Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 03, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CEVA | ||
Entity Registrant Name | CEVA INC | ||
Entity Central Index Key | 1,173,489 | ||
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 | 20,509,464 | ||
Entity Public Float | $ 243,186,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 18,909 | $ 16,166 |
Short-term bank deposits | 30,767 | 37,444 |
Marketable securities (Note 3) | 48,266 | 47,833 |
Trade receivables (net of allowance for doubtful accounts of $25 at December 31, 2015 and December 31, 2014) | 4,068 | 8,347 |
Prepaid expenses and other current assets | 4,017 | 3,982 |
Total current assets | 106,027 | 113,772 |
Long-term assets: | ||
Bank deposits | 41,334 | 28,424 |
Severance pay fund | 7,297 | 7,011 |
Deferred tax assets (Note 13) | 1,628 | 1,263 |
Property and equipment, net (Note 5) | 3,731 | 2,605 |
Goodwill (Note 6) | 46,612 | 46,612 |
Intangible assets, net (Note 6) | 4,214 | 5,512 |
Investments in other company | 1,806 | 1,806 |
Total long-term assets | 106,622 | 93,233 |
Total assets | 212,649 | 207,005 |
Current liabilities: | ||
Trade payables | 693 | 864 |
Deferred revenues | 2,763 | 1,681 |
Accrued expenses and other payables (Note 7) | 3,633 | 3,793 |
Contingent consideration (Note 2) | 3,603 | |
Accrued payroll and related benefits | 11,894 | 10,054 |
Total current liabilities | 18,983 | 19,995 |
Long-term liabilities: | ||
Accrued severance pay | 7,571 | 7,096 |
Deferred tax liabilities (Note 13) | 865 | |
Total long-term liabilities | $ 7,571 | $ 7,961 |
Stockholders' equity (Note 8): | ||
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, 2014 and 2015; 20,252,490 and 20,529,933 shares outstanding at December 31, 2014 and 2015, respectively | $ 21 | $ 20 |
Additional paid in-capital | 208,744 | 209,426 |
Treasury stock at cost (3,342,670 and 3,065,227 shares of common stock at December 31, 2014 and 2015, respectively) | (51,798) | (54,708) |
Accumulated other comprehensive loss (Note 10) | (419) | (436) |
Retained earnings | 29,547 | 24,747 |
Total stockholders' equity | 186,095 | 179,049 |
Total liabilities and stockholders' equity | $ 212,649 | $ 207,005 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts trade receivable | $ 25 | $ 25 |
Preferred Stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common Stock, par value | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 60,000,000 | 60,000,000 |
Common Stock, shares issued | 23,595,160 | 23,595,160 |
Common Stock, shares outstanding | 20,529,933 | 20,252,490 |
Treasury stock, shares | 3,065,227 | 3,342,670 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||
Licensing and related revenue | $ 32,135 | $ 28,348 | $ 22,372 |
Royalties | 27,364 | 22,460 | 26,528 |
Total revenues | 59,499 | 50,808 | 48,900 |
Cost of revenues | 5,424 | 5,000 | 5,163 |
Gross profit | 54,075 | 45,808 | 43,737 |
Operating expenses: | |||
Research and development, net | 28,113 | 25,828 | 21,216 |
Sales and marketing | 10,168 | 9,815 | 10,092 |
General and administrative | 8,184 | 8,054 | 7,670 |
Amortization of intangible assets (Note 6) | 1,298 | 649 | |
Total operating expenses | 47,763 | 44,346 | 38,978 |
Operating income | 6,312 | 1,462 | 4,759 |
Financial income, net (Note 12) | 1,069 | 975 | 2,714 |
Other loss (Note 1) | (404) | ||
Income before taxes on income | 7,381 | 2,033 | 7,473 |
Income taxes (Note 13) | 1,114 | 2,852 | 788 |
Net income | $ 6,267 | $ (819) | $ 6,685 |
Basic net income (loss) per share | $ 0.31 | $ (0.04) | $ 0.30 |
Diluted net income (loss) per share | $ 0.30 | $ (0.04) | $ 0.30 |
Weighted average shares used to compute net income (loss) per share | |||
Basic | 20,480 | 20,622 | 22,009 |
Diluted | 20,989 | 20,622 | 22,465 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss): | $ 6,267 | $ (819) | $ 6,685 |
Available-for-sale securities: | |||
Changes in unrealized gains (losses) | (151) | (324) | 65 |
Reclassification adjustments for (gains) losses included in net income | 78 | (6) | (379) |
Net change | (73) | (330) | (314) |
Cash flow hedges: | |||
Changes in unrealized gains (losses) | 177 | (430) | 283 |
Reclassification adjustments for (gains) losses included in net income | (104) | 382 | (515) |
Net change | 73 | (48) | (232) |
Other comprehensive income (loss) before tax | (378) | (546) | |
Income tax benefit related to components of other comprehensive income (loss) | (17) | (23) | (105) |
Other comprehensive income (loss), net of taxes | 17 | (355) | (441) |
Comprehensive income (loss) | $ 6,284 | $ (1,174) | $ 6,244 |
STATEMENTS OF CHANGES IN STOCKH
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | |
Beginning balance at Dec. 31, 2012 | $ 196,068 | $ 22 | $ 198,495 | $ (25,694) | $ 360 | $ 22,885 | |
Beginning balance (in shares) at Dec. 31, 2012 | 22,187,367 | ||||||
Net income (loss) | 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 | [1] | 4,504 | (2,025) | |||
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 | ||||||
Accumulated other comprehensive loss, net | (81) | ||||||
Net income (loss) | (819) | (819) | |||||
Other comprehensive income (loss) | (355) | (355) | |||||
Equity-based compensation | $ 5,011 | 5,011 | |||||
Purchase of Treasury stock, (in shares) | (1,227,148) | (1,227,148) | |||||
Purchase of Treasury stock | $ (18,657) | $ (1) | (18,656) | ||||
Issuance of Treasury stock upon exercise of stock-based awards (in shares) | 297,908 | ||||||
Issuance of Treasury stock upon exercise of stock-based awards | 2,974 | [1] | 4,953 | (1,979) | |||
Ending balance at Dec. 31, 2014 | $ 179,049 | $ 20 | 209,426 | (54,708) | (436) | 24,747 | |
Ending balance (in shares) at Dec. 31, 2014 | 20,252,490 | 20,252,490 | |||||
Accumulated other comprehensive loss, net | $ (436) | ||||||
Net income (loss) | 6,267 | 6,267 | |||||
Other comprehensive income (loss) | 17 | 17 | |||||
Equity-based compensation | 4,015 | 4,015 | |||||
Tax benefit related to exercise of stock-based awards | $ 112 | 112 | |||||
Purchase of Treasury stock, (in shares) | (508,931) | (508,931) | |||||
Purchase of Treasury stock | $ (10,078) | (10,078) | |||||
Issuance of Treasury stock upon exercise of stock-based awards (in shares) | 786,374 | ||||||
Issuance of Treasury stock upon exercise of stock-based awards | 6,713 | $ 1 | (4,809) | 12,988 | (1,467) | ||
Ending balance at Dec. 31, 2015 | $ 186,095 | $ 21 | $ 208,744 | $ (51,798) | (419) | $ 29,547 | |
Ending balance (in shares) at Dec. 31, 2015 | 20,529,933 | 20,529,933 | |||||
Accumulated unrealized loss from available-for-sale securities, net of taxes of $66 | (427) | ||||||
Accumulated unrealized gain from hedging activities, net of taxes of $1 | 8 | ||||||
Accumulated other comprehensive loss, net | $ (419) | $ (419) | |||||
[1] | Represent an amount lower than $1. |
STATEMENTS OF CHANGES IN STOCK7
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) $ in Thousands | Dec. 31, 2015USD ($) |
Statement of Stockholders' Equity [Abstract] | |
Accumulated unrealized loss from available-for-sale securities, taxes | $ 66 |
Accumulated unrealized loss from hedging activities, taxes | $ 1 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 6,267 | $ (819) | $ 6,685 |
Adjustments required to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation | 1,058 | 752 | 670 |
Amortization of intangible assets | 1,298 | 649 | |
Equity-based compensation | 4,015 | 5,011 | 5,920 |
Realized (gain) loss, net on sale of available-for-sale marketable securities | 78 | (6) | (379) |
Amortization of premiums on available-for-sale marketable securities | 1,111 | 1,121 | 1,504 |
Unrealized foreign exchange (gain) loss | 237 | 604 | (49) |
Loss on realization of investment in other company | 404 | ||
Changes in operating assets and liabilities: | |||
Trade receivables | 4,279 | (2,381) | 603 |
Prepaid expenses and other current assets | (136) | 819 | 146 |
Accrued interest on bank deposits | (318) | 351 | (245) |
Deferred tax, net | (1,213) | 2,531 | (1,191) |
Trade payables | (161) | (655) | (102) |
Deferred revenues | 1,082 | 950 | (242) |
Accrued expenses and other payables | (158) | (188) | (394) |
Accretion of contingent consideration | 97 | 169 | |
Accrued payroll and related benefits | 1,679 | 800 | 568 |
Income taxes payable | 93 | (1,057) | 207 |
Excess tax benefit from equity-based compensation | (112) | ||
Accrued severance pay, net | 184 | 54 | 6 |
Net cash provided by operating activities | 19,380 | 9,109 | 13,707 |
Cash flows from investing activities: | |||
Acquisition of subsidiary, net of cash acquired (Note 1) | (13,489) | ||
Purchase of property and equipment | (2,184) | (1,416) | (894) |
Investment in bank deposits | (53,328) | (51,511) | (40,190) |
Proceeds from bank deposits | 47,451 | 45,306 | 51,850 |
Investment in available-for-sale marketable securities | (29,800) | (38,413) | (64,760) |
Proceeds from maturity of available-for-sale marketable securities | 4,392 | 2,033 | 8,686 |
Proceeds from sale of available-for-sale marketable securities | 23,713 | 55,566 | 55,514 |
Investments in other companies | (934) | ||
Proceeds from realization of investment in other company | 111 | 1,032 | |
Net cash provided by (used in) investing activities | (9,645) | (892) | 9,272 |
Cash flows from financing activities: | |||
Payment of contingent consideration (Note 1) | (3,700) | ||
Purchase of Treasury Stock | (10,078) | (18,657) | (19,816) |
Proceeds from exercise of stock-based awards | 6,713 | 2,974 | 2,479 |
Excess tax benefit from equity-based compensation | 112 | 0 | 0 |
Net cash used in financing activities | (6,953) | (15,683) | (17,337) |
Effect of exchange rate changes on cash and cash equivalents | (39) | (485) | 53 |
Increase (decrease) in cash and cash equivalents | 2,743 | (7,951) | 5,695 |
Cash and cash equivalents at the beginning of the year | 16,166 | 24,117 | 18,422 |
Cash and cash equivalents at the end of the year | 18,909 | 16,166 | 24,117 |
Cash paid during the year for: | |||
Income and withholding taxes, net of refunds | $ 2,185 | $ 1,276 | $ 1,851 |
ORGANIZATION AND SIGNIFICANT AC
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
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 signal processing IPs, including programmable DSP cores and application-specific platforms for vision, imaging, audio and voice, and communications technologies, including wireless and wired modems, Wi-Fi, Bluetooth, and 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”). 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 operations 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 1.88%, 1.58% and 1.51% during 2013, 2014 and 2015, respectively. Marketable securities : Marketable securities consist mainly of corporate bonds. 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 is probable that the Company will 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 and the potential recovery period. For securities that are deemed other-than-temporarily impaired (“OTTI”), the amount of impairment is recognized in the statement of operations and is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income (loss). The Company did not recognize OTTI on its marketable securities in 2013, 2014 and 2015. 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 2.14%, 1.74% and 1.82% during 2013, 2014 and 2015, 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 10-33 Office furniture and equipment 7-33 Leasehold improvements 10-25 (the shorter of the expected 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 2013, 2014 and 2015. Goodwill : 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. There is 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, 2015, no impairment of goodwill has been identified. Intangible assets, net : Acquired intangible assets with definite lives are amortized over their estimated useful lives. The Company amortizes intangible assets on a straight-line basis with definite lives over periods ranging from one and a half to five and a half years. Intangible assets with definite lives are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of these assets is measured by comparison of their carrying amounts to future undiscounted cash flows the assets are expected to generate. If such assets are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the assets exceeds its fair market value. The Company did not record any impairments during the years ended December 31, 2014 and 2015. Investments in other company : The Company’s investment in one private company, in which it holds minority equity interests, is presented at cost because the Company does not have significant influence over the underlying investee. The investment is reviewed periodically to determine if its value has been impaired and adjustments are recorded as necessary. During the years ended December 31, 2013, 2014 and 2015, no impairment loss was identified. During 2014 and 2015, the Company received consideration of 774 Euro (approximately $1,032) and 99 Euro (approximately $111), respectively, when one of its private companies, Antcor Advanced Network Technologies S.A. (“Antcor”), a company in which the Company had a minority investment, was acquired. Pursuant to the acquisition agreement, the Company may receive additional proceeds from the buyer within five years after closing of the acquisition based on achievement of certain performance and other milestones by Antcor. During the year ended December 31, 2014, the Company recorded a loss of $404 from the sale of its investment in Antcor. 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 operations. 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 15c 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 and related 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 operations 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 operations as incurred. Government grants and tax credits : Government grants received by the Company relating to categories of operating expenditures are credited to the consolidated statements of operations 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 $3,304, $4,586 and $4,997 for the years ended December 31, 2013, 2014 and 2015, 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 the Office of the Chief Scientist of Israel may become repayable if certain criteria under the grants are not met. The French Research Tax Credit, Crédit d’Impôt Recherche (“CIR”), is a French tax incentive to stimulate research and development (“R&D”) which is relevant for the Company’s French subsidiaries (RivieraWaves and CEVA France). Generally, the CIR offsets the income tax to be paid and the remaining portion (if any) can be refunded. The CIR is calculated based on the claimed volume of eligible R&D expenditures by the Company. As a result, the CIR is presented as a deduction to “Research and development expenses” in the consolidated statements of operations. During the year ended December 31, 2014 and 2015, the Company recorded CIR in the amount of $675 and $1,414, respectively. 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 operations. 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 operations. Total contributions for the years ended December 31, 2013, 2014 and 2015 were $338, $561 and $733, 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, 2013, 2014 and 2015, were $1,014, $1,113 and $1,285, 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 non-employee directors. The Company estimates the fair value of options and stock appreciation right (“SAR”) 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 options and SARs, 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 recognizes compensation expenses for the value of its restricted stock unit (“RSU”) awards, based on the straight-line method over the requisite service period of each of the awards, net of estimated forfeitures. The fair value of each RSU is the market value as determined by the closing price of the common stock on the day of grant. The Company uses the Monte-Carlo simulation model for options and 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: 2013 2014 2015 Expected dividend yield 0% 0% 0% Expected volatility 38%-54% 33%-52% 33%-49% Risk-free interest rate 0.1%-2.5% 0.1%-2.5% 0.2%-2.4% 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) 2.1 2.1 2.1 Suboptimal exercise multiple (executives) 2.4 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: 2013 2014 2015 Expected dividend yield 0% 0% 0% Expected volatility 34%-53% 29%-52% 35%-36% Risk-free interest rate 0.1%-0.2% 0.1%-0.2% 0.1%-0.3% Expected forfeiture 0% 0% 0% Contractual term of up to 24 months 24 months 24 months During the years ended December 31, 2013, 2014 and 2015, the Company recognized equity-based compensation expense related to stock options, SARs, RSUs and employee stock purchase plan as follows: Year ended December 31, 2013 2014 2015 Cost of revenue $ 312 $ 193 $ 155 Research and development, net 2,014 2,027 1,838 Sales and marketing 1,311 909 568 General and administrative 2,283 1,882 1,454 Total equity-based compensation expense $ 5,920 $ 5,011 $ 4,015 As of December 31, 2015, there was $2,242 of unrecognized compensation expense related to unvested stock options, SARs and employee stock purchase plan . This amount is expected to be recognized over a weighted-average period of 1.4 years. As of December 31, 2015, there was $3,475 of unrecognized compensation expense related to unvested RSUs. This amount is expected to be recognized over a weighted-average period of 1.7 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, 2013, 2014 and 2015, the Company classified $0, $0 and $112, 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 4 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 has the ability to hold such investments until recovery of temporary declines in market value or maturity; accordingly, as of December 31, 2015, the Company believes the losses associated with its investments are temporary and no impairment loss was recognized during 2015. 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 $25 as of both December 31, 2014 and 2015. 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 |
ACQUISITION OF RIVIERAWAVES
ACQUISITION OF RIVIERAWAVES | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
ACQUISITION OF RIVIERAWAVES | NOTE 2: ACQUISITION OF RIVIERAWAVES On July 4, 2014 (the “Closing Date”), the Company acquired 100% of RivieraWaves SAS (“RivieraWaves”), a privately-held, French-based company and a provider of wireless connectivity intellectual property for Wi-Fi and Bluetooth technologies. The Company agreed to pay an aggregate of $18,378 to acquire RivieraWaves with $14,678 paid on the Closing Date and the remaining amount of $3,700 payable upon the satisfaction of certain milestones (the “Contingent Consideration”). The Contingent Consideration was recognized as a liability at fair value. As of December 31, 2014, the fair value of the Contingent Consideration was estimated to be $3,603. Accretion of the Contingent Consideration liability was included in financial income, net. During 2015, the Company fully paid the Contingent Consideration. In addition, the Company incurred acquisition-related costs in an amount of $310, which were included in general and administrative expenses for the year ended December 31, 2014. The acquisition was accounted in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 805, “Business Combinations.” Under the acquisition method of accounting, the total purchase price was allocated to the net tangible and intangible assets of RivieraWaves acquired in the acquisition, based on their fair values on the Closing Date. The results of operations of RivieraWaves are included in the Company’s consolidated financial statements as of the Closing Date. The primary rationale for this acquisition was to further expand CEVA’s non-cellular baseband business into advanced technology offerings in connectivity, including Wi-Fi and Bluetooth IP. The goodwill is primarily attributable to expected synergies resulting from the acquisition. In addition, as part of the acquisition, the Company established an employee retention plan for the RivieraWaves employees at a cost of approximately $3,400, to be payable on a semiannual basis for a period of two years after the Closing Date. During 2015, the Company paid $971 of the employee retention plan. Details of the fair value of consideration transferred and the purchase price allocation are as follows: (a) Consideration transferred: Cash $ 14,678 Fair value of Contingent Consideration 3,434 Total $ 18,112 (b) Under business combination accounting, the total purchase price was allocated to RivieraWaves’ net tangible and intangible assets based on their estimated fair values as set forth below. The excess of the purchase price over the net tangible and identifiable intangible assets was recorded as goodwill. Cash and cash equivalents $ 1,189 Bank deposits 1,384 Other assets 2,898 Intangible assets 6,161 Goodwill 10,114 Total assets 21,746 Current liabilities (2,201 ) Deferred tax liabilities, net (1,433 ) Total liabilities (3,634 ) Total $ 18,112 In performing the purchase price allocation, the Company considered, among other factors, analysis of historical financial performance, highest and best use of the acquired assets and estimates of future performance of RivieraWaves’ products. In its allocation, the Company also considered the fair value of intangible assets based on a market participant approach to valuation performed by a third party valuation firm using an income approach and estimates and assumptions provided by management. The following table sets forth the components of intangible assets associated with the RivieraWaves acquisition: Fair value Core technologies (1) $ 5,796 Customer relationships (2) 272 Customer backlog (3) 93 Total intangible assets $ 6,161 (1) Core technologies represent a combination of RivieraWaves’ processes and trade secrets related to the design and development of its products. This proprietary know-how can be leveraged to develop new technology and improve the Company’s products and is amortized using the straight line method. (2) Customer relationships represent the underlying relationships and agreements with RivieraWaves’ installed customer base and are amortized using the straight line method. (3) Customer backlog represents an order or production backlog arises from contracts or sales orders and are amortized using the straight line method. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2015 | |
Cash and Cash Equivalents [Abstract] | |
MARKETABLE SECURITIES | NOTE 3: MARKETABLE SECURITIES The following is a summary of available-for-sale marketable securities at December 31, 2014 and 2015: As at December 31, 2015 Amortized Gross Gross unrealized Fair Available-for-sale—matures within one year: Certificate of deposits $ 1 $ — $ — $ 1 Corporate bonds 9,257 1 (50 ) 9,208 9,258 1 (50 ) 9,209 Available-for-sale—matures after one year through three years: Corporate bonds 39,501 — (444 ) 39,057 39,501 — (444 ) 39,057 Total $ 48,759 $ 1 $ (494 ) $ 48,266 As at December 31, 2014 Amortized Gross Gross Fair Available-for-sale—matures within one year: Corporate bonds $ 5,443 $ — $ (46 ) $ 5,397 5,443 — (46 ) 5,397 Available-for-sale—matures after one year through three years: Certificate of deposits 1,975 — — 1,975 Corporate bonds 40,835 9 (383 ) 40,461 42,810 9 (383 ) 42,436 Total $ 48,253 $ 9 $ (429 ) $ 47,833 The following table presents gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2014 and 2015, 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 As of December 31, 2015 $ 32,695 $ (389 ) $ 14,488 $ (105 ) As of December 31, 2014 $ 34,152 $ (313 ) $ 9,469 $ (116 ) As of December 31, 2014 and 2015, management believes the impairments are not other than temporary and therefore the impairment losses were recorded in accumulated other comprehensive income (loss). The following table presents gross realized gains and losses from sale of available-for-sale marketable securities: Year ended December 31, 2013 2014 2015 Gross realized gains from sale of available-for-sale marketable securities $ 400 $ 99 $ 4 Gross realized losses from sale of available-for-sale marketable securities $ (21 ) $ (93 ) $ (82 ) |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | NOTE 4: 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 I Unadjusted quoted prices in active markets that are accessible on the measurement date for identical, unrestricted assets or liabilities; Level II 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 III 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, foreign currency derivative contracts and the Contingent Consideration at fair value. Marketable securities and foreign currency derivative contracts are classified within Level II as the valuation inputs are based on quoted prices and market observable data of similar instruments. The Contingent Consideration related to the RivieraWaves acquisition is classified within Level III as it is based on significant inputs not observable in the market. 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 Assets: Marketable securities: Certificate of deposits $ 1 — $ 1 — Corporate bonds $ 48,265 — $ 48,265 — Foreign exchange contracts 9 — 9 — Description December 31, Level I Level II Level III Assets: Marketable securities: Certificate of deposits $ 1,975 — $ 1,975 — Corporate bonds $ 45,858 — $ 45,858 — Liabilities: Foreign exchange contracts 64 — 64 — Contingent consideration 3,603 — — 3,603 The table below presents the changes in Level 3 Contingent Consideration liability measured on a recurring basis and related to the acquisition of RivieraWaves: Balance at July 4, 2014 $ 3,434 Accretion 169 Balance at December 31, 2014 3,603 Accretion 97 Payment (3,700 ) Balance at December 31, 2015 — |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 5: PROPERTY AND EQUIPMENT, NET Composition of assets, grouped by major classifications, is as follows: As at December 31, 2014 2015 Cost: Computers, software and equipment $ 12,180 $ 13,503 Office furniture and equipment 633 759 Leasehold improvements 1,130 1,865 13,943 16,127 Less—Accumulated depreciation (11,338 ) (12,396 ) Property and equipment, net $ 2,605 $ 3,731 |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS, NET | NOTE 6: GOODWILL AND INTANGIBLE ASSETS, NET (a) Goodwill: Changes in goodwill are as follows: 2014 2015 Balance as of January 1, $ 36,498 $ 46,612 Acquisition 10,114 — Balance as of December 31, $ 46,612 $ 46,612 (b) Intangible assets: Year ended December 31, 2014 Year ended December 31, 2015 Weighted Gross Accumulated Net Gross Accumulated Net Intangible assets—amortizable: Customer relationships 4.5 272 30 242 272 91 181 Customer backlog 1.5 93 31 62 93 93 — Core technologies 5.1 5,796 588 5,208 5,796 1,763 4,033 Total intangible assets $ 6,161 $ 649 $ 5,512 $ 6,161 $ 1,947 $ 4,214 Future estimated annual amortization charges are as follows: 2016 $ 1,236 2017 1,236 2018 901 2019 841 $ 4,214 |
ACCRUED EXPENSES AND OTHER PAYA
ACCRUED EXPENSES AND OTHER PAYABLES | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER PAYABLES | NOTE 7: ACCRUED EXPENSES AND OTHER PAYABLES As at December 31, 2014 2015 Engineering accruals 862 807 Professional fees 622 642 Government grants 201 288 Income taxes payable, net 739 830 Other 1,369 1,066 $ 3,793 $ 3,633 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 8: 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 which was further extended by an additional four million shares in 2010 and 2013. In October 2014, the Company’s Board of Directors authorized the repurchase by the Company of an additional one million shares of common stock pursuant to Rule 10b-18 of the Exchange Act. As of December 31, 2015, 491,069 shares of common stock remained authorized for repurchase under to the Company’s share repurchase program. 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. In 2014, the Company repurchased 1,227,148 shares of common stock at an average purchase price of $15.20 per share for an aggregate purchase price of $18,657. In 2015, the Company repurchased 508,931 shares of common stock at an average purchase price of $19.80 per share for an aggregate purchase price of $10,078. d. Employee and non-employee stock plans: The Company grants a mix of stock options, SARs capped with a ceiling and RSUs to employees and non-employee 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 2014 and 2015). 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 non-employee In connection with the Company’s acquisition of RivieraWaves, on July 7, 2014, the Company issued an aggregate of 113,000 SARs to 27 employees of RivieraWaves who joined the Company in connection with the acquisition. The value of these grants was not included in the acquisition price of RivieraWaves. The SARs were granted outside of the Company’s existing equity plans and were granted as a material inducement to such individuals entering into employment with the Company, in accordance with NASDAQ Listing Rule 5635(c)(4). All of the SARs were priced at $15.17, the fair market value on the grant date, and will vest over four years, with 25% of the SARs vesting after one year and the remaining vest in equal portions over the following 36 months, such that all SARs will vest after four years, subject to the employee’s continuous service through each vesting date. The SARs have a ceiling limit for maximum income capped at 400%, expire seven years from the grant date and are subject to the terms and condition of the individual SAR agreements. The SAR grants were approved by the compensation committee of the Board of Directors of the Company. A summary of the Company’s stock option and SARs activities and related information for the year ended December 31, 2015, is as follows: Number of Weighted Weighted Aggregate Outstanding at the beginning of the year 3,316,380 $ 16.50 Granted (1) 200,500 20.18 Exercised (905,116 ) 11.91 Forfeited or expired (205,309 ) 20.99 Outstanding at the end of the year (2) 2,406,455 $ 18.15 4.4 $ 13,942,939 Vested or expected to vest as of December 31 2,343,032 $ 18.18 4.4 $ 13,530,902 Exercisable as of December 31 (3) 1,562,042 $ 18.83 3.5 $ 8,428,814 (1) Includes 134,500 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 2,107,339 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 1,412,528 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, 2013, 2014 and 2015 was $7.2, $6.1 and $7.8 per share, respectively. The total intrinsic value of options and SARs exercised during the years ended December 31, 2013, 2014 and 2015 was $1,336, $1,372 and $8,960, 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, 2015 have been classified into a range of exercise prices as follows: Outstanding Exercisable Exercise price(range) Number of Weighted Weighted Number of Weighted Weighted 6.99-9.78 113,857 0.4 $ 8.29 113,857 0.4 $ 8.29 11.58-15.54 789,547 4.7 $ 14.74 461,108 3.7 $ 14.66 16.08-19.59 875,485 5.6 $ 17.30 421,553 5.3 $ 16.95 19.83-32.34 627,566 3.1 $ 25.40 565,524 2.8 $ 25.76 2,406,455 4.4 $ 18.15 1,562,042 3.5 $ 18.83 A RSU award is an agreement to issue shares of the Company’s common stock at the time the award or a portion thereof vests. RSUs granted to employees generally vest in three equal annual installments starting on the first anniversary of the grant date. RSUs granted to non-employee directors generally vest in full on the first anniversary of the grant date. A summary of the Company’s RSU activities and related information for the year ended December 31, 2015, is as follows: Number Weighted average fair value Unvested as at the beginning of the year — $ — Granted 245,000 19.89 Vested — — Forfeited (11,000 ) 19.83 Unvested at the end of the year 234,000 $ 19.89 Expected to vest after December 31, 2015 217,200 $ 19.88 Stock Plans As of December 31, 2015, the Company maintains the Company’s 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, 2015, options, SARs and RSUs to purchase 878,798 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 1,750,000 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, RSUs, 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, 1,350,000 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 original terms of the Director Plan, (a) any person who becomes a non-employee director of the Company was automatically granted an option to purchase 38,000 shares of common stock, (b) on June 30 of each year, beginning in 2004, each non-employee director who had served on the Company’s Board of Directors for at least six (6) months as of such date was automatically granted an option with the exercise price being the fair market value of the Company’s common stock as of July 1 st st st 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 2,500,000 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, 2015, 313,410 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 ACTIVIT
DERIVATIVES AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING ACTIVITIES | NOTE 9: DERIVATIVES AND HEDGING ACTIVITIES The fair value of the Company’s outstanding derivative instruments is as follows: As at December 31, 2014 2015 Derivative assets: Derivatives designated as cash flow hedging instruments: Foreign exchange forward contracts $ — $ 9 Total $ — $ 9 Derivative liabilities Derivatives designated as cash flow hedging instruments: Foreign exchange option contracts $ 52 $ — Foreign exchange forward contracts 12 — Total $ 64 $ — 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 (decrease) in unrealized gains (losses) recognized in “accumulated other comprehensive income (loss)” on derivatives, before tax effect, is as follows: Year ended December 31, 2013 2014 2015 Derivatives designated as cash flow hedging instruments: Foreign exchange option contracts $ 108 $ (389 ) $ 83 Foreign exchange forward contracts 175 (41 ) 94 $ 283 $ (430 ) $ 177 The net (gains) losses reclassified from “accumulated other comprehensive income (loss)” into income, are as follows: Year ended December 31, 2013 2014 2015 Derivatives designated as cash flow hedging instruments: Foreign exchange option contracts $ (266 ) $ 337 $ (31 ) Foreign exchange forward contracts (249 ) 45 (73 ) $ (515 ) $ 382 $ (104 ) The Company recorded in cost of revenues and operating expenses, a net gain of $515, a net loss of $382 and a net gain of $104 during the years ended December 31, 2013, 2014 and 2015, respectively, related to its Hedging Contracts. In addition, the Company recorded in financial income, net, a net gain of $112 during the year ended December 31, 2013, related to derivatives not qualified as hedging instruments. There were no derivatives not qualified as hedging instruments during 2014 and 2015. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 10: ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in accumulated balances of other comprehensive income (loss), net of taxes: Year ended December 31, 2015 Unrealized available-for-sale Unrealized Total Beginning balance $ (379 ) $ (57 ) $ (436 ) Other comprehensive income (loss) before reclassifications (118 ) 158 40 Amounts reclassified from accumulated other comprehensive income (loss) 70 (93 ) (23 ) Net current period other comprehensive income (loss) (48 ) 65 17 Ending balance $ (427 ) $ 8 $ (419 ) Year ended December 31, 2014 Unrealized available-for-sale Unrealized Total Beginning balance $ (65 ) $ (16 ) $ (81 ) Other comprehensive loss before reclassifications (311 ) (387 ) (698 ) Amounts reclassified from accumulated other comprehensive income (loss) (3 ) 346 343 Net current period other comprehensive loss (314 ) (41 ) (355 ) Ending balance $ (379 ) $ (57 ) $ (436 ) 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 Statements of Operations Year ended December 31, 2013 2014 2015 Unrealized gains (losses) on cash flow hedges $ 13 $ (17 ) $ — Cost of revenues 432 (305 ) 91 Research and development 27 (34 ) 5 Sales and marketing 43 (26 ) 8 General and administrative 515 (382 ) 104 Total, before income taxes 54 (36 ) 11 Income tax expense (benefit) 461 (346 ) 93 Total, net of income taxes Unrealized gains (losses) on available-for-sale marketable securities 379 6 (78 ) Financial income, net 108 3 (8 ) Income tax expense (benefit) 271 3 (70 ) Total, net of income taxes $ 732 $ (343 ) $ 23 Total, net of income taxes |
GEOGRAPHIC INFORMATION AND MAJO
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA | NOTE 11: 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, 2013 2014 2015 Revenues based on customer location: United States $ 6,067 $ 11,671 $ 9,737 Europe, Middle East (1) 13,384 5,655 7,064 Asia Pacific (2)(3) 29,449 33,482 42,698 $ 48,900 $ 50,808 $ 59,499 (1) Germany $ 5,543 * ) * ) (2) China $ 20,472 $ 20,568 $ 29,982 (3) S. Korea * ) * ) $ 6,173 *) Less than 10% 2014 2015 Long-lived assets by geographic region: Israel 2,219 3,090 France 328 279 United States 10 331 Other 48 31 $ 2,605 $ 3,731 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, 2013 2014 2015 Customer A 28 % 25 % 31 % Customer B 11 % * ) * ) *) Less than 10% c. Information about Products and Services: The following table sets forth the products and services as percentages of the Company’s total revenues in each of the periods set forth below: Year ended December 31, 2013 2014 2015 DSP products (DSP Cores and Platforms) 93 % 87 % 82 % Connectivity products (Bluetooth, WiFi and SATA/SAS) 7 % 13 % 18 % |
SELECTED STATEMENTS OF OPERATIO
SELECTED STATEMENTS OF OPERATIONS DATA | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
SELECTED STATEMENTS OF OPERATIONS DATA | NOTE 12: SELECTED STATEMENTS OF OPERATIONS DATA Financial income, net: Year ended December 31, 2013 2014 2015 Interest income $ 3,884 $ 2,824 $ 2,845 Gain (loss) on available-for-sale marketable securities, net 379 6 (78 ) Amortization of premium on available-for-sale marketable securities, net (1,504 ) (1,121 ) (1,111 ) Foreign exchange loss, net (45 ) (565 ) (490 ) Accretion of Contingent Consideration — (169 ) (97 ) $ 2,714 $ 975 $ 1,069 |
TAXES ON INCOME
TAXES ON INCOME | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
TAXES ON INCOME | NOTE 13: TAXES ON INCOME a. 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, 2015, the open tax years, subject to review by the applicable taxing authorities for the Irish subsidiary, are 2010 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 as the Company’s management has determined that the Company does not currently intend to distribute dividends. Therefore, deferred taxes have not been provided for such tax-exempt income. 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 26.5% in 2015, 26.5% in 2014 and 25% in 2013. On January 4, 2016, the Israeli Parliament (the Knesset) passed a law to reduce the Israeli corporate tax rate from 26.5% to 25% commencing on January 1, 2016. The Israeli subsidiary elected to compute 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. As of December 31, 2015, the open tax years, subject to review by the applicable taxing authorities for the Israeli subsidiary, are 2011 and subsequent years. 3. French Subsidiaries The French operating subsidiaries qualified for a 33.33% tax rate on its profits. As of December 31, 2015, the open tax years, subject to review by the applicable taxing authorities for the French subsidiaries, are 2013 and subsequent years. b. Taxes on income comprised of: Year ended December 31, 2013 2014 2015 Domestic taxes: Current $ (37 ) $ 7 $ 115 Deferred (1,127 ) 2,987 — Foreign taxes: Current 2,016 314 2,212 Deferred (64 ) (456 ) (1,213 ) $ 788 $ 2,852 $ 1,114 Income (loss) before taxes on income: Domestic $ (4,315 ) $ (2,379 ) $ (3,360 ) Foreign 11,788 4,412 10,741 $ 7,473 $ 2,033 $ 7,381 c. Reconciliation between the Company’s effective tax rate and the U.S. statutory rate: Year ended December 31, 2013 2014 2015 Income before taxes on income $ 7,473 $ 2,033 $ 7,381 Theoretical tax at U.S. statutory rate 2,541 691 2,510 Foreign income taxes at rates other than U.S. rate (1,057 ) (489 ) (958 ) Approved and benefited enterprises benefits (*) (1,553 ) (785 ) (1,653 ) Subpart F 633 394 434 Non-deductible items 433 723 349 Non-taxable items — (230 ) (481 ) Decrease in uncertain tax position (73 ) (920 ) — Changes in valuation allowance (111 ) 3,356 839 Other, net (25 ) 112 74 Taxes on income $ 788 $ 2,852 $ 1,114 (*) Basic and diluted earnings per share amounts of the benefit resulting from the “Approved Enterprise” and “Benefited Enterprise” status $ 0.07 $ 0.04 $ 0.08 d. Deferred taxes on income: Significant components of the Company’s deferred tax assets are as follows: As at December 31, 2014 2015 Deferred tax assets Operating loss carryforward $ 8,933 $ 9,066 Accrued expenses 706 1,165 Temporary differences related to R&D expenses 922 1,052 Equity-based compensation 2,563 2,625 Tax credit carry forward 800 875 Other 273 529 Total gross deferred tax assets 14,197 15,312 Valuation allowance (11,930 ) (12,740 ) Net deferred tax assets $ 2,267 $ 2,572 Deferred tax liabilities Intangible assets $ 1,843 $ 915 Other 26 29 Total deferred tax liabilities $ 1,869 $ 944 Net deferred tax assets (*) $ 398 $ 1,628 (*) Net deferred taxes for the years ended December 31, 2014 and 2015 are all from foreign jurisdictions. Changes in valuation allowances on deferred tax assets result from management’s assessment of the Company’s ability to utilize certain future tax deductions, operating losses and tax credit carryforwards prior to expiration. Valuation allowances were recorded to reduce deferred tax assets to an amount that will, more likely than not, be realized in the future. The net change in the valuation allowance primarily reflects an increase in deferred tax assets on net operating and other temporary differences for which full valuation allowance is recorded. 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 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, 2014 2015 Beginning of year $ 3,563 $ 2,859 Additions for current year tax positions 216 217 Decrease as a result of a lapse of applicable statute of limitations (920 ) — Balance at December 31 $ 2,859 $ 3,076 As of December 31, 2014 and 2015, there were $2,859 and $3,076, respectively, of unrecognized tax benefits that if recognized would affect the annual effective tax rate. As of December 31, 2014 and 2015, the Company had accrued interest related to unrecognized tax benefits of $39 and $54, respectively. The Company did not accrue penalties during the years ended December 31, 2014 and 2015. The Company believes that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs. The Company does not expect uncertain tax positions to change significantly over the next 12 months, except in the case of settlements with tax authorities, the likelihood and timing of which are difficult to estimate. f. Tax loss carryforwards: As of December 31, 2015, CEVA and its subsidiaries had net operating loss carryforwards for federal income tax purposes of approximately $7,020, which are available to offset future federal taxable income. Of that amount, $5,750 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, 2015, CEVA and its subsidiaries had net operating loss carryforwards for California income tax purposes of approximately $6,913, which are available to offset future California taxable income. Of that amount, $4,512 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 2016. As of December 31, 2015, CEVA’s Irish subsidiary had foreign operating losses of approximately $62,837, which are available to offset future taxable income indefinitely. A full valuation allowance was provided in relation to those carryforward tax losses due to the uncertainty of their utilization in the foreseeable future. As of December 31, 2015, CEVA’s French subsidiaries had foreign operating losses of approximately $1,438, which are available to offset future taxable income indefinitely. 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 2011. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 14: RELATED PARTY TRANSACTIONS One of the Company’s directors, Bruce Mann, served as a partner of Morrison & Foerster LLP, the Company’s outside legal counsel, until December 31, 2014. Fees attributed to Morrison & Foerster LLP during the years ended December 31, 2013 and 2014 were $279 and $275, respectively. There were no related party transactions during the year ended December 31, 2015. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 15: 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, 2015, 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, 2013, 2014 and 2015, were $839, $955 and $1,394, respectively. As of December 31, 2015, future purchase obligations and minimum rental commitments for leasehold properties and operating leases with non-cancelable terms are as follows: Minimum rental commitments for Commitments for Other purchase obligations Total 2016 $ 1,068 $ 931 $ 578 $ 2,577 2017 1,111 — — 1,111 2018 905 — — 905 2019 211 — — 211 2020 180 — — 180 $ 3,475 $ 931 $ 578 $ 4,984 c. Royalties: The Company participated in programs sponsored by the Israeli government for the support of research and development activities. Through December 31, 2015, 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. Royalty expenses relating to the OCS grants included in cost of revenues for the years ended December 31, 2013, 2014 and 2015 amounted to $147, $300 and $482, respectively. As of December 31, 2015, the aggregate contingent liability to the OCS (including interest) amounted to $15,135. |
SCHEDULE II-VALUATION AND QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNT | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNT | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS Balance at Additions Deduction Balance at Year ended December 31, 2015 Allowance for doubtful accounts $ 25 $ — $ — $ 25 Year ended December 31, 2014 Allowance for doubtful accounts $ — $ 25 $ — $ 25 Year ended December 31, 2013 Allowance for doubtful accounts $ 9 $ — $ 9 $ — |
ORGANIZATION AND SIGNIFICANT 25
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
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 signal processing IPs, including programmable DSP cores and application-specific platforms for vision, imaging, audio and voice, and communications technologies, including wireless and wired modems, Wi-Fi, Bluetooth, and 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”). |
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 operations 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 1.88%, 1.58% and 1.51% during 2013, 2014 and 2015, respectively. |
Marketable Securities | Marketable securities : Marketable securities consist mainly of corporate bonds. 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 is probable that the Company will 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 and the potential recovery period. For securities that are deemed other-than-temporarily impaired (“OTTI”), the amount of impairment is recognized in the statement of operations and is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income (loss). The Company did not recognize OTTI on its marketable securities in 2013, 2014 and 2015. |
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 2.14%, 1.74% and 1.82% during 2013, 2014 and 2015, 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 10-33 Office furniture and equipment 7-33 Leasehold improvements 10-25 (the shorter of the expected 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 2013, 2014 and 2015. |
Goodwill | Goodwill : 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. There is 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, 2015, no impairment of goodwill has been identified. |
Intangible Assets, Net | Intangible assets, net : Acquired intangible assets with definite lives are amortized over their estimated useful lives. The Company amortizes intangible assets on a straight-line basis with definite lives over periods ranging from one and a half to five and a half years. Intangible assets with definite lives are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of these assets is measured by comparison of their carrying amounts to future undiscounted cash flows the assets are expected to generate. If such assets are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the assets exceeds its fair market value. The Company did not record any impairments during the years ended December 31, 2014 and 2015. |
Investments in Other Companies | Investments in other company : The Company’s investment in one private company, in which it holds minority equity interests, is presented at cost because the Company does not have significant influence over the underlying investee. The investment is reviewed periodically to determine if its value has been impaired and adjustments are recorded as necessary. During the years ended December 31, 2013, 2014 and 2015, no impairment loss was identified. During 2014 and 2015, the Company received consideration of 774 Euro (approximately $1,032) and 99 Euro (approximately $111), respectively, when one of its private companies, Antcor Advanced Network Technologies S.A. (“Antcor”), a company in which the Company had a minority investment, was acquired. Pursuant to the acquisition agreement, the Company may receive additional proceeds from the buyer within five years after closing of the acquisition based on achievement of certain performance and other milestones by Antcor. During the year ended December 31, 2014, the Company recorded a loss of $404 from the sale of its investment in Antcor. |
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 operations. 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 15c 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 and related 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 operations 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 operations as incurred. |
Government Grants and Tax Credits | Government grants and tax credits : Government grants received by the Company relating to categories of operating expenditures are credited to the consolidated statements of operations 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 $3,304, $4,586 and $4,997 for the years ended December 31, 2013, 2014 and 2015, 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 the Office of the Chief Scientist of Israel may become repayable if certain criteria under the grants are not met. The French Research Tax Credit, Crédit d’Impôt Recherche (“CIR”), is a French tax incentive to stimulate research and development (“R&D”) which is relevant for the Company’s French subsidiaries (RivieraWaves and CEVA France). Generally, the CIR offsets the income tax to be paid and the remaining portion (if any) can be refunded. The CIR is calculated based on the claimed volume of eligible R&D expenditures by the Company. As a result, the CIR is presented as a deduction to “Research and development expenses” in the consolidated statements of operations. During the year ended December 31, 2014 and 2015, the Company recorded CIR in the amount of $675 and $1,414, respectively. |
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 operations. 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 operations. Total contributions for the years ended December 31, 2013, 2014 and 2015 were $338, $561 and $733, 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, 2013, 2014 and 2015, were $1,014, $1,113 and $1,285, 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 non-employee directors. The Company estimates the fair value of options and stock appreciation right (“SAR”) 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 options and SARs, 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 recognizes compensation expenses for the value of its restricted stock unit (“RSU”) awards, based on the straight-line method over the requisite service period of each of the awards, net of estimated forfeitures. The fair value of each RSU is the market value as determined by the closing price of the common stock on the day of grant. The Company uses the Monte-Carlo simulation model for options and 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: 2013 2014 2015 Expected dividend yield 0% 0% 0% Expected volatility 38%-54% 33%-52% 33%-49% Risk-free interest rate 0.1%-2.5% 0.1%-2.5% 0.2%-2.4% 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) 2.1 2.1 2.1 Suboptimal exercise multiple (executives) 2.4 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: 2013 2014 2015 Expected dividend yield 0% 0% 0% Expected volatility 34%-53% 29%-52% 35%-36% Risk-free interest rate 0.1%-0.2% 0.1%-0.2% 0.1%-0.3% Expected forfeiture 0% 0% 0% Contractual term of up to 24 months 24 months 24 months During the years ended December 31, 2013, 2014 and 2015, the Company recognized equity-based compensation expense related to stock options, SARs, RSUs and employee stock purchase plan as follows: Year ended December 31, 2013 2014 2015 Cost of revenue $ 312 $ 193 $ 155 Research and development, net 2,014 2,027 1,838 Sales and marketing 1,311 909 568 General and administrative 2,283 1,882 1,454 Total equity-based compensation expense $ 5,920 $ 5,011 $ 4,015 As of December 31, 2015, there was $2,242 of unrecognized compensation expense related to unvested stock options, SARs and employee stock purchase plan . This amount is expected to be recognized over a weighted-average period of 1.4 years. As of December 31, 2015, there was $3,475 of unrecognized compensation expense related to unvested RSUs. This amount is expected to be recognized over a weighted-average period of 1.7 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, 2013, 2014 and 2015, the Company classified $0, $0 and $112, 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 4 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 has the ability to hold such investments until recovery of temporary declines in market value or maturity; accordingly, as of December 31, 2015, the Company believes the losses associated with its investments are temporary and no impairment loss was recognized during 2015. 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 $25 as of both December 31, 2014 and 2015. 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, 2014 and 2015, the notional principal amount of the Hedging Contracts to sell U.S. dollars held by the Company was $4,200 and $3,200, respectively. |
Advertising Expenses | Advertising expenses : Advertising expenses are charged to consolidated statements of operations as incurred. Advertising expenses for the years ended December 31, 2013, 2014 and 2015 were $660, $792 and $928, 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. In 2015, the Company identified an incorrect classification with respect to reissuance of treasury shares upon exercise of stock options granted previously to the Company’s employees and non-employee directors. As a result, the Company revised its retained earnings and additional paid in capital for periods beginning in 2012 through 2014 in the cumulative amount of $2,178. The Company evaluated the materiality of the adjustment quantitatively and qualitatively and concluded it was not material to any of the prior periods presented and that correction of retained earnings and additional paid in capital as an out of period adjustment in 2015 would not be material to the Company’s consolidated financial statements for the year ended December 31, 2015. Consolidated net income and total shareholders’ equity for the year ended December 31, 2015 were not impacted. |
Net Income (Loss) Per Share of Common Stock | Net income (loss) per share of common stock : Basic net income (loss) per share is computed based on the weighted average number of shares of common stock outstanding during each year. Diluted net income (loss) 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, 2013 2014 2015 Numerator: Net income (loss) $ 6,685 $ (819 ) $ 6,267 Denominator (in thousands): Basic weighted-average common stock outstanding 22,009 20,622 20,480 Effect of stock options, stock appreciation rights and restricted stock units 456 — 509 Diluted weighted-average common stock outstanding 22,465 20,622 20,989 Basic net income (loss) per share $ 0.30 $ (0.04 ) $ 0.31 Diluted net income (loss) per share $ 0.30 $ (0.04 ) $ 0.30 The weighted-average number of shares related to outstanding options, SARs and RSUs excluded from the calculation of diluted net income per share, since their effect was anti-dilutive, were 820,631 shares for the year ended December 31, 2015. The total number of shares related to the outstanding options excluded from the calculation of diluted net loss per share was 3,316,380 for the year ended December 31, 2014. The weighted-average number of shares related to outstanding options and SARs excluded from the calculation of diluted net income per share, since their effect was anti-dilutive, were 1,732,154 shares for the year ended December 31, 2013. |
Recently Issued and Adopted Accounting Pronouncement | Recently Issued and Adopted Accounting Pronouncement : In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance related to revenue from contracts with customers. Under this guidance, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The updated standard will replace most existing revenue recognition guidance under GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. As currently issued and amended, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, although early adoption is permitted for annual reporting periods beginning after December 15, 2016. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. In November, 2015, the FASB issued Accounting Standards Update No. 2015-17 (ASU 2015-17) “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes.” ASU 2015-17 simplifies the presentation of deferred income taxes by eliminating the separate classification of deferred income tax liabilities and assets into current and noncurrent amounts in the consolidated balance sheet statement of financial position. The amendments in the update require that all deferred tax liabilities and assets be classified as noncurrent in the consolidated balance sheet. The amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods therein and may be applied either prospectively or retrospectively to all periods presented. Early adoption is permitted. The Company early adopted this standard in the fourth quarter of 2015 on a retrospective basis. Prior years have been retrospectively adjusted. As a result of the adoption of ASU 2015-17, the Company made the following adjustments to the 2014 balance sheet: a $1,868 decrease to current deferred tax assets, a $864 increase to noncurrent deferred tax asset, a $464 decrease to current deferred tax liability and a $540 decrease to noncurrent deferred tax liability. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which will replace the existing guidance in ASC 840, “Leases.” The updated standard aims to increase transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. This ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods; early adoption is permitted and modified retrospective application is required. The Company is in the process of evaluating this guidance to determine the impact it will have on its financial statements. |
Acquisition of RivieraWaves | On July 4, 2014 (the “Closing Date”), the Company acquired 100% of RivieraWaves SAS (“RivieraWaves”), a privately-held, French-based company and a provider of wireless connectivity intellectual property for Wi-Fi and Bluetooth technologies. The Company agreed to pay an aggregate of $18,378 to acquire RivieraWaves with $14,678 paid on the Closing Date and the remaining amount of $3,700 payable upon the satisfaction of certain milestones (the “Contingent Consideration”). The Contingent Consideration was recognized as a liability at fair value. As of December 31, 2014, the fair value of the Contingent Consideration was estimated to be $3,603. Accretion of the Contingent Consideration liability was included in financial income, net. During 2015, the Company fully paid the Contingent Consideration. In addition, the Company incurred acquisition-related costs in an amount of $310, which were included in general and administrative expenses for the year ended December 31, 2014. The acquisition was accounted in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 805, “Business Combinations.” Under the acquisition method of accounting, the total purchase price was allocated to the net tangible and intangible assets of RivieraWaves acquired in the acquisition, based on their fair values on the Closing Date. The results of operations of RivieraWaves are included in the Company’s consolidated financial statements as of the Closing Date. The primary rationale for this acquisition was to further expand CEVA’s non-cellular baseband business into advanced technology offerings in connectivity, including Wi-Fi and Bluetooth IP. The goodwill is primarily attributable to expected synergies resulting from the acquisition. In addition, as part of the acquisition, the Company established an employee retention plan for the RivieraWaves employees at a cost of approximately $3,400, to be payable on a semiannual basis for a period of two years after the Closing Date. During 2015, the Company paid $971 of the employee retention plan. Details of the fair value of consideration transferred and the purchase price allocation are as follows: (a) Consideration transferred: Cash $ 14,678 Fair value of Contingent Consideration 3,434 Total $ 18,112 (b) Under business combination accounting, the total purchase price was allocated to RivieraWaves’ net tangible and intangible assets based on their estimated fair values as set forth below. The excess of the purchase price over the net tangible and identifiable intangible assets was recorded as goodwill. Cash and cash equivalents $ 1,189 Bank deposits 1,384 Other assets 2,898 Intangible assets 6,161 Goodwill 10,114 Total assets 21,746 Current liabilities (2,201 ) Deferred tax liabilities, net (1,433 ) Total liabilities (3,634 ) Total $ 18,112 In performing the purchase price allocation, the Company considered, among other factors, analysis of historical financial performance, highest and best use of the acquired assets and estimates of future performance of RivieraWaves’ products. In its allocation, the Company also considered the fair value of intangible assets based on a market participant approach to valuation performed by a third party valuation firm using an income approach and estimates and assumptions provided by management. The following table sets forth the components of intangible assets associated with the RivieraWaves acquisition: Fair value Core technologies (1) $ 5,796 Customer relationships (2) 272 Customer backlog (3) 93 Total intangible assets $ 6,161 (1) Core technologies represent a combination of RivieraWaves’ processes and trade secrets related to the design and development of its products. This proprietary know-how can be leveraged to develop new technology and improve the Company’s products and is amortized using the straight line method. (2) Customer relationships represent the underlying relationships and agreements with RivieraWaves’ installed customer base and are amortized using the straight line method. (3) Customer backlog represents an order or production backlog arises from contracts or sales orders and are amortized using the straight line method. |
ORGANIZATION AND SIGNIFICANT 26
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 10-33 Office furniture and equipment 7-33 Leasehold improvements 10-25 (the shorter of the expected |
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: 2013 2014 2015 Expected dividend yield 0% 0% 0% Expected volatility 38%-54% 33%-52% 33%-49% Risk-free interest rate 0.1%-2.5% 0.1%-2.5% 0.2%-2.4% 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) 2.1 2.1 2.1 Suboptimal exercise multiple (executives) 2.4 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: 2013 2014 2015 Expected dividend yield 0% 0% 0% Expected volatility 34%-53% 29%-52% 35%-36% Risk-free interest rate 0.1%-0.2% 0.1%-0.2% 0.1%-0.3% 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, RSUs and Employee Stock Purchase Plan | During the years ended December 31, 2013, 2014 and 2015, the Company recognized equity-based compensation expense related to stock options, SARs, RSUs and employee stock purchase plan as follows: Year ended December 31, 2013 2014 2015 Cost of revenue $ 312 $ 193 $ 155 Research and development, net 2,014 2,027 1,838 Sales and marketing 1,311 909 568 General and administrative 2,283 1,882 1,454 Total equity-based compensation expense $ 5,920 $ 5,011 $ 4,015 |
Calculation of Basic and Diluted Net Income (Loss) Per Share | Basic net income (loss) per share is computed based on the weighted average number of shares of common stock outstanding during each year. Diluted net income (loss) 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, 2013 2014 2015 Numerator: Net income (loss) $ 6,685 $ (819 ) $ 6,267 Denominator (in thousands): Basic weighted-average common stock outstanding 22,009 20,622 20,480 Effect of stock options, stock appreciation rights and restricted stock units 456 — 509 Diluted weighted-average common stock outstanding 22,465 20,622 20,989 Basic net income (loss) per share $ 0.30 $ (0.04 ) $ 0.31 Diluted net income (loss) per share $ 0.30 $ (0.04 ) $ 0.30 |
ACQUISITION OF RIVIERAWAVES (Ta
ACQUISITION OF RIVIERAWAVES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Schedule of Consideration Transferred | (a) Consideration transferred: Cash $ 14,678 Fair value of Contingent Consideration 3,434 Total $ 18,112 |
Schedule of Purchase Price Allocation to Net Tangible and Intangible Assets Based on their Estimated Fair Values | (b) Under business combination accounting, the total purchase price was allocated to RivieraWaves’ net tangible and intangible assets based on their estimated fair values as set forth below. The excess of the purchase price over the net tangible and identifiable intangible assets was recorded as goodwill. Cash and cash equivalents $ 1,189 Bank deposits 1,384 Other assets 2,898 Intangible assets 6,161 Goodwill 10,114 Total assets 21,746 Current liabilities (2,201 ) Deferred tax liabilities, net (1,433 ) Total liabilities (3,634 ) Total $ 18,112 |
Components of Intangible Assets Associated with Acquisition | The following table sets forth the components of intangible assets associated with the RivieraWaves acquisition: Fair value Core technologies (1) $ 5,796 Customer relationships (2) 272 Customer backlog (3) 93 Total intangible assets $ 6,161 (1) Core technologies represent a combination of RivieraWaves’ processes and trade secrets related to the design and development of its products. This proprietary know-how can be leveraged to develop new technology and improve the Company’s products and is amortized using the straight line method. (2) Customer relationships represent the underlying relationships and agreements with RivieraWaves’ installed customer base and are amortized using the straight line method. (3) Customer backlog represents an order or production backlog arises from contracts or sales orders and are amortized using the straight line method. |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2014 and 2015: As at December 31, 2015 Amortized Gross Gross unrealized Fair Available-for-sale—matures within one year: Certificate of deposits $ 1 $ — $ — $ 1 Corporate bonds 9,257 1 (50 ) 9,208 9,258 1 (50 ) 9,209 Available-for-sale—matures after one year through three years: Corporate bonds 39,501 — (444 ) 39,057 39,501 — (444 ) 39,057 Total $ 48,759 $ 1 $ (494 ) $ 48,266 As at December 31, 2014 Amortized Gross Gross Fair Available-for-sale—matures within one year: Corporate bonds $ 5,443 $ — $ (46 ) $ 5,397 5,443 — (46 ) 5,397 Available-for-sale—matures after one year through three years: Certificate of deposits 1,975 — — 1,975 Corporate bonds 40,835 9 (383 ) 40,461 42,810 9 (383 ) 42,436 Total $ 48,253 $ 9 $ (429 ) $ 47,833 |
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, 2014 and 2015, 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 As of December 31, 2015 $ 32,695 $ (389 ) $ 14,488 $ (105 ) As of December 31, 2014 $ 34,152 $ (313 ) $ 9,469 $ (116 ) |
Summary of Gross Realized Gain and Loss from Sale of Available-for-Sale Marketable Securities | The following table presents gross realized gains and losses from sale of available-for-sale marketable securities: Year ended December 31, 2013 2014 2015 Gross realized gains from sale of available-for-sale marketable securities $ 400 $ 99 $ 4 Gross realized losses from sale of available-for-sale marketable securities $ (21 ) $ (93 ) $ (82 ) |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 Assets: Marketable securities: Certificate of deposits $ 1 — $ 1 — Corporate bonds $ 48,265 — $ 48,265 — Foreign exchange contracts 9 — 9 — Description December 31, Level I Level II Level III Assets: Marketable securities: Certificate of deposits $ 1,975 — $ 1,975 — Corporate bonds $ 45,858 — $ 45,858 — Liabilities: Foreign exchange contracts 64 — 64 — Contingent consideration 3,603 — — 3,603 |
Schedule of Changes in Level 3 Contingent Consideration Liability Measured on Recurring Basis | The table below presents the changes in Level 3 Contingent Consideration liability measured on a recurring basis and related to the acquisition of RivieraWaves: Balance at July 4, 2014 $ 3,434 Accretion 169 Balance at December 31, 2014 3,603 Accretion 97 Payment (3,700 ) Balance at December 31, 2015 — |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2014 2015 Cost: Computers, software and equipment $ 12,180 $ 13,503 Office furniture and equipment 633 759 Leasehold improvements 1,130 1,865 13,943 16,127 Less—Accumulated depreciation (11,338 ) (12,396 ) Property and equipment, net $ 2,605 $ 3,731 |
GOODWILL AND INTANGIBLE ASSET31
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Goodwill | Changes in goodwill are as follows: 2014 2015 Balance as of January 1, $ 36,498 $ 46,612 Acquisition 10,114 — Balance as of December 31, $ 46,612 $ 46,612 |
Summary of Intangible Assets | (b) Intangible assets: Year ended December 31, 2014 Year ended December 31, 2015 Weighted Gross Accumulated Net Gross Accumulated Net Intangible assets—amortizable: Customer relationships 4.5 272 30 242 272 91 181 Customer backlog 1.5 93 31 62 93 93 — Core technologies 5.1 5,796 588 5,208 5,796 1,763 4,033 Total intangible assets $ 6,161 $ 649 $ 5,512 $ 6,161 $ 1,947 $ 4,214 |
Summary of Future Estimated Annual Amortization Charges | Future estimated annual amortization charges are as follows: 2016 $ 1,236 2017 1,236 2018 901 2019 841 $ 4,214 |
ACCRUED EXPENSES AND OTHER PA32
ACCRUED EXPENSES AND OTHER PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Payables | As at December 31, 2014 2015 Engineering accruals 862 807 Professional fees 622 642 Government grants 201 288 Income taxes payable, net 739 830 Other 1,369 1,066 $ 3,793 $ 3,633 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015, is as follows: Number of Weighted Weighted Aggregate Outstanding at the beginning of the year 3,316,380 $ 16.50 Granted (1) 200,500 20.18 Exercised (905,116 ) 11.91 Forfeited or expired (205,309 ) 20.99 Outstanding at the end of the year (2) 2,406,455 $ 18.15 4.4 $ 13,942,939 Vested or expected to vest as of December 31 2,343,032 $ 18.18 4.4 $ 13,530,902 Exercisable as of December 31 (3) 1,562,042 $ 18.83 3.5 $ 8,428,814 (1) Includes 134,500 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 2,107,339 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 1,412,528 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, 2015 have been classified into a range of exercise prices as follows: Outstanding Exercisable Exercise price(range) Number of Weighted Weighted Number of Weighted Weighted 6.99-9.78 113,857 0.4 $ 8.29 113,857 0.4 $ 8.29 11.58-15.54 789,547 4.7 $ 14.74 461,108 3.7 $ 14.66 16.08-19.59 875,485 5.6 $ 17.30 421,553 5.3 $ 16.95 19.83-32.34 627,566 3.1 $ 25.40 565,524 2.8 $ 25.76 2,406,455 4.4 $ 18.15 1,562,042 3.5 $ 18.83 |
Summary of Restricted Stock Units Activity | A summary of the Company’s RSU activities and related information for the year ended December 31, 2015, is as follows: Number Weighted average fair value Unvested as at the beginning of the year — $ — Granted 245,000 19.89 Vested — — Forfeited (11,000 ) 19.83 Unvested at the end of the year 234,000 $ 19.89 Expected to vest after December 31, 2015 217,200 $ 19.88 |
DERIVATIVES AND HEDGING ACTIV34
DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2014 2015 Derivative assets: Derivatives designated as cash flow hedging instruments: Foreign exchange forward contracts $ — $ 9 Total $ — $ 9 Derivative liabilities Derivatives designated as cash flow hedging instruments: Foreign exchange option contracts $ 52 $ — Foreign exchange forward contracts 12 — Total $ 64 $ — |
Increase (Decrease) in Unrealized Gains (Losses) Recognized in "Accumulated Other Comprehensive Income (Loss)" on Derivatives, Before Tax Effect | The increase (decrease) in unrealized gains (losses) recognized in “accumulated other comprehensive income (loss)” on derivatives, before tax effect, is as follows: Year ended December 31, 2013 2014 2015 Derivatives designated as cash flow hedging instruments: Foreign exchange option contracts $ 108 $ (389 ) $ 83 Foreign exchange forward contracts 175 (41 ) 94 $ 283 $ (430 ) $ 177 |
Net (Gains) Losses Reclassified from "Accumulated Other Comprehensive Income (Loss)" | The net (gains) losses reclassified from “accumulated other comprehensive income (loss)” into income, are as follows: Year ended December 31, 2013 2014 2015 Derivatives designated as cash flow hedging instruments: Foreign exchange option contracts $ (266 ) $ 337 $ (31 ) Foreign exchange forward contracts (249 ) 45 (73 ) $ (515 ) $ 382 $ (104 ) |
ACCUMULATED OTHER COMPREHENSI35
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Changes in Accumulated Balances of Other Comprehensive Income (Loss), Net of Tax | The following table summarizes the changes in accumulated balances of other comprehensive income (loss), net of taxes: Year ended December 31, 2015 Unrealized available-for-sale Unrealized Total Beginning balance $ (379 ) $ (57 ) $ (436 ) Other comprehensive income (loss) before reclassifications (118 ) 158 40 Amounts reclassified from accumulated other comprehensive income (loss) 70 (93 ) (23 ) Net current period other comprehensive income (loss) (48 ) 65 17 Ending balance $ (427 ) $ 8 $ (419 ) Year ended December 31, 2014 Unrealized available-for-sale Unrealized Total Beginning balance $ (65 ) $ (16 ) $ (81 ) Other comprehensive loss before reclassifications (311 ) (387 ) (698 ) Amounts reclassified from accumulated other comprehensive income (loss) (3 ) 346 343 Net current period other comprehensive loss (314 ) (41 ) (355 ) Ending balance $ (379 ) $ (57 ) $ (436 ) |
Details about Reclassification out of 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 Statements of Operations Year ended December 31, 2013 2014 2015 Unrealized gains (losses) on cash flow hedges $ 13 $ (17 ) $ — Cost of revenues 432 (305 ) 91 Research and development 27 (34 ) 5 Sales and marketing 43 (26 ) 8 General and administrative 515 (382 ) 104 Total, before income taxes 54 (36 ) 11 Income tax expense (benefit) 461 (346 ) 93 Total, net of income taxes Unrealized gains (losses) on available-for-sale marketable securities 379 6 (78 ) Financial income, net 108 3 (8 ) Income tax expense (benefit) 271 3 (70 ) Total, net of income taxes $ 732 $ (343 ) $ 23 Total, net of income taxes |
GEOGRAPHIC INFORMATION AND MA36
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Revenues Based on Customer Location | The following is a summary of revenues within geographic areas: Year ended December 31, 2013 2014 2015 Revenues based on customer location: United States $ 6,067 $ 11,671 $ 9,737 Europe, Middle East (1) 13,384 5,655 7,064 Asia Pacific (2)(3) 29,449 33,482 42,698 $ 48,900 $ 50,808 $ 59,499 (1) Germany $ 5,543 * ) * ) (2) China $ 20,472 $ 20,568 $ 29,982 (3) S. Korea * ) * ) $ 6,173 *) Less than 10% |
Long-Lived Assets by Geographic Region | 2014 2015 Long-lived assets by geographic region: Israel 2,219 3,090 France 328 279 United States 10 331 Other 48 31 $ 2,605 $ 3,731 |
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, 2013 2014 2015 Customer A 28 % 25 % 31 % Customer B 11 % * ) * ) *) Less than 10% |
Information about Products and Services | The following table sets forth the products and services as percentages of the Company’s total revenues in each of the periods set forth below: Year ended December 31, 2013 2014 2015 DSP products (DSP Cores and Platforms) 93 % 87 % 82 % Connectivity products (Bluetooth, WiFi and SATA/SAS) 7 % 13 % 18 % |
SELECTED STATEMENTS OF OPERAT37
SELECTED STATEMENTS OF OPERATIONS DATA (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Financial Income, Net | Financial income, net: Year ended December 31, 2013 2014 2015 Interest income $ 3,884 $ 2,824 $ 2,845 Gain (loss) on available-for-sale marketable securities, net 379 6 (78 ) Amortization of premium on available-for-sale marketable securities, net (1,504 ) (1,121 ) (1,111 ) Foreign exchange loss, net (45 ) (565 ) (490 ) Accretion of Contingent Consideration — (169 ) (97 ) $ 2,714 $ 975 $ 1,069 |
TAXES ON INCOME (Tables)
TAXES ON INCOME (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Taxes on Income Comprised | b. Taxes on income comprised of: Year ended December 31, 2013 2014 2015 Domestic taxes: Current $ (37 ) $ 7 $ 115 Deferred (1,127 ) 2,987 — Foreign taxes: Current 2,016 314 2,212 Deferred (64 ) (456 ) (1,213 ) $ 788 $ 2,852 $ 1,114 Income (loss) before taxes on income: Domestic $ (4,315 ) $ (2,379 ) $ (3,360 ) Foreign 11,788 4,412 10,741 $ 7,473 $ 2,033 $ 7,381 |
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, 2013 2014 2015 Income before taxes on income $ 7,473 $ 2,033 $ 7,381 Theoretical tax at U.S. statutory rate 2,541 691 2,510 Foreign income taxes at rates other than U.S. rate (1,057 ) (489 ) (958 ) Approved and benefited enterprises benefits (*) (1,553 ) (785 ) (1,653 ) Subpart F 633 394 434 Non-deductible items 433 723 349 Non-taxable items — (230 ) (481 ) Decrease in uncertain tax position (73 ) (920 ) — Changes in valuation allowance (111 ) 3,356 839 Other, net (25 ) 112 74 Taxes on income $ 788 $ 2,852 $ 1,114 (*) Basic and diluted earnings per share amounts of the benefit resulting from the “Approved Enterprise” and “Benefited Enterprise” status $ 0.07 $ 0.04 $ 0.08 |
Deferred Taxes on Income | Significant components of the Company’s deferred tax assets are as follows: As at December 31, 2014 2015 Deferred tax assets Operating loss carryforward $ 8,933 $ 9,066 Accrued expenses 706 1,165 Temporary differences related to R&D expenses 922 1,052 Equity-based compensation 2,563 2,625 Tax credit carry forward 800 875 Other 273 529 Total gross deferred tax assets 14,197 15,312 Valuation allowance (11,930 ) (12,740 ) Net deferred tax assets $ 2,267 $ 2,572 Deferred tax liabilities Intangible assets $ 1,843 $ 915 Other 26 29 Total deferred tax liabilities $ 1,869 $ 944 Net deferred tax assets (*) $ 398 $ 1,628 (*) Net deferred taxes for the years ended December 31, 2014 and 2015 are all from foreign jurisdictions. |
Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits | e. Uncertain tax positions 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, 2014 2015 Beginning of year $ 3,563 $ 2,859 Additions for current year tax positions 216 217 Decrease as a result of a lapse of applicable statute of limitations (920 ) — Balance at December 31 $ 2,859 $ 3,076 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015, future purchase obligations and minimum rental commitments for leasehold properties and operating leases with non-cancelable terms are as follows: Minimum rental commitments for Commitments for Other purchase obligations Total 2016 $ 1,068 $ 931 $ 578 $ 2,577 2017 1,111 — — 1,111 2018 905 — — 905 2019 211 — — 211 2020 180 — — 180 $ 3,475 $ 931 $ 578 $ 4,984 |
Organization and Significant 40
Organization and Significant Accounting Policies - Additional Information (Detail) € in Thousands | 12 Months Ended | ||||
Dec. 31, 2015USD ($)Segmentshares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($)shares | Dec. 31, 2015EUR (€) | Dec. 31, 2014EUR (€) | |
Significant Accounting Policies [Line Items] | |||||
Impairment of long-lived asset | $ 0 | $ 0 | $ 0 | ||
Date of annual test of impairment for goodwill | On October 1st of each year. | ||||
Number of operating segments | Segment | 1 | ||||
Impairment of goodwill | $ 0 | ||||
Impairment of intangible assets | 0 | ||||
Amount of grants recorded as reduction in research and development expense | 4,997,000 | 4,586,000 | 3,304,000 | ||
Tax credits on research and development expenses | $ 1,414,000 | 675,000 | |||
Pension contribution rate | 10.00% | ||||
Percentage of match made by the employer up to a maximum of 6% | 100.00% | ||||
Maximum percentage contribute by each participant from base remuneration | 15.00% | ||||
Employee plan contribution | $ 733,000 | 561,000 | 338,000 | ||
Severance pay expense, net of related income | 1,285,000 | 1,113,000 | 1,014,000 | ||
Excess tax benefit from equity-based compensation as financing cash flows | 112,000 | 0 | 0 | ||
Impairment loss | 0 | ||||
Allowance for doubtful accounts trade receivable | 25,000 | 25,000 | |||
Advertising expense | $ 928,000 | $ 792,000 | $ 660,000 | ||
Antidilutive shares excluded from computation of earnings per share | shares | 820,631 | 3,316,380 | 1,732,154 | ||
Treasury stock | |||||
Significant Accounting Policies [Line Items] | |||||
Reclassification of retained earnings to additional paid-in capital | $ 2,178,000 | ||||
Foreign exchange forward and option contracts | Derivatives designated as cash flow hedging instruments | |||||
Significant Accounting Policies [Line Items] | |||||
Notional principal amount of Hedging Contracts | 3,200,000 | $ 4,200,000 | |||
Restricted Stock Units (RSUs) | |||||
Significant Accounting Policies [Line Items] | |||||
Unrecognized compensation expense | $ 2,242,000 | ||||
Unrecognized compensation expense, weighted-average period of recognition | 1 year 4 months 24 days | ||||
Stock Options, SARs and.Employee Stock Purchase Plan | |||||
Significant Accounting Policies [Line Items] | |||||
Unrecognized compensation expense | $ 3,475,000 | ||||
Unrecognized compensation expense, weighted-average period of recognition | 1 year 8 months 12 days | ||||
Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Intangible assets definite lives | 1 year 6 months | ||||
Royalty expenses percentage | 3.00% | ||||
Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Intangible assets definite lives | 5 years 6 months | ||||
Royalty expenses percentage | 3.50% | ||||
Percentage of employees' gross pay for which the employer contributes a matching contribution to a defined contribution plan | 6.00% | ||||
Accounting Standards Update 2015-17 [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Decrease to deferred tax assets, current | 1,868,000 | ||||
Increase to deferred tax asset, noncurrent | 864,000 | ||||
Decrease to deferred tax liability, current | 464,000 | ||||
Decrease to deferred tax liability, noncurrent | $ 540,000 | ||||
Short-term investments | |||||
Significant Accounting Policies [Line Items] | |||||
Interest rate bank deposits | 1.51% | 1.58% | 1.88% | 1.51% | 1.58% |
Long-term investments | |||||
Significant Accounting Policies [Line Items] | |||||
Interest rate bank deposits | 1.82% | 1.74% | 2.14% | 1.82% | 1.74% |
Antcor Advanced Network Technologies S.A | |||||
Significant Accounting Policies [Line Items] | |||||
Business acquisition consideration received | $ 111,000 | $ 1,032,000 | € 99 | € 774 | |
Capital loss from the sale of investment | $ 404,000 |
Annual Depreciation Rates of Pr
Annual Depreciation Rates of Property, Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Computers, software and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Annual depreciation rate | 10.00% |
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 | 33.00% |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Annual depreciation rate | (the shorter of the expected lease term or useful economic life) |
Leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Annual depreciation rate | 10.00% |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Annual depreciation rate | 25.00% |
Assumptions Used to Estimate Fa
Assumptions Used to Estimate Fair Value of Stock Options Granted (Detail) | 12 Months Ended | ||
Dec. 31, 2015EmployeeExecutiveOfficers | Dec. 31, 2014EmployeeExecutiveOfficers | Dec. 31, 2013EmployeeExecutiveOfficers | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility, Minimum | 33.00% | 33.00% | 38.00% |
Expected volatility, Maximum | 49.00% | 52.00% | 54.00% |
Risk-free interest rate, Minimum | 0.20% | 0.10% | 0.10% |
Risk-free interest rate, Maximum | 2.40% | 2.50% | 2.50% |
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 | Employee | 2.1 | 2.1 | 2.1 |
Executives | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Suboptimal exercise multiple | ExecutiveOfficers | 2.4 | 2.4 | 2.4 |
Assumptions Used to Estimate 43
Assumptions Used to Estimate Fair Value of Employee Stock Purchase Plan (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility, Minimum | 33.00% | 33.00% | 38.00% |
Expected volatility, Maximum | 49.00% | 52.00% | 54.00% |
Risk-free interest rate, Minimum | 0.20% | 0.10% | 0.10% |
Risk-free interest rate, Maximum | 2.40% | 2.50% | 2.50% |
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 | 35.00% | 29.00% | 34.00% |
Expected volatility, Maximum | 36.00% | 52.00% | 53.00% |
Risk-free interest rate, Minimum | 0.10% | 0.10% | 0.10% |
Risk-free interest rate, Maximum | 0.30% | 0.20% | 0.20% |
Expected forfeiture | 0.00% | 0.00% | 0.00% |
Contractual term of up to | 24 months | 24 months | 24 months |
Equity-Based Compensation Expen
Equity-Based Compensation Expense Included in Interim Condensed Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total equity-based compensation expense | $ 4,015 | $ 5,011 | $ 5,920 |
Cost of revenues | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total equity-based compensation expense | 155 | 193 | 312 |
Research and development, net | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total equity-based compensation expense | 1,838 | 2,027 | 2,014 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total equity-based compensation expense | 568 | 909 | 1,311 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total equity-based compensation expense | $ 1,454 | $ 1,882 | $ 2,283 |
Calculation of Basic and Dilute
Calculation of Basic and Diluted Net Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator: | |||
Net income (loss) | $ 6,267 | $ (819) | $ 6,685 |
Denominator (in thousands): | |||
Basic weighted-average common stock outstanding | 20,480 | 20,622 | 22,009 |
Effect of stock options, stock appreciation rights and restricted stock units | 509 | 456 | |
Diluted weighted-average common stock outstanding | 20,989 | 20,622 | 22,465 |
Basic net income (loss) per share | $ 0.31 | $ (0.04) | $ 0.30 |
Diluted net income (loss) per share | $ 0.30 | $ (0.04) | $ 0.30 |
Acquisition of Rivierawaves - A
Acquisition of Rivierawaves - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Jul. 04, 2014 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||||
Estimated contingent consideration | $ 3,603 | |||
RivieraWaves | ||||
Business Acquisition [Line Items] | ||||
Percentage of voting interests acquired | 100.00% | |||
Cost of acquired entity, purchase price | $ 18,378 | |||
Cost of acquired entity cash paid at closing | 14,678 | |||
Business acquisition, description of contingent consideration arrangements | The remaining amount of $3,700 payable upon the satisfaction of certain milestones (the "Contingent Consideration"). | |||
Business acquisition, contingent consideration liability | 3,700 | |||
Estimated contingent consideration | $ 3,603 | |||
Contingent consideration paid | $ 3,700 | |||
Business acquisition, acquisition-related costs | 310 | |||
Business acquisition, description of acquired entity | In addition, as part of the acquisition, the Company established an employee retention plan for the RivieraWaves employees at a cost of approximately $3,400, to be payable on a semiannual basis for a period of two years after the Closing Date. | |||
Employee retention plan cost | $ 3,400 | |||
Payment for employee retention | $ 971 | |||
Employee retention plan payment period | 2 years |
Schedule of Consideration Trans
Schedule of Consideration Transferred (Detail) - RivieraWaves $ in Thousands | Jul. 04, 2014USD ($) |
Business Acquisition [Line Items] | |
Cash | $ 14,678 |
Fair value of Contingent Consideration | 3,434 |
Total | $ 18,112 |
Schedule of Purchase Price Allo
Schedule of Purchase Price Allocation to Net Tangible and Intangible Assets Based on their Estimated Fair Values (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 04, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 46,612 | $ 46,612 | $ 36,498 | |
RivieraWaves | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 1,189 | |||
Bank deposits | 1,384 | |||
Other assets | 2,898 | |||
Intangible assets | 6,161 | |||
Goodwill | 10,114 | |||
Total assets | 21,746 | |||
Current liabilities | (2,201) | |||
Deferred tax liabilities, net | (1,433) | |||
Total liabilities | (3,634) | |||
Total | $ 18,112 |
Components of Intangible Assets
Components of Intangible Assets Associated with Acquisition (Detail) - RivieraWaves $ in Thousands | Jul. 04, 2014USD ($) | |
Business Acquisition [Line Items] | ||
Total intangible assets | $ 6,161 | |
Core technologies | ||
Business Acquisition [Line Items] | ||
Total intangible assets | 5,796 | [1] |
Customer relationships | ||
Business Acquisition [Line Items] | ||
Total intangible assets | 272 | [2] |
Customer backlog | ||
Business Acquisition [Line Items] | ||
Total intangible assets | $ 93 | [3] |
[1] | Core technologies represent a combination of RivieraWaves' processes and trade secrets related to the design and development of its products. This proprietary know-how can be leveraged to develop new technology and improve the Company's products and is amortized using the straight line method. | |
[2] | Customer relationships represent the underlying relationships and agreements with RivieraWaves' installed customer base and are amortized using the straight line method. | |
[3] | Customer backlog represents an order or production backlog arises from contracts or sales orders and are amortized using the straight line method. |
Summary of Available-for-Sale M
Summary of Available-for-Sale Marketable Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale-matures within one year, Amortized cost | $ 9,258 | $ 5,443 |
Available-for-sale-matures within one year through three years, Amortized cost | 39,501 | 42,810 |
Amortized cost, Total | 48,759 | 48,253 |
Available-for-sale-matures within one year, Gross unrealized gains | 1 | |
Available-for-sale-matures after one year through three years, Gross unrealized gains | 9 | |
Gross unrealized gains, Total | 1 | 9 |
Available-for-sale-matures within one year, Gross unrealized losses | (50) | (46) |
Available-for-sale-matures after one year through three years, Gross unrealized losses | (444) | (383) |
Gross unrealized losses, Total | (494) | (429) |
Available-for-sale-matures within one year, Fair value | 9,209 | 5,397 |
Available-for-sale-matures after one year through three years, Fair value | 39,057 | 42,436 |
Fair value, Total | 48,266 | 47,833 |
Certificates of deposits | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale-matures within one year, Amortized cost | 1 | |
Available-for-sale-matures within one year through three years, Amortized cost | 1,975 | |
Available-for-sale-matures within one year, Fair value | 1 | |
Available-for-sale-matures after one year through three years, Fair value | 1,975 | |
Fair value, Total | 1 | 1,975 |
Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale-matures within one year, Amortized cost | 9,257 | 5,443 |
Available-for-sale-matures within one year through three years, Amortized cost | 39,501 | 40,835 |
Available-for-sale-matures within one year, Gross unrealized gains | 1 | |
Available-for-sale-matures after one year through three years, Gross unrealized gains | 9 | |
Available-for-sale-matures within one year, Gross unrealized losses | (50) | (46) |
Available-for-sale-matures after one year through three years, Gross unrealized losses | (444) | (383) |
Available-for-sale-matures within one year, Fair value | 9,208 | 5,397 |
Available-for-sale-matures after one year through three years, Fair value | $ 39,057 | $ 40,461 |
Summary of Gross Unrealized Los
Summary of Gross Unrealized Losses and Fair Values on Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Investments, Debt and Equity Securities [Abstract] | ||
Less than 12 months, Fair value | $ 32,695 | $ 34,152 |
Available-for-sale securities- matures within one year, Gross unrealized losses | (389) | (313) |
12 months or greater, Fair value | 14,488 | 9,469 |
Available-for-sale securities- matures after one year through three years, Gross unrealized losses | $ (105) | $ (116) |
Summary of Gross Realized Gain
Summary of Gross Realized Gain and Loss from Sale of Available-for-Sale Marketable Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investments, Debt and Equity Securities [Abstract] | |||
Gross realized gains from sale of available-for-sale marketable securities | $ 4 | $ 99 | $ 400 |
Gross realized losses from sale of available-for-sale marketable securities | $ (82) | $ (93) | $ (21) |
Fair Value Measurement (Detail)
Fair Value Measurement (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 04, 2014 |
Assets: | |||
Marketable securities | $ 48,266 | $ 47,833 | |
Foreign exchange contracts | 9 | ||
Liabilities: | |||
Foreign exchange contracts | 64 | ||
Contingent consideration | 3,603 | ||
Certificates of deposits | |||
Assets: | |||
Marketable securities | 1 | 1,975 | |
Corporate bonds | |||
Assets: | |||
Marketable securities | 48,265 | 45,858 | |
Level II | |||
Assets: | |||
Foreign exchange contracts | 9 | ||
Liabilities: | |||
Foreign exchange contracts | 64 | ||
Level II | Certificates of deposits | |||
Assets: | |||
Marketable securities | 1 | 1,975 | |
Level II | Corporate bonds | |||
Assets: | |||
Marketable securities | $ 48,265 | 45,858 | |
Level 3 | |||
Liabilities: | |||
Contingent consideration | $ 3,603 | $ 3,434 |
Schedule of Changes in Level 3
Schedule of Changes in Level 3 Contingent Consideration Liability Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Dec. 31, 2015 | |
Business Acquisition, Contingent Consideration [Line Items] | ||
Beginning balance | $ 3,603 | |
Payment | (3,700) | |
Ending balance | $ 3,603 | |
Level 3 | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Beginning balance | 3,434 | 3,603 |
Accretion | 169 | 97 |
Payment | $ (3,700) | |
Ending balance | $ 3,603 |
Composition of Assets, Grouped
Composition of Assets, Grouped by Major Classifications (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 16,127 | $ 13,943 |
Less-Accumulated depreciation | (12,396) | (11,338) |
Property and equipment, net | 3,731 | 2,605 |
Computers, software and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 13,503 | 12,180 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 759 | 633 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,865 | $ 1,130 |
Summary of Changes in Goodwill
Summary of Changes in Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 46,612 | $ 36,498 |
Acquisition | 0 | 10,114 |
Ending balance | $ 46,612 | $ 46,612 |
Summary of Intangible Assets (D
Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets, Gross Carrying Amount | $ 6,161 | $ 6,161 |
Total intangible assets, Accumulated Amortization | 649 | 1,947 |
Total intangible assets, Net | $ 5,512 | 4,214 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets, Weighted Average Amortization Period (Years) | 4 years 6 months | |
Total intangible assets, Gross Carrying Amount | $ 272 | 272 |
Total intangible assets, Accumulated Amortization | 30 | 91 |
Total intangible assets, Net | $ 242 | 181 |
Customer backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets, Weighted Average Amortization Period (Years) | 1 year 6 months | |
Total intangible assets, Gross Carrying Amount | $ 93 | 93 |
Total intangible assets, Accumulated Amortization | 31 | 93 |
Total intangible assets, Net | $ 62 | |
Core technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets, Weighted Average Amortization Period (Years) | 5 years 1 month 6 days | |
Total intangible assets, Gross Carrying Amount | $ 5,796 | 5,796 |
Total intangible assets, Accumulated Amortization | 588 | 1,763 |
Total intangible assets, Net | $ 5,208 | $ 4,033 |
Summary of Future Estimated Ann
Summary of Future Estimated Annual Amortization Charges (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,016 | $ 1,236 | |
2,017 | 1,236 | |
2,018 | 901 | |
2,019 | 841 | |
Total intangible assets, Net | $ 4,214 | $ 5,512 |
Accrued Expenses and Other Pa59
Accrued Expenses and Other Payables (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Engineering accruals | $ 807 | $ 862 |
Professional fees | 642 | 622 |
Government grants | 288 | 201 |
Income taxes payable, net | 830 | 739 |
Other | 1,066 | 1,369 |
Accrued expenses and other payables | $ 3,633 | $ 3,793 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) $ / shares in Units, $ in Thousands | Jul. 07, 2014Employee$ / sharesshares | Jul. 01, 2004shares | Jun. 30, 2004shares | Dec. 31, 2015USD ($)Vote$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / sharesshares | Oct. 31, 2014shares | May. 17, 2011shares | Aug. 31, 2008shares | Jul. 31, 2002shares |
Class of Stock [Line Items] | ||||||||||
Number of vote per share entitled by holders of common stock | Vote | 1 | |||||||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | ||||||||
Preferred Stock, par value | $ / shares | $ 0.001 | $ 0.001 | ||||||||
Common stock shares, authorized | 1,000,000 | |||||||||
Common stock, additional number of shares authorized to repurchase | 4,000,000 | |||||||||
Purchase of Treasury Stock, shares | 508,931 | 1,227,148 | 1,257,004 | |||||||
Purchase of Treasury Stock, per share value | $ / shares | $ 19.80 | $ 15.20 | $ 15.76 | |||||||
Purchase of Treasury Stock | $ | $ 10,078 | $ 18,657 | $ 19,816 | |||||||
Weighted average fair value of options and stock appreciation rights granted | $ / shares | $ 7.8 | $ 6.1 | $ 7.2 | |||||||
Total intrinsic value of options and stock appreciation rights exercised | $ | $ 8,960 | $ 1,372 | $ 1,336 | |||||||
Rule 10b-18 | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common stock, additional number of shares authorized to repurchase | 1,000,000 | |||||||||
Remained authorized for repurchase | 491,069 | |||||||||
2011 Stock Incentive Plan | ||||||||||
Class of Stock [Line Items] | ||||||||||
Options and stock appreciation rights granted under stock incentive plans vesting rate, year one | 25.00% | |||||||||
Remaining shares vesting period | 36 months | |||||||||
Maximum | ||||||||||
Class of Stock [Line Items] | ||||||||||
Award vesting period | 4 years | |||||||||
Stock Appreciation Rights (SARs) | Maximum | ||||||||||
Class of Stock [Line Items] | ||||||||||
Options granted percentage | 400.00% | 400.00% | ||||||||
Stock Appreciation Rights (SARs) | RivieraWaves | ||||||||||
Class of Stock [Line Items] | ||||||||||
Award vesting period | 4 years | |||||||||
Remaining shares vesting period | 36 months | |||||||||
Aggregate number of stock issued by the company | 113,000 | |||||||||
Number of employees joined the company | Employee | 27 | |||||||||
Fair market value on grant date | $ / shares | $ 15.17 | |||||||||
Award vesting description | All of the SARs were priced at $15.17, the fair market value on the grant date, and will vest over four years, with 25% of the SARs vesting after one year and the remaining vest in equal portions over the following 36 months, such that all SARs will vest after four years, subject to the employee's continuous service through each vesting date. | |||||||||
Description of award term | The SARs have a ceiling limit for maximum income capped at 400%, expire seven years from the grant date and are subject to the terms and condition of the individual SAR agreements. | |||||||||
Award expiration period | 7 years | |||||||||
Stock Appreciation Rights (SARs) | RivieraWaves | SARs Vesting After One Year | ||||||||||
Class of Stock [Line Items] | ||||||||||
Vesting percentage | 25.00% | |||||||||
Restricted Stock Units (RSUs) | ||||||||||
Class of Stock [Line Items] | ||||||||||
Award vesting period | 3 years | |||||||||
Stock incentive plans vesting percentage | 33.33% | |||||||||
Aggregate number of stock issued by the company | 245,000 | |||||||||
Fair market value on grant date | $ / shares | $ 19.89 | |||||||||
Award vesting description | RSUs granted to employees generally vest in three equal annual installments starting on the first anniversary of the grant date. RSUs granted to non-employee directors generally vest in full on the first anniversary of the grant date. | |||||||||
Stock Options, Stock Appreciation Rights and Restricted Stock Units | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of options available for grant under stock plan | 878,798 | |||||||||
2011 Stock Incentive Plan | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of common shares authorized for issuance | 1,750,000 | |||||||||
Share incentive plan expiration | 2021-02 | |||||||||
2003 Director Stock Option Plan | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of common shares authorized for issuance | 1,350,000 | |||||||||
2003 Director Stock Option Plan | Maximum | ||||||||||
Class of Stock [Line Items] | ||||||||||
Award expiration period | 10 years | |||||||||
2003 Director Stock Option Plan | Minimum | ||||||||||
Class of Stock [Line Items] | ||||||||||
Requisite period of service to get option granted | 6 months | |||||||||
2002 Employee Stock Purchase Plan ESPP | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of options available for grant under stock plan | 313,410 | 2,500,000 | ||||||||
Minimum working hours for eligibility of employee stock purchase plan | 20 hours | |||||||||
Minimum working days for employee stock purchase plan | 5 months | |||||||||
Non Employee Director | ||||||||||
Class of Stock [Line Items] | ||||||||||
Options granted under stock incentive plan vesting rate, each anniversary | 25.00% | |||||||||
Non Employee Director | Restricted Stock Units (RSUs) | ||||||||||
Class of Stock [Line Items] | ||||||||||
Award vesting period | 1 year | |||||||||
Non Employee Director | 2003 Director Stock Option Plan | ||||||||||
Class of Stock [Line Items] | ||||||||||
Option granted | 38,000 | |||||||||
Board of Directors Chairman | 2003 Director Stock Option Plan | ||||||||||
Class of Stock [Line Items] | ||||||||||
Option granted | 15,000 | |||||||||
Board of Directors | 2011 Stock Incentive Plan | ||||||||||
Class of Stock [Line Items] | ||||||||||
Aggregate number of stock issued by the company | 33,000 | |||||||||
Board of Directors | 2003 Director Stock Option Plan | ||||||||||
Class of Stock [Line Items] | ||||||||||
Option granted | 13,000 | 66,000 | ||||||||
Committee Chairperson | 2003 Director Stock Option Plan | ||||||||||
Class of Stock [Line Items] | ||||||||||
Option granted | 13,000 |
Summary of Stock Option Activit
Summary of Stock Option Activity (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)$ / sharesshares | ||
Number of options and SAR units | ||
Number of shares outstanding, Beginning balance | shares | 3,316,380 | |
Number of shares, Options/SAR units granted | shares | 200,500 | [1] |
Number of shares, Options/SAR units exercised | shares | (905,116) | |
Number of shares, Options/SAR units forfeited or expired | shares | (205,309) | |
Number of shares outstanding, Ending balance | shares | 2,406,455 | [2] |
Number of shares outstanding, Vested or expected to vest at end of period | shares | 2,343,032 | |
Number of shares exercisable, Ending balance | shares | 1,562,042 | |
Weighted-average exercise price | ||
Weighted-average exercise price, Beginning balance | $ / shares | $ 16.50 | |
Weighted average exercise price, Granted | $ / shares | 20.18 | [1] |
Weighted average exercise price, Exercised | $ / shares | 11.91 | |
Weighted average exercise price, Forfeited or expired | $ / shares | 20.99 | |
Weighted average exercise price, Ending balance | $ / shares | 18.15 | [2] |
Weighted average exercise price, Vested or expected to vest at end of period | $ / shares | 18.18 | |
Weighted average exercise price, exercisable | $ / shares | $ 18.83 | [3] |
Weighted average remaining contractual term | ||
Weighted average remaining contractual life, Outstanding at end of period | 4 years 4 months 24 days | [2] |
Weighted average remaining contractual life, Vested or expected to vest at end of period | 4 years 4 months 24 days | |
Weighted average remaining contractual life, Exercisable at end of period | 3 years 6 months | [3] |
Aggregate intrinsic value | ||
Aggregate intrinsic value, Outstanding | $ | $ 13,942,939 | [2] |
Aggregate intrinsic value, Vested or expected to vest | $ | 13,530,902 | |
Aggregate intrinsic value, Exercisable | $ | $ 8,428,814 | [3] |
[1] | Includes 134,500 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 2,107,339 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 1,412,528 shares of the Company's common stock issuable upon exercise. |
Summary of Stock Option Activ62
Summary of Stock Option Activity (Parenthetical) (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares, Granted | 134,500 | ||
Outstanding amount of stock appreciation right units | 2,406,455 | [1] | 3,316,380 |
Exercisable amount of stock appreciation right units | 1,562,042 | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding amount of stock appreciation right units | 2,107,339 | ||
Exercisable amount of stock appreciation right units | 1,412,528 | ||
Stock Appreciation Rights (SARs) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum percentage of stock appreciation right units | 75.00% | ||
[1] | Due to the ceiling imposed on the SAR grants, the outstanding amount equals a maximum of 2,107,339 shares of the Company's common stock issuable upon exercise. |
Schedule of Options Granted, Cl
Schedule of Options Granted, Classified into Range of Exercise Price (Detail) - $ / shares | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Outstanding, Number of options | 2,406,455 | [1] | 3,316,380 | |
Outstanding, Weighted average remaining contractual life (years) | 4 years 4 months 24 days | |||
Outstanding, Weighted average exercise price | $ 18.15 | |||
Exercisable, Number of options | 1,562,042 | |||
Exercisable, Weighted average remaining contractual life (years) | 3 years 6 months | |||
Exercisable, Weighted average exercise price | [2] | $ 18.83 | ||
6.99 - 9.78 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of exercise price, Lower limit | 6.99 | |||
Range of exercise price, Upper limit | $ 9.78 | |||
Outstanding, Number of options | 113,857 | |||
Outstanding, Weighted average remaining contractual life (years) | 4 months 24 days | |||
Outstanding, Weighted average exercise price | $ 8.29 | |||
Exercisable, Number of options | 113,857 | |||
Exercisable, Weighted average remaining contractual life (years) | 4 months 24 days | |||
Exercisable, Weighted average exercise price | $ 8.29 | |||
11.58 - 15.54 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of exercise price, Lower limit | 11.58 | |||
Range of exercise price, Upper limit | $ 15.54 | |||
Outstanding, Number of options | 789,547 | |||
Outstanding, Weighted average remaining contractual life (years) | 4 years 8 months 12 days | |||
Outstanding, Weighted average exercise price | $ 14.74 | |||
Exercisable, Number of options | 461,108 | |||
Exercisable, Weighted average remaining contractual life (years) | 3 years 8 months 12 days | |||
Exercisable, Weighted average exercise price | $ 14.66 | |||
16.08 - 19.59 | ||||
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 | $ 19.59 | |||
Outstanding, Number of options | 875,485 | |||
Outstanding, Weighted average remaining contractual life (years) | 5 years 7 months 6 days | |||
Outstanding, Weighted average exercise price | $ 17.30 | |||
Exercisable, Number of options | 421,553 | |||
Exercisable, Weighted average remaining contractual life (years) | 5 years 3 months 18 days | |||
Exercisable, Weighted average exercise price | $ 16.95 | |||
19.83 - 32.34 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of exercise price, Lower limit | 19.83 | |||
Range of exercise price, Upper limit | $ 32.34 | |||
Outstanding, Number of options | 627,566 | |||
Outstanding, Weighted average remaining contractual life (years) | 3 years 1 month 6 days | |||
Outstanding, Weighted average exercise price | $ 25.40 | |||
Exercisable, Number of options | 565,524 | |||
Exercisable, Weighted average remaining contractual life (years) | 2 years 9 months 18 days | |||
Exercisable, Weighted average exercise price | $ 25.76 | |||
[1] | Due to the ceiling imposed on the SAR grants, the outstanding amount equals a maximum of 2,107,339 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 1,412,528 shares of the Company's common stock issuable upon exercise. |
Summary of Restricted Stock Uni
Summary of Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSUs) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Number of RSUs | |
Number of RSUs granted | shares | 245,000 |
Number of RSUs vested | shares | 0 |
Number of RSUs forfeited | shares | (11,000) |
Number of RSUs, Unvested, Ending balance | shares | 234,000 |
Number of RSUs, Expected to vest | shares | 217,200 |
Weighted average Grant-Date fair value | |
Weighted average Grant-Date fair value, RSUs granted | $ / shares | $ 19.89 |
Weighted average Grant-Date fair value, RSUs vested | $ / shares | 0 |
Weighted average Grant-Date fair value, RSUs forfeited | $ / shares | 19.83 |
Weighted average Grant-Date fair value, Ending balance | $ / shares | 19.89 |
Weighted average Grant-Date fair value, Expected to vest | $ / shares | $ 19.88 |
Fair Value of Outstanding Deriv
Fair Value of Outstanding Derivative Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Derivative assets | $ 9 | |
Derivative liabilities | $ 64 | |
Foreign exchange forward contracts | Derivatives designated as cash flow hedging instruments | ||
Derivative [Line Items] | ||
Derivative assets | $ 9 | |
Derivative liabilities | 12 | |
Foreign exchange option contracts | Derivatives designated as cash flow hedging instruments | ||
Derivative [Line Items] | ||
Derivative liabilities | $ 52 |
Net (Gains) Losses Reclassified
Net (Gains) Losses Reclassified from Accumulated Other Comprehensive Income (Loss) (Detail) - Derivatives designated as cash flow hedging instruments - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in other comprehensive income (loss), Effective portion, Net, Total | $ 177 | $ (430) | $ 283 |
Gain (loss) reclassified from accumulated OCI into income, Effective portion, Net, Total | (104) | 382 | (515) |
Foreign exchange option contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in other comprehensive income (loss), Effective portion, Net, Total | 83 | (389) | 108 |
Gain (loss) reclassified from accumulated OCI into income, Effective portion, Net, Total | (31) | 337 | (266) |
Foreign exchange forward contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in other comprehensive income (loss), Effective portion, Net, Total | 94 | (41) | 175 |
Gain (loss) reclassified from accumulated OCI into income, Effective portion, Net, Total | $ (73) | $ 45 | $ (249) |
Derivatives and Hedging Activ67
Derivatives and Hedging Activities - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivatives not qualified as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in income, net | $ 0 | $ 0 | $ 112,000 |
Derivatives designated as cash flow hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in income, net | $ 104,000 | $ (382,000) | $ 515,000 |
Changes in Accumulated Balances
Changes in Accumulated Balances of Other Comprehensive Income (Loss), Net of Tax (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance, net of tax | $ (436) | $ (81) | |
Other comprehensive income (loss) before reclassifications, net of tax | 40 | (698) | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (23) | 343 | |
Other comprehensive income (loss), net of taxes | 17 | (355) | $ (441) |
Ending balance, net of tax | (419) | (436) | (81) |
Unrealized gains (losses) on available-for-sale marketable securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance, net of tax | (379) | (65) | |
Other comprehensive income (loss) before reclassifications, net of tax | (118) | (311) | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 70 | (3) | |
Other comprehensive income (loss), net of taxes | (48) | (314) | |
Ending balance, net of tax | (427) | (379) | (65) |
Unrealized gains (losses) on cash flow hedges | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance, net of tax | (57) | (16) | |
Other comprehensive income (loss) before reclassifications, net of tax | 158 | (387) | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (93) | 346 | |
Other comprehensive income (loss), net of taxes | 65 | (41) | |
Ending balance, net of tax | $ 8 | $ (57) | $ (16) |
Details about Reclassification
Details about Reclassification out of Accumulated Other Comprehensive Income (Loss) Components (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of revenues | $ (5,424) | $ (5,000) | $ (5,163) |
Financial income, net | 1,069 | 975 | 2,714 |
Research and development | (28,113) | (25,828) | (21,216) |
Sales and marketing | (10,168) | (9,815) | (10,092) |
General and administrative | (8,184) | (8,054) | (7,670) |
Income before taxes on income | 7,381 | 2,033 | 7,473 |
Income tax expense (benefit) | 1,114 | 2,852 | 788 |
Net income | 6,267 | (819) | 6,685 |
Reclassification out of accumulated other comprehensive income (loss) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net income | 23 | (343) | 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 | (17) | 13 | |
Research and development | 91 | (305) | 432 |
Sales and marketing | 5 | (34) | 27 |
General and administrative | 8 | (26) | 43 |
Income before taxes on income | 104 | (382) | 515 |
Income tax expense (benefit) | 11 | (36) | 54 |
Net income | 93 | (346) | 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 | (78) | 6 | 379 |
Income tax expense (benefit) | (8) | 3 | 108 |
Net income | $ (70) | $ 3 | $ 271 |
Geographic Information and Ma70
Geographic Information and Major Customer and Product Data - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Revenues Based on Customer Loca
Revenues Based on Customer Location (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | $ 59,499 | $ 50,808 | $ 48,900 | |||
United States | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 9,737 | 11,671 | 6,067 | |||
Europe and Middle East | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 7,064 | 5,655 | 13,384 | |||
Asia Pacific | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | $ 42,698 | $ 33,482 | 29,449 | |||
Germany | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | [1] | [1] | 5,543 | |||
China | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | $ 29,982 | $ 20,568 | $ 20,472 | |||
S. Korea | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | $ 6,173 | [1] | [1] | |||
[1] | *) Less than 10% |
Long-Lived Assets by Geographic
Long-Lived Assets by Geographic Region (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | $ 3,731 | $ 2,605 |
Israel | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | 3,090 | 2,219 |
France | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | 279 | 328 |
United States | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | 331 | 10 |
Other | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | $ 31 | $ 48 |
Major Customers Data as Percent
Major Customers Data as Percentage of Total Revenues (Detail) - Revenue - Customer Concentration Risk | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Customer A | |||||
Revenue, Major Customer [Line Items] | |||||
Percentage of total revenues | 31.00% | 25.00% | 28.00% | ||
Customer B | |||||
Revenue, Major Customer [Line Items] | |||||
Percentage of total revenues | [1] | [1] | 11.00% | ||
[1] | *) Less than 10% |
Information about Products and
Information about Products and Service (Detail) - Revenue - Product Concentration Risk | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
DSP Products (DSP Cores and Platforms) | |||
Revenue from External Customer [Line Items] | |||
Percentage of total revenues | 82.00% | 87.00% | 93.00% |
Connectivity Products (Bluetooth, WiFi and SATA/SAS) | |||
Revenue from External Customer [Line Items] | |||
Percentage of total revenues | 18.00% | 13.00% | 7.00% |
Financial Income, Net (Detail)
Financial Income, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Interest income | $ 2,845 | $ 2,824 | $ 3,884 |
Gain (loss) on available-for-sale marketable securities, net | (78) | 6 | 379 |
Amortization of premium on available-for-sale marketable securities, net | (1,111) | (1,121) | (1,504) |
Foreign exchange loss, net | (490) | (565) | (45) |
Accretion of Contingent Consideration | (97) | (169) | |
Financial income, net | $ 1,069 | $ 975 | $ 2,714 |
Taxes on Income - Additional In
Taxes on Income - Additional Information (Detail) - USD ($) | Jan. 04, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Income Taxes [Line Items] | ||||
Unrecognized tax benefits | $ 3,076,000 | $ 2,859,000 | $ 3,563,000 | |
Accrued interest related to unrecognized tax benefits | 54,000 | 39,000 | ||
Accrue penalties related to unrecognized tax benefits | 0 | $ 0 | ||
Net operating loss carryforwards, federal | $ 7,020,000 | |||
Loss carryforwards begin to expire | 2,030 | |||
Excess tax benefits from stock option exercises | $ 5,750,000 | |||
Income not eligible for Approved Enterprise benefits | ||||
Income Taxes [Line Items] | ||||
Effective income tax rate | 26.50% | 26.50% | 25.00% | |
Israel | Subsequent Event | ||||
Income Taxes [Line Items] | ||||
Effective income tax rate | 26.50% | |||
Reduce in income tax rate | 25.00% | |||
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] | ||||
Effective income tax rate | 25.00% | |||
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 2010 and subsequent years. | |||
Net operating loss carryforwards, foreign | $ 62,837,000 | |||
Ireland | Interest income | ||||
Income Taxes [Line Items] | ||||
Effective income tax rate | 25.00% | |||
France | ||||
Income Taxes [Line Items] | ||||
Effective income tax rate | 33.33% | |||
Open tax years | Subject to review by the applicable taxing authorities for the French subsidiaries, are 2013 and subsequent years. | |||
Net operating loss carryforwards, foreign | $ 1,438,000 | |||
California state | ||||
Income Taxes [Line Items] | ||||
Loss carryforwards begin to expire | 2,016 | |||
Net operating loss carryforwards | $ 6,913,000 | |||
Excess tax benefits from stock option exercises | $ 4,512,000 |
Taxes on Income Comprised (Deta
Taxes on Income Comprised (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Domestic taxes, current | $ 115 | $ 7 | $ (37) |
Domestic taxes, deferred | 2,987 | (1,127) | |
Foreign taxes, current | 2,212 | 314 | 2,016 |
Foreign taxes, deferred | (1,213) | (456) | (64) |
Taxes on income | 1,114 | 2,852 | 788 |
Income (loss) before taxes on income, domestic | (3,360) | (2,379) | (4,315) |
Income (loss) before taxes on income, foreign | 10,741 | 4,412 | 11,788 |
Income before taxes on income | $ 7,381 | $ 2,033 | $ 7,473 |
Reconciliation Between Effectiv
Reconciliation Between Effective Tax Rate and U.S. Statutory Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Income before taxes on income | $ 7,381 | $ 2,033 | $ 7,473 |
Theoretical tax at U.S. statutory rate | 2,510 | 691 | 2,541 |
Foreign income taxes at rates other than U.S. rate | (958) | (489) | (1,057) |
Approved and benefited enterprises benefits | (1,653) | (785) | (1,553) |
Subpart F | 434 | 394 | 633 |
Non-deductible items | 349 | 723 | 433 |
Non-taxable items | (481) | (230) | |
Decrease in uncertain tax position | (920) | (73) | |
Changes in valuation allowance | 839 | 3,356 | (111) |
Other, net | 74 | 112 | (25) |
Taxes on income | $ 1,114 | $ 2,852 | $ 788 |
Reconciliation Between Effect79
Reconciliation Between Effective Tax Rate and U.S. Statutory Rate (Parenthetical) (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Basic and diluted earnings per share amounts of the benefit resulting from the "Approved Enterprise" and "Benefited Enterprise" status | $ 0.08 | $ 0.04 | $ 0.07 |
Significant Components of Compa
Significant Components of Company's Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets | ||
Operating loss carryforward | $ 9,066 | $ 8,933 |
Accrued expenses | 1,165 | 706 |
Temporary differences related to R&D expenses | 1,052 | 922 |
Equity-based compensation | 2,625 | 2,563 |
Tax credit carry forward | 875 | 800 |
Other | 529 | 273 |
Total gross deferred tax assets | 15,312 | 14,197 |
Valuation allowance | (12,740) | (11,930) |
Net deferred tax assets | 2,572 | 2,267 |
Deferred tax liabilities | ||
Intangible assets | 915 | 1,843 |
Other | 29 | 26 |
Total deferred tax liabilities | 944 | 1,869 |
Net deferred tax assets | $ 1,628 | $ 398 |
Unrecognized Tax Benefits (Deta
Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Beginning Balance | $ 2,859 | $ 3,563 |
Additions for current year tax positions | 217 | 216 |
Decrease as a result of a lapse of applicable statute of limitations | (920) | |
Ending Balance | $ 3,076 | $ 2,859 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | |||
Fees paid to related party | $ 0 | ||
Morrison and Foerster LLP | |||
Related Party Transaction [Line Items] | |||
Fees paid to related party | $ 275,000 | $ 279,000 |
Commitments And Contingencies -
Commitments And Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitment And Contingencies [Line Items] | |||
Rent expenses | $ 1,394 | $ 955 | $ 839 |
Chief Scientist of State of Israel | |||
Commitment And Contingencies [Line Items] | |||
Maximum royalty payment as percentage of grants received | 100.00% | ||
Aggregate contingent royalty liability (including interest) | $ 15,135 | ||
Chief Scientist of State of Israel | Cost of Revenue | |||
Commitment And Contingencies [Line Items] | |||
Royalty expenses | $ 482 | $ 300 | $ 147 |
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 Obli
Summary of Future Purchase Obligations and Minimum Rental Commitments for Leasehold Properties and Operating Leases with Non-Cancelable Terms (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Other Commitments [Line Items] | |
2,016 | $ 2,577 |
2,017 | 1,111 |
2,018 | 905 |
2,019 | 211 |
2,020 | 180 |
Operating Leases, Future Minimum Payments Due, Total | 4,984 |
Minimum rental commitments for leasehold properties | |
Other Commitments [Line Items] | |
2,016 | 1,068 |
2,017 | 1,111 |
2,018 | 905 |
2,019 | 211 |
2,020 | 180 |
Operating Leases, Future Minimum Payments Due, Total | 3,475 |
Commitments for other lease obligations | |
Other Commitments [Line Items] | |
2,016 | 931 |
Operating Leases, Future Minimum Payments Due, Total | 931 |
Other purchase obligations | |
Other Commitments [Line Items] | |
2,016 | 578 |
Operating Leases, Future Minimum Payments Due, Total | $ 578 |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts (Detail) - Allowance for Doubtful Accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $ 25 | $ 0 | $ 9 |
Additions | 0 | 25 | 0 |
Deduction | 0 | 0 | 9 |
Balance at end of period | $ 25 | $ 25 | $ 0 |