Mellanox Technologies 10-K 28 Feb 14 2013 FY Annual report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
In Billions, except Share data, unless otherwise specified	Dec. 31, 2013	Feb. 20, 2014	Jun. 28, 2013
Document and Entity Information	'	'	'
Entity Registrant Name	'Mellanox Technologies, Ltd.	'	'
Entity Central Index Key	'0001356104	'	'
Document Type	'10-K	'	'
Document Period End Date	31-Dec-13	'	'
Amendment Flag	'false	'	'
Current Fiscal Year End Date	'--12-31	'	'
Entity Well-known Seasoned Issuer	'Yes	'	'
Entity Voluntary Filers	'No	'	'
Entity Current Reporting Status	'Yes	'	'
Entity Filer Category	'Large Accelerated Filer	'	'
Entity Public Float	'	'	$1.70
Entity Common Stock, Shares Outstanding	'	44,317,238	'
Document Fiscal Year Focus	'2013	'	'
Document Fiscal Period Focus	'FY	'	'

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$63,164	$117,054
Short-term investments	263,528	302,593
Restricted cash	'	3,229
Accounts receivable, net	70,566	58,516
Inventories	35,963	43,318
Deferred taxes and other current assets	17,581	15,616
Total current assets	450,802	540,326
Property and equipment, net	70,815	62,375
Severance assets	10,630	8,907
Intangible assets, net	54,362	16,134
Goodwill	199,558	132,885
Deferred taxes and other long-term assets	20,613	10,419
Total assets	806,780	771,046
Current liabilities:	'	'
Accounts payable	29,964	37,431
Accrued liabilities	52,588	57,879
Deferred revenue	15,849	12,018
Capital lease liabilities, current	1,245	1,253
Total current liabilities	99,646	108,581
Accrued severance	13,418	11,821
Deferred revenue	9,045	8,366
Capital lease liabilities	1,600	2,835
Other long-term liabilities	17,091	11,635
Total liabilities	140,800	143,238
Commitments and Contingencies (Note 9)	'	'
Shareholders' equity	'	'
Ordinary shares: NIS 0.0175 par value, 137,143 shares authorized, 43,999 and 42,596 shares issued and outstanding at December 31, 2013 and 2012, respectively	185	178
Additional paid-in capital	550,795	488,365
Accumulated other comprehensive income	1,390	2,794
Retained earnings	113,610	136,471
Total shareholders' equity	665,980	627,808
Total liabilities and shareholders' equity	$806,780	$771,046

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (ILS)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, except Per Share data, unless otherwise specified
CONSOLIDATED BALANCE SHEETS	'	'
Ordinary shares, par value (in NIS per share)	0.0175	0.0175
Ordinary shares, shares authorized	137,143	137,143
Ordinary shares, shares issued	43,999	42,596
Ordinary shares, shares outstanding	43,999	42,596

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
CONSOLIDATED STATEMENTS OF OPERATIONS	'	'	'
Total revenues	$390,859	$500,799	$259,251
Cost of revenues	135,239	157,936	92,015
Gross profit	255,620	342,863	167,236
Operating expenses:	'	'	'
Research and development	168,721	138,946	92,508
Sales and marketing	70,318	61,068	40,366
General and administrative	36,918	24,541	21,769
Total operating expenses	275,957	224,555	154,643
Income (loss) from operations	-20,337	118,308	12,593
Other income, net	1,228	1,259	759
Income (loss) before taxes on income	-19,109	119,567	13,352
Provision for taxes on income	-3,752	-8,187	-3,375
Net income (loss)	($22,861)	$111,380	$9,977
Net income (loss) per share - basic (in dollars per share)	($0.53)	$2.70	$0.28
Net income (loss) per share - diluted (in dollars per share)	($0.53)	$2.54	$0.26
Shares used in computing income (loss) per share:	'	'	'
Basic (in shares)	43,421	41,308	36,263
Diluted (in shares)	43,421	43,901	38,562

CONSOLIDATED_STATEMENTS_OF_COM

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)	'	'	'
Net income (loss)	($22,861)	$111,380	$9,977
Other comprehensive income (loss), net of tax:	'	'	'
Change in unrealized gains/losses on available-for-sale securities, net (net of tax effect of $2, $0, $0)	142	-133	-109
Change in unrealized gains/losses on derivative contracts, net (net of tax effect of $28, $0, $0)	-1,546	4,091	-2,009
Total comprehensive income (loss), net of tax	($24,265)	$115,338	$7,859

CONSOLIDATED_STATEMENTS_OF_COM1

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)	'	'	'
Change in unrealized gains/losses on available-for-sale securities, tax effect	$2	$0	$0
Change in unrealized gains/losses on derivative contracts, tax effect	$28	$0	$0

CONSOLIDATED_STATEMENTS_OF_SHA

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $)	Total	Ordinary Shares	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings
In Thousands, except Share data, unless otherwise specified
Balance at Dec. 31, 2010	$281,690	$141	$265,481	$954	$15,114
Balance (in shares) at Dec. 31, 2010	'	34,231,204	'	'	'
Increase (Decrease) in Stockholders' Equity	'	'	'	'	'
Net income (loss)	9,977	'	'	'	9,977
Unrealized gains (losses) on available-for-sale securities, net of taxes	-109	'	'	-109	'
Unrealized gains (losses) on derivative contracts, net of taxes	-2,009	'	'	-2,009	'
Total comprehensive income (loss), net of tax	7,859	'	'	'	'
Share-based compensation	21,412	'	21,412	'	'
Exercise of share awards	14,000	7	13,993	'	'
Exercise of share awards (in shares)	'	1,810,582	'	'	'
Issuance of shares pursuant to employee share purchase plan	4,455	1	4,454	'	'
Issuance of shares pursuant to employee share purchase plan (in shares)	'	243,256	'	'	'
Issuance of shares in connection with public offering	104,217	16	104,201	'	'
Issuance of shares in connection with public offering (in shares)	'	3,450,000	'	'	'
Share-based compensation related to acquisitions	6,303	'	6,303	'	'
Income tax benefit from share options exercised	2,411	'	2,411	'	'
Balance at Dec. 31, 2011	442,347	165	418,255	-1,164	25,091
Balance (in shares) at Dec. 31, 2011	'	39,735,042	'	'	'
Increase (Decrease) in Stockholders' Equity	'	'	'	'	'
Net income (loss)	111,380	'	'	'	111,380
Unrealized gains (losses) on available-for-sale securities, net of taxes	-133	'	'	-133	'
Unrealized gains (losses) on derivative contracts, net of taxes	4,091	'	'	4,091	'
Total comprehensive income (loss), net of tax	115,338	'	'	'	'
Share-based compensation	35,019	'	35,019	'	'
Exercise of share awards	23,688	12	23,676	'	'
Exercise of share awards (in shares)	'	2,641,607	'	'	'
Issuance of shares pursuant to employee share purchase plan	6,275	1	6,274	'	'
Issuance of shares pursuant to employee share purchase plan (in shares)	'	219,613	'	'	'
Income tax benefit from share options exercised	5,141	'	5,141	'	'
Balance at Dec. 31, 2012	627,808	178	488,365	2,794	136,471
Balance (in shares) at Dec. 31, 2012	'	42,596,262	'	'	'
Increase (Decrease) in Stockholders' Equity	'	'	'	'	'
Net income (loss)	-22,861	'	'	'	-22,861
Unrealized gains (losses) on available-for-sale securities, net of taxes	142	'	'	142	'
Unrealized gains (losses) on derivative contracts, net of taxes	-1,546	'	'	-1,546	'
Total comprehensive income (loss), net of tax	-24,265	'	'	'	'
Share-based compensation	45,138	'	45,138	'	'
Exercise of share awards	5,304	5	5,299	'	'
Exercise of share awards (in shares)	'	1,154,672	'	'	'
Issuance of shares pursuant to employee share purchase plan	9,333	2	9,331	'	'
Issuance of shares pursuant to employee share purchase plan (in shares)	'	248,486	'	'	'
Income tax benefit from share options exercised	2,662	'	2,662	'	'
Balance at Dec. 31, 2013	$665,980	$185	$550,795	$1,390	$113,610
Balance (in shares) at Dec. 31, 2013	'	43,999,420	'	'	'

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Cash flows from operating activities:	'	'	'
Net income (loss)	($22,861)	$111,380	$9,977
Adjustments to reconcile net income (loss) to net cash provided by operating activities:	'	'	'
Depreciation and amortization	35,886	23,868	19,745
Deferred income taxes	-1,240	-3,454	-228
Share-based compensation	45,138	35,019	21,412
Gain on investments	-1,219	-896	-15
Excess tax benefit from share-based compensation	-2,662	-5,141	-2,411
Changes in assets and liabilities, net of effect of acquisitions:	'	'	'
Accounts receivable	-8,870	-10,301	-15,899
Inventories	9,264	-19,436	-8,639
Prepaid expenses and other assets	1,414	-3,239	-513
Accounts payable	-4,447	3,430	21,065
Accrued liabilities and other liabilities	1,599	51,259	18,645
Net cash provided by operating activities	52,002	182,489	63,139
Cash flows from investing activities:	'	'	'
Purchase of severance-related insurance policies	-849	-783	-832
Purchase of short-term investments	-200,377	-328,998	-45,600
Proceeds from sales of short-term investments	122,997	14,860	149,889
Proceeds from maturities of short-term investments	117,806	64,683	12,128
Purchase of property and equipment	-30,911	-30,544	-24,680
Decrease (Increase) in restricted cash deposit	3,468	1,327	-1,700
Purchase of intangible assets	-7,440	'	'
Purchase of equity investments in private companies	-3,123	-1,424	'
Net cash used in investing activities	-121,948	-280,879	-114,499
Cash flows from financing activities:	'	'	'
Proceeds from public offering, net	'	'	104,201
Principal payments on capital lease obligations	-1,243	-918	-459
Proceeds from exercise of share awards	14,637	29,963	18,471
Excess tax benefit from share-based compensation	2,662	5,141	2,411
Net cash provided by financing activities	16,056	34,186	124,624
Net (decrease) increase in cash and cash equivalents	-53,890	-64,204	73,264
Cash and cash equivalents at beginning of period	117,054	181,258	107,994
Cash and cash equivalents at end of period	63,164	117,054	181,258
Supplemental disclosures of cash flow information	'	'	'
Interest paid	57	'	'
Income taxes paid	1,305	852	469
Supplemental disclosure of noncash investing and financing activities	'	'	'
Software acquired under capital leases	'	4,428	563
Unpaid property and equipment	2,226	3,869	'
Inventory capitalization	1,837	1,073	'
Vested share awards issued in connection with the Voltaire acquisition	'	'	$6,303

CONSOLIDATED_STATEMENTS_OF_CAS1

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $)	0 Months Ended	12 Months Ended	0 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Aug. 15, 2013	Dec. 31, 2013	Jul. 02, 2013	Dec. 31, 2013	Dec. 31, 2011
	Kotura, Inc.	Kotura, Inc.	IPtronics A/S	IPtronics A/S	Voltaire Ltd
Cash acquired	$101	$101	$2,077	$2,077	$3,961

THE_COMPANY_AND_SUMMARY_OF_SIG

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:	12 Months Ended
	Dec. 31, 2013
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:	'
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:	'
	NOTE 1—THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
	Company
	Mellanox Technologies, Ltd., an Israeli corporation, (the "Company" or "Mellanox") was incorporated and commenced operations in March 1999. Mellanox is a supplier of high-performance interconnect products for computing, storage and communications applications.
	Principles of presentation
	The consolidated financial statements include the Company's accounts as well as those of its wholly owned subsidiaries after the elimination of all significant intercompany balances and transactions.
	On July 1, 2013, the Company completed its acquisition of a privately held company, IPtronics A/S ("IPtronics"), and on August 15, 2013, the Company completed its acquisition of a privately held company, Kotura, Inc. ("Kotura"). The consolidated financial statements include the results of operations of IPtronics and Kotura commencing as of the their respective acquisition dates.
	In February 2011, the Company completed its acquisition of Voltaire Ltd. ("Voltaire"), an Israeli-based public company. The consolidated financial statements include the results of operations of Voltaire commencing as of the acquisition date.
	Risks and uncertainties
	The Company is subject to all of the risks inherent in a company which operates in the dynamic and competitive semiconductor industry. Significant changes in any of the following areas could have a materially adverse impact on the Company's financial position and results of operations; unpredictable volume or timing of customer orders; ordered product mix; the sales outlook and purchasing patterns of the Company's customers based on consumer demands and general economic conditions; loss of one or more of the Company's customers; decreases in the average selling prices of products or increases in the average cost of finished goods; the availability, pricing and timeliness of delivery of components used in the Company's products; reliance on a limited number of subcontractors to manufacture, assemble, package and production test the Company's products; the Company's ability to successfully develop, introduce and sell new or enhanced products in a timely manner; product obsolescence and the Company's ability to manage product transitions; the timing of announcements or introductions of new products by the Company's competitors, and the Company's ability to successfully integrate acquired businesses.
	Use of estimates
	The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America, ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of net revenue and expenses in the reporting periods. The Company regularly evaluates estimates and assumptions related to revenue recognition, allowances for doubtful accounts, sales returns and allowances, investment valuation, warranty reserves, inventory reserves, share-based compensation expense, long-term asset valuations, goodwill and purchased intangible asset valuation, hedge effectiveness, deferred income tax asset valuation, uncertain tax positions, litigation and other loss contingencies. These estimates and assumptions are based on current facts, historical experience and various other factors that the Company believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of revenue, costs and expenses that are not readily apparent from other sources. The actual results that the Company experiences may differ materially and adversely from the Company's original estimates. To the extent there are material differences between the estimates and actual results, the Company's future results of operations will be affected.
	Cash and cash equivalents
	The Company considers all highly liquid investments with a maturity of three months or less from the date of purchase to be cash equivalents. Cash and cash equivalents consist of cash on deposit with banks, money market funds, U.S. government agency discount notes, foreign government bonds, corporate bonds and commercial paper.
	Short-term investments
	The Company's short-term investments are classified as available-for-sale securities and are reported at fair value. Unrealized gains or losses are recorded in shareholders' equity and included in other comprehensive income ("OCI"). The Company views its available-for-sale portfolio as available for use in its current operations. Accordingly, the Company has classified all investments in available for sale securities with readily available markets as short-term, even though the stated maturity date may be one year or more beyond the current balance sheet date, because of the intent and ability to sell these securities prior to maturity to meet liquidity needs or as part of a risk management program.
	Restricted cash and deposits
	The Company maintains certain cash amounts restricted as to withdrawal or use. It maintained a balance of $0.6 million at December 31, 2012, that represented tenants' security deposits restricted due to the tenancy agreements, and $2.6 million at December 31, 2012, that represented security deposits restricted due to foreign exchange management agreements with two banks.
	The Company also maintains certain cash amounts classified as other long-term assets which are restricted as to withdrawal or use over long term. The Company maintained a balance of long-term restricted cash in amount of $3.5 million and $3.4 million at December 31, 2013 and December 31, 2012, respectively.
	Fair value of financial instruments
	The Company's financial instruments consist of cash equivalents, short-term investments and foreign currency derivative contracts. The fair value of a financial instrument is the amount that would be received in an asset sale or paid to transfer a liability in an orderly transaction between unaffiliated market participants. The Company believes that the carrying amounts of the financial instruments approximate their respective fair values. The Company regularly reviews its investment portfolio to identify and evaluate investments that have indications of possible impairment. Factors considered in determining whether a loss is temporary include: the length of time and extent to which fair value has been lower than the cost basis; the financial condition, credit quality and near-term prospects of the issuer; and whether it is more likely than not that the Company will be required to sell the security prior to any anticipated recovery in fair value. When there is no readily available market data, fair value estimates may be made by the Company, which may not necessarily represent the amounts that could be realized in a current or future sale of these assets.
	Derivatives
	The Company recognizes derivative instruments as either assets or liabilities and measures those instruments at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. The Company enters into derivative contracts designated as cash flow hedges. For a derivative instrument designated as a cash flow hedge, the effective portion of the derivative's gain or loss is initially reported as a component of accumulated OCI, and subsequently reclassified into earnings when the hedged exposure affects earnings.
	The Company uses derivative instruments primarily to manage exposures to foreign currency. The Company enters into derivative contracts to manage its exposure to changes in the exchange rate of the NIS against the U.S. dollar. The Company's primary objective in entering these arrangements is to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. The program is not designated for trading or speculative purposes. The Company's derivative contracts expose the Company to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. The Company seeks to mitigate such risk by limiting its counterparties to major financial institutions and by spreading the risk across a number of major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored on an ongoing basis.
	The Company uses derivative contracts designated as cash flow hedges to hedge a substantial portion of forecasted operating expenses in NIS. The gain or loss on the effective portion of a cash flow hedge is initially reported as a component of OCI and subsequently reclassified into operating expenses in the same period in which the hedged operating expenses are recognized, or reclassified into other income, net, if the hedged transaction becomes probable of not occurring. Any gain or loss after a hedge is de-designated because it is no longer probable of occurring or related to an ineffective portion of a hedge, as well as any amount excluded from the Company's hedge effectiveness, is recognized as other income, net immediately.
	Concentration of credit risk
	Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents, short-term investments and accounts receivable. Cash equivalents and short-term investments balances are maintained with high quality financial institutions, the composition and maturities of which are regularly monitored by management. The Company's accounts receivable are derived from revenue earned from customers located in North America, Europe and Asia. The Company performs ongoing credit evaluations of its customers' financial condition and, generally, requires no collateral from its customers. The Company maintains an allowance for doubtful accounts receivable based upon the expected collectibility of accounts receivable. The Company reviews its allowance for doubtful accounts quarterly by assessing individual accounts receivable over a specific aging and amount, and all other balances based on historical collection experience and an economic risk assessment. If the Company determines that a specific customer is unable to meet its financial obligations to the Company, the Company provides an allowance for credit losses to reduce the receivable to the amount management reasonably believes will be collected.
	The following table summarizes the revenues from customers (including original equipment manufacturers) in excess of 10% of the total revenues:
		Year Ended
		December 31,
		2013			2012			2011
	IBM		17	%		19	%		17	%
	Hewlett-Packard		13	%		20	%		19	%
	The following table summarizes accounts receivable balances in excess of 10% of total accounts receivable:
		December 31,			December 31,
		2013			2012
	IBM		10	%		21	%
	Hewlett Packard		11	%		*
	*
	Less than 10%
	Inventory
	Inventory includes finished goods, work-in-process and raw materials. Inventory is stated at the lower of cost (principally standard cost which approximates actual cost on a first-in, first-out basis) or market value. Reserves for potentially excess and obsolete inventory are made based on management's analysis of inventory levels, future sales forecasts and market conditions. Once established, the original cost of the Company's inventory less the related inventory reserve represents the new cost basis of such products.
	Property and equipment
	Property and equipment are stated at cost, net of accumulated depreciation. Depreciation and amortization is generally calculated using the straight-line method over the estimated useful lives of the related assets, which is three to five years for computers, software license rights and other electronic equipment, and seven to fifteen years for office furniture and equipment. Leasehold improvements and assets acquired under capital leases are amortized on a straight-line basis over the term of the lease, or the useful lives of the assets, whichever is shorter. Maintenance and repairs are charged to expense as incurred, and improvements are capitalized. When assets are retired or otherwise disposed of, the cost and accumulated depreciation or amortization are removed from the accounts and any resulting gain or loss is reflected in the results of operations in the period realized.
	The Company incurs costs for the fabrication of masks used by its contract manufacturers to manufacture wafers that incorporate its products. The Company capitalizes the costs of fabrication masks that are reasonably expected to be used during production manufacturing. These amounts are included within property and equipment and are generally depreciated over a period of 12 months to cost of revenue. If it does not reasonably expect to use the fabrication mask during production manufacturing, it expenses the related mask costs to research and development in the period in which the costs are incurred.
	Business combinations
	The Company accounts for business combinations using the acquisition method of accounting. The Company determines the recognition of intangible assets based on the following criteria: (i) the intangible asset arises from contractual or other rights; or (ii) the intangible asset is separable or divisible from the acquired entity and capable of being sold, transferred, licensed, returned or exchanged. The Company allocates the purchase price of business combinations to the tangible assets, liabilities and intangible assets acquired, including in-process research and development ("IPR&D"), based on their estimated fair values. The excess purchase price over those fair values is recorded as goodwill. The process of estimating the fair values requires significant estimates, especially with respect to intangible assets. Critical estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from customer contracts, customer lists and distribution agreements, acquired developed technologies, expected costs to develop IPR&D into commercially viable products, estimated cash flows from projects when completed and discount rates. The Company estimates fair value based upon assumptions that are believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Other estimates associated with the accounting for acquisitions may change as additional information becomes available regarding the assets acquired and liabilities assumed.
	Goodwill and intangible assets
	Goodwill represents the excess of the cost of acquired businesses over the fair market value of their identifiable net assets. The Company conducts a goodwill impairment qualitative assessment during the fourth quarter of each fiscal year or more frequently if facts and circumstances indicate that goodwill may be impaired. The goodwill impairment qualitative assessment requires the Company to perform an assessment to determine if it is more likely than not that the fair value of the business is less than its carrying amount. The qualitative assessment considers various factors, including the macroeconomic environment, industry and market specific conditions, market capitalization, stock price, financial performance, earnings multiples, budgeted-to-actual revenue performance from prior year, gross margin and cash flow from operating activities and issues or events specific to the business. If adverse qualitative trends are identified that could negatively impact the fair value of the business, the Company performs a "two step" goodwill impairment test. The "step one" goodwill impairment test requires the Company to estimate the fair value of its business and certain assets and liabilities. "Step two" of the process is only performed if a potential impairment exists in "step one" and involves determining the difference between the fair value of the reporting unit's net assets other than goodwill to the fair value of the reporting unit. If the difference is less than the net book value of goodwill, an impairment exists and is recorded. As of December 31, 2013, the Company's assessment of goodwill impairment indicated that goodwill was not impaired.
	Intangible assets primarily represent acquired intangible assets including developed technology, customer relationships and IPR&D. The Company amortizes its intangible assets over their useful lives using a method that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise used, or, if that pattern cannot be reliably determined, using a straight-line amortization method. The Company capitalizes IPR&D projects acquired as part of a business combination. On completion of each project, IPR&D assets are reclassified to developed technology and amortized over their estimated useful lives. If any of the IPR&D projects are abandoned, the Company would impair the related IPR&D asset.
	Intangible assets are tested for impairment when indicators of impairment exist. The Company first assesses qualitative factors to determine if it is more likely than not that an indefinite-lived intangible asset is impaired and whether it is necessary to perform a quantitative impairment test. The qualitative assessment considers various factors, including reductions in demand, the abandonment of IPR&D projects or significant economic slowdowns in the semiconductor industry and macroeconomic environment. If adverse qualitative trends are identified that could negatively impact the fair value of the asset, then quantitative impairment tests are performed to compare the carrying value of the asset to its undiscounted expected future cash flows. If this test indicates that there is impairment, the impaired asset is written down to fair value, which is typically calculated using: (i) quoted market prices or (ii) discounted expected future cash flows utilizing an appropriate discount rate. Impairment is based on the excess of the carrying amount over the fair value of those assets. As of December 31, 2013, the Company's assessment of intangibles indicated that intangible assets were not impaired.
	Investments
	The Company has equity investments in privately-held companies. These investments are recorded at cost reduced by any impairment write-downs because the Company does not have the ability to exercise significant influence over the operating and financial policies of the company. The investments are included in other long-term assets on the accompanying balance sheets. The Company monitors the investments and if facts and circumstances indicate an investment may be impaired, then it conducts an impairment test of its investment. To determine if the investment is recoverable, it reviews the privately-held company's revenue and earnings trends relative to pre-defined milestones and overall business prospects, the general market conditions in its industry and other factors related to its ability to remain in business, such as liquidity and receipt of additional funding.
	Impairment of long-lived assets
	Long-lived assets include equipment and furniture and fixtures. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. If the sum of the expected future cash flows (undiscounted and without interest charges) from the long-lived assets is less than the carrying amount of such assets, an impairment loss would be recognized, and the assets would be written down to their estimated fair values. The Company reviews for possible impairment on a regular basis.
	Revenue recognition
	The Company recognizes revenue from the sales of products when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the price is fixed or determinable; and (4) collection is reasonably assured. The Company uses a binding purchase order or a signed agreement as evidence of an arrangement. Delivery occurs when goods are shipped and title and risk of loss transfer to the customer. The Company's standard arrangement with its customers typically includes freight-on-board shipping point, no right of return and no customer acceptance provisions. The customer's obligation to pay and the payment terms are set at the time of shipment and are not dependent on the subsequent resale of the product. The Company determines whether collectibility is probable on a customer-by-customer basis. When assessing the probability of collection, the Company considers the number of years the customer has been in business and the history of the Company's collections. Customers are subject to a credit review process that evaluates the customers' financial positions and ultimately their ability to pay. If it is determined at the outset of an arrangement that collection is not probable, no product is shipped and no revenue is recognized unless cash is received in advance.
	The Company maintains inventory, or hub arrangements with certain customers. Pursuant to these arrangements the Company delivers products to a customer or a designated third party warehouse based upon the customer's projected needs, but does not recognize product revenue unless and until the customer reports it has removed the Company's product from the warehouse to be incorporated into its end products.
	Multiple Element Arrangements Excluding Software
	For revenue arrangements that contain multiple deliverables, judgment is required to properly identify the accounting units of the transactions and to determine the manner in which revenue should be allocated among the accounting units. Moreover, judgment is used in interpreting the commercial terms and determining when all criteria of revenue recognition have been met for each deliverable in order for revenue recognition to occur in the appropriate accounting period. While changes in the allocation of the arrangement consideration between the units of accounting will not affect the amount of total revenue recognized for a particular sales arrangement, any material changes in these allocations could impact the timing of revenue recognition, which could affect its results of operations. When the Company enters into an arrangement that includes multiple elements, the allocation of value to each element is derived based on management's best estimate of selling price when vendor specific evidence or third party evidence is unavailable.
	Multiple Element Arrangements Including Software
	For multiple element arrangements that include a combination of hardware, software and services, such as post-contract customer support, the arrangement consideration is first allocated among the accounting units before revenue recognition criteria are applied. If an arrangement includes undelivered elements that are not essential to the functionality of the delivered elements, the Company defers revenue for the undelivered elements based on their fair value. The fair value for undelivered software elements is based on vendor specific evidence. If the undelivered elements are essential to the functionality of the delivered elements, no revenue is recognized. The revenues from fixed-price support or maintenance contracts, including extended warranty contracts and software post-contract customer support agreements are recognized ratably over the contract period and the costs associated with these contracts are recognized as incurred.
	Distributor Revenue
	A portion of the Company's sales are made to distributors under agreements which contain a limited right to return unsold product and price protection provisions. The Company recognizes revenue from these distributors based on the sell-through method using inventory and point of sale information provided by the distributor. Additionally, the Company maintains accruals and allowances for price protection and cooperative marketing programs. The Company classifies the costs of these programs based on the identifiable benefit received as either a reduction of revenue, a cost of revenues or an operating expense.
Deferred Revenue and Income
The Company defers revenue and income when advance payments are received from customers before performance obligations have been completed and/or services have been performed.
Shipping and Handling
Costs incurred for shipping and handling expenses to customers are recorded as cost of revenues. To the extent these amounts are billed to the customer in a sales transaction, the Company records the shipping and handling fees as revenue.
Product warranty
The Company typically offers a limited warranty for its products for periods up to three years. The Company accrues for estimated returns of defective products at the time revenue is recognized based on historical activity. The determination of these accruals requires the Company to make estimates of the frequency and extent of warranty activity and estimated future costs to either replace or repair the products under warranty. If the actual warranty activity and/or repair and replacement costs differ significantly from these estimates, adjustments to record additional cost of revenues may be required in future periods. Changes in the Company's liability for product warranty during the years ended December 31, 2013 and 2012 are as follows:
	December 31,
	2013			2012
	(In thousands)
Balance, beginning of the period	$	4,447		$	1,097
New warranties issued during the period		9,334			5,697
Reversal of warranty reserves		(1,332	)		(813	)
Settlements during the period		(8,251	)		(1,534	)
Balance, end of the period	$	4,198		$	4,447
Research and development
Costs incurred in research and development are charged to operations as incurred. The Company expenses all costs for internally developed patents as incurred. Total research and development operating expenses reported in the Consolidated Statement of Operations for the years ended December 31, 2013, 2012 and 2011 were $168.7 million, $138.9 million and $92.5 million, respectively.
Advertising
Costs related to advertising and promotion of products are charged to sales and marketing expense as incurred. Advertising expense was approximately $0.9 million, $1.1 million and $0.4 million for the years ended December 31, 2013, 2012 and 2011, respectively.
Share-based compensation
The Company accounts for share-based compensation expense based on the estimated fair value of the equity awards as of the grant dates. The fair value of RSUs is based on the closing market price of our ordinary shares on the date of grant. The Company estimates the fair value of share option awards using the Black-Scholes option valuation model, which requires the input of subjective assumptions including the expected share price volatility and the calculation of expected term, as well as the fair value of the underlying ordinary share on the date of grant, among other inputs.
The Company bases its estimate of expected volatility on the of historical volatility of the Company shares. The Company calculates the expected term of its option awards using the simplified method as prescribed by the authoritative guidance. The expected term for newly granted awards is approximately 6.25 years.
Share compensation expense is recognized on a straight-line basis over each recipient's requisite service period, which is generally the vesting period. Share-based compensation expense is recorded net of estimated forfeitures. Forfeitures are estimated at the time of grant and this estimate is revised, if necessary, in subsequent periods. If the actual number of forfeitures differs from the estimate, adjustments may be required to share-based compensation expense in future periods.
Comprehensive income (loss)
Accumulated other comprehensive income (loss), net of tax on the consolidated balance sheets at December 31, 2013 and 2012, represents the accumulated unrealized gains (losses) on available-for-sale securities, and the accumulated unrealized gains (losses) related to derivative instruments accounted for as cash flow hedges. The amount of income tax expense allocated to unrealized gain on available-for-sale securities and derivative instruments was not material at December 31, 2013 and 2012.
Foreign currency translation
The Company uses the U.S. dollar as its functional currency. Foreign currency assets and liabilities are remeasured into U.S. dollars at the end-of-period exchange rates except for non-monetary assets and liabilities, which are remeasured at historical exchange rates. Revenue and expenses are remeasured each day at the exchange rate in effect on the day the transaction occurred, except for those expenses related to balance sheet amounts, which are remeasured at historical exchange rates. Gains or losses from foreign currency transactions are included in the Consolidated Statements of Operations as part of "Other income (loss), net."
Net income per share
Basic and diluted net income per share are computed by dividing the net income for the period by the weighted average number of ordinary shares outstanding during the period. The calculation of diluted net income per share excludes potential ordinary shares if the effect is anti-dilutive. Potential ordinary shares are comprised of incremental ordinary shares issuable upon the exercise of share options.
The following table sets forth the computation of basic and diluted net income per share for the periods indicated:
	Year Ended December 31,
	2013			2012			2011
	(In thousands, except per share
	data)
Net income (loss)	$	(22,861	)	$	111,380		$	9,977
Basic and diluted shares:
Weighted average ordinary shares outstanding used to compute basic net income (loss) per share		43,421			41,308			36,263
Dilutive effect of employee share option and purchase plan		—			2,593			2,299
Shares used to compute diluted net income (loss) per share		43,421			43,901			38,562
Net income (loss) per share—basic	$	(0.53	)	$	2.7		$	0.28
Net income (loss) per share—diluted	$	(0.53	)	$	2.54		$	0.26
The Company excluded 0.8 million, 0.3 million and 0.5 million outstanding shares for the years ended December 31, 2013, 2012 and 2011, respectively, from the computation of diluted net income per share because including them would have had an anti-dilutive effect.
Segment reporting
The Company has one reportable segment: the development, manufacturing, marketing and sales of interconnect products.
Income taxes
To prepare the Company's consolidated financial statements, the Company estimates its income taxes in each of the jurisdictions in which it operates. This process involves estimating the Company's actual tax exposure together with assessing temporary differences resulting from the differing treatment of certain items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included within the Company's consolidated balance sheet.
The Company must also make judgments regarding the realizability of deferred tax assets. The carrying value of the Company's net deferred tax assets is based on its belief that it is more likely than not that the Company will generate sufficient future taxable income in certain jurisdictions to realize these deferred tax assets. A valuation allowance has been established for deferred tax assets which the Company does not believe meet the "more likely than not" criteria. The Company's judgments regarding future taxable income may change due to changes in market conditions, changes in tax laws, tax planning strategies or other factors. If the Company's assumptions and consequently its estimates change in the future, the valuation allowances it has established may be increased or decreased, resulting in a respective increase or decrease in income tax expense. The Company's effective tax rate is highly dependent upon the geographic distribution of its worldwide earnings or losses, the tax regulations and tax holidays in each geographic region, the availability of tax credits and carryforwards, and the effectiveness of its tax planning strategies.
Income tax positions must meet a more-likely-than-not recognition threshold to be recognized. Income tax positions that previously failed to meet the more-likely-than-not threshold are recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not threshold are derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits within the consolidated statements of income as income tax expense.
Recent accounting pronouncements
Effective January 1, 2013, the Company adopted the authoritative guidance, issued by the Financial Accounting Standards Board ("FASB") in February 2013, related to reclassifications out of accumulated other comprehensive income ("OCI"). Under this guidance, an entity is required to report, in one place, information about reclassifications out of accumulated OCI and changes in its accumulated OCI balances. For significant items reclassified out of accumulated OCI to net income in their entirety in the same reporting period, reporting is required about the effect of the reclassifications on the respective line items in the statement where net income is presented. For items that are not reclassified to net income in their entirety in the same reporting period, a cross reference to other disclosures currently required under GAAP is required in the notes to the financial statements. The Company elected to present the information in the notes to the Company's unaudited condensed consolidated financial statements. The adoption of this guidance had no impact on the Company's consolidated financial statements.
In July 2013, the FASB issued authoritative guidance which requires that an unrecognized tax benefit, or portion of an unrecognized tax benefit, be presented as a reduction of a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward. If an applicable deferred tax asset is not available or a company does not expect to use the applicable deferred tax asset, the unrecognized tax benefit should be presented as a liability in the financial statements and should not be combined with an unrelated deferred tax asset. This guidance is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date; however, retrospective application is permitted. The Company will provide the required disclosures beginning in the first quarter of fiscal year 2014 and does not expect the adoption of this guidance to have a significant impact on its consolidated results of operations and financial condition.

BALANCE_SHEET_COMPONENTS

BALANCE SHEET COMPONENTS:	12 Months Ended
	Dec. 31, 2013
BALANCE SHEET COMPONENTS:	'
BALANCE SHEET COMPONENTS:	'
	NOTE 2—BALANCE SHEET COMPONENTS:
		December 31,			December 31,
		2013			2012
		(In thousands)
	Accounts receivable, net:
	Accounts receivable	$	71,205		$	59,155
	Less: allowance for doubtful accounts		(639	)		(639	)
		$	70,566		$	58,516
	Inventories:
	Raw materials	$	4,385		$	6,240
	Work-in-process		12,187			4,667
	Finished goods		19,391			32,411
		$	35,963		$	43,318
	Deferred taxes and other current assets:
	Prepaid expenses	$	5,929		$	5,346
	Derivative contracts receivable		1,396			2,942
	Deferred taxes		7,336			3,813
	VAT receivable		1,900			3,000
	Other		1,020			515
		$	17,581		$	15,616
	Property and equipment, net:
	Computer equipment and software	$	91,368		$	80,203
	Furniture and fixtures		3,809			3,890
	Leasehold improvements		31,608			26,590
			126,785			110,683
	Less: Accumulated depreciation and amortization		(55,970	)		(48,308	)
		$	70,815		$	62,375
	Deferred taxes and other long-term assets:
	Equity investments in private companies	$	7,548		$	4,424
	Deferred taxes		7,155			2,083
	Restricted cash		3,514			3,388
	Other assets		2,396			524
		$	20,613		$	10,419
	Accrued liabilities:
	Payroll and related expenses	$	29,350		$	37,067
	Accrued expenses		12,315			10,104
	Product warranty liability		4,198			4,447
	Other		6,725			6,261
		$	52,588		$	57,879
	Other long-term liabilities:
	Income tax payable	$	13,026		$	8,838
	Deferred rent		3,072			2,797
	Other		993			—
		$	17,091		$	11,635

BUSINESS_COMBINATION

BUSINESS COMBINATION:	12 Months Ended
	Dec. 31, 2013
BUSINESS COMBINATION:	'
BUSINESS COMBINATION:	'
	NOTE 3—BUSINESS COMBINATION:
	On July 1, 2013, the Company completed its acquisition of a privately held company, IPtronics A/S. On August 15, 2013, the Company completed its acquisition of a privately held company, Kotura, Inc. The Company's primary reasons for the IPtronics and Kotura acquisitions was to enhance its ability to deliver cost-effective, high-speed networks with next generation optical connectivity at 100Gb/s and beyond. The acquisitions also enhanced the Company's engineering team and added a strong patent portfolio in the field of silicon photonics.
	The following table presents details of the purchase consideration related to each acquisition:
	Company Acquired	Cash			Cash Assumed			Net Cash Paid
		Consideration
		Paid
		(in thousands)
	IPtronics	$	44,925		$	2,077		$	42,848
	Kotura.		80,772			101			80,671
	Total	$	125,697		$	2,178		$	123,519
	In conjunction with the IPtronics acquisition, the Company issued 60,508 restricted stock units ("RSUs") of the Company's ordinary shares with an aggregate value of $3.0 million in exchange for RSUs of IPtronics. The fair value of the RSUs is based on the closing price of the Company's ordinary shares on July 1, 2013 of $49.92. The RSU grants will result in compensation expense of $3.0 million which will be recognized over the vesting period of four years.
	In conjunction with the Kotura acquisition, the Company issued options to purchase 31,653 shares of the Company's ordinary shares and 145,425 RSUs of the Company's ordinary shares with an aggregate value of $6.4 million, in exchange for options to purchase shares and RSUs of Kotura. This grant will result in compensation expense of $6.4 million which will be recognized over the remaining vesting period of these equity awards, which ranges from one day to four years.
	The fair value of the exchanged options was determined using a Black-Scholes valuation model with the following weighted-average assumptions: expected life of 4.72 years, volatility of 57.5%, risk-free interest rate of 1.54%, and dividend yield of zero. The fair value of the exchanged RSUs was determined based on the per share value of the underlying Company ordinary shares of $42.19 per share at August 15, 2013.
	The Company accounted for both transactions using the acquisition method, and accordingly, the consideration has been allocated to tangible and intangible assets acquired and liabilities assumed on the basis of their respective estimated fair values on the respective acquisition date. The Company's preliminary allocation of the total purchase price for each transaction is summarized below:
		IPtronics			Kotura			Total
		(in thousands)
	Current assets, net of cash	$	2,173		$	5,252		$	7,425
	Other long-term assets		974			10,603			11,577
	Intangible assets		17,495			27,604			45,099
	Goodwill		25,725			40,948			66,673
	Total assets		46,367			84,407			130,774
	Current liabilities		(2,668	)		(3,357	)		(6,025	)
	Long-term liabilities		(851	)		(379	)		(1,230	)
	Total liabilities		(3,519	)		(3,736	)		(7,255	)
	Total preliminary purchase price allocation	$	42,848		$	80,671		$	123,519
	The preliminary estimates above are subject to change once the Company receives certain information it believes is necessary to finalize its determination of the fair value of assets acquired and liabilities assumed under the acquisition.
	Identifiable intangible assets
	Intangible assets acquired and their respective estimated remaining useful lives over which each asset will be amortized are:
		Fair value			Weighted
					Average
					Useful life
		(in thousands)			(in years)
	Purchased intangible assets:
	Licensed technology	$	135		6
	Developed technology		27,827		5
	In-process research and development		13,764		—
	Customer relationship		2,420		2-Jan
	Backlog		953		Less than 1
	Total purchased intangible assets	$	45,099
	Developed technology represents completed technology that has reached technological feasibility and/or is currently offered for sale to customers. The Company used the income approach to value the developed technology. Under the income approach, the expected future cash flows from each technology are estimated and discounted to their net present values at an appropriate risk-adjusted rate of return. Significant factors considered in the calculation of the rate of return are the weighted average cost of capital and the return on assets. The Company applied a discount rate of 17.5% for IPtronics and 15.5% for Kotura to value the developed technology assets taking into consideration market rates of return on debt and equity capital and the risk associated with achieving forecasted revenues related to these assets.
	In-process research and development ("IPR&D") represents projects that have not yet reached technological feasibility. Technological feasibility is defined as being equivalent to completion of a beta-phase working prototype in which there is no remaining risk relating to the development. As of the acquisition date, IPtronics was involved in research and development projects related to its laser-drivers, modulator-drivers, and trans-impedance-amplifier for 25Gb/s, enabling fast communication at 4x25Gb/s for interconnect solutions. Each of these projects is focused on developing and later on integrating new technologies while broadening features and functionalities. There is a risk that these development efforts and enhancements will not be competitive with other products on cost and functionality.
	As of the acquisition date, Kotura was involved in research and development projects related to its silicon photonics modulator for 25Gb/s, enabling fast communication at 4x25Gb/s and wavelength-division multiplexing "WDM" for interconnect products. Each of these projects is focused on developing and later on integrating new technologies and broadening features and functionalities. There is a risk that these development efforts and enhancements will not be competitive with other products using alternative technologies that offer comparable functionality.
	Upon successful completion of the development process for the acquired IPR&D projects, the assets will then be considered finite-lived intangible assets and amortization of the assets will commence. None of the projects has been completed as of December 31, 2013.
	The following table summarizes the significant assumptions underlying the valuations of IPR&D at acquisition:
	Company	Development Projects		Average			Estimated			Risk			Fair value
				Estimated			cost			Adjusted
				time			to complete			Discount
				to complete						Rate
				(in months)			(in thousands)			(%)			(in thousands)
	IPtronics	Modulator drivers—4x25Gb/s			18		$	9,549			19.5	%	$	4,121
	Kotura	Silicon photonics modulator—4x25Gb/s			18			17,210			16.5	%		9,643
							$	26,759					$	13,764
	Customer relationships represent the fair value of future projected revenues that will be derived from the sale of products to existing customers of the acquired company. The Company used the comparative method ("with/without") of the income approach to determine the fair value of this intangible asset and utilized a discount rate of 15.5%.
	Backlog represents the fair value of sales order backlog as of the valuation date. The Company used the income approach to determine the fair value of this intangible asset.
	The goodwill arising from these acquisitions is primarily attributed to sales of future products and the assembled workforce. Goodwill is not deductible for tax purposes. Goodwill is not being amortized but is reviewed annually for impairment or more frequently if impairment indicators arise, in accordance with authoritative guidance.
	The following table presents certain unaudited pro forma information for illustrative purposes only, for fiscal 2013 and fiscal 2012 as if IPtronics and Kotura had been acquired on January 1, 2012. The unaudited estimated pro forma information combines the historical results of IPtronics and Kotura with the Company's consolidated historical results and includes certain adjustments reflecting the estimated impact of fair value adjustments for the respective periods. The pro forma information is not indicative of what would have occurred had the acquisitions taken place on January 1, 2012. Additionally, the pro forma financial information does not include the impact of possible business model changes between IPtronics, Kotura and the Company. The Company expects to achieve further business synergies, as a result of the acquisitions that are not reflected in the pro forma amounts that follow. As a result, actual results will differ from the unaudited pro forma information presented (in thousands, except per share data):
		Year Ended
		December 31, 2013			December 31, 2012
		(in thousands, except per share data)
	Pro forma net revenue	$	402,530		$	522,304
	Pro forma net income (loss)	$	(30,132	)	$	100,177
	Pro forma net income (loss) per share basic	$	(0.69	)	$	2.43
	Pro forma net income (loss) per share diluted	$	(0.69	)	$	2.27
On February 7, 2011, the Company acquired Voltaire Ltd. ("Voltaire"), an Israeli-based public company.
The Company's allocation of the total purchase price is summarized below (in thousands):
Purchase price allocation:
Current assets	$	52,131
Other long-term assets		10,875
Intangible assets		36,052
Goodwill		132,885
Total assets		231,943
Current liabilities		(11,369	)
Long-term liabilities		(6,606	)
Total liabilities		(17,975	)
Total purchase price allocation	$	213,968
Intangible assets acquired and their respective estimated remaining useful lives over which each asset would be amortized were:
	Fair value			Weighted
				average
				useful life
	(in thousands)			(in years)
Developed technology	$	20,378		3-Feb
In-process research and development		2,754		—
Customer relationship		10,956		5-Apr
Customer contract		1,529		2
Backlog		435		Less than 1
Total acquired intangible assets	$	36,052
In-process research and development ("IPR&D") represents projects that had not yet reached technological feasibility. Technological feasibility is defined as being equivalent to completion of a beta-phase working prototype in which there is no remaining risk relating to the development. Acquired IPR&D consisted of three projects: Unified Fabric Manager, or "UFM", Acceleration software and Ethernet. Each of these projects is focused on integrating new technologies, improving product performance and broadening features and functionalities. The Acceleration software and Ethernet projects were completed during the year ended December 31, 2011. The UFM project was completed during the second quarter of 2012.
The goodwill recognized from the acquisition of Voltaire resulted primarily from the Company's anticipated enhanced position in providing end-to-end connectivity solutions, expanding its software and hardware offerings and strengthening its engineering team and sales force. Goodwill is not beinge amortized but instead will be tested for impairment annually or more frequently if certain indicators are present. Goodwill is not expected to be deductible for tax purposes.

FAIR_VALUE_MEASUREMENTS

FAIR VALUE MEASUREMENTS:	12 Months Ended
	Dec. 31, 2013
FAIR VALUE MEASUREMENTS:	'
FAIR VALUE MEASUREMENTS:	'
	NOTE 4—FAIR VALUE MEASUREMENTS:
	Fair value hierarchy:
	The Company measures its cash equivalents and marketable securities at fair value. The Company's cash equivalents are classified within Level 1. Cash equivalents are valued primarily using quoted market prices utilizing market observable inputs. The Company's investments in debt securities and certificates of deposits are classified within Level 2 as the market inputs to value these instruments consist of market yields, reported trades and broker/dealer quotes. In addition, foreign currency contracts are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. The Level 3 valuation inputs include the Company's best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument's valuation. As of December 31, 2013 and December 31, 2012, the Company did not have any assets or liabilities valued based on Level 3 valuations.
	The following table represents the fair value hierarchy of the Company's financial assets and liabilities measured at fair value as of December 31, 2013.
		Level 1		Level 2		Total
		(in thousands)
	Money market funds	$	20,000	$	—	$	20,000
	Certificates of deposit		—		67,769		67,769
	U.S. Government and agency securities		—		69,879		69,879
	Commercial paper		—		33,606		33,606
	Corporate bonds		—		92,274		92,274
	Derivative contracts		—		1,396		1,396
	Total financial assets	$	20,000	$	264,924	$	284,924
	The following table represents the fair value hierarchy of the Company's financial assets and liabilities measured at fair value as of December 31, 2012.
		Level 1		Level 2		Total
		(in thousands)
	Certificates of deposit	$	—	$	90,431	$	90,431
	U.S. Government and agency securities		—		115,129		115,129
	Commercial paper		—		34,947		34,947
	Corporate bonds		—		61,462		61,462
	Foreign government bonds		—		7,530		7,530
	Derivative contracts		—		2,942		2,942
	Total financial assets	$	—	$	312,441	$	312,441
	There were no transfers between Level 1 and Level 2 securities during the years ended December 31, 2013 and 2012.

INVESTMENTS

INVESTMENTS:	12 Months Ended
	Dec. 31, 2013
INVESTMENTS:	'
INVESTMENTS:	'
	NOTE 5—INVESTMENTS:
	Cash, cash equivalents and short-term investments:
	At December 31, 2013 and 2012, the Company held short-term investments classified as available-for-sale securities as follows:
		December 31, 2013
		Amortized			Unrealized		Unrealized			Estimated
		Cost			Gains		Losses			Fair Value
		(in thousands)
	Cash	$	43,164		$	—	$	—		$	43,164
	Money market funds		20,000			—		—			20,000
	Certificates of deposit		67,775			1		(7	)		67,769
	U.S. Government and agency securities		69,859			22		(2	)		69,879
	Commercial paper		33,602			9		(5	)		33,606
	Corporate bonds		92,298			16		(40	)		92,274
	Total investments	$	326,698		$	48	$	(54	)	$	326,692
	Less amounts classified as cash and cash equivalents		(63,164	)		—		—			(63,164	)
		$	263,534		$	48	$	(54	)	$	263,528
		December 31, 2012
		Amortized			Unrealized		Unrealized			Estimated
		Cost			Gains		Losses			Fair Value
		(in thousands)
	Cash	$	110,148		$	—	$	—		$	110,148
	Certificates of deposit		90,437			1		(7	)		90,431
	U.S. Government and agency securities		115,179			9		(59	)		115,129
	Commercial paper		34,977			—		(30	)		34,947
	Corporate bonds		61,543			3		(84	)		61,462
	Foreign government bonds		7,511			19		—			7,530
	Total investments	$	419,795		$	32	$	(180	)	$	419,647
	Less amounts classified as cash and cash equivalents		(117,054	)		—		—			(117,054	)
		$	302,741		$	32	$	(180	)	$	302,593
	Realized gains upon the sale of marketable securities were $1.2 million and $0.9 million for the years ended December 31, 2013 and December 31, 2012, respectively. At December 31, 2013, investments with gross unrealized losses were not deemed to be other-than-temporarily impaired and the unrealized losses were recorded in OCI.
	The contractual maturities of short-term investments at December 31, 2013 and December 31, 2012 were as follows:
		December 31, 2013					December 31, 2012
		Amortized			Estimated		Amortized			Estimated
		Cost			Fair Value		Cost			Fair Value
		(in thousands)
	Due in less than one year	$	190,172		$	190,189	$	172,941		$	172,880
	Due in one to three years		73,362			73,339		129,800			129,713
		$	263,534		$	263,528	$	302,741		$	302,593
	Previously reported amounts have been revised to correct for an error in the classification of debt securities due in less than one year and debt securities due in one to three years.
	Investments in privately-held companies:
	As of December 31, 2013, the Company held a total of $7.5 million investments in two privately-held companies and as of December 31, 2012, the Company held a $4.4 million investment in a privately-held company.

GOODWILL_AND_INTANGIBLE_ASSETS

GOODWILL AND INTANGIBLE ASSETS:	12 Months Ended
	Dec. 31, 2013
GOODWILL AND INTANGIBLE ASSETS:	'
GOODWILL AND INTANGIBLE ASSETS:	'
	NOTE 6—GOODWILL AND INTANGIBLE ASSETS:
	The following table represents changes in the carrying amount of goodwill (in thousands):
	Balance as of December 31, 2012	$	132,885
	Goodwill from IPtronics acquisition		25,725
	Goodwill from Kotura acquisition		40,948
	Adjustments		—
	Balance as of December 31, 2013	$	199,558
	The carrying amounts of intangible assets as of December 31, 2013 were as follows:
		Gross		Accumulated			Net
		Carrying		Amortization			Carrying
		Value					Value
		(in thousands)
	Licensed technology	$	2,344	$	(366	)	$	1,978
	Developed technology		56,190		(24,667	)		31,523
	Customer relationships		13,376		(6,279	)		7,097
	Customer contract		1,529		(1,529	)		—
	Backlog		953		(953	)		—
	Total amortizable intangible assets	$	74,392	$	(33,794	)	$	40,598
	IPR&D		13,764		—			13,764
	Total intangible assets	$	88,156	$	(33,794	)	$	54,362
	The carrying amounts of intangible assets as of December 31, 2012 were as follows:
		Gross		Accumulated			Net
		Carrying		Amortization			Carrying
		Value					Value
		(in thousands)
	Licensed technology	$	946	$	(946	)	$	—
	Developed technology		23,132		(14,695	)		8,437
	Customer relationships		10,956		(3,328	)		7,628
	Customer contract		1,529		(1,460	)		69
	Total intangible assets	$	36,563	$	(20,429	)	$	16,134
	Amortization expense of intangible assets totaled approximately $14.2 million, $9.3 million and $9.4 million for the years ended December 31, 2013, 2012 and 2011, respectively.
	The estimated future amortization expense from amortizable intangible assets is as follows (in thousands):
	2014	$	12,894
	2015		10,786
	2016		9,970
	2017		9,907
	2018 and thereafter		10,805
		$	54,362

DERIVATIVES_AND_HEDGING_ACTIVI

DERIVATIVES AND HEDGING ACTIVITIES:	12 Months Ended
	Dec. 31, 2013
DERIVATIVES AND HEDGING ACTIVITIES:	'
DERIVATIVES AND HEDGING ACTIVITIES:	'
	NOTE 7—DERIVATIVES AND HEDGING ACTIVITIES:
	As of December 31, 2013, the Company had derivative contracts in place that hedged future operating expenses of approximately 108.8 million NIS, or approximately $31.3 million based upon the exchange rate as of December 31, 2013. The derivative contracts cover future NIS denominated operating expenses expected to occur over the next twelve months. As of December 31, 2012, the Company had derivative contracts in place that hedged future operating expenses of approximately 219.9 million NIS, or approximately $58.9 million based upon the exchange rate as of December 31, 2012.
	The Company does not use derivative financial instruments for purposes other than cash flow hedges.
	Fair Value of Derivative Contracts
	The fair value of derivative contracts as of December 31, 2013 and December 31, 2012 was as follows:
		Derivative Assets						Derivative
		Reported in Other						Liabilities
		Current Assets						Reported in
								Other
								Current
								Liabilities
		December 31,						December 31,
		2013			2012			2013		2012
		(in thousands)
	Foreign exchange contracts designated as cash flow hedges	$	1,396		$	2,942		$	—	$	—
	Total derivatives designated as hedging instruments	$	1,396		$	2,942		$	—	$	—
	Effect of Designated Derivative Contracts on Accumulated Other Comprehensive Income
	The following table represents the balance of derivative contracts designated as cash flow hedges as of December 31, 2013 and 2012, and their impact on OCI for the year ended December 31, 2013 (in thousands):
	December 31, 2012	$	2,942
	Amount of gain recognized in OCI (effective portion)		4,481
	Amount of gain reclassified from OCI to income (effective portion)		(6,027	)
	December 31, 2013	$	1,396
	Foreign exchange contracts designated as cash flow hedges relate primarily to operating expenses and the associated gains and losses are expected to be recorded in operating expenses when reclassed out of OCI. The Company expects to realize the accumulated OCI balance related to foreign exchange contracts within the next twelve months.
	Effect of Derivative Contracts on the Condensed Consolidated Statement of Operations
	The impact of derivative contracts on total operating expenses in the years ended December 31, 2013, 2012 and 2011 was:
		Year Ended December 31,
		2013			2012			2011
		(in thousands)
	Gain (loss) on foreign exchange contracts designated as cash flow hedges	$	6,027		$	(893	)	$	1,223
	The net gains or losses relating to the ineffective portion of derivative contracts were not material in the years ended December 31, 2013 and 2012.

EMPLOYEE_BENEFIT_PLANS

EMPLOYEE BENEFIT PLANS:	12 Months Ended
	Dec. 31, 2013
EMPLOYEE BENEFIT PLANS:	'
EMPLOYEE BENEFIT PLANS:	'
	NOTE 8—EMPLOYEE BENEFIT PLANS:
	The Company has established a pretax savings plan under Section 401(k) of the Internal Revenue Code. The 401(k) Plan allows eligible employees in the United States to voluntarily contribute a portion of their pre-tax salary, subject to a maximum limit specified in the Internal Revenue Code. The Company matches employee contributions of up to 4% of their annual base salaries. The total expenses for these contributions were $0.8 million, $0.5 million and $0.4 million for the years ended December 31, 2013, 2012 and 2011, respectively.
	Under Israeli law, the Company is required to make severance payments to certain of its retired or dismissed Israeli employees. For employees hired prior to January 1, 2007 the severance pay liability is calculated based on the monthly salary of each employee multiplied by the number of years of such employee's employment and is presented in the Company's balance sheet in long-term liabilities, as if it was payable at each balance sheet date on an undiscounted basis. This liability is partially funded by the purchase of insurance policies or pension funds in the name of the employees. The surrender value of the insurance policies or pension funds is presented in long-term assets.
	The severance pay detail is as follows:
		December 31,
		2013		2012
		(in thousands)
	Accrued severance liability	$	13,418	$	11,821
	Severance assets		10,630		8,907
	Unfunded portion	$	2,788	$	2,914
	For other Israeli employees, the Company's contributions for severance pay will replace its severance obligation. Upon a monthly contribution equal to 8.33% of the employee's monthly salary to an insurance policy or pension fund no additional calculations shall be conducted between the parties regarding the matter of severance pay and no additional payments will be made by the Company to the employee. Further, the related obligation and amounts deposited on behalf of the employee for such obligation are not stated on the balance sheet, as the Company is legally released from the obligation to employees once the deposit amounts have been paid.
	Severance expenses for the years ended December 31, 2013, 2012 and 2011 were $6.1 million, $4.3 million and $3.9 million, respectively.
	In addition, the Company has established a pension contribution plan with respect to its employees in Israel. Under the plan, the Company contributes up to 6% of employee monthly salary toward the plan. Employees are entitled to amounts accumulated in the plan upon reaching retirement age, subject to any applicable law. Defined pension contribution plan expenses were $4.5 million, $3.2 million and $2.5 million in the years ended December 31, 2013, 2012 and 2011, respectively.

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES:	12 Months Ended
	Dec. 31, 2013
COMMITMENTS AND CONTINGENCIES:	'
COMMITMENTS AND CONTINGENCIES:	'
	NOTE 9—COMMITMENTS AND CONTINGENCIES:
	Leases
	The Company leases office space and motor vehicles under operating leases with various expiration dates through 2021. Rent expense was approximately $8.9 million, $6.8 million and $6.6 million for the years ended December 31, 2013, 2012 and 2011, respectively. The terms of the facility lease provide for rental payments on a graduated scale. The Company recognizes rent expense on a straight-line basis over the lease period, and has accrued for rent expense incurred but not paid.
	The Company has entered into capital lease agreements for electronic design automation software. The total amount of assets under capital lease agreements within "Property and equipment, net" was approximately $2.8 million and $4.1 million for the years ended December 31, 2013 and 2012, respectively.
	For the years ended December 31, 2013 and 2012, the accumulated amortization for assets under capital lease agreements totaled approximately $1.2. million and $0.6 million, respectively. At December 31, 2013, future minimum payments under non-cancelable operating and capital leases are as follows:
	Year Ended December 31,	Capital			Operating
		Leases			Leases
		(in thousands)
	2014	$	1,313		$	16,333
	2015		1,097			11,851
	2016		492			7,906
	2017		—			6,393
	2018 and beyond		—			10,869
	Total minimum lease payments	$	2,902		$	53,352
	Less: Amount representing interest		(57	)
	Present value of capital lease obligations		2,845
	Less: Current portion		(1,245	)
	Long-term portion of capital lease obligations	$	1,600
	Purchase commitments
	At December 31, 2013, the Company had non-cancelable purchase commitments of $46.0 million, $45.2 million of which is expected to be paid in 2014 and $0.8 million in 2015 and beyond.
	Legal proceedings
	The Company considers all legal claims on a quarterly basis in accordance with GAAP and, based on known facts, assesses whether potential losses are considered reasonably possible, probable and estimable.
	The Company makes a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. Unless otherwise specifically disclosed in this note, the Company has determined that no provision for liability nor disclosure is required related to any claim against us because: (a) there is not a reasonable possibility that a loss exceeding amounts already recognized (if any) may be incurred with respect to such claim; (b) a reasonably possible loss or range of loss cannot be estimated; or (c) such estimate is immaterial. All legal costs associated with litigation are expensed as incurred.
	Litigation is inherently unpredictable. However, the Company believes that it has valid defenses with respect to the pending legal matters. It is possible, nevertheless, that the consolidated financial position, cash flows or results of operations could be negatively affected by an unfavorable resolution of one or more of such proceedings, claims or investigations.
	Pending legal proceedings as of December 31, 2013 were as follows:
	Avago Technologies Fiber (IP) Singapore Pte. Ltd.
	On September 24, 2012, Avago Technologies Fiber (IP) Singapore Pte. Ltd., Avago Technologies General IP (Singapore) Pte. Ltd. and Avago Technologies U.S. Inc. (collectively, "Avago") filed a complaint against Mellanox Technologies, Ltd., Mellanox Technologies, Inc., IPtronics A/S, IPtronics, Inc., FCI USA, LLC, FCI Deutschland GmbH and FCI SA (collectively, "Respondents") with the United States International Trade Commission (Inv. No. 337-TA-860). The complaint alleges that the Respondents have engaged in unfair acts in violation of Section 337 of the Tariff Act of 1930, as amended, through allegedly unlicensed importation, sale for importation and/or sale after importation of products covered by patents asserted by Avago. With regard to the patents asserted against Mellanox, on December 13, 2013 the Administrative Law Judge, in an initial determination reviewable by the International Trade Commission, found no violation with regard to U.S. Patent Number 5,596,456 ("456"), but found a violation of US Patent No. 5,596,595 ("595"). Respondents and the staff attorney for the Office of Unfair Import Investigations filed petitions asking the International Trade Commission to review the 595 findings. Avago filed a petition asking the International Trade Commission to review the findings related to the 456 patent. Respondents, the staff attorney, and Avago each filed replies to the opposing parties' petitions. A final determination by the International Trade Commission is expected in mid-April 2014. Pursuant to the complaint, Avago seeks as permanent relief a limited exclusion order barring from entry into the United States, among other Respondent products, all imported Mellanox optoelectronic devices and products containing the same that allegedly infringe the patents asserted by Avago, and a cease and desist order prohibiting the importation, sale, offer for sale, advertising, solicitation, use and/or warehousing of inventory for distribution of such imported products in the United States. Neither the outcome of the proceeding nor the amount and range of potential damages or exposure associated with the proceeding can be assessed with certainty. In the event the Respondents are not successful in defending the Avago claims, the Company could be forced to license technology from Avago and be prevented from importing, selling, offering for sale, advertising, soliciting, using and/or warehousing for distribution the allegedly infringing products. Based on currently available information, the Company believes that the resolution of this proceeding is not likely to have a material adverse effect on the Company's business, financial position, results of operations or cash flows.
	Avago Technologies Fiber (IP) Singapore Pte. Ltd. vs. IPtronics Inc. and IPtronics A/S
	On September 29, 2010, Avago Technologies Fiber (IP) Singapore Pte. Ltd. ("Avago IP") filed a complaint for patent infringement against IPtronics, Inc. and IPtronics A/S (collectively, "Respondents") in the United States District Court, Northern District of California, San Francisco Division (Case No.: CV- 0-2863). On September 11, 2012, Avago Technologies U.S. Inc., Avago Technologies General IP (Singapore) Pte. Ltd., Avago Technologies Trading Ltd., Avago Technologies International Sales Pte., Ltd. and Avago Technologies Fiber (IP) Singapore Pte. Ltd. (collectively, "Avago") filed a second amended and supplemental complaint (the "Complaint") against IPtronics, Inc. and IPtronics A/S (collectively, "Respondents") in the United States District Court, Northern District of California, San Jose Division (Case No.: 5:10-CV-02863-EJD (PSG)). The Complaint amends and supplements all complaints previously filed by Avago in this case and alleges that the Respondents: infringed certain of Avago's patents; engaged in violations of the Lanham Act, Section 43 (A); misappropriated Avago's trade secrets; engaged in unfair competition against Avago; intentionally interfered with Avago's contractual relations; and were unjustly enriched by and through the conduct complained of by Avago in the Complaint. Pursuant to the Complaint, Avago seeks unspecified damages, treble damages, injunctive relief and any other relief deemed just and proper by the court. Neither the outcome of the proceeding nor the amount and range of potential damages or exposure associated with the proceeding can be assessed with certainty. In the event the Respondents are not successful in defending the Complaint, the Company could be forced to license technology from Avago and be prevented from importing, selling, offering for sale, advertising, soliciting, using and/or warehousing for distribution the allegedly infringing products. Based on currently available information, the Company believes that the resolution of this proceeding is not likely to have a material adverse effect on the Company's business, financial position, results of operations or cash flows.
	In re Mellanox Technologies, Ltd. Securities Litigation
	On February 7, February 14 and February 22, 2013, Mellanox Technologies, Ltd., the Company's President and CEO, former CFO and CFO were sued in three separate legal complaints filed in the United States District Court for the Southern District of New York naming the Company and them each as defendants and respectively entitled, Patrick Barnicle, on behalf of himself and others similarly situated v. Mellanox Technologies, Ltd., Eyal Waldman, Michael Gray and Jacob Shulman, Case No. 13 CIV 925, David R. Ryan, Jr., on behalf of himself and others similarly situated v. Mellanox Technologies, Ltd., Eyal Waldman, Michael Gray and Jacob Shulman, Case No. 13 CV 1047 and Valentin Petrov, on behalf of himself and others similarly situated v. Mellanox Technologies, Ltd., Eyal Waldman, Michael Gray and Jacob Shulman, Case No. 13 CV 1225. The complaints were filed by Patrick Barnacle, David R. Ryan and Valentin Petrov, respectively, each for himself as a plaintiff and, purportedly, on behalf of persons purchasing the Company's ordinary shares between April 19, 2012 and January 2, 2013 (the "Class Period").
	On May 14, 2013, the Court consolidated the Barnicle, Ryan and Petrov complaints and appointed lead plaintiffs and lead counsel. On July 12, 2013, an Amended Consolidated Complaint was filed against the same defendants. The Amended Consolidated Complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder. The Amended Consolidated Complaint alleges that, during the Class Period, the defendants made false or misleading statements (or failed to disclose certain facts) regarding the Company's business and outlook.
	In the amended complaint, plaintiffs seek unspecified damages, an award of reasonable costs and expenses, including reasonable attorney's fees, and any other relief deemed just and proper by the court. On October 11, 2013, the United States District Court for the Southern District of New York transferred the consolidated action to the United States District Court for Northern California. The consolidated action is captioned, In re Mellanox Technologies, Ltd. Securities Litigation, Case No. 3:13-cv-04909-JST.
	Based on currently available information, the Company believes that the resolution of this proceeding is not likely to have a material adverse effect on the Company's business, financial position, results of operations or cash flows.
	Weinberger Case
	On February 20, 2013, a request for approval of a class action was filed in the Economic Division of the District Court of Tel Aviv-Jaffa against Mellanox Technologies, Ltd., the Company's President and CEO, former CFO, CFO and each of the members of the Company's board of directors (the "Israeli Claim"). The Israeli Claim was filed by Mr. Avigdor Weinberger (the "Claimant"). The Israeli Claim alleges that the Company, the board members, the Company's President and CEO, its former CFO and its current CFO are responsible for making misleading statements (or failing to disclose certain facts) and filings to the public, as a result of which the shares of the Company were allegedly traded at a higher price than their true value during a period commencing on April 19, 2012 and ending January 2, 2013 and, therefore, these parties are responsible for damages caused to the purchasers of the Company's shares on the Tel Aviv Stock Exchange during this time. The Claimant seeks an award of compensation to the relevant shareholders for all damages caused to them, including attorney fees and Claimant's fee and any other relief deemed just and proper by the court. On April 24, 2013, the Claimant and the Company filed a procedural agreement with the court to stay the Israeli Claim pending the completion of the Barnicle, Ryan and Petrov cases disclosed herein. On April 24, 2013, the Israeli court approved this procedural agreement and stayed the Israeli proceedings. Based on currently available information, the Company believes that the resolution of this proceeding is not likely to have a material adverse effect on the Company's business, financial position, results of operations or cash flows.
	Infinite Data Case
	On February 19, 2013, Infinite Data LLC, a Delaware limited liability company ("Infinite Data") and a non-practicing entity and exclusive licensee of U.S. patent number 5,790,530 (the "Patent"), filed suit against approximately 25 of the Company's end users and direct customers of its InfiniBand products in the United States District Court in Delaware. All actions include the same allegation of infringement regarding the Patent and seek the payment of damages, costs, expenses and injunctive relief. Several of the end users and direct customers sued by Infinite Data have tendered indemnification requests to the Company on the basis of existing contractual or asserted statutory obligations imposed on the Company to provide such indemnification. Neither the outcome of the proceedings nor the amount and range of potential damages or exposure associated with the proceedings can be assessed with certainty. Based on currently available information, the Company believes that the resolution of these proceedings is not likely to have a material adverse effect on the Company's business, financial position, results of operations or cash flows.
	In response to these filings and accusations of infringement of Mellanox's products, on May 21, 2013, Mellanox filed a declaratory judgment complaint against Infinite Data asking for a declaration that the Patent is invalid and that the Company's products do not infringe. On November 14, 2013, Infinite Data filed its answer denying that the Patent was invalid and Counterclaimed that the Company's products infringe. Pursuant to the Counterclaims, Infinite Data seeks unspecified damages, treble damages, injunctive relief and any other relief deemed just and proper by the court. Neither the outcome of the proceeding nor the amount and range of potential damages or exposure associated with the proceeding can be assessed with certainty. In the event the Company is not successful in defending the Counterclaims, the Company could be forced to license technology from Infinite Data and be prevented from importing, selling, offering for sale, advertising, soliciting, using and/or warehousing for distribution the allegedly infringing products. Based on currently available information, the Company believes that the resolution of this proceeding is not likely to have a material adverse effect on the Company's business, financial position, results of operations or cash flows.
	Israeli Class Action Claim in re TASE Delisting
	On June 6, 2013, a complaint was filed in the Tel-Aviv District court (the "Israeli Court") in Tel Aviv, Israel (Mordechay Turgeman v. Mellanox et. al. (Case No.: 13189-06-13)), in which the plaintiff alleged that the Company's decision to delist from the Tel Aviv Stock Exchange ("TASE") was a breach of the duty of loyalty of the Company's board of directors (the "Board"), as well as a breach of fiduciary duty and duty of care by the Company's president and chief executive officer (the "Claim"). In addition, the plaintiff filed a motion to certify the complaint as a class action. The Company was served with the complaint on June 16, 2013. On December 22, 2013, the Company and the Board filed their Response to the motion to certify the complaint as a class action (the "Response").
	On January 7, 2014 the plaintiff, with the consent of the Company, filed a request to withdraw the Claim (and related class action claim) against the Company and the Board (the "Withdrawal Petition") after the plaintiff, in view of the facts and arguments presented in the Response, reached the conclusion that it would be difficult for the plaintiff to prove the Claim and have the complaint approved as a class action. Neither the plaintiff nor its attorneys have received or will receive any benefit in return for their withdrawal.
	On January 8, 2014, the Israeli Court ordered that a notice should be published in two newspapers in Israel in which potential class members, the Israeli attorney general, the director of Israeli courts and the Israeli Securities Authority were notified that any such party has 45 days from the date of the notice to present its position to the Israeli Court objecting to or relating to the Withdrawal Petition. On January 9, 2014 the Israeli court approved the form of the notice, and the notice was published on Sunday, January 12, 2014. While any withdrawal of the Claim (and related class action claim) is ultimately within the discretion of the Israeli Court, the Company believes that the Israeli Court will approve such withdrawal if none of such parties make a filing objecting to such withdrawal. Based on currently available information, no such objection has occurred and the Company believes that the resolution of this claim is not likely to have a material adverse effect on the Company's business, financial position, results of operations or cash flows.

SHARE_INCENTIVE_PLANS

SHARE INCENTIVE PLANS:	12 Months Ended
	Dec. 31, 2013
SHARE INCENTIVE PLANS:	'
SHARE INCENTIVE PLANS:	'
	NOTE 10—SHARE INCENTIVE PLANS:
	The Company has seven option plans: the 1999 United States Equity Incentive Plan, 1999 Israeli Share Option Plan, 2003 Israeli Share Option Plan (collectively, the "Prior Plans"), the 2006 Global Share Incentive Plan (the "Global Plan"), the Global Share Incentive Assumption Plan 2010 (the "Assumption Plan"), the Kotura, Inc. Second Amended and Restated 2003 Stock Plan (the "Kotura Plan") and the IPtronics, Inc. 2013 Restricted Stock Unit Plan (the "IPtronics Plan").
	The number of ordinary shares reserved for issuance under the Company's Global Plan will increase automatically on the first day of each fiscal year, beginning in 2008, by a number of ordinary shares equal to the lower of: (i) 2% of total number of ordinary shares outstanding on a fully diluted basis on the date of the increase, (ii) 685,714 ordinary shares, or (iii) a smaller number determined by the board of directors. In any event, the maximum aggregate number of ordinary shares that may be issued or transferred under the Global Plan during the term of the Global Plan may in no event exceed 15,474,018 ordinary shares. The Global Plan was automatically increased by 685,714 ordinary shares on January 1, 2014, 2013 and 2012, respectively.
	The number of ordinary shares reserved for issuance under the Company's Assumption Plan will increase automatically on the first day of each fiscal year, beginning in 2012, by a number of ordinary shares equal to the lower of: (i) 281,625 ordinary shares or (ii) an amount determined by the Board. The Assumption Plan was automatically increased by 281,625 ordinary shares on January 1, 2014, and 2013, respectively.
	The following table summarizes the share option awards activity under all equity incentive plans:
		Options Outstanding
		Number			Weighted
		of Shares			Average
					Exercise
					Price
	Outstanding at December 31, 2010		5,434,974		$	10.56
	Options granted		1,060,938		$	21.8
	Options exercised		(1,586,577	)	$	8.83
	Options canceled		(202,986	)	$	16.46
	Outstanding at December 31, 2011		4,706,349		$	13.42
	Options granted		879,160		$	70.72
	Options exercised		(2,161,628	)	$	10.96
	Options canceled		(137,959	)	$	28.33
	Outstanding at December 31, 2012		3,285,922		$	29.74
	Options granted		31,653		$	18.3
	Options exercised		(376,588	)	$	14.08
	Options canceled		(134,763	)	$	62.47
	Outstanding at December 31, 2013		2,806,224		$	30.14
	The weighted average fair value of options granted was approximately $8.91, $38.66 and $18.51 for the years ended December 31, 2013, 2012 and 2011, respectively. The options grant of 31,653 shares in 2013 are related to the assumption plan for the Kotura acquisition.
	The total pretax intrinsic value of options exercised in 2013 was $12.9 million. This intrinsic value represents the difference between the fair market value of the Company's ordinary shares on the date of exercise and the exercise price of each option. Based on the closing price of the Company's ordinary shares of $39.97 on December 31, 2013, the total pretax intrinsic value of all outstanding options awards was $51.8 million. The total pretax intrinsic value of exercisable options at December 31, 2013 was $48.6 million.
	The total pretax intrinsic value of options exercised in 2012 was $136.1 million. Based on the closing price of the Company's ordinary shares of $59.38 on December 31, 2012, the total pretax intrinsic value of all outstanding options awards was $112.4 million. The total pretax intrinsic value of exercisable options at December 31, 2012 was $88.4 million.
	The following tables provide additional information about all options outstanding and exercisable at December 31, 2013:
		Options Outstanding at							Options Exercisable at
		December 31, 2013							December 31, 2013
	Range of Exercise Price	Number			Weighted		Weighted		Number		Weighted
		Outstanding			Average		Average		Exercisable		Average
					Remaining		Exercise				Exercise
					Contractual		Price				Price
					Life (Years)
	$3.13 - $8.23		323,962			4.44	$	7.83		323,962	$	7.83
	$8.45 - $9.19		286,867			3.51	$	9.04		286,867	$	9.04
	$10.23 - $10.23		556,177			5.19	$	10.23		556,177	$	10.23
	$10.50 - $18.87		295,314			5.63	$	14.43		273,517	$	14.27
	$18.97 - $27.72		299,958			6.54	$	23.06		229,353	$	23.08
	$29.03 - $34.00		312,905			7.54	$	31.22		175,519	$	31.08
	$35.12 - $57.41		274,664			8.1	$	46.39		125,973	$	45.52
	$66.07 - $66.07		162,188			8.44	$	66.07		62,250	$	66.07
	$79.38 - $79.38		20,700			8.83	$	79.38		5,909	$	79.38
	$101.37 - $101.37		273,489			8.39	$	101.37		95,126	$	101.37
	$3.13 - $101.37		2,806,224			6.2	$	30.14		2,134,653	$	21.28
	The following table summarizes the restricted share unit activity under all equity incentive plans:
		Restricted Share
		Units Outstanding
		Number			Weighted
		of Shares			Average
					Grant Date
					Fair Value
	Non-vested restricted share units at December 31, 2010		414,945		$	19.86
	Restricted share units granted		1,143,142			27
	Restricted share units vested		(224,005	)		20.02
	Restricted share units canceled		(142,409	)		24.97
	Non-vested restricted share units at December 31, 2011		1,191,673		$	26.05
	Restricted share units granted		1,110,230			42.88
	Restricted share units vested		(480,150	)		24.65
	Restricted share units canceled		(58,593	)		30.39
	Non-vested restricted share units at December 31, 2012		1,763,160		$	36.29
	Restricted share units granted		1,162,133			49.05
	Restricted share units vested		(778,084	)		31.16
Restricted share units canceled		(172,755	)		42.49
Non-vested restricted share units at December 31, 2013		1,974,454		$	43.81
The weighted average fair value of restricted share units granted was $49.05, $42.88 and $27.00 for the years ended December 31, 2013, 2012 and 2011, respectively. The total intrinsic value of all outstanding restricted share units was $78.9 million as of December 31, 2013.
The Employee Share Purchase Plan, ("ESPP"), is designed to allow eligible employees to purchase the Company's ordinary shares, at semi-annual intervals, with their accumulated payroll deductions. A participant may contribute up to 15% of his or her base compensation through payroll deductions, and the accumulated deductions will be applied to the purchase of shares on the purchase date, which is the last trading day of the offering period. The purchase price per share will be equal to 85% of the fair market value per share on the start date of the offering period in which the participant is enrolled or, if lower, 85% of the fair market value per share on the purchase date. In any event, the maximum aggregate number of ordinary shares that may be issued over the term of the ESPP may in no event exceed 2,585,712 shares. 1,085,712 shares were initially reserved for issuance pursuant to purchase rights under the ESPP. In August 2012, the Company reserved for issuance 1,500,000 additional shares under the ESPP. No participant in the ESPP may be issued or transferred more than $25,000 worth of ordinary shares pursuant to purchase rights under the ESPP per calendar year. During the years ended December 31, 2013 and 2012, 248,486 and 219,442 shares, respectively, were issued under the ESPP at weighted average per share prices of $37.56 and $28.57, respectively.
The Company had the following ordinary shares reserved for future issuance under its equity incentive plans as of December 31, 2013:
	Number
	of
	Shares
Share options outstanding		2,806,224
Restricted share units outstanding		1,974,454
Share authorized for future issuance		1,236,003
ESPP shares available for future issuance		1,245,974
Total shares reserved for future issuance as of December 31, 2013		7,262,655
Share-based compensation
The Company accounts for share-based compensation expense based on the estimated fair value of the share option awards as of the grant dates.
The following weighted average assumptions are used to value share options granted in connection with the Company's share incentive plans for the years ended December 31, 2013, 2012 and 2011:
	Employee Share							Employee Share
	Options							Purchase Plan
	Year Ended							Year Ended
	December 31,							December 31,
	2013			2012		2011		2013		2012		2011
Dividend yield, %		—			—		—		—		—		—
Expected volatility, %		57.5			56.6		55.9		56.18		68.05		41.8
Risk free interest rate, %		1.54			1.02		1.72		0.07		0.12		0.1
Expected life, years		4.72			6.25		6.25		0.53		0.53		0.53
The following table summarizes the distribution of total share-based compensation expense in the Consolidated Statements of Operations:
	Year Ended December 31,
	2013			2012		2011
	(in thousands)
Share-based compensation expense by caption:
Cost of goods sold	$	1,828		$	1,621	$	980
Research and development		25,956			19,356		11,906
Sales and marketing		9,198			8,055		4,894
General and administrative		8,156			5,987		3,632
Total share-based compensation expense	$	45,138		$	35,019	$	21,412
Share-based compensation expense by type of award:
Share options	$	12,460		$	14,104	$	12,568
ESPP		3,938			2,851		1,686
RSU		28,740			18,064		7,158
Total share-based compensation expense	$	45,138		$	35,019	$	21,412
At December 31, 2013, there was $89.8 million of total unrecognized share-based compensation costs related to non-vested share-based compensation arrangements. The costs are expected to be recognized over a weighted average period of approximately 2.32 years.

ACCUMULATED_OTHER_COMPREHENSIV

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS):	12 Months Ended
	Dec. 31, 2013
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS):	'
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS):	'
	NOTE 11—ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS):
	The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the years ended December 31, 2013 and 2012:
		Unrealized			Gains / Losses			Total
		Gains / Losses on			on Derivatives
		Available-for-
		Sale Securities
		(in thousands)
	Balance at December 31, 2012	$	(148	)	$	2,942		$	2,794
	Other comprehensive income/loss before reclassifications		148			4,481			4,629
	Amounts reclassified from accumulated other comprehensive income/loss		(6	)		(6,027	)		(6,033	)
	Net current-period other comprehensive income/loss, net of taxes		142			(1,546	)		(1,404	)
	Balance at December 31, 2013	$	(6	)	$	1,396		$	1,390
	Balance at December 31, 2011	$	(15	)	$	(1,149	)	$	(1,164	)
	Other comprehensive income/loss before reclassifications		(129	)		3,198			3,069
	Amounts reclassified from accumulated other comprehensive income/loss		(4	)		893			889
	Net current-period other comprehensive income/loss, net of taxes		(133	)		4,091			3,958
	Balance at December 31, 2012	$	(148	)	$	2,942		$	2,794
	The following table provides details about reclassifications out of accumulated other comprehensive income (loss) for the year ended December 31, 2013:
	Details about Accumulated Other	Amount			Affected Line Item in the
	Comprehensive Income / Loss Components	Reclassified			Statement of Operations
		from Other
		Comprehensive
		Income / Loss
		(in thousands)
	Gains on Derivatives	$	6,027		Cost of revenues and Operating expenses
			363		Cost of revenues
			4,653		Research and development
			508		Sales and marketing
			503		General and administrative
			6,027
	Unrealized gains (losses) on Available-for-Sale Securities		6		Other income, net
	Total reclassifications for the period	$	6,033		Total

INCOME_TAXES

INCOME TAXES:	12 Months Ended
	Dec. 31, 2013
INCOME TAXES:	'
INCOME TAXES:	'
	NOTE 12—INCOME TAXES:
	The components of income (loss) before income taxes are as follows:
		Year Ended December 31,
		2013			2012			2011
		(in thousands)
	United States	$	(1,870	)	$	6,709		$	3,479
	Foreign		(17,239	)		112,858			9,873
	Income (loss) before income taxes	$	(19,109	)	$	119,567		$	13,352
	The components of the provision for income taxes are as follows:
		Year Ended December 31,
		2013			2012			2011
		(in thousands)
	Current:
	U.S. federal	$	1,989		$	6,178		$	2,838
	State and local		508			890			437
	Foreign		3,110			4,573			907
			5,607			11,641			4,182
	Deferred:
	U.S. federal	$	(1,174	)	$	(2,805	)	$	(658	)
	State and local		(219	)		(226	)		(149	)
	Foreign		(462	)		(423	)		—
			(1,855	)		(3,454	)		(807	)
	Provision for taxes on income	$	3,752		$	8,187		$	3,375
	At December 31, 2013 and 2012, temporary differences which gave rise to significant deferred tax assets and liabilities are as follows:
		December 31,
		2013			2012
		(in thousands)
	Deferred tax assets:
	Net operating loss and credit carryforwards	$	44,251		$	30,644
	Reserves and accruals		9,572			7,499
	Depreciation and amortization		786			(174	)
	Other		2,285			—
	Gross deferred tax assets		56,894			37,969
	Valuation allowance		(29,128	)		(32,073	)
	Total deferred tax assets		27,766			5,896
	Intangible assets		(13,275	)		—
	Total deferred tax liabilities		(13,275	)		—
	Net deferred tax assets	$	14,491		$	5,896
	The Company records net deferred tax assets to the extent it believes these assets will more likely than not be realized. In making such determination, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial performance.
	At December 31, 2013, the Company had foreign net operating loss carryforwards of approximately $82.1 million in Israel, $61.2 million in the United States, and $14.2 million in Denmark. The US net operating losses expire in 2033 and the non-US net operating losses have no expiration date.
	The Company has not provided for Israeli income and foreign withholding taxes on $12.5 million of its non-Israeli subsidiaries' undistributed earnings as of December 31, 2013. The Company currently has no plans to repatriate those funds and intends to indefinitely reinvest them in its non-Israeli operations. The Company cannot determine the impact of local taxes, withholding taxes and foreign tax credits associated with future repatriation of such earnings because the time or manner of the repatriation is uncertain and therefore cannot quantify the related tax liability.
	The reconciliation of the statutory federal income tax rate to the Company's effective tax rate is as follows:
		Year Ended
		December 31,
		2013			2012			2011
	Tax at statutory rate		35	%		35	%		34	%
	State, net of federal benefit		2.9			0.5			2.2
	Meals and entertainment		(1.9	)		0.1			0.4
	Tax at rates other than the statutory rate		(35.7	)		(32.9	)		(15.6	)
	Share-based compensation		(4.6	)		(0.1	)		3.2
	Net change in tax reserves		(15.9	)		4.8			—
	Other, net		0.6			(0.6	)		1
	Provision for taxes		(19.6	)%		6.8	%		25.2	%
	The Company calculates the pool of excess tax benefits resulting from share based compensation available to absorb tax deficiencies recognized using the method under which each award grant is tracked on an employee-by-employee basis and grant-by-grant basis to determine if there is a tax benefit situation or tax deficiency situation for such award. The Company then compares the fair value expense to the tax deduction received for each grant and aggregates the benefits and deficiencies to determine whether there is a hypothetical additional paid in capital ("APIC") pool. For the years ended December 31, 2013 and 2012, the Company recognized a tax benefit to APIC of $2.7 million and $5.1 million, respectively.
	The Company's operations in Israel were granted "Approved Enterprise" status by the Investment Center in the Israeli Ministry of Industry Trade and Labor and "Beneficiary Enterprise" status from the Israeli Income Tax Authority, which makes the Company eligible for tax benefits under the Israeli Law for Encouragement of Capital Investments, 1959. Under the terms of the Beneficiary Enterprise program, income that is attributable to the Company's operations in Yokneam, Israel, will be exempt from income tax for a period of ten years commencing when the Company first generates taxable income (after setting off its losses from prior years). Income that is attributable to the Company's operations in Tel Aviv, Israel, will be exempt from income tax for a period of two years commencing when the Company first generates taxable income (after setting off its losses from prior years), and will be subject to a reduced income tax rate (generally between 10% and the current corporate tax rate, depending on the percentage of foreign investment in the Company) for five to eight years beginning fiscal year 2013. The corporate tax rate was 25% in 2013 and will be 26.5% in 2014. The Beneficiary Enterprise tax holiday associated with the Company's Yokneam and Tel Aviv operations began in 2011. The tax holiday for the Company's Yokneam operations will expire in 2020 and the Tax Holiday for the Company's Tel-Aviv operations will expire between the years 2017 and 2020. The tax holiday has resulted in a cash tax savings of $6.4 million and $33.2 million in 2013 and 2012 respectively, increasing diluted earnings per share by approximately $0.15 and $0.76 in the year ended December 31, 2013 and 2012.
	As a multinational corporation, the Company conducts business in many countries and is subject to taxation in many jurisdictions. The taxation of the Company's business is subject to the application of multiple and sometimes conflicting tax laws and regulations as well as multinational tax conventions. The application of tax laws and regulations is subject to legal and factual interpretation, judgment and uncertainty. Tax laws themselves are subject to change as a result of changes in fiscal policy, changes in legislation and the evolution of regulations and court rulings. Consequently, taxing authorities may impose tax assessments or judgments against the Company that could materially impact its tax liability and/or its effective income tax rate.
	As of December 31, 2013 and 2012, unrecognized tax benefits totaled approximately $23.6 million and $9.7 million, respectively, which would reduce the Company's income tax expense and effective tax rate, if recognized.
	The following summarizes the activity related to the Company's unrecognized tax benefits:
		Year Ended
		December 31,
		2013			2012
		(in thousands)
	Gross unrecognized tax benefits, beginning of the period	$	9,716		$	4,063
Increases in tax positions for prior years		11,481			120
Decreases in tax positions for prior years		(11	)		—
Increases in tax positions for current year		3,029			5,533
Decreases in tax positions for current year		(630	)		—
Gross unrecognized tax benefits, end of the period	$	23,585		$	9,716
It is the Company's policy to classify accrued interest and penalties as part of the accrued unrecognized tax benefits liability and record the expense in the provision for income taxes. For the years ended December 31, 2013, 2012 and 2011, the amount of accrued interest or penalties related to unrecognized tax benefit totaled $0.6 million, $0.4 million and $0.2 million, respectively. For unrecognized tax benefits that existed at December 31, 2013, the Company does not anticipate any significant changes within the next twelve months.
The Company files income tax returns in the U.S. federal jurisdictions, and various states and foreign jurisdictions. The 2009 through 2012 tax years are open and may be subject to potential examination in one or more jurisdictions.

GEOGRAPHIC_INFORMATION_AND_REV

GEOGRAPHIC INFORMATION AND REVENUES BY PRODUCT GROUP:	12 Months Ended
	Dec. 31, 2013
GEOGRAPHIC INFORMATION AND REVENUES BY PRODUCT GROUP:	'
GEOGRAPHIC INFORMATION AND REVENUES BY PRODUCT GROUP:	'
	NOTE 13—GEOGRAPHIC INFORMATION AND REVENUES BY PRODUCT GROUP:
	The Company operates in one reportable segment, the development, manufacturing, marketing and sales of interconnect products. The Company's chief operating decision maker is the chief executive officer. Since the Company operates in one segment, all financial segment information can be found in the accompanying Consolidated Financial Statements.
	Revenues by geographic region are as follows:
		Year Ended December 31,
		2013		2012		2011
		(in thousands)
	United States	$	175,914	$	220,681	$	120,385
	China		67,517		102,957		33,681
	Israel		2,479		2,483		1,867
	Europe		51,973		62,788		39,566
	Other Americas		16,869		26,000		15,912
	Other Asia		76,107		85,890		47,840
	Total revenue	$	390,859	$	500,799	$	259,251
	Revenues are attributed to countries based on the geographic location of the customers. Intercompany sales between geographic areas have been eliminated.
	Property and equipment, net by geographic location are as follows:
		Year Ended
		December 31,
		2013		2012
		(in thousands)
	Israel	$	65,883	$	61,388
	United States		3,094		987
	Other		1,838		—
	Total property and equipment, net	$	70,815	$	62,375
	Property and equipment, net is attributed to the geographic location in which it is located.
	Revenues by product group are as follows:
		Year Ended December 31,
		2013		2012		2011
		(in thousands)
	ICs	$	56,817	$	95,103	$	46,564
	Boards		119,399		155,670		98,004
	Switch systems		145,184		168,231		76,398
	Cables, accessories and other		69,459		81,795		38,285
	Total revenue	$	390,859	$	500,799	$	259,251

OTHER_INCOME_NET

OTHER INCOME, NET:	12 Months Ended
	Dec. 31, 2013
OTHER INCOME, NET:	'
OTHER INCOME, NET:	'
	NOTE 14—OTHER INCOME, NET:
	Other income, net, is summarized in the following table:
		Year Ended December 31,
		2013			2012			2011
		(in thousands)
	Interest income and gain on sale of investments, net	$	1,738		$	1,699		$	630
	Foreign exchange gain (loss)		(309	)		(294	)		374
	Other		(201	)		(146	)		(245	)
	Total other income, net	$	1,228		$	1,259		$	759

SCHEDULE_II_CONSOLIDATED_VALUA

SCHEDULE II - CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS	12 Months Ended
	Dec. 31, 2013
SCHEDULE II - CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS	'
SCHEDULE II - CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS	'
	SCHEDULE II—CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS
	MELLANOX TECHNOLOGIES, LTD.
	Description:	Balance at		Charged (Credited)			Deductions			Balance at
		Beginning of		to Costs			(Recovery)			End of Year
		Year		and Expenses
		(in thousands)
	Year ended December 31, 2013:
	Deducted from asset accounts:
	Allowance for doubtful accounts	$	639	$	—		$	—		$	639
	Allowance for sales returns and adjustments		79		(79	)		—			—
	Income tax valuation allowance		32,073		—			(2,945	)		29,128
	Total	$	32,791	$	(79	)	$	(2,945	)	$	29,767
	Year ended December 31, 2012:
	Deducted from asset accounts:
	Allowance for doubtful accounts	$	557	$	82		$	—		$	639
	Allowance for sales returns and adjustments		337		(258	)		—			79
	Income tax valuation allowance		28,491		3,582			—			32,073
	Total	$	29,385	$	3,406		$	—		$	32,791
	Year ended December 31, 2011:
	Deducted from asset accounts:
	Allowance for doubtful accounts	$	402	$	155		$	—		$	557
	Allowance for sales returns and adjustments		75		262			—			337
	Income tax valuation allowance		3,245		25,267			(21	)		28,491
	Total	$	3,722	$	25,684		$	(21	)	$	29,385

THE_COMPANY_AND_SUMMARY_OF_SIG1

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Policies)	12 Months Ended
	Dec. 31, 2013
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:	'
Principles of presentation	'
	Principles of presentation
	The consolidated financial statements include the Company's accounts as well as those of its wholly owned subsidiaries after the elimination of all significant intercompany balances and transactions.
	On July 1, 2013, the Company completed its acquisition of a privately held company, IPtronics A/S ("IPtronics"), and on August 15, 2013, the Company completed its acquisition of a privately held company, Kotura, Inc. ("Kotura"). The consolidated financial statements include the results of operations of IPtronics and Kotura commencing as of the their respective acquisition dates.
	In February 2011, the Company completed its acquisition of Voltaire Ltd. ("Voltaire"), an Israeli-based public company. The consolidated financial statements include the results of operations of Voltaire commencing as of the acquisition date.
Risks and uncertainties	'
	Risks and uncertainties
	The Company is subject to all of the risks inherent in a company which operates in the dynamic and competitive semiconductor industry. Significant changes in any of the following areas could have a materially adverse impact on the Company's financial position and results of operations; unpredictable volume or timing of customer orders; ordered product mix; the sales outlook and purchasing patterns of the Company's customers based on consumer demands and general economic conditions; loss of one or more of the Company's customers; decreases in the average selling prices of products or increases in the average cost of finished goods; the availability, pricing and timeliness of delivery of components used in the Company's products; reliance on a limited number of subcontractors to manufacture, assemble, package and production test the Company's products; the Company's ability to successfully develop, introduce and sell new or enhanced products in a timely manner; product obsolescence and the Company's ability to manage product transitions; the timing of announcements or introductions of new products by the Company's competitors, and the Company's ability to successfully integrate acquired businesses.
Use of estimates	'
	Use of estimates
	The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America, ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of net revenue and expenses in the reporting periods. The Company regularly evaluates estimates and assumptions related to revenue recognition, allowances for doubtful accounts, sales returns and allowances, investment valuation, warranty reserves, inventory reserves, share-based compensation expense, long-term asset valuations, goodwill and purchased intangible asset valuation, hedge effectiveness, deferred income tax asset valuation, uncertain tax positions, litigation and other loss contingencies. These estimates and assumptions are based on current facts, historical experience and various other factors that the Company believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of revenue, costs and expenses that are not readily apparent from other sources. The actual results that the Company experiences may differ materially and adversely from the Company's original estimates. To the extent there are material differences between the estimates and actual results, the Company's future results of operations will be affected.
Cash and cash equivalents	'
	Cash and cash equivalents
	The Company considers all highly liquid investments with a maturity of three months or less from the date of purchase to be cash equivalents. Cash and cash equivalents consist of cash on deposit with banks, money market funds, U.S. government agency discount notes, foreign government bonds, corporate bonds and commercial paper.
Short-term investments	'
	Short-term investments
	The Company's short-term investments are classified as available-for-sale securities and are reported at fair value. Unrealized gains or losses are recorded in shareholders' equity and included in other comprehensive income ("OCI"). The Company views its available-for-sale portfolio as available for use in its current operations. Accordingly, the Company has classified all investments in available for sale securities with readily available markets as short-term, even though the stated maturity date may be one year or more beyond the current balance sheet date, because of the intent and ability to sell these securities prior to maturity to meet liquidity needs or as part of a risk management program.
Restricted cash and deposits	'
	Restricted cash and deposits
	The Company maintains certain cash amounts restricted as to withdrawal or use. It maintained a balance of $0.6 million at December 31, 2012, that represented tenants' security deposits restricted due to the tenancy agreements, and $2.6 million at December 31, 2012, that represented security deposits restricted due to foreign exchange management agreements with two banks.
	The Company also maintains certain cash amounts classified as other long-term assets which are restricted as to withdrawal or use over long term. The Company maintained a balance of long-term restricted cash in amount of $3.5 million and $3.4 million at December 31, 2013 and December 31, 2012, respectively.
Fair value of financial instruments	'
	Fair value of financial instruments
	The Company's financial instruments consist of cash equivalents, short-term investments and foreign currency derivative contracts. The fair value of a financial instrument is the amount that would be received in an asset sale or paid to transfer a liability in an orderly transaction between unaffiliated market participants. The Company believes that the carrying amounts of the financial instruments approximate their respective fair values. The Company regularly reviews its investment portfolio to identify and evaluate investments that have indications of possible impairment. Factors considered in determining whether a loss is temporary include: the length of time and extent to which fair value has been lower than the cost basis; the financial condition, credit quality and near-term prospects of the issuer; and whether it is more likely than not that the Company will be required to sell the security prior to any anticipated recovery in fair value. When there is no readily available market data, fair value estimates may be made by the Company, which may not necessarily represent the amounts that could be realized in a current or future sale of these assets.
Derivatives	'
	Derivatives
	The Company recognizes derivative instruments as either assets or liabilities and measures those instruments at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. The Company enters into derivative contracts designated as cash flow hedges. For a derivative instrument designated as a cash flow hedge, the effective portion of the derivative's gain or loss is initially reported as a component of accumulated OCI, and subsequently reclassified into earnings when the hedged exposure affects earnings.
	The Company uses derivative instruments primarily to manage exposures to foreign currency. The Company enters into derivative contracts to manage its exposure to changes in the exchange rate of the NIS against the U.S. dollar. The Company's primary objective in entering these arrangements is to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. The program is not designated for trading or speculative purposes. The Company's derivative contracts expose the Company to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. The Company seeks to mitigate such risk by limiting its counterparties to major financial institutions and by spreading the risk across a number of major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored on an ongoing basis.
	The Company uses derivative contracts designated as cash flow hedges to hedge a substantial portion of forecasted operating expenses in NIS. The gain or loss on the effective portion of a cash flow hedge is initially reported as a component of OCI and subsequently reclassified into operating expenses in the same period in which the hedged operating expenses are recognized, or reclassified into other income, net, if the hedged transaction becomes probable of not occurring. Any gain or loss after a hedge is de-designated because it is no longer probable of occurring or related to an ineffective portion of a hedge, as well as any amount excluded from the Company's hedge effectiveness, is recognized as other income, net immediately.
Concentration of credit risk	'
	Concentration of credit risk
	Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents, short-term investments and accounts receivable. Cash equivalents and short-term investments balances are maintained with high quality financial institutions, the composition and maturities of which are regularly monitored by management. The Company's accounts receivable are derived from revenue earned from customers located in North America, Europe and Asia. The Company performs ongoing credit evaluations of its customers' financial condition and, generally, requires no collateral from its customers. The Company maintains an allowance for doubtful accounts receivable based upon the expected collectibility of accounts receivable. The Company reviews its allowance for doubtful accounts quarterly by assessing individual accounts receivable over a specific aging and amount, and all other balances based on historical collection experience and an economic risk assessment. If the Company determines that a specific customer is unable to meet its financial obligations to the Company, the Company provides an allowance for credit losses to reduce the receivable to the amount management reasonably believes will be collected.
	The following table summarizes the revenues from customers (including original equipment manufacturers) in excess of 10% of the total revenues:
		Year Ended
		December 31,
		2013			2012			2011
	IBM		17	%		19	%		17	%
	Hewlett-Packard		13	%		20	%		19	%
	The following table summarizes accounts receivable balances in excess of 10% of total accounts receivable:
		December 31,			December 31,
		2013			2012
	IBM		10	%		21	%
	Hewlett Packard		11	%		*
	*
	Less than 10%
Inventory	'
	Inventory
	Inventory includes finished goods, work-in-process and raw materials. Inventory is stated at the lower of cost (principally standard cost which approximates actual cost on a first-in, first-out basis) or market value. Reserves for potentially excess and obsolete inventory are made based on management's analysis of inventory levels, future sales forecasts and market conditions. Once established, the original cost of the Company's inventory less the related inventory reserve represents the new cost basis of such products.
Property and equipment	'
	Property and equipment
	Property and equipment are stated at cost, net of accumulated depreciation. Depreciation and amortization is generally calculated using the straight-line method over the estimated useful lives of the related assets, which is three to five years for computers, software license rights and other electronic equipment, and seven to fifteen years for office furniture and equipment. Leasehold improvements and assets acquired under capital leases are amortized on a straight-line basis over the term of the lease, or the useful lives of the assets, whichever is shorter. Maintenance and repairs are charged to expense as incurred, and improvements are capitalized. When assets are retired or otherwise disposed of, the cost and accumulated depreciation or amortization are removed from the accounts and any resulting gain or loss is reflected in the results of operations in the period realized.
	The Company incurs costs for the fabrication of masks used by its contract manufacturers to manufacture wafers that incorporate its products. The Company capitalizes the costs of fabrication masks that are reasonably expected to be used during production manufacturing. These amounts are included within property and equipment and are generally depreciated over a period of 12 months to cost of revenue. If it does not reasonably expect to use the fabrication mask during production manufacturing, it expenses the related mask costs to research and development in the period in which the costs are incurred.
Business combinations	'
	Business combinations
	The Company accounts for business combinations using the acquisition method of accounting. The Company determines the recognition of intangible assets based on the following criteria: (i) the intangible asset arises from contractual or other rights; or (ii) the intangible asset is separable or divisible from the acquired entity and capable of being sold, transferred, licensed, returned or exchanged. The Company allocates the purchase price of business combinations to the tangible assets, liabilities and intangible assets acquired, including in-process research and development ("IPR&D"), based on their estimated fair values. The excess purchase price over those fair values is recorded as goodwill. The process of estimating the fair values requires significant estimates, especially with respect to intangible assets. Critical estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from customer contracts, customer lists and distribution agreements, acquired developed technologies, expected costs to develop IPR&D into commercially viable products, estimated cash flows from projects when completed and discount rates. The Company estimates fair value based upon assumptions that are believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Other estimates associated with the accounting for acquisitions may change as additional information becomes available regarding the assets acquired and liabilities assumed.
Goodwill and intangible assets	'
	Goodwill and intangible assets
	Goodwill represents the excess of the cost of acquired businesses over the fair market value of their identifiable net assets. The Company conducts a goodwill impairment qualitative assessment during the fourth quarter of each fiscal year or more frequently if facts and circumstances indicate that goodwill may be impaired. The goodwill impairment qualitative assessment requires the Company to perform an assessment to determine if it is more likely than not that the fair value of the business is less than its carrying amount. The qualitative assessment considers various factors, including the macroeconomic environment, industry and market specific conditions, market capitalization, stock price, financial performance, earnings multiples, budgeted-to-actual revenue performance from prior year, gross margin and cash flow from operating activities and issues or events specific to the business. If adverse qualitative trends are identified that could negatively impact the fair value of the business, the Company performs a "two step" goodwill impairment test. The "step one" goodwill impairment test requires the Company to estimate the fair value of its business and certain assets and liabilities. "Step two" of the process is only performed if a potential impairment exists in "step one" and involves determining the difference between the fair value of the reporting unit's net assets other than goodwill to the fair value of the reporting unit. If the difference is less than the net book value of goodwill, an impairment exists and is recorded. As of December 31, 2013, the Company's assessment of goodwill impairment indicated that goodwill was not impaired.
	Intangible assets primarily represent acquired intangible assets including developed technology, customer relationships and IPR&D. The Company amortizes its intangible assets over their useful lives using a method that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise used, or, if that pattern cannot be reliably determined, using a straight-line amortization method. The Company capitalizes IPR&D projects acquired as part of a business combination. On completion of each project, IPR&D assets are reclassified to developed technology and amortized over their estimated useful lives. If any of the IPR&D projects are abandoned, the Company would impair the related IPR&D asset.
	Intangible assets are tested for impairment when indicators of impairment exist. The Company first assesses qualitative factors to determine if it is more likely than not that an indefinite-lived intangible asset is impaired and whether it is necessary to perform a quantitative impairment test. The qualitative assessment considers various factors, including reductions in demand, the abandonment of IPR&D projects or significant economic slowdowns in the semiconductor industry and macroeconomic environment. If adverse qualitative trends are identified that could negatively impact the fair value of the asset, then quantitative impairment tests are performed to compare the carrying value of the asset to its undiscounted expected future cash flows. If this test indicates that there is impairment, the impaired asset is written down to fair value, which is typically calculated using: (i) quoted market prices or (ii) discounted expected future cash flows utilizing an appropriate discount rate. Impairment is based on the excess of the carrying amount over the fair value of those assets. As of December 31, 2013, the Company's assessment of intangibles indicated that intangible assets were not impaired.
Investments	'
	Investments
	The Company has equity investments in privately-held companies. These investments are recorded at cost reduced by any impairment write-downs because the Company does not have the ability to exercise significant influence over the operating and financial policies of the company. The investments are included in other long-term assets on the accompanying balance sheets. The Company monitors the investments and if facts and circumstances indicate an investment may be impaired, then it conducts an impairment test of its investment. To determine if the investment is recoverable, it reviews the privately-held company's revenue and earnings trends relative to pre-defined milestones and overall business prospects, the general market conditions in its industry and other factors related to its ability to remain in business, such as liquidity and receipt of additional funding.
Impairment of long-lived assets	'
	Impairment of long-lived assets
	Long-lived assets include equipment and furniture and fixtures. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. If the sum of the expected future cash flows (undiscounted and without interest charges) from the long-lived assets is less than the carrying amount of such assets, an impairment loss would be recognized, and the assets would be written down to their estimated fair values. The Company reviews for possible impairment on a regular basis.
Revenue recognition	'
	Revenue recognition
	The Company recognizes revenue from the sales of products when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the price is fixed or determinable; and (4) collection is reasonably assured. The Company uses a binding purchase order or a signed agreement as evidence of an arrangement. Delivery occurs when goods are shipped and title and risk of loss transfer to the customer. The Company's standard arrangement with its customers typically includes freight-on-board shipping point, no right of return and no customer acceptance provisions. The customer's obligation to pay and the payment terms are set at the time of shipment and are not dependent on the subsequent resale of the product. The Company determines whether collectibility is probable on a customer-by-customer basis. When assessing the probability of collection, the Company considers the number of years the customer has been in business and the history of the Company's collections. Customers are subject to a credit review process that evaluates the customers' financial positions and ultimately their ability to pay. If it is determined at the outset of an arrangement that collection is not probable, no product is shipped and no revenue is recognized unless cash is received in advance.
	The Company maintains inventory, or hub arrangements with certain customers. Pursuant to these arrangements the Company delivers products to a customer or a designated third party warehouse based upon the customer's projected needs, but does not recognize product revenue unless and until the customer reports it has removed the Company's product from the warehouse to be incorporated into its end products.
	Multiple Element Arrangements Excluding Software
	For revenue arrangements that contain multiple deliverables, judgment is required to properly identify the accounting units of the transactions and to determine the manner in which revenue should be allocated among the accounting units. Moreover, judgment is used in interpreting the commercial terms and determining when all criteria of revenue recognition have been met for each deliverable in order for revenue recognition to occur in the appropriate accounting period. While changes in the allocation of the arrangement consideration between the units of accounting will not affect the amount of total revenue recognized for a particular sales arrangement, any material changes in these allocations could impact the timing of revenue recognition, which could affect its results of operations. When the Company enters into an arrangement that includes multiple elements, the allocation of value to each element is derived based on management's best estimate of selling price when vendor specific evidence or third party evidence is unavailable.
	Multiple Element Arrangements Including Software
	For multiple element arrangements that include a combination of hardware, software and services, such as post-contract customer support, the arrangement consideration is first allocated among the accounting units before revenue recognition criteria are applied. If an arrangement includes undelivered elements that are not essential to the functionality of the delivered elements, the Company defers revenue for the undelivered elements based on their fair value. The fair value for undelivered software elements is based on vendor specific evidence. If the undelivered elements are essential to the functionality of the delivered elements, no revenue is recognized. The revenues from fixed-price support or maintenance contracts, including extended warranty contracts and software post-contract customer support agreements are recognized ratably over the contract period and the costs associated with these contracts are recognized as incurred.
	Distributor Revenue
	A portion of the Company's sales are made to distributors under agreements which contain a limited right to return unsold product and price protection provisions. The Company recognizes revenue from these distributors based on the sell-through method using inventory and point of sale information provided by the distributor. Additionally, the Company maintains accruals and allowances for price protection and cooperative marketing programs. The Company classifies the costs of these programs based on the identifiable benefit received as either a reduction of revenue, a cost of revenues or an operating expense.
	Deferred Revenue and Income
	The Company defers revenue and income when advance payments are received from customers before performance obligations have been completed and/or services have been performed.
	Shipping and Handling
	Costs incurred for shipping and handling expenses to customers are recorded as cost of revenues. To the extent these amounts are billed to the customer in a sales transaction, the Company records the shipping and handling fees as revenue.
Product warranty	'
	Product warranty
	The Company typically offers a limited warranty for its products for periods up to three years. The Company accrues for estimated returns of defective products at the time revenue is recognized based on historical activity. The determination of these accruals requires the Company to make estimates of the frequency and extent of warranty activity and estimated future costs to either replace or repair the products under warranty. If the actual warranty activity and/or repair and replacement costs differ significantly from these estimates, adjustments to record additional cost of revenues may be required in future periods. Changes in the Company's liability for product warranty during the years ended December 31, 2013 and 2012 are as follows:
		December 31,
		2013			2012
		(In thousands)
	Balance, beginning of the period	$	4,447		$	1,097
	New warranties issued during the period		9,334			5,697
	Reversal of warranty reserves		(1,332	)		(813	)
	Settlements during the period		(8,251	)		(1,534	)
	Balance, end of the period	$	4,198		$	4,447
Research and development	'
	Research and development
	Costs incurred in research and development are charged to operations as incurred. The Company expenses all costs for internally developed patents as incurred. Total research and development operating expenses reported in the Consolidated Statement of Operations for the years ended December 31, 2013, 2012 and 2011 were $168.7 million, $138.9 million and $92.5 million, respectively.
Advertising	'
	Advertising
	Costs related to advertising and promotion of products are charged to sales and marketing expense as incurred. Advertising expense was approximately $0.9 million, $1.1 million and $0.4 million for the years ended December 31, 2013, 2012 and 2011, respectively.
Share-based compensation	'
	Share-based compensation
	The Company accounts for share-based compensation expense based on the estimated fair value of the equity awards as of the grant dates. The fair value of RSUs is based on the closing market price of our ordinary shares on the date of grant. The Company estimates the fair value of share option awards using the Black-Scholes option valuation model, which requires the input of subjective assumptions including the expected share price volatility and the calculation of expected term, as well as the fair value of the underlying ordinary share on the date of grant, among other inputs.
	The Company bases its estimate of expected volatility on the of historical volatility of the Company shares. The Company calculates the expected term of its option awards using the simplified method as prescribed by the authoritative guidance. The expected term for newly granted awards is approximately 6.25 years.
	Share compensation expense is recognized on a straight-line basis over each recipient's requisite service period, which is generally the vesting period. Share-based compensation expense is recorded net of estimated forfeitures. Forfeitures are estimated at the time of grant and this estimate is revised, if necessary, in subsequent periods. If the actual number of forfeitures differs from the estimate, adjustments may be required to share-based compensation expense in future periods.
Comprehensive income (loss)	'
	Comprehensive income (loss)
	Accumulated other comprehensive income (loss), net of tax on the consolidated balance sheets at December 31, 2013 and 2012, represents the accumulated unrealized gains (losses) on available-for-sale securities, and the accumulated unrealized gains (losses) related to derivative instruments accounted for as cash flow hedges. The amount of income tax expense allocated to unrealized gain on available-for-sale securities and derivative instruments was not material at December 31, 2013 and 2012.
Foreign currency translation	'
	Foreign currency translation
	The Company uses the U.S. dollar as its functional currency. Foreign currency assets and liabilities are remeasured into U.S. dollars at the end-of-period exchange rates except for non-monetary assets and liabilities, which are remeasured at historical exchange rates. Revenue and expenses are remeasured each day at the exchange rate in effect on the day the transaction occurred, except for those expenses related to balance sheet amounts, which are remeasured at historical exchange rates. Gains or losses from foreign currency transactions are included in the Consolidated Statements of Operations as part of "Other income (loss), net."
Net income per share	'
	Net income per share
	Basic and diluted net income per share are computed by dividing the net income for the period by the weighted average number of ordinary shares outstanding during the period. The calculation of diluted net income per share excludes potential ordinary shares if the effect is anti-dilutive. Potential ordinary shares are comprised of incremental ordinary shares issuable upon the exercise of share options.
	The following table sets forth the computation of basic and diluted net income per share for the periods indicated:
		Year Ended December 31,
		2013			2012			2011
		(In thousands, except per share
		data)
	Net income (loss)	$	(22,861	)	$	111,380		$	9,977
	Basic and diluted shares:
	Weighted average ordinary shares outstanding used to compute basic net income (loss) per share		43,421			41,308			36,263
	Dilutive effect of employee share option and purchase plan		—			2,593			2,299
	Shares used to compute diluted net income (loss) per share		43,421			43,901			38,562
	Net income (loss) per share—basic	$	(0.53	)	$	2.7		$	0.28
	Net income (loss) per share—diluted	$	(0.53	)	$	2.54		$	0.26
	The Company excluded 0.8 million, 0.3 million and 0.5 million outstanding shares for the years ended December 31, 2013, 2012 and 2011, respectively, from the computation of diluted net income per share because including them would have had an anti-dilutive effect.
Segment reporting	'
	Segment reporting
	The Company has one reportable segment: the development, manufacturing, marketing and sales of interconnect products.
Income taxes	'
	Income taxes
	To prepare the Company's consolidated financial statements, the Company estimates its income taxes in each of the jurisdictions in which it operates. This process involves estimating the Company's actual tax exposure together with assessing temporary differences resulting from the differing treatment of certain items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included within the Company's consolidated balance sheet.
	The Company must also make judgments regarding the realizability of deferred tax assets. The carrying value of the Company's net deferred tax assets is based on its belief that it is more likely than not that the Company will generate sufficient future taxable income in certain jurisdictions to realize these deferred tax assets. A valuation allowance has been established for deferred tax assets which the Company does not believe meet the "more likely than not" criteria. The Company's judgments regarding future taxable income may change due to changes in market conditions, changes in tax laws, tax planning strategies or other factors. If the Company's assumptions and consequently its estimates change in the future, the valuation allowances it has established may be increased or decreased, resulting in a respective increase or decrease in income tax expense. The Company's effective tax rate is highly dependent upon the geographic distribution of its worldwide earnings or losses, the tax regulations and tax holidays in each geographic region, the availability of tax credits and carryforwards, and the effectiveness of its tax planning strategies.
	Income tax positions must meet a more-likely-than-not recognition threshold to be recognized. Income tax positions that previously failed to meet the more-likely-than-not threshold are recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not threshold are derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits within the consolidated statements of income as income tax expense.
Recent accounting pronouncements	'
	Recent accounting pronouncements
	Effective January 1, 2013, the Company adopted the authoritative guidance, issued by the Financial Accounting Standards Board ("FASB") in February 2013, related to reclassifications out of accumulated other comprehensive income ("OCI"). Under this guidance, an entity is required to report, in one place, information about reclassifications out of accumulated OCI and changes in its accumulated OCI balances. For significant items reclassified out of accumulated OCI to net income in their entirety in the same reporting period, reporting is required about the effect of the reclassifications on the respective line items in the statement where net income is presented. For items that are not reclassified to net income in their entirety in the same reporting period, a cross reference to other disclosures currently required under GAAP is required in the notes to the financial statements. The Company elected to present the information in the notes to the Company's unaudited condensed consolidated financial statements. The adoption of this guidance had no impact on the Company's consolidated financial statements.
	In July 2013, the FASB issued authoritative guidance which requires that an unrecognized tax benefit, or portion of an unrecognized tax benefit, be presented as a reduction of a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward. If an applicable deferred tax asset is not available or a company does not expect to use the applicable deferred tax asset, the unrecognized tax benefit should be presented as a liability in the financial statements and should not be combined with an unrelated deferred tax asset. This guidance is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date; however, retrospective application is permitted. The Company will provide the required disclosures beginning in the first quarter of fiscal year 2014 and does not expect the adoption of this guidance to have a significant impact on its consolidated results of operations and financial condition.

THE_COMPANY_AND_SUMMARY_OF_SIG2

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Tables)	12 Months Ended
	Dec. 31, 2013
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:	'
Schedule of revenues and accounts receivable from customers	'
	The following table summarizes the revenues from customers (including original equipment manufacturers) in excess of 10% of the total revenues:
		Year Ended
		December 31,
		2013			2012			2011
	IBM		17	%		19	%		17	%
	Hewlett-Packard		13	%		20	%		19	%
	The following table summarizes accounts receivable balances in excess of 10% of total accounts receivable:
		December 31,			December 31,
		2013			2012
	IBM		10	%		21	%
	Hewlett Packard		11	%		*
	*
	Less than 10%
Schedule of changes in the entity's liability for product warranty	'
		December 31,
		2013			2012
		(In thousands)
	Balance, beginning of the period	$	4,447		$	1,097
	New warranties issued during the period		9,334			5,697
	Reversal of warranty reserves		(1,332	)		(813	)
	Settlements during the period		(8,251	)		(1,534	)
	Balance, end of the period	$	4,198		$	4,447
Schedule of computation of basic and diluted net income per share	'
		Year Ended December 31,
		2013			2012			2011
		(In thousands, except per share
		data)
	Net income (loss)	$	(22,861	)	$	111,380		$	9,977
	Basic and diluted shares:
	Weighted average ordinary shares outstanding used to compute basic net income (loss) per share		43,421			41,308			36,263
	Dilutive effect of employee share option and purchase plan		—			2,593			2,299
	Shares used to compute diluted net income (loss) per share		43,421			43,901			38,562
	Net income (loss) per share—basic	$	(0.53	)	$	2.7		$	0.28
	Net income (loss) per share—diluted	$	(0.53	)	$	2.54		$	0.26

BALANCE_SHEET_COMPONENTS_Table

BALANCE SHEET COMPONENTS: (Tables)	12 Months Ended
	Dec. 31, 2013
BALANCE SHEET COMPONENTS:	'
Schedule of balance sheet components	'
		December 31,			December 31,
		2013			2012
		(In thousands)
	Accounts receivable, net:
	Accounts receivable	$	71,205		$	59,155
	Less: allowance for doubtful accounts		(639	)		(639	)
		$	70,566		$	58,516
	Inventories:
	Raw materials	$	4,385		$	6,240
	Work-in-process		12,187			4,667
	Finished goods		19,391			32,411
		$	35,963		$	43,318
	Deferred taxes and other current assets:
	Prepaid expenses	$	5,929		$	5,346
	Derivative contracts receivable		1,396			2,942
	Deferred taxes		7,336			3,813
	VAT receivable		1,900			3,000
	Other		1,020			515
		$	17,581		$	15,616
	Property and equipment, net:
	Computer equipment and software	$	91,368		$	80,203
	Furniture and fixtures		3,809			3,890
	Leasehold improvements		31,608			26,590
			126,785			110,683
	Less: Accumulated depreciation and amortization		(55,970	)		(48,308	)
		$	70,815		$	62,375
	Deferred taxes and other long-term assets:
	Equity investments in private companies	$	7,548		$	4,424
	Deferred taxes		7,155			2,083
	Restricted cash		3,514			3,388
	Other assets		2,396			524
		$	20,613		$	10,419
	Accrued liabilities:
	Payroll and related expenses	$	29,350		$	37,067
	Accrued expenses		12,315			10,104
	Product warranty liability		4,198			4,447
	Other		6,725			6,261
		$	52,588		$	57,879
	Other long-term liabilities:
	Income tax payable	$	13,026		$	8,838
	Deferred rent		3,072			2,797
	Other		993			—
		$	17,091		$	11,635

BUSINESS_COMBINATION_Tables

BUSINESS COMBINATION: (Tables)	12 Months Ended
	Dec. 31, 2013
IPtronics and Kotura	'
BUSINESS COMBINATION	'
Schedule of purchase consideration related to each acquisition	'
	Company Acquired	Cash			Cash Assumed			Net Cash Paid
		Consideration
		Paid
		(in thousands)
	IPtronics	$	44,925		$	2,077		$	42,848
	Kotura.		80,772			101			80,671
	Total	$	125,697		$	2,178		$	123,519
Summary of allocation of the total purchase price	'
		IPtronics			Kotura			Total
		(in thousands)
	Current assets, net of cash	$	2,173		$	5,252		$	7,425
	Other long-term assets		974			10,603			11,577
	Intangible assets		17,495			27,604			45,099
	Goodwill		25,725			40,948			66,673
	Total assets		46,367			84,407			130,774
	Current liabilities		(2,668	)		(3,357	)		(6,025	)
	Long-term liabilities		(851	)		(379	)		(1,230	)
	Total liabilities		(3,519	)		(3,736	)		(7,255	)
	Total preliminary purchase price allocation	$	42,848		$	80,671		$	123,519
Schedule of intangible assets acquired and their respective estimated remaining useful life	'
		Fair value			Weighted
					Average
					Useful life
		(in thousands)			(in years)
	Purchased intangible assets:
	Licensed technology	$	135		6
	Developed technology		27,827		5
	In-process research and development		13,764		—
	Customer relationship		2,420		2-Jan
	Backlog		953		Less than 1
	Total purchased intangible assets	$	45,099
Summary of significant assumptions underlying the valuations of IPR&D at acquisition	'
	Company	Development Projects		Average			Estimated			Risk			Fair value
				Estimated			cost			Adjusted
				time			to complete			Discount
				to complete						Rate
				(in months)			(in thousands)			(%)			(in thousands)
	IPtronics	Modulator drivers—4x25Gb/s			18		$	9,549			19.5	%	$	4,121
	Kotura	Silicon photonics modulator—4x25Gb/s			18			17,210			16.5	%		9,643
							$	26,759					$	13,764
Schedule of unaudited pro forma information	'
	As a result, actual results will differ from the unaudited pro forma information presented (in thousands, except per share data):
		Year Ended
		December 31, 2013			December 31, 2012
		(in thousands, except per share data)
	Pro forma net revenue	$	402,530		$	522,304
	Pro forma net income (loss)	$	(30,132	)	$	100,177
	Pro forma net income (loss) per share basic	$	(0.69	)	$	2.43
	Pro forma net income (loss) per share diluted	$	(0.69	)	$	2.27
Voltaire Ltd	'
BUSINESS COMBINATION	'
Summary of allocation of the total purchase price	'
	The Company's allocation of the total purchase price is summarized below (in thousands):
	Purchase price allocation:
	Current assets	$	52,131
	Other long-term assets		10,875
	Intangible assets		36,052
	Goodwill		132,885
	Total assets		231,943
	Current liabilities		(11,369	)
	Long-term liabilities		(6,606	)
	Total liabilities		(17,975	)
	Total purchase price allocation	$	213,968
Schedule of intangible assets acquired and their respective estimated remaining useful life	'
		Fair value			Weighted
					average
					useful life
		(in thousands)			(in years)
	Developed technology	$	20,378		3-Feb
	In-process research and development		2,754		—
	Customer relationship		10,956		5-Apr
	Customer contract		1,529		2
	Backlog		435		Less than 1
	Total acquired intangible assets	$	36,052

FAIR_VALUE_MEASUREMENTS_Tables

FAIR VALUE MEASUREMENTS: (Tables)	12 Months Ended
	Dec. 31, 2013
FAIR VALUE MEASUREMENTS:	'
Schedule of the fair value hierarchy of the Company's financial assets and liabilities measured at fair value	'
	The following table represents the fair value hierarchy of the Company's financial assets and liabilities measured at fair value as of December 31, 2013.
		Level 1		Level 2		Total
		(in thousands)
	Money market funds	$	20,000	$	—	$	20,000
	Certificates of deposit		—		67,769		67,769
	U.S. Government and agency securities		—		69,879		69,879
	Commercial paper		—		33,606		33,606
	Corporate bonds		—		92,274		92,274
	Derivative contracts		—		1,396		1,396
	Total financial assets	$	20,000	$	264,924	$	284,924
	The following table represents the fair value hierarchy of the Company's financial assets and liabilities measured at fair value as of December 31, 2012.
		Level 1		Level 2		Total
		(in thousands)
	Certificates of deposit	$	—	$	90,431	$	90,431
	U.S. Government and agency securities		—		115,129		115,129
	Commercial paper		—		34,947		34,947
	Corporate bonds		—		61,462		61,462
	Foreign government bonds		—		7,530		7,530
	Derivative contracts		—		2,942		2,942
	Total financial assets	$	—	$	312,441	$	312,441

INVESTMENTS_Tables

INVESTMENTS: (Tables)	12 Months Ended
	Dec. 31, 2013
INVESTMENTS:	'
Schedule of cash, cash equivalents and short-term investments	'
		December 31, 2013
		Amortized			Unrealized		Unrealized			Estimated
		Cost			Gains		Losses			Fair Value
		(in thousands)
	Cash	$	43,164		$	—	$	—		$	43,164
	Money market funds		20,000			—		—			20,000
	Certificates of deposit		67,775			1		(7	)		67,769
	U.S. Government and agency securities		69,859			22		(2	)		69,879
	Commercial paper		33,602			9		(5	)		33,606
	Corporate bonds		92,298			16		(40	)		92,274
	Total investments	$	326,698		$	48	$	(54	)	$	326,692
	Less amounts classified as cash and cash equivalents		(63,164	)		—		—			(63,164	)
		$	263,534		$	48	$	(54	)	$	263,528
		December 31, 2012
		Amortized			Unrealized		Unrealized			Estimated
		Cost			Gains		Losses			Fair Value
		(in thousands)
	Cash	$	110,148		$	—	$	—		$	110,148
	Certificates of deposit		90,437			1		(7	)		90,431
	U.S. Government and agency securities		115,179			9		(59	)		115,129
	Commercial paper		34,977			—		(30	)		34,947
	Corporate bonds		61,543			3		(84	)		61,462
	Foreign government bonds		7,511			19		—			7,530
	Total investments	$	419,795		$	32	$	(180	)	$	419,647
	Less amounts classified as cash and cash equivalents		(117,054	)		—		—			(117,054	)
		$	302,741		$	32	$	(180	)	$	302,593
Schedule of contractual maturities of short-term investments	'
		December 31, 2013					December 31, 2012
		Amortized			Estimated		Amortized			Estimated
		Cost			Fair Value		Cost			Fair Value
		(in thousands)
	Due in less than one year	$	190,172		$	190,189	$	172,941		$	172,880
	Due in one to three years		73,362			73,339		129,800			129,713
		$	263,534		$	263,528	$	302,741		$	302,593

GOODWILL_AND_INTANGIBLE_ASSETS1

GOODWILL AND INTANGIBLE ASSETS: (Tables)	12 Months Ended
	Dec. 31, 2013
GOODWILL AND INTANGIBLE ASSETS:	'
Schedule of changes in the carrying amount of goodwill	'
	The following table represents changes in the carrying amount of goodwill (in thousands):
	Balance as of December 31, 2012	$	132,885
	Goodwill from IPtronics acquisition		25,725
	Goodwill from Kotura acquisition		40,948
	Adjustments		—
	Balance as of December 31, 2013	$	199,558
Schedule of carrying amounts of intangible assets	'
	The carrying amounts of intangible assets as of December 31, 2013 were as follows:
		Gross		Accumulated			Net
		Carrying		Amortization			Carrying
		Value					Value
		(in thousands)
	Licensed technology	$	2,344	$	(366	)	$	1,978
	Developed technology		56,190		(24,667	)		31,523
	Customer relationships		13,376		(6,279	)		7,097
	Customer contract		1,529		(1,529	)		—
	Backlog		953		(953	)		—
	Total amortizable intangible assets	$	74,392	$	(33,794	)	$	40,598
	IPR&D		13,764		—			13,764
	Total intangible assets	$	88,156	$	(33,794	)	$	54,362
	The carrying amounts of intangible assets as of December 31, 2012 were as follows:
		Gross		Accumulated			Net
		Carrying		Amortization			Carrying
		Value					Value
		(in thousands)
	Licensed technology	$	946	$	(946	)	$	—
	Developed technology		23,132		(14,695	)		8,437
	Customer relationships		10,956		(3,328	)		7,628
	Customer contract		1,529		(1,460	)		69
	Total intangible assets	$	36,563	$	(20,429	)	$	16,134
Schedule of estimated future amortization expense from amortizable intangible assets	'
	The estimated future amortization expense from amortizable intangible assets is as follows (in thousands):
	2014	$	12,894
	2015		10,786
	2016		9,970
	2017		9,907
	2018 and thereafter		10,805
		$	54,362

DERIVATIVES_AND_HEDGING_ACTIVI1

DERIVATIVES AND HEDGING ACTIVITIES: (Tables)	12 Months Ended
	Dec. 31, 2013
DERIVATIVES AND HEDGING ACTIVITIES:	'
Schedule of fair value of derivative contracts	'
	The fair value of derivative contracts as of December 31, 2013 and December 31, 2012 was as follows:
		Derivative Assets						Derivative
		Reported in Other						Liabilities
		Current Assets						Reported in
								Other
								Current
								Liabilities
		December 31,						December 31,
		2013			2012			2013		2012
		(in thousands)
	Foreign exchange contracts designated as cash flow hedges	$	1,396		$	2,942		$	—	$	—
	Total derivatives designated as hedging instruments	$	1,396		$	2,942		$	—	$	—
Schedule of designated derivative contracts as cash flow hedges and their impact on OCI	'
	The following table represents the balance of derivative contracts designated as cash flow hedges as of December 31, 2013 and 2012, and their impact on OCI for the year ended December 31, 2013 (in thousands):
	December 31, 2012	$	2,942
	Amount of gain recognized in OCI (effective portion)		4,481
	Amount of gain reclassified from OCI to income (effective portion)		(6,027	)
	December 31, 2013	$	1,396
Effect of derivative contracts on the condensed consolidated statement of operations	'
	The impact of derivative contracts on total operating expenses in the years ended December 31, 2013, 2012 and 2011 was:
		Year Ended December 31,
		2013			2012			2011
		(in thousands)
	Gain (loss) on foreign exchange contracts designated as cash flow hedges	$	6,027		$	(893	)	$	1,223

EMPLOYEE_BENEFIT_PLANS_Tables

EMPLOYEE BENEFIT PLANS: (Tables)	12 Months Ended
	Dec. 31, 2013
EMPLOYEE BENEFIT PLANS:	'
Schedule of severance pay details	'
		December 31,
		2013		2012
		(in thousands)
	Accrued severance liability	$	13,418	$	11,821
	Severance assets		10,630		8,907
	Unfunded portion	$	2,788	$	2,914

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES: (Tables)	12 Months Ended
	Dec. 31, 2013
COMMITMENTS AND CONTINGENCIES:	'
Schedule of future minimum payments under non-cancelable operating and capital leases	'
	Year Ended December 31,	Capital			Operating
		Leases			Leases
		(in thousands)
	2014	$	1,313		$	16,333
	2015		1,097			11,851
	2016		492			7,906
	2017		—			6,393
	2018 and beyond		—			10,869
	Total minimum lease payments	$	2,902		$	53,352
	Less: Amount representing interest		(57	)
	Present value of capital lease obligations		2,845
	Less: Current portion		(1,245	)
	Long-term portion of capital lease obligations	$	1,600

SHARE_INCENTIVE_PLANS_Tables

SHARE INCENTIVE PLANS: (Tables)	12 Months Ended
	Dec. 31, 2013
SHARE INCENTIVE PLANS:	'
Summary of share option awards activity under equity incentive plans	'
		Options Outstanding
		Number			Weighted
		of Shares			Average
					Exercise
					Price
	Outstanding at December 31, 2010		5,434,974		$	10.56
	Options granted		1,060,938		$	21.8
	Options exercised		(1,586,577	)	$	8.83
	Options canceled		(202,986	)	$	16.46
	Outstanding at December 31, 2011		4,706,349		$	13.42
	Options granted		879,160		$	70.72
	Options exercised		(2,161,628	)	$	10.96
	Options canceled		(137,959	)	$	28.33
	Outstanding at December 31, 2012		3,285,922		$	29.74
	Options granted		31,653		$	18.3
	Options exercised		(376,588	)	$	14.08
	Options canceled		(134,763	)	$	62.47
	Outstanding at December 31, 2013		2,806,224		$	30.14
Schedule of options outstanding and exercisable by exercise price range	'
		Options Outstanding at							Options Exercisable at
		December 31, 2013							December 31, 2013
	Range of Exercise Price	Number			Weighted		Weighted		Number		Weighted
		Outstanding			Average		Average		Exercisable		Average
					Remaining		Exercise				Exercise
					Contractual		Price				Price
					Life (Years)
	$3.13 - $8.23		323,962			4.44	$	7.83		323,962	$	7.83
	$8.45 - $9.19		286,867			3.51	$	9.04		286,867	$	9.04
	$10.23 - $10.23		556,177			5.19	$	10.23		556,177	$	10.23
	$10.50 - $18.87		295,314			5.63	$	14.43		273,517	$	14.27
	$18.97 - $27.72		299,958			6.54	$	23.06		229,353	$	23.08
	$29.03 - $34.00		312,905			7.54	$	31.22		175,519	$	31.08
	$35.12 - $57.41		274,664			8.1	$	46.39		125,973	$	45.52
	$66.07 - $66.07		162,188			8.44	$	66.07		62,250	$	66.07
	$79.38 - $79.38		20,700			8.83	$	79.38		5,909	$	79.38
	$101.37 - $101.37		273,489			8.39	$	101.37		95,126	$	101.37
	$3.13 - $101.37		2,806,224			6.2	$	30.14		2,134,653	$	21.28
Summary of restricted share units activity	'
		Restricted Share
		Units Outstanding
		Number			Weighted
		of Shares			Average
					Grant Date
					Fair Value
	Non-vested restricted share units at December 31, 2010		414,945		$	19.86
	Restricted share units granted		1,143,142			27
	Restricted share units vested		(224,005	)		20.02
	Restricted share units canceled		(142,409	)		24.97
	Non-vested restricted share units at December 31, 2011		1,191,673		$	26.05
	Restricted share units granted		1,110,230			42.88
	Restricted share units vested		(480,150	)		24.65
	Restricted share units canceled		(58,593	)		30.39
	Non-vested restricted share units at December 31, 2012		1,763,160		$	36.29
	Restricted share units granted		1,162,133			49.05
	Restricted share units vested		(778,084	)		31.16
	Restricted share units canceled		(172,755	)		42.49
	Non-vested restricted share units at December 31, 2013		1,974,454		$	43.81
Summary of ordinary shares reserved for future issuance under equity incentive plans	'
		Number
		of
		Shares
	Share options outstanding		2,806,224
	Restricted share units outstanding		1,974,454
	Share authorized for future issuance		1,236,003
	ESPP shares available for future issuance		1,245,974
	Total shares reserved for future issuance as of December 31, 2013		7,262,655
Schedule of weighted average assumptions used to value share options granted	'
		Employee Share							Employee Share
		Options							Purchase Plan
		Year Ended							Year Ended
		December 31,							December 31,
		2013			2012		2011		2013		2012		2011
	Dividend yield, %		—			—		—		—		—		—
	Expected volatility, %		57.5			56.6		55.9		56.18		68.05		41.8
	Risk free interest rate, %		1.54			1.02		1.72		0.07		0.12		0.1
	Expected life, years		4.72			6.25		6.25		0.53		0.53		0.53
Summary of the distribution of total share-based compensation expense	'
		Year Ended December 31,
		2013			2012		2011
		(in thousands)
	Share-based compensation expense by caption:
	Cost of goods sold	$	1,828		$	1,621	$	980
	Research and development		25,956			19,356		11,906
	Sales and marketing		9,198			8,055		4,894
	General and administrative		8,156			5,987		3,632
	Total share-based compensation expense	$	45,138		$	35,019	$	21,412
	Share-based compensation expense by type of award:
	Share options	$	12,460		$	14,104	$	12,568
	ESPP		3,938			2,851		1,686
	RSU		28,740			18,064		7,158
	Total share-based compensation expense	$	45,138		$	35,019	$	21,412

ACCUMULATED_OTHER_COMPREHENSIV1

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): (Tables)	12 Months Ended
	Dec. 31, 2013
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS):	'
Summary of the changes in accumulated balances of other comprehensive income (loss)	'
		Unrealized			Gains / Losses			Total
		Gains / Losses on			on Derivatives
		Available-for-
		Sale Securities
		(in thousands)
	Balance at December 31, 2012	$	(148	)	$	2,942		$	2,794
	Other comprehensive income/loss before reclassifications		148			4,481			4,629
	Amounts reclassified from accumulated other comprehensive income/loss		(6	)		(6,027	)		(6,033	)
	Net current-period other comprehensive income/loss, net of taxes		142			(1,546	)		(1,404	)
	Balance at December 31, 2013	$	(6	)	$	1,396		$	1,390
	Balance at December 31, 2011	$	(15	)	$	(1,149	)	$	(1,164	)
	Other comprehensive income/loss before reclassifications		(129	)		3,198			3,069
	Amounts reclassified from accumulated other comprehensive income/loss		(4	)		893			889
	Net current-period other comprehensive income/loss, net of taxes		(133	)		4,091			3,958
	Balance at December 31, 2012	$	(148	)	$	2,942		$	2,794
Schedule of reclassifications out of accumulated other comprehensive income (loss)	'
	The following table provides details about reclassifications out of accumulated other comprehensive income (loss) for the year ended December 31, 2013:
	Details about Accumulated Other	Amount			Affected Line Item in the
	Comprehensive Income / Loss Components	Reclassified			Statement of Operations
		from Other
		Comprehensive
		Income / Loss
		(in thousands)
	Gains on Derivatives	$	6,027		Cost of revenues and Operating expenses
			363		Cost of revenues
			4,653		Research and development
			508		Sales and marketing
			503		General and administrative
			6,027
	Unrealized gains (losses) on Available-for-Sale Securities		6		Other income, net
	Total reclassifications for the period	$	6,033		Total

INCOME_TAXES_Tables

INCOME TAXES: (Tables)	12 Months Ended
	Dec. 31, 2013
INCOME TAXES:	'
Components of income (loss) before income taxes	'
		Year Ended December 31,
		2013			2012			2011
		(in thousands)
	United States	$	(1,870	)	$	6,709		$	3,479
	Foreign		(17,239	)		112,858			9,873
	Income (loss) before income taxes	$	(19,109	)	$	119,567		$	13,352
Schedule of the components of the provision for income taxes	'
		Year Ended December 31,
		2013			2012			2011
		(in thousands)
	Current:
	U.S. federal	$	1,989		$	6,178		$	2,838
	State and local		508			890			437
	Foreign		3,110			4,573			907
			5,607			11,641			4,182
	Deferred:
	U.S. federal	$	(1,174	)	$	(2,805	)	$	(658	)
	State and local		(219	)		(226	)		(149	)
	Foreign		(462	)		(423	)		—
			(1,855	)		(3,454	)		(807	)
	Provision for taxes on income	$	3,752		$	8,187		$	3,375
Schedule of significant deferred tax assets and liabilities	'
		December 31,
		2013			2012
		(in thousands)
	Deferred tax assets:
	Net operating loss and credit carryforwards	$	44,251		$	30,644
	Reserves and accruals		9,572			7,499
	Depreciation and amortization		786			(174	)
	Other		2,285			—
	Gross deferred tax assets		56,894			37,969
	Valuation allowance		(29,128	)		(32,073	)
	Total deferred tax assets		27,766			5,896
	Intangible assets		(13,275	)		—
	Total deferred tax liabilities		(13,275	)		—
	Net deferred tax assets	$	14,491		$	5,896
Schedule of reconciliation of the statutory federal income tax rate to the Company's effective tax rate	'
		Year Ended
		December 31,
		2013			2012			2011
	Tax at statutory rate		35	%		35	%		34	%
	State, net of federal benefit		2.9			0.5			2.2
	Meals and entertainment		(1.9	)		0.1			0.4
	Tax at rates other than the statutory rate		(35.7	)		(32.9	)		(15.6	)
	Share-based compensation		(4.6	)		(0.1	)		3.2
	Net change in tax reserves		(15.9	)		4.8			—
	Other, net		0.6			(0.6	)		1
	Provision for taxes		(19.6	)%		6.8	%		25.2	%
Schedule of reconciliation of unrecognized tax benefits, excluding penalties and interest	'
		Year Ended
		December 31,
		2013			2012
		(in thousands)
	Gross unrecognized tax benefits, beginning of the period	$	9,716		$	4,063
	Increases in tax positions for prior years		11,481			120
	Decreases in tax positions for prior years		(11	)		—
	Increases in tax positions for current year		3,029			5,533
	Decreases in tax positions for current year		(630	)		—
	Gross unrecognized tax benefits, end of the period	$	23,585		$	9,716

GEOGRAPHIC_INFORMATION_AND_REV1

GEOGRAPHIC INFORMATION AND REVENUES BY PRODUCT GROUP: (Tables)	12 Months Ended
	Dec. 31, 2013
GEOGRAPHIC INFORMATION AND REVENUES BY PRODUCT GROUP:	'
Schedule of revenues by geographic region	'
		Year Ended December 31,
		2013		2012		2011
		(in thousands)
	United States	$	175,914	$	220,681	$	120,385
	China		67,517		102,957		33,681
	Israel		2,479		2,483		1,867
	Europe		51,973		62,788		39,566
	Other Americas		16,869		26,000		15,912
	Other Asia		76,107		85,890		47,840
	Total revenue	$	390,859	$	500,799	$	259,251
Schedule of property and equipment, net by geographic location	'
		Year Ended
		December 31,
		2013		2012
		(in thousands)
	Israel	$	65,883	$	61,388
	United States		3,094		987
	Other		1,838		—
	Total property and equipment, net	$	70,815	$	62,375
Schedule of revenues by product group	'
		Year Ended December 31,
		2013		2012		2011
		(in thousands)
	ICs	$	56,817	$	95,103	$	46,564
	Boards		119,399		155,670		98,004
	Switch systems		145,184		168,231		76,398
	Cables, accessories and other		69,459		81,795		38,285
	Total revenue	$	390,859	$	500,799	$	259,251

OTHER_INCOME_NET_Tables

OTHER INCOME, NET: (Tables)	12 Months Ended
	Dec. 31, 2013
OTHER INCOME, NET:	'
Schedule of other income, net	'
		Year Ended December 31,
		2013			2012			2011
		(in thousands)
	Interest income and gain on sale of investments, net	$	1,738		$	1,699		$	630
	Foreign exchange gain (loss)		(309	)		(294	)		374
	Other		(201	)		(146	)		(245	)
	Total other income, net	$	1,228		$	1,259		$	759

THE_COMPANY_AND_SUMMARY_OF_SIG3

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Short-term investments	'	'	'
Minimum stated maturity period	'1 year	'	'
Restricted cash and deposits	'	'	'
Restricted cash	'	3,229,000	'
Tenant's security deposits	'	600,000	'
Security deposits in banks	'	2,600,000	'
Number of banks under foreign exchange management agreement	2	'	'
Long-term restricted cash	3,514,000	3,388,000	'
Revenues | Consolidated revenue | IBM	'	'	'
Concentration of credit risk	'	'	'
Percentage of consolidated revenue by major customer	17.00%	19.00%	17.00%
Revenues | Consolidated revenue | Hewlett Packard	'	'	'
Concentration of credit risk	'	'	'
Percentage of consolidated revenue by major customer	13.00%	20.00%	19.00%
Accounts receivable | Consolidated revenue | IBM	'	'	'
Concentration of credit risk	'	'	'
Percentage of consolidated revenue by major customer	10.00%	21.00%	'
Accounts receivable | Consolidated revenue | Hewlett Packard	'	'	'
Concentration of credit risk	'	'	'
Percentage of consolidated revenue by major customer	11.00%	'	'
Accounts receivable | Consolidated revenue | Hewlett Packard | Maximum	'	'	'
Concentration of credit risk	'	'	'
Percentage of consolidated revenue by major customer	'	10.00%	'

THE_COMPANY_AND_SUMMARY_OF_SIG4

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Details 2)	12 Months Ended
	Dec. 31, 2013
Computers, software license rights and other electronic equipments | Minimum	'
Property and equipment, net:	'
Estimated useful lives	'3 years
Computers, software license rights and other electronic equipments | Maximum	'
Property and equipment, net:	'
Estimated useful lives	'5 years
Office furniture and equipment | Minimum	'
Property and equipment, net:	'
Estimated useful lives	'7 years
Office furniture and equipment | Maximum	'
Property and equipment, net:	'
Estimated useful lives	'15 years
Capitalized costs of fabrication masks	'
Property and equipment, net:	'
Estimated useful lives	'12 months

THE_COMPANY_AND_SUMMARY_OF_SIG5

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Details 3) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Product warranty	'	'	'
Maximum warranty period	'3 years	'	'
Changes in the entity's liability for product warranty	'	'	'
Balance, beginning of the period	$4,447,000	$1,097,000	'
New warranties issued during the period	9,334,000	5,697,000	'
Reversal of warranty reserves	-1,332,000	-813,000	'
Settlements during the period	-8,251,000	-1,534,000	'
Balance, end of the period	4,198,000	4,447,000	1,097,000
Research and development	'	'	'
Research and development	168,721,000	138,946,000	92,508,000
Advertising	'	'	'
Advertising expense	$900,000	$1,100,000	$400,000
Employee Share Options	'	'	'
Share-based compensation	'	'	'
Expected life	'4 years 8 months 19 days	'6 years 3 months	'6 years 3 months

THE_COMPANY_AND_SUMMARY_OF_SIG6

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Details 4) (USD $)	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
	item
Net income per share	'	'	'
Net income (loss)	($22,861)	$111,380	$9,977
Basic and diluted shares:	'	'	'
Weighted average ordinary shares outstanding used to compute basic net income (loss) per share	43,421,000	41,308,000	36,263,000
Dilutive effect of employee share option and purchase plan (in shares)	'	2,593,000	2,299,000
Shares used to compute diluted net income (loss) per share	43,421,000	43,901,000	38,562,000
Net income (loss) per share - basic (in dollars per share)	($0.53)	$2.70	$0.28
Net income (loss) per share - diluted (in dollars per share)	($0.53)	$2.54	$0.26
Segment reporting	'	'	'
Number of reportable segments	1	'	'
Share options	'	'	'
Net income per share	'	'	'
Outstanding shares excluded from the computation of diluted net income per ordinary share	800,000	300,000	500,000

BALANCE_SHEET_COMPONENTS_Detai

BALANCE SHEET COMPONENTS: (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
In Thousands, unless otherwise specified
Accounts receivable, net:	'	'	'
Accounts receivable	$71,205	$59,155	'
Less: allowance for doubtful accounts	-639	-639	'
Accounts receivable, net	70,566	58,516	'
Inventories:	'	'	'
Raw materials	4,385	6,240	'
Work-in-process	12,187	4,667	'
Finished goods	19,391	32,411	'
Inventories	35,963	43,318	'
Deferred taxes and other current assets:	'	'	'
Prepaid expenses	5,929	5,346	'
Derivative contracts receivable	1,396	2,942	'
Deferred taxes	7,336	3,813	'
VAT receivable	1,900	3,000	'
Other	1,020	515	'
Deferred taxes and other current assets	17,581	15,616	'
Property and equipment, net:	'	'	'
Property and equipment, gross	126,785	110,683	'
Less: Accumulated depreciation and amortization	-55,970	-48,308	'
Property and equipment, net	70,815	62,375	'
Deferred taxes and other long-term assets:	'	'	'
Equity investments in private companies	7,548	4,424	'
Deferred taxes	7,155	2,083	'
Restricted cash	3,514	3,388	'
Other assets	2,396	524	'
Deferred taxes and other long-term assets	20,613	10,419	'
Accrued liabilities:	'	'	'
Payroll and related expenses	29,350	37,067	'
Accrued expenses	12,315	10,104	'
Product warranty liability	4,198	4,447	1,097
Other	6,725	6,261	'
Accrued liabilities	52,588	57,879	'
Other long-term liabilities:	'	'	'
Income tax payable	13,026	8,838	'
Deferred rent	3,072	2,797	'
Other	993	'	'
Other long-term liabilities	17,091	11,635	'
Computer equipment and software	'	'	'
Property and equipment, net:	'	'	'
Property and equipment, gross	91,368	80,203	'
Furniture and fixtures	'	'	'
Property and equipment, net:	'	'	'
Property and equipment, gross	3,809	3,890	'
Leasehold improvements	'	'	'
Property and equipment, net:	'	'	'
Property and equipment, gross	$31,608	$26,590	'

BUSINESS_COMBINATION_Details

BUSINESS COMBINATION: (Details) (USD $)

12 Months Ended

1 Months Ended

0 Months Ended

12 Months Ended

0 Months Ended

12 Months Ended

0 Months Ended

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Aug. 15, 2013

Dec. 31, 2013

Jul. 02, 2013

Dec. 31, 2013

Jul. 02, 2013

Aug. 15, 2013

Dec. 31, 2013

Aug. 15, 2013

Aug. 15, 2013

Aug. 15, 2013

Aug. 15, 2013

Aug. 15, 2013

Dec. 31, 2011

Feb. 07, 2011

RSUs

RSUs

RSUs

Share options

Share options

Share options

IPtronics and Kotura

IPtronics and Kotura

IPtronics

IPtronics

IPtronics

Kotura

Kotura

Kotura

Kotura

Kotura

Kotura

Kotura

Voltaire Ltd

Voltaire Ltd

RSUs

RSUs and options

RSUs and options

RSUs and options

RSUs

Share options

Minimum

Maximum

Details of purchase consideration

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Cash Consideration Paid

'

'

'

'

'

'

'

'

'

$125,697,000

'

$44,925,000

'

'

$80,772,000

'

'

'

'

'

'

'

'

Cash Assumed

'

'

'

'

'

'

'

'

'

2,178,000

'

2,077,000

2,077,000

'

101,000

101,000

'

'

'

'

'

3,961,000

'

Net Cash Paid

'

'

'

'

'

'

'

'

'

123,519,000

'

42,848,000

42,848,000

'

80,671,000

80,671,000

'

'

'

'

'

203,704,000

'

Units issued (in shares)

'

'

'

1,162,133

1,110,230

1,143,142

'

'

'

'

'

'

'

60,508

'

'

'

'

'

145,425

'

'

'

Aggregate value

'

'

'

'

'

'

'

'

'

'

'

'

'

3,000,000

'

'

6,400,000

'

'

'

'

'

'

Fair value (in dollars per share)

'

'

'

$49.05

$42.88

$27

$39.97

$59.38

'

'

'

'

'

$49.92

'

'

'

'

'

$42.19

'

'

'

Compensation expense

45,138,000

35,019,000

21,412,000

28,740,000

18,064,000

7,158,000

12,460,000

14,104,000

12,568,000

'

'

'

'

3,000,000

'

'

6,400,000

'

'

'

'

'

'

Vesting period

'

'

'

'

'

'

'

'

'

'

'

'

'

'4 years

'

'

'

'

'

'

'

'

'

Options issues (in shares)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

31,653

'

'

Compensation expenses recognition period

'2 years 3 months 25 days

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'1 day

'4 years

'

'

'

'

Weighted average assumptions

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Expected life

'

'

'

'

'

'

'4 years 8 months 19 days

'6 years 3 months

'6 years 3 months

'

'

'

'

'

'

'

'

'

'

'

'4 years 8 months 19 days

'

'

Volatility (as a percent)

'

'

'

'

'

'

57.50%

56.60%

55.90%

'

'

'

'

'

'

'

'

'

'

'

57.50%

'

'

Risk-free interest rate (as a percent)

'

'

'

'

'

'

1.54%

1.02%

1.72%

'

'

'

'

'

'

'

'

'

'

'

1.54%

'

'

Dividend yield (as a percent)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

0.00%

'

'

Share value (in dollars per share)

'

'

'

$49.05

$42.88

$27

$39.97

$59.38

'

'

'

'

'

$49.92

'

'

'

'

'

$42.19

'

'

'

Purchase price allocation:

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Current assets, net of cash

'

'

'

'

'

'

'

'

'

'

7,425,000

2,173,000

'

'

5,252,000

'

'

'

'

'

'

'

52,131,000

Other long-term assets

'

'

'

'

'

'

'

'

'

'

11,577,000

974,000

'

'

10,603,000

'

'

'

'

'

'

'

10,875,000

Intangible assets

45,099,000

'

'

'

'

'

'

'

'

'

45,099,000

17,495,000

'

'

27,604,000

'

'

'

'

'

'

'

36,052,000

Goodwill

199,558,000

132,885,000

'

'

'

'

'

'

'

'

66,673,000

25,725,000

'

'

40,948,000

'

'

'

'

'

'

'

132,885,000

Total assets

'

'

'

'

'

'

'

'

'

'

130,774,000

46,367,000

'

'

84,407,000

'

'

'

'

'

'

'

231,943,000

Current liabilities

'

'

'

'

'

'

'

'

'

'

-6,025,000

-2,668,000

'

'

-3,357,000

'

'

'

'

'

'

'

-11,369,000

Long-term liabilities

'

'

'

'

'

'

'

'

'

'

-1,230,000

-851,000

'

'

-379,000

'

'

'

'

'

'

'

-6,606,000

Total liabilities

'

'

'

'

'

'

'

'

'

'

-7,255,000

-3,519,000

'

'

-3,736,000

'

'

'

'

'

'

'

-17,975,000

Total preliminary purchase price allocation

'

'

'

'

'

'

'

'

'

'

$123,519,000

$42,848,000

'

'

$80,671,000

'

'

'

'

'

'

'

$213,968,000

BUSINESS_COMBINATION_Details_2

BUSINESS COMBINATION: (Details 2) (USD $)

Dec. 31, 2013

Aug. 15, 2013

Dec. 31, 2013

Dec. 31, 2012

Jul. 02, 2013

Aug. 15, 2013

Feb. 07, 2011

Dec. 31, 2013

Dec. 31, 2013

Jul. 02, 2013

Aug. 15, 2013

Feb. 07, 2011

Feb. 07, 2011

Feb. 07, 2011

Dec. 31, 2013

Jul. 02, 2013

Aug. 15, 2013

Feb. 07, 2011

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Feb. 07, 2011

Feb. 07, 2011

Feb. 07, 2011

Feb. 07, 2011

Dec. 31, 2013

Dec. 31, 2013

Feb. 07, 2011

Feb. 07, 2011

In Thousands, except Per Share data, unless otherwise specified

IPtronics and Kotura

IPtronics and Kotura

IPtronics and Kotura

IPtronics

Kotura

Voltaire Ltd

Licensed technology

Developed technology

Developed technology

Developed technology

Developed technology

Developed technology

Developed technology

In-process research and development

In-process research and development

In-process research and development

In-process research and development

Customer relationship

Customer relationship

Customer relationship

Customer relationship

Customer relationship

Customer relationship

Customer contract

Backlog

Backlog

Backlog

Backlog

IPtronics and Kotura

IPtronics and Kotura

IPtronics

Kotura

Voltaire Ltd

Voltaire Ltd

Voltaire Ltd

IPtronics and Kotura

IPtronics

Kotura

Voltaire Ltd

IPtronics and Kotura

IPtronics and Kotura

IPtronics and Kotura

Voltaire Ltd

Voltaire Ltd

Voltaire Ltd

Voltaire Ltd

IPtronics and Kotura

IPtronics and Kotura

Voltaire Ltd

Voltaire Ltd

Minimum

Maximum

item

Modulator drivers - 4x25Gb/s

Silicon photonics modulator - 4x25Gb/s

item

Minimum

Maximum

Minimum

Maximum

Maximum

Maximum

Identifiable intangible assets

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Purchased intangible assets

$45,099

'

$45,099

'

$17,495

$27,604

$36,052

$135

$27,827

'

'

$20,378

'

'

$13,764

'

'

$2,754

$2,420

'

'

$10,956

'

'

$1,529

$953

'

$435

'

Weighted average useful life

'

'

'

'

'

'

'

'6 years

'5 years

'

'

'

'2 years

'3 years

'

'

'

'

'

'1 year

'2 years

'

'4 years

'5 years

'2 years

'

'1 year

'

'1 year

Number of projects completed

'

'

'

'

'

'

'

'

'

'

'

'

'

'

0

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Risk Adjusted Discount Rate (as a percent)

'

'

'

'

'

'

'

'

'

17.50%

15.50%

'

'

'

'

19.50%

16.50%

'

15.50%

'

'

'

'

'

'

'

'

'

'

Valuations of IPR&D at acquisition

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Average Estimated time to complete

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'18 months

'18 months

'

'

'

'

'

'

'

'

'

'

'

'

Estimated cost to complete

'

26,759

'

'

'

'

'

'

'

'

'

'

'

'

'

9,549

17,210

'

'

'

'

'

'

'

'

'

'

'

'

Fair value

'

13,764

'

'

'

'

'

'

'

'

'

'

'

'

'

4,121

9,643

'

'

'

'

'

'

'

'

'

'

'

'

Unaudited pro forma information

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Pro forma net revenue

'

'

402,530

522,304

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Pro forma net income (loss)

'

'

($30,132)

$100,177

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Pro forma net income (loss) per share basic (in dollars per share)

'

'

($0.69)

$2.43

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Pro forma net income (loss) per share diluted (in dollars per share)

'

'

($0.69)

$2.27

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Number of projects acquired

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

3

'

'

'

'

'

'

'

'

'

'

'

FAIR_VALUE_MEASUREMENTS_Detail

FAIR VALUE MEASUREMENTS: (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Financial assets measured at fair value	'	'
Transfers between Level 1 and Level 2	$0	$0
Fair Value, Measurements, Recurring Basis | Level 1	'	'
Financial assets measured at fair value	'	'
Financial assets	20,000,000	'
Fair Value, Measurements, Recurring Basis | Level 1 | Money market funds	'	'
Financial assets measured at fair value	'	'
Financial assets	20,000,000	'
Fair Value, Measurements, Recurring Basis | Level 2	'	'
Financial assets measured at fair value	'	'
Financial assets	264,924,000	312,441,000
Fair Value, Measurements, Recurring Basis | Level 2 | Certificates of deposit	'	'
Financial assets measured at fair value	'	'
Financial assets	67,769,000	90,431,000
Fair Value, Measurements, Recurring Basis | Level 2 | U.S. Government and agency securities	'	'
Financial assets measured at fair value	'	'
Financial assets	69,879,000	115,129,000
Fair Value, Measurements, Recurring Basis | Level 2 | Commercial paper	'	'
Financial assets measured at fair value	'	'
Financial assets	33,606,000	34,947,000
Fair Value, Measurements, Recurring Basis | Level 2 | Corporate bonds	'	'
Financial assets measured at fair value	'	'
Financial assets	92,274,000	61,462,000
Fair Value, Measurements, Recurring Basis | Level 2 | Foreign government bonds	'	'
Financial assets measured at fair value	'	'
Financial assets	'	7,530,000
Fair Value, Measurements, Recurring Basis | Level 2 | Derivative contracts	'	'
Financial assets measured at fair value	'	'
Financial assets	1,396,000	2,942,000
Fair Value, Measurements, Recurring Basis | Total	'	'
Financial assets measured at fair value	'	'
Financial assets	284,924,000	312,441,000
Fair Value, Measurements, Recurring Basis | Total | Money market funds	'	'
Financial assets measured at fair value	'	'
Financial assets	20,000,000	'
Fair Value, Measurements, Recurring Basis | Total | Certificates of deposit	'	'
Financial assets measured at fair value	'	'
Financial assets	67,769,000	90,431,000
Fair Value, Measurements, Recurring Basis | Total | U.S. Government and agency securities	'	'
Financial assets measured at fair value	'	'
Financial assets	69,879,000	115,129,000
Fair Value, Measurements, Recurring Basis | Total | Commercial paper	'	'
Financial assets measured at fair value	'	'
Financial assets	33,606,000	34,947,000
Fair Value, Measurements, Recurring Basis | Total | Corporate bonds	'	'
Financial assets measured at fair value	'	'
Financial assets	92,274,000	61,462,000
Fair Value, Measurements, Recurring Basis | Total | Foreign government bonds	'	'
Financial assets measured at fair value	'	'
Financial assets	'	7,530,000
Fair Value, Measurements, Recurring Basis | Total | Derivative contracts	'	'
Financial assets measured at fair value	'	'
Financial assets	$1,396,000	$2,942,000

INVESTMENTS_Details

INVESTMENTS: (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
	item
Amortized Cost	'	'
Total investments	$326,698,000	$419,795,000
Less amounts classified as cash and cash equivalents	-63,164,000	-117,054,000
Short term investments, amortized cost	263,534,000	302,741,000
Unrealized Gains (Losses)	'	'
Unrealized Gains	48,000	32,000
Unrealized Losses	-54,000	-180,000
Estimated Fair Value	'	'
Short term investments, fair value	326,692,000	419,647,000
Less amounts classified as cash and cash equivalents	-63,164,000	-117,054,000
Short-term investments classified as available-for-sale securities	263,528,000	302,593,000
Realized gains on sale of marketable securities	1,200,000	900,000
Amortized cost	'	'
Due in less than one year	190,172,000	172,941,000
Due in one to three years	73,362,000	129,800,000
Amortized cost	263,534,000	302,741,000
Estimated fair value	'	'
Due in less than one year	190,189,000	172,880,000
Due in one to three years	73,339,000	129,713,000
Estimated fair value	263,528,000	302,593,000
Investment in a privately-held companies accounted for under the cost method	7,500,000	4,400,000
Number of privately-held companies in which the entity held investments	2	'
Cash	'	'
Amortized Cost	'	'
Total investments	43,164,000	110,148,000
Estimated Fair Value	'	'
Short term investments, fair value	43,164,000	110,148,000
Money market funds	'	'
Amortized Cost	'	'
Total investments	20,000,000	'
Estimated Fair Value	'	'
Short term investments, fair value	20,000,000	'
Certificates of deposits	'	'
Amortized Cost	'	'
Total investments	67,775,000	90,437,000
Unrealized Gains (Losses)	'	'
Unrealized Gains	1,000	1,000
Unrealized Losses	-7,000	-7,000
Estimated Fair Value	'	'
Short term investments, fair value	67,769,000	90,431,000
U.S. Government and agency securities	'	'
Amortized Cost	'	'
Total investments	69,859,000	115,179,000
Unrealized Gains (Losses)	'	'
Unrealized Gains	22,000	9,000
Unrealized Losses	-2,000	-59,000
Estimated Fair Value	'	'
Short term investments, fair value	69,879,000	115,129,000
Commercial paper	'	'
Amortized Cost	'	'
Total investments	33,602,000	34,977,000
Unrealized Gains (Losses)	'	'
Unrealized Gains	9,000	'
Unrealized Losses	-5,000	-30,000
Estimated Fair Value	'	'
Short term investments, fair value	33,606,000	34,947,000
Corporate bonds	'	'
Amortized Cost	'	'
Total investments	92,298,000	61,543,000
Unrealized Gains (Losses)	'	'
Unrealized Gains	16,000	3,000
Unrealized Losses	-40,000	-84,000
Estimated Fair Value	'	'
Short term investments, fair value	92,274,000	61,462,000
Foreign government bonds	'	'
Amortized Cost	'	'
Total investments	'	7,511,000
Unrealized Gains (Losses)	'	'
Unrealized Gains	'	19,000
Estimated Fair Value	'	'
Short term investments, fair value	'	$7,530,000

GOODWILL_AND_INTANGIBLE_ASSETS2

GOODWILL AND INTANGIBLE ASSETS: (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Jul. 02, 2013	Dec. 31, 2013	Aug. 15, 2013
In Thousands, unless otherwise specified			IPtronics	IPtronics	Kotura	Kotura
Changes in the carrying amount of goodwill	'	'	'	'	'	'
Balance at the beginning of the period	$199,558	$132,885	'	$25,725	'	$40,948
Goodwill acquisition	'	'	25,725	'	40,948	'
Balance at the end of the period	$199,558	$132,885	'	$25,725	'	$40,948

GOODWILL_AND_INTANGIBLE_ASSETS3

GOODWILL AND INTANGIBLE ASSETS: (Details 2) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Intangible assets	'	'	'
Gross carrying value of amortizable intangible assets	$88,156,000	$36,563,000	'
Accumulated Amortization	-33,794,000	-20,429,000	'
Net carrying value of amortizable intangible assets	54,362,000	16,134,000	'
Amortization expense of intangible assets	14,200,000	9,300,000	9,400,000
Total amortizable intangible assets, excluding IPR&D	'	'	'
Intangible assets	'	'	'
Gross carrying value of amortizable intangible assets	74,392,000	'	'
Accumulated Amortization	-33,794,000	'	'
Net carrying value of amortizable intangible assets	40,598,000	'	'
Licensed technology	'	'	'
Intangible assets	'	'	'
Gross carrying value of amortizable intangible assets	2,344,000	946,000	'
Accumulated Amortization	-366,000	-946,000	'
Net carrying value of amortizable intangible assets	1,978,000	'	'
Developed technology	'	'	'
Intangible assets	'	'	'
Gross carrying value of amortizable intangible assets	56,190,000	23,132,000	'
Accumulated Amortization	-24,667,000	-14,695,000	'
Net carrying value of amortizable intangible assets	31,523,000	8,437,000	'
Customer relationships	'	'	'
Intangible assets	'	'	'
Gross carrying value of amortizable intangible assets	13,376,000	10,956,000	'
Accumulated Amortization	-6,279,000	-3,328,000	'
Net carrying value of amortizable intangible assets	7,097,000	7,628,000	'
Customer contract	'	'	'
Intangible assets	'	'	'
Gross carrying value of amortizable intangible assets	1,529,000	1,529,000	'
Accumulated Amortization	-1,529,000	-1,460,000	'
Net carrying value of amortizable intangible assets	'	69,000	'
Backlog	'	'	'
Intangible assets	'	'	'
Gross carrying value of amortizable intangible assets	953,000	'	'
Accumulated Amortization	-953,000	'	'
IPR&D	'	'	'
Intangible assets	'	'	'
Gross carrying value of amortizable intangible assets	13,764,000	'	'
Net carrying value of amortizable intangible assets	$13,764,000	'	'

GOODWILL_AND_INTANGIBLE_ASSETS4

GOODWILL AND INTANGIBLE ASSETS: (Details 3) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Estimated future amortization expenses from amortizable intangible assets	'	'
2014	$12,894	'
2015	10,786	'
2016	9,970	'
2017	9,907	'
2018 and thereafter	10,805	'
Net carrying value of amortizable intangible assets	$54,362	$16,134

DERIVATIVES_AND_HEDGING_ACTIVI2

DERIVATIVES AND HEDGING ACTIVITIES: (Details)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
	USD ($)	USD ($)	Foreign currency forward contract	Foreign currency forward contract	Foreign currency forward contract	Foreign currency forward contract	Foreign currency forward contract	Foreign currency forward contract	Foreign currency forward contract
			USD ($)	ILS	USD ($)	ILS	Amount Reclassified from Other Comprehensive Income / Loss	Amount Reclassified from Other Comprehensive Income / Loss	Amount Reclassified from Other Comprehensive Income / Loss
							Gains / Losses on Derivatives	Gains / Losses on Derivatives	Gains / Losses on Derivatives
							USD ($)	USD ($)	USD ($)
Derivatives and Hedging Activities	'	'	'	'	'	'	'	'	'
Future operating expenses hedged	'	'	$31,300,000	108,800,000	$58,900,000	219,900,000	'	'	'
Period over which operating expenses hedged will be expensed	'	'	'12 months	'	'	'	'	'	'
Derivative Assets Reported in Other Current Assets	'	'	'	'	'	'	'	'	'
Foreign exchange contracts designated as cash flow hedges	'	'	1,396,000	'	2,942,000	'	'	'	'
Total derivatives designated as hedging instruments	1,396,000	2,942,000	'	'	'	'	'	'	'
Balance of designated derivative contracts as cash flow hedges and their impact on OCI	'	'	'	'	'	'	'	'	'
Balance at the beginning of the period	'	'	2,942,000	'	'	'	'	'	'
Amount of gain recognized in OCI (effective portion)	'	'	4,481,000	'	'	'	'	'	'
Amount of gain reclassified from OCI to income (effective portion)	'	'	-6,027,000	'	'	'	'	'	'
Balance at the end of the period	'	'	1,396,000	'	'	'	'	'	'
Expected time to realize the accumulated OCI balance related to foreign exchange contracts	'	'	'12 months	'	'	'	'	'	'
Gain (loss) on foreign exchange contracts designated as cash flow hedges	'	'	'	'	'	'	$6,027,000	($893,000)	$1,223,000

EMPLOYEE_BENEFIT_PLANS_Details

EMPLOYEE BENEFIT PLANS: (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Severance pay details	'	'	'
Accrued severance liability	$13,418,000	$11,821,000	'
Severance assets	10,630,000	8,907,000	'
Pretax savings plan under 401 (k) of the Internal Revenue Code	'	'	'
Severance payments	'	'	'
Employer contribution limit per calendar year (as a percent of base salary)	4.00%	'	'
Severance pay details	'	'	'
Defined pension contribution plan expenses	800,000	500,000	400,000
Israeli postemployment benefit plan	'	'	'
Severance pay details	'	'	'
Accrued severance liability	13,418,000	11,821,000	'
Severance assets	10,630,000	8,907,000	'
Unfunded portion	2,788,000	2,914,000	'
Company's contribution as a percentage of employee monthly salary to insurance policy or pension fund	8.33%	'	'
Company's contribution as a percentage of employee monthly salary to pension contribution plan	6.00%	'	'
Additional severance payments to employee	0	'	'
Severance pay expenses	6,100,000	4,300,000	3,900,000
Defined pension contribution plan expenses	$4,500,000	$3,200,000	$2,500,000

COMMITMENTS_AND_CONTINGENCIES_1

COMMITMENTS AND CONTINGENCIES: (Details) (USD $)	12 Months Ended			0 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Feb. 19, 2013	Feb. 22, 2013	Jan. 08, 2014
				Infinite Data path Case	In re Mellanox Technologies, Ltd. Securities Litigation	Israeli Class Action Claim in re TASE Delisting
				item	item
Leases	'	'	'	'	'	'
Rent expense of office space and motor vehicles under operating leases	$8,900,000	$6,800,000	$6,600,000	'	'	'
Property and equipment, gross under capital lease agreements	2,800,000	4,100,000	'	'	'	'
Accumulated amortization for assets under capital lease agreements	1,200,000	600,000	'	'	'	'
Future minimum payments under non-cancelable capital leases	'	'	'	'	'	'
2014	1,313,000	'	'	'	'	'
2015	1,097,000	'	'	'	'	'
2016	492,000	'	'	'	'	'
Total minimum lease payments	2,902,000	'	'	'	'	'
Less: Amount representing interest	-57,000	'	'	'	'	'
Present value of capital lease obligations	2,845,000	'	'	'	'	'
Less: Current portion	-1,245,000	-1,253,000	'	'	'	'
Long-term portion of capital lease obligations	1,600,000	2,835,000	'	'	'	'
Future minimum payments under non-cancelable operating leases	'	'	'	'	'	'
2014	16,333,000	'	'	'	'	'
2015	11,851,000	'	'	'	'	'
2016	7,906,000	'	'	'	'	'
2017	6,393,000	'	'	'	'	'
2018 and beyond	10,869,000	'	'	'	'	'
Total minimum lease payments	53,352,000	'	'	'	'	'
Purchase commitments	'	'	'	'	'	'
Amount of non-cancelable purchase commitments	46,000,000	'	'	'	'	'
Amount of non-cancelable purchase commitments expected to be paid within one year	45,200,000	'	'	'	'	'
Amount of non-cancelable purchase commitments expected to be paid within two years and beyond	800,000	'	'	'	'	'
Legal proceedings	'	'	'	'	'	'
Number of legal complaints filed against the Company, the Company's President and CEO, former CFO and CFO	'	'	'	'	3	'
Number of end users and direct customers sued under Infinite Data path Case	'	'	'	25	'	'
Period to present position to Court objecting to or relating to the Withdrawal Petition	'	'	'	'	'	'45 days
Legal proceedings	'	'	'	'	'	'
Provision for liability	$0	'	'	'	'	'

SHARE_INCENTIVE_PLANS_Details

SHARE INCENTIVE PLANS: (Details) (USD $)

12 Months Ended

0 Months Ended

12 Months Ended

0 Months Ended

12 Months Ended

In Millions, except Share data, unless otherwise specified

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Jan. 02, 2014

Jan. 02, 2013

Jan. 02, 2012

Dec. 31, 2013

Jan. 02, 2014

Jan. 02, 2013

Dec. 31, 2011

Dec. 31, 2013

item

Stock options

Stock options

Stock options

Global Plan

Global Plan

Global Plan

Global Plan

Assumption Plan

Assumption Plan

Assumption Plan

Kotura Plan

SHARE INCENTIVE PLANS:

'

'

'

'

'

'

'

'

'

'

'

'

Number of share option plans

7

'

'

'

'

'

'

'

'

'

'

'

Share option plans

'

'

'

'

'

'

'

'

'

'

'

'

Maximum annual percentage increase in ordinary shares reserved for issuance

'

'

'

'

'

'

'

2.00%

'

'

'

'

Maximum annual increase in ordinary shares reserved for issuance

'

'

'

'

'

'

'

685,714

'

'

281,625

'

Maximum shares that can be issued and transferred

'

'

'

'

'

'

'

15,474,018

'

'

'

'

Increase in shares reserved for issuance

'

'

'

'

685,714

685,714

685,714

'

281,625

281,625

'

'

Stock option activity under equity incentive plans

'

'

'

'

'

'

'

'

'

'

'

'

Options outstanding at the beginning of the period (in shares)

'

3,285,922

4,706,349

5,434,974

'

'

'

'

'

'

'

'

Options Granted (in shares)

'

31,653

879,160

1,060,938

'

'

'

'

'

'

'

31,653

Options exercised (in shares)

'

-376,588

-2,161,628

-1,586,577

'

'

'

'

'

'

'

'

Options cancelled (in shares)

'

-134,763

-137,959

-202,986

'

'

'

'

'

'

'

'

Options outstanding at the end of the period (in shares)

'

2,806,224

3,285,922

4,706,349

'

'

'

'

'

'

'

'

Weighted average exercise price of options outstanding

'

'

'

'

'

'

'

'

'

'

'

'

Options outstanding at the beginning of the period (in dollars per share)

'

$29.74

$13.42

$10.56

'

'

'

'

'

'

'

'

Options granted (in dollars per share)

'

$18.30

$70.72

$21.80

'

'

'

'

'

'

'

'

Options exercised (in dollars per share)

'

$14.08

$10.96

$8.83

'

'

'

'

'

'

'

'

Options cancelled (in dollars per share)

'

$62.47

$28.33

$16.46

'

'

'

'

'

'

'

'

Options outstanding at the end of the period (in dollars per share)

'

$30.14

$29.74

$13.42

'

'

'

'

'

'

'

'

Weighted average fair value of options granted (in dollars per share)

'

$8.91

$38.66

$18.51

'

'

'

'

'

'

'

'

Total pretax intrinsic value of options exercised

'

$12.90

$136.10

'

'

'

'

'

'

'

'

'

Closing price of ordinary shares (in dollars per share)

'

$39.97

$59.38

'

'

'

'

'

'

'

'

'

Total pretax intrinsic value of all outstanding options

'

51.8

112.4

'

'

'

'

'

'

'

'

'

Total pretax intrinsic value of all exercisable options

'

$48.60

$88.40

'

'

'

'

'

'

'

'

'

SHARE_INCENTIVE_PLANS_Details_

SHARE INCENTIVE PLANS: (Details 2) (USD $)	12 Months Ended
	Dec. 31, 2013
Exercise prices range from $ 3.13 to $ 8.23	'
Additional information about options outstanding and exercisable	'
Exercise price, low end of range (in dollars per share)	$3.13
Exercise price, high end of range (in dollars per share)	$8.23
Number of options outstanding (in shares)	323,962
Weighted Average Remaining Contractual Life, Options Outstanding	'4 years 5 months 8 days
Weighted Average Exercise Price, Options Outstanding (in dollars per share)	$7.83
Number of exercisable options outstanding (in shares)	323,962
Weighted Average Exercise Price, Options Exercisable (in dollars per share)	$7.83
Exercise prices range from $ 8.45 to $ 9.19	'
Additional information about options outstanding and exercisable	'
Exercise price, low end of range (in dollars per share)	$8.45
Exercise price, high end of range (in dollars per share)	$9.19
Number of options outstanding (in shares)	286,867
Weighted Average Remaining Contractual Life, Options Outstanding	'3 years 6 months 4 days
Weighted Average Exercise Price, Options Outstanding (in dollars per share)	$9.04
Number of exercisable options outstanding (in shares)	286,867
Weighted Average Exercise Price, Options Exercisable (in dollars per share)	$9.04
Exercise prices range from $ 10.23 to $ 10.23	'
Additional information about options outstanding and exercisable	'
Exercise price, low end of range (in dollars per share)	$10.23
Exercise price, high end of range (in dollars per share)	$10.23
Number of options outstanding (in shares)	556,177
Weighted Average Remaining Contractual Life, Options Outstanding	'5 years 2 months 8 days
Weighted Average Exercise Price, Options Outstanding (in dollars per share)	$10.23
Number of exercisable options outstanding (in shares)	556,177
Weighted Average Exercise Price, Options Exercisable (in dollars per share)	$10.23
Exercise prices range from $ 10.50 to $ 18.87	'
Additional information about options outstanding and exercisable	'
Exercise price, low end of range (in dollars per share)	$10.50
Exercise price, high end of range (in dollars per share)	$18.87
Number of options outstanding (in shares)	295,314
Weighted Average Remaining Contractual Life, Options Outstanding	'5 years 7 months 17 days
Weighted Average Exercise Price, Options Outstanding (in dollars per share)	$14.43
Number of exercisable options outstanding (in shares)	273,517
Weighted Average Exercise Price, Options Exercisable (in dollars per share)	$14.27
Exercise prices range from $ 18.97 to $ 27.72	'
Additional information about options outstanding and exercisable	'
Exercise price, low end of range (in dollars per share)	$18.97
Exercise price, high end of range (in dollars per share)	$27.72
Number of options outstanding (in shares)	299,958
Weighted Average Remaining Contractual Life, Options Outstanding	'6 years 6 months 14 days
Weighted Average Exercise Price, Options Outstanding (in dollars per share)	$23.06
Number of exercisable options outstanding (in shares)	229,353
Weighted Average Exercise Price, Options Exercisable (in dollars per share)	$23.08
Exercise prices range from $ 29.03 to $ 34.00	'
Additional information about options outstanding and exercisable	'
Exercise price, low end of range (in dollars per share)	$29.03
Exercise price, high end of range (in dollars per share)	$34
Number of options outstanding (in shares)	312,905
Weighted Average Remaining Contractual Life, Options Outstanding	'7 years 6 months 14 days
Weighted Average Exercise Price, Options Outstanding (in dollars per share)	$31.22
Number of exercisable options outstanding (in shares)	175,519
Weighted Average Exercise Price, Options Exercisable (in dollars per share)	$31.08
Exercise prices range from $ 35.12 to $ 57.41	'
Additional information about options outstanding and exercisable	'
Exercise price, low end of range (in dollars per share)	$35.12
Exercise price, high end of range (in dollars per share)	$57.41
Number of options outstanding (in shares)	274,664
Weighted Average Remaining Contractual Life, Options Outstanding	'8 years 1 month 6 days
Weighted Average Exercise Price, Options Outstanding (in dollars per share)	$46.39
Number of exercisable options outstanding (in shares)	125,973
Weighted Average Exercise Price, Options Exercisable (in dollars per share)	$45.52
Exercise prices range from $ 66.07 to $ 66.07	'
Additional information about options outstanding and exercisable	'
Exercise price, low end of range (in dollars per share)	$66.07
Exercise price, high end of range (in dollars per share)	$66.07
Number of options outstanding (in shares)	162,188
Weighted Average Remaining Contractual Life, Options Outstanding	'8 years 5 months 8 days
Weighted Average Exercise Price, Options Outstanding (in dollars per share)	$66.07
Number of exercisable options outstanding (in shares)	62,250
Weighted Average Exercise Price, Options Exercisable (in dollars per share)	$66.07
Exercise prices range from $ 79.38 to $ 79.38	'
Additional information about options outstanding and exercisable	'
Exercise price, low end of range (in dollars per share)	$79.38
Exercise price, high end of range (in dollars per share)	$79.38
Number of options outstanding (in shares)	20,700
Weighted Average Remaining Contractual Life, Options Outstanding	'8 years 9 months 29 days
Weighted Average Exercise Price, Options Outstanding (in dollars per share)	$79.38
Number of exercisable options outstanding (in shares)	5,909
Weighted Average Exercise Price, Options Exercisable (in dollars per share)	$79.38
Exercise prices range from $ 101.37 to $ 101.37	'
Additional information about options outstanding and exercisable	'
Exercise price, low end of range (in dollars per share)	$101.37
Exercise price, high end of range (in dollars per share)	$101.37
Number of options outstanding (in shares)	273,489
Weighted Average Remaining Contractual Life, Options Outstanding	'8 years 4 months 20 days
Weighted Average Exercise Price, Options Outstanding (in dollars per share)	$101.37
Number of exercisable options outstanding (in shares)	95,126
Weighted Average Exercise Price, Options Exercisable (in dollars per share)	$101.37
Exercise prices range from $ 3.13 to $ 101.37	'
Additional information about options outstanding and exercisable	'
Exercise price, low end of range (in dollars per share)	$3.13
Exercise price, high end of range (in dollars per share)	$101.37
Number of options outstanding (in shares)	2,806,224
Weighted Average Remaining Contractual Life, Options Outstanding	'6 years 2 months 12 days
Weighted Average Exercise Price, Options Outstanding (in dollars per share)	$30.14
Number of exercisable options outstanding (in shares)	2,134,653
Weighted Average Exercise Price, Options Exercisable (in dollars per share)	$21.28

SHARE_INCENTIVE_PLANS_Details_1

SHARE INCENTIVE PLANS: (Details 3) (USD $)	12 Months Ended
In Millions, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Ordinary shares reserved for future issuance under equity incentive plans	'	'	'
Total shares reserved for future issuance (in shares)	7,262,655	'	'
Restricted share units	'	'	'
Activity in nonvested restricted share units outstanding	'	'	'
Non vested restricted share units at the beginning of the period (in shares)	1,763,160	1,191,673	414,945
Restricted share units granted (in shares)	1,162,133	1,110,230	1,143,142
Restricted share units vested (in shares)	-778,084	-480,150	-224,005
Restricted share units cancelled (in shares)	-172,755	-58,593	-142,409
Non vested restricted share units at the end of the period (in shares)	1,974,454	1,763,160	1,191,673
Weighted Average Grant Date Fair Value, Restricted Share Units Outstanding	'	'	'
Non vested restricted share units at the beginning of the period (in dollars per share)	$36.29	$26.05	$19.86
Restricted share units granted (in dollars per share)	$49.05	$42.88	$27
Restricted share units vested (in dollars per share)	$31.16	$24.65	$20.02
Restricted share units cancelled (in dollars per share)	$42.49	$30.39	$24.97
Non vested restricted share units at the end of the period (in dollars per share)	$43.81	$36.29	$26.05
Total intrinsic value of all outstanding restricted share units	$78.90	'	'
Ordinary shares reserved for future issuance under equity incentive plans	'	'	'
Restricted share units outstanding	1,974,454	1,763,160	1,191,673
Stock options	'	'	'
Weighted Average Grant Date Fair Value, Restricted Share Units Outstanding	'	'	'
Restricted share units granted (in dollars per share)	$39.97	$59.38	'
Ordinary shares reserved for future issuance under equity incentive plans	'	'	'
Shares outstanding	2,806,224	'	'
Global Plan	'	'	'
Ordinary shares reserved for future issuance under equity incentive plans	'	'	'
Share authorized for future issuance (in shares)	1,236,003	'	'
Employee Share Purchase Plan	'	'	'
Ordinary shares reserved for future issuance under equity incentive plans	'	'	'
Share authorized for future issuance (in shares)	1,245,974	'	'

SHARE_INCENTIVE_PLANS_Details_2

SHARE INCENTIVE PLANS: (Details 4) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Aug. 31, 2012
Employee Share Purchase Plan	'	'	'	'
Share-based compensation	'	'	'	'
Maximum employee gross compensation percentage for ESPP participation	15.00%	'	'	'
ESPP purchase price percentage of market price	85.00%	'	'	'
Maximum shares that can be issued and transferred	2,585,712	'	'	'
Shares reserved for issuance pursuant to purchase rights under the ESPP	1,085,712	'	'	1,500,000
Maximum value of ordinary shares issued per employee pursuant to purchase rights under the ESPP per calendar year	$25,000	'	'	'
Shares issued under share-based compensation plan (in shares)	248,486	219,442	'	'
Weighted average price of shares issued (in dollars per share)	$37.56	$28.57	'	'
Weighted average assumptions	'	'	'	'
Expected volatility (as a percent)	56.18%	68.05%	41.80%	'
Risk-free interest rate (as a percent)	0.07%	0.12%	0.10%	'
Expected life	'6 months 11 days	'6 months 11 days	'6 months 11 days	'
Employee Share Options	'	'	'	'
Weighted average assumptions	'	'	'	'
Expected volatility (as a percent)	57.50%	56.60%	55.90%	'
Risk-free interest rate (as a percent)	1.54%	1.02%	1.72%	'
Expected life	'4 years 8 months 19 days	'6 years 3 months	'6 years 3 months	'

SHARE_INCENTIVE_PLANS_Details_3

SHARE INCENTIVE PLANS: (Details 5) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based compensation expense	'	'	'
Total share-based compensation expense	$45,138,000	$35,019,000	$21,412,000
Total unrecognized share-based compensation costs related to non-vested awards	89,800,000	'	'
Weighted average period for recognition of unrecognized share-based compensation costs	'2 years 3 months 25 days	'	'
Share options	'	'	'
Share-based compensation expense	'	'	'
Total share-based compensation expense	12,460,000	14,104,000	12,568,000
Employee Share Purchase Plan	'	'	'
Share-based compensation expense	'	'	'
Total share-based compensation expense	3,938,000	2,851,000	1,686,000
Restricted Stock	'	'	'
Share-based compensation expense	'	'	'
Total share-based compensation expense	28,740,000	18,064,000	7,158,000
Cost of goods sold	'	'	'
Share-based compensation expense	'	'	'
Total share-based compensation expense	1,828,000	1,621,000	980,000
Research and development	'	'	'
Share-based compensation expense	'	'	'
Total share-based compensation expense	25,956,000	19,356,000	11,906,000
Sales and marketing	'	'	'
Share-based compensation expense	'	'	'
Total share-based compensation expense	9,198,000	8,055,000	4,894,000
General and administrative	'	'	'
Share-based compensation expense	'	'	'
Total share-based compensation expense	$8,156,000	$5,987,000	$3,632,000

ACCUMULATED_OTHER_COMPREHENSIV2

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Accumulated other comprehensive income (loss)	'	'
Balance at the beginning of the period	$2,794	($1,164)
Other comprehensive income/loss before reclassifications	4,629	3,069
Amounts reclassified from accumulated other comprehensive income/loss	-6,033	889
Net current-period other comprehensive income/loss, net of taxes	-1,404	3,958
Balance at the end of the period	1,390	2,794
Unrealized Gains / Losses on Available-for-Sale Securities	'	'
Accumulated other comprehensive income (loss)	'	'
Balance at the beginning of the period	-148	-15
Other comprehensive income/loss before reclassifications	148	-129
Amounts reclassified from accumulated other comprehensive income/loss	-6	-4
Net current-period other comprehensive income/loss, net of taxes	142	-133
Balance at the end of the period	-6	-148
Gains / Losses on Derivatives	'	'
Accumulated other comprehensive income (loss)	'	'
Balance at the beginning of the period	2,942	-1,149
Other comprehensive income/loss before reclassifications	4,481	3,198
Amounts reclassified from accumulated other comprehensive income/loss	-6,027	893
Net current-period other comprehensive income/loss, net of taxes	-1,546	4,091
Balance at the end of the period	$1,396	$2,942

ACCUMULATED_OTHER_COMPREHENSIV3

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): (Details 2) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Reclassifications out of accumulated other comprehensive income	'	'	'
Cost of revenues	($135,239)	($157,936)	($92,015)
Research and development	-168,721	-138,946	-92,508
Sales and marketing	-70,318	-61,068	-40,366
General and administrative	-36,918	-24,541	-21,769
Cost of revenues and Operating expenses	-20,337	118,308	12,593
Other income, net	1,228	1,259	759
Net income (loss)	-22,861	111,380	9,977
Amount Reclassified from Other Comprehensive Income / Loss	'	'	'
Reclassifications out of accumulated other comprehensive income	'	'	'
Net income (loss)	6,033	'	'
Gains on Derivatives | Amount Reclassified from Other Comprehensive Income / Loss	'	'	'
Reclassifications out of accumulated other comprehensive income	'	'	'
Cost of revenues	363	'	'
Research and development	4,653	'	'
Sales and marketing	508	'	'
General and administrative	503	'	'
Cost of revenues and Operating expenses	6,027	'	'
Unrealized Gains (Losses) on Available-for-Sale Securities | Amount Reclassified from Other Comprehensive Income / Loss	'	'	'
Reclassifications out of accumulated other comprehensive income	'	'	'
Other income, net	$6	'	'

INCOME_TAXES_Details

INCOME TAXES: (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Components of income (loss) before income taxes	'	'	'
United States	($1,870,000)	$6,709,000	$3,479,000
Foreign	-17,239,000	112,858,000	9,873,000
Income (loss) before taxes on income	-19,109,000	119,567,000	13,352,000
Current:	'	'	'
U.S. federal	1,989,000	6,178,000	2,838,000
State and local	508,000	890,000	437,000
Foreign	3,110,000	4,573,000	907,000
Total current	5,607,000	11,641,000	4,182,000
Deferred:	'	'	'
U.S. federal	-1,174,000	-2,805,000	-658,000
State and local	-219,000	-226,000	-149,000
Foreign	-462,000	-423,000	'
Total deferred	-1,855,000	-3,454,000	-807,000
Provision for taxes on income	3,752,000	8,187,000	3,375,000
Deferred tax assets:	'	'	'
Net operating loss and credit carryforwards	44,251,000	30,644,000	'
Reserves and accruals	9,572,000	7,499,000	'
Depreciation and amortization	786,000	-174,000	'
Other	2,285,000	'	'
Gross deferred tax assets	56,894,000	37,969,000	'
Valuation allowance	-29,128,000	-32,073,000	'
Total deferred tax assets	27,766,000	5,896,000	'
Intangible assets	-13,275,000	'	'
Total deferred tax liabilities	-13,275,000	'	'
Net deferred tax assets	14,491,000	5,896,000	'
Non-Israeli subsidiaries' undistributed earnings	12,500,000	'	'
Reconciliation of the statutory federal income tax rate to the Company's effective tax rate	'	'	'
Tax at statutory rate (as a percent)	35.00%	35.00%	34.00%
State, net of federal benefit (as a percent)	2.90%	0.50%	2.20%
Meals and entertainment (as a percent)	-1.90%	0.10%	0.40%
Tax at rates other than the statutory rate (as a percent)	-35.70%	-32.90%	-15.60%
Share-based compensation (as a percent)	-4.60%	-0.10%	3.20%
Net change in tax reserves (as a percent)	-15.90%	4.80%	'
Other, net (as a percent)	0.60%	-0.60%	1.00%
Provision for taxes (as a percent)	-19.60%	6.80%	25.20%
Tax benefits recognized to additional paid in capital (APIC) pool	2,700,000	5,100,000	'
Income tax holiday	'	'	'
Corporate tax rate in 2013 (as a percent)	25.00%	'	'
Corporate tax rate in 2014 (as a percent)	26.50%	'	'
Summary of the activity related to the Company's unrecognized tax benefits	'	'	'
Unrecognized tax benefits which would reduce the Company's income tax expense and effective tax rate, if recognized	23,600,000	9,700,000	'
Gross unrecognized tax benefits, beginning of the period	9,716,000	4,063,000	'
Increases in tax positions for prior years	11,481,000	120,000	'
Decreases in tax positions for prior years	-11,000	'	'
Increases in tax positions for current year	3,029,000	5,533,000	'
Decreases in tax positions for current year	-630,000	'	'
Gross unrecognized tax benefits, end of the period	23,585,000	9,716,000	4,063,000
Total amount of accrued interest or penalties related to unrecognized tax benefit or tax contingencies	600,000	400,000	200,000
Ministry of Industry Trade and Labor	'	'	'
Income tax holiday	'	'	'
Cash tax savings due to tax holiday	6,400,000	33,200,000	'
Increase in diluted earnings per share	$0.15	$0.76	'
Ministry of Industry Trade and Labor | Yokneam	'	'	'
Income tax holiday	'	'	'
Period of tax holiday	'10 years	'	'
Ministry of Industry Trade and Labor | Tel-Aviv	'	'	'
Income tax holiday	'	'	'
Period of tax holiday	'2 years	'	'
Reduced income tax rate after second year of tax holiday (as a percent)	10.00%	'	'
Ministry of Industry Trade and Labor | Tel-Aviv | Minimum	'	'	'
Income tax holiday	'	'	'
Period for which reduced income tax rates are applicable beginning from fiscal year 2013	'5 years	'	'
Ministry of Industry Trade and Labor | Tel-Aviv | Maximum	'	'	'
Income tax holiday	'	'	'
Period for which reduced income tax rates are applicable beginning from fiscal year 2013	'8 years	'	'
Israel	'	'	'
Income tax holiday	'	'	'
Foreign net operating loss carryforwards	82,100,000	'	'
United States	'	'	'
Income tax holiday	'	'	'
Foreign net operating loss carryforwards	61,200,000	'	'
Denmark	'	'	'
Income tax holiday	'	'	'
Foreign net operating loss carryforwards	$14,200,000	'	'

GEOGRAPHIC_INFORMATION_AND_REV2

GEOGRAPHIC INFORMATION AND REVENUES BY PRODUCT GROUP: (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
	item
GEOGRAPHIC INFORMATION AND REVENUES BY PRODUCT GROUP:	'	'	'
Number of reportable segments	1	'	'
Revenues by geographic region	'	'	'
Total revenue	$390,859	$500,799	$259,251
United States	'	'	'
Revenues by geographic region	'	'	'
Total revenue	175,914	220,681	120,385
China	'	'	'
Revenues by geographic region	'	'	'
Total revenue	67,517	102,957	33,681
Israel	'	'	'
Revenues by geographic region	'	'	'
Total revenue	2,479	2,483	1,867
Europe	'	'	'
Revenues by geographic region	'	'	'
Total revenue	51,973	62,788	39,566
Other Americas	'	'	'
Revenues by geographic region	'	'	'
Total revenue	16,869	26,000	15,912
Other Asia	'	'	'
Revenues by geographic region	'	'	'
Total revenue	$76,107	$85,890	$47,840

GEOGRAPHIC_INFORMATION_AND_REV3

GEOGRAPHIC INFORMATION AND REVENUES BY PRODUCT GROUP: (Details 2) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Property and equipment, net by geographic location	'	'
Total property and equipment, net	$70,815	$62,375
Israel	'	'
Property and equipment, net by geographic location	'	'
Total property and equipment, net	65,883	61,388
United States	'	'
Property and equipment, net by geographic location	'	'
Total property and equipment, net	3,094	987
Other	'	'
Property and equipment, net by geographic location	'	'
Total property and equipment, net	$1,838	'

GEOGRAPHIC_INFORMATION_AND_REV4

GEOGRAPHIC INFORMATION AND REVENUES BY PRODUCT GROUP: (Details 3) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Revenues by product group	'	'	'
Total revenue	$390,859	$500,799	$259,251
ICs	'	'	'
Revenues by product group	'	'	'
Total revenue	56,817	95,103	46,564
Boards	'	'	'
Revenues by product group	'	'	'
Total revenue	119,399	155,670	98,004
Switch systems	'	'	'
Revenues by product group	'	'	'
Total revenue	145,184	168,231	76,398
Cables, accessories and other	'	'	'
Revenues by product group	'	'	'
Total revenue	$69,459	$81,795	$38,285

OTHER_INCOME_NET_Details

OTHER INCOME, NET: (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Other income, net	'	'	'
Interest income and gain on sale of investments, net	$1,738	$1,699	$630
Foreign exchange gain (loss)	-309	-294	374
Other	-201	-146	-245
Total other income, net	$1,228	$1,259	$759

SCHEDULE_II_CONSOLIDATED_VALUA1

SCHEDULE II - CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Activity in valuation and qualifying accounts	'	'	'
Balance at Beginning of Year	$32,791	$29,385	$3,722
Charged (Credited) to Costs and Expenses	-79	3,406	25,684
Deductions (Recovery)	-2,945	'	-21
Balance at End of Year	29,767	32,791	29,385
Allowance for doubtful accounts	'	'	'
Activity in valuation and qualifying accounts	'	'	'
Balance at Beginning of Year	'	557	402
Charged (Credited) to Costs and Expenses	'	82	155
Balance at End of Year	639	639	557
Allowance for sales returns and adjustments	'	'	'
Activity in valuation and qualifying accounts	'	'	'
Balance at Beginning of Year	79	337	75
Charged (Credited) to Costs and Expenses	-79	-258	262
Deductions (Recovery)	-2,945	'	'
Balance at End of Year	'	79	337
Income tax valuation allowance	'	'	'
Activity in valuation and qualifying accounts	'	'	'
Balance at Beginning of Year	'	28,491	3,245
Charged (Credited) to Costs and Expenses	'	3,582	25,267
Deductions (Recovery)	'	'	-21
Balance at End of Year	$29,128	$32,073	$28,491