Attunity (ATTU) 6-K 17 Sep 15 2015 Q2 Current report (foreign) Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Jun. 30, 2015
Document and Entity Information [Abstract]
Document Type	6-K
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Entity Registrant Name	ATTUNITY LTD
Entity Central Index Key	893,821
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Entity Filer Category	Non-accelerated Filer

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
CURRENT ASSETS:
Cash and cash equivalents	$ 10,838	$ 18,959
Restricted cash	430	430
Trade receivables (net of allowance for doubtful accounts of $15 at June 30, 2015 and December 31, 2014)	4,601	5,991
Other accounts receivable and prepaid expenses	1,255	453
Total current assets	17,124	25,833
Severance pay fund	3,542	3,247
Property and equipment, net	1,138	980
Intangible assets, net	10,849	5,402
Goodwill	30,943	17,467
Other long-term assets	143	577
Total long-term assets	46,615	27,673
Total assets	63,739	53,506
CURRENT LIABILITIES:
Trade payables	720	322
Contingent consideration and payment obligation related to acquisitions	2,442	2,278
Deferred revenues	9,666	7,091
Employees and payroll accruals	3,496	3,023
Accrued expenses and other current liabilities	1,015	1,551
Total current liabilities	17,339	14,265
LONG-TERM LIABILITIES:
Deferred revenue	767	576
Liabilities presented at fair value	965	906
Contingent consideration related to acquisitions	1,736	2,208
Accrued severance pay	4,754	4,296
Other liabilities	977	98
Total long-term liabilities	9,199	8,084
SHAREHOLDERS' EQUITY:
Share capital - Ordinary shares of NIS 0.4 par value per share - Authorized: 32,500,000 shares at June 30, 2015 and December 31, 2014; Issued and outstanding: 16,225,825 shares at June 30, 2015 and 15,375,716 shares at December 31, 2014	1,857	1,772
Additional paid-in capital	142,172	133,931
Accumulated other comprehensive loss	(1,028)	(871)
Accumulated deficit	(105,800)	(103,675)
Total shareholders' equity	37,201	31,157
Total liabilities and shareholders' equity	$ 63,739	$ 53,506

CONSOLIDATED BALANCE SHEETS (PA

CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) $ in Thousands	Jun. 30, 2015USD ($)shares	Jun. 30, 2015₪ / shares	Dec. 31, 2014USD ($)shares	Dec. 31, 2014₪ / shares
CONSOLIDATED BALANCE SHEETS [Abstract]
Trade receivables, allowance for doubtful accounts | $	$ 15		$ 15
Ordinary shares, par value per share | ₪ / shares		₪ 0.4		₪ 0.4
Ordinary shares, shares authorized	32,500,000		32,500,000
Ordinary shares, shares issued	16,225,825		15,375,716
Ordinary shares, shares outstanding	16,225,825		15,375,716

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Revenues:
Software licenses	$ 12,360	$ 7,929
Maintenance and services	10,248	7,446
Total revenue	22,608	15,375
Operating expenses:
Cost of revenues	3,243	1,472
Research and development	4,893	4,837
Selling and marketing	13,285	8,861
General and administrative	2,636	1,888
Total operating expenses	24,057	17,058
Operating loss	(1,449)	(1,683)
Financial expenses, net	235	189
Loss before taxes on income	(1,684)	(1,872)
Taxes on income	441	42
Net loss	$ (2,125)	$ (1,914)
Basic and diluted net loss per share	$ (0.13)	$ (0.13)
Weighted average number of shares used in computing basic and diluted net loss per share	15,900	14,834

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS [Abstract]
Net loss	$ (2,125)	$ (1,914)
Cash flow hedges:
Changes in unrealized gains	37
Reclassification adjustments for gains included in net income	(7)
Net change	30
Foreign currency translation adjustment	(187)	$ (32)
Net change in accumulated comprehensive loss	(157)	(32)
Comprehensive loss	$ (2,282)	$ (1,946)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows activities:
Net loss	$ (2,125)	$ (1,914)
Adjustments required to reconcile net loss to net cash provided by operating activities:
Depreciation	193	163
Stock-based compensation	971	677
Amortization of intangible assets	1,285	591
Accretion of payment obligation	130	341
Change in liabilities presented at fair value and other long-term liabilities	40	(251)
Change in operating assets and liabilities:
Accrued severance pay, net	163	174
Trade receivables	1,390	127
Other accounts receivable and prepaid expenses	(972)	(50)
Other assets	(12)	(12)
Trade payables	355	(102)
Deferred revenues	2,225	1,486
Employees and payroll accruals	421	349
Accrued expenses and other liabilities	(339)	$ (145)
Tax benefit related to exercise of stock options	(60)
Change in deferred taxes, net	195	$ (165)
Net cash provided by operating activities	3,860	1,269
Cash flows from investing activities:
Purchase of property and equipment	(283)	$ (314)
Acquisition of company, net of cash acquired	(10,402)
Net cash used in investing activities	(10,685)	$ (314)
Cash flows from financing activities:
Proceeds from exercise of stock options, warrants and rights	696	$ 695
Tax benefit related to exercise of stock options	60
Payment of contingent consideration	(2,054)
Net cash provided by (used in) financing activities	(1,298)	$ 695
Foreign currency translation adjustments on cash and cash equivalents	2	(12)
Increase (decrease) in cash and cash equivalents	(8,121)	1,638
Cash and cash equivalents at the beginning of the period	18,959	16,481
Cash and cash equivalents at the end of the period	10,838	18,119
Cash paid during the year for:
Cash paid during the period for taxes	1,028	$ 382
Supplemental disclosure of non-cash investing activity:
Issuance of shares related to acquisition	$ 6,599

GENERAL

GENERAL	6 Months Ended
	Jun. 30, 2015
GENERAL [Abstract]
GENERAL	NOTE 1:- GENERAL Attunity Ltd. (the "Company" or "Attunity") develops, markets, sells and supports data management software solutions that enable data usage analytics as well as access, management, sharing and distribution of data, including so-called “Big Data,” across heterogeneous enterprise platforms, organizations, and the cloud. In addition, the Company provides maintenance, consulting, and other related services for its products. The Company has wholly-owned subsidiaries in the United States, United Kingdom, Hong-Kong and Israel. The Company's subsidiaries are engaged primarily in sales and marketing.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2015
SIGNIFICANT ACCOUNTING POLICIES [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES a. Unaudited interim consolidated financial statements: The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information. In the opinion of management, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair presentation of the Company's condensed consolidated financial statements. The balance sheet at December 31, 2014 has been derived from the audited consolidated financial statements of the Company at that date but does not include all of information and footnotes required by GAAP for complete financial statements. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended December 31, 2014, included in the Company's Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission ("SEC") on April 14, 2015. Results for the six months ended June 30, 2015 are not necessarily indicative of results that may be expected for the year ending December 31, 2015. Unless otherwise noted, all references to "dollars" or "$" are to United States dollars. b. Use of estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. c. Impact of recently issued accounting standard not yet adopted: In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance related to revenue from contracts with customers. Under this guidance, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The updated standard will replace most existing revenue recognition guidance under GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. Early adoption is not permitted. The updated standard was expected to be effective for entities like the Company in the first quarter of 2017. However, on July 9, 2015, the FASB agreed to delay the effective date of this standard to annual reporting periods beginning after December 15, 2017. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures.

ACQUISITIONS

ACQUISITIONS	6 Months Ended
	Jun. 30, 2015
ACQUISITIONS [Abstract]
ACQUISITIONS	NOTE 3:- ACQUISITION On March 18, 2015 ("Closing Date"), the Company completed, through the Company's wholly owned subsidiary, Attunity Inc., the acquisition of 100 - 10,997 1,100 one - 726,033 6,600 581,862 144,171 1,253 - 31,500 1,616 The aforesaid milestone-based contingent payments are payable, subject to certain exceptions, in cash ( 60 40 30 In addition, the Company incurred acquisition related costs in a total amount of $ 561 The main reason for this acquisition was to expand the Company's offering with data usage analytics for Big Data environments, including data warehousing and Hadoop, to enable customers ' Purchase price allocation: Under business combination accounting principles, the total purchase price was allocated to Appfluent's net tangible and intangible assets based on their estimated fair values as set forth below. The excess of the purchase price over the net tangible and identifiable intangible assets was recorded as goodwill. The goodwill is primarily attributable to expected synergies resulting from the acquisition. The purchase price allocation for the acquisition has been determined as follows: Cash and cash equivalents acquired $ 595 Accounts receivables and other current assets 82 Deferred revenues (504 ) Trade payables, accrued expenses and other current liabilities (154 ) Non-current liabilities (123 ) Deferred taxes, net (1,044 ) Developed technology (1) 6,350 Customers relationships (2) 382 Goodwill 13,629 Total purchase price $ 19,213 (1) Developed technology represents a combination of Appfluent's processes and trade secrets related to the design and development of its products. This proprietary know-how can be leveraged to develop new technology and improve the Company products and is amortized over 5 (2) Customer relationships represent the underlying relationships and agreements with Appfluent installed customer base and are amortized over 7 In performing the purchase price allocation, the Company considered, among other factors, analysis of historical financial performance, the best use of the acquired assets and estimates of future performance of Appfluent's products. In its allocation, the Company also conducted a valuation of intangible assets based on a market participant approach to valuation using an income approach and in connection therewith considered the report of an independent third party valuation firm and estimates and assumptions provided by management. The following unaudited condensed combined pro forma information for the six months ended June 30, 2015 and 2014, gives effect to the acquisition of Appfluent as if it had occurred on January 1, 2014. The pro forma information is not necessarily indicative of the results of operations, which actually would have occurred had the acquisition been consummated on that date, nor does it purport to represent the results of operations for future periods. For the purposes of the pro forma information, the Company has assumed that net loss includes additional amortization of intangible assets related to the acquisition of $ 682 689 Six months ended June 30, 2015 2014 Unaudited Revenues $ 24,526 $ 16,050 Net loss $ (903 ) $ (6,144 ) Basic and diluted loss per share $ (0.06 ) $ (0.41 )

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2015
FAIR VALUE MEASUREMENTS [Abstract]
FAIR VALUE MEASUREMENTS	NOTE 4 :- FAIR VALUE MEASUREMENTS FASB Accounting Standards Codification ("ASC") No. 820, "Fair Value Measurements and Disclosures" defines fair value and establishes a framework for measuring fair value. According to ASC No. 820, fair value is an exit price, representing the amount that would be received for selling an asset or paid for the transfer of a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date. Level 2: Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3: Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The Company measures the contingent payment obligations payable, if any, in connection with acquisitions ("Contingent Considerations"), foreign currency derivative contracts and other derivative instruments at fair value. Foreign currency derivative contracts are classified within Level II as the valuation inputs are based on quoted prices and market observable data of similar instruments. The Contingent Considerations related to acquisitions and liabilities presented at fair value are classified within Level III as the valuation inputs are based on significant inputs not observable in the market. See also note 5 below. There have been no transfers between fair value measurements levels during the six months ended June 30, 2015. The below table sets forth the Company's assets and liabilities that were measured at fair value as of June 30, 2015 and December 31, 2014 by level within the fair value hierarchy. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. As of June 30, 2015 (unaudited) Level 1 Level 2 Level 3 Total Assets: Foreign exchange contracts $ - $ 87 $ - $ 87 Liabilities: Contingent Consideration related to acquisitions - - 4,178 4,178 Liabilities presented at fair value - - 965 965 Total liabilities - - 5,143 $ 5,143 December 31, 2014 Level 1 Level 2 Level 3 Total Liabilities : Contingent Consideration related to acquisitions $ - $ - $ 4,486 $ 4,486 Foreign exchange contracts - 196 - 196 Liabilities presented at fair value - - 906 906 Total liabilities $ - $ 196 $ 5,392 $ 5,588 The following table set forth the change of fair value measurements that are categorized within Level 3: Total fair value as of January 1, 2015 $ 5,392 Acquisition 1,616 Cash settlements (2,054 ) Changes in fair value recognized in expenses 59 Accretion of payment obligation 130 Total fair value as of June 30, 2015 (unaudited) $ 5,143

CONTINGENT CONSIDERATION

CONTINGENT CONSIDERATION	6 Months Ended
	Jun. 30, 2015
CONTINGENT CONSIDERATION [Abstract]
CONTINGENT CONSIDERATION	NOTE 5 :- CONTINGENT CONSIDERATION The fair value of the Contingent Considerations was estimated based several factors of which the most significant is the Company's revenue projections. The company used a Monte Carlo Simulation of the triangular model with a discount rate of 16

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS, NET	6 Months Ended
	Jun. 30, 2015
GOODWILL AND OTHER INTANGIBLE ASSETS, NET [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS, NET	NOTE 6:- GOODWILL AND OTHER INTANGIBLE ASSETS, NET a. Goodwill: Changes in goodwill: June 30, December 31, 2015 2014 Unaudited Audited Goodwill, beginning of year $ 17,467 $ 17,748 Revaluation (foreign currency exchange differences) (153 ) (281 ) Acquisition 13,629 - Goodwill, period end $ 30,943 $ 17,467 b. Net other intangible assets consisted of the following: June 30, December 31, 2015 2014 Unaudited Audited Original amount: Core technology $ 13,384 $ 7,034 Customer relationships 1,981 1,599 Non-competition agreement 224 224 15,589 8,857 Accumulated amortization: Core technology 3,442 2,315 Customer relationships 1,214 1,084 Non-competition agreement 84 56 4,740 3,455 Other intangible assets ,net: Core technology 9,942 4,719 Customer relationships 767 515 Non-competition agreement 140 168 $ 10,849 $ 5,402 The estimated future amortization expense of other intangible assets as of June 30, 2015 for the years ending: Year ending December 31 , 2015 $ 1,577 2016 2,786 2017 2,414 2018 1,990 Thereafter 2,082 $ 10,849

LIABILITIES PRESENTED AT FAIR V

LIABILITIES PRESENTED AT FAIR VALUE	6 Months Ended
	Jun. 30, 2015
LIABILITIES PRESENTED AT FAIR VALUE [Abstract]
LIABILITIES PRESENTED AT FAIR VALUE	NOTE 7 :- LIABILITIES PRESENTED AT FAIR VALUE According to the loan agreement ("Agreement") with Plenus Technologies Ltd. and its affiliates, ("Plenus"), dated January 31, 2007 (as amended on March 30, 2009 and September 4, 2011), Plenus is entitled to consideration of 15 300 965 906

DERIVATIVES AND HEDGING ACTIVIT

DERIVATIVES AND HEDGING ACTIVITIES	6 Months Ended
	Jun. 30, 2015
DERIVATIVES AND HEDGING ACTIVITIES [Abstract]
DERIVATIVES AND HEDGING ACTIVITIES	NOTE 8 :- DERIVATIVES AND HEDGING ACTIVITIES The Company follows FASB ASC No. 815," Derivatives and Hedging" which requires companies to recognize all of their derivative instruments as either assets or liabilities in the statement of financial position at fair value. The accounting for changes in fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging transaction and further, on the type of hedging transaction. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. Due to the Company's global operations, it is exposed to foreign currency exchange rate fluctuations in the normal course of its business. The Company used derivative financial instruments, specifically foreign currency forward and option contracts (“Hedging Contracts“), to manage exposure to foreign currency risks, by hedging a portion of the Company's forecasted expenses denominated in New Israeli Shekels expected to occur within a year. The effect of exchange rate changes on foreign currency Hedging Contracts is expected to partially offset the effect of exchange rate changes on the underlying hedged item For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains or losses from contracts that were not designated as hedging instruments are recognized in "financial expenses, net". As of June 30, 2015 and December 31, 2014, the notional principal amount of the Hedging Contracts to sell U.S. dollars held by the Company was 3,988 6,574 The fair value of the Company's outstanding derivative designated as cash flow hedging instruments was $ 30 0 which is included within ”Other accounts receivable and prepaid expenses” in the balance sheet As of June 30, 3015, the fair value of the Company's outstanding Hedging Contracts that were not designated as hedging instruments was recorded as asset of $ 57 "Other accounts receivable and prepaid expenses". As of December 31, 2014, the fair value of the Company's outstanding Hedging Contracts that were not designated as hedging instruments, was recorded as a liability of 196

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2015
SHAREHOLDERS' EQUITY [Abstract]
SHAREHOLDERS' EQUITY	NOTE 9 :- SHAREHOLDERS' EQUITY 1. During the six months ended June 30, 2015, 19,701 19,701 10 2. The fair value for options granted in the periods presented is estimated at the date of grant using a Black-Scholes option-pricing model with the following weighted average assumptions: Six months ended June 30, 2015 2014 Unaudited Risk free interest 1.20 % 1.16 % Dividend yields 0 % 0 % Volatility 54 % 63 % Expected life (in years) 4 4 3. The following is a summary of the Company's stock options activity for the six months ended June 30, 2015: Number of options (in thousands) Weighted Average exercise P rice (per share) Weighted- average (in years) Aggregate (1) Unaudited Outstanding at December 31, 2014 1,889 $ 6.53 3.97 $ 8,148 Granted 269 12.9 Exercised (268 (2.55 Forfeited (29 (9.1 Outstanding at June 30, 2015 1,861 $ 7.99 4.09 $ 9,592 Exercisable at June 30, 2015 862 $ 5.17 2.79 $ 6,823 Vested and expected to vest at June 30, 2015 1,772 $ 7.86 4.03 $ 9,359 (1) Calculation of aggregate intrinsic value for options outstanding and exercisable as of June 30, 2015 is based on the share price of the Company's ordinary shares as of June 30, 2015 which was $ 13.07 4. The weighted average fair value of options granted during the six months ended June 30, 2015 was $ 5.54 5. The following table shows the total stock-based compensation expense included in the interim consolidated statements of operations: Six months ended June 30, 2015 2014 Unaudited Research and development $ 221 $ 191 Selling and marketing 446 298 General and administrative 304 188 Total stock-based compensation expense $ 971 $ 677

FINANCIAL EXPENSES, NET

FINANCIAL EXPENSES, NET	6 Months Ended
	Jun. 30, 2015
FINANCIAL EXPENSES, NET [Abstract]
FINANCIAL EXPENSES, NET	NOTE 10 :- FINANCIAL EXPENSES, NET Six months ended June 30, 2015 2014 Unaudited Financial income: Revaluation of liabilities presented at fair value $ - $ (253 ) Hedging (82 ) (1 ) Exchange rate differences and other (42 ) (33 ) (124 ) (287 ) Financial expenses: Revaluation of liabilities presented at fair value 59 - Exchange rate differences and other 170 135 Accretion of contingent consideration 130 341 359 476 $ 235 $ 189

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2015
SUBSEQUENT EVENTS [Abstract]
SUBSEQUENT EVENTS	NOTE 11 :- SUBSEQUENT EVENTS In July 2015, the Company secured a short-term line of credit in the amount of $ 5,000

SIGNIFICANT ACCOUNTING POLICI18

SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2015
SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Unaudited interim consolidated financial statements	a. Unaudited interim consolidated financial statements: The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information. In the opinion of management, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair presentation of the Company's condensed consolidated financial statements. The balance sheet at December 31, 2014 has been derived from the audited consolidated financial statements of the Company at that date but does not include all of information and footnotes required by GAAP for complete financial statements. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended December 31, 2014, included in the Company's Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission ("SEC") on April 14, 2015. Results for the six months ended June 30, 2015 are not necessarily indicative of results that may be expected for the year ending December 31, 2015. Unless otherwise noted, all references to "dollars" or "$" are to United States dollars.
Use of estimates	b. Use of estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
Impact of recently issued accounting standard not yet adopted	c. Impact of recently issued accounting standard not yet adopted: In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance related to revenue from contracts with customers. Under this guidance, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The updated standard will replace most existing revenue recognition guidance under GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. Early adoption is not permitted. The updated standard was expected to be effective for entities like the Company in the first quarter of 2017. However, on July 9, 2015, the FASB agreed to delay the effective date of this standard to annual reporting periods beginning after December 15, 2017. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures.

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	6 Months Ended
	Jun. 30, 2015
ACQUISITIONS [Abstract]
Schedule of Purchase Price Allocation for Acquisition	Cash and cash equivalents acquired $ 595 Accounts receivables and other current assets 82 Deferred revenues (504 ) Trade payables, accrued expenses and other current liabilities (154 ) Non-current liabilities (123 ) Deferred taxes, net (1,044 ) Developed technology (1) 6,350 Customers relationships (2) 382 Goodwill 13,629 Total purchase price $ 19,213
Summary of Pro Forma Information	Six months ended June 30, 2015 2014 Unaudited Revenues $ 24,526 $ 16,050 Net loss $ (903 ) $ (6,144 ) Basic and diluted loss per share $ (0.06 ) $ (0.41 )

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2015
FAIR VALUE MEASUREMENTS [Abstract]
Schedule of assets and liabilities measured at fair value	As of June 30, 2015 (unaudited) Level 1 Level 2 Level 3 Total Assets: Foreign exchange contracts $ - $ 87 $ - $ 87 Liabilities: Contingent Consideration related to acquisitions - - 4,178 4,178 Liabilities presented at fair value - - 965 965 Total liabilities - - 5,143 $ 5,143 December 31, 2014 Level 1 Level 2 Level 3 Total Liabilities : Contingent Consideration related to acquisitions $ - $ - $ 4,486 $ 4,486 Foreign exchange contracts - 196 - 196 Liabilities presented at fair value - - 906 906 Total liabilities $ - $ 196 $ 5,392 $ 5,588
Schedule of change of fair value measurements that are categorized within Level 3	Total fair value as of January 1, 2015 $ 5,392 Acquisition 1,616 Cash settlements (2,054 ) Changes in fair value recognized in expenses 59 Accretion of payment obligation 130 Total fair value as of June 30, 2015 (unaudited) $ 5,143

GOODWILL AND OTHER INTANGIBLE21

GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables)	6 Months Ended
	Jun. 30, 2015
GOODWILL AND OTHER INTANGIBLE ASSETS, NET [Abstract]
Schedule of Changes in Goodwill	June 30, December 31, 2015 2014 Unaudited Audited Goodwill, beginning of year $ 17,467 $ 17,748 Revaluation (foreign currency exchange differences) (153 ) (281 ) Acquisition 13,629 - Goodwill, period end $ 30,943 $ 17,467
Schedule of Net Other Intangible Assets	June 30, December 31, 2015 2014 Unaudited Audited Original amount: Core technology $ 13,384 $ 7,034 Customer relationships 1,981 1,599 Non-competition agreement 224 224 15,589 8,857 Accumulated amortization: Core technology 3,442 2,315 Customer relationships 1,214 1,084 Non-competition agreement 84 56 4,740 3,455 Other intangible assets ,net: Core technology 9,942 4,719 Customer relationships 767 515 Non-competition agreement 140 168 $ 10,849 $ 5,402
Schedule of Other Intangible Assets Future Amortization Expense	Year ending December 31 , 2015 $ 1,577 2016 2,786 2017 2,414 2018 1,990 Thereafter 2,082 $ 10,849

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	6 Months Ended
	Jun. 30, 2015
SHAREHOLDERS' EQUITY [Abstract]
Summary of Fair Value Weighted Average Assumptions	Six months ended June 30, 2015 2014 Unaudited Risk free interest 1.20 % 1.16 % Dividend yields 0 % 0 % Volatility 54 % 63 % Expected life (in years) 4 4
Schedule of Stock Option Activity	Number of options (in thousands) Weighted Average exercise P rice (per share) Weighted- average (in years) Aggregate (1) Unaudited Outstanding at December 31, 2014 1,889 $ 6.53 3.97 $ 8,148 Granted 269 12.9 Exercised (268 (2.55 Forfeited (29 (9.1 Outstanding at June 30, 2015 1,861 $ 7.99 4.09 $ 9,592 Exercisable at June 30, 2015 862 $ 5.17 2.79 $ 6,823 Vested and expected to vest at June 30, 2015 1,772 $ 7.86 4.03 $ 9,359 (1) Calculation of aggregate intrinsic value for options outstanding and exercisable as of June 30, 2015 is based on the share price of the Company's ordinary shares as of June 30, 2015 which was $ 13.07
Schedule of Stock-Based Compensation Expense	Six months ended June 30, 2015 2014 Unaudited Research and development $ 221 $ 191 Selling and marketing 446 298 General and administrative 304 188 Total stock-based compensation expense $ 971 $ 677

FINANCIAL EXPENSES, NET (Tables

FINANCIAL EXPENSES, NET (Tables)	6 Months Ended
	Jun. 30, 2015
FINANCIAL EXPENSES, NET [Abstract]
Schedule of Financial Income (Expenses)	Six months ended June 30, 2015 2014 Unaudited Financial income: Revaluation of liabilities presented at fair value $ - $ (253 ) Hedging (82 ) (1 ) Exchange rate differences and other (42 ) (33 ) (124 ) (287 ) Financial expenses: Revaluation of liabilities presented at fair value 59 - Exchange rate differences and other 170 135 Accretion of contingent consideration 130 341 359 476 $ 235 $ 189

ACQUISITIONS (Narrative) (Detai

ACQUISITIONS (Narrative) (Details) - USD ($)	Mar. 18, 2015	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Business Acquisition [Line Items]
Contingent cash payment		$ 4,178,000		$ 4,486,000
Pro forma additional amortization of intangible assets related to the acquisition		682	$ 689
Appfluent [Member]
Business Acquisition [Line Items]
Ownership interests acquired	100.00%
Cash paid for entity	$ 10,997,000
Amount held in escrow deposit	$ 1,100,000
Period of amount held in escrow deposit	1 year
Number of shares issued for acquisition of entity	726,033
Fair value of shares issued for acquisition	$ 6,600,000
Contingent cash payment	$ 31,500,000	$ 1,616,000
Percentage of milestone-based contingent payments payable in cash	60.00%
Percentage of milestone-based contingent payments payable in ordinary shares	40.00%
Period used to calculate average price per share	30 days
Acquisition related costs	$ 561,000
Appfluent [Member] | Issued at closing [Member]
Business Acquisition [Line Items]
Number of shares issued for acquisition of entity	581,862
Appfluent [Member] | Shares held-back to secure indemnity claims [Member]
Business Acquisition [Line Items]
Number of shares issued for acquisition of entity	144,171
Payment obligations	$ 1,253,000

ACQUISITIONS (Schedule of Purch

ACQUISITIONS (Schedule of Purchase Price Allocation for Acquisition) (Details) - USD ($) $ in Thousands		Mar. 18, 2015	Jun. 30, 2015	Dec. 31, 2014	Dec. 31, 2013
Business Acquisition [Line Items]
Goodwill			$ 30,943	$ 17,467	$ 17,748
Appfluent [Member]
Business Acquisition [Line Items]
Cash and cash equivalents acquired		$ 595
Accounts receivables and other current assets		82
Deferred revenues		(504)
Trade payables, accrued expenses and other current liabilities		(154)
Non-current liabilities		(123)
Deferred taxes, net		(1,044)
Developed Technology	[1]	6,350
Customers Relationships	[2]	382
Goodwill		13,629
Total purchase price		$ 19,213
Appfluent [Member] | Developed technology [Member]
Business Acquisition [Line Items]
Amortization period		5 years
Appfluent [Member] | Customer relationships [Member]
Business Acquisition [Line Items]
Amortization period		7 years
[1]	Developed technology represents a combination of Appfluent's processes and trade secrets related to the design and development of its products. This proprietary know-how can be leveraged to develop new technology and improve the Company products and is amortized over 5 years using the straight line method.
[2]	Customer relationships represent the underlying relationships and agreements with Appfluent installed customer base and are amortized over 7 years using the accelerated method.

ACQUISITIONS (Summary of Pro Fo

ACQUISITIONS (Summary of Pro Forma Adjustments) (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
ACQUISITIONS [Abstract]
Revenues	$ 24,526	$ 16,050
Net loss	$ (903)	$ (6,144)
Basic and diluted loss per share	$ (0.06)	$ (0.41)

FAIR VALUE MEASUREMENTS (Schedu

FAIR VALUE MEASUREMENTS (Schedule of Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Assets:
Foreign exchange contracts	$ 87
Liabilities:
Contingent Consideration related to acquisitions	4,178	$ 4,486
Foreign exchange contracts		196
Liabilities presented at fair value	965	906
Total liabilities	$ 5,143	$ 5,588
Level 1 [Member]
Assets:
Foreign exchange contracts
Liabilities:
Contingent Consideration related to acquisitions
Foreign exchange contracts
Liabilities presented at fair value
Total liabilities
Level 2 [Member]
Assets:
Foreign exchange contracts	$ 87
Liabilities:
Contingent Consideration related to acquisitions
Foreign exchange contracts		$ 196
Liabilities presented at fair value
Total liabilities		$ 196
Level 3 [Member]
Assets:
Foreign exchange contracts
Liabilities:
Contingent Consideration related to acquisitions	$ 4,178	$ 4,486
Foreign exchange contracts
Liabilities presented at fair value	965	$ 906
Total liabilities	$ 5,143	$ 5,392

FAIR VALUE MEASUREMENTS (Sche28

FAIR VALUE MEASUREMENTS (Schedule of Change of Fair Value Measurements that are Categorized Within Level 3) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2015USD ($)
Change of fair value measurements that are categorized within Level 3
Total fair value as of January 1, 2015	$ 5,392
Acquisition	1,616
Cash settlements	(2,054)
Changes in fair value recognized in expenses	59
Accretion of payment obligation	130
Total fair value as of June 30, 2015 (unaudited)	$ 5,143

CONTINGENT CONSIDERATION (Detai

CONTINGENT CONSIDERATION (Details)	6 Months Ended
	Jun. 30, 2015
CONTINGENT CONSIDERATION [Abstract]
Discount rate	16.00%

GOODWILL AND OTHER INTANGIBLE30

GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Schedule of Changes in Goodwill) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
GOODWILL AND OTHER INTANGIBLE ASSETS, NET [Abstract]
Goodwill, beginning of year	$ 17,467	$ 17,748
Revaluation (foreign currency exchange differences)	(153)	$ (281)
Acquisition	13,629
Goodwill, period end	$ 30,943	$ 17,467

GOODWILL AND OTHER INTANGIBLE31

GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Schedule of Net Other Intangible Assets) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Original amount	$ 15,589	$ 8,857
Accumulated amortization	4,740	3,455
Other intangible assets, net	10,849	5,402
Core technology [Member]
Finite-Lived Intangible Assets [Line Items]
Original amount	13,384	7,034
Accumulated amortization	3,442	2,315
Other intangible assets, net	9,942	4,719
Customer relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Original amount	1,981	1,599
Accumulated amortization	1,214	1,084
Other intangible assets, net	767	515
Non-competition agreement [Member]
Finite-Lived Intangible Assets [Line Items]
Original amount	224	224
Accumulated amortization	84	56
Other intangible assets, net	$ 140	$ 168

GOODWILL AND OTHER INTANGIBLE32

GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Schedule of Other Intangible Assets Future Amortization Expense) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
GOODWILL AND OTHER INTANGIBLE ASSETS, NET [Abstract]
2,015	$ 1,577
2,016	2,786
2,017	2,414
2,018	1,990
Thereafter	2,082
Other intangible assets, net	$ 10,849	$ 5,402

LIABILITIES PRESENTED AT FAIR33

LIABILITIES PRESENTED AT FAIR VALUE (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
LIABILITIES PRESENTED AT FAIR VALUE [Abstract]
Contingent lender payment, percent of equity transaction	15.00%
Contingent lender payment, alternate amount of condiseration payable to the lender	$ 300
Liability presented at fair value	$ 965	$ 906

DERIVATIVES AND HEDGING ACTIV34

DERIVATIVES AND HEDGING ACTIVITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Designated as hedging instruments [Member]
Derivatives and hedging activities [Line Items]
Notional amount	$ 3,988	$ 6,574
Designated as hedging instruments [Member] | Cash flow hedging [Member]
Derivatives and hedging activities [Line Items]
Fair value of derivative assets	30	0
Not designated as hedging instruments [Member]
Derivatives and hedging activities [Line Items]
Fair value of derivative assets	$ 57
Fair value of derivative liabilities		$ 196

SHAREHOLDERS' EQUITY (Narrative

SHAREHOLDERS' EQUITY (Narrative) (Details) - 6 months ended Jun. 30, 2015 - USD ($) $ / shares in Units, $ in Thousands	Total
Proceeds from exercise of warrants	$ 10
Weighted average fair value of options granted	$ 5.54
Warrants [Member]
Warrants exercised	19,701
Shares issued from warrants exercised	19,701

SHAREHOLDERS' EQUITY (Schedule

SHAREHOLDERS' EQUITY (Schedule of Weighted Average Assumptions) (Details)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk free interest	1.20%	1.16%
Dividend yields	0.00%	0.00%
Volatility	54.00%	63.00%
Expected life (in years)	4 years	4 years

SHAREHOLDERS' EQUITY (Schedul37

SHAREHOLDERS' EQUITY (Schedule of Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		6 Months Ended	12 Months Ended
		Jun. 30, 2015	Dec. 31, 2014
Number of options (in thousands)
Outstanding at December 31, 2014		1,889
Granted		269
Exercised		(268)
Forfeited		(29)
Outstanding at June 30, 2015		1,861	1,889
Exercisable at June 30, 2015		862
Vested and expected to vest at June 30, 2015		1,772
Weighted average exercise price (per share)
Outstanding at December 31, 2014		$ 6.53
Granted		12.9
Exercised		(2.55)
Forfeited		(9.1)
Outstanding at June 30, 2015		7.99	$ 6.53
Exercisable at June 30, 2015		5.17
Vested and expected to vest at June 30, 2015		$ 7.86
Weighted-average remaining contractual term (in years)
Outstanding		4 years 1 month 2 days	3 years 11 months 19 days
Exercisable at June 30, 2015		2 years 9 months 14 days
Vested and expected to vest at June 30, 2015		4 years 11 days
Aggregate intrinsic value
Outstanding at December 31, 2014	[1]	$ 8,148
Outstanding at June 30, 2015	[1]	9,592	$ 8,148
Exercisable at June 30, 2015	[1]	6,823
Vested and expected to vest at June 30, 2015	[1]	$ 9,359
Share price		$ 13.07
[1]	Calculation of aggregate intrinsic value for options outstanding and exercisable as of June 30, 2015 is based on the share price of the Company's ordinary shares as of June 30, 2015 which was $13.07 per share.

SHAREHOLDERS' EQUITY (Schedul38

SHAREHOLDERS' EQUITY (Schedule of Stock-Based Compensation) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock based compensation	$ 971	$ 677
Research and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock based compensation	221	191
Selling and marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock based compensation	446	298
General and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock based compensation	$ 304	$ 188

FINANCIAL EXPENSES, NET (Detail

FINANCIAL EXPENSES, NET (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Financial income:
Revaluation of liabilities presented at fair value		$ (253)
Hedging	$ (82)	(1)
Exchange rate differences and other	(42)	(33)
Total financial income	(124)	$ (287)
Financial expenses:
Revaluation of liabilities presented at fair value	59
Exchange rate differences and other	170	$ 135
Accretion of contingent consideration	130	341
Total financial expenses	359	476
Total financial expenses, net	$ 235	$ 189

SUBSEQUENT EVENTS (Details))

SUBSEQUENT EVENTS (Details)) $ in Thousands	1 Months Ended
	Jul. 31, 2015USD ($)
Subsequent Event [Member] | Israeli bank [Member]
Subsequent Event [Line Items]
Short-term line of credit	$ 5,000