sale - matures after one year through three years: | |||||||||||||||||
Certificates of deposits | 1,960 | — | (1 | ) | 1,959 | ||||||||||||
Foreign government bond | 573 | 2 | — | 575 | |||||||||||||
Corporate bonds | 55,622 | 391 | (237 | ) | 55,776 | ||||||||||||
58,155 | 393 | (238 | ) | 58,310 | |||||||||||||
Total | $ | 69,119 | $ | 466 | $ | (242 | ) | $ | 69,343 | ||||||||
Summary of Gross Unrealized Losses and Fair Values on Investments | ' | ||||||||||||||||
The following table presents gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2012 and 2013, and the length of time that those investments have been in a continuous loss position: | |||||||||||||||||
Less than 12 months | 12 months or greater | ||||||||||||||||
Fair | Gross | Fair | Gross | ||||||||||||||
Value | unrealized | Value | unrealized | ||||||||||||||
loss | loss | ||||||||||||||||
As of December 31, 2013 | $ | 28,535 | $ | (208 | ) | $ | 4,278 | $ | (22 | ) | |||||||
As of December 31, 2012 | $ | 28,711 | $ | (241 | ) | $ | 489 | $ | (1 | ) | |||||||
Summary of Gross Realized Gain and Loss from Sale of Available-for-Sale Marketable Securities | ' | ||||||||||||||||
The following table presents gross realized gain and gross realized loss from sale of available-for-sale marketable securities: | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2011 | 2012 | 2013 | |||||||||||||||
Gross realized gain from sale of available-for-sale marketable securities | $ | 77 | $ | 301 | $ | 400 | |||||||||||
Gross realized loss from sale of available-for-sale marketable securities | $ | (23 | ) | $ | (117 | ) | $ | (21 | ) |
FAIR_VALUE_MEASUREMENT_Tables
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurement | ' | ||||||||||||||||
The table below sets forth the Company’s assets and liabilities measured at fair value by level within the fair value hierarchy. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||
Description | December 31, | Level I | Level II | Level III | |||||||||||||
2013 | |||||||||||||||||
Assets: | |||||||||||||||||
Marketable securities: | |||||||||||||||||
Corporate bonds | $ | 68,464 | — | $ | 68,464 | — | |||||||||||
Liabilities: | |||||||||||||||||
Foreign exchange contracts | 16 | — | 16 | — | |||||||||||||
Description | December 31, | Level I | Level II | Level III | |||||||||||||
2012 | |||||||||||||||||
Assets: | |||||||||||||||||
Marketable securities: | |||||||||||||||||
Certificates of deposits | $ | 1,959 | — | $ | 1,959 | — | |||||||||||
Foreign government bonds | 575 | — | 575 | — | |||||||||||||
Corporate bonds | 66,809 | — | 66,809 | — | |||||||||||||
Foreign exchange contracts | 216 | — | 216 | — | |||||||||||||
Liabilities: | |||||||||||||||||
Foreign exchange contracts | 112 | — | 112 | — |
PROPERTY_AND_EQUIPMENT_NET_Tab
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Composition of Assets, Grouped by Major Classifications | ' | ||||||||
Composition of assets, grouped by major classifications, is as follows: | |||||||||
As at December 31, | |||||||||
2012 | 2013 | ||||||||
Cost: | |||||||||
Computers, software and equipment | $ | 11,827 | $ | 10,329 | |||||
Office furniture and equipment | 835 | 513 | |||||||
Leasehold improvements | 801 | 870 | |||||||
13,463 | 11,712 | ||||||||
Less—Accumulated depreciation | (12,071 | ) | (10,096 | ) | |||||
Property and equipment, net | $ | 1,392 | $ | 1,616 | |||||
PREPAID_EXPENSES_AND_OTHER_CUR1
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ||||||||
Prepaid Expenses and Other Current Assets | ' | ||||||||
As at December 31, | |||||||||
2012 | 2013 | ||||||||
Prepaid leased design tools | $ | 253 | $ | 220 | |||||
Prepaid rent | 200 | 212 | |||||||
Inventories | 313 | 285 | |||||||
Taxes | 221 | 225 | |||||||
IT consumables | 90 | 302 | |||||||
Interest receivable | 650 | 458 | |||||||
Foreign exchange contracts | 216 | — | |||||||
Other | 418 | 294 | |||||||
$ | 2,361 | $ | 1,996 | ||||||
ACCRUED_EXPENSES_AND_OTHER_PAY1
ACCRUED EXPENSES AND OTHER PAYABLES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Accrued Expenses and Other Payables | ' | ||||||||
As at December 31, | |||||||||
2012 | 2013 | ||||||||
Engineering accruals | 824 | 606 | |||||||
Professional fees | 811 | 637 | |||||||
Deferred tax liabilities | 200 | 73 | |||||||
Government grants | 129 | 480 | |||||||
Other | 1,498 | 1,159 | |||||||
$ | 3,462 | $ | 2,955 | ||||||
STOCKHOLDERS_EQUITY_Tables
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
Summary of Stock Option Activity | ' | ||||||||||||||||||||||||
A summary of the Company’s stock option and SARs activities and related information for the year ended December 31, 2013, is as follows: | |||||||||||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||||||||||
options and | average | average | intrinsic- | ||||||||||||||||||||||
SAR units | exercise | remaining | value | ||||||||||||||||||||||
price | contractual | ||||||||||||||||||||||||
term | |||||||||||||||||||||||||
Outstanding at the beginning of the year | 2,546,117 | $ | 15.88 | ||||||||||||||||||||||
Granted (1) | 825,750 | 16.67 | |||||||||||||||||||||||
Options/SAR units exercised | (151,867 | ) | 8.1 | ||||||||||||||||||||||
Options/SAR units forfeited or expired | (104,028 | ) | 20.94 | ||||||||||||||||||||||
Outstanding at the end of the year (2) | 3,115,972 | $ | 16.3 | 4.8 | $ | 5,785,501 | |||||||||||||||||||
Vested or expected to vest as of December 31 | 3,008,858 | $ | 16.25 | 4.7 | $ | 5,778,854 | |||||||||||||||||||
Exercisable as of December 31 (3) | 1,595,611 | $ | 14.79 | 3.2 | $ | 5,675,797 | |||||||||||||||||||
-1 | Includes 693,750 SAR units which are convertible for a maximum number of shares of the Company’s common stock equal to 75% of the SAR units subject to the grant. | ||||||||||||||||||||||||
-2 | Due to the ceiling imposed on the SAR grants, the outstanding amount equals a maximum of 2,816,691 shares of the Company’s common stock issuable upon exercise. | ||||||||||||||||||||||||
-3 | Due to the ceiling imposed on the SAR grants, the exercisable amount equals a maximum of 1,549,633 shares of the Company’s common stock issuable upon exercise. | ||||||||||||||||||||||||
Schedule of Options Granted, Classified into Range of Exercise Price | ' | ||||||||||||||||||||||||
The options and SARs granted to employees of the Company and its subsidiaries and the options granted to non-employee directors of the Company and its subsidiaries which were outstanding as of December 31, 2013 have been classified into a range of exercise prices as follows: | |||||||||||||||||||||||||
Outstanding | Exercisable | ||||||||||||||||||||||||
Exercise price (range) | Weighted | Weighted | Weighted | Weighted | |||||||||||||||||||||
Number of | average | average | Number of | average | average | ||||||||||||||||||||
options | remaining | exercise | options | remaining | exercise | ||||||||||||||||||||
contractual | price | contractual | price | ||||||||||||||||||||||
life (years) | life (years) | ||||||||||||||||||||||||
5.76-9.80 | 776,274 | 1.6 | $ | 8.36 | 776,274 | 1.6 | $ | 8.36 | |||||||||||||||||
11.17-15.54 | 696,544 | 5.1 | $ | 14.8 | 305,053 | 4.7 | $ | 14.27 | |||||||||||||||||
16.08-17.61 | 814,062 | 6.7 | $ | 16.44 | 49,580 | 7.5 | $ | 17.21 | |||||||||||||||||
18.23-32.34 | 829,092 | 5.5 | $ | 24.87 | 464,704 | 4.6 | $ | 25.61 | |||||||||||||||||
3,115,972 | 4.8 | $ | 16.3 | 1,595,611 | 3.2 | $ | 14.79 | ||||||||||||||||||
DERIVATIVES_AND_HEDGING_ACTIVI1
DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||
Fair Value of Outstanding Derivative Instruments | ' | ||||||||||||
The fair value of the Company’s outstanding derivative instruments is as follows: | |||||||||||||
As at December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
Derivative assets: | |||||||||||||
Derivatives designated as cash flow hedging instruments: | |||||||||||||
Foreign exchange option contracts | $ | 158 | $ | — | |||||||||
Foreign exchange forward contracts | 58 | — | |||||||||||
Total | $ | 216 | $ | — | |||||||||
Derivative liabilities: | |||||||||||||
Derivatives designated as cash flow hedging instruments: | |||||||||||||
Foreign exchange forward contracts | $ | — | $ | 16 | |||||||||
Derivatives not qualified as hedging instruments: | |||||||||||||
Foreign exchange forward contracts | 112 | — | |||||||||||
Total | $ | 112 | $ | 16 | |||||||||
Increase in Gains (Losses) Recognized in "Accumulated Other Comprehensive Income ( Loss)" on Derivatives, Before Tax Effect | ' | ||||||||||||
The increase in gains (losses) recognized in “accumulated other comprehensive income (loss)” on derivatives, before tax effect, is as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Derivatives designated as cash flow hedging instruments: | |||||||||||||
Foreign exchange option contracts | $ | (102 | ) | $ | 177 | $ | 108 | ||||||
Foreign exchange forward contracts | (181 | ) | 69 | 175 | |||||||||
$ | (283 | ) | $ | 246 | $ | 283 | |||||||
Gain (Losses) Reclassified from "Accumulated Other Comprehensive Income (Loss)" | ' | ||||||||||||
The gains (losses) reclassified from “accumulated other comprehensive income (loss)” into income, are as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Derivatives designated as cash flow hedging instruments: | |||||||||||||
Foreign exchange option contracts | $ | (192 | ) | $ | 124 | $ | (266 | ) | |||||
Foreign exchange forward contracts | 9 | 71 | (249 | ) | |||||||||
$ | (183 | ) | $ | 195 | $ | (515 | ) | ||||||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||
Changes in Accumulated Balances of Other Comprehensive Income (Loss) | ' | ||||||||||||||||
The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the year ended December 31, 2013: | |||||||||||||||||
Unrealized | Unrealized | Estimated | Total | ||||||||||||||
gains (losses) on | gains (losses) | tax | |||||||||||||||
available-for-sale | on cash flow | (expense) | |||||||||||||||
marketable | hedges | benefit | |||||||||||||||
securities | |||||||||||||||||
Beginning balance | $ | 224 | $ | 216 | $ | (80 | ) | $ | 360 | ||||||||
Other comprehensive income (loss) before reclassifications | 65 | 283 | (57 | ) | 291 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (379 | ) | (515 | ) | 162 | (732 | ) | ||||||||||
Net current period other comprehensive income (loss) | (314 | ) | (232 | ) | 105 | (441 | ) | ||||||||||
Ending balance | $ | (90 | ) | $ | (16 | ) | $ | 25 | $ | (81 | ) | ||||||
Details about Accumulated Other Comprehensive Income (Loss) Components | ' | ||||||||||||||||
The following table provides details about reclassifications out of accumulated other comprehensive income (loss): | |||||||||||||||||
Details about Accumulated Other Comprehensive | Amount Reclassified from | Affected Line Item in the | |||||||||||||||
Income (Loss) Components | Accumulated Other Comprehensive | Statements of Income | |||||||||||||||
Income (Loss) | |||||||||||||||||
Year ended | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Unrealized gains on cash flow hedges | $ | 13 | Cost of revenues | ||||||||||||||
432 | Research and development | ||||||||||||||||
27 | Sales and marketing | ||||||||||||||||
43 | General and administrative | ||||||||||||||||
515 | Total, before income taxes | ||||||||||||||||
(54 | ) | Provision for income taxes | |||||||||||||||
461 | Total, net of income taxes | ||||||||||||||||
Unrealized gains on available-for-sale marketable securities | 379 | Financial income, net | |||||||||||||||
(108 | ) | Provision for income taxes | |||||||||||||||
271 | Total, net of income taxes | ||||||||||||||||
$ | 732 | Total, net of income taxes | |||||||||||||||
GEOGRAPHIC_INFORMATION_AND_MAJ1
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Revenues Based on Customer Location | ' | ||||||||||||
The following is a summary of revenues within geographic areas: | |||||||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Revenues based on customer location: | |||||||||||||
United States | $ | 14,312 | $ | 11,389 | $ | 6,067 | |||||||
Europe, Middle East (1) (2) | 19,878 | 13,695 | 13,384 | ||||||||||
Asia Pacific (3) (4) | 26,049 | 28,593 | 29,449 | ||||||||||
$ | 60,239 | $ | 53,677 | $ | 48,900 | ||||||||
(1) Germany | $ | 12,262 | $ | 6,840 | $ | 5,543 | |||||||
(2) Switzerland | $ | 6,150 | * | ) | * | ) | |||||||
(3) China | $ | 13,790 | $ | 15,919 | $ | 20,472 | |||||||
(4) Japan | * | ) | $ | 7,744 | * | ) | |||||||
*) | Less than 10% | ||||||||||||
Long-Lived Assets by Geographic Region | ' | ||||||||||||
December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Long-lived assets by geographic region: | |||||||||||||
Israel | 1,157 | 1,283 | 1,532 | ||||||||||
Other | 78 | 109 | 84 | ||||||||||
$ | 1,235 | $ | 1,392 | $ | 1,616 | ||||||||
Major Customers Data as Percentage of Total Revenues | ' | ||||||||||||
The following table sets forth the customers that represented 10% or more of the Company’s total revenues in each of the periods set forth below: | |||||||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Customer A | 17 | % | 24 | % | 28 | % | |||||||
Customer B | 16 | % | 13 | % | 11 | % | |||||||
Customer C | 12 | % | 12 | % | * | ) | |||||||
*) | Less than 10% | ||||||||||||
Information about Products and Services | ' | ||||||||||||
The following table sets forth the products and services that represented 10% or more of the Company’s total revenues in each of the periods set forth below: | |||||||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
CEVA-X family | 26 | % | 21 | % | 39 | % | |||||||
CEVA TeakLite family | 49 | % | 54 | % | 38 | % | |||||||
CEVA Teak family | 17 | % | 14 | % | * | ) | |||||||
*) | Less than 10% |
SELECTED_STATEMENTS_OF_INCOME_1
SELECTED STATEMENTS OF INCOME DATA (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ||||||||||||
Financial Income, Net | ' | ||||||||||||
Financial income, net: | |||||||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Interest income | $ | 4,937 | $ | 4,507 | $ | 3,884 | |||||||
Gain on available-for-sale marketable securities, net | 54 | 184 | 379 | ||||||||||
Amortization of premium on available-for-sale marketable securities, net | (2,068 | ) | (1,267 | ) | (1,504 | ) | |||||||
Foreign exchange loss, net | (14 | ) | (44 | ) | (45 | ) | |||||||
$ | 2,909 | $ | 3,380 | $ | 2,714 | ||||||||
TAXES_ON_INCOME_Tables
TAXES ON INCOME (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Provision for Income Taxes | ' | ||||||||||||
b. The provision for income taxes is as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Domestic taxes: | |||||||||||||
Current | $ | 1,452 | $ | 727 | $ | (37 | ) | ||||||
Deferred | (1,024 | ) | (742 | ) | (1,127 | ) | |||||||
Foreign taxes: | |||||||||||||
Current | 2,899 | 1,993 | 2,016 | ||||||||||
Deferred | (419 | ) | 84 | (64 | ) | ||||||||
$ | 2,908 | $ | 2,062 | $ | 788 | ||||||||
Income (loss) before taxes on income: | |||||||||||||
Domestic | $ | 542 | $ | (1,651 | ) | $ | (4,315 | ) | |||||
Foreign | 20,928 | 17,398 | 11,788 | ||||||||||
$ | 21,470 | $ | 15,747 | $ | 7,473 | ||||||||
Reconciliation Between Company's Effective Tax Rate and U.S. Statutory Rate | ' | ||||||||||||
c. Reconciliation between the Company’s effective tax rate and the U.S. statutory rate: | |||||||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Income before taxes on income | $ | 21,470 | $ | 15,747 | $ | 7,473 | |||||||
Theoretical tax at U.S. statutory rate- | 7,515 | 5,511 | 2,541 | ||||||||||
Foreign income taxes at rates other than U.S. rate | (5,622 | ) | (3,957 | ) | (2,610 | ) | |||||||
Subpart F | 221 | 529 | 633 | ||||||||||
Non-deductible items | 355 | 346 | 169 | ||||||||||
Valuation allowance | (545 | ) | (380 | ) | (111 | ) | |||||||
Other, net | 984 | 13 | 166 | ||||||||||
Taxes on income | $ | 2,908 | $ | 2,062 | $ | 788 | |||||||
Effective tax rate | 14 | % | 13 | % | 11 | % | |||||||
Deferred Taxes on Income | ' | ||||||||||||
Significant components of the Company’s deferred tax assets are as follows: | |||||||||||||
As at December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
Deferred tax assets | |||||||||||||
Operating loss carryforward | $ | 8,498 | $ | 8,544 | |||||||||
Accrued expenses | 414 | 490 | |||||||||||
Temporary differences related to R&D expenses | 992 | 1,045 | |||||||||||
Equity-based compensation | 1,435 | 2,085 | |||||||||||
Other | 639 | 774 | |||||||||||
Total gross deferred tax assets | 11,978 | 12,938 | |||||||||||
Valuation allowance | (8,735 | ) | (8,526 | ) | |||||||||
Net deferred tax assets | $ | 3,243 | $ | 4,412 | |||||||||
Deferred tax liabilities | |||||||||||||
Other | $ | 200 | $ | 73 | |||||||||
Total gross deferred tax liabilities | $ | 200 | $ | 73 | |||||||||
Net deferred tax assets (*) | $ | 3,043 | $ | 4,339 | |||||||||
(*) | Net deferred tax for the year ended December 31, 2012 from domestic and foreign jurisdictions was $1,851 and $1,192, respectively. | ||||||||||||
Net deferred tax for the year ended December 31, 2013 from domestic and foreign jurisdictions was $2,999 and $1,340, respectively. | |||||||||||||
Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits | ' | ||||||||||||
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits based on the provisions of FASB ASC No. 740 is as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
Beginning of year | $ | 3,054 | $ | 3,520 | |||||||||
Additions for current year tax positions | 187 | 116 | |||||||||||
Additions for prior year’s tax positions | 614 | — | |||||||||||
Reductions for prior year’s tax positions | (335 | ) | (73 | ) | |||||||||
Balance at December 31 | $ | 3,520 | $ | 3,563 | |||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||||||||||
Summary of Future Purchase Obligations and Minimum Rental Commitments for Leasehold Properties and Operating Leases with Non-Cancelable Terms | ' | ||||||||||||||||
As of December 31, 2013, future purchase obligations and minimum rental commitments for leasehold properties and operating leases with non-cancelable terms are as follows: | |||||||||||||||||
Minimum rental | Other purchase | Total | |||||||||||||||
commitments for | Commitments for | obligations | |||||||||||||||
leasehold | other lease | ||||||||||||||||
properties | obligations | ||||||||||||||||
2014 | $ | 728 | $ | 1,681 | $ | 220 | $ | 2,629 | |||||||||
2015 | 151 | 1,279 | — | 1,430 | |||||||||||||
2016 | 35 | — | — | 35 | |||||||||||||
$ | 914 | $ | 2,960 | $ | 220 | $ | 4,094 | ||||||||||
Recovered_Sheet1
Organization and Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment | |||
Significant Accounting Policies [Line Items] | ' | ' | ' |
Impairment of long-lived asset | $0 | $0 | $0 |
Date of annual test of impairment for goodwill | 'October 1st of each year | ' | ' |
Number of operating segments | 1 | ' | ' |
Impairment of goodwill | 0 | ' | ' |
Amount of grants recorded as reduction in research and development expense | 3,304 | 2,849 | 2,518 |
Pension contribution rate | 10.00% | ' | ' |
Percentage of match made by the employer up to a maximum of 6% | 100.00% | ' | ' |
Percentage of employees' gross pay for which the employer contributes a matching contribution to a defined contribution plan | 6.00% | ' | ' |
Maximum percentage contribute by each participant from base remuneration | 15.00% | ' | ' |
Employee plan contribution | 338 | 313 | 311 |
Severance pay expense, net of related income | 1,014 | 826 | 1,037 |
Unrecognized compensation expense | 5,630 | ' | ' |
Unrecognized compensation expense, weighted-average period of recognition | '1 year 4 months 24 days | ' | ' |
Excess tax benefit from equity-based compensation as financing cash flows | 0 | 672 | 1,290 |
Impairment loss | 0 | ' | ' |
Allowance for doubtful accounts trade receivable | 0 | 9 | ' |
Advertising expense | 660 | 791 | 570 |
Antidilutive shares excluded from computation of earnings per share | 1,732,154 | 973,919 | 592,647 |
Foreign exchange forward contracts | Derivatives designated as cash flow hedging instruments | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Notional principal amount of Hedging Contracts | 720 | 5,400 | ' |
Foreign exchange forward contracts | Derivatives not qualified as hedging instruments | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Notional principal amount of Hedging Contracts | $0 | $2,610 | ' |
Minimum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Royalty expenses percentage | 3.00% | ' | ' |
Maximum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Royalty expenses percentage | 3.50% | ' | ' |
Short-term investments | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Interest rate bank deposits | 1.88% | 2.32% | 2.06% |
Long-term investments | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Interest rate bank deposits | 2.14% | 2.40% | 2.28% |
Annual_Depreciation_Rates_of_P
Annual Depreciation Rates of Property, Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Computers, software and equipment | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Annual depreciation rate | 15.00% |
Computers, software and equipment | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Annual depreciation rate | 33.00% |
Office furniture and equipment | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Annual depreciation rate | 7.00% |
Office furniture and equipment | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Annual depreciation rate | 25.00% |
Leasehold improvements | ' |
Property, Plant and Equipment [Line Items] | ' |
Annual depreciation rate | 10.00% |
Annual depreciation rate | '(the shorter of the expected lease term or useful economic life) |
Assumptions_Used_to_Estimate_F
Assumptions Used to Estimate Fair Value of Stock Options Granted (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Stock options and SARs, Expected volatility, Minimum | 38.00% | 43.00% | 39.00% |
Stock options and SARs, Expected volatility, Maximum | 54.00% | 58.00% | 58.00% |
Risk-free interest rate, Minimum | 0.10% | 0.10% | 0.10% |
Risk-free interest rate, Maximum | 2.50% | 1.20% | 2.70% |
Expected forfeiture (employees) | 10.00% | 10.00% | 10.00% |
Expected forfeiture (executives) | 5.00% | 5.00% | 5.00% |
Contractual term of up to | '10 years | '10 years | '10 years |
Employees | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Suboptimal exercise multiple | 2.1 | 2.1 | ' |
Employees | Minimum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Suboptimal exercise multiple | ' | ' | 2 |
Employees | Maximum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Suboptimal exercise multiple | ' | ' | 2.1 |
Executives | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Suboptimal exercise multiple | 2.4 | 2.4 | 2.3 |
Assumptions_Used_to_Estimate_F1
Assumptions Used to Estimate Fair Value of Employee Stock Purchase Plan (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility, minimum | 38.00% | 43.00% | 39.00% |
Expected volatility, maximum | 54.00% | 58.00% | 58.00% |
Risk-free interest rate, Minimum | 0.10% | 0.10% | 0.10% |
Risk-free interest rate, Maximum | 2.50% | 1.20% | 2.70% |
Expected forfeiture | 10.00% | 10.00% | 10.00% |
Contractual term of up to | '10 years | '10 years | '10 years |
Employee stock purchase plan | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility, minimum | 34.00% | 41.00% | 41.00% |
Expected volatility, maximum | 53.00% | 61.00% | 50.00% |
Risk-free interest rate, Minimum | 0.10% | 0.10% | 0.20% |
Risk-free interest rate, Maximum | 0.20% | 0.60% | 1.80% |
Expected forfeiture | 0.00% | 0.00% | 0.00% |
Contractual term of up to | '24 months | '24 months | '24 months |
EquityBased_Compensation_Expen
Equity-Based Compensation Expenses Related to Stock Options, SARs and Employee Stock Purchase Plan (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total equity-based compensation expense | $5,920 | $5,083 | $5,158 |
Cost of revenue | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total equity-based compensation expense | 312 | 241 | 239 |
Research and development, net | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total equity-based compensation expense | 2,014 | 1,810 | 1,934 |
Sales and marketing | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total equity-based compensation expense | 1,311 | 1,036 | 1,094 |
General and administrative | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total equity-based compensation expense | $2,283 | $1,996 | $1,891 |
Calculation_of_Basic_and_Dilut
Calculation of Basic and Diluted Net Income Per Share (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Numerator: | ' | ' | ' |
Net income | $6,685 | $13,685 | $18,562 |
Denominator (in thousands): | ' | ' | ' |
Weighted-average common stock outstanding | 22,009 | 22,798 | 23,173 |
Effect of stock options and stock appreciation rights | 456 | 559 | 980 |
Diluted weighted-average common stock outstanding | 22,465 | 23,357 | 24,153 |
Basic net income per share | $0.30 | $0.60 | $0.80 |
Diluted net income per share | $0.30 | $0.59 | $0.77 |
Summary_of_AvailableforSale_Ma
Summary of Available-for-Sale Marketable Securities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale - matures within one year, Amortized cost | ' | $10,964 |
Available-for-sale - matures after one year through three years, Amortized cost | ' | 58,155 |
Amortized cost, Total | 68,554 | 69,119 |
Available-for-sale - matures within one year, Gross unrealized gains | ' | 73 |
Available-for-sale - matures after one year through three years, Gross unrealized gains | ' | 393 |
Gross unrealized gains, Total | 140 | 466 |
Available-for-sale - matures within one year, Gross unrealized losses | ' | -4 |
Available-for-sale - matures after one year through three years, Gross unrealized losses | ' | -238 |
Gross unrealized losses, Total | -230 | -242 |
Available-for-sale - matures within one year, Fair value | ' | 11,033 |
Available-for-sale - matures after one year through three years, Fair value | ' | 58,310 |
Fair value, Total | 68,464 | 69,343 |
Corporate bonds | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale - matures within one year, Amortized cost | 2,852 | 10,964 |
Available-for-sale - matures after one year through three years, Amortized cost | 65,702 | 55,622 |
Available-for-sale - matures within one year, Gross unrealized gains | 6 | 73 |
Available-for-sale - matures after one year through three years, Gross unrealized gains | 134 | 391 |
Available-for-sale - matures within one year, Gross unrealized losses | -3 | -4 |
Available-for-sale - matures after one year through three years, Gross unrealized losses | -227 | -237 |
Available-for-sale - matures within one year, Fair value | 2,855 | 11,033 |
Available-for-sale - matures after one year through three years, Fair value | 65,609 | 55,776 |
Certificates of deposits | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale - matures after one year through three years, Amortized cost | ' | 1,960 |
Available-for-sale - matures after one year through three years, Gross unrealized gains | ' | ' |
Available-for-sale - matures after one year through three years, Gross unrealized losses | ' | -1 |
Available-for-sale - matures after one year through three years, Fair value | ' | 1,959 |
Foreign government bond | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale - matures after one year through three years, Amortized cost | ' | 573 |
Available-for-sale - matures after one year through three years, Gross unrealized gains | ' | 2 |
Available-for-sale - matures after one year through three years, Gross unrealized losses | ' | ' |
Available-for-sale - matures after one year through three years, Fair value | ' | $575 |
Summary_of_Gross_Unrealized_Lo
Summary of Gross Unrealized Losses and Fair Values on Investments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investments Debt And Equity Securities [Abstract] | ' | ' |
Less than 12 months, Fair value | $28,535 | $28,711 |
Available-for-sale securities- matures within one year, Gross unrealized losses | -208 | -241 |
12 months or greater, Fair value | 4,278 | 489 |
Available-for-sale securities- matures after one year through three years, Gross unrealized losses | ($22) | ($1) |
Summary_of_Gross_Realized_Gain
Summary of Gross Realized Gain and Loss from Sale of Available-for-Sale Marketable Securities (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Investments Debt And Equity Securities [Abstract] | ' | ' | ' |
Gross realized gain from sale of available-for-sale marketable securities | $400 | $301 | $77 |
Gross realized loss from sale of available-for-sale marketable securities | ($21) | ($117) | ($23) |
Fair_Value_Measurement_Detail
Fair Value Measurement (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Foreign exchange contracts | ' | $216 |
Liabilities: | ' | ' |
Foreign exchange contracts | 16 | 112 |
Corporate bonds | ' | ' |
Assets: | ' | ' |
Marketable securities | 68,464 | 66,809 |
Certificates of deposits | ' | ' |
Assets: | ' | ' |
Marketable securities | ' | 1,959 |
Foreign government bonds | ' | ' |
Assets: | ' | ' |
Marketable securities | ' | 575 |
Level I | ' | ' |
Assets: | ' | ' |
Foreign exchange contracts | ' | ' |
Liabilities: | ' | ' |
Foreign exchange contracts | ' | ' |
Level I | Corporate bonds | ' | ' |
Assets: | ' | ' |
Marketable securities | ' | ' |
Level I | Certificates of deposits | ' | ' |
Assets: | ' | ' |
Marketable securities | ' | ' |
Level I | Foreign government bonds | ' | ' |
Assets: | ' | ' |
Marketable securities | ' | ' |
Level II | ' | ' |
Assets: | ' | ' |
Foreign exchange contracts | ' | 216 |
Liabilities: | ' | ' |
Foreign exchange contracts | 16 | 112 |
Level II | Corporate bonds | ' | ' |
Assets: | ' | ' |
Marketable securities | 68,464 | 66,809 |
Level II | Certificates of deposits | ' | ' |
Assets: | ' | ' |
Marketable securities | ' | 1,959 |
Level II | Foreign government bonds | ' | ' |
Assets: | ' | ' |
Marketable securities | ' | 575 |
Level III | ' | ' |
Assets: | ' | ' |
Foreign exchange contracts | ' | ' |
Liabilities: | ' | ' |
Foreign exchange contracts | ' | ' |
Level III | Corporate bonds | ' | ' |
Assets: | ' | ' |
Marketable securities | ' | ' |
Level III | Certificates of deposits | ' | ' |
Assets: | ' | ' |
Marketable securities | ' | ' |
Level III | Foreign government bonds | ' | ' |
Assets: | ' | ' |
Marketable securities | ' | ' |
Composition_of_Assets_Grouped_
Composition of Assets, Grouped by Major Classifications (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | $11,712 | $13,463 | ' |
Less-Accumulated depreciation | -10,096 | -12,071 | ' |
Property and equipment, net | 1,616 | 1,392 | 1,235 |
Computers, software and equipment | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 10,329 | 11,827 | ' |
Office furniture and equipment | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 513 | 835 | ' |
Leasehold improvements | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | $870 | $801 | ' |
Property_and_Equipment_Net_Add
Property and Equipment, Net - Additional Information (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Property Plant And Equipment [Abstract] | ' |
Decrease in the amount of property and equipment | $2,645 |
Recovered_Sheet2
Prepaid Expenses and Other Current Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ' |
Prepaid leased design tools | $220 | $253 |
Prepaid rent | 212 | 200 |
Inventories | 285 | 313 |
Taxes | 225 | 221 |
IT consumables | 302 | 90 |
Interest receivable | 458 | 650 |
Foreign exchange contracts | ' | 216 |
Other | 294 | 418 |
Prepaid expenses and other current assets | $1,996 | $2,361 |
Recovered_Sheet3
Accrued Expenses and Other Payables (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Payables And Accruals [Abstract] | ' | ' |
Engineering accruals | $606 | $824 |
Professional fees | 637 | 811 |
Deferred tax liabilities | 73 | 200 |
Government grants | 480 | 129 |
Other | 1,159 | 1,498 |
Accrued expenses and other payables | $2,955 | $3,462 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 31-May-10 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | 17-May-11 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2004 | Dec. 31, 2013 | Jul. 31, 2002 | Dec. 31, 2013 | Jun. 30, 2004 | Jun. 30, 2004 | Jun. 30, 2004 | Jun. 30, 2004 | 31-May-10 | Aug. 31, 2008 | Dec. 31, 2013 | Jul. 31, 2013 | Jan. 31, 2012 | 31-May-10 | |
Vote | Maximum | Stock Appreciation Rights (SARs) | Stock Appreciation Rights (SARs) | Stock Option And Stock Appreciation Rights | 2011 Stock Incentive Plan | 2011 Stock Incentive Plan | 2003 Director Stock Option Plan | 2003 Director Stock Option Plan | 2003 Director Stock Option Plan | 2002 Employee Stock Purchase Plan ESPP | 2002 Employee Stock Purchase Plan ESPP | Non Employee Director | Non Employee Director | Board of Directors Chairman | Board of Directors | Committee Chairperson | 10b5-1 plan | 10b5-1 plan | Rule 10b-18 | Rule 10b-18 | Rule 10b-18 | Rule 10b-18 | |||||
Maximum | Minimum | 2003 Director Stock Option Plan | 2003 Director Stock Option Plan | 2003 Director Stock Option Plan | 2003 Director Stock Option Plan | ||||||||||||||||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Number of vote per share entitled by holders of common stock | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Preferred stock, par value | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Common stock shares, authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 1,000,000 | 1,227,148 | ' | ' | 1,000,000 | |
Common stock shares, additional authorized | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | |
Share repurchase program termination period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2011-11 | ' | ' | ' | ' | ' | |
Common stock shares, remaining authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,966,700 | ' | |
Purchase of Treasury Stock, shares | 1,257,004 | 1,482,548 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Purchase of Treasury Stock, per share value | $15.76 | $18.33 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Purchase of Treasury Stock | $19,816 | $27,168 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Options granted percentage | ' | ' | ' | ' | ' | 400.00% | 400.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Options granted under stock incentive plans vesting rate, year one | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Shares vesting period | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Remaining shares vesting period | '36 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Options granted under stock incentive plan vesting rate, each anniversary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Weighted average fair value of options granted | $7.20 | $7.40 | $11.60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Total intrinsic value of options exercised | $1,336 | $581 | $18,286 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Number of options available for grant under stock plan | ' | ' | ' | ' | ' | ' | ' | 245,632 | ' | ' | ' | ' | ' | 202,934 | 2,150,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Additional common stock authorized for issuance | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Share incentive plan expiration | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2021-02 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Number of common shares authorized for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Options term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Option granted | 825,750 | [1] | ' | ' | ' | ' | 693,750 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38,000 | 15,000 | 13,000 | 13,000 | ' | ' | ' | ' | ' | ' |
Requisite period of service to get option granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Minimum working hours for eligibility of employee stock purchase plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '20 hours | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Minimum working days for employee stock purchase plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
[1] | Includes 693,750 SAR units which are convertible for a maximum number of shares of the Company's common stock equal to 75% of the SAR units subject to the grant. |
Summary_of_Stock_Option_Activi
Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | |
Number of shares outstanding, Option | ' | |
Number of shares outstanding, Beginning balance | 2,546,117 | |
Number of shares, Granted | 825,750 | [1] |
Number of shares outstanding, Ending balance | 3,115,972 | [2] |
Number of shares outstanding, Vested or expected to vest at end of period | 3,008,858 | |
Number of shares exercisable, Ending balance | 1,595,611 | [3] |
Weighted-average exercise price | ' | |
Weighted-average exercise price, Beginning balance | $15.88 | |
Weighted average exercise price, Granted | $16.67 | [1] |
Weighted average exercise price, Ending balance | $16.30 | [2] |
Weighted average exercise price, Vested or expected to vest at end of period | $16.25 | |
Weighted average exercise price, exercisable | $14.79 | [3] |
Weighted-Average Remaining Contractual Term | ' | |
Weighted average remaining contractual life, Outstanding at end of period | '4 years 9 months 18 days | [2] |
Weighted average remaining contractual life, Vested or expected to vest at end of period | '4 years 8 months 12 days | |
Weighted average remaining contractual life, Exercisable at end of period | '3 years 2 months 12 days | [3] |
Aggregate intrinsic value | ' | |
Aggregate intrinsic value, Outstanding | $5,785,501 | [2] |
Aggregate intrinsic value, Vested or expected to vest | 5,778,854 | |
Aggregate intrinsic value, Exercisable | $5,675,797 | [3] |
Stock Appreciation Rights (SARs) | ' | |
Number of shares outstanding, Option | ' | |
Number of shares, Granted | 693,750 | |
Number of shares, Options/SAR units exercised | -151,867 | |
Number of shares, Options/SAR units forfeited or expired | -104,028 | |
Weighted-average exercise price | ' | |
Weighted average exercise price, Options/SAR units exercised | $8.10 | |
Weighted average exercise price, Options/SAR units forfeited or expired | $20.94 | |
[1] | Includes 693,750 SAR units which are convertible for a maximum number of shares of the Company's common stock equal to 75% of the SAR units subject to the grant. | |
[2] | Due to the ceiling imposed on the SAR grants, the outstanding amount equals a maximum of 2,816,691 shares of the Company's common stock issuable upon exercise. | |
[3] | Due to the ceiling imposed on the SAR grants, the exercisable amount equals a maximum of 1,549,633 shares of the Company's common stock issuable upon exercise. |
Summary_of_Stock_Option_Activi1
Summary of Stock Option Activity (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2013 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Number of shares, Granted | 825,750 | [1] |
Outstanding amount of stock appreciation right units | 2,816,691 | |
Exercisable amount of stock appreciation right units | 1,549,633 | |
Stock Appreciation Rights (SARs) | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Number of shares, Granted | 693,750 | |
Maximum | Stock Appreciation Rights (SARs) | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Maximum percentage of stock appreciation right units | 75.00% | |
[1] | Includes 693,750 SAR units which are convertible for a maximum number of shares of the Company's common stock equal to 75% of the SAR units subject to the grant. |
Schedule_of_Options_Granted_Cl
Schedule of Options Granted, Classified into Range of Exercise Price (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | |
Outstanding, Number of options | 3,115,972 | [1] | 2,546,117 |
Outstanding, Weighted average remaining contractual life (years) | '4 years 9 months 18 days | [1] | ' |
Outstanding, Weighted average exercise price | $16.30 | [1] | $15.88 |
Exercisable, Number of options | 1,595,611 | [2] | ' |
Exercisable, Weighted average remaining contractual life (years) | '3 years 2 months 12 days | [2] | ' |
Exercisable, Weighted average exercise price | $14.79 | [2] | ' |
5.76 - 9.80 | ' | ' | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | |
Range of exercise price, Lower limit | $5.76 | ' | |
Range of exercise price, Upper limit | $9.80 | ' | |
Outstanding, Number of options | 776,274 | ' | |
Outstanding, Weighted average remaining contractual life (years) | '1 year 7 months 6 days | ' | |
Outstanding, Weighted average exercise price | $8.36 | ' | |
Exercisable, Number of options | 776,274 | ' | |
Exercisable, Weighted average remaining contractual life (years) | '1 year 7 months 6 days | ' | |
Exercisable, Weighted average exercise price | $8.36 | ' | |
11.17 - 15.54 | ' | ' | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | |
Range of exercise price, Lower limit | $11.17 | ' | |
Range of exercise price, Upper limit | $15.54 | ' | |
Outstanding, Number of options | 696,544 | ' | |
Outstanding, Weighted average remaining contractual life (years) | '5 years 1 month 6 days | ' | |
Outstanding, Weighted average exercise price | $14.80 | ' | |
Exercisable, Number of options | 305,053 | ' | |
Exercisable, Weighted average remaining contractual life (years) | '4 years 8 months 12 days | ' | |
Exercisable, Weighted average exercise price | $14.27 | ' | |
16.08 - 17.61 | ' | ' | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | |
Range of exercise price, Lower limit | $16.08 | ' | |
Range of exercise price, Upper limit | $17.61 | ' | |
Outstanding, Number of options | 814,062 | ' | |
Outstanding, Weighted average remaining contractual life (years) | '6 years 8 months 12 days | ' | |
Outstanding, Weighted average exercise price | $16.44 | ' | |
Exercisable, Number of options | 49,580 | ' | |
Exercisable, Weighted average remaining contractual life (years) | '7 years 6 months | ' | |
Exercisable, Weighted average exercise price | $17.21 | ' | |
18.23 - 32.34 | ' | ' | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | |
Range of exercise price, Lower limit | $18.23 | ' | |
Range of exercise price, Upper limit | $32.34 | ' | |
Outstanding, Number of options | 829,092 | ' | |
Outstanding, Weighted average remaining contractual life (years) | '5 years 6 months | ' | |
Outstanding, Weighted average exercise price | $24.87 | ' | |
Exercisable, Number of options | 464,704 | ' | |
Exercisable, Weighted average remaining contractual life (years) | '4 years 7 months 6 days | ' | |
Exercisable, Weighted average exercise price | $25.61 | ' | |
[1] | Due to the ceiling imposed on the SAR grants, the outstanding amount equals a maximum of 2,816,691 shares of the Company's common stock issuable upon exercise. | ||
[2] | Due to the ceiling imposed on the SAR grants, the exercisable amount equals a maximum of 1,549,633 shares of the Company's common stock issuable upon exercise. |
Fair_Value_of_Outstanding_Deri
Fair Value of Outstanding Derivative Instruments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Derivative assets | ' | $216 |
Derivative liabilities | 16 | 112 |
Derivatives not qualified as hedging instruments | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative liabilities | ' | 112 |
Foreign exchange option contracts | Derivatives designated as cash flow hedging instruments | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative assets | ' | 158 |
Foreign exchange forward contracts | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative liabilities | 16 | ' |
Foreign exchange forward contracts | Derivatives designated as cash flow hedging instruments | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative assets | ' | $58 |
Gain_Losses_Reclassified_from_
Gain (Losses) Reclassified from "Accumulated Other Comprehensive Income (Loss)" (Detail) (Derivatives designated as cash flow hedging instruments, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) recognized in other comprehensive income (loss), Effective portion, Net, Total | $283 | $246 | ($283) |
Gain (loss) reclassified from accumulated OCI into income, Effective portion, Net, Total | -515 | 195 | -183 |
Foreign exchange option contracts | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) recognized in other comprehensive income (loss), Effective portion, Net, Total | 108 | 177 | -102 |
Gain (loss) reclassified from accumulated OCI into income, Effective portion, Net, Total | -266 | 124 | -192 |
Foreign exchange forward contracts | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) recognized in other comprehensive income (loss), Effective portion, Net, Total | 175 | 69 | -181 |
Gain (loss) reclassified from accumulated OCI into income, Effective portion, Net, Total | ($249) | $71 | $9 |
Recovered_Sheet4
Derivatives and Hedging Activities - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivatives not qualified as hedging instruments | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) recognized in income, net | $112 | $112 | $43 |
Derivatives designated as cash flow hedging instruments | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (loss) recognized in income, net | $515 | $195 | $183 |
Changes_in_Accumulated_Balance
Changes in Accumulated Balances of Other Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning balance | $360 | ' | ' |
Other comprehensive income (loss) before reclassifications | 291 | ' | ' |
Amounts reclassified from accumulated other comprehensive income (loss) | -732 | ' | ' |
Net current period other comprehensive income (loss) | -441 | 1,261 | -1,218 |
Ending balance | -81 | 360 | ' |
Unrealized gains (losses) on available-for-sale marketable securities | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning balance | 224 | ' | ' |
Other comprehensive income (loss) before reclassifications | 65 | ' | ' |
Amounts reclassified from accumulated other comprehensive income (loss) | -379 | ' | ' |
Net current period other comprehensive income (loss) | -314 | ' | ' |
Ending balance | -90 | ' | ' |
Unrealized gains (losses) on cash flow hedges | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning balance | 216 | ' | ' |
Other comprehensive income (loss) before reclassifications | 283 | ' | ' |
Amounts reclassified from accumulated other comprehensive income (loss) | -515 | ' | ' |
Net current period other comprehensive income (loss) | -232 | ' | ' |
Ending balance | -16 | ' | ' |
Estimated tax (expense) benefit | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning balance | -80 | ' | ' |
Other comprehensive income (loss) before reclassifications | -57 | ' | ' |
Amounts reclassified from accumulated other comprehensive income (loss) | 162 | ' | ' |
Net current period other comprehensive income (loss) | 105 | ' | ' |
Ending balance | $25 | ' | ' |
Details_about_Accumulated_Othe
Details about Accumulated Other Comprehensive Income (Loss) Components (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Cost of revenues | ($5,163) | ($3,952) | ($3,559) |
Financial income, net | 2,714 | 3,380 | 2,909 |
Research and development | -21,216 | -20,243 | -21,543 |
Sales and marketing | -10,092 | -9,231 | -8,937 |
General and administrative | -7,670 | -7,884 | -7,639 |
Income before taxes on income | 7,473 | 15,747 | 21,470 |
Provision for income taxes | -788 | -2,062 | -2,908 |
Net income | 6,685 | 13,685 | 18,562 |
Reclassification out of accumulated other comprehensive income (loss) | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Net income | 732 | ' | ' |
Reclassification out of accumulated other comprehensive income (loss) | Unrealized gains (losses) on cash flow hedges | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Cost of revenues | 13 | ' | ' |
Research and development | 432 | ' | ' |
Sales and marketing | 27 | ' | ' |
General and administrative | 43 | ' | ' |
Income before taxes on income | 515 | ' | ' |
Provision for income taxes | -54 | ' | ' |
Net income | 461 | ' | ' |
Reclassification out of accumulated other comprehensive income (loss) | Unrealized gains (losses) on available-for-sale marketable securities | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Financial income, net | 379 | ' | ' |
Provision for income taxes | -108 | ' | ' |
Net income | $271 | ' | ' |
Revenues_Based_on_Customer_Loc
Revenues Based on Customer Location (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total revenues | $48,900 | $53,677 | $60,239 | |||
United States | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total revenues | 6,067 | 11,389 | 14,312 | |||
Europe and Middle East | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total revenues | 13,384 | 13,695 | 19,878 | |||
Asia Pacific | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total revenues | 29,449 | 28,593 | 26,049 | |||
Germany | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total revenues | 5,543 | 6,840 | 12,262 | |||
Switzerland | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total revenues | ' | [1] | ' | [1] | 6,150 | |
China | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total revenues | 20,472 | 15,919 | 13,790 | |||
Japan | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total revenues | ' | [1] | $7,744 | ' | [1] | |
[1] | Less than 10% |
LongLived_Assets_by_Geographic
Long-Lived Assets by Geographic Region (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Long-Lived Assets by Geographical Areas [Line Items] | ' | ' | ' |
Long-lived assets | $1,616 | $1,392 | $1,235 |
Israel | ' | ' | ' |
Long-Lived Assets by Geographical Areas [Line Items] | ' | ' | ' |
Long-lived assets | 1,532 | 1,283 | 1,157 |
Other | ' | ' | ' |
Long-Lived Assets by Geographical Areas [Line Items] | ' | ' | ' |
Long-lived assets | $84 | $109 | $78 |
Major_Customers_Data_as_Percen
Major Customers Data as Percentage of Total Revenues (Detail) (Revenue [Member], Customer Concentration Risk [Member]) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Customer A | ' | ' | ' | |
Revenue, Major Customer [Line Items] | ' | ' | ' | |
Percentage of total revenues | 28.00% | 24.00% | 17.00% | |
Customer B | ' | ' | ' | |
Revenue, Major Customer [Line Items] | ' | ' | ' | |
Percentage of total revenues | 11.00% | 13.00% | 16.00% | |
Customer C | ' | ' | ' | |
Revenue, Major Customer [Line Items] | ' | ' | ' | |
Percentage of total revenues | ' | [1] | 12.00% | 12.00% |
[1] | Less than 10% |
Information_about_Products_and
Information about Products and Services (Detail) (Revenue [Member], Product Concentration Risk [Member]) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
CEVA-X family | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Percentage of total revenues | 39.00% | 21.00% | 26.00% |
CEVA TeakLite family | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Percentage of total revenues | 38.00% | 54.00% | 49.00% |
CEVA Teak family | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Percentage of total revenues | ' | 14.00% | 17.00% |
Financial_Income_Net_Detail
Financial Income, Net (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Interest income | $3,884 | $4,507 | $4,937 |
Realized gain, net on sale of available-for-sale marketable securities | 379 | 184 | 54 |
Amortization of premium on available-for-sale marketable securities, net | -1,504 | -1,267 | -2,068 |
Foreign exchange loss, net | -45 | -44 | -14 |
Financial income, net | $2,714 | $3,380 | $2,909 |
Taxes_on_Income_Additional_Inf
Taxes on Income - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Line Items] | ' | ' | ' |
Effective income tax rate | 11.00% | 13.00% | 14.00% |
Unrecognized tax benefits | $3,563 | $3,520 | $3,054 |
Accrued interest related to unrecognized tax benefits | 226 | 48 | ' |
Net operating loss carryforwards, federal | 4,338 | ' | ' |
Excess tax benefits from stock option exercises | 3,644 | ' | ' |
Loss carryforwards begin to expire | '2030 | ' | ' |
Income not eligible for Approved Enterprise benefits | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Effective income tax rate | 25.00% | ' | ' |
Israel | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Effective income tax rate | 25.00% | ' | ' |
Increase in income tax rate | 26.50% | ' | ' |
Tax rate on dividends | 20.00% | ' | ' |
Israel | Foreign ownership exceeds 90% | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Effective income tax rate | 10.00% | ' | ' |
Israel | Foreign ownership exceeds 49% | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Effective income tax rate | 20.00% | ' | ' |
Israel | Minimum | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Tax exemption period, undistributed income | '2 years | ' | ' |
Israel | Maximum | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Tax exemption period, undistributed income | '10 years | ' | ' |
Ireland | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Effective income tax rate | 12.50% | ' | ' |
Open tax years | 'Subject to review by the applicable taxing authorities for the Irish subsidiary, are 2009 and subsequent years. | ' | ' |
Net operating loss carryforwards, foreign | 64,102 | ' | ' |
Ireland | Interest income | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Effective income tax rate | 25.00% | ' | ' |
California state | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Loss carryforwards begin to expire | '2014 | ' | ' |
Net operating loss carryforwards | $4,764 | ' | ' |
Provision_for_Income_Taxes_Det
Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Domestic taxes, current | ($37) | $727 | $1,452 |
Domestic taxes, deferred | -1,127 | -742 | -1,024 |
Foreign taxes, current | 2,016 | 1,993 | 2,899 |
Foreign taxes, deferred | -64 | 84 | -419 |
Taxes on income | 788 | 2,062 | 2,908 |
Income (loss) before taxes on income, domestic | -4,315 | -1,651 | 542 |
Income (loss) before taxes on income, foreign | 11,788 | 17,398 | 20,928 |
Income before taxes on income | $7,473 | $15,747 | $21,470 |
Reconciliation_Between_Effecti
Reconciliation Between Effective Tax Rate and U.S. Statutory Rate (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Income before taxes on income | $7,473 | $15,747 | $21,470 |
Theoretical tax at U.S. statutory rate- | 2,541 | 5,511 | 7,515 |
Foreign income taxes at rates other than U.S. rate | -2,610 | -3,957 | -5,622 |
Subpart F | 633 | 529 | 221 |
Non-deductible items | 169 | 346 | 355 |
Valuation allowance | -111 | -380 | -545 |
Other, net | 166 | 13 | 984 |
Taxes on income | $788 | $2,062 | $2,908 |
Effective tax rate | 11.00% | 13.00% | 14.00% |
Significant_Components_of_Comp
Significant Components of Company's Deferred Tax Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Deferred tax assets | ' | ' | ||
Operating loss carryforward | $8,544 | $8,498 | ||
Accrued expenses | 490 | 414 | ||
Temporary differences related to R&D expenses | 1,045 | 992 | ||
Equity-based compensation | 2,085 | 1,435 | ||
Other | 774 | 639 | ||
Total gross deferred tax assets | 12,938 | 11,978 | ||
Valuation allowance | -8,526 | -8,735 | ||
Net deferred tax assets | 4,412 | 3,243 | ||
Deferred tax liabilities | ' | ' | ||
Other | 73 | 200 | ||
Total gross deferred tax liabilities | 73 | 200 | ||
Net deferred tax assets | $4,339 | [1] | $3,043 | [1] |
[1] | Net deferred tax for the year ended December 31, 2012 from domestic and foreign jurisdictions was $1,851 and $1,192, respectively. Net deferred tax for the year ended December 31, 2013 from domestic and foreign jurisdictions was $2,999 and $1,340, respectively. |
Significant_Components_of_Comp1
Significant Components of Company's Deferred Tax Assets (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ' | ' | ||
Net deferred tax assets | $4,339 | [1] | $3,043 | [1] |
Domestic jurisdictions | ' | ' | ||
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ' | ' | ||
Net deferred tax assets | 2,999 | 1,851 | ||
Foreign jurisdictions | ' | ' | ||
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ' | ' | ||
Net deferred tax assets | $1,340 | $1,192 | ||
[1] | Net deferred tax for the year ended December 31, 2012 from domestic and foreign jurisdictions was $1,851 and $1,192, respectively. Net deferred tax for the year ended December 31, 2013 from domestic and foreign jurisdictions was $2,999 and $1,340, respectively. |
Unrecognized_Tax_Benefits_Deta
Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | ' | ' |
Beginning Balance | $3,520 | $3,054 |
Additions for current year tax positions | 116 | 187 |
Additions for prior year's tax positions | ' | 614 |
Reductions for prior year's tax positions | -73 | -335 |
Ending Balance | $3,563 | $3,520 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (Morrison and Forester LLP, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Morrison and Forester LLP | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Payable to related party | $0 | $171 | ' |
Fees paid to related party | $279 | $578 | $256 |
Recovered_Sheet5
Commitments And Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Commitment And Contingencies [Line Items] | ' | ' | ' |
Rent expenses | $839 | $821 | $884 |
Chief Scientist of State of Israel | ' | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' | ' |
Maximum royalty payment as percentage of grants received | 100.00% | ' | ' |
Amount of royalties paid | 147 | 12 | 0 |
Aggregate contingent royalty liability (including interest) | $8,575 | ' | ' |
Chief Scientist of State of Israel | Minimum | ' | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' | ' |
Percentage of royalties payment to sales of products and other related revenues | 3.00% | ' | ' |
Chief Scientist of State of Israel | Maximum | ' | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' | ' |
Percentage of royalties payment to sales of products and other related revenues | 3.50% | ' | ' |
Summary_of_Future_Purchase_Obl
Summary of Future Purchase Obligations and Minimum Rental Commitments for Leasehold Properties and Operating Leases with Non-Cancelable Terms (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Other Commitments [Line Items] | ' |
2014 | $2,629 |
2015 | 1,430 |
2016 | 35 |
Operating Leases, Future Minimum Payments Due, Total | 4,094 |
Minimum rental commitments for leasehold properties | ' |
Other Commitments [Line Items] | ' |
2014 | 728 |
2015 | 151 |
2016 | 35 |
Operating Leases, Future Minimum Payments Due, Total | 914 |
Commitments for other lease obligations | ' |
Other Commitments [Line Items] | ' |
2014 | 1,681 |
2015 | 1,279 |
2016 | ' |
Operating Leases, Future Minimum Payments Due, Total | 2,960 |
Other purchase obligations | ' |
Other Commitments [Line Items] | ' |
2014 | 220 |
2015 | ' |
2016 | ' |
Operating Leases, Future Minimum Payments Due, Total | $220 |
Recovered_Sheet6
Valuation And Qualifying Accounts (Detail) (Allowance for Doubtful Accounts [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for Doubtful Accounts [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at beginning of period | $9 | $25 | $25 |
Additions | ' | ' | ' |
Deduction | 9 | 16 | ' |
Balance at end of period | ' | $9 | $25 |