Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 22, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
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 | 22,219,427 | ||
Entity Public Float | $ 666,888,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 21,739 | $ 18,401 |
Short-term bank deposits | 34,432 | 46,247 |
Marketable securities (Note 2) | 82,664 | 61,868 |
Trade receivables | 16,494 | 15,044 |
Prepaid expenses and other current assets | 3,747 | 3,152 |
Total current assets | 159,076 | 144,712 |
Long-term assets: | ||
Bank deposits | 44,518 | 29,977 |
Severance pay fund | 8,910 | 7,941 |
Deferred tax assets (Note 12) | 3,643 | 2,252 |
Property and equipment, net (Note 4) | 6,926 | 4,805 |
Goodwill | 46,612 | 46,612 |
Intangible assets, net (Note 5) | 1,742 | 2,978 |
Investments in other company | 1,806 | 1,806 |
Other long-term assets | 3,579 | 1,412 |
Total long-term assets | 117,736 | 97,783 |
Total assets | 276,812 | 242,495 |
Current liabilities: | ||
Trade payables | 392 | 571 |
Deferred revenues | 4,399 | 6,258 |
Accrued expenses and other payables (Note 6) | 3,927 | 4,015 |
Accrued payroll and related benefits | 14,077 | 11,751 |
Total current liabilities | 22,795 | 22,595 |
Long-term liabilities: | ||
Accrued severance pay | 9,347 | 8,349 |
Total long-term liabilities | 9,347 | 8,349 |
Stockholders' equity (Note 7): | ||
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, 2016 and 2017; 21,273,500 and 22,064,007 shares outstanding at December 31, 2016 and 2017, respectively | 22 | 21 |
Additional paid in-capital | 217,417 | 212,103 |
Treasury stock at cost (2,321,660 and 1,531,153 shares of common stock at December 31, 2016 and 2017, respectively) | (26,056) | (39,507) |
Accumulated other comprehensive loss (Note 9) | (586) | (497) |
Retained earnings | 53,873 | 39,431 |
Total stockholders' equity | 244,670 | 211,551 |
Total liabilities and stockholders' equity | $ 276,812 | $ 242,495 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
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 | 22,064,007 | 21,273,500 |
Treasury stock, shares | 1,531,153 | 2,321,660 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | |||
Licensing and related revenue | $ 42,899 | $ 31,874 | $ 32,135 |
Royalties | 44,608 | 40,779 | 27,364 |
Total revenues | 87,507 | 72,653 | 59,499 |
Cost of revenues | 6,953 | 6,086 | 5,424 |
Gross profit | 80,554 | 66,567 | 54,075 |
Operating expenses: | |||
Research and development, net | 40,385 | 30,838 | 28,113 |
Sales and marketing | 12,572 | 11,540 | 10,168 |
General and administrative | 10,488 | 8,567 | 8,184 |
Amortization of intangible assets (Note 5) | 1,236 | 1,236 | 1,298 |
Total operating expenses | 64,681 | 52,181 | 47,763 |
Operating income | 15,873 | 14,386 | 6,312 |
Financial income, net (Note 11) | 3,026 | 2,039 | 1,069 |
Income before taxes on income | 18,899 | 16,425 | 7,381 |
Income taxes (Note 12) | 1,871 | 3,325 | 1,114 |
Net income | $ 17,028 | $ 13,100 | $ 6,267 |
Basic net income per share | $ 0.78 | $ 0.63 | $ 0.31 |
Diluted net income per share | $ 0.75 | $ 0.61 | $ 0.30 |
Weighted average shares used to compute net income per share (in thousands): | |||
Basic | 21,771 | 20,850 | 20,480 |
Diluted | 22,561 | 21,565 | 20,989 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income: | $ 17,028 | $ 13,100 | $ 6,267 |
Available-for-sale securities: | |||
Changes in unrealized losses | (99) | (95) | (151) |
Reclassification adjustments for losses included in net income | 9 | 78 | |
Net change | (99) | (86) | (73) |
Cash flow hedges: | |||
Changes in unrealized gains | 183 | 158 | 177 |
Reclassification adjustments for gains included in net income | (189) | (161) | (104) |
Net change | (6) | (3) | 73 |
Other comprehensive loss before tax | (105) | (89) | |
Income tax benefit related to components of other comprehensive loss | (16) | (11) | (17) |
Other comprehensive income (loss), net of taxes | (89) | (78) | 17 |
Comprehensive income | $ 16,939 | $ 13,022 | $ 6,284 |
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, 2014 | $ 179,049 | $ 20 | $ 209,426 | $ (54,708) | $ (436) | $ 24,747 | |
Beginning balance (in shares) at Dec. 31, 2014 | 20,252,490 | ||||||
Net income | 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 | ||||||
Net income | 13,100 | 13,100 | |||||
Other comprehensive income (loss) | (78) | (78) | |||||
Equity-based compensation | $ 6,236 | 6,236 | |||||
Purchase of Treasury stock, (in shares) | (180,013) | (180,013) | |||||
Purchase of Treasury stock | $ (3,417) | $ (1) | (3,416) | ||||
Issuance of Treasury stock upon exercise of stock-based awards (in shares) | 923,580 | ||||||
Issuance of Treasury stock upon exercise of stock-based awards | 9,615 | $ 1 | (2,877) | 15,707 | (3,216) | ||
Ending balance at Dec. 31, 2016 | $ 211,551 | $ 21 | 212,103 | (39,507) | (497) | 39,431 | |
Ending balance (in shares) at Dec. 31, 2016 | 21,273,500 | 21,273,500 | |||||
Net income | $ 17,028 | 17,028 | |||||
Other comprehensive income (loss) | (89) | (89) | |||||
Equity-based compensation | $ 8,693 | 8,693 | |||||
Purchase of Treasury stock, (in shares) | 0 | ||||||
Purchase of Treasury stock | $ 0 | ||||||
Issuance of Treasury stock upon exercise of stock-based awards (in shares) | 790,507 | ||||||
Issuance of Treasury stock upon exercise of stock-based awards | 7,487 | $ 1 | (3,379) | 13,451 | (2,586) | ||
Ending balance at Dec. 31, 2017 | $ 244,670 | $ 22 | $ 217,417 | $ (26,056) | $ (586) | [1] | $ 53,873 |
Ending balance (in shares) at Dec. 31, 2017 | 22,064,007 | 22,064,007 | |||||
[1] | Accumulated other comprehensive loss for the year ended December 31, 2017 is all from available-for-sale securities, net of taxes of $92. |
STATEMENTS OF CHANGES IN STOCK7
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) $ in Thousands | Dec. 31, 2017USD ($) |
Statement of Stockholders' Equity [Abstract] | |
Accumulated other comprehensive loss from available-for-sale securities, taxes | $ 92 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 17,028 | $ 13,100 | $ 6,267 |
Adjustments required to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 2,014 | 1,399 | 1,058 |
Amortization of intangible assets | 1,236 | 1,236 | 1,298 |
Equity-based compensation | 8,693 | 6,236 | 4,015 |
Realized loss, net on sale of available-for-sale marketable securities | 9 | 78 | |
Amortization of premiums on available-for-sale marketable securities | 1,179 | 1,064 | 1,111 |
Unrealized foreign exchange (gain) loss, net | (42) | 75 | 237 |
Changes in operating assets and liabilities: | |||
Trade receivables | (1,446) | (10,966) | 4,279 |
Prepaid expenses and other assets | (2,478) | (622) | (136) |
Accrued interest on bank deposits | 151 | (195) | (318) |
Deferred tax, net | (1,375) | (613) | (1,213) |
Trade payables | (184) | (190) | (161) |
Deferred revenues | (1,859) | 3,495 | 1,082 |
Accrued expenses and other payables | 1,259 | (277) | (158) |
Accretion of contingent consideration | 97 | ||
Accrued payroll and related benefits | 1,807 | (94) | 1,679 |
Income taxes payable | (1,493) | 668 | 93 |
Excess tax benefit from equity-based compensation | (112) | ||
Accrued severance pay, net | (21) | 134 | 184 |
Net cash provided by operating activities | 24,469 | 14,459 | 19,380 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (4,135) | (2,387) | (2,184) |
Investment in bank deposits | (47,027) | (41,476) | (53,328) |
Proceeds from bank deposits | 44,450 | 37,594 | 47,451 |
Investment in available-for-sale marketable securities | (54,882) | (43,537) | (29,800) |
Proceeds from maturity of available-for-sale marketable securities | 9,296 | 8,022 | 4,392 |
Proceeds from sale of available-for-sale marketable securities | 23,512 | 20,754 | 23,713 |
Proceeds from realization of investment in other company | 111 | ||
Net cash used in investing activities | (28,786) | (21,030) | (9,645) |
Cash flows from financing activities: | |||
Payment of contingent consideration | (3,700) | ||
Purchase of Treasury Stock | (3,417) | (10,078) | |
Proceeds from exercise of stock-based awards | 7,487 | 9,615 | 6,713 |
Excess tax benefit from equity-based compensation | 112 | ||
Net cash provided by (used in) financing activities | 7,487 | 6,198 | (6,953) |
Effect of exchange rate changes on cash and cash equivalents | 168 | (135) | (39) |
Increase (decrease) in cash and cash equivalents | 3,338 | (508) | 2,743 |
Cash and cash equivalents at the beginning of the year | 18,401 | 18,909 | 16,166 |
Cash and cash equivalents at the end of the year | 21,739 | 18,401 | 18,909 |
Supplemental information of cash-flows activities: | |||
Income and withholding taxes | $ 5,203 | 3,287 | $ 2,185 |
Property and equipment purchases incurred but unpaid at period end | $ 86 |
ORGANIZATION AND SIGNIFICANT AC
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
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 platforms and Artificial Intelligence (AI) processors. These IPs include programmable DSP cores and application-specific platforms for advanced imaging, computer vision, deep learning, sound, voice and audio processing, as well as long range wireless technologies for LTE/5G baseband processing in IoT, handsets and infrastructure, short range wireless platforms for Wi-Fi 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 income as financial income or expenses, as appropriate, which is included in “financial income, net.” The foreign exchange losses arose principally on the EURO and the NIS monetary balance sheet items 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 1.51%, 1.76% and 1.85% during 2015, 2016 and 2017, 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 available-for-sale. Available-for-sale 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 income 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 2015, 2016 and 2017. 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 1.82%, 1.97% and 2.26% during 2015, 2016 and 2017, 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, 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 2015, 2016 and 2017. 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 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, 2015, 2016 and 2017. Investments in other company: The Company’s investment in a 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, 2015, 2016 and 2017, no impairment loss was identified. Revenue recognition: The Company generates its revenues from (1) licensing intellectual property, which in certain circumstances is modified for customer-specific requirements, (2) royalty revenues, and (3) other revenues, which include revenues from support, training and sale of development systems. The Company accounts for its IP license revenues and related services in accordance with FASB ASC No. 985-605, 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, 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. 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 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 Israeli Innovation Authority of the Ministry of Economy and Industry in Israel (the “IIA“) (refer to Note 13c for further details). Cost of product revenue includes materials, subcontractors 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, office expenses and other support costs. Income taxes: The Company recognizes income taxes under the liability method. It recognizes deferred income tax assets and liabilities for the expected future consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. These differences are measured using the enacted statutory tax rates that are expected to apply to taxable income for the years in which differences are expected to reverse. The effect of a change in tax rates on deferred income taxes is recognized in the statements of income during the period that includes the enactment date. Valuation allowance is recorded to reduce the deferred tax assets to the net amount that the Company believes is more likely than not to be realized. The Company considers all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income and ongoing tax planning strategies, in assessing the need for a valuation allowance. The Company accounts for uncertain tax positions in accordance with ASC 740. ASC 740-10 two-step Research and development: Research and development costs are charged to the consolidated statements of income 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 income during the period in which the expenditure to which they relate is charged. Royalty and non-royalty-bearing The Company recorded grants in the amounts of $4,997, $6,410 and $4,417 for the years ended December 31, 2015, 2016 and 2017, respectively. The Company’s Israeli subsidiary is obligated to pay royalties amounting to 3%-3.5% 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 income. During the year ended December 31, 2015, 2016 and 2017, the Company recorded CIR benefits in the amount of $1,414, $1,485 and $1,555, 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 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 Total contributions for the years ended December 31, 2015, 2016 and 2017 were $733, $1,020 and $988, respectively. Accrued severance pay: The liability of CEVA’s Israeli subsidiary for severance pay for employees hired prior to August 1, 2016 is calculated pursuant to Israeli severance pay law 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. Effective August 1, 2016, the Israeli subsidiary’s agreements with new employees in Israel are under Section 14 of the Severance Pay Law, 1963. The Israeli subsidiary’s contributions for severance pay have extinguished its severance obligation. Upon contribution of the full amount based on the employee’s monthly salary for each year of service, no additional obligation exists regarding the matter of severance pay, and no additional payments is made by the Israeli subsidiary to the employee. Furthermore, the related obligation and amounts deposited on behalf of the employee for such obligation are not stated on the balance sheet, as the Israeli subsidiary is legally released from any obligation to employees once the required deposit amounts have been paid. Severance pay expenses, net of related income, for the years ended December 31, 2015, 2016 and 2017, were $1,285, $1,348 and $1,413, 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. In March 2016, the FASB issued ASU 2016-09, 2016-09”). 2016-09 2016-09 ASU 2016-09 paid-in ASU 2016-09 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. Prior to January 1, 2017, the Company recognized compensation expenses for the value of its options and SARs, net of estimated forfeitures. Estimated forfeitures were based on actual historical pre-vesting 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. 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 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 2015 2016 (* Expected dividend yield 0% 0% Expected volatility 33%-49% 38%-49% Risk-free interest rate 0.2%-2.4% 0.5%-2.4% Expected forfeiture (employees) 10% — Expected forfeiture (executives) 5% 5% Contractual term of up to 10 years 10 years Suboptimal exercise multiple (employees) 2.1 — Suboptimal exercise multiple (executives) 2.4 2.4 (* During 2016, the Company granted stock options only to its non-employee 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: 2015 2016 2017 Expected dividend yield 0% 0% 0% Expected volatility 35%-36% 29%-57% 28%-46% Risk-free interest rate 0.1%-0.3% 0.3%-0.5% 0.5%-1.1% Expected forfeiture 0% 0% 0% Contractual term of up to 24 months 24 months 24 months During the years ended December 31, 2015, 2016 and 2017, the Company recognized equity-based compensation expense related to stock options, SARs, RSUs and employee stock purchase plan as follows: Year ended December 31, 2015 2016 2017 Cost of revenue $ 155 $ 246 $ 459 Research and development, net 1,838 2,860 3,839 Sales and marketing 568 922 1,428 General and administrative 1,454 2,208 2,967 Total equity-based compensation expense $ 4,015 $ 6,236 $ 8,693 As of December 31, 2017, there was $620 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 1.3 years. As of December 31, 2017, there was $10,894 of unrecognized compensation expense related to unvested RSUs. This amount is expected to be recognized over a weighted-average period of 1.4 years. Fair value of financial instruments: The carrying amount of cash, cash equivalents, short term bank deposits, trade receivables, other accounts receivable, trade payables and other accounts payable approximates fair value due to the short-term maturities of these instruments. Marketable securities and derivative instruments are carried at fair value. See Note 3 for more information. Comprehensive income (loss): The Company accounts for comprehensive income (loss) in accordance with FASB ASC No. 220, “Comprehensive Income.” This statement establishes standards for the reporting and display of comprehensive income (loss) and its components in a full set of general purpose financial statements. Comprehensive income (loss) generally represents all changes in stockholders’ equity during the period except those resulting from investments by, or distributions to, stockholders. The Company determined that its items of other comprehensive income (loss) relate to unrealized gains and losses, net of tax, on hedging derivative instruments and marketable securities. Concentration of credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, bank deposits, marketable securities, foreign exchange contracts and trade receivables. The Company invests its surplus cash in cash deposits and marketable securities in financial institutions and has established guidelines relating to diversification and maturities to maintain safety and liquidity of the investments. The majority of the Company’s cash and cash equivalents are invested in high grade certificates of deposits with major U.S., European and Israeli banks. Generally, cash and cash equivalents and bank deposits may be redeemed on demand and therefore minimal credit risk exists with respect to them. Nonetheless, deposits with these banks exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance limits or similar limits in foreign jurisdictions, to the extent such deposits are even insured in such foreign jurisdictions. While the Company monitors on a systematic basis the cash and cash equivalent balances in the operating accounts and adjust the balances as appropriate, these balances could be impacted if one or more of the financial institutions with which the Company deposit its funds fails or is subject to other adverse conditions in the financial or credit markets. To date the Company has experienced no loss of principal or lack of access to its invested cash or cash equivalents; however, the Company can provide no assurance that access to its invested cash and cash equivalents will not be affected if the financial institutions in which the Company holds its cash and cash equivalents fail. Furthermore, the Company holds an investment portfolio consisting principally of corporate bonds. The Company has the ability to hold such investments until recovery of temporary declines in market value or maturity; accordingly, as of December 31, 2017, the Company believes the losses associated with its investments are temporary and no impairment loss was recognized during 2017. 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, mainly in the Asia Pacific, and also in the United States and Europe. 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. The Company has no off-balance-sheet 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. 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, 2016 and 2017, the notional principal amount of the Hedging Contracts to sell U.S. dollars held by the Company was $3,300 and $0, respectively. Advertising expenses: Advertising expenses are charged to consolidated statements of income as incurred. Advertising expenses for the years ended December 31, 2015, 2016 and 2017 were $928, $1,033 and $1,118, respectively. Treasury stock: The Company repurchases its common stock from time to time pursuant to a board-authorized share repurchase program through open market purchases and repurchase plans. 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, paid-in Net income (loss) per share of common stock: Basic net income per share is computed based on the weighted average number of shares of common stock outstanding during each year. Diluted net income per share is computed based on the weighted average number of shares of common stock outstanding during each year, plus dilutive potential shares of common stock considered outstanding during the year, in accordance with FASB ASC No. 260, “Earnings Per Share.” Year ended December 31, 2015 2016 2017 Numerator: Net income $ 6,267 $ 13,100 $ 17,028 Denominator (in thousands): Basic weighted-average common stock outstanding 20,480 20,850 21,771 Effect of stock options, stock appreciation rights and restricted stock units 509 715 790 Diluted weighted-average common stock outstanding 20,989 21,565 22,561 Basic net income per share $ 0.31 $ 0.63 $ 0.78 Diluted net income per share $ 0.30 $ 0.61 $ 0.75 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, 282,696 and 29,892 shares for the years ended December 31, 2015, 2016 and 2017, respectively. Recently Issued Accounting Pronouncement: (a) Revenue recognition In May 2014, the FASB issued new guidance related to revenue recognition, which outlines a comprehensive revenue recognition model and supersedes most current revenue recognition guidance. The new guidance requires a company to recognize revenue as control of goods or services transfers to a customer at an amount that reflects the expected consideration to be received in exchange for those goods or services. It defines a five-step approach for recognizing revenue, which may require a company to use more judgment and make more estimates than under the current guidance. The Company adopted the new guidance during the first quarter of 2018 and applies the standard using modified retrospective approach, with the cumulative effect of applying the new guidance recognized as an adjustment to the opening retained earnings balance. Given the scope of work required to implement the new revenue recognition rules and disclosure requirements under the new guidance, the Company has made progress in the identification of changes to policy, processes and controls, and the Company continues to assess data availability and presentation necessary to meet the additional disclosure requirements of the guidance in the notes to the consolidated financial statements for the adoption period and onwards. The Company finished analyzing the potential impact of the new guidance. The Company currently expects the adoption of this new guidance to most significantly impact its royalty business. Specifically, the Company expects a change in the timing of revenues recognized from sales-based royalties. The Company currently recognizes sales-based royalties as revenues during the quarter during which such royalties are reported by licensees, which is after the conclusion of the quarter in which the licensees’ sales occur and when all other revenue recognition criteria are met. Under the new guidance, the Company will be required to estimate and recognize sales-based royalties during the period during which the associated sales occur, resulting in an acceleration of revenue recognition compared to the current method. In addition, the Company expects an increase in trade receivables, due to royalty revenues now being recorded as accrued revenues in the statement of financial position, along with the Company’s current trade receivables. Furthermore, based on its current analysis, another effect on the Company’s revenue recognition relates to certain deliverables that may be considered as distinct performance obligations separate from other performance obligations, and are measured using the relative standalone selling price basis. Under the new standard, an entity recognizes revenue when or as it satisfies a performance obligation by transferring IP license or services to the customer, either at a point in time or over time. The Company expects to continue to recognize most of its revenues at a point in time upon delivery of its products. The Company expects to recognize revenue over time on significant license customization contracts that are covered by contract accounting standards using cost inputs to measure progress toward completion of its performance obligations, which is similar to the current method. In addition, incremental costs that are related to sales from contracts signed during the period will require capitalization. If the amortization period of those costs are one year or less, the costs are expensed as incurred, which is a practical expedient manner permitted under the new guidance. The Company currently does not expect that this change will have a material impact on its consolidated financial statements. The Company currently estimates the cumulative adjustment to increase the Company’s retained earnings by $8,055, while increasing the Company’s assets by $9,117. The most significant impact of the standard on the Company’s financial statements relates to the timing of revenues recognized from sales-based royalties (amounted to $8,765). The Company will also record a provision for income taxes, which will increase the Company’s current liabilities, in an amount currently estimated at $1,062. Other than specified above, the Company does not otherwise expect the adoption of the new guidance will have a material impact on its businesses. (b) Other accounting standards In January 2016, the FASB issued ASU No. 2016-01, “Financial (Subtopic 825-10): In February 2016, the FASB issued ASU 2016-02, The FASB issued ASU 2016-13 available-for-sale 2016-13 In January 2017, the FASB issued ASU No. 2017-01, In January 2017, the FASB issued ASU No. 2017-04, |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
MARKETABLE SECURITIES | NOTE 2: MARKETABLE SECURITIES The following is a summary of available-for-sale As at December 31, 2017 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Available-for-sale—matures Corporate bonds $ 11,803 $ 3 $ (12 ) $ 11,794 11,803 3 (12 ) 11,794 Available-for-sale—matures Certificate of deposits 747 — — 747 Government bonds 501 — (6 ) 495 Corporate bonds 70,291 14 (677 ) 69,628 71,539 14 (683 ) 70,870 Total $ 83,342 $ 17 $ (695 ) $ 82,664 As at December 31, 2016 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Available-for-sale—matures Corporate bonds $ 9,456 $ 4 $ (15 ) $ 9,445 9,456 4 (15 ) 9,445 Available-for-sale—matures Government bonds 501 — (4 ) 497 Corporate bonds 52,490 3 (567 ) 51,926 52,991 3 (571 ) 52,423 Total $ 62,447 $ 7 $ (586 ) $ 61,868 The following table presents gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2016 and 2017, 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, 2017 $ 49,921 $ (411 ) $ 22,960 $ (284 ) As of December 31, 2016 $ 48,663 $ (557 ) $ 4,875 $ (29 ) As of December 31, 2016 and 2017, 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 Year ended 2015 2016 2017 Gross realized gains from sale of available-for-sale $ 4 $ 24 $ 47 Gross realized losses from sale of available-for-sale $ (82 ) $ (33 ) $ (47 ) |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | NOTE 3: FAIR VALUE MEASUREMENT FASB ASC No. 820, “Fair Value Measurements and Disclosures” defines fair value, establishes a framework for measuring fair value. Fair value is an exit price, representing the amount that would be received for selling an asset or paid for the transfer of a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: Level 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 December 31, Level I Level II Level III Assets: Marketable securities: Certificate of deposits $ 747 — $ 747 — Government bonds 495 — 495 — Corporate bonds 81,422 — 81,422 — Description December 31, Level I Level II Level III Assets: Marketable securities: Government bonds $ 497 — $ 497 — Corporate bonds 61,371 — 61,371 — Foreign exchange contracts 6 — 6 — |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 4: PROPERTY AND EQUIPMENT, NET Composition of assets, grouped by major classifications, is as follows: As at December 31, 2016 2017 Cost: Computers, software and equipment $ 10,031 $ 13,570 Office furniture and equipment 766 797 Leasehold improvements 2,204 2,756 13,001 17,123 Less–Accumulated depreciation (8,196 ) (10,197 ) Property and equipment, net $ 4,805 $ 6,926 The Company recorded depreciation expenses in the amount of $1,399 and $2,014 for the years ended December 31, 2016 and 2017, respectively. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 5: INTANGIBLE ASSETS, NET Year ended December 31, 2016 Year ended December 31, 2017 Weighted Gross Accumulated Net Gross Accumulated Net Intangible assets–amortizable: Customer relationships 4.5 $ 272 $ 151 $ 121 $ 272 $ 211 $ 61 Customer backlog 1.5 93 93 — 93 93 — Core technologies 5.1 5,796 2,939 2,857 5,796 4,115 1,681 Total intangible assets $ 6,161 $ 3,183 $ 2,978 $ 6,161 $ 4,419 $ 1,742 Future estimated annual amortization charges are as follows: 2018 901 2019 841 $ 1,742 |
ACCRUED EXPENSES AND OTHER PAYA
ACCRUED EXPENSES AND OTHER PAYABLES | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER PAYABLES | NOTE 6: ACCRUED EXPENSES AND OTHER PAYABLES As at December 31, 2016 2017 Engineering accruals $ 466 $ 977 Professional fees 583 792 Government grants 263 791 Income taxes payable, net 1,489 45 Facility related accruals 140 290 Other 1,074 1,032 $ 4,015 $ 3,927 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 7: STOCKHOLDERS’ EQUITY a. Common stock: Holders of common stock are entitled to one vote per share on all matters to be voted upon by the Company’s stockholders. In the event of a liquidation, dissolution or winding up of the Company, holders of common stock are entitled to share ratably in all of the Company’s assets. The Board of Directors may declare a dividend out of funds legally available therefore and the holders of common stock are entitled to receive ratably any such dividends. Holders of common stock have no preemptive rights or other subscription rights to convert their shares into any other securities. b. Preferred stock: The Company is authorized to issue up to 5,000,000 shares of “blank check” preferred stock, par value $0.001 per share. Such preferred stock may be issued by the Board of Directors from time to time in one or more series. These series may have designations, preferences and relative, participating, optional or other special rights and any qualifications, limitations or restrictions thereof, including dividend rights, conversion rights, exchange rights, voting rights, redemption rights (including sinking and purchase fund provisions), and dissolution preferences as may be determined by the Company’s Board of Directors. c. Share repurchase program: In August 2008, the Company announced that its Board of Directors approved a share repurchase program for up to one million shares of common stock 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 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. In 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. In 2017, the Company did not repurchase any shares of its common stock. d. Employee and non-employee 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 all SAR grants made in previous years. No SARs were granted in 2016 and 2017). 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, 2017, is as follows: Number of options and Weighted average price Weighted Aggregate Outstanding at the beginning of the year 1,455,908 $ 19.76 Granted — — Exercised (711,208 ) 19.80 Forfeited or expired (15,683 ) 17.51 Outstanding at the end of the year (2) 729,017 $ 19.77 5.2 $ 19,229 Exercisable at the end of the year (3) 513,464 $ 19.07 4.7 $ 13,906 (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 662,075 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 465,223 shares of the Company’s common stock issuable upon exercise. The weighted average fair value of options and SARs granted during the year ended December 2015 was $7.8 per share. The weighted average fair value of options granted during the year ended December 2016 was $12.9 per share. In 2017, the Company did not grant options and/or SARs. The total intrinsic value of options and SARs exercised during the years ended December 31, 2015, 2016 and 2017 was $8,960, $12,282 and $15,188, respectively. The options and SARs granted to employees of the Company and its subsidiaries and the options granted to non-employee Outstanding Exercisable Exercise price (range) Number options Weighted remaining life (years) Weighted exercise Number options Weighted remaining life (years) Weighted exercise 14.16-18.62 365,793 4.2 $ 15.64 290,193 4.0 $ 15.80 19.36-24.86 204,724 5.9 $ 19.91 142,771 5.8 $ 19.65 27.17-31.51 158,500 6.9 $ 29.13 80,500 5.2 $ 29.81 729,017 5.2 $ 19.77 513,464 4.7 $ 19.07 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 A summary of the Company’s RSU activities and related information for the year ended December 31, 2017, is as follows: Number of RSUs Weighted Grant-Date fair value Unvested as at the beginning of the year 505,142 $ 21.59 Granted 288,197 37.25 Vested (203,016 ) 21.85 Forfeited (29,707 ) 26.07 Unvested at the end of the year 560,616 $ 29.31 Stock Plans As of December 31, 2017, 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, 2017, options, SARs and RSUs to purchase 1,309,038 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 2,350,000 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), 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 Under the original terms of the Director Plan, (a) any person who becomes a non-employee non-employee st non-employee st st non-employee 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 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 2,700,000 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, 2017, 298,604 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 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 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, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING ACTIVITIES | NOTE 8: DERIVATIVES AND HEDGING ACTIVITIES The fair value of the Company’s outstanding derivative instruments is as follows: As at 2016 2017 Derivative assets: Derivatives designated as cash flow hedging instruments: Foreign exchange forward contracts $ 6 $ — Total $ 6 $ — The Company recorded the fair value of derivative assets in “prepaid expenses and other accounts receivable” on the Company’s consolidated balance sheets. The increase in unrealized gains recognized in “accumulated other comprehensive income (loss)” on derivatives, before tax effect, is as follows: Year ended December 31, 2015 2016 2017 Derivatives designated as cash flow hedging instruments: Foreign exchange option contracts $ 83 $ 67 $ 90 Foreign exchange forward contracts 94 91 93 $ 177 $ 158 $ 183 The net gains reclassified from “accumulated other comprehensive income (loss)” into income, are as follows: Year ended December 31, 2015 2016 2017 Derivatives designated as cash flow hedging instruments: Foreign exchange option contracts $ (31 ) $ (67 ) $ (90 ) Foreign exchange forward contracts (73 ) (94 ) (99 ) $ (104 ) $ (161 ) $ (189 ) The Company recorded in cost of revenues and operating expenses, a net gain of $104, $161 and 189 during the years ended December 31, 2015, 2016 and 2017, respectively, related to its Hedging Contracts. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 9: ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in accumulated balances of other comprehensive income (loss), net of taxes: Year ended December 31, 2016 Year ended December 31, 2017 Unrealized gains (losses) on available- for-sale Unrealized Total Unrealized gains (losses) on available-for- sale marketable Unrealized Total Beginning balance $ (427 ) $ 8 $ (419 ) $ (502 ) $ 5 $ (497 ) Other comprehensive income (loss) before reclassifications (83 ) 140 57 (83 ) 163 80 Amounts reclassified from accumulated other comprehensive income (loss) 8 (143 ) (135 ) (1 ) (168 ) (169 ) Net current period other comprehensive income (loss) (75 ) (3 ) (78 ) (84 ) (5 ) (89 ) Ending balance $ (502 ) $ 5 $ (497 ) $ (586 ) $ 0 $ (586 ) The following table provides details about reclassifications out of accumulated other comprehensive income (loss): Details about Accumulated Other Comprehensive Amount Reclassified Affected Line Item in the Statements of Operations Year ended 2015 2016 2017 Unrealized gains on cash flow hedges $ — $ 4 $ 4 Cost of revenues 91 132 162 Research and development 5 12 10 Sales and marketing 8 13 13 General and administrative 104 161 189 Total, before income taxes 11 18 21 Income tax expense 93 143 168 Total, net of income taxes Unrealized gains (losses) on available-for-sale (78 ) (9 ) — Financial income, net (8 ) (1 ) (1 ) Income tax benefit (70 ) (8 ) 1 Total, net of income taxes $ 23 $ 135 $ 169 Total, net of income taxes |
GEOGRAPHIC INFORMATION AND MAJO
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA | NOTE 10: GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA a. Summary information about geographic areas: FASB ASC No. 280, “Segment Reporting,” establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company manages its business on a basis of one reportable segment: the licensing of intellectual property to semiconductor companies and electronic equipment manufacturers (see Note 1 for a brief description of the Company’s business). The following is a summary of revenues within geographic areas: Year ended December 31, 2015 2016 2017 Revenues based on customer location: United States $ 9,737 $ 9,134 $ 7,188 Europe, Middle East 7,064 10,901 11,007 Asia Pacific (1) (2) 42,698 52,618 69,312 $ 59,499 $ 72,653 $ 87,507 (1) China $ 29,982 $ 30,030 $ 41,059 (2) S. Korea $ 6,173 $ 15,512 $ 17,842 2016 2017 Long-lived assets by geographic region: Israel 4,026 6,196 France 365 383 United States 240 185 Other 174 162 $ 4,805 $ 6,926 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 2015 2016 2017 Customer A 31 % 27 % 23 % Customer B * ) 19 % 17 % *) 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 2015 2016 2017 DSP products (DSP Cores and Platforms) 82 % 84 % 86 % Connectivity products (Bluetooth, WiFi and SATA/SAS) 18 % 16 % 14 % |
SELECTED STATEMENTS OF INCOME D
SELECTED STATEMENTS OF INCOME DATA | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
SELECTED STATEMENTS OF INCOME DATA | NOTE 11: SELECTED STATEMENTS OF INCOME DATA Financial income, net: Year ended December 31, 2015 2016 2017 Interest income $ 2,845 $ 3,300 $ 4,233 Loss on available-for-sale (78 ) (9 ) — Amortization of premium on available-for-sale (1,111 ) (1,064 ) (1,179 ) Foreign exchange loss, net (490 ) (188 ) (28 ) Accretion of Contingent Consideration (97 ) — — $ 1,069 $ 2,039 $ 3,026 |
TAXES ON INCOME
TAXES ON INCOME | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
TAXES ON INCOME | NOTE 12: TAXES ON INCOME a. U.S. tax reform On December 22, 2017, the U.S. government enacted the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act includes significant changes to the U.S. corporate income tax system including: a federal corporate rate reduction from 35% to 21%; creation of the base erosion anti-abuse tax (“BEAT”), a new minimum tax such as Global Intangible Low Taxed Income (“GILTI”); and the transition of U.S. international taxation from a worldwide tax system to a modified territorial tax system. The change to a modified territorial tax system resulted in a one-time In response to the Tax Act, the SEC staff issued guidance on accounting for the tax effects of the Tax Act. The guidance provides a one-year In connection with its initial analysis of the impact of the Tax Act, the Company had an estimated $5,635 of Transition Tax for the year ended December 31, 2017. After the utilization of existing tax loss carryforwards, the Company does not expect to pay additional U.S. federal cash taxes. The Company has not completed its accounting for the income tax effects of certain elements of the Tax Act. The Tax Act creates a new requirement that certain income such as GILTI earned by a controlled foreign corporation (“CFC”) must be included in the gross income of the CFC U.S. shareholder. Because of the complexity of the new GILTI tax rules, the Company is continuing to evaluate this provision of the Tax Act and whether taxes due on future U.S. inclusions related to GILTI should be recorded as a current-period expense when incurred, or factored into the Company’s measurement of its deferred taxes. As a result, the Company has not included an estimate of the tax expense or benefit related to GILTI for the period ended December 31, 2017. The BEAT provisions in the Tax Reform Act eliminates the deduction of certain base-erosion payments made to related foreign corporations, and impose a minimum tax if greater than regular tax. The Company does not expect it will be subject to this tax and therefore has not included any tax impacts of BEAT in its consolidated financial statements for the year ended December 31, 2017. b. 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, 2017, the open tax years, subject to review by the applicable taxing authorities for the Irish subsidiary, are 2012 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 24% 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 tax-exempt tax-exempt Income not eligible for Approved Enterprise benefits or Benefited Enterprise benefits is taxed at a regular rate, which was 24% in 2017, 25% in 2016 and 26.5% in 2015. In December 2016, the Israeli Parliament approved the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), 2016 which reduces the corporate income tax rate to 24% (instead of 25%) effective on January 1, 2017 and to 23% effective on January 1, 2018. In December 2016, the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), 2016, which includes the Amendment to the Law for the Encouragement of Capital Investments, 1959 (Amendment 73) (the “Amendment”), was published. The Amendment, among other things, prescribes special tax tracks for technological enterprises, which are subject to rules that were issued by the Minister of Finance during April 2017. The new tax track under the Amendment, which is applicable to the Company, is the “Technological Preferred Enterprise”. Technological Preferred Enterprise is an enterprise for which total consolidated revenues of its parent company and all subsidiaries are less than 10 billion New Israeli Shekel (“NIS”). A Technological Preferred Enterprise, as defined in the law, which is located in the center of Israel (where our Israeli subsidiary is currently located), will be subject to tax at a rate of 12% on profits deriving from intellectual property (in development area A—a tax rate of 7.5%). Any dividends distributed to “foreign companies”, as defined in the law, deriving from income from the technological enterprises will be subject to tax at a rate of 4%. As of December 31, 2017 the Company has yet to elect to apply the aforementioned tax track. Accordingly, the above changes in the tax rates relating to Technological Preferred Enterprises were not taken into account in the computation of deferred taxes as of December 31, 2017. The Company expects to apply the Technological Preferred Enterprise tax track from tax year 2020 and onwards. 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, 2017, the open tax years, subject to review by the applicable taxing authorities for the Israeli subsidiary, are 2014 and subsequent years. 3. French Subsidiaries The French operating subsidiaries qualified for a 33.33% tax rate on its profits. In 2017, the French government passed a series of tax reforms allowing for the phased reduction in the corporate tax rate. In 2018, a 28% rate of corporate income tax will apply for amounts of taxable profit up to €500,000 and the standard rate of corporate income tax of 33.33% will apply for amounts of taxable profit above €500,000. In 2019, the standard rate of corporate income tax will be reduced to 31%, with the first €500,000 of taxable profit being still subject to the 28% rate. In 2020, the 28% rate of corporate income tax will become the new standard rate for all taxable profits. In 2021, the standard rate of corporate income tax will be reduced to 26.5%. In 2022, the standard rate of corporate income tax will be reduced to 25%. As of December 31, 2017, the open tax years, subject to review by the applicable taxing authorities for the French subsidiaries, are 2015 and subsequent years. c. Taxes on income comprised of: Year ended December 31, 2015 2016 2017 Domestic taxes: Current $ 115 $ 6 $ (227 ) Deferred — — — Foreign taxes: Current 2,212 3,932 3,473 Deferred (1,213 ) (613 ) (1,375 ) $ 1,114 $ 3,325 $ 1,871 Income (loss) before taxes on income: Domestic $ (3,360 ) $ (3,488 ) $ (5,946 ) Foreign 10,741 19,913 24,845 $ 7,381 $ 16,425 $ 18,899 d. Reconciliation between the Company’s effective tax rate and the U.S. statutory rate: Year ended December 31, 2015 2016 2017 Income before taxes on income $ 7,381 $ 16,425 $ 18,899 Theoretical tax at U.S. statutory rate 2,510 5,585 6,426 Foreign income taxes at rates other than U.S. rate (958 ) (1,831 ) (2,304 ) Approved and benefited enterprises benefits (*) (1,653 ) (2,767 ) (2,698 ) Subpart F 434 538 737 Non-deductible 349 682 294 Non-taxable (481 ) (505 ) (529 ) Changes in uncertain tax position — 505 (1,757 ) Stock-based compensation expense — — (1,503 ) Deemed mandatory repatriation — — 1,916 Changes in valuation allowance 839 1,212 2,076 Other, net 74 (94 ) (787 ) Taxes on income $ 1,114 $ 3,325 $ 1,871 (*) Basic and diluted earnings per share amounts of the benefit resulting from the “Approved Enterprise” and “Benefited Enterprise” status $ 0.08 $ 0.13 $ 0.12 e. Deferred taxes on income: Significant components of the Company’s deferred tax assets are as follows: As at December 31, 2016 2017 Deferred tax assets Operating loss carryforward $ 9,638 $ 13,069 Accrued expenses and deferred revenues 1,128 1,057 Temporary differences related to R&D expenses 1,435 2,118 Equity-based compensation 2,685 1,956 Tax credit carry forward 1,237 1,866 Other 562 476 Total gross deferred tax assets 16,685 20,542 Valuation allowance (13,780 ) (16,590 ) Net deferred tax assets $ 2,905 $ 3,952 Deferred tax liabilities Intangible assets $ 621 $ 275 Other 32 34 Total deferred tax liabilities $ 653 $ 309 Net deferred tax assets (*) $ 2,252 $ 3,643 (*) Net deferred taxes for the years ended December 31, 2016 and 2017 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 operating loss carryforward. The Company is currently analyzing the potential tax liability attributable to any additional repatriation of foreign earnings, but the Company has yet to determine whether it plans to change its prior assertion that such earnings are indefinitely reinvested and repatriate any additional earnings. Accordingly, the Company has not recorded any deferred taxes attributable to other investments in its foreign subsidiaries. The Company will record the tax effects of any change in its prior assertion in the period that it completes its analysis and is able to make a reasonable estimate, and disclose any unrecognized deferred tax liability for temporary differences related to its foreign investments, if practicable. f. 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 2016 2017 Beginning of year $ 3,076 $ 3,784 Additions for current year tax positions 232 1,188 Additions for prior year’s tax positions 476 255 Decrease as a result of the completion of a tax audit for prior years — (3,003 ) Balance at December 31 $ 3,784 $ 2,224 As of December 31, 2016 and 2017, there were $3,784 and $2,224, respectively, of unrecognized tax benefits that if recognized would affect the annual effective tax rate. As of December 31, 2016 and 2017, the Company had accrued interest related to unrecognized tax benefits of $130 and $0, respectively. The Company did not accrue penalties during the years ended December 31, 2016 and 2017. During the year ended December 31, 2017, the Company recorded a tax benefit of $1,805 as a result of the completion of a tax audit for prior years in a certain foreign tax jurisdiction. This amount included a release of $130 in accrued interest related to unrecognized tax benefits. The reduction in the unrecognized tax benefits balance for prior years as a result of the completion of the tax audit for the year ended December 31, 2017 was $3,003. 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. g. Tax loss carryforwards: As of December 31, 2017, CEVA and its subsidiaries had net operating loss carryforwards for federal income tax purposes of approximately $12,541, which are available to offset future federal taxable income. Such loss carryforwards begin to expire in 2030. As of December 31, 2017, CEVA and its subsidiaries had net operating loss carryforwards for California income tax purposes of approximately $8,279, which are available to offset future California taxable income. Such loss carryforwards begin to expire in 2030. As of December 31, 2017, CEVA’s Irish subsidiary had foreign operating losses of approximately $61,608, which are available to offset future taxable income indefinitely. As of December 31, 2017, CEVA’s French subsidiaries had foreign operating losses of approximately $6,807, which are available to offset future taxable income indefinitely. h 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 2010. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 13: 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, 2017, the Company and its subsidiaries had several non-cancelable sub-contractors. Rent expenses for the years ended December 31, 2015, 2016 and 2017, were $1,094, $1,259 and $1,417, respectively. As of December 31, 2017, future purchase obligations and minimum rental commitments for leasehold properties and operating leases with non-cancelable Minimum commitments Commitments Other obligations Total 2018 $ 1,226 $ 3,168 $ 2,237 $ 6,631 2019 436 1,323 — 1,759 2020 372 — — 372 2021 40 — — 40 $ 2,074 $ 4,491 $ 2,237 $ 8,802 c. Royalties: The Company participated in programs sponsored by the Israeli government for the support of research and development activities. Through December 31, 2017, the Company had obtained grants from the IIA for certain of the Company’s research and development projects. The Company is obligated to pay royalties to the IIA, amounting to 3%-3.5% Royalty expenses relating to the IIA grants included in cost of revenues for the years ended December 31, 2015, 2016 and 2017 amounted to $482, $539 and $1,016, respectively. As of December 31, 2017, the aggregate contingent liability to the IIA (including interest) amounted to $22,254. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Balance at Additions Deduction Balance at Year ended December 31, 2017 Allowance for doubtful accounts $ — $ — $ — $ — Year ended December 31, 2016 Allowance for doubtful accounts $ 25 $ — $ 25 $ — Year ended December 31, 2015 Allowance for doubtful accounts $ 25 $ — $ — $ 25 |
ORGANIZATION AND SIGNIFICANT 23
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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 platforms and Artificial Intelligence (AI) processors. These IPs include programmable DSP cores and application-specific platforms for advanced imaging, computer vision, deep learning, sound, voice and audio processing, as well as long range wireless technologies for LTE/5G baseband processing in IoT, handsets and infrastructure, short range wireless platforms for Wi-Fi 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 income as financial income or expenses, as appropriate, which is included in “financial income, net.” The foreign exchange losses arose principally on the EURO and the NIS monetary balance sheet items 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 1.51%, 1.76% and 1.85% during 2015, 2016 and 2017, 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 available-for-sale. Available-for-sale 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 income 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 2015, 2016 and 2017. |
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 1.82%, 1.97% and 2.26% during 2015, 2016 and 2017, 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, 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 2015, 2016 and 2017. |
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 |
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, 2015, 2016 and 2017. |
Investments in Other Companies | Investments in other company: The Company’s investment in a 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, 2015, 2016 and 2017, no impairment loss was identified. |
Revenue Recognition | Revenue recognition: The Company generates its revenues from (1) licensing intellectual property, which in certain circumstances is modified for customer-specific requirements, (2) royalty revenues, and (3) other revenues, which include revenues from support, training and sale of development systems. The Company accounts for its IP license revenues and related services in accordance with FASB ASC No. 985-605, 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, 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. 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 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 Israeli Innovation Authority of the Ministry of Economy and Industry in Israel (the “IIA“) (refer to Note 13c for further details). Cost of product revenue includes materials, subcontractors 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, office expenses and other support costs. |
Income Taxes | Income taxes: The Company recognizes income taxes under the liability method. It recognizes deferred income tax assets and liabilities for the expected future consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. These differences are measured using the enacted statutory tax rates that are expected to apply to taxable income for the years in which differences are expected to reverse. The effect of a change in tax rates on deferred income taxes is recognized in the statements of income during the period that includes the enactment date. Valuation allowance is recorded to reduce the deferred tax assets to the net amount that the Company believes is more likely than not to be realized. The Company considers all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income and ongoing tax planning strategies, in assessing the need for a valuation allowance. The Company accounts for uncertain tax positions in accordance with ASC 740. ASC 740-10 two-step |
Research and Development | Research and development: Research and development costs are charged to the consolidated statements of income 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 income during the period in which the expenditure to which they relate is charged. Royalty and non-royalty-bearing The Company recorded grants in the amounts of $4,997, $6,410 and $4,417 for the years ended December 31, 2015, 2016 and 2017, respectively. The Company’s Israeli subsidiary is obligated to pay royalties amounting to 3%-3.5% 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 income. During the year ended December 31, 2015, 2016 and 2017, the Company recorded CIR benefits in the amount of $1,414, $1,485 and $1,555, 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 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 Total contributions for the years ended December 31, 2015, 2016 and 2017 were $733, $1,020 and $988, respectively. |
Accrued Severance Pay | Accrued severance pay: The liability of CEVA’s Israeli subsidiary for severance pay for employees hired prior to August 1, 2016 is calculated pursuant to Israeli severance pay law 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. Effective August 1, 2016, the Israeli subsidiary’s agreements with new employees in Israel are under Section 14 of the Severance Pay Law, 1963. The Israeli subsidiary’s contributions for severance pay have extinguished its severance obligation. Upon contribution of the full amount based on the employee’s monthly salary for each year of service, no additional obligation exists regarding the matter of severance pay, and no additional payments is made by the Israeli subsidiary to the employee. Furthermore, the related obligation and amounts deposited on behalf of the employee for such obligation are not stated on the balance sheet, as the Israeli subsidiary is legally released from any obligation to employees once the required deposit amounts have been paid. Severance pay expenses, net of related income, for the years ended December 31, 2015, 2016 and 2017, were $1,285, $1,348 and $1,413, 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. In March 2016, the FASB issued ASU 2016-09, 2016-09”). 2016-09 2016-09 ASU 2016-09 paid-in ASU 2016-09 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. Prior to January 1, 2017, the Company recognized compensation expenses for the value of its options and SARs, net of estimated forfeitures. Estimated forfeitures were based on actual historical pre-vesting 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. 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 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 2015 2016 (* Expected dividend yield 0% 0% Expected volatility 33%-49% 38%-49% Risk-free interest rate 0.2%-2.4% 0.5%-2.4% Expected forfeiture (employees) 10% — Expected forfeiture (executives) 5% 5% Contractual term of up to 10 years 10 years Suboptimal exercise multiple (employees) 2.1 — Suboptimal exercise multiple (executives) 2.4 2.4 (* During 2016, the Company granted stock options only to its non-employee 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: 2015 2016 2017 Expected dividend yield 0% 0% 0% Expected volatility 35%-36% 29%-57% 28%-46% Risk-free interest rate 0.1%-0.3% 0.3%-0.5% 0.5%-1.1% Expected forfeiture 0% 0% 0% Contractual term of up to 24 months 24 months 24 months During the years ended December 31, 2015, 2016 and 2017, the Company recognized equity-based compensation expense related to stock options, SARs, RSUs and employee stock purchase plan as follows: Year ended December 31, 2015 2016 2017 Cost of revenue $ 155 $ 246 $ 459 Research and development, net 1,838 2,860 3,839 Sales and marketing 568 922 1,428 General and administrative 1,454 2,208 2,967 Total equity-based compensation expense $ 4,015 $ 6,236 $ 8,693 As of December 31, 2017, there was $620 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 1.3 years. As of December 31, 2017, there was $10,894 of unrecognized compensation expense related to unvested RSUs. This amount is expected to be recognized over a weighted-average period of 1.4 years. |
Fair Value of Financial Instruments | Fair value of financial instruments: The carrying amount of cash, cash equivalents, short term bank deposits, trade receivables, other accounts receivable, trade payables and other accounts payable approximates fair value due to the short-term maturities of these instruments. Marketable securities and derivative instruments are carried at fair value. See Note 3 for more information. |
Comprehensive Income (Loss) | Comprehensive income (loss): The Company accounts for comprehensive income (loss) in accordance with FASB ASC No. 220, “Comprehensive Income.” This statement establishes standards for the reporting and display of comprehensive income (loss) and its components in a full set of general purpose financial statements. Comprehensive income (loss) generally represents all changes in stockholders’ equity during the period except those resulting from investments by, or distributions to, stockholders. The Company determined that its items of other comprehensive income (loss) relate to unrealized gains and losses, net of tax, on hedging derivative instruments and marketable securities. |
Concentration of Credit Risk | Concentration of credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, bank deposits, marketable securities, foreign exchange contracts and trade receivables. The Company invests its surplus cash in cash deposits and marketable securities in financial institutions and has established guidelines relating to diversification and maturities to maintain safety and liquidity of the investments. The majority of the Company’s cash and cash equivalents are invested in high grade certificates of deposits with major U.S., European and Israeli banks. Generally, cash and cash equivalents and bank deposits may be redeemed on demand and therefore minimal credit risk exists with respect to them. Nonetheless, deposits with these banks exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance limits or similar limits in foreign jurisdictions, to the extent such deposits are even insured in such foreign jurisdictions. While the Company monitors on a systematic basis the cash and cash equivalent balances in the operating accounts and adjust the balances as appropriate, these balances could be impacted if one or more of the financial institutions with which the Company deposit its funds fails or is subject to other adverse conditions in the financial or credit markets. To date the Company has experienced no loss of principal or lack of access to its invested cash or cash equivalents; however, the Company can provide no assurance that access to its invested cash and cash equivalents will not be affected if the financial institutions in which the Company holds its cash and cash equivalents fail. Furthermore, the Company holds an investment portfolio consisting principally of corporate bonds. The Company has the ability to hold such investments until recovery of temporary declines in market value or maturity; accordingly, as of December 31, 2017, the Company believes the losses associated with its investments are temporary and no impairment loss was recognized during 2017. 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, mainly in the Asia Pacific, and also in the United States and Europe. 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. The Company has no off-balance-sheet |
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. 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, 2016 and 2017, the notional principal amount of the Hedging Contracts to sell U.S. dollars held by the Company was $3,300 and $0, respectively. |
Advertising Expenses | Advertising expenses: Advertising expenses are charged to consolidated statements of income as incurred. Advertising expenses for the years ended December 31, 2015, 2016 and 2017 were $928, $1,033 and $1,118, 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. 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, paid-in |
Net Income (Loss) Per Share of Common Stock | Net income (loss) per share of common stock: Basic net income per share is computed based on the weighted average number of shares of common stock outstanding during each year. Diluted net income per share is computed based on the weighted average number of shares of common stock outstanding during each year, plus dilutive potential shares of common stock considered outstanding during the year, in accordance with FASB ASC No. 260, “Earnings Per Share.” Year ended December 31, 2015 2016 2017 Numerator: Net income $ 6,267 $ 13,100 $ 17,028 Denominator (in thousands): Basic weighted-average common stock outstanding 20,480 20,850 21,771 Effect of stock options, stock appreciation rights and restricted stock units 509 715 790 Diluted weighted-average common stock outstanding 20,989 21,565 22,561 Basic net income per share $ 0.31 $ 0.63 $ 0.78 Diluted net income per share $ 0.30 $ 0.61 $ 0.75 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, 282,696 and 29,892 shares for the years ended December 31, 2015, 2016 and 2017, respectively. |
Recently Issued Accounting Pronouncement | Recently Issued Accounting Pronouncement: (a) Revenue recognition In May 2014, the FASB issued new guidance related to revenue recognition, which outlines a comprehensive revenue recognition model and supersedes most current revenue recognition guidance. The new guidance requires a company to recognize revenue as control of goods or services transfers to a customer at an amount that reflects the expected consideration to be received in exchange for those goods or services. It defines a five-step approach for recognizing revenue, which may require a company to use more judgment and make more estimates than under the current guidance. The Company adopted the new guidance during the first quarter of 2018 and applies the standard using modified retrospective approach, with the cumulative effect of applying the new guidance recognized as an adjustment to the opening retained earnings balance. Given the scope of work required to implement the new revenue recognition rules and disclosure requirements under the new guidance, the Company has made progress in the identification of changes to policy, processes and controls, and the Company continues to assess data availability and presentation necessary to meet the additional disclosure requirements of the guidance in the notes to the consolidated financial statements for the adoption period and onwards. The Company finished analyzing the potential impact of the new guidance. The Company currently expects the adoption of this new guidance to most significantly impact its royalty business. Specifically, the Company expects a change in the timing of revenues recognized from sales-based royalties. The Company currently recognizes sales-based royalties as revenues during the quarter during which such royalties are reported by licensees, which is after the conclusion of the quarter in which the licensees’ sales occur and when all other revenue recognition criteria are met. Under the new guidance, the Company will be required to estimate and recognize sales-based royalties during the period during which the associated sales occur, resulting in an acceleration of revenue recognition compared to the current method. In addition, the Company expects an increase in trade receivables, due to royalty revenues now being recorded as accrued revenues in the statement of financial position, along with the Company’s current trade receivables. Furthermore, based on its current analysis, another effect on the Company’s revenue recognition relates to certain deliverables that may be considered as distinct performance obligations separate from other performance obligations, and are measured using the relative standalone selling price basis. Under the new standard, an entity recognizes revenue when or as it satisfies a performance obligation by transferring IP license or services to the customer, either at a point in time or over time. The Company expects to continue to recognize most of its revenues at a point in time upon delivery of its products. The Company expects to recognize revenue over time on significant license customization contracts that are covered by contract accounting standards using cost inputs to measure progress toward completion of its performance obligations, which is similar to the current method. In addition, incremental costs that are related to sales from contracts signed during the period will require capitalization. If the amortization period of those costs are one year or less, the costs are expensed as incurred, which is a practical expedient manner permitted under the new guidance. The Company currently does not expect that this change will have a material impact on its consolidated financial statements. The Company currently estimates the cumulative adjustment to increase the Company’s retained earnings by $8,055, while increasing the Company’s assets by $9,117. The most significant impact of the standard on the Company’s financial statements relates to the timing of revenues recognized from sales-based royalties (amounted to $8,765). The Company will also record a provision for income taxes, which will increase the Company’s current liabilities, in an amount currently estimated at $1,062. Other than specified above, the Company does not otherwise expect the adoption of the new guidance will have a material impact on its businesses. (b) Other accounting standards In January 2016, the FASB issued ASU No. 2016-01, “Financial (Subtopic 825-10): In February 2016, the FASB issued ASU 2016-02, The FASB issued ASU 2016-13 available-for-sale 2016-13 In January 2017, the FASB issued ASU No. 2017-01, In January 2017, the FASB issued ASU No. 2017-04, |
ORGANIZATION AND SIGNIFICANT 24
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 2015 2016 (* Expected dividend yield 0% 0% Expected volatility 33%-49% 38%-49% Risk-free interest rate 0.2%-2.4% 0.5%-2.4% Expected forfeiture (employees) 10% — Expected forfeiture (executives) 5% 5% Contractual term of up to 10 years 10 years Suboptimal exercise multiple (employees) 2.1 — Suboptimal exercise multiple (executives) 2.4 2.4 (* During 2016, the Company granted stock options only to its non-employee |
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: 2015 2016 2017 Expected dividend yield 0% 0% 0% Expected volatility 35%-36% 29%-57% 28%-46% Risk-free interest rate 0.1%-0.3% 0.3%-0.5% 0.5%-1.1% 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, 2015, 2016 and 2017, the Company recognized equity-based compensation expense related to stock options, SARs, RSUs and employee stock purchase plan as follows: Year ended December 31, 2015 2016 2017 Cost of revenue $ 155 $ 246 $ 459 Research and development, net 1,838 2,860 3,839 Sales and marketing 568 922 1,428 General and administrative 1,454 2,208 2,967 Total equity-based compensation expense $ 4,015 $ 6,236 $ 8,693 |
Calculation of Basic and Diluted Net Income Per Share | Basic net income per share is computed based on the weighted average number of shares of common stock outstanding during each year. Diluted net income per share is computed based on the weighted average number of shares of common stock outstanding during each year, plus dilutive potential shares of common stock considered outstanding during the year, in accordance with FASB ASC No. 260, “Earnings Per Share.” Year ended December 31, 2015 2016 2017 Numerator: Net income $ 6,267 $ 13,100 $ 17,028 Denominator (in thousands): Basic weighted-average common stock outstanding 20,480 20,850 21,771 Effect of stock options, stock appreciation rights and restricted stock units 509 715 790 Diluted weighted-average common stock outstanding 20,989 21,565 22,561 Basic net income per share $ 0.31 $ 0.63 $ 0.78 Diluted net income per share $ 0.30 $ 0.61 $ 0.75 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Summary of Available-for-Sale Marketable Securities | The following is a summary of available-for-sale As at December 31, 2017 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Available-for-sale—matures Corporate bonds $ 11,803 $ 3 $ (12 ) $ 11,794 11,803 3 (12 ) 11,794 Available-for-sale—matures Certificate of deposits 747 — — 747 Government bonds 501 — (6 ) 495 Corporate bonds 70,291 14 (677 ) 69,628 71,539 14 (683 ) 70,870 Total $ 83,342 $ 17 $ (695 ) $ 82,664 As at December 31, 2016 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Available-for-sale—matures Corporate bonds $ 9,456 $ 4 $ (15 ) $ 9,445 9,456 4 (15 ) 9,445 Available-for-sale—matures Government bonds 501 — (4 ) 497 Corporate bonds 52,490 3 (567 ) 51,926 52,991 3 (571 ) 52,423 Total $ 62,447 $ 7 $ (586 ) $ 61,868 |
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, 2016 and 2017, 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, 2017 $ 49,921 $ (411 ) $ 22,960 $ (284 ) As of December 31, 2016 $ 48,663 $ (557 ) $ 4,875 $ (29 ) |
Summary of Gross Realized Gains and Losses from Sale of Available-for-Sale Marketable Securities | The following table presents gross realized gains and losses from sale of available-for-sale Year ended 2015 2016 2017 Gross realized gains from sale of available-for-sale $ 4 $ 24 $ 47 Gross realized losses from sale of available-for-sale $ (82 ) $ (33 ) $ (47 ) |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 $ 747 — $ 747 — Government bonds 495 — 495 — Corporate bonds 81,422 — 81,422 — Description December 31, Level I Level II Level III Assets: Marketable securities: Government bonds $ 497 — $ 497 — Corporate bonds 61,371 — 61,371 — Foreign exchange contracts 6 — 6 — |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2016 2017 Cost: Computers, software and equipment $ 10,031 $ 13,570 Office furniture and equipment 766 797 Leasehold improvements 2,204 2,756 13,001 17,123 Less–Accumulated depreciation (8,196 ) (10,197 ) Property and equipment, net $ 4,805 $ 6,926 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | Year ended December 31, 2016 Year ended December 31, 2017 Weighted Gross Accumulated Net Gross Accumulated Net Intangible assets–amortizable: Customer relationships 4.5 $ 272 $ 151 $ 121 $ 272 $ 211 $ 61 Customer backlog 1.5 93 93 — 93 93 — Core technologies 5.1 5,796 2,939 2,857 5,796 4,115 1,681 Total intangible assets $ 6,161 $ 3,183 $ 2,978 $ 6,161 $ 4,419 $ 1,742 |
Summary of Future Estimated Annual Amortization Charges | Future estimated annual amortization charges are as follows: 2018 901 2019 841 $ 1,742 |
ACCRUED EXPENSES AND OTHER PA29
ACCRUED EXPENSES AND OTHER PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Payables | As at December 31, 2016 2017 Engineering accruals $ 466 $ 977 Professional fees 583 792 Government grants 263 791 Income taxes payable, net 1,489 45 Facility related accruals 140 290 Other 1,074 1,032 $ 4,015 $ 3,927 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017, is as follows: Number of options and Weighted average price Weighted Aggregate Outstanding at the beginning of the year 1,455,908 $ 19.76 Granted — — Exercised (711,208 ) 19.80 Forfeited or expired (15,683 ) 17.51 Outstanding at the end of the year (2) 729,017 $ 19.77 5.2 $ 19,229 Exercisable at the end of the year (3) 513,464 $ 19.07 4.7 $ 13,906 (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 662,075 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 465,223 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 Outstanding Exercisable Exercise price (range) Number options Weighted remaining life (years) Weighted exercise Number options Weighted remaining life (years) Weighted exercise 14.16-18.62 365,793 4.2 $ 15.64 290,193 4.0 $ 15.80 19.36-24.86 204,724 5.9 $ 19.91 142,771 5.8 $ 19.65 27.17-31.51 158,500 6.9 $ 29.13 80,500 5.2 $ 29.81 729,017 5.2 $ 19.77 513,464 4.7 $ 19.07 |
Summary of Restricted Stock Units Activity | A summary of the Company’s RSU activities and related information for the year ended December 31, 2017, is as follows: Number of RSUs Weighted Grant-Date fair value Unvested as at the beginning of the year 505,142 $ 21.59 Granted 288,197 37.25 Vested (203,016 ) 21.85 Forfeited (29,707 ) 26.07 Unvested at the end of the year 560,616 $ 29.31 |
DERIVATIVES AND HEDGING ACTIV31
DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 2016 2017 Derivative assets: Derivatives designated as cash flow hedging instruments: Foreign exchange forward contracts $ 6 $ — Total $ 6 $ — |
Increase in Unrealized Gains Recognized in "Accumulated Other Comprehensive Income (Loss)" on Derivatives, Before Tax Effect | The increase in unrealized gains recognized in “accumulated other comprehensive income (loss)” on derivatives, before tax effect, is as follows: Year ended December 31, 2015 2016 2017 Derivatives designated as cash flow hedging instruments: Foreign exchange option contracts $ 83 $ 67 $ 90 Foreign exchange forward contracts 94 91 93 $ 177 $ 158 $ 183 |
Net Gains Reclassified from "Accumulated Other Comprehensive Income (Loss)" | The net gains reclassified from “accumulated other comprehensive income (loss)” into income, are as follows: Year ended December 31, 2015 2016 2017 Derivatives designated as cash flow hedging instruments: Foreign exchange option contracts $ (31 ) $ (67 ) $ (90 ) Foreign exchange forward contracts (73 ) (94 ) (99 ) $ (104 ) $ (161 ) $ (189 ) |
ACCUMULATED OTHER COMPREHENSI32
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2016 Year ended December 31, 2017 Unrealized gains (losses) on available- for-sale Unrealized Total Unrealized gains (losses) on available-for- sale marketable Unrealized Total Beginning balance $ (427 ) $ 8 $ (419 ) $ (502 ) $ 5 $ (497 ) Other comprehensive income (loss) before reclassifications (83 ) 140 57 (83 ) 163 80 Amounts reclassified from accumulated other comprehensive income (loss) 8 (143 ) (135 ) (1 ) (168 ) (169 ) Net current period other comprehensive income (loss) (75 ) (3 ) (78 ) (84 ) (5 ) (89 ) Ending balance $ (502 ) $ 5 $ (497 ) $ (586 ) $ 0 $ (586 ) |
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 Affected Line Item in the Statements of Operations Year ended 2015 2016 2017 Unrealized gains on cash flow hedges $ — $ 4 $ 4 Cost of revenues 91 132 162 Research and development 5 12 10 Sales and marketing 8 13 13 General and administrative 104 161 189 Total, before income taxes 11 18 21 Income tax expense 93 143 168 Total, net of income taxes Unrealized gains (losses) on available-for-sale (78 ) (9 ) — Financial income, net (8 ) (1 ) (1 ) Income tax benefit (70 ) (8 ) 1 Total, net of income taxes $ 23 $ 135 $ 169 Total, net of income taxes |
GEOGRAPHIC INFORMATION AND MA33
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Revenues Based on Customer Location | The following is a summary of revenues within geographic areas: Year ended December 31, 2015 2016 2017 Revenues based on customer location: United States $ 9,737 $ 9,134 $ 7,188 Europe, Middle East 7,064 10,901 11,007 Asia Pacific (1) (2) 42,698 52,618 69,312 $ 59,499 $ 72,653 $ 87,507 (1) China $ 29,982 $ 30,030 $ 41,059 (2) S. Korea $ 6,173 $ 15,512 $ 17,842 |
Long-Lived Assets by Geographic Region | 2016 2017 Long-lived assets by geographic region: Israel 4,026 6,196 France 365 383 United States 240 185 Other 174 162 $ 4,805 $ 6,926 |
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 2015 2016 2017 Customer A 31 % 27 % 23 % Customer B * ) 19 % 17 % *) 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 2015 2016 2017 DSP products (DSP Cores and Platforms) 82 % 84 % 86 % Connectivity products (Bluetooth, WiFi and SATA/SAS) 18 % 16 % 14 % |
SELECTED STATEMENTS OF INCOME34
SELECTED STATEMENTS OF INCOME DATA (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Financial Income, Net | Financial income, net: Year ended December 31, 2015 2016 2017 Interest income $ 2,845 $ 3,300 $ 4,233 Loss on available-for-sale (78 ) (9 ) — Amortization of premium on available-for-sale (1,111 ) (1,064 ) (1,179 ) Foreign exchange loss, net (490 ) (188 ) (28 ) Accretion of Contingent Consideration (97 ) — — $ 1,069 $ 2,039 $ 3,026 |
TAXES ON INCOME (Tables)
TAXES ON INCOME (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Taxes on Income Comprised | c. Taxes on income comprised of: Year ended December 31, 2015 2016 2017 Domestic taxes: Current $ 115 $ 6 $ (227 ) Deferred — — — Foreign taxes: Current 2,212 3,932 3,473 Deferred (1,213 ) (613 ) (1,375 ) $ 1,114 $ 3,325 $ 1,871 Income (loss) before taxes on income: Domestic $ (3,360 ) $ (3,488 ) $ (5,946 ) Foreign 10,741 19,913 24,845 $ 7,381 $ 16,425 $ 18,899 |
Reconciliation Between Company's Effective Tax Rate and U.S. Statutory Rate | d. Reconciliation between the Company’s effective tax rate and the U.S. statutory rate: Year ended December 31, 2015 2016 2017 Income before taxes on income $ 7,381 $ 16,425 $ 18,899 Theoretical tax at U.S. statutory rate 2,510 5,585 6,426 Foreign income taxes at rates other than U.S. rate (958 ) (1,831 ) (2,304 ) Approved and benefited enterprises benefits (*) (1,653 ) (2,767 ) (2,698 ) Subpart F 434 538 737 Non-deductible 349 682 294 Non-taxable (481 ) (505 ) (529 ) Changes in uncertain tax position — 505 (1,757 ) Stock-based compensation expense — — (1,503 ) Deemed mandatory repatriation — — 1,916 Changes in valuation allowance 839 1,212 2,076 Other, net 74 (94 ) (787 ) Taxes on income $ 1,114 $ 3,325 $ 1,871 (*) Basic and diluted earnings per share amounts of the benefit resulting from the “Approved Enterprise” and “Benefited Enterprise” status $ 0.08 $ 0.13 $ 0.12 |
Deferred Taxes on Income | e. Deferred taxes on income: Significant components of the Company’s deferred tax assets are as follows: As at December 31, 2016 2017 Deferred tax assets Operating loss carryforward $ 9,638 $ 13,069 Accrued expenses and deferred revenues 1,128 1,057 Temporary differences related to R&D expenses 1,435 2,118 Equity-based compensation 2,685 1,956 Tax credit carry forward 1,237 1,866 Other 562 476 Total gross deferred tax assets 16,685 20,542 Valuation allowance (13,780 ) (16,590 ) Net deferred tax assets $ 2,905 $ 3,952 Deferred tax liabilities Intangible assets $ 621 $ 275 Other 32 34 Total deferred tax liabilities $ 653 $ 309 Net deferred tax assets (*) $ 2,252 $ 3,643 (*) Net deferred taxes for the years ended December 31, 2016 and 2017 are all from foreign jurisdictions. |
Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits | f. 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 2016 2017 Beginning of year $ 3,076 $ 3,784 Additions for current year tax positions 232 1,188 Additions for prior year’s tax positions 476 255 Decrease as a result of the completion of a tax audit for prior years — (3,003 ) Balance at December 31 $ 3,784 $ 2,224 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017, future purchase obligations and minimum rental commitments for leasehold properties and operating leases with non-cancelable Minimum commitments Commitments Other obligations Total 2018 $ 1,226 $ 3,168 $ 2,237 $ 6,631 2019 436 1,323 — 1,759 2020 372 — — 372 2021 40 — — 40 $ 2,074 $ 4,491 $ 2,237 $ 8,802 |
Organization and Significant 37
Organization and Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2017USD ($)Segmentshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | ||
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 | 0 | 0 | |
Amount of grants recorded as reduction in research and development expense | 4,417,000 | 6,410,000 | 4,997,000 | |
Tax credits on research and development expenses | $ 1,555,000 | 1,485,000 | 1,414,000 | |
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 | $ 988,000 | 1,020,000 | 733,000 | |
Severance pay expense, net of related income | $ 1,413,000 | 1,348,000 | 1,285,000 | |
Number of shares, Options/SAR units granted | shares | [1] | 0 | ||
Impairment loss | $ 0 | |||
Advertising expense | $ 1,118,000 | $ 1,033,000 | $ 928,000 | |
Antidilutive shares excluded from computation of earnings per share | shares | 29,892 | 282,696 | 820,631 | |
Foreign exchange forward and option contracts | Derivatives designated as cash flow hedging instruments | ||||
Significant Accounting Policies [Line Items] | ||||
Notional principal amount of Hedging Contracts | $ 0 | $ 3,300,000 | ||
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% | |||
Royalty Revenue | ASU 2014-09 | ||||
Significant Accounting Policies [Line Items] | ||||
Revenues recognized from sales-based royalties | $ 8,765,000 | |||
Stock Options, Stock Appreciation Rights and Employee Stock Purchase Plan | ||||
Significant Accounting Policies [Line Items] | ||||
Unrecognized compensation expense | $ 620,000 | |||
Unrecognized compensation expense, weighted-average period of recognition | 1 year 3 months 19 days | |||
Restricted Stock Units (RSUs) | ||||
Significant Accounting Policies [Line Items] | ||||
Unrecognized compensation expense | $ 10,894,000 | |||
Unrecognized compensation expense, weighted-average period of recognition | 1 year 4 months 24 days | |||
Retained Earnings | ASU 2014-09 | ||||
Significant Accounting Policies [Line Items] | ||||
Cumulative adjustment to increase in equity or assets | $ 8,055,000 | |||
Assets | ASU 2014-09 | ||||
Significant Accounting Policies [Line Items] | ||||
Cumulative adjustment to increase in equity or assets | 9,117,000 | |||
Current Liabilities | ASU 2014-09 | ||||
Significant Accounting Policies [Line Items] | ||||
Cumulative adjustment to increase in equity or assets | $ 1,062,000 | |||
Short-term investments | ||||
Significant Accounting Policies [Line Items] | ||||
Interest rate bank deposits | 1.85% | 1.76% | 1.51% | |
Long-term investments | ||||
Significant Accounting Policies [Line Items] | ||||
Interest rate bank deposits | 2.26% | 1.97% | 1.82% | |
[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. |
Annual Depreciation Rates of Pr
Annual Depreciation Rates of Property, Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2016ExecutiveOfficers | [1] | Dec. 31, 2015EmployeeExecutiveOfficers | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | |
Expected volatility, Minimum | 38.00% | 33.00% | |
Expected volatility, Maximum | 49.00% | 49.00% | |
Risk-free interest rate, Minimum | 0.50% | 0.20% | |
Risk-free interest rate, Maximum | 2.40% | 2.40% | |
Expected forfeiture (employees) | 10.00% | ||
Expected forfeiture (executives) | 5.00% | 5.00% | |
Contractual term of up to | 10 years | 10 years | |
Employees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Suboptimal exercise multiple | Employee | 2.1 | ||
Executives | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Suboptimal exercise multiple | ExecutiveOfficers | 2.4 | 2.4 | |
[1] | During 2016, the Company granted stock options only to its non-employee directors. |
Assumptions Used to Estimate 40
Assumptions Used to Estimate Fair Value of Employee Stock Purchase Plan (Detail) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected dividend yield | 0.00% | [1] | 0.00% | |
Expected volatility, Minimum | 38.00% | [1] | 33.00% | |
Expected volatility, Maximum | 49.00% | [1] | 49.00% | |
Risk-free interest rate, Minimum | 0.50% | [1] | 0.20% | |
Risk-free interest rate, Maximum | 2.40% | [1] | 2.40% | |
Expected forfeiture | 10.00% | |||
Contractual term of up to | 10 years | [1] | 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 | 28.00% | 29.00% | 35.00% | |
Expected volatility, Maximum | 46.00% | 57.00% | 36.00% | |
Risk-free interest rate, Minimum | 0.50% | 0.30% | 0.10% | |
Risk-free interest rate, Maximum | 1.10% | 0.50% | 0.30% | |
Expected forfeiture | 0.00% | 0.00% | 0.00% | |
Contractual term of up to | 24 months | 24 months | 24 months | |
[1] | During 2016, the Company granted stock options only to its non-employee directors. |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total equity-based compensation expense | $ 8,693 | $ 6,236 | $ 4,015 |
Cost of revenues | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total equity-based compensation expense | 459 | 246 | 155 |
Research and development, net | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total equity-based compensation expense | 3,839 | 2,860 | 1,838 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total equity-based compensation expense | 1,428 | 922 | 568 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total equity-based compensation expense | $ 2,967 | $ 2,208 | $ 1,454 |
Calculation of Basic and Dilute
Calculation of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | |||
Net income | $ 17,028 | $ 13,100 | $ 6,267 |
Denominator (in thousands): | |||
Basic weighted-average common stock outstanding | 21,771 | 20,850 | 20,480 |
Effect of stock options, stock appreciation rights and restricted stock units | 790 | 715 | 509 |
Diluted weighted-average common stock outstanding | 22,561 | 21,565 | 20,989 |
Basic net income per share | $ 0.78 | $ 0.63 | $ 0.31 |
Diluted net income per share | $ 0.75 | $ 0.61 | $ 0.30 |
Summary of Available-for-Sale M
Summary of Available-for-Sale Marketable Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale-matures within one year, Amortized cost | $ 11,803 | $ 9,456 |
Available-for-sale-matures within one year through five years, Amortized cost | 71,539 | 52,991 |
Amortized cost, Total | 83,342 | 62,447 |
Available-for-sale-matures within one year, Gross unrealized gains | 3 | 4 |
Available-for-sale-matures after one year through five years, Gross unrealized gains | 14 | 3 |
Gross unrealized gains, Total | 17 | 7 |
Available-for-sale-matures within one year, Gross unrealized losses | (12) | (15) |
Available-for-sale-matures after one year through five years, Gross unrealized losses | (683) | (571) |
Gross unrealized losses, Total | (695) | (586) |
Available-for-sale-matures within one year, Fair value | 11,794 | 9,445 |
Available-for-sale-matures after one year through five years, Fair value | 70,870 | 52,423 |
Fair value, Total | 82,664 | 61,868 |
Certificates of deposits | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale-matures within one year through five years, Amortized cost | 747 | |
Available-for-sale-matures after one year through five years, Fair value | 747 | |
Fair value, Total | 747 | |
Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale-matures within one year, Amortized cost | 11,803 | 9,456 |
Available-for-sale-matures within one year through five years, Amortized cost | 70,291 | 52,490 |
Available-for-sale-matures within one year, Gross unrealized gains | 3 | 4 |
Available-for-sale-matures after one year through five years, Gross unrealized gains | 14 | 3 |
Available-for-sale-matures within one year, Gross unrealized losses | (12) | (15) |
Available-for-sale-matures after one year through five years, Gross unrealized losses | (677) | (567) |
Available-for-sale-matures within one year, Fair value | 11,794 | 9,445 |
Available-for-sale-matures after one year through five years, Fair value | 69,628 | 51,926 |
Government bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale-matures within one year through five years, Amortized cost | 501 | 501 |
Available-for-sale-matures after one year through five years, Gross unrealized losses | (6) | (4) |
Available-for-sale-matures after one year through five years, Fair value | 495 | 497 |
Fair value, Total | $ 495 | $ 497 |
Summary of Gross Unrealized Los
Summary of Gross Unrealized Losses and Fair Values on Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Less than 12 months, Fair value | $ 49,921 | $ 48,663 |
Less than 12 months, Gross unrealized loss | (411) | (557) |
12 months or greater, Fair value | 22,960 | 4,875 |
12 months or greater, Gross unrealized loss | $ (284) | $ (29) |
Summary of Gross Realized Gains
Summary of Gross Realized Gains and Losses from Sale of Available-for-Sale Marketable Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |||
Gross realized gains from sale of available-for-sale marketable securities | $ 47 | $ 24 | $ 4 |
Gross realized losses from sale of available-for-sale marketable securities | $ (47) | $ (33) | $ (82) |
Fair Value Measurement (Detail)
Fair Value Measurement (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Marketable securities | $ 82,664 | $ 61,868 |
Foreign exchange contracts | 6 | |
Government bonds | ||
Assets: | ||
Marketable securities | 495 | 497 |
Certificates of deposits | ||
Assets: | ||
Marketable securities | 747 | |
Corporate bonds | ||
Assets: | ||
Marketable securities | 81,422 | 61,371 |
Level II | ||
Assets: | ||
Foreign exchange contracts | 6 | |
Level II | Government bonds | ||
Assets: | ||
Marketable securities | 495 | 497 |
Level II | Certificates of deposits | ||
Assets: | ||
Marketable securities | 747 | |
Level II | Corporate bonds | ||
Assets: | ||
Marketable securities | $ 81,422 | $ 61,371 |
Composition of Assets, Grouped
Composition of Assets, Grouped by Major Classifications (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 17,123 | $ 13,001 |
Less - Accumulated depreciation | (10,197) | (8,196) |
Property and equipment, net | 6,926 | 4,805 |
Computers, software and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 13,570 | 10,031 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 797 | 766 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,756 | $ 2,204 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expenses | $ 2,014 | $ 1,399 | $ 1,058 |
Summary of Intangible Assets (D
Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets, Gross Carrying Amount | $ 6,161 | $ 6,161 |
Total intangible assets, Accumulated Amortization | 3,183 | 4,419 |
Total intangible assets, Net | $ 2,978 | 1,742 |
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 | 151 | 211 |
Total intangible assets, Net | $ 121 | 61 |
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 | $ 93 | 93 |
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 | 2,939 | 4,115 |
Total intangible assets, Net | $ 2,857 | $ 1,681 |
Summary of Future Estimated Ann
Summary of Future Estimated Annual Amortization Charges (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,018 | $ 901 | |
2,019 | 841 | |
Total intangible assets, Net | $ 1,742 | $ 2,978 |
Accrued Expenses and Other Pa51
Accrued Expenses and Other Payables (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Engineering accruals | $ 977 | $ 466 |
Professional fees | 792 | 583 |
Government grants | 791 | 263 |
Income taxes payable, net | 45 | 1,489 |
Facility related accruals | 290 | 140 |
Other | 1,032 | 1,074 |
Accrued expenses and other payables | $ 3,927 | $ 4,015 |
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, 2017USD ($)Vote$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / 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 | ||||||||||
Common stock shares, available for repurchase | 311,056 | ||||||||||
Purchase of Treasury Stock, shares | 0 | 180,013 | 508,931 | ||||||||
Purchase of Treasury Stock, per share value | $ / shares | $ 0 | $ 18.98 | $ 19.80 | ||||||||
Purchase of Treasury Stock | $ | $ 0 | $ 3,417 | $ 10,078 | ||||||||
Weighted average fair value of options and stock appreciation rights granted | $ / shares | $ 7.8 | ||||||||||
Weighted average fair value of options granted | $ / shares | $ 12.9 | ||||||||||
Number of shares, Options/SAR units granted | [1] | 0 | |||||||||
Total intrinsic value of options and stock appreciation rights exercised | $ | $ 15,188 | $ 12,282 | $ 8,960 | ||||||||
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) | |||||||||||
Class of Stock [Line Items] | |||||||||||
Aggregate number of stock issued by the company | 0 | 0 | |||||||||
Stock Appreciation Rights (SARs) | Maximum | |||||||||||
Class of Stock [Line Items] | |||||||||||
Options granted percentage | 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] | |||||||||||
Aggregate number of stock issued by the company | 288,197 | ||||||||||
Stock incentive plans vesting percentage | 33.33% | ||||||||||
Fair market value on grant date | $ / shares | $ 37.25 | ||||||||||
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 | 1,309,038 | ||||||||||
2011 Stock Incentive Plan | |||||||||||
Class of Stock [Line Items] | |||||||||||
Number of common shares authorized for issuance | 2,350,000 | ||||||||||
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 | 298,604 | 2,700,000 | |||||||||
Minimum working hours for eligibility of employee stock purchase plan | 20 hours | ||||||||||
Minimum working days for employee stock purchase plan | 5 months | ||||||||||
Rule 10b-18 | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common stock, additional number of shares authorized to repurchase | 1,000,000 | ||||||||||
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 | ||||||||||
Employee | Restricted Stock Units (RSUs) | |||||||||||
Class of Stock [Line Items] | |||||||||||
Award vesting period | 3 years | ||||||||||
Non-Employee | Restricted Stock Units (RSUs) | |||||||||||
Class of Stock [Line Items] | |||||||||||
Award vesting period | 1 year | ||||||||||
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 | 30,897 | ||||||||||
Board of Directors | 2003 Director Stock Option Plan | |||||||||||
Class of Stock [Line Items] | |||||||||||
Option granted | 13,000 | ||||||||||
Committee Chairperson | 2003 Director Stock Option Plan | |||||||||||
Class of Stock [Line Items] | |||||||||||
Option granted | 13,000 | ||||||||||
[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. |
Summary of Stock Option Activit
Summary of Stock Option Activity (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)$ / sharesshares | ||
Number of options and SAR units | ||
Number of shares outstanding, Beginning balance | shares | 1,455,908 | [1] |
Number of shares, Options/SAR units granted | shares | 0 | [1] |
Number of shares, Options/SAR units exercised | shares | (711,208) | [1] |
Number of shares, Options/SAR units forfeited or expired | shares | (15,683) | [1] |
Number of shares outstanding, Ending balance | shares | 729,017 | [1],[2] |
Number of shares exercisable, Ending balance | shares | 513,464 | [1],[3] |
Weighted-average exercise price | ||
Weighted-average exercise price, Beginning balance | $ / shares | $ 19.76 | |
Weighted average exercise price, Granted | $ / shares | 0 | |
Weighted average exercise price, Exercised | $ / shares | 19.80 | |
Weighted average exercise price, Forfeited or expired | $ / shares | 17.51 | |
Weighted average exercise price, Ending balance | $ / shares | 19.77 | [2] |
Weighted average exercise price, exercisable | $ / shares | $ 19.07 | [3] |
Weighted average remaining contractual term | ||
Weighted average remaining contractual life, Outstanding at end of period | 5 years 2 months 12 days | [2] |
Weighted average remaining contractual life, Exercisable at end of period | 4 years 8 months 12 days | [3] |
Aggregate intrinsic value | ||
Aggregate intrinsic value, Outstanding | $ | $ 19,229 | [2] |
Aggregate intrinsic value, Exercisable | $ | $ 13,906 | [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 662,075 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 465,223 shares of the Company's common stock issuable upon exercise. |
Summary of Stock Option Activ54
Summary of Stock Option Activity (Parenthetical) (Detail) - shares | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding amount of stock appreciation right units | [2] | 729,017 | [1] | 1,455,908 |
Exercisable amount of stock appreciation right units | [2],[3] | 513,464 | ||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding amount of stock appreciation right units | 662,075 | |||
Exercisable amount of stock appreciation right units | 465,223 | |||
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 662,075 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 465,223 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, 2017 | Dec. 31, 2016 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Outstanding, Number of options and SARs | [2] | 729,017 | [1] | 1,455,908 |
Outstanding, Weighted average remaining contractual life (years) | 5 years 2 months 12 days | |||
Outstanding, Weighted average exercise price | $ 19.77 | |||
Exercisable, Number of options and SARs | [2],[3] | 513,464 | ||
Exercisable, Weighted average remaining contractual life (years) | 4 years 8 months 12 days | |||
Exercisable, Weighted average exercise price | [3] | $ 19.07 | ||
14.16 - 18.62 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of exercise price, Lower limit | 14.16 | |||
Range of exercise price, Upper limit | $ 18.62 | |||
Outstanding, Number of options and SARs | 365,793 | |||
Outstanding, Weighted average remaining contractual life (years) | 4 years 2 months 12 days | |||
Outstanding, Weighted average exercise price | $ 15.64 | |||
Exercisable, Number of options and SARs | 290,193 | |||
Exercisable, Weighted average remaining contractual life (years) | 4 years | |||
Exercisable, Weighted average exercise price | $ 15.80 | |||
19.36 - 24.86 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of exercise price, Lower limit | 19.36 | |||
Range of exercise price, Upper limit | $ 24.86 | |||
Outstanding, Number of options and SARs | 204,724 | |||
Outstanding, Weighted average remaining contractual life (years) | 5 years 10 months 25 days | |||
Outstanding, Weighted average exercise price | $ 19.91 | |||
Exercisable, Number of options and SARs | 142,771 | |||
Exercisable, Weighted average remaining contractual life (years) | 5 years 9 months 18 days | |||
Exercisable, Weighted average exercise price | $ 19.65 | |||
27.17 - 31.51 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of exercise price, Lower limit | 27.17 | |||
Range of exercise price, Upper limit | $ 31.51 | |||
Outstanding, Number of options and SARs | 158,500 | |||
Outstanding, Weighted average remaining contractual life (years) | 6 years 10 months 25 days | |||
Outstanding, Weighted average exercise price | $ 29.13 | |||
Exercisable, Number of options and SARs | 80,500 | |||
Exercisable, Weighted average remaining contractual life (years) | 5 years 2 months 12 days | |||
Exercisable, Weighted average exercise price | $ 29.81 | |||
[1] | Due to the ceiling imposed on the SAR grants, the outstanding amount equals a maximum of 662,075 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 465,223 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, 2017$ / sharesshares | |
Number of RSUs | |
Number of RSUs, Unvested, Beginning balance | shares | 505,142 |
Number of RSUs granted | shares | 288,197 |
Number of RSUs vested | shares | (203,016) |
Number of RSUs forfeited | shares | (29,707) |
Number of RSUs, Unvested, Ending balance | shares | 560,616 |
Weighted average Grant-Date fair value | |
Weighted average Grant-Date fair value, Beginning balance | $ / shares | $ 21.59 |
Weighted average Grant-Date fair value, RSUs granted | $ / shares | 37.25 |
Weighted average Grant-Date fair value, RSUs vested | $ / shares | 21.85 |
Weighted average Grant-Date fair value, RSUs forfeited | $ / shares | 26.07 |
Weighted average Grant-Date fair value, Ending balance | $ / shares | $ 29.31 |
Fair Value of Outstanding Deriv
Fair Value of Outstanding Derivative Instruments (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Derivative [Line Items] | |
Derivative assets | $ 6 |
Foreign exchange forward contracts | Derivatives designated as cash flow hedging instruments | |
Derivative [Line Items] | |
Derivative assets | $ 6 |
Net Gains Reclassified from Acc
Net Gains Reclassified from Accumulated Other Comprehensive Income (Loss) (Detail) - Derivatives designated as cash flow hedging instruments - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain recognized in other comprehensive income (loss), Effective portion, Net, Total | $ 183 | $ 158 | $ 177 |
Gain reclassified from accumulated OCI into income, Effective portion, Net, Total | (189) | (161) | (104) |
Foreign exchange option contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain recognized in other comprehensive income (loss), Effective portion, Net, Total | 90 | 67 | 83 |
Gain reclassified from accumulated OCI into income, Effective portion, Net, Total | (90) | (67) | (31) |
Foreign exchange forward contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain recognized in other comprehensive income (loss), Effective portion, Net, Total | 93 | 91 | 94 |
Gain reclassified from accumulated OCI into income, Effective portion, Net, Total | $ (99) | $ (94) | $ (73) |
Derivatives and Hedging Activ59
Derivatives and Hedging Activities - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivatives designated as cash flow hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain recognized in income, net | $ 189 | $ 161 | $ 104 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 211,551 | $ 186,095 | $ 179,049 | |
Other comprehensive income (loss) before reclassifications | 80 | 57 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (169) | (135) | ||
Other comprehensive income (loss), net of taxes | (89) | (78) | 17 | |
Ending balance | 244,670 | 211,551 | 186,095 | |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (497) | (419) | (436) | |
Other comprehensive income (loss), net of taxes | (89) | (78) | 17 | |
Ending balance | (586) | [1] | (497) | (419) |
Unrealized gains (losses) on available-for-sale marketable securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (502) | (427) | ||
Other comprehensive income (loss) before reclassifications | (83) | (83) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (1) | 8 | ||
Other comprehensive income (loss), net of taxes | (84) | (75) | ||
Ending balance | (586) | (502) | (427) | |
Unrealized gains on cash flow hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 5 | 8 | ||
Other comprehensive income (loss) before reclassifications | 163 | 140 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (168) | (143) | ||
Other comprehensive income (loss), net of taxes | (5) | (3) | ||
Ending balance | $ 0 | $ 5 | $ 8 | |
[1] | Accumulated other comprehensive loss for the year ended December 31, 2017 is all from available-for-sale securities, net of taxes of $92. |
Details about Reclassification
Details about Reclassification out of Accumulated Other Comprehensive Income (Loss) Components (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of revenues | $ (6,953) | $ (6,086) | $ (5,424) |
Financial income, net | 3,026 | 2,039 | 1,069 |
Research and development | (40,385) | (30,838) | (28,113) |
Sales and marketing | (12,572) | (11,540) | (10,168) |
General and administrative | (10,488) | (8,567) | (8,184) |
Income before taxes on income | 18,899 | 16,425 | 7,381 |
Income tax expense (benefit) | 1,871 | 3,325 | 1,114 |
Net income | 17,028 | 13,100 | 6,267 |
Reclassification out of accumulated other comprehensive income (loss) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net income | 169 | 135 | 23 |
Reclassification out of accumulated other comprehensive income (loss) | Unrealized gains on cash flow hedges | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of revenues | 4 | 4 | |
Research and development | 162 | 132 | 91 |
Sales and marketing | 10 | 12 | 5 |
General and administrative | 13 | 13 | 8 |
Income before taxes on income | 189 | 161 | 104 |
Income tax expense (benefit) | 21 | 18 | 11 |
Net income | 168 | 143 | 93 |
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 | (9) | (78) | |
Income tax expense (benefit) | (1) | (1) | (8) |
Net income | $ 1 | $ (8) | $ (70) |
Geographic Information and Ma62
Geographic Information and Major Customer and Product Data - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017Segment | |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 87,507 | $ 72,653 | $ 59,499 |
United States | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 7,188 | 9,134 | 9,737 |
Europe, Middle East | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 11,007 | 10,901 | 7,064 |
Asia Pacific | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 69,312 | 52,618 | 42,698 |
China | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 41,059 | 30,030 | 29,982 |
S. Korea | |||
Segment Reporting Information [Line Items] | |||
Total revenues | $ 17,842 | $ 15,512 | $ 6,173 |
Long-Lived Assets by Geographic
Long-Lived Assets by Geographic Region (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | $ 6,926 | $ 4,805 |
Israel | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | 6,196 | 4,026 |
France | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | 383 | 365 |
United States | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | 185 | 240 |
Other | ||
Long-Lived Assets by Geographical Areas [Line Items] | ||
Long-lived assets | $ 162 | $ 174 |
Major Customers Data as Percent
Major Customers Data as Percentage of Total Revenues (Detail) - Revenue - Customer Concentration Risk | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Customer A | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of total revenues | 23.00% | 27.00% | 31.00% | |
Customer B | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of total revenues | 17.00% | 19.00% | 0.00% | [1] |
[1] | Less than 10% |
Information about Products and
Information about Products and Service (Detail) - Revenue - Product Concentration Risk | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DSP Products (DSP Cores and Platforms) | |||
Revenue from External Customer [Line Items] | |||
Percentage of total revenues | 86.00% | 84.00% | 82.00% |
Connectivity Products (Bluetooth, WiFi and SATA/SAS) | |||
Revenue from External Customer [Line Items] | |||
Percentage of total revenues | 14.00% | 16.00% | 18.00% |
Financial Income, Net (Detail)
Financial Income, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Interest income | $ 4,233 | $ 3,300 | $ 2,845 |
Loss on available-for-sale marketable securities, net | (9) | (78) | |
Amortization of premium on available-for-sale marketable securities, net | (1,179) | (1,064) | (1,111) |
Foreign exchange loss, net | (28) | (188) | (490) |
Accretion of Contingent Consideration | (97) | ||
Financial income, net | $ 3,026 | $ 2,039 | $ 1,069 |
Taxes on Income - Additional In
Taxes on Income - Additional Information (Detail) € in Thousands | Dec. 29, 2016 | Dec. 31, 2018 | Dec. 31, 2017USD ($) | Dec. 31, 2017ILS (₪) | Dec. 31, 2017EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Income Taxes [Line Items] | |||||||
Effective income tax rate | 35.00% | 35.00% | 35.00% | ||||
Transition income tax | $ 5,635,000 | ||||||
Consolidated revenue | 87,507,000 | $ 72,653,000 | $ 59,499,000 | ||||
Unrecognized tax benefits | 2,224,000 | 3,784,000 | $ 3,076,000 | ||||
Accrued interest related to unrecognized tax benefits | 0 | 130,000 | |||||
Accrue penalties related to unrecognized tax benefits | 0 | $ 0 | |||||
Decrease in unrecognized tax benefit from prior years tax audit | 3,003,000 | ||||||
Net operating loss carryforwards, federal | $ 12,541,000 | ||||||
Loss carryforwards begin to expire | 2,030 | 2,030 | 2,030 | ||||
Scenario Forecast | |||||||
Income Taxes [Line Items] | |||||||
Effective income tax rate | 21.00% | ||||||
Income not eligible for Approved Enterprise benefits | |||||||
Income Taxes [Line Items] | |||||||
Effective income tax rate | 24.00% | 24.00% | 24.00% | 25.00% | 26.50% | ||
Foreign tax jurisdictions | |||||||
Income Taxes [Line Items] | |||||||
Accrued interest related to unrecognized tax benefits | $ 130,000 | ||||||
Decrease in unrecognized tax benefit from prior years tax audit | $ 1,805,000 | ||||||
Israel Tax Authority | Intellectual Property | |||||||
Income Taxes [Line Items] | |||||||
Effective income tax rate | 12.00% | 12.00% | 12.00% | ||||
French Government | January 1, 2018 | Income up to 500,000 Euros | |||||||
Income Taxes [Line Items] | |||||||
Effective income tax rate | 28.00% | 28.00% | 28.00% | ||||
French Government | January 1, 2018 | Income above 500,000 Euros | |||||||
Income Taxes [Line Items] | |||||||
Effective income tax rate | 33.33% | 33.33% | 33.33% | ||||
French Government | Tax Year 2019 | Income up to 500,000 Euros | |||||||
Income Taxes [Line Items] | |||||||
Effective income tax rate | 28.00% | 28.00% | 28.00% | ||||
French Government | Tax Year 2019 | Income above 500,000 Euros | |||||||
Income Taxes [Line Items] | |||||||
Effective income tax rate | 31.00% | 31.00% | 31.00% | ||||
French Government | Tax Year 2020 | |||||||
Income Taxes [Line Items] | |||||||
Effective income tax rate | 28.00% | 28.00% | 28.00% | ||||
French Government | Tax Year 2021 | |||||||
Income Taxes [Line Items] | |||||||
Effective income tax rate | 26.50% | 26.50% | 26.50% | ||||
French Government | Tax Year 2022 | |||||||
Income Taxes [Line Items] | |||||||
Effective income tax rate | 25.00% | 25.00% | 25.00% | ||||
Dividends Paid to Foreign Companies | Israel Tax Authority | |||||||
Income Taxes [Line Items] | |||||||
Effective income tax rate | 4.00% | 4.00% | 4.00% | ||||
Maximum | Technological Preferred Enterprise | |||||||
Income Taxes [Line Items] | |||||||
Consolidated revenue | ₪ | ₪ 10,000,000,000 | ||||||
Maximum | French Government | January 1, 2018 | |||||||
Income Taxes [Line Items] | |||||||
Taxable income | € | € 500,000 | ||||||
Maximum | French Government | Tax Year 2019 | |||||||
Income Taxes [Line Items] | |||||||
Taxable income | € | € 500,000 | ||||||
Ireland | |||||||
Income Taxes [Line Items] | |||||||
Effective income tax rate | 12.50% | 12.50% | 12.50% | ||||
Open tax years | Subject to review by the applicable taxing authorities for the Irish subsidiary, are 2012 and subsequent years. | Subject to review by the applicable taxing authorities for the Irish subsidiary, are 2012 and subsequent years. | Subject to review by the applicable taxing authorities for the Irish subsidiary, are 2012 and subsequent years. | ||||
Net operating loss carryforwards, foreign | $ 61,608,000 | ||||||
Ireland | Interest income | |||||||
Income Taxes [Line Items] | |||||||
Effective income tax rate | 25.00% | 25.00% | 25.00% | ||||
Israel | |||||||
Income Taxes [Line Items] | |||||||
Open tax years | Subject to review by the applicable taxing authorities for the Israeli subsidiary, are 2014 and subsequent years. | Subject to review by the applicable taxing authorities for the Israeli subsidiary, are 2014 and subsequent years. | Subject to review by the applicable taxing authorities for the Israeli subsidiary, are 2014 and subsequent years. | ||||
Israel | Tax Year 2016 | |||||||
Income Taxes [Line Items] | |||||||
Effective income tax rate | 24.00% | ||||||
Israel | January 1, 2017 | |||||||
Income Taxes [Line Items] | |||||||
Effective income tax rate | 25.00% | ||||||
Israel | January 1, 2018 | |||||||
Income Taxes [Line Items] | |||||||
Effective income tax rate | 23.00% | ||||||
Israel | Foreign ownership exceeds 90% | |||||||
Income Taxes [Line Items] | |||||||
Effective income tax rate | 10.00% | 10.00% | 10.00% | ||||
Israel | Foreign ownership exceeds 49% | |||||||
Income Taxes [Line Items] | |||||||
Effective income tax rate | 20.00% | 20.00% | 20.00% | ||||
Israel | Minimum | |||||||
Income Taxes [Line Items] | |||||||
Tax exemption period, undistributed income | 2 years | 2 years | 2 years | ||||
Israel | Maximum | |||||||
Income Taxes [Line Items] | |||||||
Effective income tax rate | 24.00% | 24.00% | 24.00% | ||||
Tax exemption period, undistributed income | 10 years | 10 years | 10 years | ||||
France | |||||||
Income Taxes [Line Items] | |||||||
Effective income tax rate | 33.33% | 33.33% | 33.33% | ||||
Open tax years | Subject to review by the applicable taxing authorities for the French subsidiaries, are 2015 and subsequent years. | Subject to review by the applicable taxing authorities for the French subsidiaries, are 2015 and subsequent years. | Subject to review by the applicable taxing authorities for the French subsidiaries, are 2015 and subsequent years. | ||||
Net operating loss carryforwards, foreign | $ 6,807,000 | ||||||
California state | |||||||
Income Taxes [Line Items] | |||||||
Loss carryforwards begin to expire | 2,030 | 2,030 | 2,030 | ||||
Net operating loss carryforwards | $ 8,279,000 | ||||||
Development Area A | Israel Tax Authority | Intellectual Property | |||||||
Income Taxes [Line Items] | |||||||
Effective income tax rate | 7.50% | 7.50% | 7.50% |
Taxes on Income Comprised (Deta
Taxes on Income Comprised (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Domestic taxes, current | $ (227) | $ 6 | $ 115 |
Domestic taxes, deferred | 0 | 0 | 0 |
Foreign taxes, current | 3,473 | 3,932 | 2,212 |
Foreign taxes, deferred | (1,375) | (613) | (1,213) |
Taxes on income | 1,871 | 3,325 | 1,114 |
Income (loss) before taxes on income, domestic | (5,946) | (3,488) | (3,360) |
Income (loss) before taxes on income, foreign | 24,845 | 19,913 | 10,741 |
Income before taxes on income | $ 18,899 | $ 16,425 | $ 7,381 |
Reconciliation Between Effectiv
Reconciliation Between Effective Tax Rate and U.S. Statutory Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Income before taxes on income | $ 18,899 | $ 16,425 | $ 7,381 |
Theoretical tax at U.S. statutory rate | 6,426 | 5,585 | 2,510 |
Foreign income taxes at rates other than U.S. rate | (2,304) | (1,831) | (958) |
Approved and benefited enterprises benefits | (2,698) | (2,767) | (1,653) |
Subpart F | 737 | 538 | 434 |
Non-deductible items | 294 | 682 | 349 |
Non-taxable items | (529) | (505) | (481) |
Changes in uncertain tax position | (1,757) | 505 | |
Stock-based compensation expense | (1,503) | ||
Deemed mandatory repatriation | 1,916 | ||
Changes in valuation allowance | 2,076 | 1,212 | 839 |
Other, net | (787) | (94) | 74 |
Taxes on income | $ 1,871 | $ 3,325 | $ 1,114 |
Reconciliation Between Effect71
Reconciliation Between Effective Tax Rate and U.S. Statutory Rate (Parenthetical) (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Basic and diluted earnings per share amounts of the benefit resulting from the "Approved Enterprise" and "Benefited Enterprise" status | $ 0.12 | $ 0.13 | $ 0.08 |
Significant Components of Compa
Significant Components of Company's Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred tax assets | |||
Operating loss carryforward | $ 13,069 | $ 9,638 | |
Accrued expenses and deferred revenues | 1,057 | 1,128 | |
Temporary differences related to R&D expenses | 2,118 | 1,435 | |
Equity-based compensation | 1,956 | 2,685 | |
Tax credit carry forward | 1,866 | 1,237 | |
Other | 476 | 562 | |
Total gross deferred tax assets | 20,542 | 16,685 | |
Valuation allowance | (16,590) | (13,780) | |
Net deferred tax assets | 3,952 | 2,905 | |
Deferred tax liabilities | |||
Intangible assets | 275 | 621 | |
Other | 34 | 32 | |
Total deferred tax liabilities | 309 | 653 | |
Net deferred tax assets | [1] | $ 3,643 | $ 2,252 |
[1] | Net deferred taxes for the years ended December 31, 2016 and 2017 are all from foreign jurisdictions. |
Unrecognized Tax Benefits (Deta
Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Beginning Balance | $ 3,784 | $ 3,076 |
Additions for current year tax positions | 1,188 | 232 |
Additions for prior year's tax positions | 255 | 476 |
Decrease as a result of the completion of a tax audit for prior years | (3,003) | |
Ending Balance | $ 2,224 | $ 3,784 |
Commitments And Contingencies -
Commitments And Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitment And Contingencies [Line Items] | |||
Rent expenses | $ 1,417 | $ 1,259 | $ 1,094 |
Minimum | |||
Commitment And Contingencies [Line Items] | |||
Royalty expenses percentage | 3.00% | ||
Maximum | |||
Commitment And Contingencies [Line Items] | |||
Royalty expenses percentage | 3.50% | ||
IIA | |||
Commitment And Contingencies [Line Items] | |||
Maximum royalty payment as percentage of grants received | 100.00% | ||
Aggregate contingent royalty liability (including interest) | $ 22,254 | ||
IIA | Cost of Revenue | |||
Commitment And Contingencies [Line Items] | |||
Royalty expenses | $ 1,016 | $ 539 | $ 482 |
IIA | Minimum | |||
Commitment And Contingencies [Line Items] | |||
Royalty expenses percentage | 3.00% | ||
IIA | Maximum | |||
Commitment And Contingencies [Line Items] | |||
Royalty expenses percentage | 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, 2017USD ($) |
Other Commitments [Line Items] | |
2,018 | $ 6,631 |
2,019 | 1,759 |
2,020 | 372 |
2,021 | 40 |
Operating Leases, Future Minimum Payments Due, Total | 8,802 |
Minimum rental commitments for leasehold properties | |
Other Commitments [Line Items] | |
2,018 | 1,226 |
2,019 | 436 |
2,020 | 372 |
2,021 | 40 |
Operating Leases, Future Minimum Payments Due, Total | 2,074 |
Commitments for other lease obligations | |
Other Commitments [Line Items] | |
2,018 | 3,168 |
2,019 | 1,323 |
Operating Leases, Future Minimum Payments Due, Total | 4,491 |
Other purchase obligations | |
Other Commitments [Line Items] | |
2,018 | 2,237 |
Operating Leases, Future Minimum Payments Due, Total | $ 2,237 |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts (Detail) - Allowance for Doubtful Accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $ 25 | $ 25 | |
Additions | $ 0 | 0 | 0 |
Deduction | $ 25 | ||
Balance at end of period | $ 25 |