Varonis Systems (VRNS) 10-K 12 Feb 16 2015 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Feb. 09, 2016	Jun. 30, 2015
Entity Registrant Name	VARONIS SYSTEMS INC
Entity Central Index Key	1,361,113
Trading Symbol	vrns
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		26,077,731
Entity Public Float			$ 237.2
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 49,241	$ 76,593
Short-term Investments	57,103	35,102
Trade receivables (net of allowance for doubtful accounts of $ 156 and $ 149 at December 31, 2015 and at December 31, 2014, respectively)	47,436	37,869
Prepaid expenses and other current assets	2,622	2,962
Total current assets	156,402	152,526
Long-term assets:
Other assets	477	332
Property and equipment, net	8,265	3,989
Total long-term assets	8,742	4,321
Total assets	165,144	156,847
Current liabilities:
Trade payables	2,612	2,703
Accrued expenses and other short term liabilities	23,029	16,754
Deferred revenues	45,675	33,753
Total current liabilities	71,316	53,210
Long-term liabilities:
Deferred revenues	3,096	3,464
Severance pay	1,528	1,449
Other liabilities	5,617	3,698
Total long-term liabilities	10,241	8,611
Stockholders’ equity:
Common stock of $ 0.001 par value—Authorized: 200,000,000 shares at December 31, 2015 and 2014; Issued and outstanding: 26,069,154 shares at December 31, 2015 and 24,685,604 shares at December 31, 2014	26	25
Accumulated other comprehensive loss	(331)	(326)
Additional paid-in capital	172,326	162,478
Accumulated deficit	(88,434)	(67,151)
Total stockholders’ equity	83,587	95,026
Total liabilities and stockholders’ equity	$ 165,144	$ 156,847

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Allowance for doubtful accounts	$ 156	$ 149
Common stock, share authorized (in shares)	200,000,000	200,000,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, share issued (in shares)	26,069,154	24,685,604
Common stock, share outstanding (in shares)	26,069,154	24,685,604

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues:
Licenses	$ 71,273	$ 58,420	$ 43,488
Maintenance and services	55,937	42,928	31,128
Total revenues	127,210	101,348	74,616
Cost of revenues	12,019	9,911	6,476
Gross profit	115,191	91,437	68,140
Operating costs and expenses:
Research and development	31,792	28,086	20,973
Sales and marketing	86,367	68,787	44,131
General and administrative	16,106	11,872	8,881
Total operating expenses	134,265	108,745	73,985
Operating loss	(19,074)	(17,308)	(5,845)
Financial expenses, net	(1,523)	(1,714)	(1,274)
Loss before income taxes	(20,597)	(19,022)	(7,119)
Income taxes	(686)	(376)	(356)
Net loss	$ (21,283)	$ (19,398)	$ (7,475)
Net loss per share of common stock, basic and diluted (in dollars per share)	$ (0.84)	$ (0.91)	$ (1.93)
Weighted average number of shares used in computing net loss per share of common stock, basic and diluted (in shares)	25,198,546	21,242,313	3,880,761

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Net loss	$ (21,283)	$ (19,398)	$ (7,475)
Other comprehensive loss:
Unrealized losses on derivative instruments	(5)	(326)
Total other comprehensive loss	(5)	(326)
Comprehensive loss	$ (21,288)	$ (19,724)	$ (7,475)

Consolidated Statements of Chan

Consolidated Statements of Changes in Convertible Preferred Stock and Stockholders' Equity (Deficiency) - USD ($) $ in Thousands		Convertible Preferred Stock [Member]	Common Stock [Member]		Additional Paid-in Capital [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Total
Balance as of January 1, 2013 (in shares) at Dec. 31, 2012		14,856,481	3,848,293
Balance as of January 1, 2013 at Dec. 31, 2012		$ 37,959	$ 4		$ 2,826		$ (40,278)	$ (37,448)
Exercise of warrants to purchase Series D convertible preferred stock (in shares)		225,660
Exercise of warrants to purchase Series D convertible preferred stock		$ 5,816
Allocated Share-based Compensation Expense					1,788			$ 1,788
Exercise of stock options (in shares)			105,021	[1]				105,021
Exercise of stock options					127			$ 127
Net loss							(7,475)	(7,475)
Balance (in shares) at Dec. 31, 2013		15,082,141	3,953,314
Balance at Dec. 31, 2013		$ 43,775	$ 4		4,741		(47,753)	$ (43,008)
Unrealized losses on derivative instruments
Unrealized loss on derivative instruments
Allocated Share-based Compensation Expense					4,664			$ 4,664
Exercise of stock options (in shares)			238,951	[1]				213,174
Exercise of stock options					381			$ 382
Net loss							(19,398)	(19,398)
Balance (in shares) at Dec. 31, 2014			24,685,604
Balance at Dec. 31, 2014			$ 25		162,478	$ (326)	(67,151)	95,026
Issuance of common stock upon initial public offering (net of issuance costs of $2,376) (in shares)			5,300,436
Issuance of common stock upon initial public offering (net of issuance costs of $2,376)			$ 5		106,066			106,071
Conversion of preferred stock to common stock upon initial public offering (in shares)		(15,082,141)	15,082,141
Conversion of preferred stock to common stock upon initial public offering		$ (43,775)	$ 15		43,760			43,775
Conversion of warrants to purchase preferred stock into warrants to purchase common stock					2,866			2,866
Exercise of warrants to purchase common stock (in shares)	[1]		107,217
Exercise of restricted stock units (in shares)	[1]		3,545
Unrealized losses on derivative instruments						(326)		(326)
Unrealized loss on derivative instruments						(326)		(326)
Allocated Share-based Compensation Expense					7,794			$ 7,794
Exercise of stock options (in shares)			1,350,162					1,334,351
Exercise of stock options					2,054			$ 2,055
Net loss							(21,283)	(21,283)
Balance (in shares) at Dec. 31, 2015			26,069,154
Balance at Dec. 31, 2015			$ 26		$ 172,326	(331)	$ (88,434)	83,587
Unrealized losses on derivative instruments						(5)		(5)
Exercise of restricted stock units (in shares)			33,388
Unrealized loss on derivative instruments						$ (5)		$ (5)
[1]	Represents an amount lower than $1.

Consolidated Statements of Cha7

Consolidated Statements of Changes in Convertible Preferred Stock and Stockholders' Equity (Deficiency) (Parentheticals) $ in Thousands	12 Months Ended
	Dec. 31, 2014USD ($)
Additional Paid-in Capital [Member]
Issuance costs	$ 2,376

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net loss	$ (21,283)	$ (19,398)	$ (7,475)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation	1,615	1,285	796
Stock-based compensation	7,794	4,664	1,788
Capital gain from disposal of fixed assets	$ (4)	(10)	(5)
Amortization of deferred charges related to loan		$ 187	200
Revaluation of fair value of warrants to convertible preferred stock			1,508
Changes in assets and liabilities:
Trade receivables	$ (9,567)	$ (9,601)	(8,233)
Prepaid expenses and other current assets	796	19	19
Trade payables	(91)	540	267
Accrued expenses and other short term liabilities	6,270	5,541	3,460
Severance pay, net	79	348	377
Deferred revenues	11,554	8,517	7,427
Other long term liabilities	108	798	(75)
Net cash provided by (used in) operating activities	(2,729)	(7,110)	54
Cash flows from investing activities:
Increase in short-term deposits	(22,001)	(30,758)	(4,001)
Decrease (increase) in long-term deposits	11	39	(28)
Decrease (increase) in restricted cash	(156)	$ 230	$ (338)
Proceeds from sale of property and equipment	4
Purchase of property and equipment	(4,536)	$ (2,333)	$ (1,349)
Net cash used in investing activities	(26,678)	(32,822)	(5,716)
Cash flows from financing activities:
Exercise of employee stock options	$ 2,055	$ 382	127
Exercise of warrants to purchase Series D convertible preferred stock			1,137
Payment of deferred equity offering cost		$ (1,937)	$ (439)
Net proceeds from initial public offering		108,447
Net cash provided by financing activities	$ 2,055	106,892	$ 825
Increase (decrease) in cash and cash equivalents	(27,352)	66,960	(4,837)
Cash and cash equivalents at beginning of period	76,593	9,633	14,470
Cash and cash equivalents at end of period	49,241	76,593	$ 9,633
Supplemental disclosures of non-cash flow information
Deferred rent fixed asset additions	$ 1,355	1,071
Conversion of preferred stock to common stock		43,775
Conversion of liability warrants to equity		$ 2,866
Deferred charges related to warrants granted to credit facilitator			$ 263
Exercise of warrants to purchase Series D convertible preferred stock			4,679
Supplemental disclosure of cash flow information:
Cash paid for income taxes	$ 354	$ 304	$ 227

Note 1 - General

Note 1 - General	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	NOTE 1: GENERAL a. Varonis Systems, Inc. (“VSI” and together with its subsidiaries, collectively, the “Company”) was incorporated under the laws of the State of Delaware on November 3, 2004 and commenced operations on January 1, 2005. VSI has five wholly-owned subsidiaries: Varonis Systems Ltd. (“VSL”) incorporated under the laws of Israel on November 24, 2004; Varonis UK (“VSUK”) incorporated under the laws of England on March 14, 2007; Varonis Systems (Deutschland) GmbH (“VSG”) incorporated under the laws of Germany on July 6, 2011; Varonis France SAS (“VSF The Company’s software products and services allow enterprises to analyze, secure, manage and better utilize their unstructured data. The Company specializes in human-generated data, a type of unstructured data that includes an enterprise’s word processing documents, spreadsheets, presentations, audio files, video files, emails, text messages, and any other data created by employees. Through its products the DatAdvantage platform, DataPrivilege, IDU Classification Framework, DatAnywhere, Data Transport Engine and DatAnswers, the software platform allows enterprises to realize the value of their human-generated data in ways that are not resource-intensive and easy to implement. VSI markets and sells products and services mainly in the United States. VSUK, VSG, VSF and VSC resell the Company’s products and services mainly in the UK, Germany, France and rest of Europe and Canada, respectively. The Company primarily sells its products and services to a global network of distributors and Value Added Resellers (VARs), which sell the products to end users customers. b. Initial Public Offering: On March 5, 2014, the Company closed its initial public offering (“IPO”) whereby 5,300,436 shares of common stock were sold by the Company to the public (inclusive of 500,436 shares of common stock pursuant to the full exercise of an overallotment option granted to the underwriters). The aggregate net proceeds received by the Company from the offering were approximately $106,071, net of underwriting discounts and commissions and offering expenses payable by the Company. Upon the closing of the IPO, all shares of the Company’s outstanding convertible preferred stock automatically converted into 15,082,141 shares of common stock, and outstanding warrants to purchase convertible preferred stock automatically converted into warrants to purchase 122,572 shares of common stock. On March 13, 2014, all such warrants were exercised, in a net share settlement, resulting in the issuance of 107,217 shares of common stock.

Note 2 - Significant Accounting

Note 2 - Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Significant Accounting Policies [Text Block]	NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements are prepared according to United States generally accepted accounting principles (“U.S. GAAP”), applied on a consistent basis, as follows: a. Use of Estimates: The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates, judgments and assumptions. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, the Company’s management evaluates estimates, including those related to accounts receivable and sales allowances, fair values of stock-based awards, deferred taxes and income tax uncertainties, and contingent liabilities. Such estimates are based on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. b. Financial Statements in U.S. Dollars: Most of the revenues and costs of VSI are denominated in United States dollars (“dollars”). Some of the subsidiaries’ revenues and costs are primarily incurred in Euros, the Pound Sterling, Canadian dollars and New Israeli Shekels (“NIS”); however, the Company’s management believes that the dollar is the primary currency of the economic environment in which VSI and each of its subsidiaries operate. Thus, the dollar is the Company’s functional and reporting currency. Accordingly, transactions denominated in currencies other than the functional currency are re-measured to the functional currency in accordance with ASC No. 830, “Foreign Currency Matters” at the exchange rate at the date of the transaction or the average exchange rate in the quarter. At the end of each reporting period, financial assets and liabilities are re-measured to the functional currency using exchange rates in effect at the balance sheet date. Non-financial assets and liabilities are re-measured at historical exchange rates. Gains and losses related to re-measurement are recorded as financial income (expense) in the consolidated statements of operations as appropriate. c. Principles of Consolidation: The consolidated financial statements include the accounts of VSI and its wholly-owned subsidiaries, VSL, VSUK, VSG, VSF and VSC. All intercompany transactions and balances have been eliminated upon consolidation. d. Cash Equivalents: Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less. e. Short-Term Deposits: A short-term bank deposit is a deposit with a maturity of more than three months but less than one year. Deposits in U.S. dollars bear interest at rates ranging from 0.30%-1.00% and 0.30%-0.70%, per annum, as of December 31, 2015 and 2014, respectively. The Company had no short-term deposits in NIS as of December 31, 2015. Deposits in NIS bore interest at rates ranging from 0.35%-0.39%, per annum, as of December 31, 2014. Short-term deposits are presented at cost which approximates market value due to their short maturities. f. Restricted Cash: Restricted cash is primarily invested in certificates of deposit and is used mostly as security for the Company’s lease commitments. The Company had no short-term restricted cash as of December 31, 2015 and 2014, respectively. The Company had long-term restricted cash in the amount of $468 and $312 as of December 31, 2015 and 2014, respectively. g. Property and Equipment: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computer equipment 33 Office furniture and equipment 7 - 15 Leasehold improvements Over the shorter of the lease term or estimated useful life h. Impairment of Long-Lived Assets: The Company’s long-lived assets are reviewed for impairment in accordance with ASC No. 360 “Property, Plant and Equipment” whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. Recoverability of assets (or asset group) to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. During the years ended December 31, 2015, 2014 and 2013, no impairment losses have been recorded. i. Long-Term Lease Deposits: Long-term lease deposits include long-term deposits for offices. j. Revenue Recognition: The Company generates revenues in the form of software license fees and related maintenance and services fees. Maintenance and services primarily consist of fees for maintenance services (including support and unspecified upgrades and enhancements when and if they are available) and professional services (including training) that are not essential to functionality of the Company’s software. The Company sells its products worldwide directly to a network of distributors and VARs. The Company accounts for the sale of perpetual software in accordance with ASC No. 985-605, “Software Revenue Recognition”. As required by ASC 985-605, the Company determines the value of the software component of its multiple-element arrangements using the residual method when vendor specific objective evidence (VSOE) of fair value exists for the undelivered elements of maintenance, and professional services agreements. VSOE is based on the price charged when an element is sold separately or renewed. Under the residual method, the fair value of the undelivered elements is deferred, and the remaining portion of the arrangement fee is allocated to the delivered elements and is recognized as revenue, when all ASC 985-605 criteria for revenue recognition are met. The Company determines the fair value based on the stand alone sales price charged for maintenance, and professional services. The Company has defined classes of transactions, based on the value of licensed software products purchased from the Company. The Company prices renewals for each class of transaction as a fixed percentage of the total gross value of licensed software products the customer purchased. Software license revenues are recognized when persuasive evidence of an arrangement exists, the software license has been delivered, there are no uncertainties surrounding product acceptance, there are no significant future performance obligations, the license fees are fixed or determinable and collection of the license fee is considered probable. Fees for arrangements with payment terms extending beyond customary payment terms are considered not to be fixed or determinable, in which case revenue is deferred and recognized when payments become due from the customer provided that all other revenue recognition criteria have been met. The Company recognizes revenues from the sale of term license arrangements, ratably, on a straight-line basis, over the term of the underlying maintenance contract, and is typically up to one year. The Company recognizes revenues from maintenance ratably over the term of the underlying maintenance contract term. The term of the maintenance contract is usually one year. Revenues from professional services consist mostly of time and material services and, accordingly, are recognized as the services are performed or when the service term has expired. Professional services bundled with licensed software and other software related elements are not essential to the functionality of the other elements of the arrangement. Revenues allocable to the services are recognized as the services are performed, using VSOE for such services. Deferred revenues represent unrecognized fees billed or collected for maintenance and professional services. The Company does not grant a right of return to its customers, except for one of its resellers. During the years ended December 31, 2015, 2014 and 2013, there were no returns from this reseller. k. Cost of Revenues: Cost of revenues consists of the cost of maintenance and services, resulting from costs associated with support, and professional services. l. Accounting for Stock-Based Compensation: The Company accounts for stock-based compensation in accordance with ASC No. 718, “Compensation-Stock Compensation”. ASC No. 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an Option-Pricing Model (“OPM”). The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company’s consolidated statements of operations. The Company recognizes compensation expenses for the value of its awards granted based on the straight-line method over the requisite service period of each of the awards, net of estimated forfeitures. ASC No. 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Estimated forfeitures are based on actual historical pre-vesting forfeitures. The Company applies ASC 718 and ASC 505-50, “Equity-Based Payments to Non-Employees” with respect to options issued to non-employees consultants. Accordingly, the Company uses option valuation models to measure the fair value of the options at the measurement date as defined in ASC 505-50. The Company selected the Black-Scholes-Merton option pricing model as the most appropriate fair value method for its stock options awards, whereas the fair value of restricted stock units is based on the market value of the underlying shares at the date of grant. The fair value of options granted to employees and non-employee directors is estimated at the date of grant using the following weighted average assumptions: Year ended December 31, 2015 2014 2013 Dividend yield 0% 0% 0% Expected volatility 65% 60 - 64% 60% - 75% Risk-free interest 1.94 - 2.00% 1.97 - 2.30% 1.13 - 2.29% Expected life 6.25 6.25 6.25 The Company used its historical volatility in accordance with ASC 718. The computation of volatility uses historical volatility derived from the Company’s exchange traded shares. Expected term of options granted is calculated based on the simplified method, in accordance with SAB 110, (i.e., as the average between the vesting period and the contractual term of the options), as adequate historical experience is not available to provide a reasonable estimate. The risk free interest rate assumption is the implied yield currently available on United States treasury zero-coupon issues with a remaining term equal to the expected life of the Company’s options. The dividend yield assumption is based on the Company’s historical experience and expectation of no future dividend payouts and may be subject to substantial change in the future. The Company has historically not paid cash dividends and has no foreseeable plans to pay cash dividends in the future. The non-cash compensation expenses related to employees and consultants for the years ended December 31, 2015, 2014 and 2013 amounted to $7,794, $4,664 and $1,788, respectively. m. Research and Development Costs: Research and development costs are charged to the statement of operations as incurred. ASC No. 985-20, “Software-Costs of Software to Be Sold, Leased, or Marketed,” requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. Based on the Company’s product development process, technological feasibility is established upon the completion of a working model. The Company does not incur material costs between the completion of the working model and the point at which the product is ready for general release. Therefore, research and development costs are charged to the statement of operations as incurred. n. Income Taxes: The Company accounts for income taxes in accordance with Accounting Standards Codification No. 740, using the liability method whereby deferred tax assets and liability account balances are determined based on the differences between financial reporting and the tax basis for assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to the amounts that are more likely-than-not to be realized. ASC 740 contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company accrues interest and penalties related to unrecognized tax provisions in its taxes on income. o. Derivative Instruments: The Company’s primary objective for holding derivative instruments is to reduce its exposure to foreign currency rate changes. The Company reduces its exposure by entering into forward foreign exchange contracts with respect to operating expenses that are forecast to be incurred in currencies other than the U.S. dollar. A majority of the Company’s revenues and a majority of its operating expenditures are transacted in U.S. dollars. However, certain operating expenditures are incurred in or exposed to other currencies, primarily the New Israeli Shekel (“NIS”). The Company has established forecasted transaction currency risk management programs to protect against fluctuations in fair value and the volatility of future cash flows caused by changes in exchange rates. The Company’s currency risk management program includes forward foreign exchange contracts designated as cash flow hedges. These forward foreign exchange contracts generally mature within 12 months. The Company does not enter into derivative financial instruments for trading purposes. Derivative instruments measured at fair value and their classification on the consolidated balance sheets are presented in the following table (in thousands): Liabilities as of December 31, 2015 Liabilities as of Notional Amount Fair Value Notional Fair Foreign Exchange Forward Contract Derivatives in cash flow hedging relationships—included in accrued expenses and other liabilities $ 36,070 $ (331 ) $ 30,662 $ (326 ) For the year ended December 31, 2015 and 2014, the consolidated statements of operations reflect a loss of approximately $307 and $864, respectively, related to the effective portion of foreign currency forward contracts. There was no ineffective portion for the year ended December 31, 2015 and 2014. p. Concentrations of Credit Risks: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, short-term deposits and trade receivables. The Company’s cash, cash equivalents and short-term deposits are invested in major banks mainly in the United States but also in the United Kingdom, France, Germany, Israel and Canada. Such deposits in the United States may be in excess of insured limits and are not insured in other jurisdictions. The Company maintains cash and cash equivalents with diverse financial institutions and monitors the amount of credit exposure to each financial institution. The Company’s trade receivables are geographically diversified and derived primarily from sales to a network of distributors and VARs mainly in the United States and Europe. Concentration of credit risk with respect to trade receivables is limited by credit limits, ongoing credit evaluation and account monitoring procedures. The Company performs ongoing credit evaluations of its channel partners and establishes an allowance for doubtful accounts based upon a specific review of all significant outstanding invoices. The Company writes off receivables when they are deemed uncollectible and having exhausted all collection efforts. q. Retirement and Severance Pay: VSI makes available to its employees a retirement plan (the “U.S. Plan”) that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Participants in the U.S. Plan may elect to defer a portion of their pre-tax earnings, up to the Internal Revenue Service annual contribution limit. VSI matches 100% of each participant’s contributions up to a maximum of 3% of the participant’s base pay and 50% of each participant’s contributions on contributions between 3% and 5% of the participant’s base pay. Each participant may contribute up to 80% of base remuneration up to the Internal Revenue Service’s annual contribution limit. Contributions to the U.S. Plan are recorded during the year contributed as an expense in the consolidated statements of income. Pursuant to Israel’s Severance Pay Law, Israeli employees are entitled to severance pay equal to one month’s salary for each year of employment, or a portion thereof. The employees of the Israeli subsidiary elected to be included under section 14 of the Severance Pay Law, 1963 (“section 14”). According to this section, these employees are entitled only to monthly deposits, at a rate of 8.33% of their monthly salary, made in their name with insurance companies. Payments in accordance with section 14 release the Company from any future severance payments (under the above Israeli Severance Pay Law) in respect of those employees; therefore, related assets and liabilities are not presented in the balance sheet. The Company’s liability for severance pay for the employees of its French subsidiary is calculated pursuant to French law, according to which French employees are entitled to an indemnity (a statutory redundancy). The law provides for the payment of severance payment to any employee working for the French subsidiary for at least a year. Total Company expenses related to retirement and severance pay amounted to $3,085, $2,651 and $1,739 for the years ended December 31, 2015, 2014 and 2013, respectively. r. Fair Value of Financial Instruments: Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: • Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2: Observable inputs that reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3: Unobservable inputs reflecting our own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The carrying amounts of cash and cash equivalents, trade receivables, short-term deposits and trade payables approximate their fair value due to the short-term maturity of such instruments. s. Basic and Diluted Net Loss Per Share: Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including stock options, convertible preferred stock warrants stock, to the extent dilutive. Basic and diluted net loss per share was the same for each period presented as the inclusion of all potential shares of common stock outstanding would have been anti-dilutive. t. Contingent Liabilities: The Company accounts for its contingent liabilities in accordance with ASC No. 450 “Contingencies”. A provision is recorded when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. With respect to legal matters, provisions are reviewed and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. As of December 31, 2015 and 2014, the Company was not a party to any ligation that could have a material adverse effect on the Company’s business, financial position, results of operations or cash flows. u. Recently Issued Accounting Pronouncements: In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes”, which simplifies the presentation of deferred income taxes. This ASU requires that deferred tax assets and liabilities be classified as non-current in a statement of financial position. The Company early adopted ASU 2015-17 effective December 31, 2015 on a prospective basis. No prior periods were retrospectively adjusted. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”, an updated standard on revenue recognition. ASU 2014-09 provides enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies reporting using IFRS and US GAAP. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration (that is, payment) to which the company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and improve guidance for multiple-element arrangements. ASU 2014-09 was initially scheduled to be effective for annual and interim reporting periods beginning after December 15, 2016 and may be adopted either on a full retrospective or modified retrospective approach. However, on July 9, 2015, the FASB approved a one year deferral of the effective date of ASU 2014-09. The revised effective date is for annual reporting periods beginning after December 15, 2017 and interim periods thereafter, with an early adoption permitted as of the original effective date. The Company is still evaluating the impact of implementation of this standard on its consolidated financial statements.

Note 3 - Prepaid Expenses and O

Note 3 - Prepaid Expenses and Other Current Assets	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Prepaid Expenses and Other Current Assets [Text Block]	NOTE 3:- PREPAID EXPENSES AND OTHER CURRENT ASSETS December 31, 2015 2014 Prepaid expenses $ 1,464 $ 852 Government institutions & other receivables 507 134 Deferred charges 474 1,811 Short-term deposits 136 128 Other 41 37 $ 2,622 $ 2,962 Deferred charges relate to lease incentive, see Note 6b.

Note 4 - Property and Equipment

Note 4 - Property and Equipment, Net	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	NOTE 4:- PROPERTY AND EQUIPMENT, NET December 31, 2015 2014 Cost: Computer equipment $ 6,342 $ 5,306 Office furniture and equipment 1,558 841 Leasehold improvements 5,884 1,774 13,784 7,921 Accumulated depreciation 5,519 3,932 Property and equipment, net $ 8,265 $ 3,989 Depreciation expenses for the years ended December 31, 2015, 2014 and 2013 were $1,615, $1,285 and $796, respectively.

Note 5 - Accrued Expenses and O

Note 5 - Accrued Expenses and Other Short Term Liabilities	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block]	NOTE 5:- ACCRUED EXPENSES AND OTHER SHORT TERM LIABILITIES December 31, 2015 2014 Employees $ 10,133 $ 7,890 Accrued expenses 5,781 4,022 Government authorities and other 6,270 4,477 Foreign exchange forward contract derivatives 331 326 Other short term liabilities 514 39 $ 23,029 $ 16,754

Note 6 - Commitments and Contin

Note 6 - Commitments and Contingent Liabilities	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	NOTE 6:- COMMITMENTS AND CONTINGENT LIABILITIES a. Liens: The Company has several liens granted to financial institutions mainly to secure various operating lease agreements in connection with its office space. b. Lease Commitments: The Company rents its facilities in all locations under operating leases with lease periods expiring from 2016-2026. The lease agreements of VSL include extension options. VSL leases cars for its employees under operating lease agreements expiring at various dates from 2016-2018. Aggregate minimum rental commitments under non-cancelable leases as of December 31, 2015 for the upcoming years were as follows: Payments Due By 2016 $ 3,929 2017 3,768 2018 3,693 2019 3,738 2020 2,764 Thereafter 14,655 $ 32,547 Total rent expenses for the years ended December 31, 2015, 2014 and 2013 were $4,296, $2,986 and $1,636, respectively. The total minimum rent to be received in the future under the non-cancelable sublease as of December 31, 2015 was $2,263. For leases that contain predetermined fixed escalations of the minimum rent, the Company recognizes the related rent expense on a straight-line basis from the date of possession of the property to the end of the initial lease term. The Company records any differences between the straight-line rent amounts and amounts payable under the leases as part of deferred rent, in accrued liabilities or long-term liabilities, as appropriate. Cash or lease incentives received upon entering into certain leases (“tenant allowances”) are recognized on a straight-line basis as a reduction to rent from the date of possession of the property through the end of the initial lease term. The Company records the unamortized portion of tenant allowances as a part of deferred rent, in current liabilities or other long-term liabilities, as appropriate. At December 31, 2015 and 2014, deferred rent included $514 and $39, respectively, in current liabilities in the Company’s consolidated balance sheets, and deferred rent included $5,366 and $3,698, respectively, in long-term liabilities in the Company’s consolidated balance sheets. On March 31, 2014, the Company entered into a promissory note and related security documents with Bank Leumi USA. The Company may borrow up to $7,000 against certain of its accounts receivable outstanding amount, based on several conditions, at an annual interest rate of the Wall Street Journal Prime Rate less 0.15%. As of December 31, 2015, that rate amounted to 3.35%. This promissory note enables the Company, among other things,

Note 7 - Fair Value Measurement

Note 7 - Fair Value Measurements	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Fair Value Disclosures [Text Block]	N OTE 7:- FAIR VALUE MEASUREMENTS The following table sets forth the Company’s liabilities that were measured at fair value as of December 31, 2015 and 2014 by level within the fair value hierarchy (in thousands): As of December 31, 2015 As of December 31, 2014 Level I Level II Level III Fair Level I Level II Level III Fair Financial liabilities: Forward foreign exchange contracts — (331 ) — (331 ) — (326 ) — (326 ) Total financial liabilities $ — $ (331 ) $ — $ (331 ) $ — $ (326 ) $ — $ (326 )

Note 8 - Stockholders' Equity (

Note 8 - Stockholders' Equity (Deficiency)	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	NOTE 8:- STOCKHOLDERS’ EQUITY (DEFICIENCY) a. Composition of common stock capital: Authorized Issued and outstanding Number of shares December 31, December 31, 2015 2014 2015 2014 Stock of $0.001 par value: Common stock 200,000,000 200,000,000 26,069,154 24,685,604 b. Common stock rights: The Company’s Amended and Restated Certificate of Incorporation authorizes the Company to issue 200,000,000 shares of common stock, par value $0.001 per share. The common stock confers upon its holders the right to participate in the general meetings of the Company, to vote at such meetings (each share represents one vote), to elect board members and to participate in any distribution of dividends or any other distribution of the Company’s property, including the distribution of surplus assets upon liquidation. c. Stock option plans: On December 30, 2005, the Company’s board of directors adopted the Varonis Systems, Inc. 2005 Stock Plan (the “2005 Stock Plan”). As of December 31, 2013, the Company had reserved 4,713,319 shares of common stock available for issuance to employees, directors, officers and consultants of the Company and its subsidiaries. The options generally vest over four years. No awards were granted under the 2005 Stock Plan subsequent to December 31, 2013, and no further awards will be granted under the 2005 Stock Plan. On November 14, 2013, the Company’s board of directors adopted the Varonis Systems, Inc. 2013 Omnibus Equity Incentive Plan (the “2013 Plan”) which was subsequently approved by the Company’s stockholders. The Company initially reserved 1,904,633 shares of common stock for issuance under the 2013 Plan to employees, directors, officers and consultants of the Company and its subsidiaries. The number of shares of common stock available for issuance under the 2013 Plan will be increased on January 1, 2016 and on each January 1 thereafter by four percent (4%) of the number of shares of common stock issued and outstanding on each December 31 immediately prior to the date of increase (rounded down to the nearest whole share), but the amount of each increase will be limited to the number of shares of common stock necessary to bring the total number of shares of Common Stock available for grant and issuance under the 2013 Plan to five percent (5%) of the number of shares of common stock issued and outstanding on each December 31. On January 1, 2016, the share reserve under the 2013 Plan was automatically increased by 1,042,766 shares. Awards granted under the 2013 Plan generally vest over four years. Any award that is forfeited or canceled before expiration becomes available for future grants under the 2013 Plan. A summary of employees’ stock options activities during the year ended December 31, 2015 is as follows: Year ended Number Weighted Aggregate Weighted Options outstanding at the beginning of the year 4,080,611 $ 9.697 $ 95,855 6.092 Granted 191,200 $ 28.253 Exercised (1,334,351 ) $ 1.521 Forfeited (154,900 ) $ 25.265 Options outstanding at the end of the period 2,782,560 $ 14.026 $ 21,337 6.246 Vested and expected to vest 2,677,503 $ 13.623 $ 21,284 6.156 Options exercisable at the end of the period 1,794,249 $ 8.841 $ 20,496 5.035 A summary of employees’ stock options activities during the years ended December 31, 2014 and 2013 is as follows: Year ended Number Weighted Aggregate Weighted Options outstanding at the beginning of the year 3,233,235 $ 4.033 $ 65,723 5.700 Granted 1,111,940 $ 25.077 Exercised (213,174 ) $ 1.663 Forfeited (51,390 ) $ 19.449 Options outstanding at the end of the period 4,080,611 $ 9.697 $ 95,855 6.092 Vested and expected to vest 3,965,741 $ 9.318 $ 94,581 6.000 Options exercisable at the end of the period 2,620,454 $ 2.638 $ 79,117 4.359 Year ended Number Weighted Aggregate Weighted Options outstanding at the beginning of the year 2,809,923 $ 1.782 $ 43,801 5.952 Granted 541,150 $ 15.267 Exercised (105,021 ) $ 1.239 Forfeited (12,817 ) $ 13.998 Options outstanding at the end of the period 3,233,235 $ 4.033 $ 65,723 5.700 Vested and expected to vest 3,203,465 $ 3.941 $ 65,412 5.668 Options exercisable at the end of the period 2,550,694 $ 1.473 $ 58,377 4.799 The weighted average grant date fair values of options granted during the years ended December 31, 2015, 2014 and 2013 were $28.637, $14.087 and $14.002, respectively. The aggregate intrinsic value in the table above represents the total intrinsic value that would have been received by the option holders had all option holders exercised their options on the last date of the exercise period. Total intrinsic value of options exercised for the years ended December 31, 2015, 2014 and 2013 were $27,885, $4,800 and $2,218, respectively. As of December 31, 2015 and 2014, there were $11,779 and $17,016, respectively, of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the 2005 Stock Plan and 2013 Plan. This cost is expected to be recognized over a period of approximately 2.416 and 3.173 years, respectively. The options outstanding as of December 31, 2015 have been separated into ranges of exercise price as follows: Range of Options Weighted Weighted Options Weighted Weighted $0.901 - 1.576 978,178 2.923 $ 1.224 978,178 2.923 $ 1.224 $6.230 - 8.800 145,693 5.920 $ 6.786 137,391 5.895 $ 6.785 $12.470 378,149 7.177 $ 12.470 261,065 7.159 $ 12.470 $19.510 - 21.660 640,743 8.609 $ 21.219 211,571 8.477 $ 21.237 $22.010 - 24.230 309,222 8.298 $ 22.293 127,326 8.280 $ 22.365 $29.880 154,200 9.148 $ 29.880 — 0.000 $ 0.000 $39.86 176,375 8.227 $ 39.860 78,718 8.227 $ 39.860 2,782,560 6.246 $ 14.026 1,794,249 5.035 $ 8.841 The options outstanding as of December 31, 2014 have been separated into ranges of exercise price as follows: Range of exercise price Options outstanding as of December 31, 2014 Weighted average remaining contractual life (years) Weighted average exercise price Options exercisable as of December 31, 2014 Weighted average remaining contractual life (years) Weighted average exercise price of options exercisable $0.070 - 0.901 594,591 2.504 $ 0.728 594,591 2.504 $ 0.728 $1.039 - 1.576 1,651,595 4.255 $ 1.261 1,651,595 4.255 $ 1.261 $6.230 - 8.800 174,222 6.886 $ 6.724 135,318 6.815 $ 6.739 $12.470 413,680 8.175 $ 12.470 184,504 8.152 $ 12.470 $21.00 - 24.23 1,039,073 9.476 $ 21.611 54,446 8.812 $ 21.764 $39.86 207,450 9.227 $ 39.860 — 0.000 $ 0.000 4,080,611 6.092 $ 9.697 2,620,454 4.359 $ 2.638 d. Options issued to consultants: The Company’s outstanding options granted to consultants for pre-sales and marketing services as of December 31, 2015 were as follows: Issuance date Options for shares of common stock Exercise price per share Options exercisable Exercisable through (number) (number) February 2013 3,000 $ 12.470 2,125 February 2023 August 2013 5,000 $ 21.140 2,917 August 2023 October 2013 823 $ 24.230 479 October 2023 March 2014 14,438 $ 39.860 6,422 March 2024 May 2014 8,700 $ 22.010 3,444 May 2024 August 2014 219 $ 21.000 354 August 2024 November 2014 12,000 $ 21.660 3,250 November 2024 May 2015 5,250 $ 19.510 — May 2025 49,430 18,991 The Company’s outstanding options granted to consultants for sales and pre-marketing services as of December 31, 2014 were as follows: Issuance date Options for Exercise price Options Exercisable (number) (number) December 2006 15,000 $ 0.901 15,000 December 2016 February 2013 4,000 $ 12.470 1,832 February 2023 August 2013 5,000 $ 21.140 1,665 August 2023 October 2013 1,250 $ 24.230 363 October 2023 March 2014 16,450 $ 39.860 - March 2024 May 2014 8,700 $ 22.010 - May 2024 August 2014 36,250 $ 21.000 - August 2024 November 2014 12,000 $ 21.660 - November 2024 98,650 18,860 e. Restricted stock units: The following provides a summary of the restricted stock unit activity for the Company for the year ended December 31, 2015: Number of Weighted- Outstanding as of January 1, 2015 27,470 $ 21.00 Granted 685,065 $ 23.30 Vested (36,789 ) $ 19.90 Forfeited (32,240 ) $ 23.56 Unvested as of December 31, 2015 643,506 $ 23.38 The following provides a summary of the restricted stock unit activity for the Company for the year ended December 31, 2014: Number of Weighted- Outstanding as of January 1, 2014 - $ - Granted 31,905 $ 21.00 Vested (4,435 ) $ 21.00 Forfeited - $ - Unvested as of December 31, 2014 27,470 $ 21.00 f. 2015 Employee Stock Purchase Plan On May 5, 2015, the Company’s stockholders approved the Varonis Systems, Inc. 2015 Employee Stock Purchase Plan (the “ESPP”), which the Company’s board of directors had adopted on March 19, 2015. The ESPP became effective as of June 30, 2015. The ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount through payroll deductions of up to 15% of their eligible compensation, at not less than 85% of the fair market value of the Company’s common stock on the first day or last trading day in the offering period, subject to any plan limitations. The Company initially reserved 500,000 shares of common stock for issuance under the ESPP. The number of shares available for issuance under the ESPP will be increased on January 1, 2016, and will increase each January thereafter, by an amount equal to the lesser of (i) one percent (1%) of the number of shares of common stock issued and outstanding on each December 31 immediately prior to the date of increase, except that the amount of each such increase will be limited to the number of shares of common stock necessary to bring the total number of shares of common stock available for issuance under the ESPP to two percent (2%) of the number of shares of common stock issued and outstanding on each such December 31, or (ii) 400,000 shares of common stock. On January 1, 2016, the share reserve under the ESPP was automatically increased by 21,383 shares. The ESPP will continue in effect until the earlier of (i) the date when no shares of common stock are available for issuance thereunder or (ii) June 30, 2025; unless terminated prior thereto by the Company’s board of directors or compensation committee, each of which has the right to terminate the ESPP at any time. g. Stock-based compensation expense for employees and consultants: The Company recognized non-cash stock-based compensation expense in the consolidated statements of operations as follows (in thousands): Year ended 2015 2014 2013 Cost of revenues $ 419 $ 192 $ 39 Research and development 1,954 1,198 551 Sales and marketing 3,041 2,478 841 General and administrative 2,380 796 357 Total $ 7,794 $ 4,664 $ 1,788

Note 9 - Income Taxes

Note 9 - Income Taxes	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Income Tax Disclosure [Text Block]	NOTE 9:- INCOME TAXES a. The Company: The Company is taxed in accordance with U.S. tax laws. As of December 31, 2015, the Company had net operating loss carry-forward for federal, state and foreign tax purposes of approximately $42,629, $30,052 and $1,563, respectively. If not utilized, these carryforwards will expire starting in 2027, 2019 and indefinitely for federal, state and foreign tax purposes, respectively. Included in the net operating loss carryforwards are $20,520 and $14,535 of federal and state net operating loss carryforwards, respectively, associated with a windfall tax benefit that will be recorded as additional paid in capital when realized. In addition, as of December 31, 2015, the Company had federal research credit, retention credit and foreign tax credit carryforwards of approximately $439, $24 and $158, respectively. The Company also has credits in Israel totaling $224. These credits have no expiration date. If not utilized, the federal tax carryforward will expire between 2032, 2016 and 2024. Utilization of U.S. net operating losses and credits may be subject to substantial annual limitations due to the “change in ownership” provisions of the Internal Revenue Code of 1986, as amended, and similar state provisions. The annual limitation may result in the expiration of net operating losses before utilization and, in the event we have a change of ownership, utilization of the carryforwards could be restricted. b. Loss before taxes on income is comprised as follows: Year ended 2015 2014 2013 Domestic $ (20,098 ) $ (15,606 ) $ (4,501 ) Foreign (499 ) (3,416 ) (2,618 ) $ (20,597 ) $ (19,022 ) $ (7,119 ) c. Taxes on income (loss) are comprised as follows: Year ended 2015 2014 2013 Domestic: Federal $ - $ - $ - State 85 16 5 Foreign 601 360 351 $ 686 $ 376 $ 356 d. Deferred income taxes: Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company’s deferred tax assets are derived from its U.S. net operating loss carry forwards and other temporary differences. In assessing the realization of deferred tax assets, the Company considers whether it is more likely than not that all or some portion of the deferred tax assets will not be realized. Based on the Company’s history of losses in the US and Israel, the Company established a valuation allowance on its US and Israeli deferred tax assets. December 31, 2015 2014 Carry forward losses and credits $ 9,220 $ 7,947 Deferred revenues 12,223 9,146 Accrued payroll, commissions, vacation 1,247 610 Allowance for doubtful accounts 88 64 Accrued severance pay 328 443 Other 2,393 731 Net deferred tax assets before valuation allowance 25,499 18,941 Valuation allowance (25,499 ) (18,941 ) Net deferred tax assets $ - $ - e. Reconciliation of the theoretical tax expenses: A reconciliation between the theoretical tax expense, assuming all income is taxed at the statutory tax rate applicable to income of the Company, and the actual tax expense (benefit) as reported in the consolidated statements of operations is as follows: Year ended December 31, 2015 2014 2013 Loss before taxes, as reported in the consolidated statements of operations $ (20,597 ) $ (19,022 ) $ (7,119 ) Statutory tax rate 34 % 34 % 34 % Theoretical tax benefits on the above amount at the US statutory tax rate $ (7,003 ) $ (6,468 ) $ (2,420 ) Income tax at rate other than the U.S. statutory tax rate 333 993 720 Tax advances and non-deductible expenses including equity based compensation expenses 1,061 1,296 715 Operating losses and other temporary differences for which valuation allowance was provided 6,558 4,596 803 State tax (477 ) (409 ) (184 ) Impact of rate change (82 ) 49 537 Tax reserve for uncertain tax positions 320 308 119 Other individually immaterial income tax items (24 ) 11 66 Actual tax expense $ 686 $ 376 $ 356 f. A reconciliation of the beginning and ending amounts of unrecognized tax benefits in the years ended December 31, 2015 and 2014 are as follows: Gross unrecognized tax benefits as of January 1, 2014 $ 269 Increase/decrease in tax position for prior years 4 Increase in tax position for current year 304 Gross unrecognized tax benefits as of December 31, 2014 577 Increase/decrease in tax position for current year 474 Increase/decrease in tax position for prior years (14 ) Decrease for lapse of statute of limitations (140 ) Gross unrecognized tax benefits as of December 31, 2015 $ 897 There was $897 of unrecognized income tax benefits that, if recognized, approximately $800 would impact the effective tax rate in the period in which each of the benefits is recognized. The Company includes interest and penalties related to unrecognized tax benefits within the provision for income taxes on the consolidated statements of operations. The total amount of penalties and interest is approximately $32 as of December 31, 2015. g. Foreign taxation: 1. Israeli tax benefits under the Law for the Encouragement of Capital Investments, 1959 (the “Investment Law”): Conditions for entitlement to the benefits: The benefits available to a Beneficiary Enterprise relate only to taxable income attributable to the specific investment program and are conditioned upon terms stipulated in the Investment Law and the related regulations and the criteria set forth in the applicable certificate of approval (for an Beneficiary Enterprise). If VSL does not fulfill these conditions, in whole or in part, the benefits can be cancelled, and VSL may be required to refund the benefits, in an amount linked to the Israeli consumer price index plus interest. The Office of the Chief Scientist at Israel’s Ministry of Industry, Trade and Labor approved the Israeli subsidiary as an R&D-incentive enterprise for a foreign resident company in accordance with the Encouragement of Capital Investments (Consolidated Version) Law. If cash dividends are distributed out of tax exempt profits in a manner other than upon complete liquidation, VSL will then become liable for tax at the rate of 10%-25% (depending on the level of foreign investments in VSL) in respect of the amount distributed. 2. Undistributed earnings of foreign subsidiaries: As of December 31, 2015, approximately $2,490 of undistributed earnings from non-U.S. operations held by the Company’s foreign subsidiaries and the Beneficiary Enterprise of VSL are designated as indefinitely reinvested outside the U.S. Accordingly, no additional U.S. income taxes or additional foreign withholding taxes have been provided thereon. Determination of the amount of unrecognized deferred tax liability related to these earnings is not practicable. h. Tax assessments: We have not been audited by the Internal Revenue Service but are under current audit in various states for tax years 2009 through 2012. As of December 31, 2015, our federal returns for the years ended 2010 through the current period and most state returns for the years ended 2009 through the current period are still open to examination. In addition, all of the net operating losses and research and development credit carryforwards that may be used in future years are still subject to adjustment. The Company has final tax assessments for VSL in Israel through 2012, VSUK in UK through 2012 and VSF in France through 2012. VSG in Germany and VSC in Canada do not have final tax assessments since their respective inceptions.

Note 10 - Financial Expenses, N

Note 10 - Financial Expenses, Net	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Other Nonoperating Income and Expense [Text Block]	NOTE 10:- FINANCIAL EXPENSES, NET Year ended 2015 2014 2013 Financial income: Interest on bank deposits $ 330 $ 188 $ 36 Foreign currency transactions gains, net - - 547 330 188 583 Financial expenses: Deferred charges - 187 200 Revaluation of warrants - - 1,508 Bank charges 95 109 149 Foreign currency transactions loss, net 1,711 1,591 - Other 47 15 - (1,853 ) (1,902 ) (1,857 ) $ (1,523 ) $ (1,714 ) $ (1,274 )

Note 11 - Geographic Informatio

Note 11 - Geographic Information and Major Customer and Product Data	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	NOTE 11:- GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA Summary information about geographic areas: ASC 280, “Segment Reporting,” establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company manages its business on the basis of one reportable segment, and derives revenues from licensing of software, sale of professional services, maintenance and technical support (see Note 1 for a brief description of the Company’s business). The following is a summary of revenues within geographic areas: Year ended 2015 2014 2013 Revenues based on customer’s location: United States $ 73,343 $ 56,910 $ 42,165 EMEA (*) 44,994 35,809 25,986 Rest of the World 8,873 8,629 6,465 Total revenues $ 127,210 $ 101,348 $ 74,616 (*) Sales to customers in France accounted for $13,570 and $10,419 for the years ended December 31, 2015 and 2014. During the year ended December 31, 2013, sales in France did not exceed 10% of the Company’s revenues. During the years ended December 31, 2015, 2014 and 2013, there were no sales to a single customer exceeding 10% of the Company’s revenues. December 31, 2015 2014 Long-lived assets by geographic region: United States $ 6,419 $ 2,146 Israel 1,607 1,648 Other 239 195 $ 8,265 $ 3,989

Significant Accounting Policies

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Use of Estimates, Policy [Policy Text Block]	a. Use of Estimates: The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates, judgments and assumptions. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, the Company’s management evaluates estimates, including those related to accounts receivable and sales allowances, fair values of stock-based awards, deferred taxes and income tax uncertainties, and contingent liabilities. Such estimates are based on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.
Foreign Currency Transactions and Translations Policy [Policy Text Block]	b. Financial Statements in U.S. Dollars: Most of the revenues and costs of VSI are denominated in United States dollars (“dollars”). Some of the subsidiaries’ revenues and costs are primarily incurred in Euros, the Pound Sterling, Canadian dollars and New Israeli Shekels (“NIS”); however, the Company’s management believes that the dollar is the primary currency of the economic environment in which VSI and each of its subsidiaries operate. Thus, the dollar is the Company’s functional and reporting currency. Accordingly, transactions denominated in currencies other than the functional currency are re-measured to the functional currency in accordance with ASC No. 830, “Foreign Currency Matters” at the exchange rate at the date of the transaction or the average exchange rate in the quarter. At the end of each reporting period, financial assets and liabilities are re-measured to the functional currency using exchange rates in effect at the balance sheet date. Non-financial assets and liabilities are re-measured at historical exchange rates. Gains and losses related to re-measurement are recorded as financial income (expense) in the consolidated statements of operations as appropriate.
Consolidation, Policy [Policy Text Block]	c. Principles of Consolidation: The consolidated financial statements include the accounts of VSI and its wholly-owned subsidiaries, VSL, VSUK, VSG, VSF and VSC. All intercompany transactions and balances have been eliminated upon consolidation.
Cash and Cash Equivalents, Policy [Policy Text Block]	d. Cash Equivalents: Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less.
Short Term Deposits, Policy, [Policy Text Block]	e. Short-Term Deposits: A short-term bank deposit is a deposit with a maturity of more than three months but less than one year. Deposits in U.S. dollars bear interest at rates ranging from 0.30%-1.00% and 0.30%-0.70%, per annum, as of December 31, 2015 and 2014, respectively. The Company had no short-term deposits in NIS as of December 31, 2015. Deposits in NIS bore interest at rates ranging from 0.35%-0.39%, per annum, as of December 31, 2014. Short-term deposits are presented at cost which approximates market value due to their short maturities.
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block]	f. Restricted Cash: Restricted cash is primarily invested in certificates of deposit and is used mostly as security for the Company’s lease commitments. The Company had no short-term restricted cash as of December 31, 2015 and 2014, respectively. The Company had long-term restricted cash in the amount of $468 and $312 as of December 31, 2015 and 2014, respectively.
Property, Plant and Equipment, Policy [Policy Text Block]	g. Property and Equipment: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computer equipment 33 Office furniture and equipment 7 - 15 Leasehold improvements Over the shorter of the lease term or estimated useful life
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]	h. Impairment of Long-Lived Assets: The Company’s long-lived assets are reviewed for impairment in accordance with ASC No. 360 “Property, Plant and Equipment” whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. Recoverability of assets (or asset group) to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. During the years ended December 31, 2015, 2014 and 2013, no impairment losses have been recorded.
Lease, Policy [Policy Text Block]	i. Long-Term Lease Deposits: Long-term lease deposits include long-term deposits for offices.
Revenue Recognition, Policy [Policy Text Block]	j. Revenue Recognition: The Company generates revenues in the form of software license fees and related maintenance and services fees. Maintenance and services primarily consist of fees for maintenance services (including support and unspecified upgrades and enhancements when and if they are available) and professional services (including training) that are not essential to functionality of the Company’s software. The Company sells its products worldwide directly to a network of distributors and VARs. The Company accounts for the sale of perpetual software in accordance with ASC No. 985-605, “Software Revenue Recognition”. As required by ASC 985-605, the Company determines the value of the software component of its multiple-element arrangements using the residual method when vendor specific objective evidence (VSOE) of fair value exists for the undelivered elements of maintenance, and professional services agreements. VSOE is based on the price charged when an element is sold separately or renewed. Under the residual method, the fair value of the undelivered elements is deferred, and the remaining portion of the arrangement fee is allocated to the delivered elements and is recognized as revenue, when all ASC 985-605 criteria for revenue recognition are met. The Company determines the fair value based on the stand alone sales price charged for maintenance, and professional services. The Company has defined classes of transactions, based on the value of licensed software products purchased from the Company. The Company prices renewals for each class of transaction as a fixed percentage of the total gross value of licensed software products the customer purchased. Software license revenues are recognized when persuasive evidence of an arrangement exists, the software license has been delivered, there are no uncertainties surrounding product acceptance, there are no significant future performance obligations, the license fees are fixed or determinable and collection of the license fee is considered probable. Fees for arrangements with payment terms extending beyond customary payment terms are considered not to be fixed or determinable, in which case revenue is deferred and recognized when payments become due from the customer provided that all other revenue recognition criteria have been met. The Company recognizes revenues from the sale of term license arrangements, ratably, on a straight-line basis, over the term of the underlying maintenance contract, and is typically up to one year. The Company recognizes revenues from maintenance ratably over the term of the underlying maintenance contract term. The term of the maintenance contract is usually one year. Revenues from professional services consist mostly of time and material services and, accordingly, are recognized as the services are performed or when the service term has expired. Professional services bundled with licensed software and other software related elements are not essential to the functionality of the other elements of the arrangement. Revenues allocable to the services are recognized as the services are performed, using VSOE for such services. Deferred revenues represent unrecognized fees billed or collected for maintenance and professional services. The Company does not grant a right of return to its customers, except for one of its resellers. During the years ended December 31, 2015, 2014 and 2013, there were no returns from this reseller.
Cost of Sales, Policy [Policy Text Block]	k. Cost of Revenues: Cost of revenues consists of the cost of maintenance and services, resulting from costs associated with support, and professional services.
Compensation Related Costs, Policy [Policy Text Block]	l. Accounting for Stock-Based Compensation: The Company accounts for stock-based compensation in accordance with ASC No. 718, “Compensation-Stock Compensation”. ASC No. 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an Option-Pricing Model (“OPM”). The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company’s consolidated statements of operations. The Company recognizes compensation expenses for the value of its awards granted based on the straight-line method over the requisite service period of each of the awards, net of estimated forfeitures. ASC No. 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Estimated forfeitures are based on actual historical pre-vesting forfeitures. The Company applies ASC 718 and ASC 505-50, “Equity-Based Payments to Non-Employees” with respect to options issued to non-employees consultants. Accordingly, the Company uses option valuation models to measure the fair value of the options at the measurement date as defined in ASC 505-50. The Company selected the Black-Scholes-Merton option pricing model as the most appropriate fair value method for its stock options awards, whereas the fair value of restricted stock units is based on the market value of the underlying shares at the date of grant. The fair value of options granted to employees and non-employee directors is estimated at the date of grant using the following weighted average assumptions: Year ended December 31, 2015 2014 2013 Dividend yield 0% 0% 0% Expected volatility 65% 60 - 64% 60% - 75% Risk-free interest 1.94 - 2.00% 1.97 - 2.30% 1.13 - 2.29% Expected life 6.25 6.25 6.25 The Company used its historical volatility in accordance with ASC 718. The computation of volatility uses historical volatility derived from the Company’s exchange traded shares. Expected term of options granted is calculated based on the simplified method, in accordance with SAB 110, (i.e., as the average between the vesting period and the contractual term of the options), as adequate historical experience is not available to provide a reasonable estimate. The risk free interest rate assumption is the implied yield currently available on United States treasury zero-coupon issues with a remaining term equal to the expected life of the Company’s options. The dividend yield assumption is based on the Company’s historical experience and expectation of no future dividend payouts and may be subject to substantial change in the future. The Company has historically not paid cash dividends and has no foreseeable plans to pay cash dividends in the future. The non-cash compensation expenses related to employees and consultants for the years ended December 31, 2015, 2014 and 2013 amounted to $7,794, $4,664 and $1,788, respectively.
Research, Development, and Computer Software, Policy [Policy Text Block]	m. Research and Development Costs: Research and development costs are charged to the statement of operations as incurred. ASC No. 985-20, “Software-Costs of Software to Be Sold, Leased, or Marketed,” requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. Based on the Company’s product development process, technological feasibility is established upon the completion of a working model. The Company does not incur material costs between the completion of the working model and the point at which the product is ready for general release. Therefore, research and development costs are charged to the statement of operations as incurred.
Income Tax, Policy [Policy Text Block]	n. Income Taxes: The Company accounts for income taxes in accordance with Accounting Standards Codification No. 740, using the liability method whereby deferred tax assets and liability account balances are determined based on the differences between financial reporting and the tax basis for assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to the amounts that are more likely-than-not to be realized. ASC 740 contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company accrues interest and penalties related to unrecognized tax benefits in its taxes on income.
Derivatives, Policy [Policy Text Block]	o. Derivative Instruments: The Company’s primary objective for holding derivative instruments is to reduce its exposure to foreign currency rate changes. The Company reduces its exposure by entering into forward foreign exchange contracts with respect to operating expenses that are forecast to be incurred in currencies other than the U.S. dollar. A majority of the Company’s revenues and a majority of its operating expenditures are transacted in U.S. dollars. However, certain operating expenditures are incurred in or exposed to other currencies, primarily the New Israeli Shekel (“NIS”). The Company has established forecasted transaction currency risk management programs to protect against fluctuations in fair value and the volatility of future cash flows caused by changes in exchange rates. The Company’s currency risk management program includes forward foreign exchange contracts designated as cash flow hedges. These forward foreign exchange contracts generally mature within 12 months. The Company does not enter into derivative financial instruments for trading purposes. Derivative instruments measured at fair value and their classification on the consolidated balance sheets are presented in the following table (in thousands): Liabilities as of December 31, 2015 Liabilities as of Notional Amount Fair Value Notional Fair Foreign Exchange Forward Contract Derivatives in cash flow hedging relationships—included in accrued expenses and other liabilities $ 36,070 $ (331 ) $ 30,662 $ (326 ) For the year ended December 31, 2015 and 2014, the consolidated statements of operations reflect a loss of approximately $307 and $864, respectively, related to the effective portion of foreign currency forward contracts. There was no ineffective portion for the year ended December 31, 2015 and 2014.
Concentration Risk, Credit Risk, Policy [Policy Text Block]	p. Concentrations of Credit Risks: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, short-term deposits and trade receivables. The Company’s cash, cash equivalents and short-term deposits are invested in major banks mainly in the United States but also in the United Kingdom, France, Germany, Israel and Canada. Such deposits in the United States may be in excess of insured limits and are not insured in other jurisdictions. The Company maintains cash and cash equivalents with diverse financial institutions and monitors the amount of credit exposure to each financial institution. The Company’s trade receivables are geographically diversified and derived primarily from sales to a network of distributors and VARs mainly in the United States and Europe. Concentration of credit risk with respect to trade receivables is limited by credit limits, ongoing credit evaluation and account monitoring procedures. The Company performs ongoing credit evaluations of its channel partners and establishes an allowance for doubtful accounts based upon a specific review of all significant outstanding invoices. The Company writes off receivables when they are deemed uncollectible and having exhausted all collection efforts.
Retirement And Severance Pay, Policy [Policy Text Block]	q. Retirement and Severance Pay: VSI makes available to its employees a retirement plan (the “U.S. Plan”) that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Participants in the U.S. Plan may elect to defer a portion of their pre-tax earnings, up to the Internal Revenue Service annual contribution limit. VSI matches 100% of each participant’s contributions up to a maximum of 3% of the participant’s base pay and 50% of each participant’s contributions on contributions between 3% and 5% of the participant’s base pay. Each participant may contribute up to 80% of base remuneration up to the Internal Revenue Service’s annual contribution limit. Contributions to the U.S. Plan are recorded during the year contributed as an expense in the consolidated statements of income. Pursuant to Israel’s Severance Pay Law, Israeli employees are entitled to severance pay equal to one month’s salary for each year of employment, or a portion thereof. The employees of the Israeli subsidiary elected to be included under section 14 of the Severance Pay Law, 1963 (“section 14”). According to this section, these employees are entitled only to monthly deposits, at a rate of 8.33% of their monthly salary, made in their name with insurance companies. Payments in accordance with section 14 release the Company from any future severance payments (under the above Israeli Severance Pay Law) in respect of those employees; therefore, related assets and liabilities are not presented in the balance sheet. The Company’s liability for severance pay for the employees of its French subsidiary is calculated pursuant to French law, according to which French employees are entitled to an indemnity (a statutory redundancy). The law provides for the payment of severance payment to any employee working for the French subsidiary for at least a year. Total Company expenses related to retirement and severance pay amounted to $X,XXX, $2,651 and $1,739 for the years ended December 31, 2015, 2014 and 2013, respectively.
Fair Value of Financial Instruments, Policy [Policy Text Block]	r. Fair Value of Financial Instruments: Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: • Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2: Observable inputs that reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3: Unobservable inputs reflecting our own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The carrying amounts of cash and cash equivalents, trade receivables, short-term deposits and trade payables approximate their fair value due to the short-term maturity of such instruments.
Earnings Per Share, Policy [Policy Text Block]	s. Basic and Diluted Net Loss Per Share: Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including stock options, convertible preferred stock warrants stock, to the extent dilutive. Basic and diluted net loss per share was the same for each period presented as the inclusion of all potential shares of common stock outstanding would have been anti-dilutive.
Commitments and Contingencies, Policy [Policy Text Block]	t. Contingent Liabilities: The Company accounts for its contingent liabilities in accordance with ASC No. 450 “Contingencies”. A provision is recorded when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. With respect to legal matters, provisions are reviewed and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. As of December 31, 2015 and 2014, the Company was not a party to any ligation that could have a material adverse effect on the Company’s business, financial position, results of operations or cash flows.
New Accounting Pronouncements, Policy [Policy Text Block]	u. Recently Issued Accounting Pronouncements: In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes”, which simplifies the presentation of deferred income taxes. This ASU requires that deferred tax assets and liabilities be classified as non-current in a statement of financial position. The Company early adopted ASU 2015-17 effective December 31, 2015 on a prospective basis. No prior periods were retrospectively adjusted. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”, an updated standard on revenue recognition. ASU 2014-09 provides enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies reporting using IFRS and US GAAP. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration (that is, payment) to which the company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and improve guidance for multiple-element arrangements. ASU 2014-09 was initially scheduled to be effective for annual and interim reporting periods beginning after December 15, 2016 and may be adopted either on a full retrospective or modified retrospective approach. However, on July 9, 2015, the FASB approved a one year deferral of the effective date of ASU 2014-09. The revised effective date is for annual reporting periods beginning after December 15, 2017 and interim periods thereafter, with an early adoption permitted as of the original effective date. The Company is still evaluating the impact of implementation of this standard on its consolidated financial statements.

Note 2 - Significant Accounti21

Note 2 - Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Property, Plant and Equipment Estimated Useful Life [Table Text Block]	% Computer equipment 33 Office furniture and equipment 7 - 15 Leasehold improvements Over the shorter of the lease term or estimated useful life
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	Year ended December 31, 2015 2014 2013 Dividend yield 0% 0% 0% Expected volatility 65% 60 - 64% 60% - 75% Risk-free interest 1.94 - 2.00% 1.97 - 2.30% 1.13 - 2.29% Expected life 6.25 6.25 6.25
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]	Liabilities as of December 31, 2015 Liabilities as of Notional Amount Fair Value Notional Fair Foreign Exchange Forward Contract Derivatives in cash flow hedging relationships—included in accrued expenses and other liabilities $ 36,070 $ (331 ) $ 30,662 $ (326 )

Note 3 - Prepaid Expenses and22

Note 3 - Prepaid Expenses and Other Current Assets (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block]	December 31, 2015 2014 Prepaid expenses $ 1,464 $ 852 Government institutions & other receivables 507 134 Deferred charges 474 1,811 Short-term deposits 136 128 Other 41 37 $ 2,622 $ 2,962

Note 4 - Property and Equipme23

Note 4 - Property and Equipment, Net (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Property, Plant and Equipment [Table Text Block]	December 31, 2015 2014 Cost: Computer equipment $ 6,342 $ 5,306 Office furniture and equipment 1,558 841 Leasehold improvements 5,884 1,774 13,784 7,921 Accumulated depreciation 5,519 3,932 Property and equipment, net $ 8,265 $ 3,989

Note 5 - Accrued Expenses and24

Note 5 - Accrued Expenses and Other Short Term Liabilities (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]	December 31, 2015 2014 Employees $ 10,133 $ 7,890 Accrued expenses 5,781 4,022 Government authorities and other 6,270 4,477 Foreign exchange forward contract derivatives 331 326 Other short term liabilities 514 39 $ 23,029 $ 16,754

Note 6 - Commitments and Cont25

Note 6 - Commitments and Contingent Liabilities (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	Payments Due By 2016 $ 3,929 2017 3,768 2018 3,693 2019 3,738 2020 2,764 Thereafter 14,655 $ 32,547

Note 7 - Fair Value Measureme26

Note 7 - Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	As of December 31, 2015 As of December 31, 2014 Level I Level II Level III Fair Level I Level II Level III Fair Financial liabilities: Forward foreign exchange contracts — (331 ) — (331 ) — (326 ) — (326 ) Total financial liabilities $ — $ (331 ) $ — $ (331 ) $ — $ (326 ) $ — $ (326 )

Note 8 - Stockholders' Equity27

Note 8 - Stockholders' Equity (Deficiency) (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Stock by Class [Table Text Block]	Authorized Issued and outstanding Number of shares December 31, December 31, 2015 2014 2015 2014 Stock of $0.001 par value: Common stock 200,000,000 200,000,000 26,069,154 24,685,604
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Year ended Number Weighted Aggregate Weighted Options outstanding at the beginning of the year 4,080,611 $ 9.697 $ 95,855 6.092 Granted 191,200 $ 28.253 Exercised (1,334,351 ) $ 1.521 Forfeited (154,900 ) $ 25.265 Options outstanding at the end of the period 2,782,560 $ 14.026 $ 21,337 6.246 Vested and expected to vest 2,677,503 $ 13.623 $ 21,284 6.156 Options exercisable at the end of the period 1,794,249 $ 8.841 $ 20,496 5.035 Year ended Number Weighted Aggregate Weighted Options outstanding at the beginning of the year 3,233,235 $ 4.033 $ 65,723 5.700 Granted 1,111,940 $ 25.077 Exercised (213,174 ) $ 1.663 Forfeited (51,390 ) $ 19.449 Options outstanding at the end of the period 4,080,611 $ 9.697 $ 95,855 6.092 Vested and expected to vest 3,965,741 $ 9.318 $ 94,581 6.000 Options exercisable at the end of the period 2,620,454 $ 2.638 $ 79,117 4.359 Year ended Number Weighted Aggregate Weighted Options outstanding at the beginning of the year 2,809,923 $ 1.782 $ 43,801 5.952 Granted 541,150 $ 15.267 Exercised (105,021 ) $ 1.239 Forfeited (12,817 ) $ 13.998 Options outstanding at the end of the period 3,233,235 $ 4.033 $ 65,723 5.700 Vested and expected to vest 3,203,465 $ 3.941 $ 65,412 5.668 Options exercisable at the end of the period 2,550,694 $ 1.473 $ 58,377 4.799
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]	Range of Options Weighted Weighted Options Weighted Weighted $0.901 - 1.576 978,178 2.923 $ 1.224 978,178 2.923 $ 1.224 $6.230 - 8.800 145,693 5.920 $ 6.786 137,391 5.895 $ 6.785 $12.470 378,149 7.177 $ 12.470 261,065 7.159 $ 12.470 $19.510 - 21.660 640,743 8.609 $ 21.219 211,571 8.477 $ 21.237 $22.010 - 24.230 309,222 8.298 $ 22.293 127,326 8.280 $ 22.365 $29.880 154,200 9.148 $ 29.880 — 0.000 $ 0.000 $39.86 176,375 8.227 $ 39.860 78,718 8.227 $ 39.860 2,782,560 6.246 $ 14.026 1,794,249 5.035 $ 8.841 Range of exercise price Options outstanding as of December 31, 2014 Weighted average remaining contractual life (years) Weighted average exercise price Options exercisable as of December 31, 2014 Weighted average remaining contractual life (years) Weighted average exercise price of options exercisable $0.070 - 0.901 594,591 2.504 $ 0.728 594,591 2.504 $ 0.728 $1.039 - 1.576 1,651,595 4.255 $ 1.261 1,651,595 4.255 $ 1.261 $6.230 - 8.800 174,222 6.886 $ 6.724 135,318 6.815 $ 6.739 $12.470 413,680 8.175 $ 12.470 184,504 8.152 $ 12.470 $21.00 - 24.23 1,039,073 9.476 $ 21.611 54,446 8.812 $ 21.764 $39.86 207,450 9.227 $ 39.860 — 0.000 $ 0.000 4,080,611 6.092 $ 9.697 2,620,454 4.359 $ 2.638
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]	Issuance date Options for shares of common stock Exercise price per share Options exercisable Exercisable through (number) (number) February 2013 3,000 $ 12.470 2,125 February 2023 August 2013 5,000 $ 21.140 2,917 August 2023 October 2013 823 $ 24.230 479 October 2023 March 2014 14,438 $ 39.860 6,422 March 2024 May 2014 8,700 $ 22.010 3,444 May 2024 August 2014 219 $ 21.000 354 August 2024 November 2014 12,000 $ 21.660 3,250 November 2024 May 2015 5,250 $ 19.510 — May 2025 49,430 18,991 Issuance date Options for Exercise price Options Exercisable (number) (number) December 2006 15,000 $ 0.901 15,000 December 2016 February 2013 4,000 $ 12.470 1,832 February 2023 August 2013 5,000 $ 21.140 1,665 August 2023 October 2013 1,250 $ 24.230 363 October 2023 March 2014 16,450 $ 39.860 - March 2024 May 2014 8,700 $ 22.010 - May 2024 August 2014 36,250 $ 21.000 - August 2024 November 2014 12,000 $ 21.660 - November 2024 98,650 18,860
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]	Number of Weighted- Outstanding as of January 1, 2015 27,470 $ 21.00 Granted 685,065 $ 23.30 Vested (36,789 ) $ 19.90 Forfeited (32,240 ) $ 23.56 Unvested as of December 31, 2015 643,506 $ 23.38 Number of Weighted- Outstanding as of January 1, 2014 - $ - Granted 31,905 $ 21.00 Vested (4,435 ) $ 21.00 Forfeited - $ - Unvested as of December 31, 2014 27,470 $ 21.00
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]	Year ended 2015 2014 2013 Cost of revenues $ 419 $ 192 $ 39 Research and development 1,954 1,198 551 Sales and marketing 3,041 2,478 841 General and administrative 2,380 796 357 Total $ 7,794 $ 4,664 $ 1,788

Note 9 - Income Taxes (Tables)

Note 9 - Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]	Year ended 2015 2014 2013 Domestic $ (20,098 ) $ (15,606 ) $ (4,501 ) Foreign (499 ) (3,416 ) (2,618 ) $ (20,597 ) $ (19,022 ) $ (7,119 )
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	Year ended 2015 2014 2013 Domestic: Federal $ - $ - $ - State 85 16 5 Foreign 601 360 351 $ 686 $ 376 $ 356
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	December 31, 2015 2014 Carry forward losses and credits $ 9,220 $ 7,947 Deferred revenues 12,223 9,146 Accrued payroll, commissions, vacation 1,247 610 Allowance for doubtful accounts 88 64 Accrued severance pay 328 443 Other 2,393 731 Net deferred tax assets before valuation allowance 25,499 18,941 Valuation allowance (25,499 ) (18,941 ) Net deferred tax assets $ - $ -
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	Year ended December 31, 2015 2014 2013 Loss before taxes, as reported in the consolidated statements of operations $ (20,597 ) $ (19,022 ) $ (7,119 ) Statutory tax rate 34 % 34 % 34 % Theoretical tax benefits on the above amount at the US statutory tax rate $ (7,003 ) $ (6,468 ) $ (2,420 ) Income tax at rate other than the U.S. statutory tax rate 333 993 720 Tax advances and non-deductible expenses including equity based compensation expenses 1,061 1,296 715 Operating losses and other temporary differences for which valuation allowance was provided 6,558 4,596 803 State tax (477 ) (409 ) (184 ) Impact of rate change (82 ) 49 537 Tax reserve for uncertain tax positions 320 308 119 Other individually immaterial income tax items (24 ) 11 66 Actual tax expense $ 686 $ 376 $ 356
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]	Gross unrecognized tax benefits as of January 1, 2014 $ 269 Increase/decrease in tax position for prior years 4 Increase in tax position for current year 304 Gross unrecognized tax benefits as of December 31, 2014 577 Increase/decrease in tax position for current year 474 Increase/decrease in tax position for prior years (14 ) Decrease for lapse of statute of limitations (140 ) Gross unrecognized tax benefits as of December 31, 2015 $ 897

Note 10 - Financial Expenses,29

Note 10 - Financial Expenses, Net (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule Of Nonoperating Income, by Component [Table Text Block]	Year ended 2015 2014 2013 Financial income: Interest on bank deposits $ 330 $ 188 $ 36 Foreign currency transactions gains, net - - 547 330 188 583 Financial expenses: Deferred charges - 187 200 Revaluation of warrants - - 1,508 Bank charges 95 109 149 Foreign currency transactions loss, net 1,711 1,591 - Other 47 15 - (1,853 ) (1,902 ) (1,857 ) $ (1,523 ) $ (1,714 ) $ (1,274 )

Note 11 - Geographic Informat30

Note 11 - Geographic Information and Major Customer and Product Data (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Revenue from External Customers by Geographic Areas [Table Text Block]	Year ended 2015 2014 2013 Revenues based on customer’s location: United States $ 73,343 $ 56,910 $ 42,165 EMEA (*) 44,994 35,809 25,986 Rest of the World 8,873 8,629 6,465 Total revenues $ 127,210 $ 101,348 $ 74,616
Long-lived Assets by Geographic Areas [Table Text Block]	December 31, 2015 2014 Long-lived assets by geographic region: United States $ 6,419 $ 2,146 Israel 1,607 1,648 Other 239 195 $ 8,265 $ 3,989

Note 1 - General (Details Textu

Note 1 - General (Details Textual) $ in Thousands	Mar. 05, 2014USD ($)shares	Dec. 31, 2015shares	Dec. 31, 2014shares	Mar. 13, 2014shares
IPO [Member]
Common Stock, Shares, Issued	5,300,436
Entity Incorporation, Date of Incorporation		Nov. 24, 2004
Operations Commenced Date		Jan. 1, 2005
Subsidiary or Equity Method Investee, Number		5
Common Stock, Shares, Issued		26,069,154	24,685,604
Common Stock, Shares Issued upon Exercise by Underwriters	500,436
Proceeds from Issuance of Common Stock | $	$ 106,071
Conversion of Convertible Preferred Stock to Common Stock at Initial Public Offering, Shares	15,082,141
Conversion of Preferred Stock Warrants to Common Stock Warrants, Shares	122,572
Class of Warrant or Right, Number of Securities Called by Warrants or Rights				107,217

Note 2 - Significant Accounti32

Note 2 - Significant Accounting Policies (Details Textual) - USD ($)	12 Months Ended			36 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2015
Interest-bearing Deposits [Member]
Short-term Investments	$ 0			$ 0
Minimum [Member] | United States of America, Dollars
Investment Interest Rate	0.70%	0.30%
Minimum [Member] | Israel, New Shekels
Investment Interest Rate		0.35%
Minimum [Member] | U.S. Plan [Member]
Defined Contribution Plan, Contributions, Percentage of Participants Base Pay				3.00%
Minimum [Member]
Short-term Investment, Maturity Period	90 days
Maximum [Member] | United States of America, Dollars
Investment Interest Rate	1.00%	0.70%
Maximum [Member] | Israel, New Shekels
Investment Interest Rate		0.39%
Maximum [Member] | U.S. Plan [Member]
Defined Contribution Plan, Employer Matching Contribution, Percent of Base Pay				3.00%
Defined Contribution Plan, Contributions, Percentage of Participants Base Pay				5.00%
Participant Matching Contribution Percentage of Base Remuneration				80.00%
Maximum [Member]
Short-term Investment, Maturity Period	1 year
Employees and Consultants [Member]
Allocated Share-based Compensation Expense	$ 7,794,000	$ 4,664,000	$ 1,788,000
Foreign Exchange Forward Contract Derivatives [Member]
Derivative, Loss on Derivative	307,000	864,000
U.S. Plan [Member]
Defined Contribution Plan, Employer Matching Contribution, Percent of Match				100.00%
Defined Contribution, Plan Employer Matching Contribution, Percent of Participants Contribution				50.00%
Restricted Cash and Cash Equivalents, Current	0	0		$ 0
Asset Impairment Charges	0	0	0
Short-term Investments	57,103,000	35,102,000		57,103,000
Restricted Cash and Cash Equivalents, Noncurrent	468,000	312,000		$ 468,000
Allocated Share-based Compensation Expense	$ 7,794,000	4,664,000	1,788,000
Minimum Tax Percentage Attained Likely to be Realized upon Ultimate Settlement	50.00%
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent	8.33%
Severance Costs	$ 3,085	$ 2,651,000	$ 1,739,000

Note 2 - Property and Equipment

Note 2 - Property and Equipment, Schedule of Depreciation Annual Rates and Estimated Useful Lives of Assets (Details)	12 Months Ended
	Dec. 31, 2015
Computer Equipment [Member]
Property and equipment, depreciate rate	33.00%
Office Furniture and Equipment [Member] | Minimum [Member]
Property and equipment, depreciate rate	7.00%
Office Furniture and Equipment [Member] | Maximum [Member]
Property and equipment, depreciate rate	15.00%
Leasehold Improvements [Member]
Property and equipment, depreciate rate	Overtheshorterofthe leaseterm or estimated useful life

Note 2 - Schedule of Estimated

Note 2 - Schedule of Estimated Value of Options and Warrants (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Minimum [Member]
Expected volatility		60.00%	60.00%
Risk-free interest	1.94%	1.97%	1.13%
Maximum [Member]
Expected volatility		64.00%	75.00%
Risk-free interest	2.00%	2.30%	2.29%
Dividend yield	0.00%	0.00%	0.00%
Expected volatility	65.00%
Expected life	6 years 91 days	6 years 91 days	6 years 91 days

Note 2 - Derivative Instruments

Note 2 - Derivative Instruments Measured at Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Liabilities, Notional Amount	$ 36,070	$ 30,662
Liabilities, Fair Value	$ (331)	$ (326)

Note 3 - Schedule Of Prepaid Ex

Note 3 - Schedule Of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Prepaid expenses	$ 1,464	$ 852
Government institutions & other receivables	507	134
Deferred charges	474	1,811
Short-term deposits	136	128
Other	41	37
Total	$ 2,622	$ 2,962

Note 4 - Property and Equipme37

Note 4 - Property and Equipment, Net (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Depreciation	$ 1,615	$ 1,285	$ 796

Note 4 - Schedule of Property a

Note 4 - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Computer Equipment [Member]
Property and equipment, gross	$ 6,342	$ 5,306
Office Furniture and Equipment [Member]
Property and equipment, gross	1,558	841
Leasehold Improvements [Member]
Property and equipment, gross	5,884	1,774
Property and equipment, gross	13,784	7,921
Accumulated depreciation	5,519	3,932
Property and equipment, net	$ 8,265	$ 3,989

Note 5 - Schedule of Accrued Ex

Note 5 - Schedule of Accrued Expenses and Other Short Term Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Employees	$ 10,133	$ 7,890
Accrued expenses	5,781	4,022
Government authorities and other	6,270	4,477
Foreign exchange forward contract derivatives	331	326
Other short term liabilities	514	39
Total	$ 23,029	$ 16,754

Note 6 - Commitments and Cont40

Note 6 - Commitments and Contingent Liabilities (Details Textual) - USD ($)	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Promissory Note [Member]
Long-term Line of Credit		$ 0
Line of Credit Facility, Maximum Borrowing Capacity	$ 7,000,000
Debt Instrument, Basis Spread on Variable Rate	0.15%
Line of Credit Facility, Interest Rate at Period End		3.35%
Operating Leases, Rent Expense		$ 4,296,000	$ 2,986,000	$ 1,636,000
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals		2,263,000
Deferred Rent Credit, Current		514,000	39,000
Deferred Rent Credit, Noncurrent		$ 5,366,000	$ 3,698,000

Note 6 - Aggregate Minimum Rent

Note 6 - Aggregate Minimum Rental Commitments under Non-Cancelable Leases (Details) $ in Thousands	Dec. 31, 2015USD ($)
2,016	$ 3,929
2,017	3,768
2,018	3,693
2,019	3,738
2,020	2,764
Thereafter	14,655
Total	$ 32,547

Note 7 - Assets and Liabilities

Note 7 - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Foreign Exchange Forward [Member] | Fair Value, Inputs, Level 1 [Member]
Forward foreign exchange contracts
Foreign Exchange Forward [Member] | Fair Value, Inputs, Level 2 [Member]
Forward foreign exchange contracts	$ (331)	$ (326)
Foreign Exchange Forward [Member] | Fair Value, Inputs, Level 3 [Member]
Forward foreign exchange contracts
Foreign Exchange Forward [Member]
Forward foreign exchange contracts	$ (331)	$ (326)
Fair Value, Inputs, Level 1 [Member]
Total financial liabilities
Fair Value, Inputs, Level 2 [Member]
Total financial liabilities	$ (331)	$ (326)
Fair Value, Inputs, Level 3 [Member]
Total financial liabilities
Total financial liabilities	$ (331)	$ (326)

Note 8 - Stockholders' Equity43

Note 8 - Stockholders' Equity (Deficiency) (Details Textual) $ / shares in Units, $ in Thousands	Jan. 01, 2016shares	Jun. 30, 2015shares	Dec. 31, 2015USD ($)$ / sharesshares	Dec. 31, 2014USD ($)$ / sharesshares	Dec. 31, 2013USD ($)$ / sharesshares
The 2005 Stock Plan [Member] | Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					4 years
The 2005 Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross					0
Common Stock, Capital Shares Reserved for Future Issuance					4,713,319
The 2013 Omnibus Equity Award Plan [Member] | Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period				4 years
The 2013 Omnibus Equity Award Plan [Member]
Common Stock, Capital Shares Reserved for Future Issuance				1,904,633
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Reserved for Grant				4.00%
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum				5.00%
2015 ESPP [Member] | Subsequent Event [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized	21,383
2015 ESPP [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate		15.00%
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent		85.00%
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized		500,000
Percent of Shares Increase, Employee Stock Purchase Plan		1.00%
Common Stock Availability Threshold, Employee Stock Purchase Plan		2.00%
Shares Increase Threshold, Employee Stock Purchase Plan		400,000
Subsequent Event [Member]
Common Stock, Capital Shares Reserved for Future Issuance, Annual Increase, Maximum	1,042,766
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			191,200	1,111,940	541,150
Common Stock, Shares Authorized			200,000,000	200,000,000
Common Stock, Par or Stated Value Per Share | $ / shares			$ 0.001	$ 0.001
Common Stock, Number of Voting Rights			1
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares			$ 28.637	$ 14.087	$ 14.002
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $			$ 27,885	$ 4,800	$ 2,218
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $			$ 11,779	$ 17,016
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			2 years 151 days	3 years 63 days

Note 8 - Composition of Common

Note 8 - Composition of Common Stock (Details) - shares	Dec. 31, 2015	Dec. 31, 2014
Common Stock, Shares Authorized	200,000,000	200,000,000
Common Stock, Shares Authorized (in shares)	26,069,154	24,685,604

Note 8 - Summary of Employees'

Note 8 - Summary of Employees' Stock Options Activities (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Options outstanding at the beginning of the year (in shares)	4,080,611	3,233,235	2,809,923
Options outstanding at the beginning of the year (in dollars per share)	$ 9.697	$ 4.033	$ 1.782
Options outstanding at the beginning of the year	$ 95,855	$ 65,723	$ 43,801
Options outstanding at the beginning of the year	6 years 89 days	6 years 33 days	5 years 255 days	5 years 347 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	191,200	1,111,940	541,150
Granted (in dollars per share)	$ 28.253	$ 25.077	$ 15.267
Exercised (in shares)	(1,334,351)	(213,174)	(105,021)
Exercised (in dollars per share)	$ 1.521	$ 1.663	$ 1.239
Forfeited (in shares)	(154,900)	(51,390)	(12,817)
Forfeited (in dollars per share)	$ 25.265	$ 19.449	$ 13.998
Options outstanding at the end of the year (in shares)	2,782,560	4,080,611	3,233,235	2,809,923
Options outstanding at the end of the year (in dollars per share)	$ 14.026	$ 9.697	$ 4.033	$ 1.782
Options outstanding at the end of the year	$ 21,337	$ 95,855	$ 65,723	$ 43,801
Vested and expected to vest (in shares)	2,677,503	3,965,741	3,203,465
Vested and expected to vest (in dollars per share)	$ 13.623	$ 9.318	$ 3.941
Vested and expected to vest	$ 21,284	$ 94,581	$ 65,412
Vested and expected to vest	6 years 56 days	6 years	5 years 243 days
Options exercisable at the end of the year (in shares)	1,794,249	2,620,454	2,550,694
Options exercisable at the end of the year (in dollars per share)	$ 8.841	$ 2.638	$ 1.473
Options exercisable at the end of the year	$ 20,496	$ 79,117	$ 58,377
Options exercisable at the end of the year	5 years 12 days	4 years 131 days	4 years 291 days

Note 8 - Options Outstanding Se

Note 8 - Options Outstanding Separated into Range of Exercise Price (Details) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Range One [Member]
Lower range (in dollars per share)	$ 0.901	$ 0.07
Upper range (in dollars per share)	$ 1.576	$ 0.901
Outstanding (in shares)	978,178	594,591
Weighted average remaining contractual life, outstanding	2 years 336 days	2 years 183 days
Weighted average exercise price, outstanding (in dollars per share)	$ 1.224	$ 0.728
Exercisable (in shares)	978,178	594,591
Weighted average remaining contractual life, exercisable	2 years 336 days	2 years 183 days
Weighted average exercise price, exercisable (in dollars per share)	$ 1.224	$ 0.728
Range Two [Member]
Lower range (in dollars per share)	6.23	1.039
Upper range (in dollars per share)	$ 8.80	$ 1.576
Outstanding (in shares)	145,693	1,651,595
Weighted average remaining contractual life, outstanding	5 years 335 days	4 years 93 days
Weighted average exercise price, outstanding (in dollars per share)	$ 6.786	$ 1.261
Exercisable (in shares)	137,391	1,651,595
Weighted average remaining contractual life, exercisable	5 years 326 days	4 years 93 days
Weighted average exercise price, exercisable (in dollars per share)	$ 6.785	$ 1.261
Range Three [Member]
Lower range (in dollars per share)		6.23
Upper range (in dollars per share)		$ 8.80
Outstanding (in shares)	378,149	174,222
Weighted average remaining contractual life, outstanding	7 years 64 days	6 years 323 days
Weighted average exercise price, outstanding (in dollars per share)	$ 12.47	$ 6.724
Exercisable (in shares)	261,065	135,318
Weighted average remaining contractual life, exercisable	7 years 58 days	6 years 297 days
Weighted average exercise price, exercisable (in dollars per share)	$ 12.47	$ 6.739
Range Four [Member]
Lower range (in dollars per share)	19.51
Upper range (in dollars per share)	$ 21.66
Outstanding (in shares)	640,743	413,680
Weighted average remaining contractual life, outstanding	8 years 222 days	8 years 63 days
Weighted average exercise price, outstanding (in dollars per share)	$ 21.219	$ 12.47
Exercisable (in shares)	211,571	184,504
Weighted average remaining contractual life, exercisable	8 years 174 days	8 years 55 days
Weighted average exercise price, exercisable (in dollars per share)	$ 21.237	$ 12.47
Range Five [Member]
Lower range (in dollars per share)	22.01	21
Upper range (in dollars per share)	$ 24.23	$ 24.23
Outstanding (in shares)	309,222	1,039,073
Weighted average remaining contractual life, outstanding	8 years 108 days	9 years 173 days
Weighted average exercise price, outstanding (in dollars per share)	$ 22.293	$ 21.611
Exercisable (in shares)	127,326	54,446
Weighted average remaining contractual life, exercisable	8 years 102 days	8 years 296 days
Weighted average exercise price, exercisable (in dollars per share)	$ 22.365	$ 21.764
Range Six [Member]
Outstanding (in shares)	154,200	207,450
Weighted average remaining contractual life, outstanding	9 years 54 days	9 years 82 days
Weighted average exercise price, outstanding (in dollars per share)	$ 29.88	$ 39.86
Weighted average remaining contractual life, exercisable	0 years	0 years
Weighted average exercise price, exercisable (in dollars per share)	$ 0	$ 0
Range Seven [Member]
Outstanding (in shares)	176,375
Weighted average remaining contractual life, outstanding	8 years 82 days
Weighted average exercise price, outstanding (in dollars per share)	$ 39.86
Exercisable (in shares)	78,718
Weighted average remaining contractual life, exercisable	8 years 82 days
Weighted average exercise price, exercisable (in dollars per share)	$ 39.86
Outstanding (in shares)	2,782,560	4,080,611
Weighted average remaining contractual life, outstanding	6 years 89 days	6 years 33 days
Weighted average exercise price, outstanding (in dollars per share)	$ 14.026	$ 9.697
Exercisable (in shares)	1,794,249	2,620,454
Weighted average remaining contractual life, exercisable	5 years 12 days	4 years 131 days
Weighted average exercise price, exercisable (in dollars per share)	$ 8.841	$ 2.638

Note 8 - Outstanding Options Gr

Note 8 - Outstanding Options Granted to Consultants for Sales and Pre-Marketing Services (Details) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
February 2013 [Member] | Consultants [Member]
Options for shares of common stock (in shares)	3,000	4,000
Granted (in dollars per share)	$ 12.47	$ 12.47
Options exercisable at the end of the year (in shares)	2,125	1,832
Exercisable through	February2023	February2023
December 2006 [Member] | Consultants [Member]
Options for shares of common stock (in shares)		15,000
Granted (in dollars per share)		$ 0.901
Options exercisable at the end of the year (in shares)		15,000
Exercisable through		December2016
August 2013 [Member] | Consultants [Member]
Options for shares of common stock (in shares)	5,000	5,000
Granted (in dollars per share)	$ 21.14	$ 21.14
Options exercisable at the end of the year (in shares)	2,917	1,665
Exercisable through	August2023	August2023
October 2013 [Member] | Consultants [Member]
Options for shares of common stock (in shares)	823	1,250
Granted (in dollars per share)	$ 24.23	$ 24.23
Options exercisable at the end of the year (in shares)	479	363
Exercisable through	October2023	October2023
March 2014 [Member] | Consultants [Member]
Options for shares of common stock (in shares)	14,438	16,450
Granted (in dollars per share)	$ 39.86	$ 39.86
Options exercisable at the end of the year (in shares)	6,422
Exercisable through	March2024	March2024
May 2014 [Member] | Consultants [Member]
Options for shares of common stock (in shares)	8,700	8,700
Granted (in dollars per share)	$ 22.01	$ 22.01
Options exercisable at the end of the year (in shares)	3,444
Exercisable through	May2024	May2024
August 2014 [Member] | Consultants [Member]
Options for shares of common stock (in shares)	219	36,250
Granted (in dollars per share)	$ 21	$ 21
Options exercisable at the end of the year (in shares)	354
Exercisable through	August2024	August2024
November 2014 [Member] | Consultants [Member]
Options for shares of common stock (in shares)	12,000	12,000
Granted (in dollars per share)	$ 21.66	$ 21.66
Options exercisable at the end of the year (in shares)	3,250
Exercisable through	November2024	November2024
May 2015 [Member] | Consultants [Member]
Options for shares of common stock (in shares)	5,250
Granted (in dollars per share)	$ 19.51
Exercisable through	May2025
Consultants [Member]
Options for shares of common stock (in shares)	49,430	98,650
Options exercisable at the end of the year (in shares)	18,991	18,860
Granted (in dollars per share)	$ 28.253	$ 25.077
Options exercisable at the end of the year (in shares)	1,794,249	2,620,454

Note 8 - Summary of Restricted

Note 8 - Summary of Restricted Stock Unit Activity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Restricted Stock [Member]
Outstanding as of January 1, 2015 (in shares)	27,470
Outstanding as of January 1, 2015 (in dollars per share)	$ 21
Granted (in shares)	685,065
Granted (in dollars per share)	$ 23.30
Vested (in shares)	(36,789)
Vested (in dollars per share)	$ 19.90
Forfeited (in shares)	(32,240)
Forfeited (in dollars per share)	$ 23.56
Unvested as of December 31, 2015 (in shares)	643,506	27,470
Unvested as of December 31, 2015 (in dollars per share)	$ 23.38	$ 21
Vested (in shares)	(36,789)
Forfeited (in shares)	(32,240)
Restricted Stock Units (RSUs) [Member]
Outstanding as of January 1, 2015 (in shares)	27,470
Outstanding as of January 1, 2015 (in dollars per share)	$ 21
Granted (in shares)		31,905
Granted (in dollars per share)		$ 21
Vested (in shares)		(4,435)
Vested (in dollars per share)		$ 21
Forfeited (in shares)
Forfeited (in dollars per share)
Unvested as of December 31, 2015 (in shares)		27,470
Unvested as of December 31, 2015 (in dollars per share)		$ 21
Vested (in shares)		(4,435)
Forfeited (in shares)

Note 8 - Summary of Recognized

Note 8 - Summary of Recognized Non-Cash Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cost of Sales [Member]
Allocated share-based compensation	$ 419	$ 192	$ 39
Research and Development Expense [Member]
Allocated share-based compensation	1,954	1,198	551
Selling and Marketing Expense [Member]
Allocated share-based compensation	3,041	2,478	841
General and Administrative Expense [Member]
Allocated share-based compensation	2,380	796	357
Allocated share-based compensation	$ 7,794	$ 4,664	$ 1,788

Note 9 - Income Taxes (Details

Note 9 - Income Taxes (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Domestic Tax Authority [Member] | Research Tax Credit Carryforward [Member]
Tax Credit Carryforward, Amount	$ 439
Domestic Tax Authority [Member] | Earliest Tax Year [Member]
Open Tax Year	2,010
Domestic Tax Authority [Member]
Operating Loss Carryforwards	$ 42,629
Operating Loss Carryforwards, Windfall Tax Benefit	20,520
State and Local Jurisdiction [Member] | Retention [Member]
Tax Credit Carryforward, Amount	$ 24
State and Local Jurisdiction [Member] | Earliest Tax Year [Member]
Income Tax Examination, Year under Examination	2,009
Open Tax Year	2,009
State and Local Jurisdiction [Member] | Latest Tax Year [Member]
Income Tax Examination, Year under Examination	2,012
State and Local Jurisdiction [Member]
Operating Loss Carryforwards	$ 30,052
Operating Loss Carryforwards, Windfall Tax Benefit	14,535
Foreign Tax Authority [Member] | Foreign Tax Credit [Member]
Tax Credit Carryforward, Amount	$ 158
Foreign Tax Authority [Member] | Israel Tax Authority [Member] | VSL [Member] | Minimum [Member]
Tax Rate for Amount of Dividends Distributed, Other Than Complete Liquidation	10.00%
Foreign Tax Authority [Member] | Israel Tax Authority [Member] | VSL [Member] | Maximum [Member]
Tax Rate for Amount of Dividends Distributed, Other Than Complete Liquidation	25.00%
Foreign Tax Authority [Member]
Operating Loss Carryforwards	$ 1,563
Israel Tax Authority [Member] | VSL [Member] | Latest Tax Year [Member]
Open Tax Year	2,012
Israel Tax Authority [Member]
Tax Credit Carryforward, Amount	$ 224
Her Majesty's Revenue and Customs (HMRC) [Member] | VSUK [Member] | Latest Tax Year [Member]
Open Tax Year	2,012
Ministry of the Economy, Finance and Industry, France [Member] | VSF [Member] | Latest Tax Year [Member]
Open Tax Year	2,012
Unrecognized Tax Benefits	$ 897	$ 577	$ 269
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	800
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense	32
Undistributed Earnings of Foreign Subsidiaries	$ 2,490

Note 9 - Schedule of Profit (Lo

Note 9 - Schedule of Profit (Loss) Before Taxes on Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Domestic	$ (20,098)	$ (15,606)	$ (4,501)
Foreign	(499)	(3,416)	(2,618)
Loss before income taxes	$ (20,597)	$ (19,022)	$ (7,119)

Note 9 - Schedule of Income Tax

Note 9 - Schedule of Income Taxes on Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Federal
State	$ 85	$ 16	$ 5
Foreign	601	360	351
Actual tax expense	$ 686	$ 376	$ 356

Note 9 - Schedule of Deferred T

Note 9 - Schedule of Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Carry forward losses and credits	$ 9,220	$ 7,947
Deferred revenues	12,223	9,146
Accrued payroll, commissions, vacation	1,247	610
Allowance for doubtful accounts	88	64
Accrued severance pay	328	443
Other	2,393	731
Net deferred tax assets before valuation allowance	25,499	18,941
Valuation allowance	$ (25,499)	$ (18,941)
Net deferred tax assets

Note 9 - Schedule of Reconcilia

Note 9 - Schedule of Reconciliation of Theoretical Tax Expense and Actual Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Loss before taxes, as reported in the consolidated statements of operations	$ (20,597)	$ (19,022)	$ (7,119)
Statutory tax rate	34.00%	34.00%	34.00%
Theoretical tax benefits on the above amount at the US statutory tax rate	$ (7,003)	$ (6,468)	$ (2,420)
Income tax at rate other than the U.S. statutory tax rate	333	993	720
Tax advances and non-deductible expenses including equity based compensation expenses	1,061	1,296	715
Operating losses and other temporary differences for which valuation allowance was provided	6,558	4,596	803
State tax	(477)	(409)	(184)
Impact of rate change	(82)	49	537
Tax reserve for uncertain tax positions	320	308	119
Other individually immaterial income tax items	(24)	11	66
Actual tax expense	$ 686	$ 376	$ 356

Note 9 - Reconciliation of Begi

Note 9 - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Gross unrecognized tax benefits as of January 1, 2014	$ 577	$ 269
Increase/decrease in tax position for prior years		4
Increase in tax position for current year	474	304
Gross unrecognized tax benefits as of December 31, 2014	897	$ 577
Increase/decrease in tax position for prior years	(14)
Decrease for lapse of statute of limitations	$ (140)

Note 10 - Summary of Financial

Note 10 - Summary of Financial Income and Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Interest on bank deposits	$ 330	$ 188	$ 36
Foreign currency transactions gains, net			547
Financial income	$ 330	$ 188	583
Amortization of deferred charges related to loan		$ 187	200
Revaluation of warrants			1,508
Bank charges	$ 95	$ 109	$ 149
Foreign currency transactions loss, net	1,711	1,591
Other	47	15
Financial expenses	(1,853)	(1,902)	$ (1,857)
Total	$ (1,523)	$ (1,714)	$ (1,274)

Note 11 - Geographic Informat57

Note 11 - Geographic Information and Major Customer and Product Data (Details Textual) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
FRANCE
Revenues	$ 13,570	$ 10,419
Number of Reportable Segments	1
Revenues	$ 127,210	$ 101,348	$ 74,616

Note 11 - Summary of Revenues w

Note 11 - Summary of Revenues within Geographical Areas (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
UNITED STATES
Revenues		$ 73,343	$ 56,910	$ 42,165
EMEA [Member]
Revenues	[1]	44,994	35,809	25,986
Rest of World [Member]
Revenues		8,873	8,629	6,465
Revenues		$ 127,210	$ 101,348	$ 74,616
[1]	Sales to customers in France accounted for $13,570 and$10,419 for the years ended December 31, 2015 and 2014. In 2013 sales in France did not exceed 10% of the Company’s revenues.

Note 11 - Summary of Long-lived

Note 11 - Summary of Long-lived Assets by Geographic Region (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
UNITED STATES
Long-lived assets	$ 6,419	$ 2,146
ISRAEL
Long-lived assets	1,607	1,648
Other [Member]
Long-lived assets	239	195
Long-lived assets	$ 8,265	$ 3,989