Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 03, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | CEVA | |
Entity Registrant Name | CEVA INC | |
Entity Central Index Key | 1,173,489 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 21,230,589 |
INTERIM CONDENSED CONSOLIDATED
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 19,998 | $ 18,909 |
Short term bank deposits | 40,953 | 30,767 |
Marketable securities | 58,930 | 48,266 |
Trade receivables, net | 17,250 | 4,068 |
Prepaid expenses and other current assets | 2,945 | 4,017 |
Total current assets | 140,076 | 106,027 |
Long term bank deposits | 25,135 | 41,334 |
Severance pay fund | 8,072 | 7,297 |
Deferred tax assets | 2,116 | 1,628 |
Property and equipment, net | 4,831 | 3,731 |
Goodwill | 46,612 | 46,612 |
Intangible assets, net | 3,287 | 4,214 |
Other long-term assets | 4,358 | 1,806 |
Total long-term assets | 94,411 | 106,622 |
Total assets | 234,487 | 212,649 |
Current liabilities: | ||
Trade payables | 1,116 | 693 |
Deferred revenues | 4,032 | 2,763 |
Accrued expenses and other payables | 4,490 | 3,633 |
Accrued payroll and related benefits | 11,641 | 11,894 |
Total current liabilities | 21,279 | 18,983 |
Long term liabilities: | ||
Accrued severance pay | 8,533 | 7,571 |
Total long-term liabilities | 8,533 | 7,571 |
Stockholders' equity: | ||
Preferred Stock: $0.001 par value: 5,000,000 shares authorized; none issued and outstanding | ||
Common Stock: $0.001 par value: 60,000,000 shares authorized; 23,595,160 shares issued at September 30, 2016 and December 31, 2015. 21,221,631 and 20,529,933 shares outstanding at September 30, 2016 and December 31, 2015, respectively | 21 | 21 |
Additional paid in-capital | 210,519 | 208,744 |
Treasury stock at cost (2,373,529 and 3,065,227 shares of common stock at September 30, 2016 and December 31, 2015, respectively) | (40,390) | (51,798) |
Accumulated other comprehensive income (loss) | 33 | (419) |
Retained earnings | 34,492 | 29,547 |
Total stockholders' equity | 204,675 | 186,095 |
Total liabilities and stockholders' equity | $ 234,487 | $ 212,649 |
INTERIM CONDENSED CONSOLIDATED3
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
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 | 21,221,631 | 20,529,933 |
Treasury stock, shares | 2,373,529 | 3,065,227 |
INTERIM CONDENSED CONSOLIDATED4
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | ||||
Licensing and related revenue | $ 7,456 | $ 8,600 | $ 23,576 | $ 24,108 |
Royalties | 10,390 | 7,635 | 27,881 | 19,320 |
Total revenues | 17,846 | 16,235 | 51,457 | 43,428 |
Cost of revenues | 1,422 | 1,281 | 4,453 | 4,016 |
Gross profit | 16,424 | 14,954 | 47,004 | 39,412 |
Operating expenses: | ||||
Research and development, net | 7,346 | 6,571 | 23,071 | 21,175 |
Sales and marketing | 2,763 | 2,384 | 8,463 | 7,358 |
General and administrative | 2,218 | 2,183 | 6,286 | 5,821 |
Amortization of intangible assets | 309 | 325 | 927 | 974 |
Total operating expenses | 12,636 | 11,463 | 38,747 | 35,328 |
Operating income | 3,788 | 3,491 | 8,257 | 4,084 |
Financial income, net | 615 | 401 | 1,617 | 643 |
Income before taxes on income | 4,403 | 3,892 | 9,874 | 4,727 |
Income taxes | 1,015 | 583 | 1,975 | 764 |
Net income | $ 3,388 | $ 3,309 | $ 7,899 | $ 3,963 |
Basic net income per share | $ 0.16 | $ 0.16 | $ 0.38 | $ 0.19 |
Diluted net income per share | $ 0.15 | $ 0.16 | $ 0.37 | $ 0.19 |
Weighted-average shares used to compute net income per share: | ||||
Basic | 21,025 | 20,448 | 20,718 | 20,477 |
Diluted | 21,883 | 20,811 | 21,395 | 20,918 |
INTERIM CONDENSED CONSOLIDATED5
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income: | $ 3,388 | $ 3,309 | $ 7,899 | $ 3,963 |
Available-for-sale securities: | ||||
Changes in unrealized gains (losses) | 46 | (47) | 492 | (47) |
Reclassification adjustments for losses included in net income | 28 | 16 | 74 | |
Net change | 46 | (19) | 508 | 27 |
Cash flow hedges: | ||||
Changes in unrealized gains (losses) | 75 | (138) | 218 | 137 |
Reclassification adjustments for gains included in net income | (69) | (59) | (191) | (58) |
Net change | 6 | (197) | 27 | 79 |
Other comprehensive income (loss) before tax | 52 | (216) | 535 | 106 |
Income tax expense (benefit) related to components of other comprehensive income (loss) | 13 | (30) | 83 | (5) |
Other comprehensive income (loss), net of taxes | 39 | (186) | 452 | 111 |
Comprehensive income | $ 3,427 | $ 3,123 | $ 8,351 | $ 4,074 |
INTERIM CONDENSED CONSOLIDATED6
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 7,899 | $ 3,963 |
Adjustments required to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 998 | 784 |
Amortization of intangible assets | 927 | 974 |
Equity-based compensation | 4,648 | 2,795 |
Realized loss, net on sale of available-for-sale marketable securities | 16 | 74 |
Amortization of premiums on available-for-sale marketable securities | 757 | 841 |
Unrealized foreign exchange (gain) loss | (29) | 213 |
Changes in operating assets and liabilities: | ||
Trade receivables | (13,172) | (790) |
Prepaid expenses and other assets | (1,403) | 29 |
Accrued interest on bank deposits | (395) | (42) |
Deferred tax, net | (571) | (712) |
Trade payables | 370 | 21 |
Deferred revenues | 1,269 | 364 |
Accrued expenses and other payables | (62) | (169) |
Accretion of contingent consideration | 97 | |
Accrued payroll and related benefits | (356) | (413) |
Income taxes payable | 894 | (277) |
Excess tax benefit from equity-based compensation | (112) | |
Accrued severance pay, net | 176 | 172 |
Net cash provided by operating activities | 1,966 | 7,812 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (2,031) | (1,173) |
Investment in bank deposits | (19,100) | (46,328) |
Proceeds from bank deposits | 25,613 | 47,451 |
Investment in available-for-sale marketable securities | (32,498) | (26,195) |
Proceeds from maturity of available-for-sale marketable securities | 7,316 | 3,989 |
Proceeds from sale of available-for-sale marketable securities | 14,253 | 20,883 |
Proceeds from realization of investment in other company | 111 | |
Net cash used in investing activities | (6,447) | (1,262) |
Cash flows from financing activities: | ||
Payment of contingent consideration (see note 3) | (3,700) | |
Purchase of treasury stock | (3,417) | (8,156) |
Proceeds from exercise of stock-based awards | 8,998 | 5,382 |
Excess tax benefit from equity-based compensation | 112 | |
Net cash provided by (used in) financing activities | 5,581 | (6,362) |
Effect of exchange rate changes on cash and cash equivalents | (11) | (38) |
Decrease in cash and cash equivalents | 1,089 | 150 |
Cash and cash equivalents at the beginning of the period | 18,909 | 16,166 |
Cash and cash equivalents at the end of the period | 19,998 | 16,316 |
Supplemental information of cash-flow activities: | ||
Income and withholding taxes, net of refunds | 1,604 | $ 1,693 |
Property and equipment purchases incurred but unpaid at period end | $ 67 |
BUSINESS
BUSINESS | 9 Months Ended |
Sep. 30, 2016 | |
Text Block [Abstract] | |
BUSINESS | NOTE 1: BUSINESS The financial information in this quarterly report includes the results of CEVA, Inc. and its subsidiaries (the “Company” or “CEVA”). CEVA licenses a family of signal processing IPs, including programmable DSP cores and application-specific platforms for vision, imaging, audio and voice, as well as communications and connectivity technologies, including wireless baseband 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 AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2: BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The interim condensed consolidated financial statements have been prepared according to U.S Generally Accepted Accounting Principles (“U.S. GAAP”). The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. For further information, reference is made to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K The significant accounting policies applied in the annual consolidated financial statements of the Company as of December 31, 2015, contained in the Company’s Annual Report on Form 10-K Use of Estimates The preparation of the interim condensed 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 interim condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
ACQUISITION OF RIVIERAWAVES
ACQUISITION OF RIVIERAWAVES | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
ACQUISITION OF RIVIERAWAVES | NOTE 3: 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”). During the first nine months of 2015, the Company fully paid the Contingent Consideration. The acquisition was accounted in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 805, “Business Combinations”. 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, payable on a semi-annual basis for a period of two years after the Closing Date. As of September 30, 2016, the Company fully paid the employee retention plan. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 9 Months Ended |
Sep. 30, 2016 | |
Cash and Cash Equivalents [Abstract] | |
MARKETABLE SECURITIES | NOTE 4: MARKETABLE SECURITIES The following is a summary of available-for-sale marketable securities: September 30, 2016 (Unaudited) Amortized Gross Gross Fair Available-for-sale - matures within one year: Certificate of deposits $ 1 $ — $ — $ 1 Corporate bonds 7,536 8 (9 ) 7,535 7,537 8 (9 ) 7,536 Available-for-sale - matures after one year through five years: Government bonds 501 — (1 ) 500 Corporate bonds 50,877 116 (99 ) 50,894 51,378 116 (100 ) 51,394 Total $ 58,915 $ 124 $ (109 ) $ 58,930 December 31, 2015 (Audited) Amortized Gross Gross 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 The following table presents gross unrealized losses and fair values for those investments that were in an unrealized loss position as of September 30, 2016 and December 31, 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 September 30, 2016 $ 14,773 $ (68 ) $ 13,678 $ (41 ) As of December 31, 2015 $ 32,695 $ (389 ) $ 14,488 $ (105 ) As of September 30, 2016 and December 31, 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: Nine months ended September 30, Three months ended September 30, 2016 2015 2016 2015 (unaudited) (unaudited) (unaudited) (unaudited) Gross realized gains from sale of available-for-sale marketable securities $ 16 $ 2 $ 1 $ — Gross realized losses from sale of available-for-sale marketable securities $ (32 ) $ (76 ) $ (1 ) $ (28 ) |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | NOTE 5: 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 and foreign currency derivative contracts 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 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 September 30, 2016 Level I Level II Level III Assets Marketable securities: Certificate of deposits $ 1 $ — $ 1 $ — Government bonds 500 — 500 — Corporate bonds 58,429 — 58,429 — Foreign exchange contracts 48 — 48 — Liabilities Foreign exchange contracts 12 — 12 — Description December 31, 2015 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 — |
GEOGRAPHIC INFORMATION AND MAJO
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA | NOTE 6: GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA a. Summary information about geographic areas: The Company manages its business on the 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: Nine months ended September 30, Three months ended September 30, 2016 2015 2016 2015 (unaudited) (unaudited) (unaudited) (unaudited) Revenues based on customer location: United States $ 7,310 $ 8,335 $ 2,144 $ 3,482 Europe and Middle East 7,492 5,202 2,986 1,590 Asia Pacific (1) (2) 36,655 29,891 12,716 11,163 $ 51,457 $ 43,428 $ 17,846 $ 16,235 (1) China $ 23,064 $ 20,972 $ 7,073 $ 8,423 (2) S. Korea $ 11,338 $ *) $ 4,901 $ 2,131 *) Less than 10% 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. Nine months ended Three months ended 2016 2015 2016 2015 (unaudited) (unaudited) (unaudited) (unaudited) Customer A 27 % 33 % 27 % 45 % Customer B 19 % *) 21 % 11 % Customer C *) *) *) 13 % *) Less than 10% |
NET INCOME PER SHARE OF COMMON
NET INCOME PER SHARE OF COMMON STOCK | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE OF COMMON STOCK | NOTE 7: NET INCOME PER SHARE OF COMMON STOCK Basic net income per share is computed based on the weighted average number of shares of common stock outstanding during each period. Diluted net income per share is computed based on the weighted average number of shares of common stock outstanding during each period, plus dilutive potential shares of common stock considered outstanding during the period, in accordance with FASB ASC No. 260, “Earnings Per Share.” Nine months ended Three months ended 2016 2015 2016 2015 (unaudited) (unaudited) (unaudited) (unaudited) Numerator: Net income $ 7,899 $ 3,963 $ 3,388 $ 3,309 Denominator (in thousands): Basic weighted-average common stock outstanding 20,718 20,477 21,025 20,448 Effect of stock-based awards 677 441 858 363 Diluted weighted average common stock outstanding 21,395 20,918 21,883 20,811 Basic net income per share $ 0.38 $ 0.19 $ 0.16 $ 0.16 Diluted net income per share $ 0.37 $ 0.19 $ 0.15 $ 0.16 The weighted average number of shares related to outstanding equity-based awards excluded from the calculation of diluted net income per share, since their effect was anti-dilutive, was 92,103 and 349,428 shares for the three and nine months ended September 30, 2016, respectively, and 915,898 and 861,491 for the corresponding periods of 2015. |
COMMON STOCK AND STOCK-BASED CO
COMMON STOCK AND STOCK-BASED COMPENSATION PLANS | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
COMMON STOCK AND STOCK-BASED COMPENSATION PLANS | NOTE 8: COMMON STOCK AND STOCK-BASED COMPENSATION PLANS The Company grants stock options and stock appreciation rights (“SARs”) capped with a ceiling to employees and stock options to non-employee directors of the Company and its subsidiaries and provides the right to purchase common stock pursuant to the Company’s 2002 employee stock purchase plan to employees of the Company and its subsidiaries. The SAR unit confers the holder the right to stock appreciation over a preset price of the Company’s common stock during a specified period of time. When the unit is exercised, the appreciation amount is paid through the issuance of shares of the Company’s common stock. The ceiling limits the maximum income for each SAR unit. SARs are considered an equity instrument as it is a net share settled award capped with a ceiling (400% for SAR grants). The options and SARs granted under the Company’s stock incentive plans have been granted at the fair market value of the Company’s common stock on the grant date. Options and SARs granted to employees under stock incentive plans vest at a rate of 25% of the shares underlying the option after one year and the remaining shares vest in equal portions over the following 36 months, such that all shares are vested after four years. Options granted to non-employee directors vest 25% of the shares underlying the option on each anniversary of the option grant. A summary of the Company’s stock option and SARs activities and related information for the nine months ended September 30, 2016, are as follows: Number of options and SAR units (1) Weighted average exercise price Weighted average remaining contractual term Aggregate intrinsic-value Outstanding as of December 31, 2015 2,406,455 $ 18.15 Granted 66,000 27.17 Exercised (940,526 ) 16.76 Forfeited or expired (37,633 ) 17.89 Outstanding as of September 30, 2016 (2) 1,494,296 $ 19.42 4.8 $ 23,378,563 Exercisable as of September 30, 2016 (3) 981,117 $ 19.97 4.0 $ 14,809,518 (1) The SAR units 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 1,331,360 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 895,288 shares of the Company’s common stock issuable upon exercise. As of September 30, 2016, there was $1,559 of unrecognized compensation expense related to unvested stock options and SARs. This amount is expected to be recognized over a weighted-average period of 1.4 years. To the extent the actual forfeiture rate is different from what the Company has estimated, equity-based compensation related to these awards will be different from the Company’s expectations. Starting in the second quarter of 2015, the Company granted to employees, including executive officers and non-employee directors, restricted stock units (“RSUs”) under the Company’s 2011 Stock Incentive Plan. 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. 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 recognizes compensation expenses for the value of its RSU awards, based on the straight-line method over the requisite service period of each of the awards, net of estimated forfeitures. A summary of the Company’s RSU activities and related information for the nine months ended September 30, 2016, are as follows: Number of RSUs Weighted Average Grant-Date Unvested as of December 31, 2015 234,000 $ 19.89 Granted 372,617 21.51 Vested (97,640 ) 19.61 Forfeited or expired (15,969 ) 20.12 Unvested as of September 30, 2016 493,008 $ 21.16 Expected to vest after September 30, 2016 452,937 $ 21.16 As of September 30, 2016, there was $8,019 of unrecognized compensation expense related to unvested RSUs. This amount is expected to be recognized over a weighted-average period of 1.6 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. The following table shows the total equity-based compensation expense included in the interim condensed consolidated statements of income: Nine months ended September 30, Three months ended September 30, 2016 2015 2016 2015 (unaudited) (unaudited) (unaudited) (unaudited) Cost of revenue $ 179 $ 111 $ 65 $ 34 Research and development, net 2,162 1,323 741 438 Sales and marketing 681 395 179 151 General and administrative 1,626 966 580 496 Total equity-based compensation expense $ 4,648 $ 2,795 $ 1,565 $ 1,119 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: Nine months ended September 30, Three months ended September 30, 2016 2015 2016 2015 (unaudited) (unaudited) (unaudited) (unaudited) Expected dividend yield 0% 0% 0% 0% Expected volatility 40%-49% 33%-49% 40%-49% 35%-49% Risk-free interest rate 0.5%-1.5% 0.2%-2.4% 0.5%-1.5% 0.3%-2.4% Expected forfeiture (employees) — 10% — 10% Expected forfeiture (executives) 5% 5% 5% 5% Contractual term of up to 10 Years 10 Years 10 Years 10 Years Suboptimal exercise multiple (employees) — 2.1 — 2.1 Suboptimal exercise multiple (executives) 2.4 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: Nine months ended September 30, Three months ended September 30, 2016 2015 2016 2015 (unaudited) (unaudited) (unaudited) (unaudited) Expected dividend yield 0% 0% 0% 0% Expected volatility 29%-57% 35%-36% 29%-48% 35%-36% Risk-free interest rate 0.3%-0.5% 0.1%-0.3% 0.4%-0.5% 0.2%-0.3% Expected forfeiture 0% 0% 0% 0% Contractual term of up to 24 months 24 months 24 months 24 months |
DERIVATIVES AND HEDGING ACTIVIT
DERIVATIVES AND HEDGING ACTIVITIES | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING ACTIVITIES | NOTE 9: DERIVATIVES 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 September 30, 2016 and December 31, 2015, the notional principal amount of the Hedging Contracts to sell U.S. dollars held by the Company was $2,550 and $3,200, respectively. The fair value of the Company’s outstanding derivative instruments is as follows: September 30, December 31, (Unaudited) (Audited) Derivative assets: Derivatives designated as cash flow hedging instruments: Foreign exchange option contracts $ 48 $ — Foreign exchange forward contracts — 9 Total $ 48 $ 9 Derivative liabilities: Derivatives designated as cash flow hedging instruments: Foreign exchange forward contracts $ 12 $ — The Company recorded the fair value of derivative assets in “prepaid expenses and other current assets” and the fair value of derivative liabilities in “accrued expenses and other payables” on the Company’s interim condensed 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: Nine months ended Three months ended 2016 2015 2016 2015 (unaudited) (unaudited) (unaudited) (unaudited) Derivatives designated as cash flow hedging instruments: Foreign exchange option contracts $ 118 $ 61 $ 44 $ (151 ) Foreign exchange forward contracts 100 76 31 13 $ 218 $ 137 $ 75 $ (138 ) The net (gains) losses reclassified from “accumulated other comprehensive income (loss)” into income are as follows: Nine months ended Three months ended 2016 2015 2016 2015 (unaudited) (unaudited) (unaudited) (unaudited) Derivatives designated as cash flow hedging instruments: Foreign exchange option contracts $ (70 ) $ (5 ) $ (21 ) $ (64 ) Foreign exchange forward contracts (121 ) (53 ) (48 ) 5 $ (191 ) $ (58 ) $ (69 ) $ (59 ) The Company recorded in cost of revenues and operating expenses a net gain of $69 and $191 during the three and nine months ended September 30, 2016, respectively, and a net gain of $59 and $58 for the comparable periods of 2015, related to its Hedging Contracts. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | NOTE 10: ACCUMULATED OTHER COMPREHENSIVE INCOME The following tables summarize the changes in accumulated balances of other comprehensive income (loss), net of taxes: Nine months ended September 30, 2016 Three months ended September 30, 2016 (unaudited) (unaudited) Unrealized gains (losses) Unrealized Total Unrealized gains (losses) on Unrealized Total Beginning balance $ (427 ) $ 8 $ (419 ) $ (32 ) $ 26 $ (6 ) Other comprehensive income before reclassifications 416 194 610 34 66 100 Amounts reclassified from accumulated other comprehensive income (loss) 13 (171 ) (158 ) — (61 ) (61 ) Net current period other comprehensive income 429 23 452 34 5 39 Ending balance $ 2 $ 31 $ 33 $ 2 $ 31 $ 33 Nine months ended September 30, 2015 Three months ended September 30, 2015 (unaudited) (unaudited) Unrealized gains (losses) Unrealized Total Unrealized gains (losses) on Unrealized Total Beginning balance $ (379 ) $ (57 ) $ (436 ) $ (327 ) $ 188 $ (139 ) Other comprehensive income (loss) before reclassifications (26 ) 121 95 (39 ) (123 ) (162 ) Amounts reclassified from accumulated other comprehensive income (loss) 67 (51 ) 16 28 (52 ) (24 ) Net current period other comprehensive income (loss) 41 70 111 (11 ) (175 ) (186 ) Ending balance $ (338 ) $ 13 $ (325 ) $ (338 ) $ 13 $ (325 ) The following table provides details about reclassifications out of accumulated other comprehensive income: Details about Accumulated Other Amount Reclassified from Accumulated Other Comprehensive Affected Line Item in the Statements of Income Nine months ended Three months ended 2016 2015 2016 2015 (unaudited) (unaudited) (unaudited) (unaudited) Unrealized gains on cash flow hedges $ 4 $ (1 ) $ 2 $ (1 ) Cost of revenues 160 52 57 53 Research and development 13 2 5 2 Sales and marketing 14 5 5 5 General and administrative 191 58 69 59 Total, before income taxes 20 7 8 7 Income tax expense 171 51 61 52 Total, net of income taxes Unrealized losses on available-for-sale marketable securities (16 ) (74 ) — (28 ) Financial income (loss), net (3 ) (7 ) — — Income tax benefit (13 ) (67 ) — (28 ) Total, net of income taxes $ 158 $ (16 ) $ 61 $ 24 Total, net of income taxes |
SHARE REPURCHASE PROGRAM
SHARE REPURCHASE PROGRAM | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
SHARE REPURCHASE PROGRAM | NOTE 11: SHARE REPURCHASE PROGRAM The Company did not repurchase shares of common stock during the third quarter of 2016. During the third quarter of 2015, the Company repurchased 158,570 shares of common stock at an average purchase price of $17.74 per share for an aggregate purchase price of $2,813. During the first nine months ended September 30, 2016, the Company repurchased 180,013 shares of common stock at an average purchase price of $18.98 per share for an aggregate purchase price of $3,417. During the first nine months ended September 30, 2015, the Company repurchased 428,590 shares of common stock at an average purchase price of $19.03 per share for an aggregate purchase price of $8,156. As of September 30, 2016, 311,056 shares of common stock remained available for repurchase pursuant to the Company’s share repurchase program. 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. |
UNDISTRIBUTED EARNINGS OF THE C
UNDISTRIBUTED EARNINGS OF THE COMPANY'S FOREIGN SUBSIDIARIES | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
UNDISTRIBUTED EARNINGS OF THE COMPANY'S FOREIGN SUBSIDIARIES | NOTE 12: UNDISTRIBUTED EARNINGS OF THE COMPANY’S FOREIGN SUBSIDIARIES 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. It would recognize a deferred income tax liability if it was determined that such earnings are no longer indefinitely reinvested. At September 30, 2016, undistributed earnings of the Company’s foreign subsidiaries amounted to approximately $138,340. The determination of the amount of additional taxes related to the distribution of these earnings is not practicable. |
IMPACT OF RECENTLY ISSUED ACCOU
IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS NOT YET ADOPTED | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS NOT YET ADOPTED | NOTE 13: IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS NOT YET ADOPTED In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “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 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 and related disclosures. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” which clarifies the implementation guidance on principal versus agent considerations under the new revenue recognition standard, ASU 2014-09. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing,” which clarifies the implementation guidance on identifying promised goods or services from a principal and agent perspective. The Company will adopt the standard effective January 1, 2018. The Company is continuing to evaluate the full effect that ASU 2014-09 and related subsequent updates will have on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, “Compensation-Stock Compensation,” which simplifies several aspects of the accounting for share-based payments, including immediate recognition of all excess tax benefits and deficiencies in the income statement, changing the threshold to qualify for equity classification up to the employees’ maximum statutory tax rates, allowing an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur, and clarifying the classification on the statement of cash flows for the excess tax benefit and employee taxes paid when an employer withholds shares for tax-withholding purposes. The Company is evaluating the full effect that ASU 2016-09 will have on its consolidated financial statements and related disclosures and will adopt the standard effective January 1, 2017. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606). ASU 2016-10 amends ASC 606, Revenue from Contracts with Customers, to clarify two aspects of ASC 606, identifying performance obligations and the licensing implementation guidance, while retaining the related principles of those areas. The amendments in ASU 2016-10 do not change the core principle of the guidance in ASC 606. The amendments in ASU No. 2016-10 affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606). ASU 2016-12 amends ASC 606 to address certain issues in the guidance on assessing collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. The amendments in ASU 2016-12 do not change the core principle of the guidance in ASC 606. The amendments in ASU No. 2016-12 affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , The FASB issued ASU 2016-13 “Measurement of Credit Losses on Financial Instruments” requiring an allowance to be recorded for all expected credit losses for financial assets. The allowance for credit losses is based on historical information, current conditions and reasonable and supportable forecasts. The new standard also makes revisions to the other than temporary impairment model for available-for-sale debt securities. Disclosures of credit quality indicators in relation to the amortized cost of financing receivables are further disaggregated by year of origination. The new accounting guidance is effective for interim and annual periods beginning after December 15, 2019 with early adoption permitted for interim and annual periods beginning after December 15, 2018. The amendments will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is analyzing the impact of this new standard and, at this time, cannot estimate the impact of adoption on its net income. The Company plans to adopt ASU 2016-13 effective January 1, 2020. In August 2016, FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This update will make eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. The update is effective for fiscal years beginning after December 15, 2017. The new standard will require adoption on a retrospective basis unless it is impracticable to apply, in which case it would be required to apply the amendments prospectively as of the earliest date practicable. The Company is currently evaluating the effect of this update on its financial statements and related disclosures. |
BASIS OF PRESENTATION AND SUM20
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The interim condensed consolidated financial statements have been prepared according to U.S Generally Accepted Accounting Principles (“U.S. GAAP”). The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. For further information, reference is made to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K The significant accounting policies applied in the annual consolidated financial statements of the Company as of December 31, 2015, contained in the Company’s Annual Report on Form 10-K |
Use of Estimates | Use of Estimates The preparation of the interim condensed 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 interim condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Impact of Recently Issued Accounting Standards Not Yet Adopted | In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “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 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 and related disclosures. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” which clarifies the implementation guidance on principal versus agent considerations under the new revenue recognition standard, ASU 2014-09. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing,” which clarifies the implementation guidance on identifying promised goods or services from a principal and agent perspective. The Company will adopt the standard effective January 1, 2018. The Company is continuing to evaluate the full effect that ASU 2014-09 and related subsequent updates will have on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, “Compensation-Stock Compensation,” which simplifies several aspects of the accounting for share-based payments, including immediate recognition of all excess tax benefits and deficiencies in the income statement, changing the threshold to qualify for equity classification up to the employees’ maximum statutory tax rates, allowing an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur, and clarifying the classification on the statement of cash flows for the excess tax benefit and employee taxes paid when an employer withholds shares for tax-withholding purposes. The Company is evaluating the full effect that ASU 2016-09 will have on its consolidated financial statements and related disclosures and will adopt the standard effective January 1, 2017. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606). ASU 2016-10 amends ASC 606, Revenue from Contracts with Customers, to clarify two aspects of ASC 606, identifying performance obligations and the licensing implementation guidance, while retaining the related principles of those areas. The amendments in ASU 2016-10 do not change the core principle of the guidance in ASC 606. The amendments in ASU No. 2016-10 affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606). ASU 2016-12 amends ASC 606 to address certain issues in the guidance on assessing collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. The amendments in ASU 2016-12 do not change the core principle of the guidance in ASC 606. The amendments in ASU No. 2016-12 affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , The FASB issued ASU 2016-13 “Measurement of Credit Losses on Financial Instruments” requiring an allowance to be recorded for all expected credit losses for financial assets. The allowance for credit losses is based on historical information, current conditions and reasonable and supportable forecasts. The new standard also makes revisions to the other than temporary impairment model for available-for-sale debt securities. Disclosures of credit quality indicators in relation to the amortized cost of financing receivables are further disaggregated by year of origination. The new accounting guidance is effective for interim and annual periods beginning after December 15, 2019 with early adoption permitted for interim and annual periods beginning after December 15, 2018. The amendments will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is analyzing the impact of this new standard and, at this time, cannot estimate the impact of adoption on its net income. The Company plans to adopt ASU 2016-13 effective January 1, 2020. In August 2016, FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This update will make eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. The update is effective for fiscal years beginning after December 15, 2017. The new standard will require adoption on a retrospective basis unless it is impracticable to apply, in which case it would be required to apply the amendments prospectively as of the earliest date practicable. The Company is currently evaluating the effect of this update on its financial statements and related disclosures. |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Cash and Cash Equivalents [Abstract] | |
Summary of Available-for-Sale Marketable Securities | The following is a summary of available-for-sale marketable securities: September 30, 2016 (Unaudited) Amortized Gross Gross Fair Available-for-sale - matures within one year: Certificate of deposits $ 1 $ — $ — $ 1 Corporate bonds 7,536 8 (9 ) 7,535 7,537 8 (9 ) 7,536 Available-for-sale - matures after one year through five years: Government bonds 501 — (1 ) 500 Corporate bonds 50,877 116 (99 ) 50,894 51,378 116 (100 ) 51,394 Total $ 58,915 $ 124 $ (109 ) $ 58,930 December 31, 2015 (Audited) Amortized Gross Gross 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 |
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 September 30, 2016 and December 31, 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 September 30, 2016 $ 14,773 $ (68 ) $ 13,678 $ (41 ) As of December 31, 2015 $ 32,695 $ (389 ) $ 14,488 $ (105 ) |
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: Nine months ended September 30, Three months ended September 30, 2016 2015 2016 2015 (unaudited) (unaudited) (unaudited) (unaudited) Gross realized gains from sale of available-for-sale marketable securities $ 16 $ 2 $ 1 $ — Gross realized losses from sale of available-for-sale marketable securities $ (32 ) $ (76 ) $ (1 ) $ (28 ) |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016 Level I Level II Level III Assets Marketable securities: Certificate of deposits $ 1 $ — $ 1 $ — Government bonds 500 — 500 — Corporate bonds 58,429 — 58,429 — Foreign exchange contracts 48 — 48 — Liabilities Foreign exchange contracts 12 — 12 — Description December 31, 2015 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 — |
GEOGRAPHIC INFORMATION AND MA23
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Revenues Based on Customer Location | The following is a summary of revenues within geographic areas: Nine months ended September 30, Three months ended September 30, 2016 2015 2016 2015 (unaudited) (unaudited) (unaudited) (unaudited) Revenues based on customer location: United States $ 7,310 $ 8,335 $ 2,144 $ 3,482 Europe and Middle East 7,492 5,202 2,986 1,590 Asia Pacific (1) (2) 36,655 29,891 12,716 11,163 $ 51,457 $ 43,428 $ 17,846 $ 16,235 (1) China $ 23,064 $ 20,972 $ 7,073 $ 8,423 (2) S. Korea $ 11,338 $ *) $ 4,901 $ 2,131 *) Less than 10% |
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. Nine months ended Three months ended 2016 2015 2016 2015 (unaudited) (unaudited) (unaudited) (unaudited) Customer A 27 % 33 % 27 % 45 % Customer B 19 % *) 21 % 11 % Customer C *) *) *) 13 % *) Less than 10% |
NET INCOME PER SHARE OF COMMO24
NET INCOME PER SHARE OF COMMON STOCK (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Net Income Per Share | Diluted net income per share is computed based on the weighted average number of shares of common stock outstanding during each period, plus dilutive potential shares of common stock considered outstanding during the period, in accordance with FASB ASC No. 260, “Earnings Per Share.” Nine months ended Three months ended 2016 2015 2016 2015 (unaudited) (unaudited) (unaudited) (unaudited) Numerator: Net income $ 7,899 $ 3,963 $ 3,388 $ 3,309 Denominator (in thousands): Basic weighted-average common stock outstanding 20,718 20,477 21,025 20,448 Effect of stock-based awards 677 441 858 363 Diluted weighted average common stock outstanding 21,395 20,918 21,883 20,811 Basic net income per share $ 0.38 $ 0.19 $ 0.16 $ 0.16 Diluted net income per share $ 0.37 $ 0.19 $ 0.15 $ 0.16 |
COMMON STOCK AND STOCK-BASED 25
COMMON STOCK AND STOCK-BASED COMPENSATION PLANS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity | A summary of the Company’s stock option and SARs activities and related information for the nine months ended September 30, 2016, are as follows: Number of options and SAR units (1) Weighted average exercise price Weighted average remaining contractual term Aggregate intrinsic-value Outstanding as of December 31, 2015 2,406,455 $ 18.15 Granted 66,000 27.17 Exercised (940,526 ) 16.76 Forfeited or expired (37,633 ) 17.89 Outstanding as of September 30, 2016 (2) 1,494,296 $ 19.42 4.8 $ 23,378,563 Exercisable as of September 30, 2016 (3) 981,117 $ 19.97 4.0 $ 14,809,518 (1) The SAR units 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 1,331,360 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 895,288 shares of the Company’s common stock issuable upon exercise. |
Summary of Restricted Stock Units Activity | A summary of the Company’s RSU activities and related information for the nine months ended September 30, 2016, are as follows: Number of RSUs Weighted Average Grant-Date Unvested as of December 31, 2015 234,000 $ 19.89 Granted 372,617 21.51 Vested (97,640 ) 19.61 Forfeited or expired (15,969 ) 20.12 Unvested as of September 30, 2016 493,008 $ 21.16 Expected to vest after September 30, 2016 452,937 $ 21.16 |
Equity-Based Compensation Expense Included in Interim Condensed Consolidated Statements of Income | The following table shows the total equity-based compensation expense included in the interim condensed consolidated statements of income: Nine months ended September 30, Three months ended September 30, 2016 2015 2016 2015 (unaudited) (unaudited) (unaudited) (unaudited) Cost of revenue $ 179 $ 111 $ 65 $ 34 Research and development, net 2,162 1,323 741 438 Sales and marketing 681 395 179 151 General and administrative 1,626 966 580 496 Total equity-based compensation expense $ 4,648 $ 2,795 $ 1,565 $ 1,119 |
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: Nine months ended September 30, Three months ended September 30, 2016 2015 2016 2015 (unaudited) (unaudited) (unaudited) (unaudited) Expected dividend yield 0% 0% 0% 0% Expected volatility 40%-49% 33%-49% 40%-49% 35%-49% Risk-free interest rate 0.5%-1.5% 0.2%-2.4% 0.5%-1.5% 0.3%-2.4% Expected forfeiture (employees) — 10% — 10% Expected forfeiture (executives) 5% 5% 5% 5% Contractual term of up to 10 Years 10 Years 10 Years 10 Years Suboptimal exercise multiple (employees) — 2.1 — 2.1 Suboptimal exercise multiple (executives) 2.4 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: Nine months ended September 30, Three months ended September 30, 2016 2015 2016 2015 (unaudited) (unaudited) (unaudited) (unaudited) Expected dividend yield 0% 0% 0% 0% Expected volatility 29%-57% 35%-36% 29%-48% 35%-36% Risk-free interest rate 0.3%-0.5% 0.1%-0.3% 0.4%-0.5% 0.2%-0.3% Expected forfeiture 0% 0% 0% 0% Contractual term of up to 24 months 24 months 24 months 24 months |
DERIVATIVES AND HEDGING ACTIV26
DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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: September 30, December 31, (Unaudited) (Audited) Derivative assets: Derivatives designated as cash flow hedging instruments: Foreign exchange option contracts $ 48 $ — Foreign exchange forward contracts — 9 Total $ 48 $ 9 Derivative liabilities: Derivatives designated as cash flow hedging instruments: Foreign exchange forward contracts $ 12 $ — |
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: Nine months ended Three months ended 2016 2015 2016 2015 (unaudited) (unaudited) (unaudited) (unaudited) Derivatives designated as cash flow hedging instruments: Foreign exchange option contracts $ 118 $ 61 $ 44 $ (151 ) Foreign exchange forward contracts 100 76 31 13 $ 218 $ 137 $ 75 $ (138 ) |
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: Nine months ended Three months ended 2016 2015 2016 2015 (unaudited) (unaudited) (unaudited) (unaudited) Derivatives designated as cash flow hedging instruments: Foreign exchange option contracts $ (70 ) $ (5 ) $ (21 ) $ (64 ) Foreign exchange forward contracts (121 ) (53 ) (48 ) 5 $ (191 ) $ (58 ) $ (69 ) $ (59 ) |
ACCUMULATED OTHER COMPREHENSI27
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Changes in Accumulated Balances of Other Comprehensive Income,(loss), Net of Tax | The following tables summarize the changes in accumulated balances of other comprehensive income (loss), net of taxes: Nine months ended September 30, 2016 Three months ended September 30, 2016 (unaudited) (unaudited) Unrealized gains (losses) Unrealized Total Unrealized gains (losses) on Unrealized Total Beginning balance $ (427 ) $ 8 $ (419 ) $ (32 ) $ 26 $ (6 ) Other comprehensive income before reclassifications 416 194 610 34 66 100 Amounts reclassified from accumulated other comprehensive income (loss) 13 (171 ) (158 ) — (61 ) (61 ) Net current period other comprehensive income 429 23 452 34 5 39 Ending balance $ 2 $ 31 $ 33 $ 2 $ 31 $ 33 Nine months ended September 30, 2015 Three months ended September 30, 2015 (unaudited) (unaudited) Unrealized gains (losses) Unrealized Total Unrealized gains (losses) on Unrealized Total Beginning balance $ (379 ) $ (57 ) $ (436 ) $ (327 ) $ 188 $ (139 ) Other comprehensive income (loss) before reclassifications (26 ) 121 95 (39 ) (123 ) (162 ) Amounts reclassified from accumulated other comprehensive income (loss) 67 (51 ) 16 28 (52 ) (24 ) Net current period other comprehensive income (loss) 41 70 111 (11 ) (175 ) (186 ) Ending balance $ (338 ) $ 13 $ (325 ) $ (338 ) $ 13 $ (325 ) |
Details about Reclassification out of Accumulated Other Comprehensive Income Components | The following table provides details about reclassifications out of accumulated other comprehensive income: Details about Accumulated Other Amount Reclassified from Accumulated Other Comprehensive Affected Line Item in the Statements of Income Nine months ended Three months ended 2016 2015 2016 2015 (unaudited) (unaudited) (unaudited) (unaudited) Unrealized gains on cash flow hedges $ 4 $ (1 ) $ 2 $ (1 ) Cost of revenues 160 52 57 53 Research and development 13 2 5 2 Sales and marketing 14 5 5 5 General and administrative 191 58 69 59 Total, before income taxes 20 7 8 7 Income tax expense 171 51 61 52 Total, net of income taxes Unrealized losses on available-for-sale marketable securities (16 ) (74 ) — (28 ) Financial income (loss), net (3 ) (7 ) — — Income tax benefit (13 ) (67 ) — (28 ) Total, net of income taxes $ 158 $ (16 ) $ 61 $ 24 Total, net of income taxes |
Acquisition of Rivierawaves - A
Acquisition of Rivierawaves - Additional Information (Detail) - RivieraWaves - USD ($) $ in Thousands | Jul. 04, 2014 | Sep. 30, 2016 |
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 | |
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, payable on a semi-annual basis for a period of two years after the Closing Date. | |
Employee retention plan cost | $ 3,400 | |
Employee retention plan payment period | 2 years |
Summary of Available-for-Sale M
Summary of Available-for-Sale Marketable Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale-matures within one year, Amortized cost | $ 7,537 | $ 9,258 |
Available-for-sale-matures within one year through three years, Amortized cost | 39,501 | |
Available-for-sale-matures after one year through three years, Gross unrealized gains | 0 | |
Available-for-sale-matures after one year through three years, Gross unrealized losses | (444) | |
Available-for-sale-matures after one year through three years, Fair value | 39,057 | |
Available-for-sale-matures within one year through five years, Amortized cost | 51,378 | |
Amortized cost, Total | 58,915 | 48,759 |
Available-for-sale-matures within one year, Gross unrealized gains | 8 | 1 |
Available-for-sale-matures after one year through five years, Gross unrealized gains | 116 | |
Gross unrealized gains, Total | 124 | 1 |
Available-for-sale-matures within one year, Gross unrealized losses | (9) | (50) |
Available-for-sale-matures after one year through five years, Gross unrealized losses | (100) | |
Gross unrealized losses, Total | (109) | (494) |
Available-for-sale-matures within one year, Fair value | 7,536 | 9,209 |
Available-for-sale-matures after one year through five years, Fair value | 51,394 | |
Fair value, Total | 58,930 | 48,266 |
Certificates of deposits | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale-matures within one year, Amortized cost | 1 | 1 |
Available-for-sale-matures within one year, Fair value | 1 | 1 |
Fair value, Total | 1 | 1 |
Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale-matures within one year, Amortized cost | 7,536 | 9,257 |
Available-for-sale-matures within one year through three years, Amortized cost | 39,501 | |
Available-for-sale-matures after one year through three years, Gross unrealized gains | 0 | |
Available-for-sale-matures after one year through three years, Gross unrealized losses | (444) | |
Available-for-sale-matures after one year through three years, Fair value | 39,057 | |
Available-for-sale-matures within one year through five years, Amortized cost | 50,877 | |
Available-for-sale-matures within one year, Gross unrealized gains | 8 | 1 |
Available-for-sale-matures after one year through five years, Gross unrealized gains | 116 | |
Available-for-sale-matures within one year, Gross unrealized losses | (9) | (50) |
Available-for-sale-matures after one year through five years, Gross unrealized losses | (99) | |
Available-for-sale-matures within one year, Fair value | 7,535 | $ 9,208 |
Available-for-sale-matures after one year through five years, Fair value | 50,894 | |
Government bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale-matures within one year through five years, Amortized cost | 501 | |
Available-for-sale-matures after one year through five years, Gross unrealized losses | (1) | |
Available-for-sale-matures after one year through five years, Fair value | 500 | |
Fair value, Total | $ 500 |
Summary of Gross Unrealized Los
Summary of Gross Unrealized Losses and Fair Values on Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Investments, Debt and Equity Securities [Abstract] | ||
Less than 12 months, Fair value | $ 14,773 | $ 32,695 |
Available-for-sale securities- matures within one year, Gross unrealized losses | (68) | (389) |
12 months or greater, Fair value | 13,678 | 14,488 |
Available-for-sale securities- matures after one year through three years, Gross unrealized losses | $ (41) | $ (105) |
Summary of Gross Realized Gain
Summary of Gross Realized Gain and Loss from Sale of Available-for-Sale Marketable Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gross realized gains from sale of available-for-sale marketable securities | $ 1 | $ 16 | $ 2 | |
Gross realized losses from sale of available-for-sale marketable securities | $ (1) | $ (28) | $ (32) | $ (76) |
Fair Value Measurement (Detail)
Fair Value Measurement (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Assets: | ||
Marketable securities | $ 58,930 | $ 48,266 |
Foreign exchange contracts | 48 | 9 |
Liabilities: | ||
Foreign exchange contracts | 12 | |
Government bonds | ||
Assets: | ||
Marketable securities | 500 | |
Certificates of deposits | ||
Assets: | ||
Marketable securities | 1 | 1 |
Corporate bonds | ||
Assets: | ||
Marketable securities | 58,429 | 48,265 |
Level II | ||
Assets: | ||
Foreign exchange contracts | 48 | 9 |
Liabilities: | ||
Foreign exchange contracts | 12 | |
Level II | Government bonds | ||
Assets: | ||
Marketable securities | 500 | |
Level II | Certificates of deposits | ||
Assets: | ||
Marketable securities | 1 | 1 |
Level II | Corporate bonds | ||
Assets: | ||
Marketable securities | $ 58,429 | $ 48,265 |
Geographic Information and Ma33
Geographic Information and Major Customer Data - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2016Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Revenues Based on Customer Loca
Revenues Based on Customer Location (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 17,846 | $ 16,235 | $ 51,457 | $ 43,428 | |
United States | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 2,144 | 3,482 | 7,310 | 8,335 | |
Europe and Middle East | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 2,986 | 1,590 | 7,492 | 5,202 | |
Asia Pacific | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 12,716 | 11,163 | 36,655 | 29,891 | |
China | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 7,073 | 8,423 | 23,064 | 20,972 | |
S. Korea | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 4,901 | $ 2,131 | $ 11,338 | $ 0 | [1] |
[1] | *) Less than 10% |
Major Customers Data as Percent
Major Customers Data as Percentage of Total Revenues (Detail) - Revenue - Customer Concentration Risk | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||||
Customer A | |||||||
Revenue, Major Customer [Line Items] | |||||||
Percentage of total revenues | 27.00% | 45.00% | 27.00% | 33.00% | |||
Customer B | |||||||
Revenue, Major Customer [Line Items] | |||||||
Percentage of total revenues | 21.00% | 11.00% | 19.00% | 0.00% | [1] | ||
Customer C | |||||||
Revenue, Major Customer [Line Items] | |||||||
Percentage of total revenues | 0.00% | [1] | 13.00% | 0.00% | [1] | 0.00% | [1] |
[1] | *) Less than 10% |
Calculation of Basic and Dilute
Calculation of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Numerator: | ||||
Net income | $ 3,388 | $ 3,309 | $ 7,899 | $ 3,963 |
Denominator (in thousands): | ||||
Basic weighted-average common stock outstanding | 21,025 | 20,448 | 20,718 | 20,477 |
Effect of stock-based awards | 858 | 363 | 677 | 441 |
Diluted weighted average common stock outstanding | 21,883 | 20,811 | 21,395 | 20,918 |
Basic net income per share | $ 0.16 | $ 0.16 | $ 0.38 | $ 0.19 |
Diluted net income per share | $ 0.15 | $ 0.16 | $ 0.37 | $ 0.19 |
Net Income Per Share of Commo37
Net Income Per Share of Common Stock - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Antidilutive shares excluded from computation of earnings per share | 92,103 | 915,898 | 349,428 | 861,491 |
Common Stock and Stock-Based 38
Common Stock and Stock-Based Compensation Plans - Additional Information (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
2011 Stock Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [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 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares vesting period | 4 years |
Stock Appreciation Rights (SARs) | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options granted percentage | 400.00% |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares vesting period | 3 years |
Unrecognized compensation expense | $ 8,019 |
Unrecognized compensation expense, weighted-average period of recognition | 1 year 7 months 6 days |
Employees and non-employees 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 and SARs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense | $ 1,559 |
Unrecognized compensation expense, weighted-average period of recognition | 1 year 4 months 24 days |
Non Employee Director | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options granted under stock incentive plan vesting rate, each anniversary | 25.00% |
Non Employee Director | Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares vesting period | 1 year |
Summary of Stock Option Activit
Summary of Stock Option Activity (Detail) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2016USD ($)$ / sharesshares | ||
Number of options and SAR units | ||
Number of shares outstanding, Beginning balance | shares | 2,406,455 | [1] |
Number of shares, Options/SAR units granted | shares | 66,000 | [1] |
Number of shares, Options/SAR units exercised | shares | (940,526) | [1] |
Number of shares, Options/SAR units forfeited or expired | shares | (37,633) | [1] |
Number of shares outstanding, Ending balance | shares | 1,494,296 | [1],[2] |
Number of shares exercisable, Ending balance | shares | 981,117 | [1],[3] |
Weighted-average exercise price | ||
Weighted-average exercise price, Beginning balance | $ / shares | $ 18.15 | |
Weighted average exercise price, Granted | $ / shares | 27.17 | |
Weighted average exercise price, Exercised | $ / shares | 16.76 | |
Weighted average exercise price, Forfeited or expired | $ / shares | 17.89 | |
Weighted average exercise price, Ending balance | $ / shares | 19.42 | [2] |
Weighted average exercise price, exercisable | $ / shares | $ 19.97 | [3] |
Weighted average remaining contractual term | ||
Weighted average remaining contractual life, Outstanding at end of period | 4 years 9 months 18 days | [2] |
Weighted average remaining contractual life, Exercisable at end of period | 4 years | [3] |
Aggregate intrinsic value | ||
Aggregate intrinsic value, Outstanding | $ | $ 23,378,563 | [2] |
Aggregate intrinsic value, Exercisable | $ | $ 14,809,518 | [3] |
[1] | The SAR units 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 1,331,360 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 895,288 shares of the Company's common stock issuable upon exercise. |
Summary of Stock Option Activ40
Summary of Stock Option Activity (Parenthetical) (Detail) - shares | 9 Months Ended | |||
Sep. 30, 2016 | Dec. 31, 2015 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding amount of stock appreciation right units | [2] | 1,494,296 | [1] | 2,406,455 |
Exercisable amount of stock appreciation right units | [2],[3] | 981,117 | ||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding amount of stock appreciation right units | 1,331,360 | |||
Exercisable amount of stock appreciation right units | 895,288 | |||
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 1,331,360 shares of the Company's common stock issuable upon exercise. | |||
[2] | The SAR units 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. | |||
[3] | Due to the ceiling imposed on the SAR grants, the exercisable amount equals a maximum of 895,288 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) | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Number of RSUs | |
Number of RSUs, Unvested, Beginning balance | shares | 234,000 |
Number of RSUs granted | shares | 372,617 |
Number of RSUs vested | shares | (97,640) |
Number of RSUs Forfeited or expired | shares | (15,969) |
Number of RSUs, Unvested, Ending balance | shares | 493,008 |
Number of RSUs, Expected to vest | shares | 452,937 |
Weighted Average Grant-Date Fair Value | |
Weighted Average Grant-Date Fair Value, Beginning balance | $ / shares | $ 19.89 |
Weighted Average Grant-Date Fair Value, RSUs granted | $ / shares | 21.51 |
Weighted Average Grant-Date Fair value, RSUs vested | $ / shares | 19.61 |
Weighted Average Grant-Date Fair Value, RSUs Forfeited or expired | $ / shares | 20.12 |
Weighted Average Grant-Date Fair Value, Ending balance | $ / shares | 21.16 |
Weighted Average Grant-Date Fair Value, Expected to vest | $ / shares | $ 21.16 |
Equity-Based Compensation Expen
Equity-Based Compensation Expense Included in Interim Condensed Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total equity-based compensation expense | $ 1,565 | $ 1,119 | $ 4,648 | $ 2,795 |
Cost of revenues | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total equity-based compensation expense | 65 | 34 | 179 | 111 |
Research and development, net | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total equity-based compensation expense | 741 | 438 | 2,162 | 1,323 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total equity-based compensation expense | 179 | 151 | 681 | 395 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total equity-based compensation expense | $ 580 | $ 496 | $ 1,626 | $ 966 |
Assumptions Used to Estimate Fa
Assumptions Used to Estimate Fair Value of Stock Options Granted (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016ExecutiveOfficers | Sep. 30, 2015ExecutiveOfficersEmployee | Sep. 30, 2016ExecutiveOfficers | Sep. 30, 2015ExecutiveOfficersEmployee | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Expected volatility, Minimum | 40.00% | 35.00% | 40.00% | 33.00% |
Expected volatility, Maximum | 49.00% | 49.00% | 49.00% | 49.00% |
Risk-free interest rate, Minimum | 0.50% | 0.30% | 0.50% | 0.20% |
Risk-free interest rate, Maximum | 1.50% | 2.40% | 1.50% | 2.40% |
Expected forfeiture (employees) | 10.00% | 10.00% | ||
Expected forfeiture (executives) | 5.00% | 5.00% | 5.00% | 5.00% |
Contractual term of up to | 10 years | 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 | ||
Executives | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Suboptimal exercise multiple | ExecutiveOfficers | 2.4 | 2.4 | 2.4 | 2.4 |
Assumptions Used to Estimate 44
Assumptions Used to Estimate Fair Value of Employee Stock Purchase Plan (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Expected volatility, Minimum | 40.00% | 35.00% | 40.00% | 33.00% |
Expected volatility, Maximum | 49.00% | 49.00% | 49.00% | 49.00% |
Risk-free interest rate, Minimum | 0.50% | 0.30% | 0.50% | 0.20% |
Risk-free interest rate, Maximum | 1.50% | 2.40% | 1.50% | 2.40% |
Expected forfeiture | 10.00% | 10.00% | ||
Contractual term of up to | 10 years | 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% | 0.00% |
Expected volatility, Minimum | 29.00% | 35.00% | 29.00% | 35.00% |
Expected volatility, Maximum | 48.00% | 36.00% | 57.00% | 36.00% |
Risk-free interest rate, Minimum | 0.40% | 0.20% | 0.30% | 0.10% |
Risk-free interest rate, Maximum | 0.50% | 0.30% | 0.50% | 0.30% |
Expected forfeiture | 0.00% | 0.00% | 0.00% | 0.00% |
Contractual term of up to | 24 months | 24 months | 24 months | 24 months |
Derivatives and Hedging Activ45
Derivatives and Hedging Activities - Additional Information (Detail) - Derivatives designated as cash flow hedging instruments - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) recognized in income, net | $ 69,000 | $ 59,000 | $ 191,000 | $ 58,000 | |
Foreign exchange forward and option contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Notional principal amount of Hedging Contracts | $ 2,550,000 | $ 2,550,000 | $ 3,200,000 |
Fair Value of Outstanding Deriv
Fair Value of Outstanding Derivative Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Derivative assets | $ 48 | $ 9 |
Derivative liabilities | 12 | |
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 assets | $ 48 |
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 | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in other comprehensive income (loss), Effective portion, Net, Total | $ 75 | $ (138) | $ 218 | $ 137 |
Gain (loss) reclassified from accumulated OCI into income, Effective portion, Net, Total | (69) | (59) | (191) | (58) |
Foreign exchange option contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in other comprehensive income (loss), Effective portion, Net, Total | 44 | (151) | 118 | 61 |
Gain (loss) reclassified from accumulated OCI into income, Effective portion, Net, Total | (21) | (64) | (70) | (5) |
Foreign exchange forward contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in other comprehensive income (loss), Effective portion, Net, Total | 31 | 13 | 100 | 76 |
Gain (loss) reclassified from accumulated OCI into income, Effective portion, Net, Total | $ (48) | $ 5 | $ (121) | $ (53) |
Changes in Accumulated Balances
Changes in Accumulated Balances of Other Comprehensive Income,(loss), Net of Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance, net of tax | $ (6) | $ (139) | $ (419) | $ (436) |
Other comprehensive income (loss) before reclassifications | 100 | (162) | 610 | 95 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (61) | (24) | (158) | 16 |
Other comprehensive income (loss), net of taxes | 39 | (186) | 452 | 111 |
Ending balance, net of tax | 33 | (325) | 33 | (325) |
Unrealized gains (losses) on available-for-sale marketable securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance, net of tax | (32) | (327) | (427) | (379) |
Other comprehensive income (loss) before reclassifications | 34 | (39) | 416 | (26) |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 28 | 13 | 67 | |
Other comprehensive income (loss), net of taxes | 34 | (11) | 429 | 41 |
Ending balance, net of tax | 2 | (338) | 2 | (338) |
Unrealized gains (losses) on cash flow hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance, net of tax | 26 | 188 | 8 | (57) |
Other comprehensive income (loss) before reclassifications | 66 | (123) | 194 | 121 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (61) | (52) | (171) | (51) |
Other comprehensive income (loss), net of taxes | 5 | (175) | 23 | 70 |
Ending balance, net of tax | $ 31 | $ 13 | $ 31 | $ 13 |
Details about Reclassification
Details about Reclassification out of Accumulated Other Comprehensive Income Components (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of revenues | $ (1,422) | $ (1,281) | $ (4,453) | $ (4,016) |
Financial income (loss), net | 615 | 401 | 1,617 | 643 |
Research and development | (7,346) | (6,571) | (23,071) | (21,175) |
Sales and marketing | (2,763) | (2,384) | (8,463) | (7,358) |
General and administrative | (2,218) | (2,183) | (6,286) | (5,821) |
Income before taxes on income | 4,403 | 3,892 | 9,874 | 4,727 |
Income tax expense (benefit) | 1,015 | 583 | 1,975 | 764 |
Net income | 3,388 | 3,309 | 7,899 | 3,963 |
Reclassification out of accumulated other comprehensive income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income | 61 | 24 | 158 | (16) |
Reclassification out of accumulated other comprehensive income | Unrealized gains (losses) on cash flow hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of revenues | 2 | (1) | 4 | (1) |
Research and development | 57 | 53 | 160 | 52 |
Sales and marketing | 5 | 2 | 13 | 2 |
General and administrative | 5 | 5 | 14 | 5 |
Income before taxes on income | 69 | 59 | 191 | 58 |
Income tax expense (benefit) | 8 | 7 | 20 | 7 |
Net income | $ 61 | 52 | 171 | 51 |
Reclassification out of accumulated other comprehensive income | Unrealized gains (losses) on available-for-sale marketable securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Financial income (loss), net | (28) | (16) | (74) | |
Income tax expense (benefit) | (3) | (7) | ||
Net income | $ (28) | $ (13) | $ (67) |
Share Repurchase Program - Addi
Share Repurchase Program - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Class of Stock Disclosures [Abstract] | ||||
Purchase of Treasury Stock, shares | 0 | 158,570 | 180,013 | 428,590 |
Purchase of Treasury Stock, per share value | $ 17.74 | $ 18.98 | $ 19.03 | |
Purchase of Treasury Stock | $ 2,813 | $ 3,417 | $ 8,156 | |
Common stock shares, available for repurchase | 311,056 | 311,056 |
Undistributed Earnings of the51
Undistributed Earnings of the Company's Foreign Subsidiaries - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Deferred Tax Liability Not Recognized, Undistributed Earnings of Foreign Subsidiaries [Abstract] | |
Undistributed earnings of foreign subsidiaries, description | 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. It would recognize a deferred income tax liability if it was determined that such earnings are no longer indefinitely reinvested. |
Provision for U.S. Federal income taxes on undistributed earnings of its international subsidiaries | $ 0 |
Undistributed earnings of foreign subsidiaries | $ 138,340,000 |