Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2014 | |
Document and Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | FALSE |
Document Period End Date | 31-Dec-14 |
Entity Registrant Name | Allot Communications Ltd. |
Entity Central Index Key | 1365767 |
Current Fiscal Year End Date | -19 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2014 |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 33,319,923 |
Entity Current Reporting Status | Yes |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | $19,180 | $42,813 |
Short-term bank deposits | 59,000 | 38,000 |
Available-for-sale marketable securities | 54,271 | 40,798 |
Trade receivables (net of allowance for doubtful accounts of $707 and $441 at December 31, 2014 and 2013 respectively) | 23,759 | 16,908 |
Other receivables and prepaid expenses | 5,383 | 7,646 |
Inventories | 10,109 | 13,798 |
Total current assets | 171,702 | 159,963 |
NON-CURRENT ASSETS: | ||
Severance pay fund | 262 | 254 |
Deferred taxes | 1,716 | 1,602 |
Other assets | 4,948 | 1,343 |
Total non-current assets | 6,926 | 3,199 |
PROPERTY AND EQUIPMENT, NET | 5,957 | 5,874 |
INTANGIBLE ASSETS, NET | 7,549 | 9,407 |
GOODWILL | 20,814 | 20,814 |
Total assets | 212,948 | 199,257 |
CURRENT LIABILITIES: | ||
Trade payables | 6,300 | 3,191 |
Employees and payroll accruals | 7,237 | 6,129 |
Deferred revenues | 12,704 | 12,504 |
Other payables and accrued expenses | 7,287 | 4,777 |
Total current liabilities | 33,528 | 26,601 |
LONG-TERM LIABILITIES: | ||
Deferred revenues | 4,158 | 2,447 |
Accrued severance pay | 282 | 282 |
Total long-term liabilities | 4,440 | 2,729 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
SHAREHOLDERS' EQUITY: | ||
Share capital - Ordinary shares of NIS 0.1 par value - Authorized: 200,000,000 shares at December 31, 2014 and 2013; Issued and outstanding: 33,319,923 and 32,877,118 shares at December 31, 2014 and 2013, respectively | 819 | 774 |
Additional paid-in capital | 252,120 | 242,629 |
Accumulated other comprehensive income (loss) | -1,620 | 366 |
Accumulated deficit | -76,339 | -73,842 |
Total shareholders' equity | 174,980 | 169,927 |
Total liabilities and shareholders' equity | $212,948 | $199,257 |
CONSOLIDATED_BALANCE_SHEETS_PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICALS) | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | USD ($) | ILS | USD ($) | ILS |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||||
Allowance for doubtful accounts | $707 | $441 | ||
Ordinary shares, par value per share | 0.1 | 0.1 | ||
Ordinary shares, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 |
Ordinary shares, shares issued | 33,319,923 | 33,319,923 | 32,877,118 | 32,877,118 |
Ordinary shares, shares outstanding | 33,319,923 | 33,319,923 | 32,877,118 | 32,877,118 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Products | $77,240 | $66,318 | $77,127 |
Services | 39,946 | 30,227 | 27,625 |
Total revenues | 117,186 | 96,545 | 104,752 |
Cost of revenues: | |||
Products | 27,389 | 20,572 | 26,857 |
Services | 7,350 | 6,246 | 4,180 |
Expenses related to settlement of OCS grants (See note 11a) | 15,886 | ||
Total cost of revenues | 34,739 | 26,818 | 46,923 |
Gross profit | 82,447 | 69,727 | 57,829 |
Operating expenses: | |||
Research and development (net of grant participations of $984 $1,051 and $2,855 for the years ended December 31, 2014, 2013 and 2012, respectively) | 29,014 | 27,022 | 22,060 |
Sales and marketing | 44,599 | 39,817 | 34,127 |
General and administrative | 11,941 | 9,952 | 10,664 |
Total operating expenses | 85,554 | 76,791 | 66,851 |
Operating loss | -3,107 | -7,064 | -9,022 |
Financial income, net | 660 | 727 | 1,358 |
Loss before income tax expense (benefit) | -2,447 | -6,337 | -7,664 |
Income tax expense (benefit) | 50 | 120 | -926 |
Net loss | -2,497 | -6,457 | -6,738 |
Unrealized gain (loss) on available-for-sale marketable securities | -205 | -20 | 15 |
Unrealized gain (loss) on foreign currency cash flow hedges transactions | -1,781 | -1,374 | 2,555 |
Total comprehensive loss | ($4,483) | ($7,851) | ($4,168) |
Net loss per share: | |||
Basic and diluted | ($0.08) | ($0.20) | ($0.21) |
Weighted average number of shares used in per share computations of net loss: | |||
Basic and diluted | 33,143,168 | 32,680,766 | 31,959,921 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (PARENTHETICALS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS [Abstract] | |||
Grants participations excluded from research and development costs | $984 | $1,051 | $2,855 |
STATEMENTS_OF_CHANGES_IN_SHARE
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Ordinary shares [Member] | Additional paid-in capital [Member] | Accumulated other comprehensive income (loss) [Member] | Accumulated deficit [Member] |
In Thousands, except Share data | |||||
Balance at Dec. 31, 2011 | $162,569 | $720 | $223,306 | ($810) | ($60,647) |
Balance, shares at Dec. 31, 2011 | 30,950,234 | ||||
Exercise of stock options | 5,903 | 41 | 5,862 | ||
Exercise of stock options, shares | 1,596,917 | 1,596,917 | |||
Stock-based compensation | 4,817 | 4,817 | |||
Other comprehensive loss | 2,570 | 2,570 | |||
Net loss | -6,738 | -6,738 | |||
Balance at Dec. 31, 2012 | 169,121 | 761 | 233,985 | 1,760 | -67,385 |
Balance, shares at Dec. 31, 2012 | 32,547,151 | ||||
Exercise of stock options | 926 | 13 | 913 | ||
Exercise of stock options, shares | 329,872 | 329,967 | |||
Stock-based compensation | 7,731 | 7,731 | |||
Other comprehensive loss | -1,394 | -1,394 | |||
Net loss | -6,457 | -6,457 | |||
Balance at Dec. 31, 2013 | 169,927 | 774 | 242,629 | 366 | -73,842 |
Balance, shares at Dec. 31, 2013 | 32,877,118 | 32,877,118 | |||
Exercise of stock options | 1,476 | 45 | 1,431 | ||
Exercise of stock options, shares | 353,368 | 442,805 | |||
Stock-based compensation | 8,060 | 8,060 | |||
Other comprehensive loss | -1,986 | -1,986 | |||
Net loss | -2,497 | -2,497 | |||
Balance at Dec. 31, 2014 | $174,980 | $819 | $252,120 | ($1,620) | ($76,339) |
Balance, shares at Dec. 31, 2014 | 33,319,923 | 33,319,923 |
STATEMENTS_OF_CHANGES_IN_SHARE1
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (PARENTHETICALS) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Accumulated other comprehensive income (loss): | |||
Accumulated unrealized gain (loss) on available-for-sale marketable securities | ($164) | $41 | $61 |
Accumulated unrealized gain (loss) on foreign currency cash flows hedge transactions | -1,456 | 325 | 1,699 |
Accumulated other comprehensive (loss) income (see note 2t) | ($1,620) | $366 | $1,760 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net loss | ($2,497) | ($6,457) | ($6,738) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 5,166 | 6,338 | 5,067 |
Stock-based compensation | 8,095 | 7,731 | 4,817 |
Capital loss | 18 | 20 | |
Increase in accrued severance pay, net | -8 | -13 | |
Decrease (increase) in other assets | 100 | -532 | 6 |
Decrease in accrued interest and amortization of premium on marketable securities | 793 | 366 | 212 |
Decrease (increase) in trade receivables | -6,851 | 3,328 | -8,139 |
Decrease (increase) in other receivables and prepaid expenses | -1,321 | -2,749 | 1,159 |
Decrease (increase) in inventories | 3,689 | -3,835 | 3,233 |
Increase in long-term deferred taxes, net | -224 | -77 | -931 |
Increase (decrease) in trade payables | 3,109 | -1,618 | -1,287 |
Increase (decrease) in employees and payroll accruals | 1,073 | -2,053 | 2,392 |
Increase (decrease) in deferred revenues | 1,911 | -2,823 | -7,089 |
Increase (decrease) in other payables and accrued expenses | 2,800 | -988 | 84 |
Liability related to settlement of OCS grants (See Note 11a) | -15,886 | 15,886 | |
Net cash provided by (used in) operating activities | 15,835 | -19,250 | 8,692 |
Cash flows from investing activities: | |||
Decrease in restricted cash and deposits | 146 | 913 | |
Investments in short-term bank deposits | -50,500 | -54,042 | |
Proceeds from short-term bank deposits | 29,500 | 40,042 | |
Purchase of property and equipment | -3,391 | -2,706 | -3,820 |
Investment in available-for sale marketable securities | -22,736 | -32,805 | -8,194 |
Proceeds from sales of available-for-sale marketable securities | 2,597 | 750 | |
Proceeds from maturity of available-for-sale marketable securities | 8,266 | 3,864 | 9,986 |
Loan granted to third party | -2,735 | ||
Repayment of loan to third party | 652 | ||
Payments (and loan issued) for subsidiaries acquired, net of cash (see schedule A below) | -24,892 | ||
Net cash (used in) provided by investing activities | -40,944 | 11,138 | -79,299 |
Cash flows from financing activities: | |||
Proceeds from exercise of stock options | 1,476 | 899 | 5,903 |
Repayment of bank loan | -1,952 | ||
Net cash provided by financing activities | 1,476 | 899 | 3,951 |
Decrease in cash and cash equivalents | -23,633 | -7,213 | -66,656 |
Cash and cash equivalents at the beginning of the year | 42,813 | 50,026 | 116,682 |
Cash and cash equivalents at the end of the year | 19,180 | 42,813 | 50,026 |
Supplementary cash flow information: | |||
Cash paid (received) during the year for taxes | 82 | -9 | -48 |
Estimated net fair value of assets acquired and liabilities assumed at the date of acquisition was as follows: | |||
Working capital, net (excluding cash and cash equivalents) | -4,501 | ||
Equipment and other assets | 597 | ||
Intangible assets | 14,025 | ||
Goodwill | 17,663 | ||
Deferred tax assets, net | 409 | ||
Long-term liabilities | -1,952 | ||
Total Consideration | 26,241 | ||
Non cash - Contingent Consideration (See also note 1b) | -1,349 | ||
Payments (and loan issued) for subsidiaries acquired, net of cash | 24,892 | ||
Proceeds from exercise of stock options | $27 |
GENERAL
GENERAL | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
GENERAL [Abstract] | ||||||
GENERAL | NOTE 1:- GENERAL | |||||
a. Allot Communications Ltd. (the "Company") was incorporated in November 1996 under the laws of the State of Israel. The Company is engaged in developing, selling and marketing intelligent IP service optimization solutions for mobile, DSL and wireless broadband carriers, cable operator service providers, and enterprises. The Company's portfolio of hardware platforms and software applications utilizes advanced deep packet inspection technology to transform broadband pipes into smart networks that can rapidly and efficiently manage data over mobile and wireline networks and deploy value added Internet services. The Company's products consist of the Service Gateway and NetEnforcer traffic management systems, the NetXplorer and Subscribe Management Platform application management suites and value added services such as the Service Protector network protection solution, the MediaSwift video caching solution and the WebSafe network solution. | ||||||
The Company's Ordinary Shares are listed in the NASDAQ Global Select Market under the symbol "ALLT" from its initial public offering in November 2006. Since November, 2010, the Company's Ordinary Shares have been listed for trading in the Tel Aviv Stock Exchange as well. | ||||||
The Company holds nine wholly-owned subsidiaries (the Company together with said subsidiaries shall collectively be referred to as "Allot"): Allot Communications, Inc. in Woburn, Massachusetts, United-States (the "U.S. subsidiary"), which was incorporated in 1997 under the laws of the State of California, Allot Communication Europe SARL in Sophia, France (the "European subsidiary"), which was incorporated in 1998 under the laws of France, Allot Communications Japan K.K. in Tokyo, Japan (the "Japanese subsidiary"), which was incorporated in 2004 under the laws of Japan, Allot Communication (UK) Limited (the "UK subsidiary"), which was incorporated in 2006 under the laws of England and Wales, Allot Communications (Asia Pacific) Pte. Ltd. ("the Singaporean subsidiary"), which was incorporated in 2006 under the laws of Singapore, Allot Communications (New Zealand) Limited. (the "NZ subsidiary"), which was incorporated in 2007 under the laws of New Zealand, Allot India Private Limited. (the "Indian subsidiary”), which was incorporated in 2012 under the laws of India and commenced its activity in 2013, Allot Communication Africa (PTY) Ltd. (the "African subsidiary”), which was incorporated in 2013 under the laws of South Africa and Allot Communication (Hong Kong) Limited (the "HK”), which was incorporated in 2013 under the laws of Hong-Kong. | ||||||
The U.S. subsidiary commenced operations in 1997. It is engaged in the sale, marketing and technical support and development services in the Americas of products manufactured and imported by the Company. The European, Japanese, UK, Singaporean, Indian and African subsidiaries are engaged in marketing and technical support services of the Company's products in Europe, Japan, UK and Asia Pacific, respectively. The NZ subsidiary commenced its operations in 2008 and is engaged in the development activities related to the Service Protector and technical support services for this product. | ||||||
b. Acquisitions: | ||||||
1. On May 15, 2012 (the "Ortiva acquisition date"), the Company entered into a share purchase agreement (the "Ortiva SPA") with the shareholders of Ortiva Wireless Inc. ("Ortiva") a private, California-based company that develops video optimization solutions for mobile and internet networks. The Company paid $ 10,816 in cash as consideration for all the shares of Ortiva. | ||||||
The acquisition was accounted for using the purchase method of accounting in accordance with ASC No. 805, “Business Combinations” ("ASC No. 805"). Accordingly, the purchase price was allocated according to the estimated fair values of the assets acquired and liabilities assumed and the excess of the purchase price over the net tangible and identified intangible assets was assigned to goodwill. The fair value of intangible assets was determined by management with the assistance of a third party valuation. | ||||||
The results of Ortiva's operations have been included in the Company's consolidated financial statements since the Ortiva acquisition date. Revenues recognized from the Ortiva acquisition date to December 31, 2012 were $ 3,404. | ||||||
On December 31, 2012 Ortiva was merged into the U.S. subsidiary. | ||||||
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date: | ||||||
Fair value | ||||||
Current assets | $ | 1,967 | ||||
Equipment | 459 | |||||
Deferred revenues | (1,803 | ) | ||||
Current and non-current liabilities | (3,949 | ) | ||||
Deferred tax assets, net | 409 | |||||
Technology | 3,899 | |||||
Backlog | 910 | |||||
Goodwill | 8,924 | |||||
Net assets acquired | $ | 10,816 | ||||
Technology includes Ortiva's internally developed proprietary technologies and platforms for video optimization. The technology is being amortized over the estimated useful life of 9.6 years using the straight line method. | ||||||
Backlog from customer orders is amortized over the estimated useful life of 1.6 years. | ||||||
2. On September 4, 2012, (the "Oversi acquisition date") the Company entered into a share purchase agreement (the "Oversi SPA") with the shareholders of Oversi Networks Ltd ("Oversi"), a private, Israeli-based company that develops and sells products and systems for caching Internet content. | ||||||
The total consideration for the acquisition was $ 17,349, which consisted of $ 16,000 in cash and contingent consideration estimated at fair value of $ 1,349 at the Oversi acquisition date. | ||||||
Pursuant to the Oversi SPA, the Company had a contingent liability to pay additional consideration if Oversi reaches a certain threshold of bookings for the year ended December 31, 2012. As of December 31, 2012, the fair value of the contingent consideration was determined to be $ 1,088 and was presented in other payables and accrued expenses. During 2013, the fair value of the contingent consideration was estimated to $ 0 as the booking threshold was not achieved. The changes in fair value of the contingent consideration were recorded in general and administrative expenses. | ||||||
The acquisition of Oversi was accounted for using the purchase method of accounting in accordance with ASC No. 805. Accordingly, the purchase price has been allocated according to the estimated fair value of the assets acquired and liabilities assumed. The excess of the purchase price over the net tangible and identified intangible assets was assigned to goodwill. The fair value of the intangible assets and the contingent consideration was determined by management with the assistance of a third party valuation. | ||||||
The results of Oversi's operations have been included in the Company consolidated financial statements since September 4, 2012. Revenues recognized from the Oversi acquisition date to December 31, 2012 were $ 1,954. On December 31, 2012, Oversi was merged into the Company. | ||||||
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date: | ||||||
Fair value | ||||||
Current assets | $ | 4,182 | ||||
Equipment and other assets | 138 | |||||
Deferred revenues | (936 | ) | ||||
Other current liabilities | (2,038 | ) | ||||
Bank loan | (1,952 | ) | ||||
Technology | 6,826 | |||||
Backlog | 1,491 | |||||
Customer relationships | 899 | |||||
Goodwill | 8,739 | |||||
Net assets acquired | $ | 17,349 | ||||
Technology includes rich-media caching and content delivery solutions for peer to peer, Internet video and other media applications. The technology is amortized over the estimated useful life of 6.3 years using the straight line method. | ||||||
Backlog from customer orders is amortized over the estimated useful life of 1.4 years. | ||||||
Customer relationships is derived from customer contracts and related customer relationships with existing customers. Customer relationships is amortized based on the accelerated method over the estimated useful life of 4.3 years. | ||||||
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||
The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). | ||||||||||||||||
a. Use of estimates: | ||||||||||||||||
The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||||||||||
b. Financial statements in U.S. dollars: | ||||||||||||||||
The majority of the revenues of the Company and its subsidiaries are generated in U.S. dollars ("dollar") or linked to the dollar. In addition, a major portion of the Company's and certain of its subsidiaries' costs are incurred or determined in dollars. The Company's management believes that the dollar is the currency of the primary economic environment in which the Company and its subsidiaries operate. Thus, the functional and reporting currency of the Company and its subsidiaries is the dollar. | ||||||||||||||||
Accordingly, monetary accounts maintained in currencies other than the dollar are remeasured into U.S. dollars in accordance with Accounting Standards Codification No. 830, "Foreign Currency Matters" ("ASC No. 830"). All transactions gains and losses from the remeasurement of monetary balance sheet items are reflected in the statements of operations as financial income or expenses as appropriate. | ||||||||||||||||
c. Principles of consolidation: | ||||||||||||||||
The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions have been eliminated upon consolidation. | ||||||||||||||||
d. Cash and cash equivalents: | ||||||||||||||||
The Company considers all unrestricted highly liquid investments which are readily convertible into cash, with maturity of three months or less at the date of acquisition, to be cash equivalents. | ||||||||||||||||
e. Short-term bank deposits: | ||||||||||||||||
Short-term bank deposits are deposits with maturities of more than three months but less than one year at the balance sheet date. The deposits are in dollars, New Israeli Shekels ("NIS") and Euros, and bear interest at annual weighted average rate of 0.56% and 0.51% at December 31, 2014 and 2013 respectively. | ||||||||||||||||
f. Marketable securities: | ||||||||||||||||
The Company accounts for investments in marketable securities in accordance with ASC 320, "Investments - Debt and Equity Securities". Management determines the appropriate classification of its investments in debt securities at the time of purchase and re-evaluates such determinations at each balance sheet date. | ||||||||||||||||
Marketable securities classified as "available-for-sale" are carried at fair value, based on quoted market prices. Unrealized gains and losses are reported in a separate component of shareholders' equity in accumulated other comprehensive income (loss). Gains and losses are recognized when realized, on a specific identification basis, in the Company's consolidated statements of comprehensive loss. | ||||||||||||||||
The Company's securities are reviewed for impairment in accordance with ASC 320-10-35. If such assets are considered to be impaired, the impairment charge is recognized in earnings when a decline in the fair value of its investments below the cost basis is judged to be Other-Than-Temporary Impairment (OTTI). Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Company's intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. Based on the above factors, the Company concluded that unrealized losses on its available-for-sale securities, for the years ended 2014, 2013 and 2012, were not OTTI. | ||||||||||||||||
g. Inventories: | ||||||||||||||||
Inventories are stated at the lower of cost or market value. Inventory write-offs are provided to cover risks arising primarily from end of life products and from slow-moving items, technological obsolescence, and excess inventory. Inventory write-offs as of December 31, 2014, 2013 and 2012 totaled $ 4,560, $ 1,835 and $ 1,385, respectively, and was recorded in cost of revenues for products. | ||||||||||||||||
Cost is determined as follows: | ||||||||||||||||
Raw materials and finished goods – weighted average cost method | ||||||||||||||||
h. Property and equipment, net: | ||||||||||||||||
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets at the following annual rates: | ||||||||||||||||
% | ||||||||||||||||
Lab equipment | 25 - 33 | |||||||||||||||
Computers and peripheral equipment | 15 - 33 | |||||||||||||||
Office furniture | 15-Jun | |||||||||||||||
Leasehold improvements | By the shorter of term of the lease or the useful life of the asset | |||||||||||||||
i. Goodwill impairment: | ||||||||||||||||
Goodwill represents the excess of the purchase price over the fair value of net assets of purchased businesses. Under Accounting Standards Codification No. 350, "Intangibles-Goodwill and Other" ("ASC No. 350"), goodwill is not amortized, but rather subject to an annual impairment test, or more often if there are indicators of impairment present. In accordance with ASC No. 350 the Company performs an annual impairment test at December 31 each year. The first step, identifying a potential impairment, compares the fair value of the reporting unit with its carrying amount. If the carrying amount exceeds its fair value, the second step would need to be performed; otherwise, no further step is required. The second step, measuring the impairment loss, compares the implied fair value of the goodwill with the carrying amount of the goodwill. Any excess of the goodwill carrying amount over the applied fair value is recognized as an impairment loss, and the carrying value of goodwill is written down to fair value. | ||||||||||||||||
The Company operates in a single reportable unit. The Company has performed an annual impairment analysis as of December 31, 2014 and determined that the carrying value of the reporting unit was less than the fair value of the reporting unit. Fair value is determined using market capitalization. During years 2014, 2013 and 2012 no impairment losses were recorded. | ||||||||||||||||
j. Impairment of long lived assets and intangible assets subject to amortization: | ||||||||||||||||
Property and equipment and intangible assets subject to amortization are reviewed for impairment in accordance with ASC No. 360, "Accounting for the Impairment or Disposal of Long-Lived Assets," whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets 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. | ||||||||||||||||
Intangible assets acquired in a business combination are recorded at fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets that are not considered to have an indefinite useful life are amortized over their estimated useful lives. Some of the acquired intangible assets are amortized over their estimated useful lives in proportion to the economic benefits realized. This accounting policy results in accelerated amortization of such customer relationships as compared to the straight-line method. All other intangible assets are amortized over their estimated useful lives on a straight-line basis. | ||||||||||||||||
During 2014, 2013 and 2012, no impairment losses were recorded. | ||||||||||||||||
k. Revenue recognition: | ||||||||||||||||
The Company generates revenues mainly from selling its products along with related maintenance and support services. At times, these arrangements may also include professional services, such as installation services or training. The Company generally sells its products through resellers, distributors, OEMs and system integrators, all of whom are considered end-users. | ||||||||||||||||
Revenues from product sales are recognized when persuasive evidence of an agreement exists, title and risk of loss have transferred, no significant performance obligations remain, product payment is not contingent upon performance of installation or service obligations, the fee is fixed or determinable and collectability is probable. In instances where final acceptance of the product or service is specified by the customer, revenue recognition is deferred until all acceptance criteria have been met. | ||||||||||||||||
Maintenance and support related revenues included in multiple element arrangements are deferred and recognized on a straight-line basis over the term of the applicable maintenance and support agreement. Other services are recognized upon the completion of installation or when the service is provided. In instances where the services provided in a multiple element arrangement are considered essential to the functionality of the product and payment of the product is contingent upon performance of the services, the sales of the products and services would be considered one unit of accounting. | ||||||||||||||||
Tangible products containing software components and non-software components that function together to deliver the tangible product's essential functionality is no longer within the scope of the software revenue guidance in Subtopic 985-605 of the Codification. Accordingly, the Company was considered outside the scope of Subtopic 985-605. Pursuant to the guidance of ASU 2009-13, "Multiple-Deliverable Revenue Arrangements, (amendments to ASC Topic 605, Revenue Recognition)" (ASU 2009-13) and ASU 2009-14, when a sales arrangement contains multiple elements, such as products and services, the Company allocates revenues to each element based on a selling price hierarchy. The selling price for a deliverable is based on VSOE if available, third party evidence ("TPE") if VSOE is not available, or estimated selling price ("ESP") if neither VSOE nor TPE is available. In multiple element arrangements, revenues are allocated to each separate unit of accounting for each of the deliverables using the relative selling prices of each of the deliverables in the arrangement based on the aforementioned selling price hierarchy. | ||||||||||||||||
Revenues arrangements with multiple deliverables are allocated using the relative selling price method. The Company determines the best estimated selling price (“BESP”) in multiple elements arrangements as follows: | ||||||||||||||||
For the products the Company determine the “BESP” – it is based on management ESP by reviewing historical transactions and considering multiple other factors, including but not limited to, pricing practices including discounting, and competition. | ||||||||||||||||
For the maintenance and support under the pricing policy, the Company determines the ESP in multiple-element arrangements based on reviewing historical transactions, and considering several other external and internal factors including, but not limited to, pricing practices including discounting and competition. | ||||||||||||||||
For the year ended December 31, 2014, 2013 and 2012, for maintenance and support, the Company determined the selling price based on VSOE of the price charged based on standalone sales (renewals) of such elements using a consistent percentage of the Company's product price lists in the same territories. | ||||||||||||||||
Deferred revenues are classified as short and long term based on their contractual term and recognized as revenues at the time the respective elements are provided | ||||||||||||||||
The Company records a provision for estimated product returns and stock rotation based on its experience with historical product returns, stock rotations and other known factors. Such provisions amounted to $ 1,147 and $ 892 as of December 31, 2014 and 2013, respectively. | ||||||||||||||||
l. Advertising expenses: | ||||||||||||||||
Advertising expenses are charged to the statement of comprehensive loss, as incurred. Advertising expenses for the years ended December 31, 2014, 2013 and 2012 amounted to $ 1,131, $ 973 and $ 1,002, respectively. | ||||||||||||||||
m. Research and development costs: | ||||||||||||||||
Accounting Standards Codification No. 985-20, 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 a working model and the point at which the products are ready for general release. Therefore, research and development costs are charged to the consolidated statement of comprehensive loss as incurred. | ||||||||||||||||
n. Severance pay: | ||||||||||||||||
The liability in Israel for substantially all of the Company`s employees in respect of severance pay liability is calculated in accordance with Section 14 of the Severance Pay Law -1963 (herein- "Section 14"). Section 14 states that Company's contributions for severance pay shall be in line of severance compensation and upon release of the policy to the employee, no additional obligations shall be conducted between the parties regarding the matter of severance pay and no additional payments shall be made by the Company to the employee. | ||||||||||||||||
Furthermore, the related obligation and amounts deposited on behalf of such obligation under Section 14, are not stated on the balance sheet, because pursuant to current ruling, they are legally released from obligation to employees once the deposits have been paid. | ||||||||||||||||
There are a limited number of employees in Israel, for whom the Company is liable for severance pay. The Company's liability for severance pay for its Israeli employees was calculated pursuant to Section 14, based on the most recent monthly salary of its Israeli employees multiplied by the number of years of employment as of the balance sheet date for such employees. | ||||||||||||||||
The Company's liability was partly provided by monthly deposits with severance pay funds and insurance policies and the remainder by an accrual. | ||||||||||||||||
Severance expense for the years ended December 31, 2014, 2013 and 2012, amounted to | ||||||||||||||||
$ 2,092, $ 2,070 and $ 1,486, respectively. | ||||||||||||||||
o. Accounting for stock-based compensation: | ||||||||||||||||
The Company accounts for stock based compensation in accordance with Accounting Standards Codification No. 718, "Compensation - Stock Compensation" ("ASC No. 718") that requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. 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 statement of operations. | ||||||||||||||||
ASC No. 718 requires forfeitures to be estimated at the time of the grant and revised in subsequent periods if actual forfeitures differ from those estimates. | ||||||||||||||||
The following table sets forth the total stock-based compensation expense resulting from stock options and RSUs granted to employees included in the consolidated statements of comprehensive loss, for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||
Year ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Cost of revenues | $ | 353 | $ | 368 | $ | 222 | ||||||||||
Research and development | 1,919 | 1,666 | 1,186 | |||||||||||||
Sales and marketing | 3,322 | 3,106 | 2,060 | |||||||||||||
General and administrative | 2,501 | 2,591 | 1,349 | |||||||||||||
Total stock-based compensation expense | $ | 8,095 | $ | 7,731 | $ | 4,817 | ||||||||||
The Company selected the binomial option pricing model as the most appropriate fair value method for its stock-based compensation awards with the following assumptions for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||
Year ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Suboptimal exercise multiple | 3 | 3 | 2.5-3.5 | |||||||||||||
Risk free interest rate | 0.1%-2.73% | 0.1%-2.77% | 0.15%-1.39% | |||||||||||||
Volatility | 44%-60% | 53%-63% | 51%-66% | |||||||||||||
Dividend yield | 0% | 0% | 0% | |||||||||||||
The expected annual post-vesting and pre-vesting forfeiture rates affects the number of exercisable options. Based on the Company's historical experience, the annual post-vesting and pre-vesting forfeiture rates in 2014, 2013, and 2012 are 0%-5.7%. | ||||||||||||||||
The computations of expected volatility and suboptimal exercise multiple are based on the average of the Company's realized historical stock price volatility based on market capitalization and type of technology platform. The computation of the suboptimal exercise multiple and the forfeiture rates are based on the grantees expected exercise prior and post vesting termination behavior. The interest rate for period within the contractual life of the award is based on the U.S. Treasury Bills yield curve in effect at the time of grant. The Company currently has no plans to distribute dividends and intends to retain future earnings to finance the development of its business. | ||||||||||||||||
The expected life of the stock options represents the weighted-average period the stock options are expected to remain outstanding and is a derived output of the binomial model. The expected life of the stock options is impacted by all of the underlying assumptions used in the Company's model. | ||||||||||||||||
p. Concentration of credit risks: | ||||||||||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, short-term bank deposits, trade receivables and derivative instruments. | ||||||||||||||||
The majority of cash and cash equivalents, marketable securities and short-term deposits of the Company are invested in dollar deposits in major U.S. and Israeli banks. Such deposits in the United States may be in excess of insured limits and are not insured in other jurisdictions. Generally, the cash and cash equivalents and short-term bank deposits may be redeemed upon demand, and therefore, bear minimal risk. | ||||||||||||||||
The Company's trade receivables are primarily derived from sales to customers located mainly in the United States, as well as in EMEA, APAC and Latin America. Concentration of credit risk with respect to trade receivables is limited by credit limits, ongoing credit evaluation and account monitoring procedures. The Company performs ongoing credit evaluations of its customers and establishes an allowance for doubtful accounts on a specific basis. Allowance for doubtful accounts amounted to $ 707 and $ 441 as of December 31, 2014 and 2013, respectively. | ||||||||||||||||
The Company has no significant off balance sheet concentrations of credit risk. | ||||||||||||||||
q. Grants from the OCS: | ||||||||||||||||
Participation grants from the Office of the Chief Scientist of the Ministry of Industry, Trade and Labor in Israel ("OCS") for research and development activity are recognized at the time the Company is entitled to such grants on the basis of the costs incurred and included as a deduction of research and development costs. Research and development grants recognized amounted to $ 984, $ 1,051 and $ 2,855 in 2014, 2013 and 2012, respectively. | ||||||||||||||||
r. Income taxes: | ||||||||||||||||
The Company accounts for income taxes in accordance with Accounting Standards Codification No. 740, "Income Taxes" ("ASC No. 740"). ASC No. 740 prescribes the use of the liability method, whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of 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 their estimated realizable value if it is more likely than not that some portion or all of the deferred tax assets will not be realized. | ||||||||||||||||
ASC No. 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. | ||||||||||||||||
s. Basic and diluted net income/loss per share: | ||||||||||||||||
Basic net income per share is computed based on the weighted average number of Ordinary Shares outstanding during each year. Diluted net income per share is computed based on the weighted average number of Ordinary Shares outstanding during each year, plus dilutive potential Ordinary Shares considered outstanding during the year, in accordance with FASB ASC 260 "Earnings Per Share". | ||||||||||||||||
For the years ended December 31, 2014, 2013 and 2012, all outstanding options and warrants have been excluded from the calculation of the diluted loss per share since their effect was anti-dilutive. See Note 16. | ||||||||||||||||
t. Comprehensive income (loss): | ||||||||||||||||
The Company accounts for comprehensive income (loss) in accordance with Accounting Standards Codification No. 220, "Comprehensive Income" ("ASC No. 220"). This statement establishes standards for the reporting and display of comprehensive income (loss) and its components in a full set of general purpose financial statements. Comprehensive income (loss) generally represents all changes in shareholders' equity during the period except those resulting from investments by, or distributions to shareholders. The Company determined that its items of comprehensive income (loss) relate to unrealized gains and losses on hedging derivative instruments and unrealized gains and losses on available-for-sale marketable securities. | ||||||||||||||||
In February 2013, the FASB issued Accounting Standards Update ("ASU") 2013-02, which requires entities to present information about significant items reclassified out of accumulated other comprehensive income (loss) by component either on the face of the statement where net income (loss) is presented or as a separate disclosure in the notes to the financial statements. | ||||||||||||||||
The following table shows the components and the effects on net income (loss) of amounts reclassified from accumulated other comprehensive loss as of December 31, 2014: | ||||||||||||||||
Year ended December 31, 2014 | ||||||||||||||||
Unrealized gains (losses) on marketable securities | Unrealized gains (losses) on cash flow hedges | Total | ||||||||||||||
Balance as of December 31, 2013 | $ | 41 | $ | 325 | $ | 366 | ||||||||||
Changes in other comprehensive income (loss) before reclassifications | (210 | ) | (2,497 | ) | (2,707 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) to : | ||||||||||||||||
Cost of revenues | - | 86 | 86 | |||||||||||||
Operating expenses | - | 630 | 630 | |||||||||||||
Financial income, net | 5 | - | 5 | |||||||||||||
Net current-period other comprehensive loss | (205 | ) | (1,781 | ) | (1,986 | ) | ||||||||||
Balance as of December 31, 2014 | (164 | ) | (1,456 | ) | (1,620 | ) | ||||||||||
u. Fair value of financial instruments: | ||||||||||||||||
The Company measures its cash and cash equivalents, marketable securities, derivative instruments,, short-term bank deposits, trade receivables, other receivables, trade payables and other payables at fair value. | ||||||||||||||||
Fair value is an exit price, representing the amount that would be received if the Company were 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. The Company uses a three-tier value hierarchy, which prioritizes the 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. | ||||||||||||||||
The following table shows the components of Accumulated other comprehensive income, net of taxes, as of December 31, 2014: | ||||||||||||||||
Level 2 - Include other inputs that are directly or indirectly observable in the marketplace, other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets with insufficient volume or infrequent transactions, or other inputs that are observable (model-derived valuations in which significant inputs are observable), or can be derived principally from or corroborated by observable market data; and | ||||||||||||||||
Level 3 - Unobservable inputs which are supported by little or no market activity. | ||||||||||||||||
The Company categorized each of its fair value measurements in one of those three levels of hierarchy. 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. | ||||||||||||||||
v. Derivatives and hedging: | ||||||||||||||||
The Company accounts for derivatives and hedging based on Accounting Standards Codification No. 815, "Derivatives and Hedging" ("ASC No. 815"). | ||||||||||||||||
The Company accounts for its derivative instruments as either assets or liabilities and carries them at fair value. Derivative instruments that are not designated and qualified as hedging instruments must be adjusted to fair value through earnings. | ||||||||||||||||
For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income (loss) in shareholders' equity and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The ineffective portion of the gain or loss on the derivative instrument is recognized in current earnings. To apply hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. (See Note 5). | ||||||||||||||||
w. Business combinations: | ||||||||||||||||
The Company accounts for business combinations in accordance with ASC No. 805. ASC No. 805 requires recognition of assets acquired, liabilities assumed, and any non-controlling interest at the acquisition date, measured at their fair values as of that date. Any excess of the fair value of net assets acquired over the purchase price is recorded as goodwill and any subsequent changes in estimated contingencies are to be recorded in earnings. In addition, changes in valuation allowance related to acquired deferred tax assets and acquired income tax positions are to be recognized in earnings. | ||||||||||||||||
x. Warranty costs: | ||||||||||||||||
The Company generally provides a three months software and a one year hardware warranty for all of its products. A provision is recorded for estimated warranty costs at the time revenues are recognized based on the Company's experience. Warranty expenses for the years ended December 31, 2012, 2013 and 2014 were immaterial. | ||||||||||||||||
y. Reclassifications: | ||||||||||||||||
Certain amounts in prior years' financial statements have been reclassified to conform to the current year's presentation. An amount of $ 572 related to Government Authorities was reclassified from other receivables and prepaid expenses to Non-current assets. The reclassification had no effect on previously reported net income or shareholders' equity. | ||||||||||||||||
z. Recently Issued Accounting Pronouncement: | ||||||||||||||||
On May 28, 2014, the FASB completed its Revenue Recognition project by issuing ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The new guidance establishes the principles to report useful information to users of financial statements about the nature, timing, and uncertainty of revenue from contracts with customers. The new Revenue Recognition guidance is effective for annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. Early application is not permitted. The Company has not yet selected a transition method and it is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. | ||||||||||||||||
AVAILABLEFORSALE_MARKETABLE_SE
AVAILABLE-FOR-SALE MARKETABLE SECURITIES | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
AVAILABLE-FOR-SALE MARKETABLE SECURITIES [Abstract] | |||||||||||||||||||||||||||||||||
AVAILABLE-FOR-SALE MARKETABLE SECURITIES | NOTE 3:- AVAILABLE-FOR-SALE MARKETABLE SECURITIES | ||||||||||||||||||||||||||||||||
The following is a summary of available-for-sale marketable securities: | |||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||
Amortized cost | Gross unrealized gain | Gross unrealized | Fair | Amortized cost | Gross | Gross unrealized | Fair | ||||||||||||||||||||||||||
loss | loss | ||||||||||||||||||||||||||||||||
value | unrealized | value | |||||||||||||||||||||||||||||||
gain | |||||||||||||||||||||||||||||||||
Available-for-sale - matures within one year: | |||||||||||||||||||||||||||||||||
Governmental debentures | $ | 912 | $ | 1 | $ | - | $ | 913 | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||
Corporate debentures | 14,231 | 18 | (1 | ) | 14,248 | 3,921 | 7 | - | 3,928 | ||||||||||||||||||||||||
15,143 | 19 | (1 | ) | 15,161 | 3,921 | 7 | - | 3,928 | |||||||||||||||||||||||||
Available-for-sale - matures after one year through three years: | |||||||||||||||||||||||||||||||||
Governmental debentures | 562 | - | (9 | ) | 553 | 1,673 | 4 | (1 | ) | 1,676 | |||||||||||||||||||||||
Corporate debentures | 30,036 | - | (89 | ) | 29,947 | 35,163 | 77 | (46 | ) | 35,194 | |||||||||||||||||||||||
30,598 | - | (98 | ) | 30,500 | 36,836 | 81 | (47 | ) | 36,870 | ||||||||||||||||||||||||
Available-for-sale - matures after three years through five years: | |||||||||||||||||||||||||||||||||
Governmental debentures | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Corporate debentures | 8,694 | - | (84 | ) | 8,610 | - | - | - | - | ||||||||||||||||||||||||
- | |||||||||||||||||||||||||||||||||
8,694 | - | (84 | ) | 8,610 | - | - | - | - | |||||||||||||||||||||||||
$ | 54,435 | $ | 19 | $ | (183 | ) | $ | 54,271 | $ | 40,757 | $ | 88 | $ | (47 | ) | $ | 40,798 | ||||||||||||||||
All investments with an unrealized loss as of December 31, 2014 are with continuous unrealized losses for less than 12 months. | |||||||||||||||||||||||||||||||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | |||||||||||||||||
FAIR VALUE MEASUREMENTS | NOTE 4:- FAIR VALUE MEASUREMENTS | ||||||||||||||||
In accordance with ASC No. 820, the Company measures its cash equivalents, marketable securities and foreign currency derivative instruments at fair value. Cash equivalents and available for sale marketable securities are classified within Level 1 or Level 2. This is because these assets are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. | |||||||||||||||||
The Company's financial assets measured at fair value on a recurring basis, including accrued interest components, consisted of the following types of instruments as of December 31, 2014 and 2013, respectively: | |||||||||||||||||
As of December 31, 2014 | |||||||||||||||||
Fair value measurements using input type | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Available-for-sale marketable securities | $ | - | $ | 54,271 | $ | - | $ | 54,271 | |||||||||
Foreign currency derivative contracts | - | (899 | ) | - | (899 | ) | |||||||||||
Total financial assets | $ | - | $ | 53,372 | $ | - | $ | 53,372 | |||||||||
As of December 31, 2013 | |||||||||||||||||
Fair value measurements using input type | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Available-for-sale marketable securities | $ | - | $ | 40,798 | $ | - | $ | 40,798 | |||||||||
Foreign currency derivative contracts | - | 264 | - | 264 | |||||||||||||
Total financial assets | $ | - | $ | 41,062 | $ | - | $ | 41,062 | |||||||||
DERIVATIVE_INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
DERIVATIVE INSTRUMENTS [Abstract] | ||||||||||||
DERIVATIVE INSTRUMENTS | NOTE 5:- DERIVATIVE INSTRUMENTS | |||||||||||
The Company enters into hedge transactions with a major financial institution, using derivative instruments, primarily forward contracts and options to purchase and sell foreign currencies, in order to reduce the net currency exposure associated with anticipated expenses (primarily salaries and related expenses that are designated as cash flow hedges) in currencies other than U.S. dollar, and forecasted revenues denominated in Euro. The net loss (income) recognized in "Financial income, net" during the years ended December 31, 2014, 2013 and 2012 was $ 2,144, $ 181 and $ (231), respectively. | ||||||||||||
The Company currently hedges such future exposures for a maximum period of one year. However, the Company may choose not to hedge certain foreign currency exchange exposures for a variety of reasons, including but not limited to immateriality, accounting considerations and the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign currency exchange rates. | ||||||||||||
The Company records all derivatives on the consolidated balance sheets at fair value in accordance with ASC No. 820 at Level 2. The effective portions of cash flow hedges are recorded in other comprehensive income (loss) until the hedged item is recognized in earnings. The ineffective portions of cash flow hedges are adjusted to fair value through earnings in financial income, net. The Company does not enter into derivative transactions for trading purposes. | ||||||||||||
The Company had a net unrealized gain (loss) associated with cash flow hedges of $ (1,456) and $ 325 recorded in other comprehensive income (loss) as of December 31, 2014 and 2013, respectively. | ||||||||||||
As of December 31, 2014 and 2013, the Company had outstanding forward contracts in the amount of $ 42,799 and $ 14,904, respectively. | ||||||||||||
The fair value of the outstanding foreign exchange contracts recorded by the Company on its consolidated balance sheets as of December 31, 2014 and 2013, as assets and liabilities is as follows: | ||||||||||||
Foreign exchange forward and | December 31, | |||||||||||
options contracts | Balance sheet | 2014 | 2013 | |||||||||
Fair value of foreign exchange forward contracts | Other receivables and prepaid expenses | 41 | 325 | |||||||||
Fair value of foreign exchange forward contracts | Accrued expenses | (1,497 | ) | - | ||||||||
Total derivatives designated as hedging instruments | (1,456 | ) | $ | 325 | ||||||||
Gain or loss on the derivative instruments, which partially offset the foreign currency impact from the underlying exposures, reclassified from other comprehensive income (loss) to operating expenses for the years ended December 31, 2014 and 2013 were $ 717 and $ 2,995, respectively. | ||||||||||||
Non-designated hedges: | ||||||||||||
The Company also uses foreign currency forward contracts to mitigate variability in gains and losses generated from the re-measurement of certain monetary assets and liabilities denominated in foreign currencies. These derivatives do not qualify for special hedge accounting treatment. These derivatives are carried at fair value with changes recorded in financial income, net. Changes in the fair value of these derivatives are largely offset by re-measurement of the underlying assets and liabilities. Cash flows from such derivatives are classified as operating activities. The derivatives have maturities of approximately twelve months. During 2013 and 2014, the Company's transactions were $ 5,645 and $ 17,580, respectively. | ||||||||||||
OTHER_RECEIVABLES_AND_PREPAID_
OTHER RECEIVABLES AND PREPAID EXPENSES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES [Abstract] | |||||||||
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES | |||||||||
NOTE 6:- OTHER RECEIVABLES AND PREPAID EXPENSES | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Prepaid expenses | $ | 1,920 | $ | 5,815 | |||||
Government authorities | 1,918 | 968 | |||||||
Short-term lease deposits | 136 | 282 | |||||||
Foreign currency derivative contracts | 676 | 325 | |||||||
Loan to third-party (1) | 607 | - | |||||||
Grants receivable from the OCS | 41 | 94 | |||||||
Others | 85 | 162 | |||||||
$ | 5,383 | $ | 7,646 | ||||||
-1 | Represents a loan granted on January 1, 2014 to Optenet in the total amount of € 2,000, of which an amount of $ 1,215 is presented in non-current other assets as of December 31, 2014. The loan is being settled in equal payments in the amount of € 125 per quarter, and bears an annual interest rate of Eurobor + 5%. |
INVENTORIES
INVENTORIES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
INVENTORIES [Abstract] | |||||||||
INVENTORIES | NOTE 7:- INVENTORIES | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 1,796 | $ | 3,693 | |||||
Finished goods | 8,313 | 10,105 | |||||||
$ | 10,109 | $ | 13,798 | ||||||
As of December 31, 2014 and 2013, the finished products line item above includes deferral of the cost of goods sold for which revenue was not yet recognized in the amount of approximately | |||||||||
$ 1,336 and $ 3,436, respectively. | |||||||||
PROPERTY_AND_EQUIPMENT_NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
PROPERTY AND EQUIPMENT [Abstract] | ||||||||||
PROPERTY AND EQUIPMENT | NOTE 8:- PROPERTY AND EQUIPMENT, NET | |||||||||
December 31, | ||||||||||
2014 | 2013 | |||||||||
Cost: | ||||||||||
Lab equipment | $ | 11,366 | $ | 9,967 | ||||||
Computers and peripheral equipment | 18,200 | 17,405 | ||||||||
Office furniture and equipment | 847 | 675 | ||||||||
Leasehold improvements | 1,056 | 674 | ||||||||
31,469 | 28,721 | |||||||||
Accumulated depreciation: | ||||||||||
Lab equipment | 8,089 | 6,676 | ||||||||
Computers and peripheral equipment | 16,418 | 15,293 | ||||||||
Office furniture and equipment | 463 | 398 | ||||||||
Leasehold improvements | 542 | 480 | ||||||||
25,512 | 22,847 | |||||||||
Depreciated cost | $ | 5,957 | $ | 5,874 | ||||||
Depreciation expense for the years ended December 31, 2014, 2013 and 2012 was $ 3,308, $ 3,423 and $ 3,120, respectively. | ||||||||||
INTANGIBLE_ASSETS_NET
INTANGIBLE ASSETS, NET | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
INTANGIBLE ASSETS, NET [Abstract] | |||||||||||
INTANGIBLE ASSETS, NET | NOTE 9:- INTANGIBLE ASSETS, NET | ||||||||||
a. The following table shows the Company's intangible assets for the periods presented: | |||||||||||
Weighted average | December 31, | ||||||||||
remaining | |||||||||||
useful life | |||||||||||
2014 | 2013 | ||||||||||
Original Cost: | |||||||||||
Technology | 5.3 | $ | 10,725 | $ | 10,725 | ||||||
Backlog | 0.5 | 1,491 | 1,491 | ||||||||
Customer relationships | 1.5 | 899 | 899 | ||||||||
$ | 13,115 | $ | 13,115 | ||||||||
Accumulated amortization: | |||||||||||
Technology | 5.3 | $ | 3,592 | $ | 2,103 | ||||||
Backlog | 0.5 | 1,437 | 1,330 | ||||||||
Customer relationships | 1.5 | 537 | 275 | ||||||||
$ | 5,566 | $ | 3,708 | ||||||||
Amortized cost | $ | 7,549 | $ | 9,407 | |||||||
b. Amortization expense for the years ended December 31, 2014, 2013 and 2012 was $ 1,858, $ 2,915 and $ 1,947, respectively. | |||||||||||
c. Estimated amortization expense for the years ending: | |||||||||||
Year ending December 31, | |||||||||||
2015 | 1,772 | ||||||||||
2016 | 1,621 | ||||||||||
2017 | 1,489 | ||||||||||
2018 | 1,452 | ||||||||||
Thereafter | 1,215 | ||||||||||
Total | 7,549 | ||||||||||
OTHER_PAYABLES_AND_ACCRUED_EXP
OTHER PAYABLES AND ACCRUED EXPENSES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
OTHER PAYABLES AND ACCRUED EXPENSES [Abstract] | |||||||||
OTHER PAYABLES AND ACCRUED EXPENSES | NOTE 10:- OTHER PAYABLES AND ACCRUED EXPENSES | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Accrued expenses | $ | 3,241 | $ | 3,806 | |||||
Foreign currency derivative contracts | 1,575 | 61 | |||||||
Accrued taxes | 384 | 824 | |||||||
Advances from customers | 1,853 | 53 | |||||||
Others | 234 | 33 | |||||||
$ | 7,287 | $ | 4,777 | ||||||
COMMITMENTS_AND_CONTINGENT_LIA
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract] | ||||||
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 11:- COMMITMENTS AND CONTINGENT LIABILITIES | |||||
a. Royalties: | ||||||
The Company receives research and development grants from the OCS. Until the end of 2012, the Company was participating in programs sponsored by the Israeli Government for the support of research and development activities. As part of this program the Company is obligated to pay royalties to the OCS, amounting to 3.5% of the sales of the sponsored products, up to 100% of the grants received, linked to the U.S. dollar and for grants received after January 1, 1999 also bearing interest at the rate of LIBOR. The obligation to pay these royalties is contingent upon actual sales of products of the Company and in the absence of such sales no payment is required. | ||||||
During December 2012, the Company recorded a liability for the early payment of $ 15,886 due to settlement with the Israeli Office of Chief Scientist (OCS), representing the full balance of the contingent liability related to grants received (including interest), which was fully paid during 2013. Upon making this payment and additional $ 250 remaining balance, the Company eliminated all future royalty obligations related to its anticipated revenues. These expenses were included in the cost of revenues in the consolidated statement of comprehensive loss. | ||||||
For the years ended December 31, 2014, 2013 and 2012, the royalties expense paid and accrued, as part of the Company's cost of revenues, was $ 0, $ 250 and $ 17,703 respectively. | ||||||
From 2013, the Company is qualified to participate in an approved program with the OCS for companies with large research and development activities and a certain threshold of revenues. Under this program the Company is eligible to receive grants that do not require repayments. | ||||||
b. Lease commitments: | ||||||
In March 2013, the Company signed an agreement to rent offices for an average period of five years, starting July 2013. The total rental expenses are approximately $ 155 per month. | ||||||
The U.S. subsidiary has an operating lease for office facilities in Woburn, Massachusetts and in San Diego, California, the leases expire on August 31, 2019 and on April 30, 2018 respectively. The Company's subsidiaries maintain smaller offices in South Africa, China, Singapore, Japan, New Zealand, UK and various locations in Europe. | ||||||
In addition, the Company has operating lease agreements for its motor vehicles, which terminate in 2015 through 2016. | ||||||
Operating leases (offices and motor vehicles) expense for the years ended December 31, 2014, 2013 and 2012 was $ 3,155, $ 3,273 and $ 2,345, respectively. | ||||||
As of December 31, 2014, the aggregate future minimum lease obligations (offices and motor vehicles) under non-cancelable operating leases agreements were as follows: | ||||||
Year ending December 31, | ||||||
2015 | $ | 2,668 | ||||
2016 | 2,171 | |||||
2017 | 1,917 | |||||
2018 | 883 | |||||
Thereafter | 100 | |||||
Total | $ | 7,739 | ||||
c. Major subcontractor: | ||||||
The Company currently depends on one subcontractor to manufacture and provide hardware, warranty and support for its traffic management systems. If the subcontractor experiences delays, disruptions, quality control problems or a loss in capacity, shipments of products may be delayed and the Company's ability to deliver products could be materially adversely affected. Certain hardware components for the Company's products come from single or limited sources, and the Company could lose sales if these sources fail to satisfy its supply requirements. In the event that the Company terminates its business connection with the subcontractor, it will have to compensate the subcontractor for certain inventory costs, as specified in the agreement with the subcontractor. | ||||||
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended | |||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||
SHAREHOLDERS' EQUITY [Abstract] | ||||||||||||||||||||||||||||||||||
SHAREHOLDERS' EQUITY | NOTE 12:- SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||||||||
a. Company's shares: | ||||||||||||||||||||||||||||||||||
As of December 31, 2014, the Company's authorized share capital consists of NIS 20,000,000 divided into 200,000,000 Ordinary Shares, par value NIS 0.1 per share. Ordinary Shares confer on their holders the right to receive notice to participate and vote in general meetings of the Company, the right to a share in the excess of assets upon liquidation of the Company, and the right to receive dividends, if declared. | ||||||||||||||||||||||||||||||||||
b. Stock option plan: | ||||||||||||||||||||||||||||||||||
A summary of the Company's stock option activity, pertaining to its option plans for employees and related information is as follows: | ||||||||||||||||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||
Number | Weighted | Number | Weighted | Number | Weighted | |||||||||||||||||||||||||||||
of shares | average | average | ||||||||||||||||||||||||||||||||
upon | average | of shares | of shares | exercise | ||||||||||||||||||||||||||||||
exercise | exercise price | upon | exercise | upon | price | |||||||||||||||||||||||||||||
exercise | price | exercise | ||||||||||||||||||||||||||||||||
Outstanding at beginning of year | 2,875,003 | $ | 12.02 | 2,709,910 | $ | 11.03 | 3,164,090 | $ | 5.9 | |||||||||||||||||||||||||
Granted | 572,533 | $ | 11.93 | 749,255 | $ | 11.74 | 1,301,455 | $ | 8.11 | |||||||||||||||||||||||||
Forfeited | (562,787 | ) | $ | 17.02 | (254,290 | ) | $ | 11.64 | (158,718 | ) | $ | 12.15 | ||||||||||||||||||||||
Exercised | (353,368 | ) | $ | 4.18 | (329,872 | ) | $ | 2.83 | (1,596,917 | ) | $ | 3.72 | ||||||||||||||||||||||
Outstanding at end of year | 2,531,381 | $ | 11.99 | 2,875,003 | $ | 12.02 | 2,709,910 | $ | 11.03 | |||||||||||||||||||||||||
Exercisable at end of year | 1,440,143 | $ | 11.75 | 1,364,620 | $ | 10.38 | 819,869 | $ | 6.62 | |||||||||||||||||||||||||
Vested and Expected to Vest | 1,950,116 | $ | 11.97 | 2,117,348 | $ | 11.65 | 1,686,435 | $ | 9.86 | |||||||||||||||||||||||||
The aggregate intrinsic value represents the total intrinsic value (the difference between the Company's closing stock price on the last trading day of the fiscal year 2014 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2014. This amount may change based on the fair market value of the Company's stock. The total intrinsic value of options outstanding at December 31, 2014, was $ 4,085. The total intrinsic value of exercisable options at December 31, 2014 was approximately $ 2,983. The total intrinsic value of options vested and expected to vest at December 31, 2014 was approximately $ 3,436. | ||||||||||||||||||||||||||||||||||
The total intrinsic value of options exercised during the year ended December 31, 2014 was approximately $ 1,901. The number of options vested during the year ended December 31, 2014 was 428,828. The weighted-average remaining contractual life of the outstanding options as of December 31, 2014 is 7.26 years. The weighted-average remaining contractual life of exercisable options as of December 31, 2014 is 6.07 years. | ||||||||||||||||||||||||||||||||||
The options outstanding as of December 31, 2014, have been classified by exercise price, as follows: | ||||||||||||||||||||||||||||||||||
Exercise price | Shares upon | Weighted | Shares upon | |||||||||||||||||||||||||||||||
average | exercise of | |||||||||||||||||||||||||||||||||
exercise of | ||||||||||||||||||||||||||||||||||
options | remaining | options | ||||||||||||||||||||||||||||||||
outstanding as | contractual life | exercisable as of | ||||||||||||||||||||||||||||||||
of December 31, | December 31, | |||||||||||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||||||||
Years | ||||||||||||||||||||||||||||||||||
$ 23.31-27.58 | 214,819 | 6.43 | 143,636 | |||||||||||||||||||||||||||||||
$ 16.20-17.07 | 335,241 | 6.84 | 209,283 | |||||||||||||||||||||||||||||||
$ 10.16-15.43 | 1,287,222 | 8.29 | 513,493 | |||||||||||||||||||||||||||||||
$ 5.25-9.25 | 214,958 | 5.59 | 214,958 | |||||||||||||||||||||||||||||||
$ 0.03-4.95 | 479,141 | 5.9 | 358,773 | |||||||||||||||||||||||||||||||
2,531,381 | 1,440,143 | |||||||||||||||||||||||||||||||||
The following provides a summary of the restricted stock unit activity for the Company for the year ended December 31, 2014: | ||||||||||||||||||||||||||||||||||
Number of | Weighted- | |||||||||||||||||||||||||||||||||
Shares | Average | |||||||||||||||||||||||||||||||||
Underlying | Grant Date | |||||||||||||||||||||||||||||||||
Outstanding | Fair Value | |||||||||||||||||||||||||||||||||
Restricted Stock | ||||||||||||||||||||||||||||||||||
Units | ||||||||||||||||||||||||||||||||||
Outstanding as of January 1, 2014 | 14,208 | $ | 13.57 | |||||||||||||||||||||||||||||||
Granted | 561,873 | $ | 12.96 | |||||||||||||||||||||||||||||||
Vested | (89,437 | ) | $ | 14.68 | ||||||||||||||||||||||||||||||
Forfeited | (41,380 | ) | $ | 15.13 | ||||||||||||||||||||||||||||||
Unvested as of December 31, 2014 | 445,264 | $ | 12.43 | |||||||||||||||||||||||||||||||
As of December 31, 2014, $ 9,312 and $ 4,500 unrecognized compensation cost related to stock options and RSUs respectively is expected to be recognized over a weighted average vesting period of 2.13 years. | ||||||||||||||||||||||||||||||||||
The Company has two option plans under which outstanding options as of December 31, 2014, are as follows: (i) under the 2003 option plan, the outstanding options are exercisable for 2,183 Ordinary shares, and (ii) under the 2006 option plan, the outstanding options and RSUs are exercisable for 2,529,198 and 445,264 Ordinary shares respectively. | ||||||||||||||||||||||||||||||||||
Under the terms of the above option plans, options may be granted to employees, officers, directors and various service providers of the Company and its subsidiaries. The options generally become exercisable quarterly over a four-year period, commencing one year after date of the grant, subject to the continued employment of the employee. The options generally expire no later than ten years from the date of the grant. The exercise price of the options at the date of grant under the plans may not be less than the nominal value of the shares into which such options are exercised, any options, which are forfeited or cancelled before expiration, become available for future grants. As of December 31, 2014, 209,833 Ordinary shares are available for future issuance under the option plans. | ||||||||||||||||||||||||||||||||||
In 2014, and 2013 the Company granted 8,333 and 60,130 options respectively to Israeli employees with an exercise price of $ 0.03, which was lower than the trading price of the Company's Ordinary Shares quoted on the NASDAQ Global Select Market on the date of the grants. | ||||||||||||||||||||||||||||||||||
In addition to granting stock options, the Company granted 561,873 and 14,969 RSUs in 2014, and 2013 respectively under the 2006 option plan. RSUs vest over a four year period subject to the continued employment of the employee. RSUs that are cancelled or forfeited become available for future grants. | ||||||||||||||||||||||||||||||||||
TAXES_ON_INCOME
TAXES ON INCOME | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
TAXES ON INCOME [Abstract] | ||||||||||||||||||
TAXES ON INCOME | NOTE 13:- TAXES ON INCOME | |||||||||||||||||
a. Corporate tax rates: | ||||||||||||||||||
The Israeli corporate tax rate was 25% in 2012 and 2013. | ||||||||||||||||||
On July 30, 2013, the Israeli Parliament passed a law, which, among other things, was designated to increase the tax levy (the "New Law"). The New Law increases the Israeli corporate tax rate commencing in 2014 from 25% to 26.5%. However, the effective tax rate payable by a company that derives income from an Approved Enterprise, a Preferred Enterprise or a Beneficiary Enterprise (as discussed below) may be considerably less. Capital gains derived by an Israeli company are generally subject to the prevailing corporate tax rate. | ||||||||||||||||||
b. Foreign Exchange Regulations: | ||||||||||||||||||
Commencing in taxable year 2013, the Company has elected to measure its taxable income and file its tax return under the Israeli Income Foreign Tax Regulations. Under the Foreign Exchange Regulations, an Israeli company must calculate its tax liability in U.S. Dollars according to certain orders. The tax liability, as calculated in U.S. Dollars is translated into NIS according to the exchange rate as of December 31st of each year. | ||||||||||||||||||
c. Tax benefits under Israel's law for the Encouragement of Capital Investments, 1959 ("the Law"): | ||||||||||||||||||
In 1998, the production facilities of the Company related to its computational technologies were granted the status of an "Approved Enterprise" under the Law. In 2004, expansion program was granted the status of an "Approved Enterprise".under the Law. In 2004, expansion program was ranted the status of "Approved Enterprise". According to the provisions of the Law, the Company has elected the alternative package of benefits and has waived Government grants in return for tax benefits. The period of tax benefits, detailed above, is limited to the earlier of 12 years from the commencement of production, or 14 years from the approval date. | ||||||||||||||||||
According to the provisions of the Law, the Company's income is tax-exempt for a period of two years commencing with the year it first earns taxable income, and subject to corporate taxes at the reduced rate of 10% to 25%, for an additional period of five to eight years depending upon the level of foreign ownership of the Company. As of December 31, 2014, the benefit period of tax benefit is expected to be commenced, since the Company expects to profitable for tax purposes (tax-exempt for the first two years). | ||||||||||||||||||
The Law was significantly amended effective April 1, 2005 ("the Amendment"). The Amendment includes revisions to the criteria for investments qualified to receive tax benefits as a Beneficiary Enterprise and among other things, simplifies the approval process. The Amendment applies to new investment programs. Therefore, investment programs commencing after December 31, 2004, do not affect the approved programs of the Company. | ||||||||||||||||||
In addition, the Law provides that terms and benefits included in any letter of approval already granted will remain subject to the provisions of the Law as they were on the date of such approval. Therefore, the Company's existing Approved Enterprise will generally not be subject to the provisions of the Amendment. The Company elected 2006 and 2009 as "year of election" under the Amendment. | ||||||||||||||||||
The entitlement to the above benefits is contingent upon the fulfillment of the conditions stipulated in the Law, regulations published there under and the criteria set forth in the specific letters of approval. In the event of failure to comply with these conditions, the benefits may be canceled and the Company may be required to refund the amount of the benefits, in whole or in part, including interest and linked to changes in the Israeli CPI. As of December 31, 2014, management believes that the Company is meeting the aforementioned conditions. | ||||||||||||||||||
If the Company pays a dividend out of income derived from the Approved and Beneficiary Enterprise during the tax exemption period, it will be subject to corporate tax in respect of the gross amount distributed, including any taxes thereon, at the rate which would have been applicable had it not enjoyed the alternative benefits, generally 10%-25%, depending on the percentage of the Company's Ordinary shares held by foreign shareholders. The dividend recipient is subject to withholding tax at the rate of 15% applicable to dividends from approved enterprises, if the dividend is distributed during the tax exemption period or within twelve years thereafter. The Company currently has no plans to distribute dividends and intends to retain future earnings to finance the development of its business. | ||||||||||||||||||
Income from sources other than the "Approved and Beneficiary Enterprise" during the benefit period will be subject to tax at the regular corporate tax rate. | ||||||||||||||||||
As of January 1, 2011 new legislation amending to the Investment Law came into effect (the "2011 Amendment"). The 2011 Amendment introduced a new status of "Preferred Company" and "Preferred Enterprise", replacing the existed status of "Beneficiary Company" and "Beneficiary Enterprise". Similarly to "Beneficiary Company", a Preferred Company is an industrial company owning a Preferred Enterprise which meets certain conditions (including a minimum threshold of 25% export). However, under this new legislation the requirement for a minimum investment in productive assets was cancelled. | ||||||||||||||||||
Under the 2011 Amendment, a uniform corporate tax rate will apply to all qualifying income of the Preferred Company, as opposed to the former law, which was limited to income from the Approved Enterprises and Beneficiary Enterprise during the benefits period. The uniform corporate tax rate will be 7% in areas in Israel designated as Development Zone A and 12.5% elsewhere in Israel during 2013, 9% in development Zone A and 16% elsewhere in Israel, respectively, in 2014. The Company operates outside of Zone A and is subject to 16% tax rate in 2014. | ||||||||||||||||||
A dividend distributed from income which is attributed to a Preferred Enterprise/Special Preferred Enterprise will be subject to withholding tax at source at the following rates: (i) Israeli resident corporation – 0%, (ii) Israeli resident individual – 15% in 2013 and 20% as of 2014 (iii) non-Israeli resident - 15% in 2013 and 20% as of 2014 subject to a reduced tax rate under the provisions of an applicable double tax treaty. | ||||||||||||||||||
Under the transition provisions of the new legislation, the Company may decide to irrevocably implement the new law while waiving benefits provided under the current law or to remain subject to the current law. | ||||||||||||||||||
e. Tax benefits under the law for the Encouragement of Industry (Taxes), 1969 (the "Encouragement Law"): | ||||||||||||||||||
The Encouragement Law, provides several tax benefits for industrial companies. An industrial company is defined as a company resident in Israel, at least 90% of the income of which in a given tax year exclusive of income from specified Government loans, capital gains, interest and dividends, is derived from an industrial enterprise owned by it. An industrial enterprise is defined as an enterprise whose major activity in a given tax year is industrial production activity. | ||||||||||||||||||
Management believes that the Company is currently qualified as an "industrial company" under the Encouragement Law and as such, enjoys tax benefits, including: (1) deduction of purchase of know-how and patents and/or right to use a patent over an eight-year period; (2) the right to elect, under specified conditions, to file a consolidated tax return with additional related Israeli industrial companies and an industrial holding company; (3) accelerated depreciation rates on equipment and buildings; and (4) expenses related to a public offering on the Tel-Aviv Stock Exchange and on recognized stock markets outside of Israel, are deductible in equal amounts over three years. | ||||||||||||||||||
Eligibility for benefits under the Encouragement Law is not subject to receipt of prior approval from any Governmental authority. No assurance can be given that the Israeli tax authorities will agree that the Company qualifies, or, if the Company qualifies, then the Company will continue to qualify as an industrial company or that the benefits described above will be available to the Company in the future. | ||||||||||||||||||
f. Pre-tax income (loss) is comprised as follows: | ||||||||||||||||||
Year ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Domestic | $ | (3,792 | ) | $ | (6,556 | ) | $ | (2,372 | ) | |||||||||
Foreign | 1,345 | 219 | (5,292 | ) | ||||||||||||||
$ | (2,447 | ) | $ | (6,337 | ) | $ | (7,664 | ) | ||||||||||
g. A reconciliation of the theoretical tax expenses (benefit), assuming all income is taxed at the statutory tax rate applicable to the income of the Company and the actual tax expenses (benefit) is as follows: | ||||||||||||||||||
Year ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Loss before taxes on income | $ | (2,447 | ) | $ | (6,337 | ) | $ | (7,664 | ) | |||||||||
Theoretical tax expense computed at the Israeli statutory tax rate (26.5%, 25% and 25% for the years 2014, 2013 and 2012, respectively) | $ | (649 | ) | $ | (1,584 | ) | $ | (1,916 | ) | |||||||||
Changes in valuation allowance | (1,279 | ) | 931 | (1,554 | ) | |||||||||||||
Increase (decrease) in losses and temporary differences due to change in Israeli corporate " and Approved Enterprise" tax | (49 | ) | 3,056 | (7,073 | ) | |||||||||||||
Increase (decrease) in valuation allowance related to losses and temporary differences due to change in Israeli corporate " and Approved Enterprise" tax | 49 | (3,056 | ) | 7,073 | ||||||||||||||
Taxes with respect to prior years | - | - | 2 | |||||||||||||||
Increase in deferred tax assets related to losses and temporary differences due to changes in tax rates and different basis of measurement | 562 | (594 | ) | - | ||||||||||||||
Non-deductible expenses and other | (415 | ) | (223 | ) | 1,699 | |||||||||||||
Non-deductible share-based compensation expense | 1,831 | 1,590 | 833 | |||||||||||||||
Exchange rate differences | - | - | 10 | |||||||||||||||
Actual tax expense (benefit) | $ | 50 | $ | 120 | $ | (926 | ) | |||||||||||
h. Income tax expense (tax benefit) is comprised as follows: | ||||||||||||||||||
Year ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Current taxes (benefit) | $ | 612 | $ | 408 | $ | (2 | ) | |||||||||||
Deferred taxes (benefit) | (562 | ) | (288 | ) | (926 | ) | ||||||||||||
Taxes in respect of prior years | - | - | 2 | |||||||||||||||
$ | 50 | $ | 120 | $ | (926 | ) | ||||||||||||
i. Net operating losses carry forward: | ||||||||||||||||||
The Company has accumulated net operating losses for tax purposes as of December 31, 2014, in the amount of approximately $ 39,000, which may be carried forward and offset against taxable income in the future for an indefinite period. In December 2014, the Israeli Tax Authorities approved a final tax ruling with respect to the Company's acquisition of Oversi. According to the ruling, the net operating losses may be offset against taxable income annually with a limitation of up to 14% of the total accumulated losses but no more than 50% of the Company's taxable income. In addition, the Company has accumulated capital losses for tax purposes as of December 31, 2014, in the amount of approximately $ 27,316, which may be carried forward and offset against taxable capital gains in the future for an indefinite period, but are limited as stated above. Management currently believes that since the Company has a history of losses, and uncertainty with respect to future taxable income, it is more likely than not that some of the deferred tax assets regarding the loss carry forwards will not be utilized in the foreseeable future. Thus, a valuation allowance was provided to reduce deferred tax assets to their realizable value. | ||||||||||||||||||
The U.S. subsidiary has accumulated losses for U.S. federal income tax return purposes of approximately $ 2,778. The federal accumulated losses for tax purposes expire between 2024 and 2032. The state accumulated losses for tax purposes begin to expire in 2014. An amount of $ 1,519 of the net operating loss carry-forwards relates to excess tax deductions from stock options. | ||||||||||||||||||
Such losses are subject to limitations of Internal Revenue Code, Section 382, which in general provides that utilization of net operating losses is subject to an annual limitation if an ownership change results from transactions increasing the ownership of certain shareholders or public groups in the stock of a corporation by more than 50 percentage points over a three-year period. The annual limitations may result in the expiration of losses before utilization. | ||||||||||||||||||
The European subsidiary is subject to French income taxes and has a net operating loss carry forward amounting as of December 31, 2014 to approximately $ 4,441, which may be carried forward and offset against taxable gains in the future for an indefinite period. | ||||||||||||||||||
j. 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. Significant components of the Company's deferred income taxes are as follows: | ||||||||||||||||||
December 31, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Deferred tax assets: | ||||||||||||||||||
Operating and capital loss carryforwards | $ | 13,103 | $ | 14,567 | ||||||||||||||
Reserves and allowances | 1,183 | 785 | ||||||||||||||||
Deferred tax asset before valuation allowance | 14,286 | 15,352 | ||||||||||||||||
Valuation allowance | (11,408 | ) | (12,736 | ) | ||||||||||||||
Net deferred tax asset | 2,878 | 2,616 | ||||||||||||||||
Deferred tax liability | | (309 | ) | (609 | ) | |||||||||||||
Net deferred tax asset | $ | 2,569 | $ | 2,007 | ||||||||||||||
k. As of December 31, 2014 and 2013, the provision in respect of ASC 740 was $ 279 and $ 174, respectively. The accrued interest and penalties related to the provision in income taxes is immaterial. | ||||||||||||||||||
The Company conducts business globally and, as a result, the Company or one or more of its subsidiaries file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world, including such major jurisdictions as Israel, France, and the United States. With few exceptions, the Company is no longer subject to Israeli final tax assessment through the year 2010 and the European and U.S. subsidiaries have final tax assessments through 2010. | ||||||||||||||||||
GEOGRAPHIC_INFORMATION
GEOGRAPHIC INFORMATION | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
GEOGRAPHIC INFORMATION [Abstract] | |||||||||||||||
GEOGRAPHIC INFORMATION | NOTE 14:- GEOGRAPHIC INFORMATION | ||||||||||||||
Allot operates in a single reportable segment. Revenues are based on the location of the Company's channel partners which are considered as end customers, as well as direct customers of the Company: | |||||||||||||||
Year ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Europe | $ | 41,238 | $ | 35,143 | $ | 39,655 | |||||||||
Asia and Oceania | 41,990 | 29,909 | 21,953 | ||||||||||||
Middle East and Africa | 15,352 | 4,820 | 10,565 | ||||||||||||
United States of America | 15,307 | 21,350 | 24,674 | ||||||||||||
Americas (excluding United States of America) | 3,299 | 5,323 | 7,905 | ||||||||||||
$ | 117,186 | $ | 96,545 | $ | 104,752 | ||||||||||
The following are the Company's major customers: | |||||||||||||||
Year ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Customer A | 27 | % | 17 | % | 14 | % | |||||||||
Customer B | 17 | % | 17 | % | - | ||||||||||
Customer C | - | 11 | % | - | |||||||||||
44 | % | 45 | % | 14 | % | ||||||||||
The following presents total long-lived assets as of December 31, 2014 and 2013: | |||||||||||||||
December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||
Long-lived assets: | |||||||||||||||
Israel | $ | 5,603 | $ | 4,680 | |||||||||||
United States of America | 181 | 987 | |||||||||||||
Other | 173 | 207 | |||||||||||||
$ | 5,957 | $ | 5,874 | ||||||||||||
FINANCIAL_INCOME_NET
FINANCIAL INCOME, NET | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
FINANCIAL INCOME, NET [Abstract] | ||||||||||||||
FINANCIAL INCOME, NET | NOTE 15:- FINANCIAL INCOME, NET | |||||||||||||
Year ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Financial income: | ||||||||||||||
Interest income | $ | 1,900 | $ | 1,358 | $ | 1,746 | ||||||||
Financial expenses: | ||||||||||||||
Exchange rate differences and other | 174 | 47 | 176 | |||||||||||
Amortization/accretion of premium/discount on marketable securities, net | 1,066 | 584 | 212 | |||||||||||
$ | 660 | $ | 727 | $ | 1,358 | |||||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
EARNINGS PER SHARE [Abstract] | |||||||||||||
EARNINGS PER SHARE | NOTE 16:- EARNINGS PER SHARE | ||||||||||||
The following table sets forth the computation of basic and diluted net earnings (loss) per share: | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Numerator: | |||||||||||||
Net loss | $ | (2,497 | ) | $ | (6,457 | ) | $ | (6,738 | ) | ||||
Denominator: | |||||||||||||
Weighted average number of shares outstanding used in computing basic net earnings per share | 33,143,168 | 32,680,766 | 31,959,921 | ||||||||||
Dilutive effect: stock options | - | - | - | ||||||||||
Total weighted average number of shares used in computing diluted net earnings per share | 33,143,168 | 32,680,766 | 31,959,921 | ||||||||||
Basic and diluted net loss per share | $ | (0.08 | ) | $ | (0.20 | ) | $ | (0.21 | ) | ||||
The following numbers of shares were excluded from the computation of diluted net less per ordinary share for the periods presented because including them would have had an anti-dilutive effect: | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Ordinary shares | 2,300,425 | 2,018,751 | 1,009,012 | ||||||||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2014 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | NOTE 17:- SUBSEQUENT EVENTS |
In February 2015, the Company signed an Asset Purchase Agreement to acquire certain assets of Optenet, SA. ("Optenet") a developer of security solutions for internet providers and enterprises. Under the terms of the Asset Purchase Agreement, the Company will acquire the assets of Optenet SA for approximately $6.7 million (€5.9 million) in cash, plus a deferred and contingent purchase price. The deferred purchase price consists of $5.7 million (€5 million) in cash to be paid over two years following the acquisition. In addition, there will be a performance-based earn-out over a period of five years. The performance-based earn-out is capped at approximately $25.6 million (€22.5 million) and is contingent upon reaching certain revenues threshold from sale of Optenet products. The transaction closing date occurred on March 23, 2015. | |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||||||||||||||||
Use of estimates | a. Use of estimates: | |||||||||||||||
The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||||||||||
Financial statements in U.S. dollars | b. Financial statements in U.S. dollars: | |||||||||||||||
The majority of the revenues of the Company and its subsidiaries are generated in U.S. dollars ("dollar") or linked to the dollar. In addition, a major portion of the Company's and certain of its subsidiaries' costs are incurred or determined in dollars. The Company's management believes that the dollar is the currency of the primary economic environment in which the Company and its subsidiaries operate. Thus, the functional and reporting currency of the Company and its subsidiaries is the dollar. | ||||||||||||||||
Accordingly, monetary accounts maintained in currencies other than the dollar are remeasured into U.S. dollars in accordance with Accounting Standards Codification No. 830, "Foreign Currency Matters" ("ASC No. 830"). All transactions gains and losses from the remeasurement of monetary balance sheet items are reflected in the statements of operations as financial income or expenses as appropriate. | ||||||||||||||||
Principles of consolidation | c. Principles of consolidation: | |||||||||||||||
The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions have been eliminated upon consolidation. | ||||||||||||||||
Cash and cash equivalents | d. Cash and cash equivalents: | |||||||||||||||
The Company considers all unrestricted highly liquid investments which are readily convertible into cash, with maturity of three months or less at the date of acquisition, to be cash equivalents. | ||||||||||||||||
Short-term bank deposits | e. Short-term bank deposits: | |||||||||||||||
Short-term bank deposits are deposits with maturities of more than three months but less than one year at the balance sheet date. The deposits are in dollars, New Israeli Shekels ("NIS") and Euros, and bear interest at annual weighted average rate of 0.56% and 0.51% at December 31, 2014 and 2013 respectively. | ||||||||||||||||
Marketable securities | f. Marketable securities: | |||||||||||||||
The Company accounts for investments in marketable securities in accordance with ASC 320, "Investments - Debt and Equity Securities". Management determines the appropriate classification of its investments in debt securities at the time of purchase and re-evaluates such determinations at each balance sheet date. | ||||||||||||||||
Marketable securities classified as "available-for-sale" are carried at fair value, based on quoted market prices. Unrealized gains and losses are reported in a separate component of shareholders' equity in accumulated other comprehensive income (loss). Gains and losses are recognized when realized, on a specific identification basis, in the Company's consolidated statements of comprehensive loss. | ||||||||||||||||
The Company's securities are reviewed for impairment in accordance with ASC 320-10-35. If such assets are considered to be impaired, the impairment charge is recognized in earnings when a decline in the fair value of its investments below the cost basis is judged to be Other-Than-Temporary Impairment (OTTI). Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Company's intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. Based on the above factors, the Company concluded that unrealized losses on its available-for-sale securities, for the years ended 2014, 2013 and 2012, were not OTTI. | ||||||||||||||||
Inventories | g. Inventories: | |||||||||||||||
Inventories are stated at the lower of cost or market value. Inventory write-offs are provided to cover risks arising primarily from end of life products and from slow-moving items, technological obsolescence, and excess inventory. Inventory write-offs as of December 31, 2014, 2013 and 2012 totaled $ 4,560, $ 1,835 and $ 1,385, respectively, and was recorded in cost of revenues for products. | ||||||||||||||||
Cost is determined as follows: | ||||||||||||||||
Raw materials and finished goods – weighted average cost method | ||||||||||||||||
Property and equipment, net | h. Property and equipment, net: | |||||||||||||||
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets at the following annual rates: | ||||||||||||||||
% | ||||||||||||||||
Lab equipment | 25 - 33 | |||||||||||||||
Computers and peripheral equipment | 15 - 33 | |||||||||||||||
Office furniture | 15-Jun | |||||||||||||||
Leasehold improvements | By the shorter of term of the lease or the useful life of the asset | |||||||||||||||
Goodwill impairment | i. Goodwill impairment: | |||||||||||||||
Goodwill represents the excess of the purchase price over the fair value of net assets of purchased businesses. Under Accounting Standards Codification No. 350, "Intangibles-Goodwill and Other" ("ASC No. 350"), goodwill is not amortized, but rather subject to an annual impairment test, or more often if there are indicators of impairment present. In accordance with ASC No. 350 the Company performs an annual impairment test at December 31 each year. The first step, identifying a potential impairment, compares the fair value of the reporting unit with its carrying amount. If the carrying amount exceeds its fair value, the second step would need to be performed; otherwise, no further step is required. The second step, measuring the impairment loss, compares the implied fair value of the goodwill with the carrying amount of the goodwill. Any excess of the goodwill carrying amount over the applied fair value is recognized as an impairment loss, and the carrying value of goodwill is written down to fair value. | ||||||||||||||||
The Company operates in a single reportable unit. The Company has performed an annual impairment analysis as of December 31, 2014 and determined that the carrying value of the reporting unit was less than the fair value of the reporting unit. Fair value is determined using market capitalization. During years 2014, 2013 and 2012 no impairment losses were recorded. | ||||||||||||||||
Impairment of long lived assets and intangible assets subject to amortization | j. Impairment of long lived assets and intangible assets subject to amortization: | |||||||||||||||
Property and equipment and intangible assets subject to amortization are reviewed for impairment in accordance with ASC No. 360, "Accounting for the Impairment or Disposal of Long-Lived Assets," whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets 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. | ||||||||||||||||
Intangible assets acquired in a business combination are recorded at fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets that are not considered to have an indefinite useful life are amortized over their estimated useful lives. Some of the acquired intangible assets are amortized over their estimated useful lives in proportion to the economic benefits realized. This accounting policy results in accelerated amortization of such customer relationships as compared to the straight-line method. All other intangible assets are amortized over their estimated useful lives on a straight-line basis. | ||||||||||||||||
During 2014, 2013 and 2012, no impairment losses were recorded. | ||||||||||||||||
Revenue recognition | k. Revenue recognition: | |||||||||||||||
The Company generates revenues mainly from selling its products along with related maintenance and support services. At times, these arrangements may also include professional services, such as installation services or training. The Company generally sells its products through resellers, distributors, OEMs and system integrators, all of whom are considered end-users. | ||||||||||||||||
Revenues from product sales are recognized when persuasive evidence of an agreement exists, title and risk of loss have transferred, no significant performance obligations remain, product payment is not contingent upon performance of installation or service obligations, the fee is fixed or determinable and collectability is probable. In instances where final acceptance of the product or service is specified by the customer, revenue recognition is deferred until all acceptance criteria have been met. | ||||||||||||||||
Maintenance and support related revenues included in multiple element arrangements are deferred and recognized on a straight-line basis over the term of the applicable maintenance and support agreement. Other services are recognized upon the completion of installation or when the service is provided. In instances where the services provided in a multiple element arrangement are considered essential to the functionality of the product and payment of the product is contingent upon performance of the services, the sales of the products and services would be considered one unit of accounting. | ||||||||||||||||
Tangible products containing software components and non-software components that function together to deliver the tangible product's essential functionality is no longer within the scope of the software revenue guidance in Subtopic 985-605 of the Codification. Accordingly, the Company was considered outside the scope of Subtopic 985-605. Pursuant to the guidance of ASU 2009-13, "Multiple-Deliverable Revenue Arrangements, (amendments to ASC Topic 605, Revenue Recognition)" (ASU 2009-13) and ASU 2009-14, when a sales arrangement contains multiple elements, such as products and services, the Company allocates revenues to each element based on a selling price hierarchy. The selling price for a deliverable is based on VSOE if available, third party evidence ("TPE") if VSOE is not available, or estimated selling price ("ESP") if neither VSOE nor TPE is available. In multiple element arrangements, revenues are allocated to each separate unit of accounting for each of the deliverables using the relative selling prices of each of the deliverables in the arrangement based on the aforementioned selling price hierarchy. | ||||||||||||||||
Revenues arrangements with multiple deliverables are allocated using the relative selling price method. The Company determines the best estimated selling price (“BESP”) in multiple elements arrangements as follows: | ||||||||||||||||
For the products the Company determine the “BESP” – it is based on management ESP by reviewing historical transactions and considering multiple other factors, including but not limited to, pricing practices including discounting, and competition. | ||||||||||||||||
For the maintenance and support under the pricing policy, the Company determines the ESP in multiple-element arrangements based on reviewing historical transactions, and considering several other external and internal factors including, but not limited to, pricing practices including discounting and competition. | ||||||||||||||||
For the year ended December 31, 2014, 2013 and 2012, for maintenance and support, the Company determined the selling price based on VSOE of the price charged based on standalone sales (renewals) of such elements using a consistent percentage of the Company's product price lists in the same territories. | ||||||||||||||||
Deferred revenues are classified as short and long term based on their contractual term and recognized as revenues at the time the respective elements are provided | ||||||||||||||||
The Company records a provision for estimated product returns and stock rotation based on its experience with historical product returns, stock rotations and other known factors. Such provisions amounted to $ 1,147 and $ 892 as of December 31, 2014 and 2013, respectively. | ||||||||||||||||
Advertising expenses | l. Advertising expenses: | |||||||||||||||
Advertising expenses are charged to the statement of comprehensive loss, as incurred. Advertising expenses for the years ended December 31, 2014, 2013 and 2012 amounted to $ 1,131, $ 973 and $ 1,002, respectively. | ||||||||||||||||
Research and development costs | m. Research and development costs: | |||||||||||||||
Accounting Standards Codification No. 985-20, 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 a working model and the point at which the products are ready for general release. Therefore, research and development costs are charged to the consolidated statement of comprehensive loss as incurred. | ||||||||||||||||
Severance pay | n. Severance pay: | |||||||||||||||
The liability in Israel for substantially all of the Company`s employees in respect of severance pay liability is calculated in accordance with Section 14 of the Severance Pay Law -1963 (herein- "Section 14"). Section 14 states that Company's contributions for severance pay shall be in line of severance compensation and upon release of the policy to the employee, no additional obligations shall be conducted between the parties regarding the matter of severance pay and no additional payments shall be made by the Company to the employee. | ||||||||||||||||
Furthermore, the related obligation and amounts deposited on behalf of such obligation under Section 14, are not stated on the balance sheet, because pursuant to current ruling, they are legally released from obligation to employees once the deposits have been paid. | ||||||||||||||||
There are a limited number of employees in Israel, for whom the Company is liable for severance pay. The Company's liability for severance pay for its Israeli employees was calculated pursuant to Section 14, based on the most recent monthly salary of its Israeli employees multiplied by the number of years of employment as of the balance sheet date for such employees. | ||||||||||||||||
The Company's liability was partly provided by monthly deposits with severance pay funds and insurance policies and the remainder by an accrual. | ||||||||||||||||
Severance expense for the years ended December 31, 2014, 2013 and 2012, amounted to | ||||||||||||||||
$ 2,092, $ 2,070 and $ 1,486, respectively. | ||||||||||||||||
Accounting for stock-based compensation | o. Accounting for stock-based compensation: | |||||||||||||||
The Company accounts for stock based compensation in accordance with Accounting Standards Codification No. 718, "Compensation - Stock Compensation" ("ASC No. 718") that requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. 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 statement of operations. | ||||||||||||||||
ASC No. 718 requires forfeitures to be estimated at the time of the grant and revised in subsequent periods if actual forfeitures differ from those estimates. | ||||||||||||||||
The following table sets forth the total stock-based compensation expense resulting from stock options and RSUs granted to employees included in the consolidated statements of comprehensive loss, for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||
Year ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Cost of revenues | $ | 353 | $ | 368 | $ | 222 | ||||||||||
Research and development | 1,919 | 1,666 | 1,186 | |||||||||||||
Sales and marketing | 3,322 | 3,106 | 2,060 | |||||||||||||
General and administrative | 2,501 | 2,591 | 1,349 | |||||||||||||
Total stock-based compensation expense | $ | 8,095 | $ | 7,731 | $ | 4,817 | ||||||||||
The Company selected the binomial option pricing model as the most appropriate fair value method for its stock-based compensation awards with the following assumptions for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||
Year ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Suboptimal exercise multiple | 3 | 3 | 2.5-3.5 | |||||||||||||
Risk free interest rate | 0.1%-2.73% | 0.1%-2.77% | 0.15%-1.39% | |||||||||||||
Volatility | 44%-60% | 53%-63% | 51%-66% | |||||||||||||
Dividend yield | 0% | 0% | 0% | |||||||||||||
The expected annual post-vesting and pre-vesting forfeiture rates affects the number of exercisable options. Based on the Company's historical experience, the annual post-vesting and pre-vesting forfeiture rates in 2014, 2013, and 2012 are 0%-5.7%. | ||||||||||||||||
The computations of expected volatility and suboptimal exercise multiple are based on the average of the Company's realized historical stock price volatility based on market capitalization and type of technology platform. The computation of the suboptimal exercise multiple and the forfeiture rates are based on the grantees expected exercise prior and post vesting termination behavior. The interest rate for period within the contractual life of the award is based on the U.S. Treasury Bills yield curve in effect at the time of grant. The Company currently has no plans to distribute dividends and intends to retain future earnings to finance the development of its business. | ||||||||||||||||
The expected life of the stock options represents the weighted-average period the stock options are expected to remain outstanding and is a derived output of the binomial model. The expected life of the stock options is impacted by all of the underlying assumptions used in the Company's model. | ||||||||||||||||
Concentration of credit risks | p. Concentration of credit risks: | |||||||||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, short-term bank deposits, trade receivables and derivative instruments. | ||||||||||||||||
The majority of cash and cash equivalents, marketable securities and short-term deposits of the Company are invested in dollar deposits in major U.S. and Israeli banks. Such deposits in the United States may be in excess of insured limits and are not insured in other jurisdictions. Generally, the cash and cash equivalents and short-term bank deposits may be redeemed upon demand, and therefore, bear minimal risk. | ||||||||||||||||
The Company's trade receivables are primarily derived from sales to customers located mainly in the United States, as well as in EMEA, APAC and Latin America. Concentration of credit risk with respect to trade receivables is limited by credit limits, ongoing credit evaluation and account monitoring procedures. The Company performs ongoing credit evaluations of its customers and establishes an allowance for doubtful accounts on a specific basis. Allowance for doubtful accounts amounted to $ 707 and $ 441 as of December 31, 2014 and 2013, respectively. | ||||||||||||||||
The Company has no significant off balance sheet concentrations of credit risk. | ||||||||||||||||
Grants from the OCS | q. Grants from the OCS: | |||||||||||||||
Participation grants from the Office of the Chief Scientist of the Ministry of Industry, Trade and Labor in Israel ("OCS") for research and development activity are recognized at the time the Company is entitled to such grants on the basis of the costs incurred and included as a deduction of research and development costs. Research and development grants recognized amounted to $ 984, $ 1,051 and $ 2,855 in 2014, 2013 and 2012, respectively. | ||||||||||||||||
Income taxes | r. Income taxes: | |||||||||||||||
The Company accounts for income taxes in accordance with Accounting Standards Codification No. 740, "Income Taxes" ("ASC No. 740"). ASC No. 740 prescribes the use of the liability method, whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of 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 their estimated realizable value if it is more likely than not that some portion or all of the deferred tax assets will not be realized. | ||||||||||||||||
ASC No. 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. | ||||||||||||||||
Basic and diluted net income/loss per share | s. Basic and diluted net income/loss per share: | |||||||||||||||
Basic net income per share is computed based on the weighted average number of Ordinary Shares outstanding during each year. Diluted net income per share is computed based on the weighted average number of Ordinary Shares outstanding during each year, plus dilutive potential Ordinary Shares considered outstanding during the year, in accordance with FASB ASC 260 "Earnings Per Share". | ||||||||||||||||
For the years ended December 31, 2014, 2013 and 2012, all outstanding options and warrants have been excluded from the calculation of the diluted loss per share since their effect was anti-dilutive. See Note 16. | ||||||||||||||||
Comprehensive income (loss) | t. Comprehensive income (loss): | |||||||||||||||
The Company accounts for comprehensive income (loss) in accordance with Accounting Standards Codification No. 220, "Comprehensive Income" ("ASC No. 220"). This statement establishes standards for the reporting and display of comprehensive income (loss) and its components in a full set of general purpose financial statements. Comprehensive income (loss) generally represents all changes in shareholders' equity during the period except those resulting from investments by, or distributions to shareholders. The Company determined that its items of comprehensive income (loss) relate to unrealized gains and losses on hedging derivative instruments and unrealized gains and losses on available-for-sale marketable securities. | ||||||||||||||||
In February 2013, the FASB issued Accounting Standards Update ("ASU") 2013-02, which requires entities to present information about significant items reclassified out of accumulated other comprehensive income (loss) by component either on the face of the statement where net income (loss) is presented or as a separate disclosure in the notes to the financial statements. | ||||||||||||||||
The following table shows the components and the effects on net income (loss) of amounts reclassified from accumulated other comprehensive loss as of December 31, 2014: | ||||||||||||||||
Year ended December 31, 2014 | ||||||||||||||||
Unrealized gains (losses) on marketable securities | Unrealized gains (losses) on cash flow hedges | Total | ||||||||||||||
Balance as of December 31, 2013 | $ | 41 | $ | 325 | $ | 366 | ||||||||||
Changes in other comprehensive income (loss) before reclassifications | (210 | ) | (2,497 | ) | (2,707 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) to : | ||||||||||||||||
Cost of revenues | - | 86 | 86 | |||||||||||||
Operating expenses | - | 630 | 630 | |||||||||||||
Financial income, net | 5 | - | 5 | |||||||||||||
Net current-period other comprehensive loss | (205 | ) | (1,781 | ) | (1,986 | ) | ||||||||||
Balance as of December 31, 2014 | (164 | ) | (1,456 | ) | (1,620 | ) | ||||||||||
Fair value of financial instruments | u. Fair value of financial instruments: | |||||||||||||||
The Company measures its cash and cash equivalents, marketable securities, derivative instruments,, short-term bank deposits, trade receivables, other receivables, trade payables and other payables at fair value. | ||||||||||||||||
Fair value is an exit price, representing the amount that would be received if the Company were 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. The Company uses a three-tier value hierarchy, which prioritizes the 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. | ||||||||||||||||
The following table shows the components of Accumulated other comprehensive income, net of taxes, as of December 31, 2014: | ||||||||||||||||
Level 2 - Include other inputs that are directly or indirectly observable in the marketplace, other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets with insufficient volume or infrequent transactions, or other inputs that are observable (model-derived valuations in which significant inputs are observable), or can be derived principally from or corroborated by observable market data; and | ||||||||||||||||
Level 3 - Unobservable inputs which are supported by little or no market activity. | ||||||||||||||||
The Company categorized each of its fair value measurements in one of those three levels of hierarchy. 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. | ||||||||||||||||
Derivatives and hedging | v. Derivatives and hedging: | |||||||||||||||
The Company accounts for derivatives and hedging based on Accounting Standards Codification No. 815, "Derivatives and Hedging" ("ASC No. 815"). | ||||||||||||||||
The Company accounts for its derivative instruments as either assets or liabilities and carries them at fair value. Derivative instruments that are not designated and qualified as hedging instruments must be adjusted to fair value through earnings. | ||||||||||||||||
For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income (loss) in shareholders' equity and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The ineffective portion of the gain or loss on the derivative instrument is recognized in current earnings. To apply hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. (See Note 5). | ||||||||||||||||
Business combinations | w. Business combinations: | |||||||||||||||
The Company accounts for business combinations in accordance with ASC No. 805. ASC No. 805 requires recognition of assets acquired, liabilities assumed, and any non-controlling interest at the acquisition date, measured at their fair values as of that date. Any excess of the fair value of net assets acquired over the purchase price is recorded as goodwill and any subsequent changes in estimated contingencies are to be recorded in earnings. In addition, changes in valuation allowance related to acquired deferred tax assets and acquired income tax positions are to be recognized in earnings. | ||||||||||||||||
Warranty costs | x. Warranty costs: | |||||||||||||||
The Company generally provides a three months software and a one year hardware warranty for all of its products. A provision is recorded for estimated warranty costs at the time revenues are recognized based on the Company's experience. Warranty expenses for the years ended December 31, 2012, 2013 and 2014 were immaterial. | ||||||||||||||||
Reclassifications: | y. Reclassifications: | |||||||||||||||
Certain amounts in prior years' financial statements have been reclassified to conform to the current year's presentation. An amount of $ 572 related to Government Authorities was reclassified from other receivables and prepaid expenses to Non-current assets. The reclassification had no effect on previously reported net income or shareholders' equity. | ||||||||||||||||
Recently Issued Accounting Pronouncement | z. Recently Issued Accounting Pronouncement: | |||||||||||||||
On May 28, 2014, the FASB completed its Revenue Recognition project by issuing ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The new guidance establishes the principles to report useful information to users of financial statements about the nature, timing, and uncertainty of revenue from contracts with customers. The new Revenue Recognition guidance is effective for annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. Early application is not permitted. The Company has not yet selected a transition method and it is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. | ||||||||||||||||
GENERAL_Tables
GENERAL (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Ortiva [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Schedule of the Fair Value of Assets Acquired and Liabilities Assumed | Fair value | |||||
Current assets | $ | 1,967 | ||||
Equipment | 459 | |||||
Deferred revenues | (1,803 | ) | ||||
Current and non-current liabilities | (3,949 | ) | ||||
Deferred tax assets, net | 409 | |||||
Technology | 3,899 | |||||
Backlog | 910 | |||||
Goodwill | 8,924 | |||||
Net assets acquired | $ | 10,816 | ||||
Oversi [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Schedule of the Fair Value of Assets Acquired and Liabilities Assumed | Fair value | |||||
Current assets | $ | 4,182 | ||||
Equipment and other assets | 138 | |||||
Deferred revenues | (936 | ) | ||||
Other current liabilities | (2,038 | ) | ||||
Bank loan | (1,952 | ) | ||||
Technology | 6,826 | |||||
Backlog | 1,491 | |||||
Customer relationships | 899 | |||||
Goodwill | 8,739 | |||||
Net assets acquired | $ | 17,349 |
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||||||||||||||||
Schedule of Estimated Useful Lives at an Annual Rate | % | |||||||||||||||
Lab equipment | 25 - 33 | |||||||||||||||
Computers and peripheral equipment | 15 - 33 | |||||||||||||||
Office furniture | 15-Jun | |||||||||||||||
Leasehold improvements | By the shorter of term of the lease or the useful life of the asset | |||||||||||||||
Schedule of Stock-Based Compensation Expense | Year ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Cost of revenues | $ | 353 | $ | 368 | $ | 222 | ||||||||||
Research and development | 1,919 | 1,666 | 1,186 | |||||||||||||
Sales and marketing | 3,322 | 3,106 | 2,060 | |||||||||||||
General and administrative | 2,501 | 2,591 | 1,349 | |||||||||||||
Total stock-based compensation expense | $ | 8,095 | $ | 7,731 | $ | 4,817 | ||||||||||
Schedule of Stock-Based Compensation Assumptions | Year ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Suboptimal exercise multiple | 3 | 3 | 2.5-3.5 | |||||||||||||
Risk free interest rate | 0.1%-2.73% | 0.1%-2.77% | 0.15%-1.39% | |||||||||||||
Volatility | 44%-60% | 53%-63% | 51%-66% | |||||||||||||
Dividend yield | 0% | 0% | 0% | |||||||||||||
Schedule of Accumulated Other Comprehensive Income | ||||||||||||||||
Year ended December 31, 2014 | ||||||||||||||||
Unrealized gains (losses) on marketable securities | Unrealized gains (losses) on cash flow hedges | Total | ||||||||||||||
Balance as of December 31, 2013 | $ | 41 | $ | 325 | $ | 366 | ||||||||||
Changes in other comprehensive income (loss) before reclassifications | (210 | ) | (2,497 | ) | (2,707 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) to : | ||||||||||||||||
Cost of revenues | - | 86 | 86 | |||||||||||||
Operating expenses | - | 630 | 630 | |||||||||||||
Financial income, net | 5 | - | 5 | |||||||||||||
Net current-period other comprehensive loss | (205 | ) | (1,781 | ) | (1,986 | ) | ||||||||||
Balance as of December 31, 2014 | (164 | ) | (1,456 | ) | (1,620 | ) | ||||||||||
AVAILABLEFORSALE_MARKETABLE_SE1
AVAILABLE-FOR-SALE MARKETABLE SECURITIES (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
AVAILABLE-FOR-SALE MARKETABLE SECURITIES [Abstract] | |||||||||||||||||||||||||||||||||
Summary of Available-for-Sale Marketable Securities | 31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||
Amortized cost | Gross unrealized gain | Gross unrealized | Fair | Amortized cost | Gross | Gross unrealized | Fair | ||||||||||||||||||||||||||
loss | loss | ||||||||||||||||||||||||||||||||
value | unrealized | value | |||||||||||||||||||||||||||||||
gain | |||||||||||||||||||||||||||||||||
Available-for-sale - matures within one year: | |||||||||||||||||||||||||||||||||
Governmental debentures | $ | 912 | $ | 1 | $ | - | $ | 913 | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||
Corporate debentures | 14,231 | 18 | (1 | ) | 14,248 | 3,921 | 7 | - | 3,928 | ||||||||||||||||||||||||
15,143 | 19 | (1 | ) | 15,161 | 3,921 | 7 | - | 3,928 | |||||||||||||||||||||||||
Available-for-sale - matures after one year through three years: | |||||||||||||||||||||||||||||||||
Governmental debentures | 562 | - | (9 | ) | 553 | 1,673 | 4 | (1 | ) | 1,676 | |||||||||||||||||||||||
Corporate debentures | 30,036 | - | (89 | ) | 29,947 | 35,163 | 77 | (46 | ) | 35,194 | |||||||||||||||||||||||
30,598 | - | (98 | ) | 30,500 | 36,836 | 81 | (47 | ) | 36,870 | ||||||||||||||||||||||||
Available-for-sale - matures after three years through five years: | |||||||||||||||||||||||||||||||||
Governmental debentures | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Corporate debentures | 8,694 | - | (84 | ) | 8,610 | - | - | - | - | ||||||||||||||||||||||||
- | |||||||||||||||||||||||||||||||||
8,694 | - | (84 | ) | 8,610 | - | - | - | - | |||||||||||||||||||||||||
$ | 54,435 | $ | 19 | $ | (183 | ) | $ | 54,271 | $ | 40,757 | $ | 88 | $ | (47 | ) | $ | 40,798 |
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | |||||||||||||||||
Schedule of Financial Assets Measured at Fair Value on a Recurring Basis | As of December 31, 2014 | ||||||||||||||||
Fair value measurements using input type | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Available-for-sale marketable securities | $ | - | $ | 54,271 | $ | - | $ | 54,271 | |||||||||
Foreign currency derivative contracts | - | (899 | ) | - | (899 | ) | |||||||||||
Total financial assets | $ | - | $ | 53,372 | $ | - | $ | 53,372 | |||||||||
As of December 31, 2013 | |||||||||||||||||
Fair value measurements using input type | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Available-for-sale marketable securities | $ | - | $ | 40,798 | $ | - | $ | 40,798 | |||||||||
Foreign currency derivative contracts | - | 264 | - | 264 | |||||||||||||
Total financial assets | $ | - | $ | 41,062 | $ | - | $ | 41,062 | |||||||||
DERIVATIVE_INSTRUMENTS_Tables
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
DERIVATIVE INSTRUMENTS [Abstract] | ||||||||||||
Schedule of the Fair Value of Open Foreign Exchange Contracts | Foreign exchange forward and | December 31, | ||||||||||
options contracts | Balance sheet | 2014 | 2013 | |||||||||
Fair value of foreign exchange forward contracts | Other receivables and prepaid expenses | 41 | 325 | |||||||||
Fair value of foreign exchange forward contracts | Accrued expenses | (1,497 | ) | - | ||||||||
Total derivatives designated as hedging instruments | (1,456 | ) | $ | 325 |
OTHER_RECEIVABLES_AND_PREPAID_1
OTHER RECEIVABLES AND PREPAID EXPENSES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES [Abstract] | |||||||||
Schedule of Other Accounts Receivable and Prepaid Expenses | December 31, | ||||||||
2014 | 2013 | ||||||||
Prepaid expenses | $ | 1,920 | $ | 5,815 | |||||
Government authorities | 1,918 | 968 | |||||||
Short-term lease deposits | 136 | 282 | |||||||
Foreign currency derivative contracts | 676 | 325 | |||||||
Loan to third-party (1) | 607 | - | |||||||
Grants receivable from the OCS | 41 | 94 | |||||||
Others | 85 | 162 | |||||||
$ | 5,383 | $ | 7,646 | ||||||
-1 | Represents a loan granted on January 1, 2014 to Optenet in the total amount of € 2,000, of which an amount of $ 1,215 is presented in non-current other assets as of December 31, 2014. The loan is being settled in equal payments in the amount of € 125 per quarter, and bears an annual interest rate of Eurobor + 5%. |
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
INVENTORIES [Abstract] | |||||||||
Schedule of Inventory | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 1,796 | $ | 3,693 | |||||
Finished goods | 8,313 | 10,105 | |||||||
$ | 10,109 | $ | 13,798 |
PROPERTY_AND_EQUIPMENT_NET_Tab
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
PROPERTY AND EQUIPMENT [Abstract] | ||||||||||
Schedule of Property and Equipment | December 31, | |||||||||
2014 | 2013 | |||||||||
Cost: | ||||||||||
Lab equipment | $ | 11,366 | $ | 9,967 | ||||||
Computers and peripheral equipment | 18,200 | 17,405 | ||||||||
Office furniture and equipment | 847 | 675 | ||||||||
Leasehold improvements | 1,056 | 674 | ||||||||
31,469 | 28,721 | |||||||||
Accumulated depreciation: | ||||||||||
Lab equipment | 8,089 | 6,676 | ||||||||
Computers and peripheral equipment | 16,418 | 15,293 | ||||||||
Office furniture and equipment | 463 | 398 | ||||||||
Leasehold improvements | 542 | 480 | ||||||||
25,512 | 22,847 | |||||||||
Depreciated cost | $ | 5,957 | $ | 5,874 |
INTANGIBLE_ASSETS_NET_Tables
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
INTANGIBLE ASSETS, NET [Abstract] | |||||||||||
Schedule of Intangible Assets | Weighted average | December 31, | |||||||||
remaining | |||||||||||
useful life | |||||||||||
2014 | 2013 | ||||||||||
Original Cost: | |||||||||||
Technology | 5.3 | $ | 10,725 | $ | 10,725 | ||||||
Backlog | 0.5 | 1,491 | 1,491 | ||||||||
Customer relationships | 1.5 | 899 | 899 | ||||||||
$ | 13,115 | $ | 13,115 | ||||||||
Accumulated amortization: | |||||||||||
Technology | 5.3 | $ | 3,592 | $ | 2,103 | ||||||
Backlog | 0.5 | 1,437 | 1,330 | ||||||||
Customer relationships | 1.5 | 537 | 275 | ||||||||
$ | 5,566 | $ | 3,708 | ||||||||
Amortized cost | $ | 7,549 | $ | 9,407 | |||||||
Schedule of Estimated Amortization Expense | Year ending December 31, | ||||||||||
2015 | 1,772 | ||||||||||
2016 | 1,621 | ||||||||||
2017 | 1,489 | ||||||||||
2018 | 1,452 | ||||||||||
Thereafter | 1,215 | ||||||||||
Total | 7,549 |
OTHER_PAYABLES_AND_ACCRUED_EXP1
OTHER PAYABLES AND ACCRUED EXPENSES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
OTHER PAYABLES AND ACCRUED EXPENSES [Abstract] | |||||||||
Schedule of Other Payables and Accrued Expenses | December 31, | ||||||||
2014 | 2013 | ||||||||
Accrued expenses | $ | 3,241 | $ | 3,806 | |||||
Foreign currency derivative contracts | 1,575 | 61 | |||||||
Accrued taxes | 384 | 824 | |||||||
Advances from customers | 1,853 | 53 | |||||||
Others | 234 | 33 | |||||||
$ | 7,287 | $ | 4,777 |
COMMITMENTS_AND_CONTINGENT_LIA1
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract] | ||||||
Schedule of Future Minimum Lease Obligations | Year ending December 31, | |||||
2015 | $ | 2,668 | ||||
2016 | 2,171 | |||||
2017 | 1,917 | |||||
2018 | 883 | |||||
Thereafter | 100 | |||||
Total | $ | 7,739 |
SHAREHOLDERS_EQUITY_Tables
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||
SHAREHOLDERS' EQUITY [Abstract] | ||||||||||||||||||||||||||||||||||
Schedule of Stock Option Activity | Year ended December 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||
Number | Weighted | Number | Weighted | Number | Weighted | |||||||||||||||||||||||||||||
of shares | average | average | ||||||||||||||||||||||||||||||||
upon | average | of shares | of shares | exercise | ||||||||||||||||||||||||||||||
exercise | exercise price | upon | exercise | upon | price | |||||||||||||||||||||||||||||
exercise | price | exercise | ||||||||||||||||||||||||||||||||
Outstanding at beginning of year | 2,875,003 | $ | 12.02 | 2,709,910 | $ | 11.03 | 3,164,090 | $ | 5.9 | |||||||||||||||||||||||||
Granted | 572,533 | $ | 11.93 | 749,255 | $ | 11.74 | 1,301,455 | $ | 8.11 | |||||||||||||||||||||||||
Forfeited | (562,787 | ) | $ | 17.02 | (254,290 | ) | $ | 11.64 | (158,718 | ) | $ | 12.15 | ||||||||||||||||||||||
Exercised | (353,368 | ) | $ | 4.18 | (329,872 | ) | $ | 2.83 | (1,596,917 | ) | $ | 3.72 | ||||||||||||||||||||||
Outstanding at end of year | 2,531,381 | $ | 11.99 | 2,875,003 | $ | 12.02 | 2,709,910 | $ | 11.03 | |||||||||||||||||||||||||
Exercisable at end of year | 1,440,143 | $ | 11.75 | 1,364,620 | $ | 10.38 | 819,869 | $ | 6.62 | |||||||||||||||||||||||||
Vested and Expected to Vest | 1,950,116 | $ | 11.97 | 2,117,348 | $ | 11.65 | 1,686,435 | $ | 9.86 | |||||||||||||||||||||||||
Schedule of Stock Options Outstanding | Exercise price | Shares upon | Weighted | Shares upon | ||||||||||||||||||||||||||||||
average | exercise of | |||||||||||||||||||||||||||||||||
exercise of | ||||||||||||||||||||||||||||||||||
options | remaining | options | ||||||||||||||||||||||||||||||||
outstanding as | contractual life | exercisable as of | ||||||||||||||||||||||||||||||||
of December 31, | December 31, | |||||||||||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||||||||
Years | ||||||||||||||||||||||||||||||||||
$ 23.31-27.58 | 214,819 | 6.43 | 143,636 | |||||||||||||||||||||||||||||||
$ 16.20-17.07 | 335,241 | 6.84 | 209,283 | |||||||||||||||||||||||||||||||
$ 10.16-15.43 | 1,287,222 | 8.29 | 513,493 | |||||||||||||||||||||||||||||||
$ 5.25-9.25 | 214,958 | 5.59 | 214,958 | |||||||||||||||||||||||||||||||
$ 0.03-4.95 | 479,141 | 5.9 | 358,773 | |||||||||||||||||||||||||||||||
2,531,381 | 1,440,143 | |||||||||||||||||||||||||||||||||
Summary of Restricted Stock Unit Activity | Number of | Weighted- | ||||||||||||||||||||||||||||||||
Shares | Average | |||||||||||||||||||||||||||||||||
Underlying | Grant Date | |||||||||||||||||||||||||||||||||
Outstanding | Fair Value | |||||||||||||||||||||||||||||||||
Restricted Stock | ||||||||||||||||||||||||||||||||||
Units | ||||||||||||||||||||||||||||||||||
Outstanding as of January 1, 2014 | 14,208 | $ | 13.57 | |||||||||||||||||||||||||||||||
Granted | 561,873 | $ | 12.96 | |||||||||||||||||||||||||||||||
Vested | (89,437 | ) | $ | 14.68 | ||||||||||||||||||||||||||||||
Forfeited | (41,380 | ) | $ | 15.13 | ||||||||||||||||||||||||||||||
Unvested as of December 31, 2014 | 445,264 | $ | 12.43 |
TAXES_ON_INCOME_Tables
TAXES ON INCOME (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
TAXES ON INCOME [Abstract] | ||||||||||||||||||
Schedule of Pre-tax Income (Loss) | Year ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Domestic | $ | (3,792 | ) | $ | (6,556 | ) | $ | (2,372 | ) | |||||||||
Foreign | 1,345 | 219 | (5,292 | ) | ||||||||||||||
$ | (2,447 | ) | $ | (6,337 | ) | $ | (7,664 | ) | ||||||||||
Schedule of the Reconciliation of the Theoretical Tax Expenses | Year ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Loss before taxes on income | $ | (2,447 | ) | $ | (6,337 | ) | $ | (7,664 | ) | |||||||||
Theoretical tax expense computed at the Israeli statutory tax rate (26.5%, 25% and 25% for the years 2014, 2013 and 2012, respectively) | $ | (649 | ) | $ | (1,584 | ) | $ | (1,916 | ) | |||||||||
Changes in valuation allowance | (1,279 | ) | 931 | (1,554 | ) | |||||||||||||
Increase (decrease) in losses and temporary differences due to change in Israeli corporate " and Approved Enterprise" tax | (49 | ) | 3,056 | (7,073 | ) | |||||||||||||
Increase (decrease) in valuation allowance related to losses and temporary differences due to change in Israeli corporate " and Approved Enterprise" tax | 49 | (3,056 | ) | 7,073 | ||||||||||||||
Taxes with respect to prior years | - | - | 2 | |||||||||||||||
Increase in deferred tax assets related to losses and temporary differences due to changes in tax rates and different basis of measurement | 562 | (594 | ) | - | ||||||||||||||
Non-deductible expenses and other | (415 | ) | (223 | ) | 1,699 | |||||||||||||
Non-deductible share-based compensation expense | 1,831 | 1,590 | 833 | |||||||||||||||
Exchange rate differences | - | - | 10 | |||||||||||||||
Actual tax expense (benefit) | $ | 50 | $ | 120 | $ | (926 | ) | |||||||||||
Schedule of Income Tax Expense (Benefit) | Year ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Current taxes (benefit) | $ | 612 | $ | 408 | $ | (2 | ) | |||||||||||
Deferred taxes (benefit) | (562 | ) | (288 | ) | (926 | ) | ||||||||||||
Taxes in respect of prior years | - | - | 2 | |||||||||||||||
$ | 50 | $ | 120 | $ | (926 | ) | ||||||||||||
Schedule of Deferred Income Taxes | December 31, | |||||||||||||||||
2014 | 2013 | |||||||||||||||||
Deferred tax assets: | ||||||||||||||||||
Operating and capital loss carryforwards | $ | 13,103 | $ | 14,567 | ||||||||||||||
Reserves and allowances | 1,183 | 785 | ||||||||||||||||
Deferred tax asset before valuation allowance | 14,286 | 15,352 | ||||||||||||||||
Valuation allowance | (11,408 | ) | (12,736 | ) | ||||||||||||||
Net deferred tax asset | 2,878 | 2,616 | ||||||||||||||||
Deferred tax liability | | (309 | ) | (609 | ) | |||||||||||||
Net deferred tax asset | $ | 2,569 | $ | 2,007 |
GEOGRAPHIC_INFORMATION_Tables
GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
GEOGRAPHIC INFORMATION [Abstract] | |||||||||||||||
Schedule of Revenues by Geographic Location | Year ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Europe | $ | 41,238 | $ | 35,143 | $ | 39,655 | |||||||||
Asia and Oceania | 41,990 | 29,909 | 21,953 | ||||||||||||
Middle East and Africa | 15,352 | 4,820 | 10,565 | ||||||||||||
United States of America | 15,307 | 21,350 | 24,674 | ||||||||||||
Americas (excluding United States of America) | 3,299 | 5,323 | 7,905 | ||||||||||||
$ | 117,186 | $ | 96,545 | $ | 104,752 | ||||||||||
Schedule of Major Customers | Year ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Customer A | 27 | % | 17 | % | 14 | % | |||||||||
Customer B | 17 | % | 17 | % | - | ||||||||||
Customer C | - | 11 | % | - | |||||||||||
44 | % | 45 | % | 14 | % | ||||||||||
Schedule of Long-Lived Assets by Geographic Location | December 31, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Long-lived assets: | |||||||||||||||
Israel | $ | 5,603 | $ | 4,680 | |||||||||||
United States of America | 181 | 987 | |||||||||||||
Other | 173 | 207 | |||||||||||||
$ | 5,957 | $ | 5,874 |
FINANCIAL_INCOME_NET_Tables
FINANCIAL INCOME, NET (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
FINANCIAL INCOME, NET [Abstract] | ||||||||||||||
Schedule of Financial Income, Net | Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Financial income: | ||||||||||||||
Interest income | $ | 1,900 | $ | 1,358 | $ | 1,746 | ||||||||
Financial expenses: | ||||||||||||||
Exchange rate differences and other | 174 | 47 | 176 | |||||||||||
Amortization/accretion of premium/discount on marketable securities, net | 1,066 | 584 | 212 | |||||||||||
$ | 660 | $ | 727 | $ | 1,358 |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
EARNINGS PER SHARE [Abstract] | |||||||||||||
Schedule of the Computation of Basic and Diluted Net Earnings (Loss) per Share | Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Numerator: | |||||||||||||
Net loss | $ | (2,497 | ) | $ | (6,457 | ) | $ | (6,738 | ) | ||||
Denominator: | |||||||||||||
Weighted average number of shares outstanding used in computing basic net earnings per share | 33,143,168 | 32,680,766 | 31,959,921 | ||||||||||
Dilutive effect: stock options | - | - | - | ||||||||||
Total weighted average number of shares used in computing diluted net earnings per share | 33,143,168 | 32,680,766 | 31,959,921 | ||||||||||
Basic and diluted net loss per share | $ | (0.08 | ) | $ | (0.20 | ) | $ | (0.21 | ) | ||||
Summary of numbers of shares were excluded from the computation of diluted net loss per ordinary | Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Ordinary shares | 2,300,425 | 2,018,751 | 1,009,012 |
GENERAL_Narrative_Details
GENERAL (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 15-May-12 | Sep. 04, 2012 |
Business Acquisition [Line Items] | |||||
Cash paid to acquire entity | $24,892 | ||||
Fair value of contingent liability | 0 | 1,088 | |||
Backlog [Member] | |||||
Business Acquisition [Line Items] | |||||
Weighted average remaining useful life | 6 months | ||||
Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Weighted average remaining useful life | 1 year 6 months | ||||
Ortiva [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquisition date | 15-May-12 | ||||
Cash paid to acquire entity | 10,816 | ||||
Revenues recognized from acquisition | 3,404 | ||||
Total purchase consideration | 10,816 | ||||
Ortiva [Member] | Technology [Member] | |||||
Business Acquisition [Line Items] | |||||
Weighted average remaining useful life | 9 years 7 months 6 days | ||||
Ortiva [Member] | Backlog [Member] | |||||
Business Acquisition [Line Items] | |||||
Weighted average remaining useful life | 1 year 7 months 6 days | ||||
Oversi [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquisition date | 4-Sep-12 | ||||
Cash paid to acquire entity | 16,000 | ||||
Revenues recognized from acquisition | 1,954 | ||||
Total purchase consideration | 17,349 | ||||
Fair value of contingent liability | $1,349 | ||||
Oversi [Member] | Technology [Member] | |||||
Business Acquisition [Line Items] | |||||
Weighted average remaining useful life | 6 years 3 months 18 days | ||||
Oversi [Member] | Backlog [Member] | |||||
Business Acquisition [Line Items] | |||||
Weighted average remaining useful life | 1 year 4 months 24 days | ||||
Oversi [Member] | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Weighted average remaining useful life | 4 years 3 months 18 days |
GENERAL_Schedule_of_Estimated_
GENERAL (Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | 15-May-12 | Sep. 04, 2012 |
In Thousands, unless otherwise specified | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $20,814 | $20,814 | ||
Ortiva [Member] | ||||
Business Acquisition [Line Items] | ||||
Current assets | 1,967 | |||
Equipment and other assets | 459 | |||
Deferred revenues | -1,803 | |||
Current and non-current liabilities | -3,949 | |||
Deferred tax assets, net | 409 | |||
Goodwill | 8,924 | |||
Net assets acquired | 10,816 | |||
Ortiva [Member] | Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 3,899 | |||
Ortiva [Member] | Backlog [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 910 | |||
Oversi [Member] | ||||
Business Acquisition [Line Items] | ||||
Current assets | 4,182 | |||
Equipment and other assets | 138 | |||
Deferred revenues | -936 | |||
Other current liabilities | -2,038 | |||
Bank loan | -1,952 | |||
Goodwill | 8,739 | |||
Net assets acquired | 17,349 | |||
Oversi [Member] | Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 6,826 | |||
Oversi [Member] | Backlog [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 1,491 | |||
Oversi [Member] | Customer Relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $899 |
SIGNIFICANT_ACCOUNTING_POLICIE3
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Short-term deposits, weighted average interest rate | 0.56% | 0.51% | |
Inventory write-offs | $4,560 | $1,835 | $1,385 |
Impairment of long-lived assets held for use | |||
Impairment of intangible assets | |||
Reserve for sales returns | 1,147 | 892 | |
Advertising expenses | 1,131 | 973 | 1,002 |
Severance expense | 2,092 | 2,070 | 1,486 |
Allowance for doubtful accounts | 707 | 441 | |
Grants participations excluded from research and development costs | 984 | 1,051 | 2,855 |
Prior period other receivables and prepaid expenses reclassified to noncurrent assets | $572 | ||
Minimum [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Annual post-vesting and pre-vesting forfeiture rate | 0.00% | 0.00% | 0.00% |
Maximum [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Annual post-vesting and pre-vesting forfeiture rate | 5.70% | 5.70% | 5.70% |
SIGNIFICANT_ACCOUNTING_POLICIE4
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Estimated Useful Lives at Annual Rates) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Lab equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, annual rate | 25.00% |
Lab equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, annual rate | 33.00% |
Computers and peripheral equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, annual rate | 15.00% |
Computers and peripheral equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, annual rate | 33.00% |
Office furniture [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, annual rate | 6.00% |
Office furniture [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, annual rate | 15.00% |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | By the shorter of term of the lease or the useful life of the asset |
SIGNIFICANT_ACCOUNTING_POLICIE5
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Stock-Based Compensation Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $8,095 | $7,731 | $4,817 |
Cost of revenues [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 353 | 368 | 222 |
Research and development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 1,919 | 1,666 | 1,186 |
Sales and marketing [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 3,322 | 3,106 | 2,060 |
General and administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $2,501 | $2,591 | $1,349 |
SIGNIFICANT_ACCOUNTING_POLICIE6
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Stock-Based Compensation Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Suboptimal exercise multiple | 3 | 3 | |
Risk free interest rate, minimum | 0.10% | 0.10% | 0.15% |
Risk free interest rate, maximum | 2.73% | 2.77% | 1.39% |
Volatility, minimum | 44.00% | 53.00% | 51.00% |
Volatility, maximum | 60.00% | 63.00% | 66.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Suboptimal exercise multiple | 2.5 | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Suboptimal exercise multiple | 3.5 |
SIGNIFICANT_ACCOUNTING_POLICIE7
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Accumulated Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of December 31, 2013 | $366 | $1,760 | |
Changes in other comprehensive income (loss) before reclassifications | -2,707 | ||
Amounts reclassified from accumulated other comprehensive income (loss) to : | |||
Net current-period other comprehensive loss | -1,986 | -1,394 | 2,570 |
Balance as of December 31, 2014 | -1,620 | 366 | 1,760 |
Cost of revenues [Member] | |||
Amounts reclassified from accumulated other comprehensive income (loss) to : | |||
Amounts reclassified from accumulated other comprehensive income | -86 | ||
Operating expenses [Member] | |||
Amounts reclassified from accumulated other comprehensive income (loss) to : | |||
Amounts reclassified from accumulated other comprehensive income | -630 | ||
Financial income, net [Member] | |||
Amounts reclassified from accumulated other comprehensive income (loss) to : | |||
Amounts reclassified from accumulated other comprehensive income | -5 | ||
Unrealized gains (losses) on marketable securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of December 31, 2013 | 41 | ||
Changes in other comprehensive income (loss) before reclassifications | -210 | ||
Amounts reclassified from accumulated other comprehensive income (loss) to : | |||
Net current-period other comprehensive loss | -205 | ||
Balance as of December 31, 2014 | -164 | ||
Unrealized gains (losses) on marketable securities [Member] | Cost of revenues [Member] | |||
Amounts reclassified from accumulated other comprehensive income (loss) to : | |||
Amounts reclassified from accumulated other comprehensive income | |||
Unrealized gains (losses) on marketable securities [Member] | Operating expenses [Member] | |||
Amounts reclassified from accumulated other comprehensive income (loss) to : | |||
Amounts reclassified from accumulated other comprehensive income | |||
Unrealized gains (losses) on marketable securities [Member] | Financial income, net [Member] | |||
Amounts reclassified from accumulated other comprehensive income (loss) to : | |||
Amounts reclassified from accumulated other comprehensive income | -5 | ||
Unrealized gains (losses) on cash flow hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of December 31, 2013 | 325 | ||
Changes in other comprehensive income (loss) before reclassifications | -2,497 | ||
Amounts reclassified from accumulated other comprehensive income (loss) to : | |||
Net current-period other comprehensive loss | -1,781 | ||
Balance as of December 31, 2014 | -1,456 | ||
Unrealized gains (losses) on cash flow hedges [Member] | Cost of revenues [Member] | |||
Amounts reclassified from accumulated other comprehensive income (loss) to : | |||
Amounts reclassified from accumulated other comprehensive income | -86 | ||
Unrealized gains (losses) on cash flow hedges [Member] | Operating expenses [Member] | |||
Amounts reclassified from accumulated other comprehensive income (loss) to : | |||
Amounts reclassified from accumulated other comprehensive income | -630 | ||
Unrealized gains (losses) on cash flow hedges [Member] | Financial income, net [Member] | |||
Amounts reclassified from accumulated other comprehensive income (loss) to : | |||
Amounts reclassified from accumulated other comprehensive income |
AVAILABLEFORSALE_MARKETABLE_SE2
AVAILABLE-FOR-SALE MARKETABLE SECURITIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $54,435 | $40,757 |
Gross unrealized gain | 19 | 88 |
Gross unrealized loss | -183 | -47 |
Fair value | 54,271 | 40,798 |
Available-for-sale securities matures within one year [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 15,143 | 3,921 |
Gross unrealized gain | 19 | 7 |
Gross unrealized loss | -1 | |
Fair value | 15,161 | 3,928 |
Available-for-sale securities matures after one year through three years [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 30,598 | 36,836 |
Gross unrealized gain | 81 | |
Gross unrealized loss | -98 | -47 |
Fair value | 30,500 | 36,870 |
Available-for-sale securities matures after three year through five years [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 8,694 | |
Gross unrealized gain | ||
Gross unrealized loss | -84 | |
Fair value | 8,610 | |
Governmental debentures [Member] | Available-for-sale securities matures within one year [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 912 | |
Gross unrealized gain | 1 | |
Gross unrealized loss | ||
Fair value | 913 | |
Governmental debentures [Member] | Available-for-sale securities matures after one year through three years [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 562 | 1,673 |
Gross unrealized gain | 4 | |
Gross unrealized loss | -9 | -1 |
Fair value | 553 | 1,676 |
Governmental debentures [Member] | Available-for-sale securities matures after three year through five years [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | ||
Gross unrealized gain | ||
Gross unrealized loss | ||
Fair value | ||
Corporate debentures [Member] | Available-for-sale securities matures within one year [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 14,231 | 3,921 |
Gross unrealized gain | 18 | 7 |
Gross unrealized loss | -1 | |
Fair value | 14,248 | 3,928 |
Corporate debentures [Member] | Available-for-sale securities matures after one year through three years [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 30,036 | 35,163 |
Gross unrealized gain | 77 | |
Gross unrealized loss | -89 | -46 |
Fair value | 29,947 | 35,194 |
Corporate debentures [Member] | Available-for-sale securities matures after three year through five years [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 8,694 | |
Gross unrealized gain | ||
Gross unrealized loss | -84 | |
Fair value | $8,610 |
FAIR_VALUE_MEASUREMENTS_Schedu
FAIR VALUE MEASUREMENTS (Schedule of Financial Assets Measured at Fair Value on a Recurring Basis) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale marketable securities | $54,271 | $40,798 |
Foreign currency derivative contracts | -899 | 264 |
Total financial assets | 53,372 | 41,062 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale marketable securities | ||
Foreign currency derivative contracts | ||
Total financial assets | ||
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale marketable securities | 54,271 | 40,798 |
Foreign currency derivative contracts | -899 | 264 |
Total financial assets | 53,372 | 41,062 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale marketable securities | ||
Foreign currency derivative contracts | ||
Total financial assets |
DERIVATIVE_INSTRUMENTS_Narrati
DERIVATIVE INSTRUMENTS (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
DERIVATIVE INSTRUMENTS [Abstract] | |||
Net losses recognized from currency transactions | $2,144 | $181 | ($231) |
Unrealized gain (loss) on forward contracts, net | -1,456 | 325 | 1,699 |
Outstanding forward contracts | 42,799 | 14,904 | |
Gain (loss) on derivative instruments reclassified from OCI to operating expenses | 717 | 2,995 | |
Changes in fair value of derivatives not designated as hedging instrument | $17,580 | $5,645 |
DERIVATIVE_INSTRUMENTS_Schedul
DERIVATIVE INSTRUMENTS (Schedule of the Fair Value Open Foreign Exchange Contracts) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
DERIVATIVE INSTRUMENTS [Abstract] | ||
Fair value of foreign exchange forward contracts | $41 | $325 |
Fair value of foreign exchange forward contracts | -1,497 | |
Total derivatives designated as hedging instruments | ($1,456) | $325 |
OTHER_RECEIVABLES_AND_PREPAID_2
OTHER RECEIVABLES AND PREPAID EXPENSES (Schedule of Other Accounts Receivable and Prepaid Expenses) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Other accounts receivables and prepaid expenses [Line Items] | ||||
Prepaid expenses | $1,920 | $5,815 | ||
Government authorities | 1,918 | 968 | ||
Short-term lease deposits | 136 | 282 | ||
Loan to third-party | 607 | [1] | [1] | |
Grants receivable from the OCS | 41 | 94 | ||
Others | 85 | 162 | ||
Other receivables and prepaid expenses | 5,383 | 7,646 | ||
Foreign Exchange Contract [Member] | ||||
Other accounts receivables and prepaid expenses [Line Items] | ||||
Foreign currency derivative contracts | $676 | $325 | ||
[1] | Represents a loan granted on January 1, 2014 to Optenet in the total amount of € 2,000, of which an amount of $ 1,215 is presented in non-current other assets as of December 31, 2014. The loan is being settled in equal payments in the amount of € 125 per quarter, and bears an annual interest rate of Eurobor + 5%. |
OTHER_RECEIVABLES_AND_PREPAID_3
OTHER RECEIVABLES AND PREPAID EXPENSES (Narrative) (Details) (Optenet [Member]) | 0 Months Ended | 1 Months Ended |
In Thousands, unless otherwise specified | Jan. 02, 2014 | Dec. 31, 2014 |
EUR (€) | Non-current other assets [Member] | |
USD ($) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans granted | € 2,000 | $1,215 |
Quarterly loan payment amount | € 125 | |
Description of variable rate basis | Eurobor | |
Basis spread on variable rate | 5.00% |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
INVENTORIES [Abstract] | ||
Raw materials | $1,796 | $3,693 |
Finished products | 8,313 | 10,105 |
Total inventory | 10,109 | 13,798 |
Cost of goods sold, deferred finished goods inventory | $1,336 | $3,436 |
PROPERTY_AND_EQUIPMENT_NET_Det
PROPERTY AND EQUIPMENT, NET (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Cost | $31,469 | $28,721 | |
Accumulated depreciation | 25,512 | 22,847 | |
Deprecated cost | 5,957 | 5,874 | |
Depreciation | 3,308 | 3,423 | 3,120 |
Lab equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 11,366 | 9,967 | |
Accumulated depreciation | 8,089 | 6,676 | |
Computers and peripheral equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 18,200 | 17,405 | |
Accumulated depreciation | 16,418 | 15,293 | |
Office furniture [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 847 | 675 | |
Accumulated depreciation | 463 | 398 | |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 1,056 | 674 | |
Accumulated depreciation | $542 | $480 |
INTANGIBLE_ASSETS_NET_Schedule
INTANGIBLE ASSETS, NET (Schedule of Intangible Assets) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $13,115 | $13,115 |
Accumulated amortization | 5,566 | 3,708 |
Total | 7,549 | 9,407 |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average remaining useful life | 5 years 3 months 18 days | |
Cost | 10,725 | 10,725 |
Accumulated amortization | 3,592 | 2,103 |
Backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average remaining useful life | 6 months | |
Cost | 1,491 | 1,491 |
Accumulated amortization | 1,437 | 1,330 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average remaining useful life | 1 year 6 months | |
Cost | 899 | 899 |
Accumulated amortization | $537 | $275 |
INTANGIBLE_ASSETS_NET_Schedule1
INTANGIBLE ASSETS, NET (Schedule of Estimated Amortization Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INTANGIBLE ASSETS, NET [Abstract] | |||
2015 | $1,772 | ||
2016 | 1,621 | ||
2017 | 1,489 | ||
2018 | 1,452 | ||
Thereafter | 1,215 | ||
Total | 7,549 | 9,407 | |
Amortization expense | $1,858 | $2,915 | $1,947 |
OTHER_PAYABLES_AND_ACCRUED_EXP2
OTHER PAYABLES AND ACCRUED EXPENSES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
OTHER PAYABLES AND ACCRUED EXPENSES [Abstract] | ||
Accrued expenses | $3,241 | $3,806 |
Accrual taxes | 384 | 824 |
Advances from customers | 1,853 | 53 |
Others | 234 | 33 |
Total other payables and accrued expenses | 7,287 | 4,777 |
Foreign Exchange Contract [Member] | ||
Other payables and accrued expenses [Line Items] | ||
Foreign currency derivative contracts | $1,575 | $61 |
COMMITMENTS_AND_CONTINGENT_LIA2
COMMITMENTS AND CONTINGENT LIABILITIES (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies [Line Items] | |||
Liability related to settlement of OCS grants (See note 11a) | $15,886 | ||
Accrued royalties to the OCS | 250 | ||
Royalty expense | 15,886 | ||
Lease period | 5 years | ||
Monthly rental expenses | 155 | ||
Rent expense | 3,155 | 3,273 | 2,345 |
Research and development grants [Member] | |||
Commitments and Contingencies [Line Items] | |||
Royalty expense, percentage of net sales | 3.50% | ||
Royalty expense, percentage of grants | 100.00% | ||
Royalty expense | $0 | $250 | $17,703 |
COMMITMENTS_AND_CONTINGENT_LIA3
COMMITMENTS AND CONTINGENT LIABILITIES (Schedule of Aggregate Future Minimum Lease Obligations) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract] | |
2015 | $2,668 |
2016 | 2,171 |
2017 | 1,917 |
2018 | 883 |
Thereafter | 100 |
Total | $7,739 |
SHAREHOLDERS_EQUITY_Narrative_
SHAREHOLDERS' EQUITY (Narrative) (Details) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
USD ($) | ILS | ILS | Israeli Employees [Member] | Israeli Employees [Member] | 2003 option plan [Member] | 2006 option plan [Member] | Stock Compensation Plan [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | |||
USD ($) | USD ($) | USD ($) | 2006 option plan [Member] | 2006 option plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share capital, amount authorized | 20,000,000 | |||||||||||||
Ordinary shares, shares authorized | 200,000,000 | 200,000,000 | ||||||||||||
Ordinary shares, par value per share | 0.1 | 0.1 | ||||||||||||
Intrinsic value of options outstanding | 4,085,000 | |||||||||||||
Intrinsic value of options exercisable | 2,983,000 | |||||||||||||
Intrinsic value of options vested and expected to vest | 3,436,000 | |||||||||||||
Intrinsic value of options exercised | 1,901,000 | |||||||||||||
Stock options vested during period | 428,828 | |||||||||||||
Weighted average remaining contractual life of options outstanding | 7 years 3 months 4 days | |||||||||||||
Weighted-average remaining contractual life of exercisable options | 6 years 25 days | |||||||||||||
Unrecognized compensation cost related to non-vested stock options | $9,312,000 | $4,500,000 | ||||||||||||
Unrecognized compensation cost, recognition period | 2 years 1 month 17 days | 2 years 1 month 17 days | ||||||||||||
Options outstanding | 2,531,381 | 2,875,003 | 2,709,910 | 3,164,090 | 2,183 | 2,529,198 | ||||||||
Shares available for future issuance | 209,833 | |||||||||||||
Options granted | 8,333 | 60,130 | ||||||||||||
Vesting period for plan | 4 years | 4 years | ||||||||||||
Options, expiration period | 10 years | |||||||||||||
Number of restricted stock units outstanding | 445,264 | 14,208 | 445,264 | |||||||||||
Exercise Price | $0.03 | |||||||||||||
Granted | 561,873 | 561,873 | 14,969 |
SHAREHOLDERS_EQUITY_Schedule_o
SHAREHOLDERS' EQUITY (Schedule of Stock Option Activity) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Number of shares upon exercise | |||
Outstanding at beginning of year | 2,875,003 | 2,709,910 | 3,164,090 |
Granted, Number of shares upon exercise | 572,533 | 749,255 | 1,301,455 |
Forfeited | -562,787 | -254,290 | -158,718 |
Exercised | -353,368 | -329,872 | -1,596,917 |
Outstanding at end of year | 2,531,381 | 2,875,003 | 2,709,910 |
Exercisable at end of year | 1,440,143 | 1,364,620 | 819,869 |
Vested and Expected to Vest | 1,950,116 | 2,117,348 | 1,686,435 |
Weighted average exercise price | |||
Outstanding at beginning of year | $12.02 | $11.03 | $5.90 |
Granted | $11.93 | $11.74 | $8.11 |
Forfeited | $17.02 | $11.64 | $12.15 |
Exercised | $4.18 | $2.83 | $3.72 |
Outstanding at end of year | $11.99 | $12.02 | $11.03 |
Exercisable at end of year | $11.75 | $10.38 | $6.62 |
Vested and Expected to Vest | $11.97 | $11.65 | $9.86 |
SHAREHOLDERS_EQUITY_Schedule_o1
SHAREHOLDERS' EQUITY (Schedule of Options Outstanding) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options outstanding | 2,531,381 | 2,875,003 | 2,709,910 | 3,164,090 |
Weighted average remaining contractual life of options outstanding | 7 years 3 months 4 days | |||
Shares upon exercise of options exercisable as of December 31, 2013 | 1,440,143 | 1,364,620 | 819,869 | |
$23.31-27.58 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise Prices, minimum | 23.31 | |||
Exercise Prices, maximum | 27.58 | |||
Options outstanding | 214,819 | |||
Weighted average remaining contractual life of options outstanding | 6 years 5 months 5 days | |||
Shares upon exercise of options exercisable as of December 31, 2013 | 143,636 | |||
$16.20-17.07 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise Prices, minimum | 16.2 | |||
Exercise Prices, maximum | 17.07 | |||
Options outstanding | 335,241 | |||
Weighted average remaining contractual life of options outstanding | 6 years 10 months 2 days | |||
Shares upon exercise of options exercisable as of December 31, 2013 | 209,283 | |||
$10.16-15.43 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise Prices, minimum | 10.16 | |||
Exercise Prices, maximum | 15.43 | |||
Options outstanding | 1,287,222 | |||
Weighted average remaining contractual life of options outstanding | 8 years 3 months 14 days | |||
Shares upon exercise of options exercisable as of December 31, 2013 | 513,493 | |||
$5.25-9.25 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise Prices, minimum | 5.25 | |||
Exercise Prices, maximum | 9.25 | |||
Options outstanding | 214,958 | |||
Weighted average remaining contractual life of options outstanding | 5 years 7 months 2 days | |||
Shares upon exercise of options exercisable as of December 31, 2013 | 214,958 | |||
$0.03-4.95 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise Prices, minimum | 0.03 | |||
Exercise Prices, maximum | 4.95 | |||
Options outstanding | 479,141 | |||
Weighted average remaining contractual life of options outstanding | 5 years 10 months 24 days | |||
Shares upon exercise of options exercisable as of December 31, 2013 | 358,773 |
SHAREHOLDERS_EQUITY_Summary_of
SHAREHOLDERS' EQUITY (Summary of Restricted Stock Unit Activity) (Details) (Restricted Stock Units [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Restricted Stock Units [Member] | |
Number of Shares Underlying Outstanding | |
Outstanding at beginning of year | 14,208 |
Granted | 561,873 |
Vested | -89,437 |
Forfeited | -41,380 |
Outstanding at end of year | 445,264 |
Weighted-Average Grant Date Fair Value | |
Outstanding at beginning of year | $13.57 |
Granted | $12.96 |
Vested | $14.68 |
Forfeited | $15.13 |
Outstanding at end of year | $12.43 |
TAXES_ON_INCOME_Narrative_Deta
TAXES ON INCOME (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Rate | Rate | Rate | |
Taxes on Income [Line Items] | |||
Israeli Income tax rate | 26.50% | 25.00% | 25.00% |
Tax-exempt period | 2 years | ||
Dividend, withholding tax rate | 15.00% | ||
Patent use right, period | 8 years | ||
Expense deductible period | 3 years | ||
Net operating loss carry forwards | $39,000 | ||
Net operating loss offset limitation, percentage of accumulated losses | 14.00% | ||
Net operating loss offset limitation, percentage of taxable income | 50.00% | ||
Capital loss carry forwards | 27,316 | ||
Provision | 279 | 174 | |
Israeli resident corporation [Member] | |||
Taxes on Income [Line Items] | |||
Dividend, withholding tax rate | 0.00% | ||
Israeli resident individual [Member] | |||
Taxes on Income [Line Items] | |||
Dividend, withholding tax rate | 20.00% | 15.00% | |
non-Israeli resident [Member] | |||
Taxes on Income [Line Items] | |||
Dividend, withholding tax rate | 20.00% | 15.00% | |
United States of America [Member] | |||
Taxes on Income [Line Items] | |||
Net operating loss carry forwards | 2,778 | ||
Excess tax deductions from stock options | 1,519 | ||
France [Member] | |||
Taxes on Income [Line Items] | |||
Net operating loss carry forwards | $4,441 | ||
Development Zone A [Member] | |||
Taxes on Income [Line Items] | |||
Israeli Income tax rate | 9.00% | 7.00% | |
Outside Development Zone [Member] | |||
Taxes on Income [Line Items] | |||
Israeli Income tax rate | 16.00% | 12.50% | |
Commencement of production [Member] | |||
Taxes on Income [Line Items] | |||
Tax benefit period | 12 years | ||
Approval date [Member] | |||
Taxes on Income [Line Items] | |||
Tax benefit period | 14 years | ||
2014 [Member] | Outside Development Zone [Member] | |||
Taxes on Income [Line Items] | |||
Israeli Income tax rate | 16.00% | ||
Minimum [Member] | |||
Taxes on Income [Line Items] | |||
Change in corporate tax rate | 10.00% | ||
Tax-exempt period | 5 years | ||
Minimum [Member] | United States of America [Member] | |||
Taxes on Income [Line Items] | |||
Expiration of operating loss carry forward | 31-Dec-24 | ||
Maximum [Member] | |||
Taxes on Income [Line Items] | |||
Change in corporate tax rate | 25.00% | ||
Tax-exempt period | 8 years | ||
Maximum [Member] | United States of America [Member] | |||
Taxes on Income [Line Items] | |||
Expiration of operating loss carry forward | 31-Dec-32 |
TAXES_ON_INCOME_Schedule_of_Pr
TAXES ON INCOME (Schedule of Pre-tax Income (Loss)) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
TAXES ON INCOME [Abstract] | |||
Domestic | ($3,792) | ($6,556) | ($2,372) |
Foreign | 1,345 | 219 | -5,292 |
Pre-tax income (loss) | ($2,447) | ($6,337) | ($7,664) |
TAXES_ON_INCOME_Schedule_of_th
TAXES ON INCOME (Schedule of the Reconciliation of the Theoretical Tax Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Rate | Rate | Rate | |
TAXES ON INCOME [Abstract] | |||
Loss before taxes on income | ($2,447) | ($6,337) | ($7,664) |
Theoretical tax expense computed at the Israeli statutory tax rate (26.5%, 25% and 25% for the years 2014, 2013 and 2012, respectively) | -649 | -1,584 | -1,916 |
Changes in valuation allowance | -1,279 | 931 | -1,554 |
Increase (decrease) in losses and temporary differences due to change in Israeli corporate " and Approved Enterprise" tax | -49 | 3,056 | -7,073 |
Increase (decrease) in valuation allowance related to losses and temporary differences due to change in Israeli corporate " and Approved Enterprise" tax | 49 | -3,056 | 7,073 |
Taxes with respect to prior years | 2 | ||
Increase in deferred tax assets related to losses and temporary differences due to changes in tax rates and different basis of measurement | 562 | -594 | |
Non-deductible expenses and other | -415 | -223 | 1,699 |
Non-deductible share-based compensation expense | 1,831 | 1,590 | 833 |
Exchange rate differences | 10 | ||
Actual tax expense (benefit) | $50 | $120 | ($926) |
Israeli Income tax rate | 26.50% | 25.00% | 25.00% |
TAXES_ON_INCOME_Schedule_of_In
TAXES ON INCOME (Schedule of Income Tax Expense (Benefit)) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
TAXES ON INCOME [Abstract] | |||
Current taxes (benefit) | $612 | $408 | ($2) |
Deferred taxes (benefit) | -562 | -288 | -926 |
Taxes in respect of prior years | 2 | ||
Actual tax expense (benefit) | $50 | $120 | ($926) |
TAXES_ON_INCOME_Schedule_of_De
TAXES ON INCOME (Schedule of Deferred Income Taxes) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Operating and capital loss carry forward | $13,103 | $14,567 |
Reserves and allowances | 1,183 | 785 |
Deferred tax asset before valuation allowance | 14,286 | 15,352 |
Valuation allowance | -11,408 | -12,736 |
Net deferred tax asset | 2,878 | 2,616 |
Deferred tax liability | -309 | -609 |
Net deferred tax asset | $2,569 | $2,007 |
GEOGRAPHIC_INFORMATION_Schedul
GEOGRAPHIC INFORMATION (Schedule of Revenue by Geographic Location) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | $117,186 | $96,545 | $104,752 |
Europe [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 41,238 | 35,143 | 39,655 |
Asia and Oceania [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 41,990 | 29,909 | 21,953 |
Middle East and Africa [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 15,352 | 4,820 | 10,565 |
United States of America [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 15,307 | 21,350 | 24,674 |
Americas (excluding United States of America) [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | $3,299 | $5,323 | $7,905 |
GEOGRAPHIC_INFORMATION_Schedul1
GEOGRAPHIC INFORMATION (Schedule of Major Customers) (Details) (Sales [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 44.00% | 45.00% | 14.00% |
Customer A [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 27.00% | 17.00% | 14.00% |
Customer B [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 17.00% | 17.00% | |
Customer C [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 11.00% |
GEOGRAPHIC_INFORMATION_Schedul2
GEOGRAPHIC INFORMATION (Schedule of Long-Lived Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Long-lived assets | $5,957 | $5,874 |
Israel [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Long-lived assets | 5,603 | 4,680 |
United States of America [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Long-lived assets | 181 | 987 |
Other [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Long-lived assets | $173 | $207 |
FINANCIAL_INCOME_NET_Details
FINANCIAL INCOME, NET (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financial income: | |||
Interest income | $1,900 | $1,358 | $1,746 |
Financial expenses: | |||
Exchange rate differences and other | 174 | 47 | 176 |
Amortization/accretion of premium/discount on marketable securities , net | 1,066 | 584 | 212 |
Financial and other expenses, total | $660 | $727 | $1,358 |
EARNINGS_PER_SHARE_Schedule_of
EARNINGS PER SHARE (Schedule of Basic and Diluted Net Earnings (loss) Per Share) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator: | |||
Net loss | ($2,497) | ($6,457) | ($6,738) |
Weighted average number of shares used in per share computations of net earnings (loss): | |||
Weighted average number of shares outstanding used in computing basic net earnings per share | 33,143,168 | 32,680,766 | 31,959,921 |
Dilutive effect: stock options | |||
Total weighted average number of shares used in computing diluted net earnings per share | 33,143,168 | 32,680,766 | 31,959,921 |
Basic and diluted | ($0.08) | ($0.20) | ($0.21) |
EARNINGS_PER_SHARE_Summary_of_
EARNINGS PER SHARE (Summary of Shares Excluded From Computation of Diluted Net Loss Per Ordinary) (Details) (Ordinary shares [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Ordinary shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of shares excluded from computation of diluted net loss per share | 2,300,425 | 2,018,751 | 1,009,012 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) | 12 Months Ended | 1 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2015 | Feb. 28, 2015 | |
USD ($) | USD ($) | USD ($) | Subsequent Event [Member] | Subsequent Event [Member] | |
Optenet SA [Member] | Optenet SA [Member] | ||||
USD ($) | EUR (€) | ||||
Subsequent Event [Line Items] | |||||
Cash consideration | $24,892,000 | $6,700,000 | € 5,900,000 | ||
Deferred purchase price | 5,700,000 | 5,000,000 | |||
Period in which deferred purchase price to be paid | 2 years | 2 years | |||
Period of performance based earn-out | 5 years | 5 years | |||
Amount of performance based earn out liability | $0 | $1,088,000 | $25,600,000 | € 22,500,000 |