Attunity (ATTU) 6-K 19 Sep 16 2016 Q2 Current report (foreign) Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Jun. 30, 2016
Document and Entity Information [Abstract]
Document Type	6-K
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Entity Registrant Name	ATTUNITY LTD
Entity Central Index Key	893,821
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Entity Filer Category	Non-accelerated Filer

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 8,919	$ 12,522
Trade receivables (net of allowance for doubtful accounts of $15 at June 30, 2016 and December 31, 2015)	6,920	4,524
Other accounts receivable and prepaid expenses	1,136	639
Total current assets	16,975	17,685
LONG-TERM ASSETS:
Severance pay fund	3,706	3,513
Property and equipment, net	1,359	1,260
Intangible assets, net	5,747	9,272
Goodwill	30,929	30,844
Other assets	1,644	584
Total long-term assets	43,385	45,473
Total assets	60,360	63,158
CURRENT LIABILITIES:
Trade payables	1,052	664
Payment obligation related to acquisitions	1,018	2,204
Deferred revenues	10,788	9,354
Employees and payroll accruals	4,662	4,012
Accrued expenses and other current liabilities	1,262	1,248
Total current liabilities	18,782	17,482
LONG-TERM LIABILITIES:
Deferred revenue	1,016	1,348
Liability presented at fair value	633	719
Payment obligation related to acquisitions		254
Accrued severance pay	5,050	4,746
Other liabilities	330	318
Total long-term liabilities	7,029	7,385
SHAREHOLDERS' EQUITY:
Share capital - Ordinary shares of NIS 0.4 par value - Authorized: 32,500,000 shares at June 30, 2016 and December 31, 2015; Issued and outstanding: 16,631,754 and 16,406,243 shares at June 30, 2016 and December 31, 2015, respectively	1,899	1,876
Additional paid-in capital	147,470	144,836
Accumulated other comprehensive loss	(1,087)	(1,137)
Accumulated deficit	(113,733)	(107,284)
Total shareholders' equity	34,549	38,291
Total liabilities and shareholders' equity	$ 60,360	$ 63,158

CONSOLIDATED BALANCE SHEETS (PA

CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) $ in Thousands	Jun. 30, 2016USD ($)shares	Jun. 30, 2016₪ / shares	Dec. 31, 2015USD ($)shares	Dec. 31, 2015₪ / shares
Statement of Financial Position [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	16,631,754		16,406,243
Ordinary shares, shares outstanding	16,631,754		16,406,243

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Revenues:
Software licenses	$ 13,539	$ 12,360
Maintenance and services	12,433	10,248
Total revenue	25,972	22,608
Operating expenses:
Cost of software licenses	1,267	1,127
Cost of maintenance and services	3,112	2,116
Research and development	6,792	4,893
Selling and marketing	17,847	13,285
General and administrative	2,308	2,636
Impairment of acquisition-related intangible assets	2,132
Total operating expenses	33,458	24,057
Operating loss	7,486	1,449
Financial expenses, net	(80)	235
Loss before taxes on income	7,406	1,684
Taxes on income	(957)	441
Net loss	$ 6,449	$ 2,125
Basic and diluted net loss per share	$ 0.39	$ 0.13
Weighted average number of shares used in computing basic and diluted net loss per share	16,671	15,900

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (6,449)	$ (2,125)
Cash flow hedges:
Changes in unrealized gains	91	37
Reclassification adjustments for gains included in net loss	(16)	(7)
Net change	75	30
Foreign currency translation adjustment	(25)	(187)
Net change in accumulated comprehensive loss	50	(157)
Comprehensive loss	$ (6,399)	$ (2,282)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net loss	$ (6,449)	$ (2,125)
Adjustments required to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation	237	193
Share-based compensation	2,220	1,153
Amortization of intangible assets	1,393	1,285
Impairment charge	2,132
Accretion of payment obligation	23	130
Change in:
Accrued severance pay, net	111	163
Trade receivables	(2,714)	1,390
Other accounts receivable and prepaid expenses	(491)	(972)
Other long-term assets	144	(12)
Trade payables	397	355
Deferred revenues	1,262	2,225
Employees and payroll accruals	840	239
Accrued expenses and other liabilities	49	(339)
Liabilities presented at fair value and other long-term liabilities	(74)	40
Tax deficiencies (benefit) related to exercise of stock options	44	(60)
Change in deferred taxes, net	(1,208)	195
Net cash provided by (used in) operating activities	(2,084)	3,860
Cash flows from investing activities:
Purchase of property and equipment	(340)	(283)
Cash paid in connection with acquisition, net of acquired cash		(10,402)
Net cash used in investing activities	(340)	(10,685)
Cash flows from financing activities:
Proceeds from exercise of warrants and options	155	696
Payment of contingent consideration	(1,239)	(2,054)
Tax benefit related to exercise of stock options	(44)	60
Net cash used in financing activities	(1,128)	(1,298)
Foreign currency translation adjustments on cash and cash equivalents	(51)	2
Decrease in cash and cash equivalents	(3,603)	(8,121)
Cash and cash equivalents at the beginning of the period	12,522	18,959
Cash and cash equivalents at the end of the period	8,919	10,838
Cash paid during the year for:
Income taxes	660	1,028
Supplemental disclosure of non-cash investing and financing activities:
Issuance of shares related to acquisitions		$ 6,599

GENERAL

GENERAL	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GENERAL	NOTE 1:- GENERAL Attunity Ltd. (the "Company" or "Attunity") develops, markets, sells and supports Big Data management software solutions that enable access, management, sharing and distribution of 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, 2016
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 consolidated financial statements. The balance sheet at December 31, 2015 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 U.S. generally accepted accounting principles 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, 2015, included in the Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission ("SEC") on March 31, 2016. Results for the six months ended June 30, 2016 are not necessarily indicative of results that may be expected for the year ending December 31, 2016. 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. Reclassifications: Certain amounts in prior years’ financial statements have been reclassified to reflect certain immaterial adjustments related to prior year business combination. The reclassification had no effect on previously reported net income, cash flows or shareholders’ equity. d. Impact of recently issued accounting standard not yet adopted: 1. Stock Compensation - In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which simplified certain aspects of the accounting for share-based payment transactions, including income taxes, classification of awards and classification in the statement of cash flows. ASU 2016-09 will be effective for the Company beginning in its first quarter of 2018. The Company is currently evaluating the impact of adopting ASU 2016-09 on its consolidated financial statements. 2. Leases - In February 2016, the FASB issued ASU 2016-02, "Leases" ("ASU 2016-02"). The updated standard aims to increase transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. This update is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods; early adoption is permitted and modified retrospective application is required. The Company is in the process of evaluating ASU 2016-02 to determine the impact of adopting ASU 2016-02 on its financial statements. 3. Financial Instruments - In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which updates certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 will be effective for the Company beginning in its first quarter of 2019. The Company does not believe the adoption of ASU 2016-01 will have a material impact on its consolidated financial statements. 4. Revenue Recognition –In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"). ASU 2014-09 supersedes the revenue recognition requirements in "Revenue Recognition (Topic 605)", and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. As currently issued and amended, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, though early adoption is permitted for annual reporting periods beginning after December 15, 2016. The Company is still evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	NOTE 3:- FAIR VALUE MEASUREMENTS FASB issued Accounting Standards Codification ("ASC") No. 820, "Fair Value Measurements and Disclosures" ("ASC No. 820"), which 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 its acquisitions of businesses or entities ("Contingent Considerations"), foreign currency derivative contracts and other derivative instruments at fair value. Foreign currency derivative contracts are classified within Level 2 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 3 as the valuation inputs are based on significant inputs not observable in the market. See also note 4 below. There have been no transfers between fair value measurements levels during the six months ended June 30, 2016. The below table sets forth the Company's assets and liabilities that were measured at fair value as of June 30, 2016 and December 31, 2015 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. June 30, 2016 (unaudited) Level 1 Level 2 Level 3 Total Assets: Foreign exchange contracts $ - $ 14 $ - $ 14 Total assets $ - $ 14 $ - $ 14 Liabilities: Contingent Consideration related to acquisitions $ - $ - $ 267 $ 267 Liabilities presented at fair value - - 633 633 Total liabilities $ - $ - $ 900 $ 900 December 31, 2015 Level 1 Level 2 Level 3 Total Liabilities: Contingent Consideration related to acquisitions $ - $ - $ 2,458 $ 2,458 Foreign exchange contracts - 62 - 62 Liability presented at fair value - - 719 719 Total liabilities $ - $ 62 $ 3,177 $ 3,239 The following table set forth the change of fair value measurements that are categorized within Level 3: Total fair value as of January 1, 2016 $ 3,177 Settlements (2,214 ) Changes in fair value recognized in expenses (86 ) Accretion of payment obligation 23 Total fair value as of June 30, 2016 (unaudited) $ 900

CONTINGENT CONSIDERATION

CONTINGENT CONSIDERATION	6 Months Ended
	Jun. 30, 2016
Business Combination, Contingent Consideration Arrangements [Abstract]
CONTINGENT CONSIDERATION	NOTE 4:- CONTINGENT CONSIDERATION The fair value of the Contingent Considerations was estimated based on 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%. Contingent Considerations are revalued to current fair value at each reporting date. Any change in the fair value, as a result of time passage is recognized in the financial expenses, any other changes in significant inputs such as the discount rate, the discount period or other factors used in the calculation, is recognized in operation expenses in the consolidated results of operations in the period the estimated fair value changes. Contingent Considerations will continue to be accounted for and measured at fair value until the contingencies are settled during fiscal year 2017. Accretion of the Contingent Considerations is included in financial expenses, net. During the first six months of 2016, the Company made a partial earn-out payment to Hayes' former shareholders in the amount of approximately $1,200. The balance of approximately $750 was paid in July 2016.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS, NET	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS, NET	NOTE 5:- GOODWILL AND OTHER INTANGIBLE ASSETS, NET a. Goodwill: Changes in goodwill: June 30, December 31, 2016 2015 Unaudited Goodwill, beginning of period $ 30,844 $ 17,467 Revaluation (foreign currency exchange differences) 85 (207 ) Acquisition - 13,584 Goodwill, end of period $ 30,929 $ 30,844 b. Net other intangible assets consisted of the following: Weighted average amortization June 30, December 31, period 2016 2015 (years) Unaudited Original amount: Core technology 5.09 $ 13,384 $ 13,384 Customer relationships 6.86 1,981 1,981 Non-competition agreement 4 224 224 15,589 15,589 Accumulated amortization: Core technology 6,101 4,834 Customer relationships 1,469 1,371 Non-competition agreement 140 112 7,710 6,317 Impairment of acquisition-related intangible assets (*) 2,132 - Other intangible assets ,net: Core technology 5,151 8,550 Customer relationships 512 610 Non-competition agreement 84 112 $ 5,747 $ 9,272 The estimated future amortization expense of other intangible assets as of June 30, 2016 for the years ending: Year ending December 31, 2016 $ 1,109 2017 1,845 2018 1,421 Thereafter 1,372 $ 5,747 (*) In the second quarter of 2016, the Company recorded a $2,132 impairment charge on developed technology. This impairment was based upon forecasted discounted cash flows which considered delayed sales trends with longer than expected sales cycles of Appfluent products, which the Company believes is primarily due to the innovative nature of this solution.

LIABILITY PRESENTED AT FAIR VAL

LIABILITY PRESENTED AT FAIR VALUE	6 Months Ended
	Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
LIABILITY PRESENTED AT FAIR VALUE	NOTE 6:- LIABILITY 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% of the proceeds payable in a Fundamental Transaction (as defined in the Agreement), upon consummation of a Fundamental Transaction until December 31, 2017. During such period, Plenus may elect to receive the $ 300 in cash in lieu of such compensation. This compensation right was accounted for in accordance with ASC No. 815-40, "Derivatives and Hedging", based on which it was considered as a derivative and presented at fair value, with liabilities presented at fair value and other long term liabilities, which is marked to market at each reporting period. As of June 30, 2016 and December 31, 2015, the liability amounted to $ 633

DERIVATIVES AND HEDGING ACTIVIT

DERIVATIVES AND HEDGING ACTIVITIES	6 Months Ended
	Jun. 30, 2016
DERIVATIVES AND HEDGING ACTIVITIES [Abstract]
DERIVATIVES AND HEDGING ACTIVITIES	NOTE 7:- 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 NIS 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". Net income from hedging transactions recognized in financial expenses, net during the first six months of 2016 and 2015 was $3 and $82, respectively. As of June 30, 2016 and December 31, 2015, the notional principal amount of the Hedging Contracts to sell U.S. dollars held by the Company was $6,422 and $6,471, respectively. As of June 30, 2016, the fair value of the Company's outstanding Hedging Contracts that were designated as hedging instruments was recorded as asset of $17, included in the balance sheet within "Other accounts receivable and prepaid expenses". As of December 31, 2015, the fair value of the Company's outstanding Hedging Contracts that were designated as hedging instruments was recorded as liability of $58, included in the balance sheet within "Accrued expenses and other current liabilities". As of June 30, 2016 and December 31, 2015, the fair value of the Company's outstanding Hedging Contracts that were not designated as hedging instruments was recorded as liability of $3 and $4, respectively, included in the balance sheet within "Other accounts receivable and prepaid expenses".

FINANCIAL EXPENSES (INCOME), NE

FINANCIAL EXPENSES (INCOME), NET	6 Months Ended
	Jun. 30, 2016
FINANCIAL EXPENSES, NET [Abstract]
FINANCIAL EXPENSES (INCOME), NET	NOTE 8:- FINANCIAL EXPENSES (INCOME), NET Six months ended June 30, 2016 2015 Unaudited Financial income: Revaluation of liabilities presented at fair value (86 ) $ - Hedging (3 ) (82 ) Exchange rate differences and other (119 ) (42 ) (208 ) (124 ) Financial expenses: Revaluation of liabilities presented at fair value - 59 Exchange rate differences and other 105 170 Accretion of contingent consideration 23 130 128 359 (80 ) $ 235

SUBSEQUENT EVENT

SUBSEQUENT EVENT	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENT	NOTE 9:- SUBSEQUENT EVENT In July 2015, the Company secured a short-term line of credit of approximately $5,000 from an Israeli bank, which was extended in August 2016 for an additional one-year period.

SIGNIFICANT ACCOUNTING POLICI16

SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2016
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 consolidated financial statements. The balance sheet at December 31, 2015 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 U.S. generally accepted accounting principles 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, 2015, included in the Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission ("SEC") on March 31, 2016. Results for the six months ended June 30, 2016 are not necessarily indicative of results that may be expected for the year ending December 31, 2016. 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.
Reclassifications	c. Reclassifications: Certain amounts in prior years’ financial statements have been reclassified to reflect certain immaterial adjustments related to prior year business combination. The reclassification had no effect on previously reported net income, cash flows or shareholders’ equity.
Impact of recently issued accounting standard not yet adopted	d. Impact of recently issued accounting standard not yet adopted: 1. Stock Compensation - In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which simplified certain aspects of the accounting for share-based payment transactions, including income taxes, classification of awards and classification in the statement of cash flows. ASU 2016-09 will be effective for the Company beginning in its first quarter of 2018. The Company is currently evaluating the impact of adopting ASU 2016-09 on its consolidated financial statements. 2. Leases - In February 2016, the FASB issued ASU 2016-02, "Leases" ("ASU 2016-02"). The updated standard aims to increase transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. This update is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods; early adoption is permitted and modified retrospective application is required. The Company is in the process of evaluating ASU 2016-02 to determine the impact of adopting ASU 2016-02 on its financial statements. 3. Financial Instruments - In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which updates certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 will be effective for the Company beginning in its first quarter of 2019. The Company does not believe the adoption of ASU 2016-01 will have a material impact on its consolidated financial statements. 4. Revenue Recognition –In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"). ASU 2014-09 supersedes the revenue recognition requirements in "Revenue Recognition (Topic 605)", and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. As currently issued and amended, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, though early adoption is permitted for annual reporting periods beginning after December 15, 2016. The Company is still evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures.

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Schedule of assets and liabilities measured at fair value	June 30, 2016 (unaudited) Level 1 Level 2 Level 3 Total Assets: Foreign exchange contracts $ - $ 14 $ - $ 14 Total assets $ - $ 14 $ - $ 14 Liabilities: Contingent Consideration related to acquisitions $ - $ - $ 267 $ 267 Liabilities presented at fair value - - 633 633 Total liabilities $ - $ - $ 900 $ 900 December 31, 2015 Level 1 Level 2 Level 3 Total Liabilities: Contingent Consideration related to acquisitions $ - $ - $ 2,458 $ 2,458 Foreign exchange contracts - 62 - 62 Liability presented at fair value - - 719 719 Total liabilities $ - $ 62 $ 3,177 $ 3,239
Schedule of change of fair value measurements that are categorized within Level 3	Total fair value as of January 1, 2016 $ 3,177 Settlements (2,214 ) Changes in fair value recognized in expenses (86 ) Accretion of payment obligation 23 Total fair value as of June 30, 2016 (unaudited) $ 900

GOODWILL AND OTHER INTANGIBLE18

GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables)	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Changes in Goodwill	June 30, December 31, 2016 2015 Unaudited Goodwill, beginning of period $ 30,844 $ 17,467 Revaluation (foreign currency exchange differences) 85 (207 ) Acquisition - 13,584 Goodwill, end of period $ 30,929 $ 30,844
Schedule of Net Other Intangible Assets	Weighted average amortization June 30, December 31, period 2016 2015 (years) Unaudited Original amount: Core technology 5.09 $ 13,384 $ 13,384 Customer relationships 6.86 1,981 1,981 Non-competition agreement 4 224 224 15,589 15,589 Accumulated amortization: Core technology 6,101 4,834 Customer relationships 1,469 1,371 Non-competition agreement 140 112 7,710 6,317 Impairment of acquisition-related intangible assets (*) 2,132 - Other intangible assets ,net: Core technology 5,151 8,550 Customer relationships 512 610 Non-competition agreement 84 112 $ 5,747 $ 9,272
Schedule of Other Intangible Assets Future Amortization Expense	Year ending December 31, 2016 $ 1,109 2017 1,845 2018 1,421 Thereafter 1,372 $ 5,747

FINANCIAL EXPENSES (INCOME), 19

FINANCIAL EXPENSES (INCOME), NET (Tables)	6 Months Ended
	Jun. 30, 2016
FINANCIAL EXPENSES, NET [Abstract]
Schedule of Financial Expenses (Income)	Six months ended June 30, 2016 2015 Unaudited Financial income: Revaluation of liabilities presented at fair value (86 ) $ - Hedging (3 ) (82 ) Exchange rate differences and other (119 ) (42 ) (208 ) (124 ) Financial expenses: Revaluation of liabilities presented at fair value - 59 Exchange rate differences and other 105 170 Accretion of contingent consideration 23 130 128 359 (80 ) $ 235

FAIR VALUE MEASUREMENTS (Schedu

FAIR VALUE MEASUREMENTS (Schedule of Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Assets:
Foreign exchange contracts	$ 14
Total assets	14
Liabilities:
Contingent Consideration related to acquisitions	267	$ 2,458
Foreign exchange contracts		62
Liabilities presented at fair value	633	719
Total liabilities	900	3,239
Level 1 [Member]
Assets:
Foreign exchange contracts
Total assets
Liabilities:
Contingent Consideration related to acquisitions
Foreign exchange contracts
Liabilities presented at fair value
Total liabilities
Level 2 [Member]
Assets:
Foreign exchange contracts	14
Total assets	14
Liabilities:
Contingent Consideration related to acquisitions
Foreign exchange contracts		62
Liabilities presented at fair value
Total liabilities		62
Level 3 [Member]
Assets:
Foreign exchange contracts
Total assets
Liabilities:
Contingent Consideration related to acquisitions	267	2,458
Foreign exchange contracts
Liabilities presented at fair value	633	719
Total liabilities	$ 900	$ 3,177

FAIR VALUE MEASUREMENTS (Sche21

FAIR VALUE MEASUREMENTS (Schedule of Change of Fair Value Measurements that are Categorized Within Level 3) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)
Change of fair value measurements that are categorized within Level 3
Total fair value as of January 1, 2016	$ 3,177
Settlements	(2,214)
Changes in fair value recognized in expenses	(86)
Accretion of payment obligation	23
Total fair value as of June 30, 2016	$ 900

CONTINGENT CONSIDERATION (Detai

CONTINGENT CONSIDERATION (Details) - USD ($) $ in Thousands	1 Months Ended	6 Months Ended
	Jul. 31, 2016	Jun. 30, 2016	Jun. 30, 2015
Discount rate		16.00%
Payment of contingent consideration		$ 1,239	$ 2,054
Subsequent Event [Member]
Payment of contingent consideration	$ 750

GOODWILL AND OTHER INTANGIBLE23

GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Schedule of Changes in Goodwill) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill, beginning of year	$ 30,844	$ 17,467
Revaluation (foreign currency exchange differences)	85	(207)
Acquisition		13,584
Goodwill, period end	$ 30,929	$ 30,844

GOODWILL AND OTHER INTANGIBLE24

GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Schedule of Net Other Intangible Assets) (Details) - USD ($) $ in Thousands		6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Original amount		$ 15,589		$ 15,589
Accumulated amortization		7,710		6,317
Impairment of acquisition-related intangible assets	[1]	2,132
Other intangible assets, net		5,747		9,272
Impairment charge		2,132
Core technology [Member]
Finite-Lived Intangible Assets [Line Items]
Original amount		13,384		13,384
Accumulated amortization		6,101		4,834
Impairment of acquisition-related intangible assets	[1]	2,132
Other intangible assets, net		$ 5,151		8,550
Weighted average amortization period		5 years 1 month 2 days
Customer relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Original amount		$ 1,981		1,981
Accumulated amortization		1,469		1,371
Impairment of acquisition-related intangible assets	[1]
Other intangible assets, net		$ 512		610
Weighted average amortization period		6 years 10 months 10 days
Non-competition agreement [Member]
Finite-Lived Intangible Assets [Line Items]
Original amount		$ 224		224
Accumulated amortization		140		112
Impairment of acquisition-related intangible assets	[1]
Other intangible assets, net		$ 84		$ 112
Weighted average amortization period		4 years
[1]	In the second quarter of 2016, the Company recorded a $2,132 impairment charge on developed technology. This impairment was based upon forecasted discounted cash flows which considered delayed sales trends with longer than expected sales cycles of Appfluent products, which the Company believes is primarily due to the innovative nature of this solution.

GOODWILL AND OTHER INTANGIBLE25

GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Schedule of Other Intangible Assets Future Amortization Expense) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
2,016	$ 1,109
2,017	1,845
2,018	1,421
Thereafter	1,372
Other intangible assets, net	$ 5,747	$ 9,272

LIABILITY PRESENTED AT FAIR V26

LIABILITY PRESENTED AT FAIR VALUE (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [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	$ 633	$ 719

DERIVATIVES AND HEDGING ACTIV27

DERIVATIVES AND HEDGING ACTIVITIES (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Net income (loss) from hedging transactions recognized in financial expenses, net	$ 3	$ 82
Designated as Hedging Instrument [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount	6,422		$ 6,471
Not Designated as Hedging Instrument [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair value of derivative liabilities	3		4
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair value of derivative assets	$ 17
Fair value of derivative liabilities			$ 58

FINANCIAL EXPENSES (INCOME), 28

FINANCIAL EXPENSES (INCOME), NET (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Financial income:
Revaluation of liabilities presented at fair value	$ (86)
Hedging	(3)	(82)
Exchange rate differences and other	(119)	(42)
Total financial income	(208)	(124)
Financial expenses:
Revaluation of liabilities presented at fair value		59
Exchange rate differences and other	105	170
Accretion of contingent consideration	23	130
Total financial expenses	128	359
Total financial expenses, net	$ (80)	$ 235

SUBSEQUENT EVENT (Details)

SUBSEQUENT EVENT (Details) - Short-term Line of Credit From Israeli Bank [Member] - USD ($)	1 Months Ended
	Aug. 31, 2016	Jul. 31, 2015
Short-term line of credit		$ 5,000
Subsequent Event [Member]
Short-term line of credit	$ 5,000
Line of credit term	1 year