SolarEdge (SEDG) 10-Q 10 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 01, 2017
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Entity Registrant Name	SolarEdge Technologies Inc
Entity Central Index Key	1,419,612
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		41,554,048

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
CURRENT ASSETS:
Cash and cash equivalents	$ 119,933	$ 104,683
Restricted cash	991	897
Marketable Securities	81,800	74,465
Trade receivables, net	79,268	71,041
Prepaid expenses and other accounts receivable	26,561	21,347
Inventories	60,913	67,363
Total current assets	369,466	339,796
LONG-TERM ASSETS:
Marketable securities	44,893	44,262
Property, equipment and intangible assets, net	37,933	37,381
Prepaid expenses and lease deposits	594	489
Deferred tax assets, net	4,084	2,815
Total long term assets	87,504	84,947
Total assets	456,970	424,743
CURRENT LIABILITIES:
Trade payables, net	43,740	34,001
Employees and payroll accruals	11,767	13,018
Warranty obligations	12,895	13,616
Deferred revenues	1,025	1,202
Accrued expenses and other accounts payable	9,189	8,648
Total current liabilities	78,616	70,485
LONG-TERM LIABILITIES
Warranty obligations	48,230	44,759
Deferred revenues	20,902	18,660
Lease incentive obligation	1,987	2,061
Total long-term liabilities	71,119	65,480
COMMITMENTS AND CONTINGENT LIABILITIES
STOCKHOLDERS` EQUITY:
Common stock of $0.0001 par value - Authorized: 125,000,000 shares as of March 31, 2017 (unaudited) and December 31, 2016; issued and outstanding: 41,532,545 and 41,259,391 shares as of March 31, 2017 (unaudited) and December 31, 2016, respectively.	4	4
Additional paid-in capital	311,081	307,098
Accumulated other comprehensive loss	(25)	(324)
Accumulated deficit	(3,825)	(18,000)
Total stockholders' equity	307,235	288,778
Total liabilities and stockholders' equity	$ 456,970	$ 424,743

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, authorized shares	125,000,000	125,000,000
Common stock, issued shares	41,532,545	41,259,391
Common stock, outstanding shares	41,532,545	41,259,391

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Revenues	$ 115,054	$ 125,205
Cost of revenues	76,378	84,471
Gross profit	38,676	40,734
Operating expenses:
Research and development, net	11,458	8,709
Sales and marketing	10,775	8,826
General and administrative	4,439	3,460
Total operating expenses	26,672	20,995
Operating income	12,004	19,739
Financial income, net	1,410	2,029
Income before taxes on income	13,414	21,768
Tax benefit (taxes on income)	761	(969)
Net income	$ 14,175	$ 20,799
Net basic earnings per share of common stock	$ 0.34	$ 0.52
Net diluted earnings per share of common stock	$ 0.32	$ 0.47
Weighted average number of shares used in computing net basic earnings per share of common stock	41,348,225	40,362,093
Weighted average number of shares used in computing net diluted earnings per share of common stock	43,837,505	44,577,901

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 14,175	$ 20,799
Available-for-sale securities:
Changes in unrealized gains, net of tax benefit	28	87
Reclassification adjustments for losses included in net income		1
Net change	28	88
Cash flow hedges:
Changes in unrealized gains, net of tax expense	909	668
Reclassification adjustments for gains and losses, net of tax expense included in net income	(395)	(33)
Net change	514	635
Foreign currency translation adjustments, net	(243)	(13)
Total other comprehensive income	299	710
Comprehensive income	$ 14,474	$ 21,509

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows provided by operating activities:
Net income	$ 14,175	$ 20,799
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization of property, equipment and intangible assets	1,520	993
Amortization of premiums on available-for-sale marketable securities	383	174
Stock-based compensation	3,612	2,632
Deferred tax assets, net	(1,333)	(100)
Realized losses on Cash Flow Hedges		2
Changes in assets and liabilities:
Inventories	6,453	2,006
Prepaid expenses and other accounts receivable	(4,583)	6,682
Trade receivables, net	(8,070)	(9,413)
Trade payables	9,734	(16,853)
Employees and payroll accruals	(1,272)	(556)
Warranty obligations	2,750	5,765
Deferred revenues	2,060	2,496
Accrued expenses and other accounts payable	311	770
Lease incentive obligation	(74)	(55)
Net cash provided by operating activities	25,666	15,342
Cash flows used in investing activities:
Purchase of property and equipment	(1,872)	(5,909)
Decrease (increase) in restricted cash	(94)	2,473
Increase in short and long-term lease deposits	(66)	(14)
Investment in available-for-sale marketable securities	(24,070)	(36,023)
Maturities of available-for-sale marketable securities	15,665	1,000
Net cash used in investing activities	(10,437)	(38,473)
Cash flows from financing activities:
Proceeds from issuance of shares upon exercise of options	371	1,167
Net cash provided by financing activities	371	1,167
Increase (decrease) in cash and cash equivalents	15,600	(21,964)
Cash and cash equivalents at the beginning of the period	104,683	106,150
Effect of exchange rate differences on cash and cash equivalents	(350)	(116)
Cash and cash equivalents at the end of the period	$ 119,933	$ 84,070

GENERAL

GENERAL	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GENERAL	NOTE 1:- GENERAL a. SolarEdge Technologies, Inc. (the “Company”) and its subsidiaries design, develop, and sell an intelligent inverter solution designed to maximize power generation at the individual photovoltaic (“PV”) module level while lowering the cost of energy produced by the solar PV system and providing comprehensive and advanced safety features . The Company and its subsidiaries sells its products worldwide directly to large solar installers and engineering, procurement and construction firms (“EPCs”), as well as through large distributors and electrical equipment wholesalers to smaller solar installers. b. Recent accounting pronouncements: In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory (“ASU 2015-11”). The new standard applies only to inventory for which cost is determined by methods other than last-in, first-out and the retail inventory method, which includes inventory that is measured using first-in, first-out or average cost. Inventory within the scope of ASU 2015-11 is required to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. We adopted ASU 2015-11 during the first quarter of 2017, which did not have a material impact on our results of operations, cash flows or financial position. c. The significant accounting policies applied in the Company’s audited 2016 consolidated financial statements and notes thereto included in the Company’s Transition Report on Form 10-KT for transition period from July 1, 2016 to December 31, 2016 (the “2016 Form 10-KT”) are applied consistently in these financial statements. d. Basis of Presentation: The accompanying unaudited condensed In management’s opinion, the Company has made all adjustments (consisting only of normal, recurring adjustments, except as otherwise indicated) necessary to fairly present its condensed e. The Company depends on two contract manufacturers and several limited or single source component suppliers. Currently, the Company has entered into an agreement with a third manufacturer and is in the process of transitioning manufacturing from one manufacturer to another . During Company rely These vendors collectively account for 66.4% and 61% of the Company’s total trade payables as of March 31, 2017 (unaudited) and December 31, 2016, respectively. The Company has the right to offset its payables to one of its contract manufacturers against vendor non-trade receivables. As of March 31, 2017 (unaudited), a total of $2,037 of these receivables met the criteria for net recognition and were offset against the corresponding accounts payable balances for this contract manufacturer in the accompanying condensed Consolidated Balance Sheets. f. Derivative financial instruments: To protect against the increase in value of forecasted foreign currency cash flows resulting from salary and lease payments of its Israeli facilities denominated in the Israeli currency, the New Israeli Shekels (“NIS”), during the three months ended March 31, 2017, the Company instituted a foreign currency cash flow hedging program. The Company hedges portions of the anticipated payroll and lease payments denominated in NIS for a period of one to six months with hedging contracts. Accordingly, when the dollar strengthens against the foreign currencies, the decline in present value of future foreign currency expenses is offset by losses in the fair value of the hedging contracts. Conversely, when the dollar weakens, the increase in the present value of future foreign currency cash flows is offset by gains in the fair value of the hedging contracts. These hedging contracts are designated as cash flow hedges, as defined by ASC 815 and are all effective hedges. As of March 31, 2017 (unaudited), the Company entered into forward contracts to sell U.S. dollars for NIS in the amount of $9,391. These hedging contracts do not contain any credit-risk-related contingency features. See Note 4 for information on the fair value of these hedging contracts. The fair value of the Company’s outstanding derivative instruments is as follows: Three months ended March 31, Year ended December 31, 2017 2016 (unaudited) Derivative assets: Derivatives designated as cash flow hedging instruments: Foreign exchange forward contracts 579 19 Total $ 579 $ 19 The Company recorded the fair value of derivative assets and liabilities, net in “prepaid expenses and other accounts receivable” on the Company’s condensed consolidated balance sheets. The net increase in unrealized gains (losses) recognized in “accumulated other comprehensive income (loss)” on derivatives, net of tax effect, is as follows: Three months ended March 31, 2017 2016 (unaudited) Derivatives designated as cash flow hedging instruments: Foreign exchange forward contracts 909 668 The net gains reclassified from “accumulated other comprehensive income (loss)” into income (loss), are as follows: Three months ended March 31, 2017 2016 (unaudited) Derivatives designated as cash flow hedging instruments: Foreign exchange forward contracts 395 33 The Company recorded in the financial expenses, a net loss of $81 during the three months ended March 31, 2016 (unaudited), related to derivatives not qualified as hedging instruments. No such expenses were recorded in the three months ended March 31, 2017 (unaudited). g. Accumulated other comprehensive income: The following table summarizes the changes in accumulated balances of other comprehensive income (loss), net of taxes, for the three months ended March 31, 2017 (unaudited): Unrealized gains (losses) on available-for-sale marketable securities Unrealized gains (losses) on cash flow hedges Unrealized gains (losses) on foreign currency translation Total Beginning balance $ (136 ) $ 19 $ (207 ) $ (324 ) Other comprehensive income (loss) before reclassifications 28 909 (243 ) 694 Losses (gains) reclassified from accumulated other comprehensive income (loss) - (395 ) - (395 ) Net current period other comprehensive income (loss) 28 514 (243 ) 299 Ending balance $ (108 ) $ 533 $ (450 ) $ (25 ) The following table summarizes the changes in accumulated balances of other comprehensive loss, net of taxes, for the three months ended March 31, 2016 (unaudited): Unrealized gains (losses) on available-for-sale marketable securities Unrealized gains (losses) on cash flow hedges Unrealized gains (losses) on foreign currency translation Total Beginning balance $ (81 ) $ 75 $ (287 ) $ (293 ) Other comprehensive income (loss) before reclassifications 87 668 (13 ) 742 Losses (gains) reclassified from accumulated other comprehensive income (loss) 1 (33 ) - (32 ) Net current period other comprehensive income (loss) 88 635 (13 ) 710 Ending balance $ 7 $ 710 $ (300 ) $ 417 The Details about Accumulated Other Comprehensive Amount Reclassified from Income (Loss) Affected Line Item in the Statements of Operations Three months ended March 31, 2017 Unrealized gains on cash flow hedges, net 58 Cost of revenues 207 Research and development 59 Sales and marketing 71 General and administrative 395 Total, before income taxes - Income tax expense (benefit) 395 Total, net of income taxes For the three months period, ended March 31, 2016 (unaudited), $33 was reclassified from accumulated other comprehensive income.

INVENTORIES

INVENTORIES	3 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 2:- INVENTORIES March 31, 2017 December 31, 2016 (unaudited) Raw materials $ 13,632 $ 10,053 Finished goods 47,281 57,310 $ 60,913 $ 67,363

WARRANTY OBLIGATIONS

WARRANTY OBLIGATIONS	3 Months Ended
	Mar. 31, 2017
Product Warranties Disclosures [Abstract]
WARRANTY OBLIGATIONS	NOTE 3:- WARRANTY OBLIGATIONS Changes in the Company’s product warranty liability for the three months ended March 31, 2017 and 2016 were as follows: Three months ended March 31, 2017 2016 (unaudited) Balance, at beginning of period $ 58,375 $ 40,894 Additions and adjustments to cost of revenues 5,498 8,002 Usage and current warranty expenses (2,748 ) (2,237 ) Balance, at end of period 61,125 46,659 Less current portion (12,895 ) (13,510 ) Long term portion $ 48,230 $ 33,149

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	NOTE 4:- FAIR VALUE MEASUREMENTS The Company applies ASC 820 (“Fair Value Measurements and Disclosures”), with respect to fair value measurements of all financial assets and liabilities. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tiered fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: Level 1- Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2- Include other inputs that are directly or indirectly observable in the marketplace. Level 3- Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The following table sets forth the Company’s assets that were measured at fair value as of March 31, 2017 (unaudited) by level within the fair value hierarchy: Balance as of Fair value measurements Description March 31, 2017 Level 1 Level 2 Level 3 Cash equivalents: Money market mutual funds $ 8,747 $ 8,747 - - Derivative instruments asset $ 579 - $ 579 - Short-term marketable securities: Corporate bonds $ 76,042 - $ 76,042 - Governmental bonds $ 5,758 - $ 5,758 - Long-term marketable securities: Corporate bonds $ 40,901 - $ 40,901 - Governmental bonds $ 3,992 - $ 3,992 - The following table sets forth the Company’s assets that were measured at fair value as of December 31, 2016 by level within the fair value hierarchy: Balance as of Fair value measurements Description December 31, 2016 Level 1 Level 2 Level 3 Cash equivalents: Money market mutual funds $ 6,510 $ 6,510 - - Derivative instruments asset $ 19 - $ 19 - Short-term marketable securities: Corporate bonds $ 71,719 - $ 71,719 - Governmental bonds $ 2,746 - $ 2,746 - Long-term marketable securities: Corporate bonds $ 39,279 - $ 39,279 - Governmental bonds $ 4,983 - $ 4,983 - In addition to the assets described above, the Company’s financial instruments also include cash and cash equivalents, restricted and short-term deposits, trade receivables, other accounts receivable, trade payables, accrued expenses and other payables. The fair value of these financial instruments was not materially different from their carrying values on March 31, 2017 due to the short-term maturity of these instruments.

COMMITMENTS AND CONTINGENT LIAB

COMMITMENTS AND CONTINGENT LIABILITIES	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENT LIABILITIES	NOTE 5:- COMMITMENTS AND CONTINGENT LIABILITIES a. Guarantees: As of March 31, 2017 (unaudited), contingent liabilities exist regarding guarantees in the amount of $831, $55 and $176 in respect of office rent lease agreements, customs transactions and credit card limits, respectively. b. Royalty and Governmental commitments: As of March 31, 2017 (unaudited), the aggregate contingent liability to the Binational Industrial Research and Development Foundation (BIRD‑F) amounted to approximately $1,158 which amount would be payable by the Company if it ever did generate revenues from such project. The Company’s Israeli subsidiary receives research and development grants from the Office of the Chief Scientist (the OCS). In consideration for the research and development grants received from the OCS, the Company has undertaken to pay royalties as a percentage of revenues from products developed from research and development projects financed. If the Company will not generate sales of products developed with funds provided by the OCS, the Company is not obligated to pay royalties or repay the grants. Royalties are payable at the rate of 4% to 4.5% from the time of commencement of sales of all of these products until the cumulative amount of the royalties paid equals 100% of the dollar-linked amounts of the grants received, plus interest at LIBOR rate. As of March 31, 2017 (unaudited), the aggregate contingent liability to the OCS amounted to $477. c. Contractual purchase obligations: The Company has contractual obligations to purchase goods and raw materials. These contractual purchase obligations relate to inventories held by contract manufacturers and purchase orders initiated by the contract manufacturers and suppliers, which cannot be canceled without penalty. The Company utilizes third parties to manufacture its products. In addition, it acquires raw materials or other goods and services, including product components, by issuing to suppliers authorizations to purchase based on its projected demand and manufacturing needs. As of March 31, 2017 (unaudited), the Company had non-cancelable purchase obligations totaling approximately $77,542 out of which the Company already recorded a provision for loss in the amount of $1,207. d. Legal claims: From time to time, the Company may be involved in various claims and legal proceedings. The Company reviews the status of each matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss. These accruals are reviewed at least quarterly and adjusted to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter.

STOCK CAPITAL

STOCK CAPITAL	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK CAPITAL	NOTE 6:- STOCK CAPITAL a. Common Stock: Authorized Issued and outstanding Number of shares March 31, 2017 December 31, 2016 March 31, 2017 December 31, 2016 (unaudited) (unaudited) Stock of $0.0001 par value: Common stock 125,000,000 125,000,000 41,532,545 41,259,391 b. Stock Incentive plans: The Company’s 2007 Global Incentive Plan (the “2007 Plan”) was adopted by the board of directors on August 30, 2007. On March 31, 2015, once the Company completed its Initial Public Offering (“IPO”), the 2007 Plan has been terminated and no further awards will be granted thereunder. All outstanding awards will continue to be governed by their existing terms and 379,358 available options for future grant were transferred to the Company’s 2015 Global Incentive Plan (the “2015 Plan”) and are reserved for future issuances under the 2015 plan. The 2015 Plan became effective upon the consummation of the IPO. The 2015 Plan provides for the grant of options, RSUs and other share-based awards to directors, employees, officers and consultants of the Company and its Subsidiaries. As of March 31, 2017 (unaudited), a total of 5,890,087 (unaudited) shares of common stock were reserved for issuance under the 2015 Plan (the “Share Reserve”). The Share Reserve will automatically increase on January 1st of each year during the term of the 2015 Plan commencing on January 1st of the year following the year in which the 2015 Plan becomes effective in an amount equal to five percent (5%) of the total number of shares of capital stock outstanding on December 31st of the preceding calendar year; provided, however, that our board of directors may provide that there will not be a January 1st increase in the Share Reserve in a given year or that the increase will be less than five percent (5%) of the shares of capital stock outstanding on the preceding December 31st . The aggregate maximum number of shares of common stock that may be issued on the exercise of incentive stock options is ten million (10,000,000). As of March 31, 2017 (unaudited), an aggregate of 2,686,604 shares of common stock are still available for future grant under the 2015 Plan. c. Options granted to employees A summary of the activity in the share options granted to employees and members of the board of directors for the three months ended March 31, 2017 (unaudited) and related information follows: Weighted average Number Weighted remaining of average contractual Aggregate Options / exercise term intrinsic RSUs price in years Value Outstanding as of December 31, 2016 4,864,469 5.05 6.24 39,585 Granted 445,680 14.64 Exercised (118,698 ) 2.91 Forfeited or expired (5,364 ) 4.50 Outstanding as of March 31, 2017 5,186,087 5.93 6.35 52,626 Vested and expected to vest as of March 31, 2017 5,056,663 5.83 6.31 51,749 Exercisable as of March 31, 2017 3,450,219 3.73 5.31 41,823 The aggregate intrinsic value represents the total intrinsic value (the difference between the fair value of the Company’s common stock as of the last day of each period 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 the last day of each period. The total intrinsic value of options exercised during the three months ended on March 31, 2017 (unaudited) was $1,419. The weighted average grant date fair values of options granted to employees and executive directors during the three months ended March 31, 2017 (unaudited) was $7.94. d. A summary of the activity in the RSUs granted to employees and members of the board of directors for the three months ended (unaudited) is as follows: No. of RSUs Weighted average fair value Unvested as of December 31, 2016 1,515,018 19.74 Granted 471,973 14.61 Vested (144,372 ) 21.74 Forfeited (39,219 ) 18.21 Unvested as of 1,803,400 18.34 e. Options and RSUs issued to non-employee consultants: The Company has granted options and RSUs to purchase common shares to non-employee consultants as of March 31, 2017 (unaudited) Outstanding Exercisable as of as of Issuance March 31, Exercise March 31, Exercisable Date 2017 price 2017 Through July 31, 2008 33,333 0.87 33,333 July 31, 2018 October 24, 2012 3,000 2.46 3,000 October 24, 2022 January 23, 2013 3,333 3.03 3,333 January 23, 2023 January 27, 2014 2,748 3.51 1,443 January 27, 2024 May 1, 2014 3,250 3.51 1,917 May 1, 2024 September 17, 2014 9,615 3.96 6,284 September 17, 2024 October 29, 2014 3,668 5.01 222 October 29, 2024 August 19, 2015 15,940 0.00 - November 8, 2015 2,230 0.00 - April 18, 2016 1,875 0.00 - July 11, 2016 2,001 0.00 - September 21, 2016 4,000 15.34 500 September 21, 2026 September 21, 2016 6,125 0.00 - March 15, 2017 8,000 0.00 - March 15, 2017 8,000 13.70 - March 15, 2027 March 27, 2017 4,000 0.00 - 111,118 50,032 The Company had accounted for its options and RSUs granted to non-employee consultants under the fair value method of ASC 505-50. In connection with the grant of stock options and RSUs to non‑employee consultants, the Company recorded stock compensation expenses in the three months ended March 31, 2017 (unaudited) (unaudited) f. Employee Stock Purchase Plan (“ESPP”): The Company adopted an Employee Stock Purchase Plan (the “ESPP”) effective upon the consummation of the IPO. As of March 31, 2017 (unaudited), a total of 1,301,154 shares were reserved for issuance under this plan. The number of shares of common stock reserved for issuance under the ESPP will increase automatically on January 1st of each year, for ten years, by the lesser of 1% of the total number of shares of the Company’s common stock outstanding on December 31st of the preceding calendar year or 487,643 shares. However, the Company’s board of directors may reduce the amount of the increase in any particular year at their discretion, including a reduction to zero. The ESPP is implemented through an offering every six months. According to the ESPP, eligible employees may use up to 10% of their salaries to purchase common stock shares up to an aggregate limit of $10 per participant for every six months plan. The price of an ordinary share purchased under the ESPP is equal to 85% of the lower of the fair market value of the ordinary share on the subscription date of each offering period or on the purchase date As of March 31, 2017 (unaudited), 83,319 common stock shares had been purchased under the ESPP. As of March 31, 2017 (unaudited), 1,217,835 common stock shares were available for future issuance under the ESPP. In accordance with ASC No. 718, the ESPP is compensatory and as such results in recognition of compensation cost. g. Stock-based compensation expense for employees and consultants: The Company recognized stock-based compensation expenses related to stock options and RSUs granted to employees and non-employees and ESPP in the condensed consolidated statement of operations for the three months ended on March 31, 2017 (unaudited) and 2016 (unaudited), as follows: Three months ended March 31, 2017 Three months ended March 31, 2016 Cost of revenues $ 493 $ 246 Research and development 1,205 724 Selling and marketing 1,030 842 General and administrative 884 819 Total stock-based compensation expense $ 3,612 $ 2,631 As of March 31, 2017 (unaudited),

BASIC AND DILUTED NET EARNINGS

BASIC AND DILUTED NET EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
BASIC AND DILUTED NET EARNINGS PER SHARE	NOTE 7:- BASIC AND DILUTED NET EARNINGS PER SHARE Basic net earnings per share is computed by dividing the net earnings by the weighted-average number of shares of common stock outstanding during the period. The total weighted average number of shares related to the outstanding stock options, excluded from the calculation of diluted net earnings per share due to their anti-dilutive effect was 590,115 and 0 for the three months ended March 31, 2017 (unaudited) and 2016 (unaudited), respectively. The following table presents the computation of basic and diluted net earnings per share for the periods presented (in thousands, except per share data): Three months ended March 31, 2017 2016 (unaudited) Numerator: Net income 14,175 20,799 Denominator: Shares used in computing net earnings per share of common stock, basic 41,348,225 40,362,093 Effect of stock-based awards 2,489,280 4,215,808 Shares used in computing net earnings per share of common stock, diluted 43,837,505 44,577,901 Basic net income per share $ 0.34 $ 0.52 Diluted net income per share $ 0.32 $ 0.47

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2017
Income Taxes
INCOME TAXES	NOTE 8:- INCOME TAXES a. Taxes on income (tax benefit) are comprised as follows: Three months ended March 31, 2017 2016 Unaudited Current year taxes $ 1,069 $ 1,069 Deferred tax income and others (1,830 ) (100 ) Taxes on income (tax benefit) $ (761 ) $ 969 b. Deferred income taxes: Deferred income taxes reflect the net tax effect 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 tax liabilities and assets are as follows: March 31, December 31, 2017 2016 (Unaudited) Assets in respect of: Research and Development carryforward expenses- temporary differences $ 1,792 $ 908 Stock based compensation 1,279 1,039 Other reserves 1,013 868 Net deferred tax assets $ 4,084 $ 2,815 During fiscal year 2016, the Company determined that the positive evidence outweighs the negative evidence for deferred tax assets and concluded that these deferred tax assets are realizable on a "more likely than not" basis. This determination was mainly due to expected future results of positive operations and earnings history. c. Uncertain tax positions: The Company recognized a total liability for uncertain tax positions in the amount of $264 as of March 31, 2017.

CONCENTRATION OF CREDIT RISK AN

CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS	3 Months Ended
	Mar. 31, 2017
Risks and Uncertainties [Abstract]
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS	NOTE 9:- CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS a. For the three month period ended March 31, 2017 (unaudited) and 2016 (unaudited), the Company had one and two major customers that accounted for 12.74% and 26.71% of its condensed consolidated revenues, respectively. b. As of March 31, 2017 (unaudited), one customer accounted for approximately 16.57% of the Company’s net accounts receivable and as of December 31, 2016, three major customers accounted for approximately 20.15% of the Company’s net accounts receivable.

GENERAL (Tables)

GENERAL (Tables)	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Fair Value of Derivative Instruments	Three months ended March 31, Year ended December 31, 2017 2016 (unaudited) Derivative assets: Derivatives designated as cash flow hedging instruments: Foreign exchange forward contracts 579 19 Total $ 579 $ 19
Schedule of Unrealized Gains (Losses) on Derivatives	Three months ended March 31, 2017 2016 (unaudited) Derivatives designated as cash flow hedging instruments: Foreign exchange forward contracts 909 668
Schedule of Derivative Gains (Losses) Reclassified From OCI Into Income	Three months ended March 31, 2017 2016 (unaudited) Derivatives designated as cash flow hedging instruments: Foreign exchange forward contracts 395 33
Schedule of Changes in AOCI	The following table summarizes the changes in accumulated balances of other comprehensive income (loss), net of taxes, for the three months ended March 31, 2017 (unaudited): Unrealized gains (losses) on available-for-sale marketable securities Unrealized gains (losses) on cash flow hedges Unrealized gains (losses) on foreign currency translation Total Beginning balance $ (136 ) $ 19 $ (207 ) $ (324 ) Other comprehensive income (loss) before reclassifications 28 909 (243 ) 694 Losses (gains) reclassified from accumulated other comprehensive income (loss) - (395 ) - (395 ) Net current period other comprehensive income (loss) 28 514 (243 ) 299 Ending balance $ (108 ) $ 533 $ (450 ) $ (25 ) The following table summarizes the changes in accumulated balances of other comprehensive loss, net of taxes, for the three months ended March 31, 2016 (unaudited): Unrealized gains (losses) on available-for-sale marketable securities Unrealized gains (losses) on cash flow hedges Unrealized gains (losses) on foreign currency translation Total Beginning balance $ (81 ) $ 75 $ (287 ) $ (293 ) Other comprehensive income (loss) before reclassifications 87 668 (13 ) 742 Losses (gains) reclassified from accumulated other comprehensive income (loss) 1 (33 ) - (32 ) Net current period other comprehensive income (loss) 88 635 (13 ) 710 Ending balance $ 7 $ 710 $ (300 ) $ 417
Schedule of Reclassifications out of AOCI	Details about Accumulated Other Comprehensive Amount Reclassified from Income (Loss) Affected Line Item in the Statements of Operations Three months ended March 31, 2017 Unrealized gains on cash flow hedges, net 58 Cost of revenues 207 Research and development 59 Sales and marketing 71 General and administrative 395 Total, before income taxes - Income tax expense (benefit) 395 Total, net of income taxes

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
Schedule of Inventories	March 31, 2017 December 31, 2016 (unaudited) Raw materials $ 13,632 $ 10,053 Finished goods 47,281 57,310 $ 60,913 $ 67,363

WARRANTY OBLIGATIONS (Tables)

WARRANTY OBLIGATIONS (Tables)	3 Months Ended
	Mar. 31, 2017
Product Warranties Disclosures [Abstract]
Schedule of Warranty Obligations	Three months ended March 31, 2017 2016 (unaudited) Balance, at beginning of period $ 58,375 $ 40,894 Additions and adjustments to cost of revenues 5,498 8,002 Usage and current warranty expenses (2,748 ) (2,237 ) Balance, at end of period 61,125 46,659 Less current portion (12,895 ) (13,510 ) Long term portion $ 48,230 $ 33,149

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Schedule of Assets and Liabilities Measured at Fair Value	The following table sets forth the Company’s assets that were measured at fair value as of March 31, 2017 (unaudited) by level within the fair value hierarchy: Balance as of Fair value measurements Description March 31, 2017 Level 1 Level 2 Level 3 Cash equivalents: Money market mutual funds $ 8,747 $ 8,747 - - Derivative instruments asset $ 579 - $ 579 - Short-term marketable securities: Corporate bonds $ 76,042 - $ 76,042 - Governmental bonds $ 5,758 - $ 5,758 - Long-term marketable securities: Corporate bonds $ 40,901 - $ 40,901 - Governmental bonds $ 3,992 - $ 3,992 - The following table sets forth the Company’s assets that were measured at fair value as of December 31, 2016 by level within the fair value hierarchy: Balance as of Fair value measurements Description December 31, 2016 Level 1 Level 2 Level 3 Cash equivalents: Money market mutual funds $ 6,510 $ 6,510 - - Derivative instruments asset $ 19 - $ 19 - Short-term marketable securities: Corporate bonds $ 71,719 - $ 71,719 - Governmental bonds $ 2,746 - $ 2,746 - Long-term marketable securities: Corporate bonds $ 39,279 - $ 39,279 - Governmental bonds $ 4,983 - $ 4,983 -

STOCK CAPITAL (Tables)

STOCK CAPITAL (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Composition of Common Stock Capital	Authorized Issued and outstanding Number of shares March 31, 2017 December 31, 2016 March 31, 2017 December 31, 2016 (unaudited) (unaudited) Stock of $0.0001 par value: Common stock 125,000,000 125,000,000 41,532,545 41,259,391
Schedule of Stock Option Activity	Weighted average Number Weighted remaining of average contractual Aggregate Options / exercise term intrinsic RSUs price in years Value Outstanding as of December 31, 2016 4,864,469 5.05 6.24 39,585 Granted 445,680 14.64 Exercised (118,698 ) 2.91 Forfeited or expired (5,364 ) 4.50 Outstanding as of March 31, 2017 5,186,087 5.93 6.35 52,626 Vested and expected to vest as of March 31, 2017 5,056,663 5.83 6.31 51,749 Exercisable as of March 31, 2017 3,450,219 3.73 5.31 41,823
Schedule of RSU Activity	No. of RSUs Weighted average fair value Unvested as of December 31, 2016 1,515,018 19.74 Granted 471,973 14.61 Vested (144,372 ) 21.74 Forfeited (39,219 ) 18.21 Unvested as of 1,803,400 18.34
Schedule of Options and RSUs Granted to Non-Employee Consultants	Outstanding Exercisable as of as of Issuance March 31, Exercise March 31, Exercisable Date 2017 price 2017 Through July 31, 2008 33,333 0.87 33,333 July 31, 2018 October 24, 2012 3,000 2.46 3,000 October 24, 2022 January 23, 2013 3,333 3.03 3,333 January 23, 2023 January 27, 2014 2,748 3.51 1,443 January 27, 2024 May 1, 2014 3,250 3.51 1,917 May 1, 2024 September 17, 2014 9,615 3.96 6,284 September 17, 2024 October 29, 2014 3,668 5.01 222 October 29, 2024 August 19, 2015 15,940 0.00 - November 8, 2015 2,230 0.00 - April 18, 2016 1,875 0.00 - July 11, 2016 2,001 0.00 - September 21, 2016 4,000 15.34 500 September 21, 2026 September 21, 2016 6,125 0.00 - March 15, 2017 8,000 0.00 - March 15, 2017 8,000 13.70 - March 15, 2027 March 27, 2017 4,000 0.00 - 111,118 50,032
Schedule of Recognized Stock-Based Compensation Expense	Three months ended March 31, 2017 Three months ended March 31, 2016 Cost of revenues $ 493 $ 246 Research and development 1,205 724 Selling and marketing 1,030 842 General and administrative 884 819 Total stock-based compensation expense $ 3,612 $ 2,631

BASIC AND DILUTED NET EARNING21

BASIC AND DILUTED NET EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Schedule of Computation of Basic and Diluted Net Earnings (Loss) Per Share	Three months ended March 31, 2017 2016 (unaudited) Numerator: Net income 14,175 20,799 Denominator: Shares used in computing net earnings per share of common stock, basic 41,348,225 40,362,093 Effect of stock-based awards 2,489,280 4,215,808 Shares used in computing net earnings per share of common stock, diluted 43,837,505 44,577,901 Basic net income per share $ 0.34 $ 0.52 Diluted net income per share $ 0.32 $ 0.47

INCOME TAXES (Tables)

INCOME TAXES (Tables)	3 Months Ended
	Mar. 31, 2017
Income Taxes Tables
Schedule of Taxes on Income	Three months ended March 31, 2017 2016 Unaudited Current year taxes $ 1,069 $ 1,069 Deferred tax income and others (1,830 ) (100 ) Taxes on income (tax benefit) $ (761 ) $ 969
Schedule of Deferred Tax Assets and Liabilities	March 31, December 31, 2017 2016 (Unaudited) Assets in respect of: Research and Development carryforward expenses- temporary differences $ 1,792 $ 908 Stock based compensation 1,279 1,039 Other reserves 1,013 868 Net deferred tax assets $ 4,084 $ 2,815

GENERAL (Narrative) (Details)

GENERAL (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Organization Consolidation and Presentation of Financial Statements [Line Items]
Accounts receivable pledged to offset accounts payable	$ 2,037
Not Designated as Hedging Instrument [Member]
Organization Consolidation and Presentation of Financial Statements [Line Items]
Net gain (loss) on derivatives		$ 81
Foreign exchange forward contracts [Member] | Derivatives designated as cash flow hedging instruments [Member]
Organization Consolidation and Presentation of Financial Statements [Line Items]
Derivative asset, notional amount	$ 9,391
Accounts Payable [Member]
Organization Consolidation and Presentation of Financial Statements [Line Items]
Concentration risk (as a percent)	66.40%		61.00%

GENERAL (Schedule of Fair Value

GENERAL (Schedule of Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Derivative assets	$ 579	$ 19
Foreign exchange forward contracts [Member] | Derivatives designated as cash flow hedging instruments [Member]
Derivative assets	$ 579	$ 19

GENERAL (Schedule of Unrealized

GENERAL (Schedule of Unrealized Gains (Losses) on Derivatives) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Foreign exchange forward contracts [Member] | Derivatives designated as cash flow hedging instruments [Member]
Unrealized gain (loss) on derivatives	$ 909	$ 668

GENERAL (Schedule of Derivative

GENERAL (Schedule of Derivative Gains (Losses) Reclassified From OCI Into Income) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Foreign exchange forward contracts [Member] | Derivatives designated as cash flow hedging instruments [Member]
Net gain (loss) reclassified from accumulated other comprehensive income (loss)	$ 395	$ 33

GENERAL (Schedule of Changes in

GENERAL (Schedule of Changes in AOCI) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Beginning balance	$ (324)	$ (293)
Other comprehensive income (loss) before reclassifications	694	742
Losses (gains) reclassified from accumulated other comprehensive income (loss)	(395)	(32)
Net current period other comprehensive income (loss)	299	710
Ending balance	(25)	417
Unrealized gains (losses) on foreign currency translation [Member]
Beginning balance	(207)	(287)
Other comprehensive income (loss) before reclassifications	(243)	(13)
Losses (gains) reclassified from accumulated other comprehensive income (loss)
Net current period other comprehensive income (loss)	(243)	(13)
Ending balance	(450)	(300)
Unrealized gains (losses) on available-for-sale marketable securities [Member]
Beginning balance	(136)	(81)
Other comprehensive income (loss) before reclassifications	28	87
Losses (gains) reclassified from accumulated other comprehensive income (loss)		1
Net current period other comprehensive income (loss)	28	88
Ending balance	(108)	7
Unrealized gains (losses) on cash flow hedges [Member]
Beginning balance	19	75
Other comprehensive income (loss) before reclassifications	909	668
Losses (gains) reclassified from accumulated other comprehensive income (loss)	(395)	(33)
Net current period other comprehensive income (loss)	514	635
Ending balance	$ 533	$ 710

GENERAL (Schedule of Reclassifi

GENERAL (Schedule of Reclassifications out of AOCI) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cost of revenues	$ 76,378	$ 84,471
Research and development	11,458	8,709
Sales and marketing	10,775	8,826
General and administrative	4,439	3,460
Total, before income taxes	13,414	21,768
Income tax expense (benefit)	(761)	969
Total, net of income taxes	14,175	20,799
Total amount reclassified from accumulated other comprehensive income		$ 33
Unrealized gains on cash flow hedges, net [Member] | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) [Member]
Cost of revenues	58
Research and development	207
Sales and marketing	59
General and administrative	71
Total, before income taxes	395
Income tax expense (benefit)
Total, net of income taxes	$ 395

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 13,632	$ 10,053
Finished goods	47,281	57,310
Inventories	$ 60,913	$ 67,363

WARRANTY OBLIGATIONS (Details)

WARRANTY OBLIGATIONS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Changes in the Company's product warranty liability
Balance, at beginning of period	$ 58,375	$ 40,894
Additions and adjustments to cost of revenues	5,498	8,002
Usage and current warranty expenses	(2,748)	(2,237)
Balance, at end of period	61,125	46,659
Less current portion	(12,895)	(13,510)	$ (13,616)
Long term portion	$ 48,230	$ 33,149	$ 44,759

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Long-term marketable securities Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	$ 40,901	$ 39,279
Long-term marketable securities Governmental bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	3,992	4,983
Short-term marketable securities Governmental bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	5,758	2,746
Short-term marketable securities Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	76,042	71,719
Derivative instruments asset [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	579	19
Money market mutual funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	8,747	6,510
Level 2 [Member] | Long-term marketable securities Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	40,901	39,279
Level 2 [Member] | Long-term marketable securities Governmental bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	3,992	4,983
Level 2 [Member] | Short-term marketable securities Governmental bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	5,758	2,746
Level 2 [Member] | Short-term marketable securities Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	76,042	71,719
Level 2 [Member] | Derivative instruments asset [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	579	19
Level 2 [Member] | Money market mutual funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets
Level 1 [Member] | Long-term marketable securities Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets
Level 1 [Member] | Long-term marketable securities Governmental bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets
Level 1 [Member] | Short-term marketable securities Governmental bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets
Level 1 [Member] | Short-term marketable securities Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets
Level 1 [Member] | Derivative instruments asset [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets
Level 1 [Member] | Money market mutual funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	8,747	6,510
Level 3 [Member] | Long-term marketable securities Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets
Level 3 [Member] | Long-term marketable securities Governmental bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets
Level 3 [Member] | Short-term marketable securities Governmental bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets
Level 3 [Member] | Short-term marketable securities Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets
Level 3 [Member] | Derivative instruments asset [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets
Level 3 [Member] | Money market mutual funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets

COMMITMENTS AND CONTINGENT LI32

COMMITMENTS AND CONTINGENT LIABILITIES (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Royalties, threshold percentage of dollar linked amounts	100.00%
Non-cancelable purchase obligations	$ 77,542
Provision for contractual inventory purchase obligations	$ 1,207
Maximum [Member]
Royalty percentage	4.50%
Minimum [Member]
Royalty percentage	4.00%
Office Rent Lease Agreements [Member]
Guarantees amount	$ 831
Customs Transactions [Member]
Guarantees amount	55
Credit Card Limits [Member]
Guarantees amount	176
BIRD-F [Member]
Aggregate contingent liability	1,158
OCS [Member]
Aggregate contingent liability	$ 477

STOCK CAPITAL (Narrative) (Deta

STOCK CAPITAL (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 3,612	$ 2,632
Unrecognized compensation expense	$ 42,557
2015 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options reserved for issuance under the plan	5,890,087
Number of options available for future grant under the plan	2,686,604
2015 Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual increase percentage	5.00%
ESPP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options reserved for issuance under the plan	1,301,154
Number of options available for future grant under the plan	1,217,835
Maximum number of excess shares authorized	487,643
Number of Common stock purchased	83,319
Maximum percentage of salary	10.00%
Maximum amount authorized per person	$ 10
Maximum percentage of common stock	85.00%
ESPP [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual increase percentage	1.00%
2007 Plan, Transferred to 2015 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options available for future grant under the plan	379,358
Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value of options exercised	$ 1,419
Weighted average grant date fair value of options granted	$ 7.94
Stock-based compensation	$ 127	$ 91
Option [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options available for future grant under the plan	10,000,000

STOCK CAPITAL (Schedule of Comp

STOCK CAPITAL (Schedule of Composition of Common Stock Capital) (Details) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Common stock capital
Par value	$ 0.0001	$ 0.0001
Authorized	125,000,000	125,000,000
Common stock, issued shares	41,532,545	41,259,391
Common stock, outstanding shares	41,532,545	41,259,391

STOCK CAPITAL (Schedule of Stoc

STOCK CAPITAL (Schedule of Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Restricted Stock Units (RSUs) [Member] | Employees and Members of Board of Directors [Member]
Number of Options / RSUs
Granted	471,973
Option [Member] | Employees and Members of Board of Directors [Member]
Number of Options / RSUs
Outstanding as of December 31, 2016	4,864,469
Granted	445,680
Exercised	(118,698)
Forfeited or expired	(5,364)
Outstanding as of March 31, 2017	5,186,087	4,864,469
Vested and expected to vest as of March 31, 2017	5,056,663
Exercisable as of March 31, 2017	3,450,219
Weighted average exercise price
Outstanding as of December 31, 2016	$ 5.05
Granted	14.64
Exercised	2.91
Forfeited or expired	4.50
Outstanding as of March 31, 2017	5.93	$ 5.05
Vested and expected to vest as of March 31, 2017	5.83
Exercisable as of March 31, 2017	$ 3.73
Weighted average remaining contractual term in years
Outstanding	6 years 4 months 6 days	6 years 2 months 27 days
Vested and expected to vest as of March 31, 2017	6 years 3 months 22 days
Exercisable as of March 31, 2017	5 years 3 months 22 days
Aggregate intrinsic Value
Outstanding as of December 31, 2016	$ 39,585
Outstanding as of March 31, 2017	52,626	$ 39,585
Vested and expected to vest as of March 31, 2017	51,749
Exercisable as of March 31, 2017	$ 41,823
Options And RSUs [Member] | Nonemployee Consultants [Member]
Number of Options / RSUs
Outstanding as of March 31, 2017	111,118
Exercisable as of March 31, 2017	50,032

STOCK CAPITAL (Schedule of RSU

STOCK CAPITAL (Schedule of RSU Activity) (Details)	3 Months Ended
	Mar. 31, 2017$ / sharesshares
Restricted Stock Units (RSUs) [Member] | Employees and Members of Board of Directors [Member]
No. of RSUs
Unvested as of December 31, 2016 | shares	1,515,018
Granted | shares	471,973
Vested | shares	(144,372)
Forfeited | shares	(39,219)
Unvested as of March 31, 2017 | shares	1,803,400
Weighted average grant date fair value
Unvested as of December 31, 2016 | $ / shares	$ 19.74
Granted | $ / shares	14.61
Vested | $ / shares	21.74
Forfeited | $ / shares	18.21
Unvested as of March 31, 2017 | $ / shares	18.34
Options [Member]
Weighted average grant date fair value
Granted | $ / shares	$ 7.94
Option [Member] | Employees and Members of Board of Directors [Member]
No. of RSUs
Granted | shares	445,680

STOCK CAPITAL (Schedule of Opti

STOCK CAPITAL (Schedule of Options and RSUs Granted to Non-Employee Consultants) (Details) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Options And RSUs [Member] | Nonemployee Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	111,118
Exercisable at the end of the period	50,032
Options And RSUs [Member] | August 19, 2015 [Member] | Nonemployee Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	15,940
Exercise price	$ 0
Exercisable at the end of the period
Options And RSUs [Member] | July 31, 2008 [Member] | Nonemployee Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	33,333
Exercise price	$ 0.87
Exercisable at the end of the period	33,333
Options And RSUs [Member] | October 24, 2012 [Member] | Nonemployee Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	3,000
Exercise price	$ 2.46
Exercisable at the end of the period	3,000
Options And RSUs [Member] | January 23, 2013 [Member] | Nonemployee Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	3,333
Exercise price	$ 3.03
Exercisable at the end of the period	3,333
Options And RSUs [Member] | January 27, 2014 [Member] | Nonemployee Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	2,748
Exercise price	$ 3.51
Exercisable at the end of the period	1,443
Options And RSUs [Member] | May 1, 2014 [Member] | Nonemployee Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	3,250
Exercise price	$ 3.51
Exercisable at the end of the period	1,917
Options And RSUs [Member] | September 17, 2014 [Member] | Nonemployee Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	9,615
Exercise price	$ 3.96
Exercisable at the end of the period	6,284
Options And RSUs [Member] | October 29, 2014 [Member] | Nonemployee Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	3,668
Exercise price	$ 5.01
Exercisable at the end of the period	222
Options And RSUs [Member] | March 27, 2017 [Member] | Nonemployee Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	4,000
Exercise price	$ 0
Options And RSUs [Member] | November 8, 2015 [Member] | Nonemployee Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	2,230
Exercise price	$ 0
Exercisable at the end of the period
Options And RSUs [Member] | April 18, 2016 [Member] | Nonemployee Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	1,875
Exercise price	$ 0
Exercisable at the end of the period
Options And RSUs [Member] | July 11, 2016 [Member] | Nonemployee Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	2,001
Exercise price	$ 0
Exercisable at the end of the period
Options And RSUs [Member] | September 21, 2016 [Member] | Nonemployee Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	4,000
Exercise price	$ 15.34
Exercisable at the end of the period	500
Options And RSUs [Member] | Award Date Five [Member] | Nonemployee Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	6,125
Exercise price	$ 0
Exercisable at the end of the period
Options And RSUs [Member] | March 15, 2017 [Member] | Nonemployee Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	8,000
Exercise price	$ 0
Options And RSUs [Member] | Award Date Ten [Member] | Nonemployee Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	8,000
Exercise price	$ 13.7
Option [Member] | Employees and Members of Board of Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the end of the period	5,186,087	4,864,469
Exercise price	$ 5.93	$ 5.05
Exercisable at the end of the period	3,450,219

STOCK CAPITAL (Schedule of Reco

STOCK CAPITAL (Schedule of Recognized Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 3,612	$ 2,631
Selling and marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	1,030	842
Cost of revenues [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	493	246
Research and development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	1,205	724
General and administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 884	$ 819

BASIC AND DILUTED NET EARNING39

BASIC AND DILUTED NET EARNINGS PER SHARE (Narrative) (Details) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share [Abstract]
Anti-dilutive securities	590,115	0

BASIC AND DILUTED NET EARNING40

BASIC AND DILUTED NET EARNINGS PER SHARE (Schedule of Computation of Basic and Diluted Net Earnings (Loss) Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Numerator:
Net income	$ 14,175	$ 20,799
Denominator:
Shares used in computing net earnings per share of common stock, basic	41,348,225	40,362,093
Effect of stock-based awards	2,489,280	4,215,808
Shares used in computing net earnings per share of common stock, diluted	43,837,505	44,577,901
Basic net income per share	$ 0.34	$ 0.52
Diluted net income per share	$ 0.32	$ 0.47

INCOME TAXES (Schedule of Taxes

INCOME TAXES (Schedule of Taxes on Income) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Taxes Schedule Of Taxes On Income Details
Current year taxes	$ 1,069	$ 1,069
Deferred tax expense (income)	(1,830)	(100)
Taxes on income (tax benefit)	$ (761)	$ 969

INCOME TAXES (Schedule of Defer

INCOME TAXES (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Assets in respect of:
Research and Development carryforward expenses - temporary differences	$ 1,792	$ 908
Stock based compensation	1,279	1,039
Other reserves	1,013	868
Net deferred tax assets	$ 4,084	$ 2,815

INCOME TAXES (Narrative) (Detai

INCOME TAXES (Narrative) (Details) $ in Thousands	Mar. 31, 2017USD ($)
Income Taxes Narrative Details
Liability for uncertain tax positions	$ 264

CONCENTRATION OF CREDIT RISK 44

CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS (Details)	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Accounts Payable [Member]
Concentration Risk [Line Items]
Concentration risk percentage	66.40%		61.00%
Revenues [Member] | Two Major Customers [Member]
Concentration Risk [Line Items]
Concentration risk percentage	12.74%	26.71%
Accounts Receivable [Member] | One Major Customer [Member]
Concentration Risk [Line Items]
Concentration risk percentage	16.57%
Accounts Receivable [Member] | Three Major Customers [Member]
Concentration Risk [Line Items]
Concentration risk percentage			20.15%