Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2016shares | |
Document And Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2016 |
Entity Registrant Name | GILAT SATELLITE NETWORKS LTD |
Entity Central Index Key | 897,322 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | FY |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 54,592,667 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 40,133 | $ 18,435 |
Restricted cash | 62,229 | 100,779 |
Restricted cash held by trustees | 9,058 | 8,524 |
Trade receivables, net | 89,377 | 50,984 |
Inventories | 21,469 | 25,358 |
Other current assets | 17,017 | 16,223 |
Total current assets | 239,283 | 220,303 |
LONG-TERM INVESTMENTS AND RECEIVABLES: | ||
Severance pay funds | 7,791 | 7,545 |
Other long-term receivables | 436 | 400 |
Total long-term investments and receivables | 8,227 | 7,945 |
PROPERTY AND EQUIPMENT, NET | 80,837 | 81,963 |
INTANGIBLE ASSETS, NET | 11,383 | 17,154 |
GOODWILL | 43,468 | 43,468 |
Total assets | 383,198 | 370,833 |
CURRENT LIABILITIES: | ||
Short-term bank credit and loans | 7,000 | |
Current maturities of long-term loans | 4,617 | 4,542 |
Trade payables | 29,625 | 17,210 |
Accrued expenses | 53,429 | 23,481 |
Advances from customers and deferred revenues | 37,659 | 87,632 |
Advances from customers held by trustees | 7,498 | 8,515 |
Other current liabilities | 13,846 | 11,394 |
Total current liabilities | 146,674 | 159,774 |
LONG-TERM LIABILITIES: | ||
Long-term loans, net of current maturities | 16,932 | 21,493 |
Accrued severance pay | 7,485 | 7,506 |
Other long-term liabilities | 2,281 | 3,978 |
Total long-term liabilities | 26,698 | 32,977 |
COMMITMENTS AND CONTINGENCIES | ||
EQUITY: | ||
Share capital - Ordinary shares of NIS 0.2 par value: Authorized: 90,000,000 shares at December 31, 2016 and 2015; Issued and outstanding: 54,592,667 and 44,333,047 shares at December 31, 2016 and 2015, respectively | 2,593 | 2,048 |
Additional paid-in capital | 920,162 | 884,126 |
Accumulated other comprehensive loss | (3,224) | (3,727) |
Accumulated deficit | (709,705) | (704,365) |
Total equity | 209,826 | 178,082 |
Total liabilities and equity | $ 383,198 | $ 370,833 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - ₪ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value per share | ₪ 0.2 | ₪ 0.2 |
Ordinary shares, shares authorized | 90,000,000 | 90,000,000 |
Ordinary shares, shares issued | 54,592,667 | 44,333,047 |
Ordinary shares, shares outstanding | 54,592,667 | 44,333,047 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||
Products | $ 214,291 | $ 128,970 | $ 157,531 |
Services | 65,260 | 68,573 | 77,602 |
Total revenues | 279,551 | 197,543 | 235,133 |
Cost of revenues: | |||
Products | 162,563 | 94,683 | 106,905 |
Services | 41,498 | 48,635 | 44,593 |
Impairment of long-lived assets | 10,137 | ||
Total cost of revenues | 204,061 | 153,455 | 151,498 |
Gross profit | 75,490 | 44,088 | 83,635 |
Operating expenses: | |||
Research and development, net | 24,853 | 22,412 | 25,158 |
Selling and marketing | 23,411 | 24,823 | 32,537 |
General and administrative | 26,471 | 18,644 | 20,903 |
Restructuring costs | 1,508 | ||
Goodwill impairment | 20,402 | ||
Total operating expenses | 74,735 | 87,789 | 78,598 |
Operating income (loss) | 755 | (43,701) | 5,037 |
Financial expenses, net | (4,843) | (7,243) | (3,837) |
Income (loss) before taxes on income | (4,088) | (50,944) | 1,200 |
Taxes on income | 1,252 | 1,190 | 1,901 |
Loss from continuing operations | (5,340) | (52,134) | (701) |
Loss from discontinued operations | (200) | (795) | |
Loss | $ (5,340) | $ (52,334) | $ (1,496) |
Loss per share (basic and diluted): | |||
Continuing operations | $ (0.10) | $ (1.16) | $ (0.02) |
Discontinued operations | 0 | (0.02) | |
Total loss per share | $ (0.10) | $ (1.16) | $ (0.04) |
Weighted average number of shares used in computing loss per share: | |||
Basic and diluted | 51,970,458 | 45,026,069 | 43,777,223 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Loss | $ (5,340) | $ (52,334) | $ (1,496) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 514 | (3,022) | (2,205) |
Change in unrealized gain (loss) on hedging instruments, net | 396 | (124) | (1,791) |
Less - reclassification adjustments for net loss (gain) realized and included in loss | (407) | 839 | 985 |
Total comprehensive loss | $ (4,837) | $ (54,641) | $ (4,507) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Ordinary shares [Member] | Additional paid-in capital [Member] | Accumulated other comprehensive income (loss) [Member] | Accumulated deficit [Member] | Total |
Balance at Dec. 31, 2013 | $ 1,932 | $ 873,045 | $ 1,591 | $ (650,535) | $ 226,033 |
Balance, shares at Dec. 31, 2013 | 42,125,774 | ||||
Issuance of restricted share units (RSU) | $ 19 | 19 | |||
Issuance of restricted share units (RSU), shares | 332,650 | ||||
Stock-based compensation of options and RSUs | 2,427 | 2,427 | |||
Exercise of stock options | $ 15 | 1,152 | 1,167 | ||
Exercise of stock options, shares | 272,000 | ||||
Comprehensive income (loss) | (3,011) | (1,496) | (4,507) | ||
Balance at Dec. 31, 2014 | $ 1,966 | 876,624 | (1,420) | (652,031) | $ 225,139 |
Balance, shares at Dec. 31, 2014 | 42,730,424 | 42,730,424 | |||
Issuance of restricted share units (RSU) | $ 14 | $ 14 | |||
Issuance of restricted share units (RSU), shares | 283,175 | ||||
Stock-based compensation of options and RSUs | 1,901 | 1,901 | |||
Exercise of stock options | $ 68 | 5,601 | 5,669 | ||
Exercise of stock options, shares | 1,319,448 | ||||
Comprehensive income (loss) | (2,307) | (52,334) | (54,641) | ||
Balance at Dec. 31, 2015 | $ 2,048 | 884,126 | (3,727) | (704,365) | $ 178,082 |
Balance, shares at Dec. 31, 2015 | 44,333,047 | 44,333,047 | |||
Issuance of shares in a rights offering, net of issuance costs | $ 525 | 34,560 | $ 35,085 | ||
Issuance of shares in a rights offering, net of issuance costs, shares | 9,874,170 | ||||
Issuance of restricted share units (RSU) | $ 11 | 11 | |||
Issuance of restricted share units (RSU), shares | 214,350 | ||||
Stock-based compensation of options and RSUs | 908 | 908 | |||
Exercise of stock options | $ 9 | 568 | 577 | ||
Exercise of stock options, shares | 171,100 | ||||
Comprehensive income (loss) | 503 | (5,340) | (4,837) | ||
Balance at Dec. 31, 2016 | $ 2,593 | $ 920,162 | $ (3,224) | $ (709,705) | $ 209,826 |
Balance, shares at Dec. 31, 2016 | 54,592,667 | 54,592,667 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Loss | $ (5,340) | $ (52,334) | $ (1,496) |
Loss from discontinued operations | (200) | (795) | |
Loss from continuing operations | (5,340) | (52,134) | (701) |
Adjustments required to reconcile loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 13,108 | 15,072 | 15,951 |
Goodwill impairment | 20,402 | ||
Impairment of long lived assets | 10,137 | ||
Stock-based compensation of options and RSUs | 908 | 1,901 | 2,427 |
Accrued severance pay, net | (267) | (111) | 300 |
Accrued interest and exchange rate differences on restricted cash and deposits, net | (442) | 842 | 858 |
Exchange rate differences on long-term loans | (43) | (288) | (416) |
Capital loss (gain) from disposal of property and equipment | (88) | 82 | 430 |
Deferred income taxes, net | 4 | 1 | 7 |
Decrease (increase) in trade receivables, net | (37,586) | 4,553 | (2,457) |
Decrease (increase) in other assets (including short-term, long-term and deferred charges) | (3,386) | 998 | (20,251) |
Decrease (increase) in inventories | 2,221 | (2,821) | (445) |
Decrease (increase) in restricted cash directly related to operating activities, net | 48,519 | (87,004) | |
Increase (decrease) in trade payables | 12,454 | (5,133) | 2,226 |
Increase in accrued expenses | 30,149 | 2,935 | 5,401 |
Increase (decrease) in advances from customers | (53,081) | 79,884 | (25,935) |
Increase (decrease) in advances from customers held by trustees | (18) | (2,243) | 14,068 |
Increase (decrease) in other current liabilities and other long-term liabilities | 3,666 | (1,860) | (7,625) |
Net cash provided by (used in) operating activities | 10,778 | (14,787) | (16,162) |
Cash flows from investing activities: | |||
Purchase of property and equipment | (4,307) | (3,930) | (12,630) |
Investment in restricted cash (including long-term) | (17,001) | (22,717) | (12,788) |
Proceeds from restricted cash (including long-term) | 7,441 | 34,120 | 11,228 |
Investment in restricted cash held by trustees | (16,200) | (16,634) | (24,869) |
Proceeds from restricted cash held by trustees | 16,498 | 21,501 | 12,306 |
Net cash provided by (used in) investing activities | (13,569) | 12,340 | (26,753) |
Cash flows from financing activities: | |||
Capital lease payments | (309) | (609) | (234) |
Issuance of shares in a rights offering, net of issuance costs | 35,085 | ||
Issuance of restricted stock units and exercise of stock option | 588 | 5,683 | 1,186 |
Payment of obligation related to the purchase of intangible asset | (500) | (500) | |
Short-term bank credit and loans, net | (7,000) | (5,897) | 16,570 |
Repayment of long-term loans | (4,443) | (4,544) | (4,633) |
Net cash provided by (used in) financing activities | 23,921 | (5,867) | 12,389 |
Effect of exchange rate changes on cash and cash equivalents | 568 | (977) | (172) |
Increase (decrease) in cash and cash equivalents | 21,698 | (9,291) | (30,698) |
Cash and cash equivalents at the beginning of the year | 18,435 | 27,726 | 58,424 |
Cash and cash equivalents at the end of the year | 40,133 | 18,435 | 27,726 |
Cash paid during the year for continuing operations: | |||
Interest | 1,448 | 1,507 | 1,681 |
Income taxes | 2,105 | 517 | 1,582 |
Non-cash transactions: | |||
Reclassification from inventories to property and equipment | 2,452 | 2,519 | 2,857 |
Reclassification from property and equipment to inventories | 733 | 114 | 381 |
Capital lease | $ 26 | $ 1,123 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | NOTE 1:- GENERAL a. Organization: Gilat Satellite Networks Ltd. (the "Company") and its subsidiaries (the "Group" or "Gilat") is a global provider of end-to-end broadband satellite communication ("Satcom") network solutions and services. Gilat designs, manufactures and provides full network management and equipment for Satcom as well as professional services to satellite operators and service providers worldwide. The equipment consists of very small aperture terminals ("VSATs"), solid-state power amplifiers ("SSPAs"), block up converters ("BUCs"), low-profile antennas and on-the-Move/on-the-Pause terminals. VSATs are earth-based terminals that transmit and receive broadband internet, voice, data and video via satellite. In addition, Gilat provides integrated small cell solutions with its satellite backhaul for the cellular market. Gilat also provides connectivity services, internet access and telephony to enterprise, government and residential customers over its own networks and also over networks which Gilat installs based on Build Operate Transfer (" ") contracts. The Company was incorporated in Israel in 1987 and launched its first generation VSAT in 1989. The Group's business is managed and reported through three separate reportable segments, consisting of the Group’s Commercial, Mobility and Services divisions. As to the Group's customers, geographic and segment information, see Note 13. b. Discontinued operation: On December 2, 2013, the Company sold its subsidiary, Spacenet Inc. ("Spacenet"), to SageNet of Tulsa, LLC for approximately $ 16,000, subject to certain post-closing adjustments and expenses. The Company recorded a loss of $ 1,385 as a result of this sale. The Company previously provided managed network communications services through Spacenet utilizing satellite wireline and wireless networks and associated technology mainly in the United States. During 2015 and 2014, some of the post-closing adjustments were resolved and consequently the Company incurred additional expenses in their respect of $ 200 and $ 795, respectively, which were accounted as discontinued operations. During 2016, no additional expenses were incurred. Spacenet was previously part of the Services division. c. The Company depends on a major supplier to supply certain components and services for the production of its products or providing services. If this supplier fails to deliver or delays the delivery of the necessary components or services, the Company will be required to seek alternative sources of supply. A change in suppliers could result in manufacturing delays or services delays which could cause a possible loss of sales and, or, additional incremental costs and, consequently, could adversely affect the Company's results of operations and financial position. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"), followed on a consistent basis. a. Use of estimates: The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. b. Functional currency: The majority of the revenues of the Company and certain of its subsidiaries are generated in U.S. dollars ("dollar") or linked to the dollar. In addition, a substantial portion of the Company's and certain of its subsidiaries' costs are incurred in dollars. The Company's management believes that the dollar is the primary currency of the economic environment in which the Company and certain of its subsidiaries operate. Thus, the functional and reporting currency of the Company and certain of its subsidiaries is the dollar. Accordingly, monetary accounts maintained in currencies other than the dollar are remeasured into dollars in accordance with ASC 830, "Foreign Currency Matters" ("ASC 830"). All transaction gains and losses of the remeasurement of monetary balance sheet items are reflected in the consolidated statements of operations as financial income or expenses, as appropriate. The financial statements of certain foreign subsidiaries, whose functional currency has been determined to be their local currency, have been translated into dollars. Assets and liabilities have been translated using the exchange rates in effect at the balance sheet date. Statements of operations amounts have been translated using specific rates. The resulting translation adjustments are reported as a component of equity in accumulated other comprehensive income (loss). c. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its subsidiaries in which the Company has a controlling voting interest and entities consolidated under the variable interest entities ("VIE") provisions of ASC 810, "Consolidation" ("ASC 810"). Inter-company balances and transactions have been eliminated upon consolidation. Most of the activity of Gilat Colombia S.A. E.S.P. ("Gilat Colombia") consists of operating subsidized projects for the Colombian Ministry of Information Technologies and Communications ("Ministry of ITC") through its "Dirección de Conectividad", or DirCon, (formerly known as Compartel Program). The first projects were originally awarded to Gilat's Colombian subsidiaries in 1999 and 2002 and were extended several times. An additional project was awarded to Gilat Colombia As required in the bid documents for the Ministry of ITC projects, the Group established trusts (the "Trusts") and entered into governing trust agreements for each project (collectively, the " The Trusts are considered VIEs and Gilat Colombia is identified as the primary beneficiary of the Trusts. Under ASC 810, the Company performs ongoing reassessments of whether it is the primary beneficiary of the VIE. The assessment of Company's management is that the Company has the power to direct the activities of a VIE that most significantly impact the VIE's activities (it is responsible for establishing and operating the networks), and the obligation to absorb losses of the VIE that could potentially be significant to the VIE and the right to receive benefits from the VIE that could potentially be significant to the VIE's economic performance. As such, the Trusts were consolidated in the financial statements of the Company since their inception. The cash held by the Trusts is consolidated within the financial statements of the Company and classified as "Restricted cash held by trustees". The advances from customers received by the Trusts are consolidated within the financial statements of the Company and classified as "Advances from customers held by trustees". d. Cash equivalents: Cash equivalents are short-term highly liquid investments that are not restricted as to withdrawals or use with maturities of three months or less at the date acquired. e. Short-term and long-term restricted cash: Short-term restricted cash is either invested in certificates of deposit, which mature within one year, or in short-term highly liquid investments that are restricted to withdrawals or use. As of December 31, 2016, the vast majority of this amount was linked to the dollar. Such certificates of deposit are used as collateral for performance and advance payment guarantees to customers, surety bonds and loans and the lease of the Group's offices, and bear weighted average interest rates of 0.36% and 0.19% as of December 31, 2016 and 2015, respectively. Long-term restricted cash is primarily invested in certificates of deposit, which mature in more than one year. As of December 31, 2016, the amount is linked to currencies other than the and the f. Restricted cash held by trustees: As of December 31, 2016 and 2015, short-term restricted cash held by trustees is invested in a savings bank account linked to the Colombian Peso. The restricted cash is being released based upon performance milestones as stipulated in the agreements with the Ministry ITC g. Inventories: Inventories are stated at the lower of cost or market value. Inventory write-offs are provided to cover risks arising from slow-moving items, excess inventories, discontinued products, new products introduction and for market prices lower than cost. Any write-off is recognized in the consolidated statement of operations as cost of revenues Cost is determined as follows: Raw materials, parts and supplies - using the weighted average cost method. Work-in-progress - represents the cost of manufacturing with the addition of allocable indirect manufacturing costs, using the weighted average cost method. Finished products - calculated on the basis of raw materials, direct manufacturing costs with the addition of allocable indirect manufacturing costs, using the weighted average cost method. h. Property and equipment, net: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets as follows: Years Buildings 50 Computers, software and electronic equipment 3 - 16 Office furniture and equipment 3 - 17 Vehicles 5 - 7 Leasehold improvements are amortized by the straight-line method over the term of the lease or the estimated useful life of the improvements, whichever is shorter. Equipment leased to others under operating leases is carried at cost less accumulated depreciation and depreciated using the straight-line method over the useful life of the assets. The Group has accounted for its assets which are under a capital lease arrangement in accordance with ASC 840 "Leases " ("ASC 840"). i. Intangible assets: Intangible assets subject to amortization are initially recognized based on the fair value allocated to them, and subsequently stated at amortized cost. The assets are amortized over their estimated useful lives using the straight - Years Technology 7.9 Customer relationships 6.8 Marketing rights and patents 12.1 j. Impairment of long-lived assets The Group's long-lived assets and identifiable intangible assets that are subject to amortization are reviewed for impairment in accordance with ASC 360, "Property, Plant and Equipment" ("ASC 360"), whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. Such measurement includes significant estimates. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. However, the carrying amount of a group of assets is not to be reduced below its fair value. During 2015, the Company encountered higher than expected expenses related to its subsidized project for the Ministry of ITC " " consolidated - consolidated In 2014 and 2016, no impairments of long-lived assets were recorded. k. Goodwill: Goodwill represents the excess of the purchase price in a business combination over the fair value of the net tangible and intangible assets acquired. Under ASC 350, goodwill is not amortized, but rather is subject to an annual impairment test. Goodwill is tested for impairment at the reporting unit level by comparing the fair value of the reporting unit with its carrying value. The Company performs its annual impairment analysis of goodwill in the fourth quarter of the year, or more often if there are indicators of impairment present. ASC 350 allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. If the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the two-step impairment test is performed. Alternatively, ASC 350 permits an entity to bypass the qualitative assessment for any reporting unit and proceed directly to performing the first step of the goodwill impairment test. The provisions of ASC 350 require that the quantitative two-step impairment test will be performed on goodwill at the level of the reporting units. In the first step, or " ", " ", The Company determines the fair value of each reporting unit by using the income approach, which utilizes a discounted cash flow model, as it believes that this approach best approximates the reporting unit's fair value. Judgments and assumptions related to revenue, operating income, future short-term and long-term growth rates, weighted average cost of capital, interest, capital expenditures, cash flows, and market conditions are inherent in developing the discounted cash flow model. The Company considers historical rates and current market conditions when determining the discount and growth rates to use in its analyses. If these estimates or their related assumptions change in the future, the Company may be required to record impairment charges for its goodwill. Following the existence of impairment indicators during 2015, the Company performed in that year a goodwill impairment test for the two reporting units in the Mobility Division, using the income approach to value the reporting units' fair value. The impairment test resulted in a goodwill impairment of $ 20,402 attributable to the Wavestream reporting unit. This impairment was recorded as a "Goodwill impairment" within operating expenses in the consolidated In 2014 and 2016, no impairments of goodwill were recorded. l. Contingencies The Company is currently 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. m. Revenue recognition: The Group generates revenues mainly from the sale of products, which includes construction of networks, services for satellite-based communications networks, connectivity services, internet access and telephony to enterprises, government and residential customers. These services are rendered under large-scale contracts over the Group's networks which are built using the Group's equipment and also over networks which the Group installs based on BOT contracts. contracts Revenues from product sales are recognized in accordance with ASC 605-10, "Revenue recognition" and with ASC 605-25 "Multiple-Element Arrangements" ("ASC 605"), when delivery has occurred, persuasive evidence of an agreement exists, the vendor's fee is fixed or determinable, no further obligation exists and collectability is probable. When significant acceptance provisions are included in the arrangement revenues are deferred until the acceptance occurs. Generally, the Group does not grant rights of return. Service revenues are recognized ratably over the period of the contract or as services are performed, as applicable. When a sales arrangement contains multiple elements, such as equipment and services, the Company allocates revenues to each element based on a selling price hierarchy. The selling price for a deliverable is based on its vendor specific objective evidence (''VSOE'') if available, third party evidence (''TPE'') if VSOE is not available, or estimated selling price (''ESP'') if neither VSOE nor TPE is available. In multiple element arrangements, revenues are allocated to each separate unit of accounting for each of the deliverables using the relative selling prices of each of the deliverables in the arrangement based on the aforementioned selling price hierarchy. Where VSOE or TPE does not exist, the Group establishes ESP based on management judgment, considering internal factors such as margin objectives, pricing practices and historical sales. Revenue from products under sales-type lease contracts is recognized in accordance with ASC 840 upon installation or upon delivery, in cases where the customer obtains its own or other's installation services. The net investments in sales-type leases are discounted at the interest rates implicit in the leases. The present values of payments due under sales-type lease contracts are recorded as revenue at the time of shipment or installation, as appropriate. Future interest income is deferred and recognized over the related lease term as financial income. Revenue from products and services under operating leases of equipment is recognized ratably over the lease period, in accordance with ASC 840. Revenues from contracts under which the Group provides construction or production of products ("Production-Type Contracts") which are significantly customized to the buyer's specifications are recognized in accordance with ASC 605-35, "Construction-Type and Production-Type Contracts". In Production-Type Contracts under which units of a basic product in a continuous or sequential production process are produced, revenues are recognized based on the units-of-delivery method, recognizing revenue for each unit on the date that unit is delivered. In other Production-Type Contracts, which require significant construction and customization to the customer's specifications, revenues are recognized using the percentage-of-completion method of accounting based on the input measure by using the ratio of costs related to construction performance incurred to the total estimated amount of such costs. The amount of revenue recognized is based on the total fees under the arrangement and the percentage of completion achieved. Provisions for estimated losses on uncompleted contracts, if any, are made in the period in which such losses are first determined, in the amount of the estimated loss on the entire contact. Deferred revenue and advances from customers represent amounts received by the Group when the criteria for revenue recognition as described above are not met and are included in "Advances from customers and deferred revenues" and "Other long-term liabilities". When deferred revenue is recognized as revenue, the associated deferred charges are also recognized as cost of revenues n. Shipping and advertising expenses: Selling and marketing expenses include shipping expenses in the amounts of $ 1,367, $ 976 and $ 2,685 for the years ended December 31, 2016, 2015 and 2014, respectively. Advertising costs are expensed as incurred. Advertising expenses amounted to $ 243, $ 181 and $ 273 for the years ended December 31, 2016, 2015 and 2014, respectively. o. Warranty costs: Generally, the Group provides product warranties for periods between twelve to twenty four months at no extra charge. A provision is recorded for estimated warranty costs based on the Group's experience. Warranty expenses amounted to $ 704, $ 864 and $ 361 for the years ended December 31, 2016, 2015 and 2014, respectively. p. Research and development expenses: Research and development costs are charged to the consolidated Based on the Company's product development process, technological feasibility is established upon completion of a working model. Costs incurred by the Company between completion of the working models and the point at which the products are ready for general release has been insignificant. Therefore, all research and development costs have been expensed. q. Research and development grants: The Group receives royalty-bearing and non-royalty-bearing grants from the Government of Israel and from other funding sources, for approved research and development projects. These grants are recognized at the time the Group is entitled to such grants on the basis of the costs incurred or milestones achieved as provided by the relevant agreement and included as a deduction from research and development expenses. Research and development grants deducted from research and development expenses amounted to $ 1,624, $ 2,540 and $ 2,477 for r. Accounting for stock-based compensation: The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation-Stock Compensation" ("ASC 718"). ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service period in the Company's consolidated statement of operations. The Company recognizes compensation expenses for the value of its awards, based on the straight - The Company selected the Black-Scholes-Merton option - s. Income taxes: The Group accounts for income taxes in accordance with ASC 740, "Income Taxes" ("ASC 740"). ASC 740 prescribes the use of the liability method whereby deferred tax assets and liability account balances are determined based on differences between the financial reporting and the tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Group provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value if it is more likely than not that a portion or all of the deferred tax assets will not be realized. The Group implements a two-step approach for recognizing and measuring uncertain tax positions. Recognition (step one) occurs when an enterprise concludes that a tax position, based solely on its technical merits, is more Measurement (step two) is only addressed if step one has been satisfied (i.e., the position is more Under step two, the tax benefit is measured as the largest amount of benefit, determined on a cumulative probability basis that is more-likely-than-not to be realized upon ultimate settlement. The Group classifies interest and penalties on income taxes as financial expenses and general and administrative expenses, respectively. t. Concentrations of credit risks: Financial instruments that potentially subject the Group to concentrations of credit risk consist principally of cash and cash equivalents, short-term and long-term restricted cash, short-term restricted cash held by trustees and trade receivables. The majority of the Group's cash and cash equivalents are invested in dollars with major banks in Israel, the United States and South America. Generally, these cash and The majority of the Group's short-term and long-term restricted cash are invested in dollars with major banks in South America. The Group is entitled to receive the restricted cash generally based upon actual performance of its projects. The Company also has restricted cash held by trustees, which is invested in Colombian Pesos with major banks in Colombia. As of December 31, 2016, restricted cash held by the trustees amounted to $ 9,058. The Company is entitled to receive the restricted cash held by the trustee in stages based upon operational milestones. The cash held in the trusts is reflected in the Company's consolidated Trade receivables of the Group are mainly derived from sales to major customers located in the South and Central America and Asia. The Group performs ongoing credit evaluations of its customers and obtains letters of credit and bank guarantees for certain receivables. An allowance for doubtful accounts is determined with respect to specific debts that the Group has determined to be doubtful of collection. u. Employee related benefits: Severance pay: The Company's liability for severance pay for its Israeli employees is calculated pursuant to the Israeli Severance Pay Law based on the most recent salary of the employees multiplied by the number of years of employment, as of the balance sheet date. Employees whose employment is terminated by the Company or who are otherwise entitled to severance pay in accordance with Israeli law or labor agreements are entitled to one month's salary for each year of employment or a portion thereof. The Company's liability for all of its Israeli employees is partly provided for by monthly deposits for insurance policies and the remainder by an accrual. The value of these policies is recorded as an asset in the Company's consolidated balance sheet. During April and May 2008 (the "transition date"), the Company amended the contracts of most of its Israeli employees so that starting on the transition date, such employees are subject to Section 14 of the Severance Pay Law, 1963 ("Section 14") for severance pay accumulated in periods of employment subsequent to the transition date. In accordance with Section 14, upon termination, the release of the contributed amounts from the fund to the employee shall relieve the Company from any further severance liability and no additional payments shall be made by the Company to the employee. As a result, the related obligation and amounts deposited on behalf of such obligation are not stated on the consolidated The carrying value for the deposited funds for the Company's employees' severance pay for employment periods prior to the transition date Severance pay expenses for the years ended December 31, 2016, 2015 and 2014, amounted to $ 2,577, $ 2,407 and $ 2,652, respectively. 401(k) The Group has a number of savings plans in the United States that qualify under Section 401(k) of the Internal Revenue Code. U.S. employees may contribute up to 100% of their pretax salary, but not more than statutory limits. Generally, the Group contributes one dollar for each dollar a participant contributes in this plan, in an amount of up to 3% of salary and in addition, in some plans, it contributes fifty cents for each dollar a participant contributes in this plan, for an additional 3%. Matching contributions for all the plans were $ 357, $ 327 and $ 311 for the years ended 2016, 2015 and 2014, respectively. Matching contributions are invested in proportion to each participant's voluntary contributions in the investment options provided under the plan. v. Fair value of financial instruments: The Group applies ASC 820, "Fair Value Measurements and Disclosures" ("ASC 820"). Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., "the exit price") in an orderly transaction between market participants at the measurement date. In determining fair value, the Group uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Group. Unobservable inputs are inputs that reflect the Group's assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the inputs as follows: Level 1 - Valuations based on quoted prices in active markets for identical assets that the Company has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. 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 availability of observable inputs can vary from investment to investment and is affected by a wide variety of factors, including, for example, the type of investment, the liquidity of markets and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment and the investments are categorized as Level 3. The carrying amounts of cash and cash equivalents, restricted cash, trade receivables, other current assets, trade payables, accrued expenses and other current liabilities approximate their fair value due to the short-term maturities of such instruments. The Group measured the fair value of the forward contracts in accordance with ASC 820 and classified them as level 2. 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. w. Restructuring costs: The Company accounts for restructuring activities in accordance to ASC 420, "Exit or Disposal Cost Obligations", which requires that a liability for a cost associated with an exit or disposal activity be recognized and measured. During 2015, the Company initiated a restructuring plan to improve its operating efficiency at its various operating sites and to reduce its operating expenses. As a result of the restructuring plan, the Company recorded $ 367 for one-time employee termination benefits and $ 1,141 for costs to terminate a manufacturing contract for the year ended December 31, 2015. All of the expenses accrued under the 2015 restructuring plan were paid during 2015 and 2016. x. Loss per share: In accordance with ASC 260, "Earning per Share ", All employee stock options and RSUs were anti-dilutive for the years ended December 31, 2016, 2015 and 2014, respectively. The loss per share for the years ended December 31, 2015 and 2014 was adjusted, following the rights offering that the Company consummated in March 2016. y. Derivatives and hedging activities: ASC 815, "Derivatives and Hedging" ("ASC 815"), as amended, requires the Company to recognize all derivatives on the balance sheet at fair value. Derivatives that are not hedges must be adjusted to fair value through income (loss). If the derivative is a hedge, depending on the nature of the hedge, changes in the fair value of derivatives are either offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings or recognized in other comprehensive income (loss) until the hedged item is recognized in earnings. The ineffective portion of a derivative's change in fair value is immediately recognized in earnings. The Company measured the fair value of the forward contracts in accordance with ASC 820 (classified as level 2). A subsidiary of the Company entered into forward contracts in order to hedge the exposure to variability in expected future cash flows resulting from changes in related foreign currency exchange rates. The Company entered into forward contracts to hedge against the risk of changes in future cash flow from payments of payroll and related expenses denominated in New Israeli Shekels ("NIS"). z. Comprehensive income (loss): The Company accounts for comprehensive income (loss) in accordance with ASC 220, "Comprehensive Income". Comprehensive income (loss) generally represents all changes in equity during the period except those resulting from investments by, or distributions to, shareholders. The Company determined that its items of other comprehensive income (loss) relate to unrealized gains and losses on hedging derivative instruments and foreign currency translation adjustments. The following table shows the components of accumulated other comprehensive income (loss), Year ended December 31, 2016 Foreign currency translation adjustments Unrealized gains (losses) on cash flow hedges Total Beginning balance $ (3,636 ) $ (91 ) $ (3,727 ) Other comprehensive income before reclassifications 514 396 910 Amounts reclassified from accumulated other comprehensive income - (407 ) (407 ) Net current-period other comprehensive income (loss) 514 (11 ) 503 Ending balance $ (3,122 ) $ (102 ) $ (3,224 ) Year ended December 31, 2015 Foreign currency translation adjustments Unrealized gains (losses) on cash flow hedges Total Beginning balance $ (614 ) $ (806 ) $ (1,420 ) Other comprehensive loss before reclassifications (3,022 ) (124 ) (3,146 ) Amounts reclassified from accumulated other comprehensive loss - 839 839 Net current-period other comprehensive income (loss) (3,022 ) 715 (2,307 ) Ending balance $ (3,636 ) $ (91 ) $ (3,727 ) aa. Impact of recently issued accounting pronouncements: In May 2014, the FASB issued Accounting Standard Update No. 2014-09, Revenue from Contracts with Customers (Topic 606). The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU is effective for the Company in 2018 using either of two methods: (i) retrospective application of ASU 2014-09 to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) retrospective application of ASU 2014-09 with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU 2014-09 (" "). The Company has established an implementation team and has started analyzing the impact of the guidance. The Company is in the process of reviewing its current accounting policies and practices to identify potential differences that would result from applying the requirements of the guidance to its revenue contracts and related expenses. The Company intends to complete the process during 2017 and adopt the new standard on January 1, 2018 using the Modified Retrospective Adoption Transition Method. Based on the preliminary evaluations to date, the Company identified several issues that may be treated differently under the new revenue standard, such as: a) Incremental costs of obtaining a contract - Capitalization and amortization of incremental costs of obtaining a contract, such as sales commissions, will be recognized as assets if they are recoverable. The asset will be amortized on a systematic basis consistent with the pattern of the transfer of the goods or services to which the asset relates. Currently, the Company expenses commissions cost as incurred; b) Limitation of revenue recognition to the amount that is not contingent - Currently, the amount allocable to the delivered items is limited to the amount that is not contingent upon the delivery of additional items or meeting a specified performance condition. However, this limitation does not exist under the new standard, which might cause an earlier recognition than current |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 3:- INVENTORIES a. Inventories are comprised of the following: December 31, 2016 2015 Raw materials, parts and supplies $ 6,461 $ 7,084 Work in progress 6,541 7,471 Finished products 8,467 10,803 $ 21,469 $ 25,358 b. Inventory write-offs totaled $ 4,833, $ 2,054 and $ 1,002 in 2016, 2015 and 2014, respectively. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 4:- PROPERTY AND EQUIPMENT, NET a. Composition of property and equipment, grouped by major classifications, is as follows: December 31, 2016 2015 Cost: Buildings and land $ 90,564 $ 93,499 Computers, software and electronic equipment 44,993 70,590 Equipment leased to others 76,917 73,798 Office furniture and equipment 5,930 7,782 Vehicles 444 436 Leasehold improvements 2,548 2,330 221,396 248,435 Accumulated depreciation and impairment *) 140,559 166,472 Depreciated cost $ 80,837 $ 81,963 *) During the year ended December 31, 2015, the Company recorded an impairment loss of $ 4,106. The impairment loss was recorded as reduction of the cost of equipment leased to others and computers, software and electronic equipment in the amount of $ 4,030 and $ 76, respectively. **) The Company recorded a reduction of $ 33,299 to the cost and accumulated depreciation of fully depreciated equipment and leasehold improvements that are no longer in use for the year ended December 31, 2016. b. Depreciation expenses totaled $ 7,337, $ 9,256 and $ 10,091 in 2016, 2015 and 2014, respectively. c. At December 31, 2016 and 2015, property and equipment under capital leases consisted of assets with depreciable cost of $ 1,121. Accumulated depreciation under capital leases amounted to $ 559 and $ 334 as of December 31, 2016 and 2015, respectively. d. As for pledges and securities, see also Note 11e |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 5:- INTANGIBLE ASSETS, NET a. Composition of intangible assets, grouped by major classifications, is as follows: December 31, 2016 2015 Original amounts: Technology $ 42,504 $ 42,504 Customer relationships 4,466 4,466 Marketing rights and patents 3,421 3,421 50,391 50,391 Accumulated amortization: Technology 33,243 28,271 Customer relationships 3,999 3,419 Marketing rights and patents 1,766 1,547 39,008 33,237 $ 11,383 $ 17,154 b. Amortization expenses amounted to $ 5,771, $ 5,816 and $ 5,860 for the years ended December 31, 2016, 2015 and 2014, respectively. c. Estimated amortization expenses for the following years is as follows: Year ending December 31, 2017 $ 5,674 2018 3,275 2019 911 2020 441 2021 and thereafter 1,082 $ 11,383 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2016 | |
GOODWILL [Abstract] | |
GOODWILL | NOTE 6:- GOODWILL December 31, 2016 2015 Goodwill *) $ 105,647 $ 105,647 Accumulated impairment losses **) (62,179 ) (62,179 ) $ 43,468 $ 43,468 *) The carrying amount of the goodwill is associated with the Mobility Division. **) During the year ended December 31, 2015, the Company recorded an impairment loss of $ 20,402 (see also note 2k). |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 7:- COMMITMENTS AND CONTINGENCIES a. Lease commitments: Minimum lease commitments of certain subsidiaries under non-cancelable operating lease agreements with respect to premises occupied by them, at rates in effect subsequent to December 31, 2016, are as follows: Lease Year ending December 31, commitments 2017 $ 1,661 2018 1,176 2019 312 $ 3,149 Rent expenses during the years ended December 31, 2016, 2015 and 2014 were $ 2,568, $ 2,548 and $ 2,966, respectively. Some of the Group's lease agreements do not include renewal options. b. Commitments with respect to space segment services: The Company provides its customers with space segment capacity services, which are purchased from third parties. Future minimum payments due for space segment services to be rendered subsequent to December 31, 2016, are as follows: Year ending December 31, 2017 $ 7,960 2018 1,878 2019 123 $ 9,961 Space segment services expenses during the years ended December 31, 2016, 2015 and 2014 were $ 10,278, $ 8,333 and $ 7,913, respectively. c. In 2016 and 2015, the Company's primary material purchase commitments were with inventory suppliers. The Company's material inventory purchase commitments are based on purchase orders, or on outstanding agreements with some of the Company's suppliers of inventory. As of December 31, 2016 and 2015, the Company's major outstanding inventory purchase commitments amounted to $ 13,494 and $ 14,213, respectively, all of which were orders placed or commitments made in the ordinary course of its business. As of December 31, 2016 and 2015, $ 5,530 and $ 3,789, respectively, of these orders and commitments, were from suppliers which can be considered sole or limited in number. d. Royalty commitments: 1. The Company is committed to pay royalties to the Israel Innovation Authority ("IIA"), formerly known as the Office of the Chief Scientist, IIA IIA As of December 31, 2016 and 2015, the Company had a contingent liability to pay royalties in the amount of approximately $ 1,237 and $ 749, respectively. The Company did not pay or accrue any amounts for such royalties during the years ended December 31, 2016, 2015 and 2014. 2. Research and development projects undertaken by the Company were partially financed by the Binational Industrial Research and Development Foundation ("BIRD Foundation"). The Company is committed to pay royalties to the BIRD Foundation at a rate of 5% of sales proceeds generating from projects for which the BIRD Foundation provided funding up to 150% of the sum financed by the BIRD Foundation. The obligation to pay these royalties is contingent on actual sales of the products and in the absence of such sales, no payment is required. As of December 31, 2016 and 2015, the Company had a contingent liability to pay royalties in the amount of approximately $ 121. The Company did not pay or accrue any amounts for such royalties during the years ended December 31, 2016, 2015 and 2014. e. Litigation: In 2003, the Brazilian tax authority filed a claim against the Company's subsidiary in Brazil (an inactive company), for the payment of taxes allegedly due by the subsidiary. Several legal proceedings with respect to this matter were carried out in the Brazilian courts. These proceedings were concluded with a final unfavorable decision against the subsidiary in February and March 2016. As of December 31, 2016, the total amount of this claim, including interest, penalties and legal fees, is approximately $ 10,100, of which approximately $ 1,200 is principal. Based on the Company's external legal counsel's opinion, the Company believes that any foreclosure procedures against the subsidiary cannot be legally redirected to any of the Group's entities and managers. Accordingly, the chances that such redirection will lead to a loss recognition are remote and therefore, the Company did not record any accrual related to this litigation. In addition, the Group is in the midst of different stages of audits and disputes with various tax authorities in different parts of the world, specifically in certain jurisdictions in Latin America. Further, the Company is the defendant in various other lawsuits, including employment-related litigation claims and other legal proceedings in the normal course of its business. While the Company intends to defend the aforementioned matters vigorously, it believes that a loss in excess of its accrued liability with respect to these claims is not probable. f. Pledges and securities, see Note 11e. g. Guarantees: The Group guarantees its performance to certain customers (generally to government entities) through bank guarantees, surety bonds from insurance companies and corporate guarantees. Guarantees are often required for the Group's performance during the installation and operational periods. The guarantees typically expire when certain operational milestones are met. As of December 31, 2016, the aggregate amount of bank guarantees and surety bonds from insurance companies outstanding in order to secure the Group's various performance obligations was $ 139,676, including an aggregate of $ 135,844 on behalf of its subsidiaries in Peru. The Group has $ 24,143 of restricted cash to these guarantees. In accordance with ASC 460, "Guarantees" ("ASC 460"), as the guarantees above are performance guarantees for the Group's own performance, such guarantees are excluded from the scope of ASC 460. The Group has not recorded any liability for such amounts, since the Group expects that its performance will be acceptable. To date, no guarantees have ever been exercised against the Group. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | NOTE 8:- DERIVATIVE INSTRUMENTS The following table details the fair value of derivative instruments in the consolidated Fair value of derivative instruments December 31, Balance sheet line item 2016 2015 Derivative: Foreign exchange forward contracts (1) Other current liabilities $ - $ (57 ) Foreign exchange forward contracts (2) Other current liabilities $ (102 ) $ (91 ) (1) To protect against changes in value of forecasted foreign currency cash flows a subsidiary entered into forward contracts in order to hedge the exposure to variability in expected future cash flows resulting from changes in related foreign currency exchange rates. These contracts did not meet the requirement for hedge accounting. The amount recorded as financial income (expense) related to these contracts in 2016, 2015 and 2014 was $ (670), $ 2,116 and $ 1,949, respectively. As of December 31, 2016 there are no outstanding forward contracts that did not meet the requirement for hedge accounting. (2) To protect against changes in value of forecasted foreign currency cash flows resulting from salaries and related payments that are denominated in NIS, the Company has entered into foreign currency forward contracts. These contracts are designated as cash flows hedges, as defined by ASC 815, as amended, and are considered highly effective as hedges of these expenses. The forward contracts are expected to occur at various dates within the following twelve months. During the years ended December 31, 2016, 2015 and 2014, the Company recognized net income (loss) related to the effective portion of its hedging instruments. The effective portion of the hedged instruments has been included as an offset (addition) of payroll expenses and other operating expenses in the consolidated Year ended December 31, 2016 2015 2014 Cost of revenues of products $ (53 ) $ (100 ) $ (107 ) Cost of revenues of services (24 ) (55 ) (76 ) Research and development, net (154 ) (291 ) (337 ) Selling and marketing (72 ) (180 ) (166 ) General and administrative (90 ) (187 ) (201 ) $ (393 ) $ (813 ) $ (887 ) The ineffective portion of the hedged instrument which was recorded during the years ended December 31, 2016, 2015 and 2014, was immaterial and has been recorded as financial income ( expenses |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
EQUITY | NOTE 9:- EQUITY a. Share capital: 1. Ordinary shares confer upon their holders voting rights, the right to receive cash dividends and the right to share in excess assets upon liquidation of the Company. 2. In March 2016, the Company consummated a rights offering, in which the Company granted, at no charge to the holders of the Company's ordinary shares as of the record date for the rights offering, for each nine (9) ordinary shares owned, one non-transferable subscription right to purchase two ordinary shares at a price of $ 7.16 (reflecting a price of $ 3.58 per share). Through this rights offering the Company issued 9,874,170 ordinary shares and raised a gross amount of $ 35,350. Issuance expenses amounted to $ 265. b. Stock option plans: Description of plans The Company had three stock option plans, the 2003 Stock Option and Incentive Plans , In October 2008, the compensation stock option committee of the Company's Board of Directors approved the adoption of the 2008 Stock Incentive Plan (the "2008 Plan") with 1,000,000 shares or stock options available for grant and a sub-plan to enable qualified optionees certain tax benefits under the Israeli Income Tax Ordinance. Among the incentives that may be adopted are stock options, performance share awards, performance share unit awards, restricted shares, restricted share unit awards and other stock-based awards. In October 2010, April 2012, April 2015 and April 2016, the Company's Board of Directors approved, in the aggregate, a 4,030,000 shares increase in the number of shares available for grant under the 2008 Plan to a total of 5,030,000 shares available for future grants. As of December 31, 2016, an aggregate of 113,638 shares are still available for future grants under the 2008 Plan. Options granted under the 2008 Plan vest quarterly over two to four years or annually over four years. The options expire after six, seven or ten years from the date of grant. RSUs granted under the 2008 Plan and vest quarterly or annually over four years. Any options or RSUs, which are forfeited or canceled before expiration of the 2008 Plan, become available for future grants. Valuation assumptions: The Company estimates the fair value of the stock options granted using the Black-Scholes-Merton option-pricing model, which requires a number of assumptions: the expected volatility is based upon actual historical stock price movements; the expected term of options granted is based upon historical experience and represents the period of time that options granted are expected to be outstanding; the risk-free interest rate is based on the yield from U.S. Treasury zero-coupon bonds with an equivalent term. The Company has historically not paid dividends and has no foreseeable plans to pay dividends. Options granted to employees: The fair value of the Company's stock options granted to employees for the years ended December 31, 2016, 2015 and 2014 was estimated using the following weighted average assumptions: Year ended December 31, 2016 2015 2014 Risk free interest 1.08%-1.62 % 1.24%-1.61 % 1.43%-1.73 % Dividend yields 0 % 0 % 0 % Volatility 33%-35 % 33%-34 % 34%-36 % Expected term (in years) 4.8 4.8 4.8 No options were granted to non-employees during the years ended December 31, 2016, 2015 and 2014. A summary of employee option balances under the 2008 Plan as of December 31, 2016 and changes during the year ended December 31, 2016 are as follows: Number of options Weighted-average exercise price Weighted- average remaining contractual term (in years) Aggregate intrinsic value (in thousands) Outstanding at January 1, 2016 1,501,100 $ 5.0 4.3 $ 74 Granted 1,267,500 $ 4.9 Exercised (171,100 ) $ 3.3 Forfeited (197,500 ) $ 5.7 Outstanding at December 31, 2016 2,400,000 $ 5.0 4.4 $ 380 Exercisable at December 31, 2016 753,081 $ 5.1 3.3 $ 101 Vested and expected to vest at December 31, 2016 2,270,670 $ 5.0 4.4 $ 360 A summary of employee option balances under the Plans as of December 31, 2015 and 2014 and changes during the years ended on those dates are as follows: Year ended December 31, 2015 2014 Number of options Weighted average exercise price Number of options Weighted average exercise price Options outstanding at beginning of year 4,431,383 $ 5.0 5,374,000 $ 5.0 Granted 570,000 $ 5.5 600,000 $ 5.2 Exercised (1,307,448 ) $ 4.3 (272,000 ) $ 4.0 Expired (1,209,005 ) $ 5.7 (21,750 ) $ 6.5 Forfeited (983,830 ) $ 5.5 (1,248,867 ) $ 5.2 Options outstanding at end of year 1,501,100 $ 5.0 4,431,383 $ 5.0 Options exercisable at end of year 555,182 $ 4.7 3,357,465 $ 5.2 The weighted-average grant-date fair value of options granted to employees during the years ended December 31, 2016, 2015 and 2014 was $ 1.26, $ 1.46 and $ 1.51, respectively. The aggregate intrinsic value in the table above represents the total intrinsic value (the difference between the Company's closing stock price on the last trading day of the year 2016 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2016. These amounts change based on the fair market value of the Company's stock. Total intrinsic value of options exercised for the years ended December 31, 2016, 2015 and 2014 was $ 180, $ 1,911 and $ 247, respectively. The outstanding and exercisable options granted to employees under the 2008 Plan as of December 31, 2016, have been separated into ranges of exercise price as follows: Options Weighted Options Weighted outstanding average Weighted exercisable average exercise Ranges of as of remaining average as of price of exercise December 31, contractual exercise December 31, exercisable price 2016 life (years) price 2016 options $ 3.14-4.62 360,000 4.2 $ 4.1 104,250 $ 4.0 $ 4.79-6.72 2,040,000 4.5 $ 5.2 648,831 $ 5.3 2,400,000 4.4 $ 5.0 753,081 $ 5.1 Restricted Share Units ("RSUs") granted to employees and non-employees: The fair value of RSUs is estimated based on the market value of the Company's stock on the date of the award. During 2016, 2015 and 2014, the Company did not grant any RSUs. Previously granted RSUs vest over a four year period. The following table summarizes information regarding the number of RSUs issued and outstanding as of December 31, 2016, 2015 and 2014 and changes during the years ended on those dates: Year ended December 31, 2016 2015 2014 Number of RSUs Weighted average grant date fair value Number of RSUs Weighted average grant date fair value Number of RSUs Weighted average grant date fair value RSUs outstanding at the beginning of the year 244,200 $ 4.1 571,625 $ 4.1 991,276 $ 4.1 Vested (214,350 ) $ 4.0 (281,675 ) $ 4.0 (323,650 ) $ 4.1 Forfeited (21,750 ) $ 5.0 (45,750 ) $ 3.9 (96,001 ) $ 4.1 RSUs outstanding at the end of the year 8,100 $ 5.8 244,200 $ 4.1 571,625 $ 4.1 As of December 31, 2016, there were no outstanding RSUs to non-employees. Additional stock-based compensation data: As of December 31, 2016, there was $ 1,768 of unrecognized compensation costs related to non-vested stock-based compensation arrangements granted to employees under the 2008 Plan and no unrecognized compensation costs related to non-vested stock-based compensation arrangements granted to non-employees under the 2008 Plan. The cost related to employees is expected to be recognized over a weighted-average period of 1.52 years. c. Dividends: 1. In the event that cash dividends are declared by the Company, such dividends will be declared and paid in Israeli currency. Under current Israeli regulations, any cash dividend in Israeli currency paid in respect of ordinary shares purchased by non-residents of Israel with non-Israeli currency, may be freely repatriated in such non-Israeli currency, at the exchange rate prevailing at the time of repatriation. The Company does not expect to pay cash dividends in the foreseeable future. 2. Pursuant to the terms of a loan from a bank (see also Note 11e), the Company is restricted from paying cash dividends to its shareholders without initial approval from the bank. |
TAXES ON INCOME
TAXES ON INCOME | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
TAXES ON INCOME | NOTE 10:- TAXES ON INCOME a. Accounting for uncertainty in income taxes: A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: December 31, 2016 2015 Balance at beginning of year $ 871 $ 1,214 Reductions for prior years' tax position (95 ) (343 ) Balance at the end of year $ 776 $ 871 The unrecognized tax benefits include accrued penalties and interest of $ 304 and $ 250 as of December 31, 2016 and 2015, respectively. During the years ended December 31, 2016, and 2015, the Group recorded income of $ 54 and $ 13 on the reversal of penalties and interest, respectively. The unrecognized tax benefits as of December 31, 2016 and 2015 would, if recognized, reduce the annual effective tax rate. The Group expects a reversal of approximately $ 58 of unrecognized tax benefits in the next 12 months. The Company and its subsidiaries file income tax returns in Israel and in other jurisdictions of its subsidiaries. As of December 31, 2016, the tax returns of the Company and its main subsidiaries are open to examination by the tax authorities for the tax years 2010 through 2015. b. Israeli taxation: 1. Corporate tax rates: Generally, income of Israeli companies is subject to corporate tax. The corporate tax rate in Israel, effective as of January 1, 2017, is 24%, compared with 25% in 2016 and 26.5% in 2015 and 2014. The corporate tax rate in Israel is scheduled to be further reduced to 23% from January 1, 2018. 2. Tax benefits under the Law for the Encouragement of Capital Investments, 1959 ( " Certain production facilities of the Company have been granted 'Benefitted Enterprise' status under the provision of the Law. The Company was eligible under the terms of minimum qualifying investment and elected 2005 and 2011 as the Years of Election. Income derived from Benefitted Enterprises is tax exempt for a period of two years out of the period of benefits. Based on the percentage of foreign shareholding in the Company, income derived during the remaining years of benefits is taxable at the rate of 10%-25%. The periods of benefits of the Benefitted Enterprises will expire in 2017 and in 2023. As of December 31, 2016, the Company did not generate income from the Benefitted Enterprises. The Company does not expect to pay any cash dividends. In the event of distribution of dividends from the above mentioned tax exempt income, the amount distributed would be taxed at a corporate tax rate of 10% to 25%, depending on the level of foreign investment in the Company. Income from sources other than a "Benefitted Enterprise" during the benefit period is subject to tax at the regular corporate tax rate (26.5% in 2014 - 2015, 25% in, 2016, 24% for 2017 and 23% effective as of January 1, 2018). On January 1, 2011, new legislation that constitutes a major amendment to the Law was enacted (the "Amendment Legislation"). Under the Amendment Legislation, a uniform rate of corporate tax would apply to all qualified income of certain industrial companies, as opposed to the current law's incentives that are limited to income from "Benefitted Enterprises" during their benefits period. According to the Amendment Legislation, the uniform tax rate during 2013 was 7% in geographical areas in Israel designated as Development Zone A and 12.5% elsewhere in Israel. The uniform tax rate for 2014 and onwards is set to 9% in geographical areas in Israel designated as Development Zone A and 16% elsewhere in Israel. The profits of these Industrial Companies would be freely distributable as dividends, subject to a 20% withholding tax as of 2015 (or lower, under an applicable tax treaty). The Company is not located in Development Zone A. According to an Amendment from December 2016, a preferred enterprise located in development area A will be subject to a tax rate of 7.5% instead of 9% effective from January 1, 2017 and thereafter (the tax rate applicable to preferred enterprises located in other areas remains at 16%). Under the transitory provisions of the Amendment Legislation, the Company may elect whether to irrevocably implement the new law in its Israeli company while waiving benefits provided under the current law or keep implementing the current law during the next years. Changing from the current law to the new law is permissible at any stage. The Company is examining the possible effect of the Amendment Legislation on its results. The Amendment also prescribes special tax tracks for technological enterprises, which are subject to rules that are to be issued by the Minister of Finance by March 31, 2017. The new tax tracks under the Amendment are as follows: Technological preferred enterprise - an enterprise for which total consolidated revenues of its parent company and all subsidiaries are less than NIS 10 billion. A technological preferred enterprise, as defined in the Law, which is located in the center of Israel will be subject to tax at a rate of 12% on profits deriving from intellectual property (in development area A - a tax rate of 7.5%). Special technological preferred enterprise - an enterprise for which total consolidated revenues of its parent company and all subsidiaries exceed NIS 10 billion. Such enterprise will be subject to tax at a rate of 6% on profits deriving from intellectual property, regardless of the enterprise's geographical location. Any dividends distributed to "foreign companies", as defined in the Law, deriving from income from the technological enterprises will be subject to tax at a rate of 4%. The definitive criteria to determine the tax benefits were not established as of December 31, 2016 and the related regulations are expected to be issued by March 31, 2017. Accordingly, the above changes in the tax rates relating to technological enterprises were not taken into account in the computation of deferred taxes as of December 31, 2016. c. Income taxes on non-Israeli subsidiaries: Non-Israeli subsidiaries are taxed according to the tax laws in their respective domiciles of residence. The Company has not made any provisions relating to undistributed earnings of the Company's foreign subsidiaries since the Company has no current plans to distribute such earnings. If earnings are distributed to Israel in the form of dividends or otherwise, the Company may be subject to additional Israeli income taxes (subject to an adjustment for foreign tax credits) and foreign withholding taxes. It is not practicable to determine the amount of the unrecognized deferred tax liability for temporary differences related to investments in foreign subsidiaries. d. Carryforward tax losses and credits: As of December 31, 2016, the Company had operating loss carry forwards for Israeli income tax purposes of approximately $ 87,000, which may be offset indefinitely against future taxable income. The Company's U.S. subsidiaries had carryforward tax losses of approximately $ 30,000 as of December 31, 2016. Utilization of U.S. net operating losses may be subject to substantial annual limitation due to the "change in ownership" provisions of Internal Revenue Code of 1986 and similar state provisions. The annual limitations may result in the expiration of net operating loss before utilization. In the U.S., carryforward tax losses can be utilized within 20 years. The Group has carryforward tax losses relating to other subsidiaries in Europe and Latin America of approximately $ 10,000 (which can be utilized within 9 years) and $ 30,000 ($ 12,000 can be utilized within 4 years and $ 18,000 can be utilized indefinitely), as of December 31, 2016 respectively. e. Deferred income taxes: Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Group’s deferred tax liabilities and assets are as follows: December 31, 2016 2015 1. Provided in respect of the following: Carryforward tax losses $ 39,734 $ 30,352 Temporary differences relating to property, equipment and intangibles 3,936 3,980 Other 9,458 7,448 Gross deferred tax assets 53,128 41,780 Valuation allowance (48,225 ) (36,393 ) Net deferred tax assets 4,903 5,387 Gross deferred tax liabilities Temporary differences relating to property, equipment and intangibles (4,839 ) (5,319 ) Net deferred tax assets (foreign) $ 64 $ 68 2. Deferred taxes are included in the consolidated balance sheets, as follows: Current assets $ 64 $ 68 3. As of December 31, 2016, the Group increased the valuation allowance by $ 11,832, resulting from changes in temporary differences relating to property, equipment and intangibles and from carryforward tax losses. The Company provided valuation allowance for a significant portion of the deferred tax regarding the carryforwards losses and other temporary differences that management believes is not expected to be realized in the foreseeable future. 4. The functional and reporting currency of the Company and certain of its subsidiaries is the dollar. The difference between the annual changes in the NIS/dollar exchange rate causes a further difference between taxable income and the income before taxes shown in the financial statements. In accordance with ASC 740, the Company has not provided deferred income taxes on the difference between the functional currency and the tax basis of assets and liabilities. f. Reconciling items between the statutory tax rate of the Company and the effective tax rate: Year ended December 31, 2016 2015 2014 Income (loss) before taxes on income from continuing operations $ (4,088 ) $ (50,944 ) $ 1,200 Statutory tax rate 25.0 % 26.5 % 26.5 % Theoretical tax expenses (income) on the above amount at the Israeli statutory tax rate $ (1,022 ) $ (13,500 ) $ 318 Currency differences (2,174 ) 1,709 2,545 Tax adjustment in respect of different tax rates and "Benefitted Enterprise" status (5,580 ) (131 ) 1,425 Changes in valuation allowance 11,832 6,273 (14,781 ) Forfeiture of carryforward tax losses 261 929 13,549 Wavestream goodwill impairment - 6,937 - Exempt revenues - subsidy (4,224 ) (2,573 ) (2,561 ) Nondeductible expenses and other differences 2,159 1,546 1,406 $ 1,252 $ 1,190 $ 1,901 g. Taxes on income included in the consolidated statements of operations: Year ended December 31, 2016 2015 2014 Current $ 1,233 $ 1,108 $ 1,562 Prior years 15 81 332 Deferred 4 1 7 $ 1,252 $ 1,190 $ 1,901 Domestic $ 555 $ 679 $ 800 Foreign 697 511 1,101 $ 1,252 $ 1,190 $ 1,901 h. Income (loss) before taxes on income from continuing operations: Year ended December 31, 2016 2015 2014 Domestic $ (8,056 ) $ (12,273 ) $ (9,568 ) Foreign 3,968 (38,671 ) 10,768 $ (4,088 ) $ (50,944 ) $ 1,200 i. Tax assessments: The Company's tax assessments through 2012 are considered final. The Company is currently undergoing a tax assessment audit by the Israeli Tax Authority for the 2013 and 2014 tax years. |
SUPPLEMENTARY CONSOLIDATED BALA
SUPPLEMENTARY CONSOLIDATED BALANCE SHEET INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
SUPPLEMENTARY BALANCE SHEET INFORMATION [Abstract] | |
SUPPLEMENTARY CONSOLIDATED BALANCE SHEET INFORMATION | NOTE 11:- SUPPLEMENTARY CONSOLIDATED a. Trade receivables, net: December 31, 2016 2015 Billed $ 57,320 $ 53,150 Unbilled *) 41,713 - 99,033 53,150 Less - Allowance for doubtful accounts (9,656 ) (2,166 ) $ 89,377 $ 50,984 *) The unbilled amount was recognized based on the progress of the construction phase of a large-scale project in Peru (the "Project"). As part of the construction phase, the Company's subsidiary in Peru deploys a wireless network in rural areas. The Project is accounted as a Production-Type Contract using the percentage-of-completion method. The unbilled amount, for which the Company has enforceable rights, will become due at the time the first milestone is reached. The milestone occurs upon the completion of certain objective, representing the progress of the project, which vary between the different areas and type of networks. b. Other current assets: December 31, 2016 2015 Governmental authorities $ 6,184 $ 3,785 Prepaid expenses 3,784 4,765 Deferred charges 3,817 2,316 Employees 90 96 Grants receivable 276 1,540 Advance payments to suppliers 1,824 2,875 Deferred taxes 64 68 Other 978 778 $ 17,017 $ 16,223 c. Short-term bank credit and loans: The following is classified by currency and interest rates: Weighted average interest rate December 31, December 31, 2016 2015 2016 2015 % In U.S. dollars - 1.05 - $ 7,000 d. Other current liabilities: December 31, 2016 2015 Payroll and related employee accruals $ 10,971 $ 9,037 Derivative instruments 103 148 Government authorities 585 1,167 Other 2,187 1,042 $ 13,846 $ 11,394 e. Long-term loans: Interest rate for December 31, 2016 2015 2016 2015 Linkage % Maturity Loans from banks: (a) U.S. dollars 4.77 4.77 2017-2022 $ 20,000 $ 24,000 (b) Euro EURIBOR +2.75 EURIBOR +2.75 2017-2020 1,835 (c) Euro 6.0 6.0 2017 91 200 21,549 26,035 Less - current maturities 4,617 4,542 $ 16,932 $ 21,493 (a) The Company entered into a loan agreement with an Israeli bank. The loan is secured (b) A Dutch subsidiary of the Company entered into a mortgage and loan agreement with a German bank. The amount of the mortgage is collateralized by the subsidiary's facilities in Germany. (c) Raysat BG entered into a mortgage business loan with a Bulgarian bank. The amount of the mortgage is collateralized by Raysat BG’s building in Bulgaria. f. Long-term debt maturities for loans after December 31, 2016, are as follows: Year ending December 31, 2017 $ 4,617 2018 4,421 2019 4,421 2020 4,090 2021 and thereafter 4,000 $ 21,549 Interest expenses on the long-term loans amounted to $ 1,066, $ 1,237 and $ 1,553 for the years ended December 31, 2016, 2015 and 2014, respectively. g. Other long-term liabilities: December 31, 2016 2015 Long-term tax accrual $ 776 $ 871 Deferred revenue - 15 Other 1,505 3,092 $ 2,281 $ 3,978 |
SELECTED CONSOLIDATED STATEMENT
SELECTED CONSOLIDATED STATEMENTS OF OPERATIONS DATA | 12 Months Ended |
Dec. 31, 2016 | |
SELECTED STATEMENTS OF OPERATIONS DATA [Abstract] | |
SELECTED CONSOLIDATED STATEMENTS OF OPERATIONS DATA | NOTE 12:- SELECTED CONSOLIDATED a. Allowance for doubtful accounts: Year ended December 31, 2016 2015 2014 Balance at beginning of year $ 2,166 $ 2,476 $ 3,179 Increase during the year 7,907 1,369 218 Amounts collected (379 ) (85 ) (130 ) Write-off of bad debts (38 ) (1,594 ) (791 ) Balance at the end of year $ 9,656 $ 2,166 $ 2,476 b. Financial expenses, net: Year ended December 31, 2016 2015 2014 Income: Interest on cash equivalents, bank deposits and restricted cash $ 1,027 $ 549 $ 288 Other 81 - 1,390 1,108 549 1,678 Expenses: Interest with respect to short-term bank credit , loans 32 302 240 Interest with respect to long-term loans 1,066 1,237 1,553 Exchange rate differences 452 3,887 2,501 Bank charges 4,323 2,344 1,221 Other 78 22 - 5,951 7,792 5,515 Total financial expenses, net $ 4,843 $ 7,243 $ 3,837 |
CUSTOMERS, GEOGRAPHIC AND SEGME
CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION | NOTE 13:- CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION The Company applies ASC 280, "Segment Reporting" ("ASC 280"). Segments are managed separately and can be described as follows: The Company's business is managed and reported as three separate reportable segments, comprised of the Company's named Commercial, Mobility and Services division: · Commercial division - provides advanced satellite networks, satellite communication systems, small cell solutions and associated professional services and comprehensive turnkey solutions. The Commercial division‘s customers are service providers, satellite operators, mobile network operators, telecommunication companies and large enterprises worldwide. The division is focused on high throughput satellites opportunities worldwide. · Mobility division - provides airborne, maritime and ground-mobile satellite systems and solutions. The division’s customers are, service providers, system integrators, defense and homeland security organizations, as well as other commercial entities worldwide. The division provides solutions on land, sea and air, while placing major focus on the high-growth market of commercial In-Flight Connectivity (“IFC”). In addition, the division includes the operations of Wavestream, whose sales are primarily to IFC integrators as well as defense integrators. · Services division – provides managed network and services for rural broadband access through the Company’s a. Information on the reportable segments: 1. The measurement of the reportable operating segments is based on the same accounting principles applied in these financial statements which includes certain corporate overhead allocations. 2. Financial data relating to reportable operating segments: Year ended December 31, 2016 Commercial Mobility Services Total Revenues $ 94,001 $ 62,911 $ 122,639 $ 279,551 Cost of revenues 57,403 40,962 105,696 204,061 Gross profit 36,598 21,949 16,943 75,490 Research and development, net 12,599 12,254 - 24,853 Selling and marketing 17,153 5,483 775 23,411 General and administrative 10,657 9,138 6,676 26,471 Operating income (loss) (3,811 ) (4,926 ) 9,492 755 Financial expenses, net (4,843 ) Loss before taxes (4,088 ) Taxes on income 1,252 Loss (5,340 ) Depreciation and amortization expenses $ 4,467 $ 7,530 $ 1,111 $ 13,108 Year ended December 31, 2015 Commercial Mobility Services Total Revenues $ 100,935 $ 41,112 $ 55,496 $ 197,543 Cost of revenues 63,425 30,715 49,178 143,318 Impairment of long - - - 10,137 10,137 Gross profit (loss) 37,510 10,397 (3,819 ) 44,088 Research and development, net 14,175 8,237 - 22,412 Selling and marketing 16,839 6,947 1,037 24,823 General and administrative 6,622 6,271 5,751 18,644 Restructuring costs 1,078 421 9 1,508 Goodwill impairment - 20,402 - 20,402 Operating loss (1,204 ) (31,881 ) (10,616 ) (43,701 ) Financial expenses, net (7,243 ) Loss before taxes (50,944 ) Taxes on income 1,190 Loss from continuing operations (52,134 ) Loss from discontinued operations (200 ) Loss (52,334 ) Depreciation and amortization expenses $ 4,546 $ 7,322 $ 3,204 $ 15,072 Year ended December 31, 2014 Commercial Mobility Services Total Revenues $ 130,306 $ 54,817 $ 50,010 $ 235,133 Cost of Revenues 77,587 37,023 36,888 151,498 Gross profit 52,719 17,794 13,122 83,635 Research and development, net 17,084 8,074 - 25,158 Selling and marketing 23,401 7,809 1,327 32,537 General and administrative 7,808 5,961 7,134 20,903 Operating income (loss) 4,426 (4,050 ) 4,661 5,037 Financial expenses, net (3,837 ) Income before taxes 1,200 Taxes on income 1,901 Loss from continuing operations (701 ) Loss from discontinued operations (795 ) Loss (1,496 ) Depreciation and amortization expenses $ 4,885 $ 8,220 $ 2,846 $ 15,951 b. Revenues by geographic areas: Following is a summary of revenues by geographic areas. Revenues attributed to geographic areas, based on the location of the end customers and in accordance with ASC 280, are as follows: Year ended December 31, 2016 2015 2014 Latin America $ 143,491 $ 100,443 $ 110,825 APAC 47,094 47,843 51,983 North America 54,728 28,242 41,951 EMEA 34,238 21,015 30,374 $ 279,551 $ 197,543 $ 235,133 c. Revenues from a major Services division customer located in Peru accounted for 34% and 11% of the total consolidated revenues for the years ended December 31, 2016 and 2015, respectively. During 2014, the Group did not have any customer generating revenues exceeding 10% of the Group's total revenues. d. The Group's long-lived assets are located as follows: Property and Equipment, net: December 31, 2016 2015 Israel $ 62,648 $ 64,628 Latin America 5,740 4,524 United States 1,705 1,721 Europe 9,641 9,987 Other 1,103 1,103 $ 80,837 $ 81,963 |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
RELATED PARTY BALANCES AND TRANSACTIONS | NOTE 14:- RELATED PARTY BALANCES AND TRANSACTIONS a. The Company entered into a number of agreements for the purchase of infrastructure, construction and services from C. Mer Industries Ltd ("C. Mer"), a publicly traded company in Israel (TASE). The Company's controlling shareholder, Fimi Opportunity b. T the party Year ended December 31, 2016 2015 2014 Cost of revenues of products $ 10,978 $ 2,915 $ 4,876 c. B the party December 31, 2016 2015 Accrued expenses $ 3,080 $ 339 Trade payables $ 5,022 $ 1,170 |
SIGNIFICANT ACCOUNTING POLICI22
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Use of estimates | a. Use of estimates: The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Functional currency | b. Functional currency: The majority of the revenues of the Company and certain of its subsidiaries are generated in U.S. dollars ("dollar") or linked to the dollar. In addition, a substantial portion of the Company's and certain of its subsidiaries' costs are incurred in dollars. The Company's management believes that the dollar is the primary currency of the economic environment in which the Company and certain of its subsidiaries operate. Thus, the functional and reporting currency of the Company and certain of its subsidiaries is the dollar. Accordingly, monetary accounts maintained in currencies other than the dollar are remeasured into dollars in accordance with ASC 830, "Foreign Currency Matters" ("ASC 830"). All transaction gains and losses of the remeasurement of monetary balance sheet items are reflected in the consolidated statements of operations as financial income or expenses, as appropriate. The financial statements of certain foreign subsidiaries, whose functional currency has been determined to be their local currency, have been translated into dollars. Assets and liabilities have been translated using the exchange rates in effect at the balance sheet date. Statements of operations amounts have been translated using specific rates. The resulting translation adjustments are reported as a component of equity in accumulated other comprehensive income (loss). |
Principles of consolidation | c. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its subsidiaries in which the Company has a controlling voting interest and entities consolidated under the variable interest entities ("VIE") provisions of ASC 810, "Consolidation" ("ASC 810"). Inter-company balances and transactions have been eliminated upon consolidation. Most of the activity of Gilat Colombia S.A. E.S.P. ("Gilat Colombia") consists of operating subsidized projects for the Colombian Ministry of Information Technologies and Communications ("Ministry of ITC") through its "Dirección de Conectividad", or DirCon, (formerly known as Compartel Program). The first projects were originally awarded to Gilat's Colombian subsidiaries in 1999 and 2002 and were extended several times. An additional project was awarded to Gilat Colombia As required in the bid documents for the Ministry of ITC projects, the Group established trusts (the "Trusts") and entered into governing trust agreements for each project (collectively, the " The Trusts are considered VIEs and Gilat Colombia is identified as the primary beneficiary of the Trusts. Under ASC 810, the Company performs ongoing reassessments of whether it is the primary beneficiary of the VIE. The assessment of Company's management is that the Company has the power to direct the activities of a VIE that most significantly impact the VIE's activities (it is responsible for establishing and operating the networks), and the obligation to absorb losses of the VIE that could potentially be significant to the VIE and the right to receive benefits from the VIE that could potentially be significant to the VIE's economic performance. As such, the Trusts were consolidated in the financial statements of the Company since their inception. The cash held by the Trusts is consolidated within the financial statements of the Company and classified as "Restricted cash held by trustees". The advances from customers received by the Trusts are consolidated within the financial statements of the Company and classified as "Advances from customers held by trustees". |
Cash equivalents | d. Cash equivalents: Cash equivalents are short-term highly liquid investments that are not restricted as to withdrawals or use with maturities of three months or less at the date acquired. |
Short-term and long-term restricted cash | e. Short-term and long-term restricted cash: Short-term restricted cash is either invested in certificates of deposit, which mature within one year, or in short-term highly liquid investments that are restricted to withdrawals or use. As of December 31, 2016, the vast majority of this amount was linked to the dollar. Such certificates of deposit are used as collateral for performance and advance payment guarantees to customers, surety bonds and loans and the lease of the Group's offices, and bear weighted average interest rates of 0.36% and 0.19% as of December 31, 2016 and 2015, respectively. Long-term restricted cash is primarily invested in certificates of deposit, which mature in more than one year. As of December 31, 2016, the amount is linked to currencies other than the and the |
Restricted cash held by trustees | f. Restricted cash held by trustees: As of December 31, 2016 and 2015, short-term restricted cash held by trustees is invested in a savings bank account linked to the Colombian Peso. The restricted cash is being released based upon performance milestones as stipulated in the agreements with the Ministry ITC |
Inventories | g. Inventories: Inventories are stated at the lower of cost or market value. Inventory write-offs are provided to cover risks arising from slow-moving items, excess inventories, discontinued products, new products introduction and for market prices lower than cost. Any write-off is recognized in the consolidated statement of operations as cost of revenues Cost is determined as follows: Raw materials, parts and supplies - using the weighted average cost method. Work-in-progress - represents the cost of manufacturing with the addition of allocable indirect manufacturing costs, using the weighted average cost method. Finished products - calculated on the basis of raw materials, direct manufacturing costs with the addition of allocable indirect manufacturing costs, using the weighted average cost method. |
Property and equipment, net | h. Property and equipment, net: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets as follows: Years Buildings 50 Computers, software and electronic equipment 3 - 16 Office furniture and equipment 3 - 17 Vehicles 5 - 7 Leasehold improvements are amortized by the straight-line method over the term of the lease or the estimated useful life of the improvements, whichever is shorter. Equipment leased to others under operating leases is carried at cost less accumulated depreciation and depreciated using the straight-line method over the useful life of the assets. The Group has accounted for its assets which are under a capital lease arrangement in accordance with ASC 840 "Leases " ("ASC 840"). |
Intangible assets | i. Intangible assets: Intangible assets subject to amortization are initially recognized based on the fair value allocated to them, and subsequently stated at amortized cost. The assets are amortized over their estimated useful lives using the straight - Years Technology 7.9 Customer relationships 6.8 Marketing rights and patents 12.1 |
Impairment of long-lived assets | j. Impairment of long-lived assets The Group's long-lived assets and identifiable intangible assets that are subject to amortization are reviewed for impairment in accordance with ASC 360, "Property, Plant and Equipment" ("ASC 360"), whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. Such measurement includes significant estimates. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. However, the carrying amount of a group of assets is not to be reduced below its fair value. During 2015, the Company encountered higher than expected expenses related to its subsidized project for the Ministry of ITC " " consolidated - consolidated In 2014 and 2016, no impairments of long-lived assets were recorded. |
Goodwill | k. Goodwill: Goodwill represents the excess of the purchase price in a business combination over the fair value of the net tangible and intangible assets acquired. Under ASC 350, goodwill is not amortized, but rather is subject to an annual impairment test. Goodwill is tested for impairment at the reporting unit level by comparing the fair value of the reporting unit with its carrying value. The Company performs its annual impairment analysis of goodwill in the fourth quarter of the year, or more often if there are indicators of impairment present. ASC 350 allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. If the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the two-step impairment test is performed. Alternatively, ASC 350 permits an entity to bypass the qualitative assessment for any reporting unit and proceed directly to performing the first step of the goodwill impairment test. The provisions of ASC 350 require that the quantitative two-step impairment test will be performed on goodwill at the level of the reporting units. In the first step, or " ", " ", The Company determines the fair value of each reporting unit by using the income approach, which utilizes a discounted cash flow model, as it believes that this approach best approximates the reporting unit's fair value. Judgments and assumptions related to revenue, operating income, future short-term and long-term growth rates, weighted average cost of capital, interest, capital expenditures, cash flows, and market conditions are inherent in developing the discounted cash flow model. The Company considers historical rates and current market conditions when determining the discount and growth rates to use in its analyses. If these estimates or their related assumptions change in the future, the Company may be required to record impairment charges for its goodwill. Following the existence of impairment indicators during 2015, the Company performed in that year a goodwill impairment test for the two reporting units in the Mobility Division, using the income approach to value the reporting units' fair value. The impairment test resulted in a goodwill impairment of $ 20,402 attributable to the Wavestream reporting unit. This impairment was recorded as a "Goodwill impairment" within operating expenses in the consolidated In 2014 and 2016, no impairments of goodwill were recorded. |
Contingencies | l. Contingencies The Company is currently 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. |
Revenue recognition | m. Revenue recognition: The Group generates revenues mainly from the sale of products, which includes construction of networks, services for satellite-based communications networks, connectivity services, internet access and telephony to enterprises, government and residential customers. These services are rendered under large-scale contracts over the Group's networks which are built using the Group's equipment and also over networks which the Group installs based on BOT contracts. contracts Revenues from product sales are recognized in accordance with ASC 605-10, "Revenue recognition" and with ASC 605-25 "Multiple-Element Arrangements" ("ASC 605"), when delivery has occurred, persuasive evidence of an agreement exists, the vendor's fee is fixed or determinable, no further obligation exists and collectability is probable. When significant acceptance provisions are included in the arrangement revenues are deferred until the acceptance occurs. Generally, the Group does not grant rights of return. Service revenues are recognized ratably over the period of the contract or as services are performed, as applicable. When a sales arrangement contains multiple elements, such as equipment and services, the Company allocates revenues to each element based on a selling price hierarchy. The selling price for a deliverable is based on its vendor specific objective evidence (''VSOE'') if available, third party evidence (''TPE'') if VSOE is not available, or estimated selling price (''ESP'') if neither VSOE nor TPE is available. In multiple element arrangements, revenues are allocated to each separate unit of accounting for each of the deliverables using the relative selling prices of each of the deliverables in the arrangement based on the aforementioned selling price hierarchy. Where VSOE or TPE does not exist, the Group establishes ESP based on management judgment, considering internal factors such as margin objectives, pricing practices and historical sales. Revenue from products under sales-type lease contracts is recognized in accordance with ASC 840 upon installation or upon delivery, in cases where the customer obtains its own or other's installation services. The net investments in sales-type leases are discounted at the interest rates implicit in the leases. The present values of payments due under sales-type lease contracts are recorded as revenue at the time of shipment or installation, as appropriate. Future interest income is deferred and recognized over the related lease term as financial income. Revenue from products and services under operating leases of equipment is recognized ratably over the lease period, in accordance with ASC 840. Revenues from contracts under which the Group provides construction or production of products ("Production-Type Contracts") which are significantly customized to the buyer's specifications are recognized in accordance with ASC 605-35, "Construction-Type and Production-Type Contracts". In Production-Type Contracts under which units of a basic product in a continuous or sequential production process are produced, revenues are recognized based on the units-of-delivery method, recognizing revenue for each unit on the date that unit is delivered. In other Production-Type Contracts, which require significant construction and customization to the customer's specifications, revenues are recognized using the percentage-of-completion method of accounting based on the input measure by using the ratio of costs related to construction performance incurred to the total estimated amount of such costs. The amount of revenue recognized is based on the total fees under the arrangement and the percentage of completion achieved. Provisions for estimated losses on uncompleted contracts, if any, are made in the period in which such losses are first determined, in the amount of the estimated loss on the entire contact. Deferred revenue and advances from customers represent amounts received by the Group when the criteria for revenue recognition as described above are not met and are included in "Advances from customers and deferred revenues" and "Other long-term liabilities". When deferred revenue is recognized as revenue, the associated deferred charges are also recognized as cost of revenues |
Shipping and advertising expenses | n. Shipping and advertising expenses: Selling and marketing expenses include shipping expenses in the amounts of $ 1,367, $ 976 and $ 2,685 for the years ended December 31, 2016, 2015 and 2014, respectively. Advertising costs are expensed as incurred. Advertising expenses amounted to $ 243, $ 181 and $ 273 for the years ended December 31, 2016, 2015 and 2014, respectively. |
Warranty costs | o. Warranty costs: Generally, the Group provides product warranties for periods between twelve to twenty four months at no extra charge. A provision is recorded for estimated warranty costs based on the Group's experience. Warranty expenses amounted to $ 704, $ 864 and $ 361 for the years ended December 31, 2016, 2015 and 2014, respectively. |
Research and development expenses, net | p. Research and development expenses: Research and development costs are charged to the consolidated Based on the Company's product development process, technological feasibility is established upon completion of a working model. Costs incurred by the Company between completion of the working models and the point at which the products are ready for general release has been insignificant. Therefore, all research and development costs have been expensed. |
Research and development grants | q. Research and development grants: The Group receives royalty-bearing and non-royalty-bearing grants from the Government of Israel and from other funding sources, for approved research and development projects. These grants are recognized at the time the Group is entitled to such grants on the basis of the costs incurred or milestones achieved as provided by the relevant agreement and included as a deduction from research and development expenses. Research and development grants deducted from research and development expenses amounted to $ 1,624, $ 2,540 and $ 2,477 for |
Accounting for stock-based compensation | r. Accounting for stock-based compensation: The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation-Stock Compensation" ("ASC 718"). ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service period in the Company's consolidated statement of operations. The Company recognizes compensation expenses for the value of its awards, based on the straight - The Company selected the Black-Scholes-Merton option - |
Income taxes | s. Income taxes: The Group accounts for income taxes in accordance with ASC 740, "Income Taxes" ("ASC 740"). ASC 740 prescribes the use of the liability method whereby deferred tax assets and liability account balances are determined based on differences between the financial reporting and the tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Group provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value if it is more likely than not that a portion or all of the deferred tax assets will not be realized. The Group implements a two-step approach for recognizing and measuring uncertain tax positions. Recognition (step one) occurs when an enterprise concludes that a tax position, based solely on its technical merits, is more Measurement (step two) is only addressed if step one has been satisfied (i.e., the position is more Under step two, the tax benefit is measured as the largest amount of benefit, determined on a cumulative probability basis that is more-likely-than-not to be realized upon ultimate settlement. The Group classifies interest and penalties on income taxes as financial expenses and general and administrative expenses, respectively. |
Concentrations of credit risks | t. Concentrations of credit risks: Financial instruments that potentially subject the Group to concentrations of credit risk consist principally of cash and cash equivalents, short-term and long-term restricted cash, short-term restricted cash held by trustees and trade receivables. The majority of the Group's cash and cash equivalents are invested in dollars with major banks in Israel, the United States and South America. Generally, these cash and The majority of the Group's short-term and long-term restricted cash are invested in dollars with major banks in South America. The Group is entitled to receive the restricted cash generally based upon actual performance of its projects. The Company also has restricted cash held by trustees, which is invested in Colombian Pesos with major banks in Colombia. As of December 31, 2016, restricted cash held by the trustees amounted to $ 9,058. The Company is entitled to receive the restricted cash held by the trustee in stages based upon operational milestones. The cash held in the trusts is reflected in the Company's consolidated Trade receivables of the Group are mainly derived from sales to major customers located in the South and Central America and Asia. The Group performs ongoing credit evaluations of its customers and obtains letters of credit and bank guarantees for certain receivables. An allowance for doubtful accounts is determined with respect to specific debts that the Group has determined to be doubtful of collection. |
Employee related benefits | u. Employee related benefits: Severance pay: The Company's liability for severance pay for its Israeli employees is calculated pursuant to the Israeli Severance Pay Law based on the most recent salary of the employees multiplied by the number of years of employment, as of the balance sheet date. Employees whose employment is terminated by the Company or who are otherwise entitled to severance pay in accordance with Israeli law or labor agreements are entitled to one month's salary for each year of employment or a portion thereof. The Company's liability for all of its Israeli employees is partly provided for by monthly deposits for insurance policies and the remainder by an accrual. The value of these policies is recorded as an asset in the Company's consolidated balance sheet. During April and May 2008 (the "transition date"), the Company amended the contracts of most of its Israeli employees so that starting on the transition date, such employees are subject to Section 14 of the Severance Pay Law, 1963 ("Section 14") for severance pay accumulated in periods of employment subsequent to the transition date. In accordance with Section 14, upon termination, the release of the contributed amounts from the fund to the employee shall relieve the Company from any further severance liability and no additional payments shall be made by the Company to the employee. As a result, the related obligation and amounts deposited on behalf of such obligation are not stated on the consolidated The carrying value for the deposited funds for the Company's employees' severance pay for employment periods prior to the transition date Severance pay expenses for the years ended December 31, 2016, 2015 and 2014, amounted to $ 2,577, $ 2,407 and $ 2,652, respectively. 401(k) The Group has a number of savings plans in the United States that qualify under Section 401(k) of the Internal Revenue Code. U.S. employees may contribute up to 100% of their pretax salary, but not more than statutory limits. Generally, the Group contributes one dollar for each dollar a participant contributes in this plan, in an amount of up to 3% of salary and in addition, in some plans, it contributes fifty cents for each dollar a participant contributes in this plan, for an additional 3%. Matching contributions for all the plans were $ 357, $ 327 and $ 311 for the years ended 2016, 2015 and 2014, respectively. Matching contributions are invested in proportion to each participant's voluntary contributions in the investment options provided under the plan. |
Fair value of financial instruments | v. Fair value of financial instruments: The Group applies ASC 820, "Fair Value Measurements and Disclosures" ("ASC 820"). Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., "the exit price") in an orderly transaction between market participants at the measurement date. In determining fair value, the Group uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Group. Unobservable inputs are inputs that reflect the Group's assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the inputs as follows: Level 1 - Valuations based on quoted prices in active markets for identical assets that the Company has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. 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 availability of observable inputs can vary from investment to investment and is affected by a wide variety of factors, including, for example, the type of investment, the liquidity of markets and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment and the investments are categorized as Level 3. The carrying amounts of cash and cash equivalents, restricted cash, trade receivables, other current assets, trade payables, accrued expenses and other current liabilities approximate their fair value due to the short-term maturities of such instruments. The Group measured the fair value of the forward contracts in accordance with ASC 820 and classified them as level 2. 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. |
Restructuring Costs | w. Restructuring costs: The Company accounts for restructuring activities in accordance to ASC 420, "Exit or Disposal Cost Obligations", which requires that a liability for a cost associated with an exit or disposal activity be recognized and measured. During 2015, the Company initiated a restructuring plan to improve its operating efficiency at its various operating sites and to reduce its operating expenses. As a result of the restructuring plan, the Company recorded $ 367 for one-time employee termination benefits and $ 1,141 for costs to terminate a manufacturing contract for the year ended December 31, 2015. All of the expenses accrued under the 2015 restructuring plan were paid during 2015 and 2016. |
Loss per share: | x. Loss per share: In accordance with ASC 260, "Earning per Share ", All employee stock options and RSUs were anti-dilutive for the years ended December 31, 2016, 2015 and 2014, respectively. The loss per share for the years ended December 31, 2015 and 2014 was adjusted, following the rights offering that the Company consummated in March 2016. |
Derivatives and hedging activities | y. Derivatives and hedging activities: ASC 815, "Derivatives and Hedging" ("ASC 815"), as amended, requires the Company to recognize all derivatives on the balance sheet at fair value. Derivatives that are not hedges must be adjusted to fair value through income (loss). If the derivative is a hedge, depending on the nature of the hedge, changes in the fair value of derivatives are either offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings or recognized in other comprehensive income (loss) until the hedged item is recognized in earnings. The ineffective portion of a derivative's change in fair value is immediately recognized in earnings. The Company measured the fair value of the forward contracts in accordance with ASC 820 (classified as level 2). A subsidiary of the Company entered into forward contracts in order to hedge the exposure to variability in expected future cash flows resulting from changes in related foreign currency exchange rates. The Company entered into forward contracts to hedge against the risk of changes in future cash flow from payments of payroll and related expenses denominated in New Israeli Shekels ("NIS"). |
Comprehensive income (loss) | z. Comprehensive income (loss): The Company accounts for comprehensive income (loss) in accordance with ASC 220, "Comprehensive Income". Comprehensive income (loss) generally represents all changes in equity during the period except those resulting from investments by, or distributions to, shareholders. The Company determined that its items of other comprehensive income (loss) relate to unrealized gains and losses on hedging derivative instruments and foreign currency translation adjustments. The following table shows the components of accumulated other comprehensive income (loss), Year ended December 31, 2016 Foreign currency translation adjustments Unrealized gains (losses) on cash flow hedges Total Beginning balance $ (3,636 ) $ (91 ) $ (3,727 ) Other comprehensive income before reclassifications 514 396 910 Amounts reclassified from accumulated other comprehensive income - (407 ) (407 ) Net current-period other comprehensive income (loss) 514 (11 ) 503 Ending balance $ (3,122 ) $ (102 ) $ (3,224 ) Year ended December 31, 2015 Foreign currency translation adjustments Unrealized gains (losses) on cash flow hedges Total Beginning balance $ (614 ) $ (806 ) $ (1,420 ) Other comprehensive loss before reclassifications (3,022 ) (124 ) (3,146 ) Amounts reclassified from accumulated other comprehensive loss - 839 839 Net current-period other comprehensive income (loss) (3,022 ) 715 (2,307 ) Ending balance $ (3,636 ) $ (91 ) $ (3,727 ) |
Impact of recently issued accounting pronouncements | aa. Impact of recently issued accounting pronouncements: In May 2014, the FASB issued Accounting Standard Update No. 2014-09, Revenue from Contracts with Customers (Topic 606). The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU is effective for the Company in 2018 using either of two methods: (i) retrospective application of ASU 2014-09 to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) retrospective application of ASU 2014-09 with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU 2014-09 (" "). The Company has established an implementation team and has started analyzing the impact of the guidance. The Company is in the process of reviewing its current accounting policies and practices to identify potential differences that would result from applying the requirements of the guidance to its revenue contracts and related expenses. The Company intends to complete the process during 2017 and adopt the new standard on January 1, 2018 using the Modified Retrospective Adoption Transition Method. Based on the preliminary evaluations to date, the Company identified several issues that may be treated differently under the new revenue standard, such as: a) Incremental costs of obtaining a contract - Capitalization and amortization of incremental costs of obtaining a contract, such as sales commissions, will be recognized as assets if they are recoverable. The asset will be amortized on a systematic basis consistent with the pattern of the transfer of the goods or services to which the asset relates. Currently, the Company expenses commissions cost as incurred; b) Limitation of revenue recognition to the amount that is not contingent - Currently, the amount allocable to the delivered items is limited to the amount that is not contingent upon the delivery of additional items or meeting a specified performance condition. However, this limitation does not exist under the new standard, which might cause an earlier recognition than current guidance. The foregoing observations are subject to change as the Company completes its evaluation and implementation process. The FASB has issued, and may issue in the future, interpretive guidance which may cause the Company's evaluation to change. The Company believes it is following an appropriate timeline to allow for proper recognition, presentation and disclosure upon adoption effective the beginning of fiscal year 2018. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting revenue gross versus net) ("ASU 2016-08"), which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, Identifying Performance Obligations and Licensing (Topic 606) ("ASU 2016-10"), which amends its new revenue recognition In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) ("ASU 2016-02"). The new guidance requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. ASU 2016-02 also will require disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships” (“ASU 2016-05”), which clarifies that a change in the counter party to a derivative instrument designated as a hedging instrument does not require designation of that hedging relationship, provided that all other hedge accounting criteria are met. ASU 2016-05 is effective for annual periods beginning after December 15, 2016. Early adoption is permitted as of the beginning of an interim period on a modified retrospective basis. The Company does not expect that this new guidance will have a material impact on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU 2016-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. The impact of adoption on the Company’s consolidated financial statements is not material. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"). This new standard clarifies certain aspects of the statement of cash flows, including the classification of debt prepayment or debt extinguishment costs or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, distributions received from equity method investees and beneficial interests in securitization transactions. This new standard also clarifies that an entity should determine each separately identifiable source of use within the cash receipts and payments on the basis of the nature of the underlying cash flows. In situations in which cash receipts and payments have aspects of more than one class of cash flows and cannot be separated by source or use, the appropriate classification should depend on the activity that is likely to be the predominant source or use of cash flows for the item. ASU 2016-15 In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash ("ASU 2016-18"), which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 will be effective for the Company in the first quarter of 2018 and early adoption is permitted. The Company expects the adoption will affect its operating and investing activities in its consolidated statements of cash flow as both activities include material changes in the restricted cash balances. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment ("ASU 2017-04"). ASU 2017-04 eliminates Step 2 of the goodwill impairment test, which requires the calculation of the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Instead, an entity will compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company is currently evaluating the expected impact of the standard on its consolidated financial statements. |
SIGNIFICANT ACCOUNTING POLICI23
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment Useful Lives | Depreciation is calculated by the straight-line method over the estimated useful lives of the assets as follows: Years Buildings 50 Computers, software and electronic equipment 3 - 16 Office furniture and equipment 3 - 17 Vehicles 5 - 7 |
Schedule of Intangible Assets Estimated Useful Life | The assets are amortized over their estimated useful lives using the straight line method over an estimated period during which benefits are expected to be received, in accordance with ASC 350, "Intangible - Goodwill and Other" ("ASC 350") as the following weighted average Years Technology 7.9 Customer relationships 6.8 Marketing rights and patents 12.1 |
Schedule of Accumulated Other Comprehensive Income, Net | The following table shows the components of accumulated other comprehensive income (loss), Year ended December 31, 2016 Foreign currency translation adjustments Unrealized gains (losses) on cash flow hedges Total Beginning balance $ (3,636 ) $ (91 ) $ (3,727 ) Other comprehensive income before reclassifications 514 396 910 Amounts reclassified from accumulated other comprehensive income - (407 ) (407 ) Net current-period other comprehensive income (loss) 514 (11 ) 503 Ending balance $ (3,122 ) $ (102 ) $ (3,224 ) Year ended December 31, 2015 Foreign currency translation adjustments Unrealized gains (losses) on cash flow hedges Total Beginning balance $ (614 ) $ (806 ) $ (1,420 ) Other comprehensive loss before reclassifications (3,022 ) (124 ) (3,146 ) Amounts reclassified from accumulated other comprehensive loss - 839 839 Net current-period other comprehensive income (loss) (3,022 ) 715 (2,307 ) Ending balance $ (3,636 ) $ (91 ) $ (3,727 ) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories are comprised of the following: December 31, 2016 2015 Raw materials, parts and supplies $ 6,461 $ 7,084 Work in progress 6,541 7,471 Finished products 8,467 10,803 $ 21,469 $ 25,358 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Composition of property and equipment, grouped by major classifications, is as follows: December 31, 2016 2015 Cost: Buildings and land $ 90,564 $ 93,499 Computers, software and electronic equipment 44,993 70,590 Equipment leased to others 76,917 73,798 Office furniture and equipment 5,930 7,782 Vehicles 444 436 Leasehold improvements 2,548 2,330 221,396 248,435 Accumulated depreciation and impairment *) 140,559 166,472 Depreciated cost $ 80,837 $ 81,963 *) During the year ended December 31, 2015, the Company recorded an impairment loss of $ 4,106. The impairment loss was recorded as reduction of the cost of equipment leased to others and computers, software and electronic equipment in the amount of $ 4,030 and $ 76, respectively. **) The Company recorded a reduction of $ 33,299 to the cost and accumulated depreciation of fully depreciated equipment and leasehold improvements that are no longer in use for the year ended December 31, 2016. |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Composition of intangible assets, grouped by major classifications, is as follows: December 31, 2016 2015 Original amounts: Technology $ 42,504 $ 42,504 Customer relationships 4,466 4,466 Marketing rights and patents 3,421 3,421 50,391 50,391 Accumulated amortization: Technology 33,243 28,271 Customer relationships 3,999 3,419 Marketing rights and patents 1,766 1,547 39,008 33,237 $ 11,383 $ 17,154 |
Schedule of Estimated Amortization Expenses | Estimated amortization expenses for the following years is as follows: Year ending December 31, 2017 $ 5,674 2018 3,275 2019 911 2020 441 2021 and thereafter 1,082 $ 11,383 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
GOODWILL [Abstract] | |
Schedule of Goodwill | December 31, 2016 2015 Goodwill *) $ 105,647 $ 105,647 Accumulated impairment losses **) (62,179 ) (62,179 ) $ 43,468 $ 43,468 *) The carrying amount of the goodwill is associated with the Mobility Division. **) During the year ended December 31, 2015, the Company recorded an impairment loss of $ 20,402 (see also note 2k). |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Operating Leases Segment [Line Items] | |
Schedule of Future Minimum Payments Under Operating Leases | Minimum lease commitments of certain subsidiaries under non-cancelable operating lease agreements with respect to premises occupied by them, at rates in effect subsequent to December 31, 2016, are as follows: Lease Year ending December 31, commitments 2017 $ 1,661 2018 1,176 2019 312 $ 3,149 |
Space Segment Services [Member] | |
Operating Leases Segment [Line Items] | |
Schedule of Future Minimum Payments Under Operating Leases | Future minimum payments due for space segment services to be rendered subsequent to December 31, 2016, are as follows: Year ending December 31, 2017 $ 7,960 2018 1,878 2019 123 $ 9,961 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair value of derivative instruments | The following table details the fair value of derivative instruments in the consolidated Fair value of derivative instruments December 31, Balance sheet line item 2016 2015 Derivative: Foreign exchange forward contracts (1) Other current liabilities $ - $ (57 ) Foreign exchange forward contracts (2) Other current liabilities $ (102 ) $ (91 ) (1) To protect against changes in value of forecasted foreign currency cash flows a subsidiary entered into forward contracts in order to hedge the exposure to variability in expected future cash flows resulting from changes in related foreign currency exchange rates. These contracts did not meet the requirement for hedge accounting. The amount recorded as financial income (expense) related to these contracts in 2016, 2015 and 2014 was $ (670), $ 2,116 and $ 1,949, respectively. As of December 31, 2016 there are no outstanding forward contracts that did not meet the requirement for hedge accounting. (2) To protect against changes in value of forecasted foreign currency cash flows resulting from salaries and related payments that are denominated in NIS, the Company has entered into foreign currency forward contracts. These contracts are designated as cash flows hedges, as defined by ASC 815, as amended, and are considered highly effective as hedges of these expenses. The forward contracts are expected to occur at various dates within the following twelve months. |
Schedule of net income (loss) related to the effective portion of hedging instruments | The effective portion of the hedged instruments has been included as an offset (addition) of payroll expenses and other operating expenses in the consolidated Year ended December 31, 2016 2015 2014 Cost of revenues of products $ (53 ) $ (100 ) $ (107 ) Cost of revenues of services (24 ) (55 ) (76 ) Research and development, net (154 ) (291 ) (337 ) Selling and marketing (72 ) (180 ) (166 ) General and administrative (90 ) (187 ) (201 ) $ (393 ) $ (813 ) $ (887 ) |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Assumptions Used to Estimate Fair Value | The fair value of the Company's stock options granted to employees for the years ended December 31, 2016, 2015 and 2014 was estimated using the following weighted average assumptions: Year ended December 31, 2016 2015 2014 Risk free interest 1.08%-1.62 % 1.24%-1.61 % 1.43%-1.73 % Dividend yields 0 % 0 % 0 % Volatility 33%-35 % 33%-34 % 34%-36 % Expected term (in years) 4.8 4.8 4.8 |
Employee [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Stock Option Activity | A summary of employee option balances under the 2008 Plan as of December 31, 2016 and changes during the year ended December 31, 2016 are as follows: Number of options Weighted-average exercise price Weighted- average remaining contractual term (in years) Aggregate intrinsic value (in thousands) Outstanding at January 1, 2016 1,501,100 $ 5.0 4.3 $ 74 Granted 1,267,500 $ 4.9 Exercised (171,100 ) $ 3.3 Forfeited (197,500 ) $ 5.7 Outstanding at December 31, 2016 2,400,000 $ 5.0 4.4 $ 380 Exercisable at December 31, 2016 753,081 $ 5.1 3.3 $ 101 Vested and expected to vest at December 31, 2016 2,270,670 $ 5.0 4.4 $ 360 A summary of employee option balances under the Plans as of December 31, 2015 and 2014 and changes during the years ended on those dates are as follows: Year ended December 31, 2015 2014 Number of options Weighted average exercise price Number of options Weighted average exercise price Options outstanding at beginning of year 4,431,383 $ 5.0 5,374,000 $ 5.0 Granted 570,000 $ 5.5 600,000 $ 5.2 Exercised (1,307,448 ) $ 4.3 (272,000 ) $ 4.0 Expired (1,209,005 ) $ 5.7 (21,750 ) $ 6.5 Forfeited (983,830 ) $ 5.5 (1,248,867 ) $ 5.2 Options outstanding at end of year 1,501,100 $ 5.0 4,431,383 $ 5.0 Options exercisable at end of year 555,182 $ 4.7 3,357,465 $ 5.2 |
Schedule of Stock Option Activity by Exercise Price | The outstanding and exercisable options granted to employees under the 2008 Plan as of December 31, 2016, have been separated into ranges of exercise price as follows: Options Weighted Options Weighted outstanding average Weighted exercisable average exercise Ranges of as of remaining average as of price of exercise December 31, contractual exercise December 31, exercisable price 2016 life (years) price 2016 options $ 3.14-4.62 360,000 4.2 $ 4.1 104,250 $ 4.0 $ 4.79-6.72 2,040,000 4.5 $ 5.2 648,831 $ 5.3 2,400,000 4.4 $ 5.0 753,081 $ 5.1 |
Summary of Restricted Stock Activity | The following table summarizes information regarding the number of RSUs issued and outstanding as of December 31, 2016, 2015 and 2014 and changes during the years ended on those dates: Year ended December 31, 2016 2015 2014 Number of RSUs Weighted average grant date fair value Number of RSUs Weighted average grant date fair value Number of RSUs Weighted average grant date fair value RSUs outstanding at the beginning of the year 244,200 $ 4.1 571,625 $ 4.1 991,276 $ 4.1 Vested (214,350 ) $ 4.0 (281,675 ) $ 4.0 (323,650 ) $ 4.1 Forfeited (21,750 ) $ 5.0 (45,750 ) $ 3.9 (96,001 ) $ 4.1 RSUs outstanding at the end of the year 8,100 $ 5.8 244,200 $ 4.1 571,625 $ 4.1 |
TAXES ON INCOME (Tables)
TAXES ON INCOME (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Beginning and Ending Balances of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: December 31, 2016 2015 Balance at beginning of year $ 871 $ 1,214 Reductions for prior years' tax position (95 ) (343 ) Balance at the end of year $ 776 $ 871 |
Schedule of Deferred Income Taxes | Significant components of the Group’s deferred tax liabilities and assets are as follows: December 31, 2016 2015 1. Provided in respect of the following: Carryforward tax losses $ 39,734 $ 30,352 Temporary differences relating to property, equipment and intangibles 3,936 3,980 Other 9,458 7,448 Gross deferred tax assets 53,128 41,780 Valuation allowance (48,225 ) (36,393 ) Net deferred tax assets 4,903 5,387 Gross deferred tax liabilities Temporary differences relating to property, equipment and intangibles (4,839 ) (5,319 ) Net deferred tax assets (foreign) $ 64 $ 68 |
Schedule of Deferred Taxes Included in Consolidated Balance Sheets | 2. Deferred taxes are included in the consolidated balance sheets, as follows: Current assets $ 64 $ 68 |
Reconciliation of Statutory Tax Rate to Effective Tax Rate | Reconciling items between the statutory tax rate of the Company and the effective tax rate: Year ended December 31, 2016 2015 2014 Income (loss) before taxes on income from continuing operations $ (4,088 ) $ (50,944 ) $ 1,200 Statutory tax rate 25.0 % 26.5 % 26.5 % Theoretical tax expenses (income) on the above amount at the Israeli statutory tax rate $ (1,022 ) $ (13,500 ) $ 318 Currency differences (2,174 ) 1,709 2,545 Tax adjustment in respect of different tax rates and "Benefitted Enterprise" status (5,580 ) (131 ) 1,425 Changes in valuation allowance 11,832 6,273 (14,781 ) Forfeiture of carryforward tax losses 261 929 13,549 Wavestream goodwill impairment - 6,937 - Exempt revenues - subsidy (4,224 ) (2,573 ) (2,561 ) Nondeductible expenses and other differences 2,159 1,546 1,406 $ 1,252 $ 1,190 $ 1,901 |
Schedule of Taxes on Income | Taxes on income included in the consolidated statements of operations: Year ended December 31, 2016 2015 2014 Current $ 1,233 $ 1,108 $ 1,562 Prior years 15 81 332 Deferred 4 1 7 $ 1,252 $ 1,190 $ 1,901 Domestic $ 555 $ 679 $ 800 Foreign 697 511 1,101 $ 1,252 $ 1,190 $ 1,901 |
Schedule of Income (Loss) Before Taxes on Income | Income (loss) before taxes on income from continuing operations: Year ended December 31, 2016 2015 2014 Domestic $ (8,056 ) $ (12,273 ) $ (9,568 ) Foreign 3,968 (38,671 ) 10,768 $ (4,088 ) $ (50,944 ) $ 1,200 |
SUPPLEMENTARY CONSOLIDATED BA32
SUPPLEMENTARY CONSOLIDATED BALANCE SHEET INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
SUPPLEMENTARY BALANCE SHEET INFORMATION [Abstract] | |
Schedule of Trade Receivables | Trade receivables, net: December 31, 2016 2015 Billed $ 57,320 $ 53,150 Unbilled *) 41,713 - 99,033 53,150 Less - Allowance for doubtful accounts (9,656 ) (2,166 ) $ 89,377 $ 50,984 *) The unbilled amount was recognized based on the progress of the construction phase of a large-scale project in Peru (the "Project"). As part of the construction phase, the Company's subsidiary in Peru deploys a wireless network in rural areas. The Project is accounted as a Production-Type Contract using the percentage-of-completion method. The unbilled amount, for which the Company has enforceable rights, will become due at the time the first milestone is reached. The milestone occurs upon the completion of certain objective, representing the progress of the project, which vary between the different areas and type of networks. |
Schedule of Other Current Assets | Other current assets: December 31, 2016 2015 Governmental authorities $ 6,184 $ 3,785 Prepaid expenses 3,784 4,765 Deferred charges 3,817 2,316 Employees 90 96 Grants receivable 276 1,540 Advance payments to suppliers 1,824 2,875 Deferred taxes 64 68 Other 978 778 $ 17,017 $ 16,223 |
Schedule of Short-Term Bank Credit and Loans | Short-term bank credit and loans: The following is classified by currency and interest rates: Weighted average interest rate December 31, December 31, 2016 2015 2016 2015 % In U.S. dollars - 1.05 - $ 7,000 |
Schedule of Other Current Liabilities | Other current liabilities: December 31, 2016 2015 Payroll and related employee accruals $ 10,971 $ 9,037 Derivative instruments 103 148 Government authorities 585 1,167 Other 2,187 1,042 $ 13,846 $ 11,394 |
Schedule of Long-Term Loans | Long-term loans: Interest rate for December 31, 2016 2015 2016 2015 Linkage % Maturity Loans from banks: (a) U.S. dollars 4.77 4.77 2017-2022 $ 20,000 $ 24,000 (b) Euro EURIBOR +2.75 EURIBOR +2.75 2017-2020 1,835 (c) Euro 6.0 6.0 2017 91 200 21,549 26,035 Less - current maturities 4,617 4,542 $ 16,932 $ 21,493 (a) The Company entered into a loan agreement with an Israeli bank. The loan is secured (b) A Dutch subsidiary of the Company entered into a mortgage and loan agreement with a German bank. The amount of the mortgage is collateralized by the subsidiary's facilities in Germany. (c) Raysat BG entered into a mortgage business loan with a Bulgarian bank. The amount of the mortgage is collateralized by Raysat BG’s building in Bulgaria. |
Schedule of Long-Term Debt Maturities | Long-term debt maturities for loans after December 31, 2016, are as follows: Year ending December 31, 2017 $ 4,617 2018 4,421 2019 4,421 2020 4,090 2021 and thereafter 4,000 $ 21,549 |
Schedule of Other Long-Term Liabilities | Other long-term liabilities: December 31, 2016 2015 Long-term tax accrual $ 776 $ 871 Deferred revenue - 15 Other 1,505 3,092 $ 2,281 $ 3,978 |
SELECTED CONSOLIDATED STATEME33
SELECTED CONSOLIDATED STATEMENTS OF OPERATIONS DATA (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
SELECTED STATEMENTS OF OPERATIONS DATA [Abstract] | |
Reconciliation of Allowance for Doubtful Accounts | Allowance for doubtful accounts: Year ended December 31, 2016 2015 2014 Balance at beginning of year $ 2,166 $ 2,476 $ 3,179 Increase during the year 7,907 1,369 218 Amounts collected (379 ) (85 ) (130 ) Write-off of bad debts (38 ) (1,594 ) (791 ) Balance at the end of year $ 9,656 $ 2,166 $ 2,476 |
Schedule of Financial Expenses, Net | Financial expenses, net: Year ended December 31, 2016 2015 2014 Income: Interest on cash equivalents, bank deposits and restricted cash $ 1,027 $ 549 $ 288 Other 81 - 1,390 1,108 549 1,678 Expenses: Interest with respect to short-term bank credit , loans 32 302 240 Interest with respect to long-term loans 1,066 1,237 1,553 Exchange rate differences 452 3,887 2,501 Bank charges 4,323 2,344 1,221 Other 78 22 - 5,951 7,792 5,515 Total financial expenses, net $ 4,843 $ 7,243 $ 3,837 |
CUSTOMERS, GEOGRAPHIC AND SEG34
CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Financial Data for Reportable Operating Segments | Financial data relating to reportable operating segments: Year ended December 31, 2016 Commercial Mobility Services Total Revenues $ 94,001 $ 62,911 $ 122,639 $ 279,551 Cost of revenues 57,403 40,962 105,696 204,061 Gross profit 36,598 21,949 16,943 75,490 Research and development, net 12,599 12,254 - 24,853 Selling and marketing 17,153 5,483 775 23,411 General and administrative 10,657 9,138 6,676 26,471 Operating income (loss) (3,811 ) (4,926 ) 9,492 755 Financial expenses, net (4,843 ) Loss before taxes (4,088 ) Taxes on income 1,252 Loss (5,340 ) Depreciation and amortization expenses $ 4,467 $ 7,530 $ 1,111 $ 13,108 Year ended December 31, 2015 Commercial Mobility Services Total Revenues $ 100,935 $ 41,112 $ 55,496 $ 197,543 Cost of revenues 63,425 30,715 49,178 143,318 Impairment of long lived assets - - 10,137 10,137 Gross profit (loss) 37,510 10,397 (3,819 ) 44,088 Research and development, net 14,175 8,237 - 22,412 Selling and marketing 16,839 6,947 1,037 24,823 General and administrative 6,622 6,271 5,751 18,644 Restructuring costs 1,078 421 9 1,508 Goodwill impairment - 20,402 - 20,402 Operating loss (1,204 ) (31,881 ) (10,616 ) (43,701 ) Financial expenses, net (7,243 ) Loss before taxes (50,944 ) Taxes on income 1,190 Loss from continuing operations (52,134 ) Loss from discontinued operations (200 ) Loss (52,334 ) Depreciation and amortization expenses $ 4,546 $ 7,322 $ 3,204 $ 15,072 Year ended December 31, 2014 Commercial Mobility Services Total Revenues $ 130,306 $ 54,817 $ 50,010 $ 235,133 Cost of Revenues 77,587 37,023 36,888 151,498 Gross profit 52,719 17,794 13,122 83,635 Research and development, net 17,084 8,074 - 25,158 Selling and marketing 23,401 7,809 1,327 32,537 General and administrative 7,808 5,961 7,134 20,903 Operating income (loss) 4,426 (4,050 ) 4,661 5,037 Financial expenses, net (3,837 ) Income before taxes 1,200 Taxes on income 1,901 Loss from continuing operations (701 ) Loss from discontinued operations (795 ) Loss (1,496 ) Depreciation and amortization expenses $ 4,885 $ 8,220 $ 2,846 $ 15,951 |
Schedule of Revenues by Geographic Area | Following is a summary of revenues by geographic areas. Revenues attributed to geographic areas, based on the location of the end customers and in accordance with ASC 280, are as follows: Year ended December 31, 2016 2015 2014 Latin America $ 143,491 $ 100,443 $ 110,825 APAC 47,094 47,843 51,983 North America 54,728 28,242 41,951 EMEA 34,238 21,015 30,374 $ 279,551 $ 197,543 $ 235,133 |
Schedule of Long-Lived Assets by Geographic Area | The Group's long-lived assets are located as follows: Property and Equipment, net: December 31, 2016 2015 Israel $ 62,648 $ 64,628 Latin America 5,740 4,524 United States 1,705 1,721 Europe 9,641 9,987 Other 1,103 1,103 $ 80,837 $ 81,963 |
RELATED PARTY BALANCES AND TR35
RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of transactions with related parties | T Year ended December 31, 2016 2015 2014 Cost of revenues of products $ 9,129 $ 2,915 $ 4,876 |
Schedule of balances with related parties | B December 31, 2016 2015 Accrued expenses $ 3,080 $ 339 Trade payable $ 4,785 $ 1,170 |
GENERAL (Narrative) (Details)
GENERAL (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Proceeds from sale of subsidiary | $ 16,000 | ||
Spacenet Inc. [Member] | |||
Loss from disposal of subsidiary | $ 200 | $ 795 | $ 1,385 |
SIGNIFICANT ACCOUNTING POLICI37
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Accounting Policies [Line Items] | |||
Goodwill impairment losses | $ 20,402 | ||
Period of projected net cash flows | 5 years | ||
Discount rate | 13.00% | ||
Long-term growth rate | 4.00% | ||
Shipping expenses | 1,367 | $ 976 | 2,685 |
Advertising expenses | 243 | 181 | 273 |
Research and development expenses | 1,624 | 2,540 | $ 2,477 |
Restricted cash held by trustees | $ 9,058 | $ 8,524 | |
The total weighted average number of shares related to the outstanding options excluded from the calculations of diluted loss per share | 2,227,150 | 3,925,236 | 5,546,082 |
Impairment of long lived assets | $ 10,137 | ||
Warranty expenses | $ 704 | 864 | $ 361 |
Impairment loss of property and equipment, net | 4,106 | ||
Long-term deferred charges | 6,031 | ||
Restructuring costs for one-time employee termination benefits | 367 | ||
Costs to terminate a manufacturing contract | $ 1,141 | ||
Short-term Debt [Member] | |||
Disclosure Of Accounting Policies [Line Items] | |||
Restricted cash weighted average interest rate | 0.36% | 0.19% | |
Long-term Debt [Member] | |||
Disclosure Of Accounting Policies [Line Items] | |||
Restricted cash weighted average interest rate | 5.89% | 5.84% |
SIGNIFICANT ACCOUNTING POLICI38
SIGNIFICANT ACCOUNTING POLICIES (Employee Related Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||
Severance expenses | $ 2,577 | $ 2,407 | $ 2,652 |
Employer contributions to benefit plan per dollar contributed by employee | 100.00% | ||
Employer match percentage | 3.00% | ||
Additional employer contributions to benefit plan per dollar contributed by employee | 50.00% | ||
Contributions to employee benefits plan | $ 357 | $ 327 | $ 311 |
Additional employer matching percentage | 3.00% |
SIGNIFICANT ACCOUNTING POLICI39
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Property and Equipment Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 50 years |
Computers, software and electronic equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 3 years |
Computers, software and electronic equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 16 years |
Office furniture and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 3 years |
Office furniture and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 17 years |
Vehicles [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 5 years |
Vehicles [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 7 years |
SIGNIFICANT ACCOUNTING POLICI40
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Intangible Assets Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period | 7 years 10 months 24 days |
Customer relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period | 6 years 9 months 18 days |
Marketing rights and patents [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period | 12 years 1 month 6 days |
SIGNIFICANT ACCOUNTING POLICI41
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Accumulated Other Comprehensive Income, Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ (3,727) | $ (1,420) |
Other comprehensive income (loss) before reclassifications | 910 | (3,146) |
Amounts reclassified from accumulated other comprehensive income (loss) | (407) | 839 |
Net current-period other comprehensive income (loss) | 503 | (2,307) |
Ending balance | (3,224) | (3,727) |
Foreign currency translation adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (3,636) | (614) |
Other comprehensive income (loss) before reclassifications | 514 | (3,022) |
Amounts reclassified from accumulated other comprehensive income (loss) | ||
Net current-period other comprehensive income (loss) | 514 | (3,022) |
Ending balance | (3,122) | (3,636) |
Unrealized gains (losses) on cash flow hedges [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (91) | (806) |
Other comprehensive income (loss) before reclassifications | 396 | (124) |
Amounts reclassified from accumulated other comprehensive income (loss) | (407) | 839 |
Net current-period other comprehensive income (loss) | (11) | 715 |
Ending balance | $ (102) | $ (91) |
INVENTORIES (Schedule of Invent
INVENTORIES (Schedule of Inventory) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials, parts and supplies | $ 6,461 | $ 7,084 |
Work in process | 6,541 | 7,471 |
Finished products | 8,467 | 10,803 |
Inventory, Net | $ 21,469 | $ 25,358 |
INVENTORIES (Narrative) (Detail
INVENTORIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Inventory Disclosure [Abstract] | |||
Inventory write-offs | $ 4,833 | $ 2,054 | $ 1,002 |
PROPERTY AND EQUIPMENT, NET (Sc
PROPERTY AND EQUIPMENT, NET (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 221,396 | $ 248,435 | |
Accumulated depreciation and impairment | [1] | 140,559 | 166,472 |
Depreciation cost | 80,837 | 81,963 | |
Buildings And Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 90,564 | 93,499 | |
Computers, software and electronic equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 44,993 | 70,590 | |
Equipment Leased To Others [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 76,917 | 73,798 | |
Office furniture and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 5,930 | 7,782 | |
Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 444 | 436 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 2,548 | $ 2,330 | |
[1] | During the year ended December 31, 2015, the Company recorded an impairment loss of $4,106. The impairment loss was recorded as reduction of the cost of equipment leased to others and computers, software and electronic equipment in the amount of $4,030 and $76, respectively (see also note 1c). |
PROPERTY AND EQUIPMENT, NET (Na
PROPERTY AND EQUIPMENT, NET (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Impairment loss of property and equipment, net | $ 4,106 | ||
Depreciation expenses | $ 7,337 | 9,256 | $ 10,091 |
Depreciable cost | 80,837 | 81,963 | |
Reduction to fully depreciated equipment and leasehold improvements that are no longer in use | 33,299 | ||
Assets under capital leases [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable cost | 1,121 | 1,121 | |
Accumulated depreciation | $ 559 | 334 | |
Equipment Leased To Others [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Impairment loss of property and equipment, net | 4,030 | ||
Computers, software and electronic equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Impairment loss of property and equipment, net | $ 76 |
INTANGIBLE ASSETS, NET (Schedul
INTANGIBLE ASSETS, NET (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Original amounts | $ 50,391 | $ 50,391 |
Accumulated amortization | 39,008 | 33,237 |
Amortized cost | 11,383 | 17,154 |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original amounts | 42,504 | 42,504 |
Accumulated amortization | 33,243 | 28,271 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original amounts | 4,466 | 4,466 |
Accumulated amortization | 3,999 | 3,419 |
Marketing rights and patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original amounts | 3,421 | 3,421 |
Accumulated amortization | $ 1,766 | $ 1,547 |
INTANGIBLE ASSETS, NET (Narrati
INTANGIBLE ASSETS, NET (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expenses | $ 5,771 | $ 5,816 | $ 5,860 |
INTANGIBLE ASSETS, NET (Sched48
INTANGIBLE ASSETS, NET (Schedule of Estimated Amortization Expenses) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,017 | $ 5,674 | |
2,018 | 3,275 | |
2,019 | 911 | |
2,020 | 441 | |
2021 and thereafter | 1,082 | |
Amortized cost | $ 11,383 | $ 17,154 |
GOODWILL (Details)
GOODWILL (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
GOODWILL [Abstract] | ||||
Goodwill | [1] | $ 105,647 | $ 105,647 | |
Accumulated impairment losses | [2] | (62,179) | (62,179) | |
Goodwill net | 43,468 | 43,468 | ||
Goodwill impairment | $ 20,402 | |||
[1] | The carrying amount of the goodwill is associated with the Mobility Division. | |||
[2] | During the year ended December 31, 2015, the Company recorded an impairment loss of $ 20,402. (see also note 2k). |
COMMITMENTS AND CONTINGENCIES50
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Guarantor Obligations [Line Items] | |||
Rent expenses | $ 2,568 | $ 2,548 | $ 2,966 |
Outstanding inventory purchase commitments | 13,494 | 14,213 | |
Inventory purchase commitments, sole or limited suppliers | 5,530 | 3,789 | |
Amount of claim, including interest, penalties and legal fees | 10,100 | ||
Principal Amount of Claim | 1,200 | ||
Aggregate amount of guarantees | 139,676 | ||
Restricted cash collateral | 24,143 | ||
Peru [Member] | |||
Guarantor Obligations [Line Items] | |||
Aggregate amount of guarantees | $ 135,844 | ||
OCS [Member] | |||
Guarantor Obligations [Line Items] | |||
Percentage of amount funded for research and development projects | 100.00% | ||
Accrued royalties | $ 1,237 | 749 | |
OCS [Member] | Minimum [Member] | |||
Guarantor Obligations [Line Items] | |||
Royalty fee (as a percent) | 3.00% | ||
OCS [Member] | Maximum [Member] | |||
Guarantor Obligations [Line Items] | |||
Royalty fee (as a percent) | 5.00% | ||
BIRD [Member] | |||
Guarantor Obligations [Line Items] | |||
Royalty fee (as a percent) | 5.00% | ||
Percentage of amount funded for research and development projects | 150.00% | ||
Accrued royalties | $ 121 | 121 | |
Spacenet Inc. [Member] | |||
Guarantor Obligations [Line Items] | |||
Service expenses | $ 10,278 | $ 8,333 | $ 7,913 |
COMMITMENTS AND CONTINGENCIES51
COMMITMENTS AND CONTINGENCIES (Schedule of Future Minimum Payments Under Operating Leases) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 1,661 |
2,018 | 1,176 |
2,019 | 312 |
Lease Commitments | $ 3,149 |
COMMITMENTS AND CONTINGENCIES52
COMMITMENTS AND CONTINGENCIES (Schedule of Future Minimum Payments Under Operating Leases for Space Segment Services) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 7,960 |
2,018 | 1,878 |
2,019 | 123 |
Gross space segments services | $ 9,961 |
DERIVATIVE INSTRUMENTS (Schedul
DERIVATIVE INSTRUMENTS (Schedule of Fair Value of Derivative Instruments) (Details) - Foreign Exchange [Member] - Forward Contracts [Member] - Other current liabilities [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Fair value of liabilities not designated as hedging instruments | $ (57) | |
Fair value of liabilities designated as hedging instruments | $ (102) | $ (91) |
DERIVATIVE INSTRUMENTS (Sched54
DERIVATIVE INSTRUMENTS (Schedule of Net Income (Loss) Related to Effective Portion of Hedging Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in income related to the effective portion of its hedging instruments | $ (393) | $ (813) | $ (887) |
Financial income (expense) related to derivative instruments | (670) | 2,116 | 1,949 |
Cost of revenues of products [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in income related to the effective portion of its hedging instruments | (53) | (100) | (107) |
Cost of revenues of services [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in income related to the effective portion of its hedging instruments | (24) | (55) | (76) |
Research and development, net [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in income related to the effective portion of its hedging instruments | (154) | (291) | (337) |
Selling and marketing [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in income related to the effective portion of its hedging instruments | (72) | (180) | (166) |
General and administrative [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in income related to the effective portion of its hedging instruments | $ (90) | $ (187) | $ (201) |
EQUITY (Share Capital) (Details
EQUITY (Share Capital) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Class of Stock [Line Items] | ||||
Proceeds from rights offering | $ 35,085 | |||
Ordinary shares [Member] | ||||
Class of Stock [Line Items] | ||||
Purchase price for two ordinary shares | $ 7.16 | |||
Shares issued price per share | $ 3.58 | |||
Shares issued | 9,874,170 | 9,874,170 | ||
Proceeds from rights offering | $ 35,350 | |||
Stock issuance expenses | $ 265 |
EQUITY (Description of Plans) (
EQUITY (Description of Plans) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Apr. 30, 2015 | Oct. 31, 2008 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period for plan | 4 years | ||
Option One [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 6 years | ||
Option Two [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 7 years | ||
Option Three [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 10 years | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period for plan | 2 years | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period for plan | 4 years | ||
2008 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total number of shares authorized | 4,030,000 | ||
Shares available for grant | 113,638 | 5,030,000 | 1,000,000 |
EQUITY (Schedule of Assumptions
EQUITY (Schedule of Assumptions Used to Estimate Fair Value) (Details) - Employee [Member] | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yields | 0.00% | 0.00% | 0.00% |
Expected term (in years) | 4 years 9 months 18 days | 4 years 9 months 18 days | 4 years 9 months 18 days |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest | 1.08% | 1.24% | 1.43% |
Volatility | 33.00% | 33.00% | 34.00% |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest | 1.62% | 1.61% | 1.73% |
Volatility | 35.00% | 34.00% | 36.00% |
EQUITY (Options Granted to Empl
EQUITY (Options Granted to Employees) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of options exercised during the period | $ 180 | $ 1,911 | $ 247 |
Employee [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value of stock options granted | $ 1.26 | $ 1.46 | $ 1.51 |
EQUITY (Schedule of Stock Optio
EQUITY (Schedule of Stock Option Activity) (Details) - Employee [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Number of options | |||
Outstanding at beginning of year | 1,501,100 | 4,431,383 | 5,374,000 |
Granted | 1,267,500 | 570,000 | 600,000 |
Exercised | (171,100) | (1,307,448) | (272,000) |
Expired | (1,209,005) | (21,750) | |
Forfeited | (197,500) | (983,830) | (1,248,867) |
Outstanding at end of year | 2,400,000 | 1,501,100 | 4,431,383 |
Exerciable at end of year | 753,081 | 555,182 | 3,357,465 |
Vested and expected to vest at December 31, 2016 | 2,270,670 | ||
Weighted-average exercise price | |||
Outstanding at beginning of year | $ 5 | $ 5 | $ 5 |
Granted | 4.9 | 5.5 | 5.2 |
Exercised | 3.3 | 4.3 | 4 |
Expired | 5.7 | 6.5 | |
Forfeited | 5.7 | 5.5 | 5.2 |
Outstanding at end of year | 5 | 5 | 5 |
Exercisable at end of year | 5.1 | $ 4.7 | $ 5.2 |
Vested and expected to vest at December 31, 2016 | $ 5 | ||
Weighted-average remaining contractual term | |||
Outstanding | 4 years 4 months 24 days | 4 years 3 months 18 days | |
Exercisable at December 31, 2016 | 3 years 3 months 18 days | ||
Vested and expected to vest at December 31, 2016 | 4 years 4 months 24 days | ||
Aggregate intrinsic value | |||
Outstanding at January 1, 2016 | $ 74 | ||
Outstanding at December 31, 2016 | 380 | $ 74 | |
Exercisable at December 31, 2016 | 101 | ||
Vested and expected to vest at December 31, 2016 | $ 360 |
EQUITY (Schedule of Stock Opt60
EQUITY (Schedule of Stock Option Activity by Exercise Price) (Details) - Employee [Member] | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding as of December 31, 2016 | shares | 2,400,000 |
Options outstanding, Weighted average remaining contractual life (years) | 4 years 4 months 24 days |
Options outstanding, Weighted average exercise price | $ 5 |
Options exercisable as of December 31, 2016 | shares | 753,081 |
Options exercisable, Weighted average exercise price of exercisable options | $ 5.1 |
$3.14-4.62 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price, lower limit | 3.14 |
Exercise Price, upper limit | $ 4.62 |
Options outstanding as of December 31, 2016 | shares | 360,000 |
Options outstanding, Weighted average remaining contractual life (years) | 4 years 2 months 12 days |
Options outstanding, Weighted average exercise price | $ 4.1 |
Options exercisable as of December 31, 2016 | shares | 104,250 |
Options exercisable, Weighted average exercise price of exercisable options | $ 4 |
$4.79-6.72 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price, lower limit | 4.79 |
Exercise Price, upper limit | $ 6.72 |
Options outstanding as of December 31, 2016 | shares | 2,040,000 |
Options outstanding, Weighted average remaining contractual life (years) | 4 years 6 months |
Options outstanding, Weighted average exercise price | $ 5.2 |
Options exercisable as of December 31, 2016 | shares | 648,831 |
Options exercisable, Weighted average exercise price of exercisable options | $ 5.3 |
EQUITY (Restricted Share Units
EQUITY (Restricted Share Units Granted to Employees and Non-Employees) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | |||
Number of options granted | 0 | 0 | 0 |
Shares granted, vesting period | 4 years |
EQUITY (Summary of Restricted S
EQUITY (Summary of Restricted Stock Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Number of RSUs | |||
Granted | 0 | 0 | 0 |
Employee [Member] | |||
Number of RSUs | |||
RSUs outstanding at the beginning of the year | 244,200 | 571,625 | 991,276 |
Vested | (214,350) | (281,675) | (323,650) |
Forfeited | (21,750) | (45,750) | (96,001) |
RSUs outstanding at the end of the year | 8,100 | 244,200 | 571,625 |
Weighted average grant date fair value | |||
RSUs outstanding at the beginning of the year | $ 4.1 | $ 4.1 | $ 4.1 |
Vested | 4 | 4 | 4.1 |
Forfeited | 5 | 3.9 | 4.1 |
RSUs outstanding at the end of the year | $ 5.8 | $ 4.1 | $ 4.1 |
EQUITY (Additional Stock-Based
EQUITY (Additional Stock-Based Compensation Data) (Details) - Employee [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized share-based compensation expense, employees | $ 1,768 |
Compensation costs weighted average period to be recognized | 1 year 6 months 7 days |
TAXES ON INCOME (Narrative) (De
TAXES ON INCOME (Narrative) (Details) - USD ($) $ in Thousands | Jan. 05, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Tax Credit Carryforward [Line Items] | |||||
Unrecognized tax benefits, accrued penalties and interest | $ 304 | $ 250 | |||
Penalties and interest expense | 54 | $ 13 | |||
Expected reversal amount of unrecognized tax benefits in the next 12 months | $ 58 | ||||
Statutory tax rate | 25.00% | 26.50% | 26.50% | ||
Statutory tax rate for next fiscal year | 24.00% | ||||
Corporate statutory tax rate on 2018 | 23.00% | ||||
Duration of tax benefits limitation, option one minimum | 2 years | ||||
Uniform tax rate | 16.00% | 12.50% | |||
Withholding tax | 20.00% | ||||
Tax rate for preferred enterprises | 16.00% | ||||
Minimum [Member] | |||||
Tax Credit Carryforward [Line Items] | |||||
Minimum percentage of income derived from export to receive tax benefits | 10.00% | ||||
Distribution of dividends from the above mentioned tax exempt income | 10.00% | ||||
Maximum [Member] | |||||
Tax Credit Carryforward [Line Items] | |||||
Minimum percentage of income derived from export to receive tax benefits | 25.00% | ||||
Distribution of dividends from the above mentioned tax exempt income | 25.00% | ||||
Development Zone A [Member] | |||||
Tax Credit Carryforward [Line Items] | |||||
Uniform tax rate | 9.00% | 7.00% | |||
Development Zone A [Member] | Subsequent [Member] | |||||
Tax Credit Carryforward [Line Items] | |||||
Statutory tax rate for next fiscal year | 7.50% | ||||
Special technological preferred enterprise [Member] | |||||
Tax Credit Carryforward [Line Items] | |||||
Tax rate derving from intellectual property | 6.00% | ||||
Technological preferred enterprise[Member] | |||||
Tax Credit Carryforward [Line Items] | |||||
Statutory tax rate | 4.00% | ||||
Tax rate derving from intellectual property | 12.00% | ||||
Technological preferred enterprise[Member] | Development Zone A [Member] | |||||
Tax Credit Carryforward [Line Items] | |||||
Tax rate derving from intellectual property | 7.50% |
TAXES ON INCOME (Carryforward T
TAXES ON INCOME (Carryforward Tax Losses and Credits and Deferred Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | |||
Changes in valuation allowance | $ 11,832 | $ 6,273 | $ (14,781) |
Israeli [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 87,000 | ||
United States [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 30,000 | ||
Operating loss carryforwards utilization period | 20 years | ||
Europe [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 10,000 | ||
Operating loss carryforwards utilization period | 9 years | ||
Latin America [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 30,000 | ||
Latin America [Member] | Carryforward Utilization Period - 4 Years [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 12,000 | ||
Operating loss carryforwards utilization period | 4 years | ||
Latin America [Member] | Carryforward Utilization Period - Indefinitely [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 18,000 |
TAXES ON INCOME (Reconciliation
TAXES ON INCOME (Reconciliation of Beginning and Ending Balances of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Balance at beginning of year | $ 871 | $ 1,214 |
Reductions for prior years' tax position | (95) | (343) |
Balance at end of year | $ 776 | $ 871 |
TAXES ON INCOME (Schedule of De
TAXES ON INCOME (Schedule of Deferred Income Taxes) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Carryforward tax losses | $ 39,734 | $ 30,352 |
Temporary differences relating to property, equipment and intangibles | 3,936 | 3,980 |
Other | 9,458 | 7,448 |
Gross deferred tax assets | 53,128 | 41,780 |
Valuation allowance | (48,225) | (36,393) |
Net deferred tax assets | 4,903 | 5,387 |
Temporary differences relating to property, equipment and intangibles | (4,839) | (5,319) |
Net deferred tax assets (foreign) | $ 64 | $ 68 |
TAXES ON INCOME (Schedule of 68
TAXES ON INCOME (Schedule of Deferred Taxes Included in Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Current assets | $ 64 | $ 68 |
TAXES ON INCOME (Reconciliati69
TAXES ON INCOME (Reconciliation of Statutory Tax Rate to Effective Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Income (loss) before taxes on income from continuing operations, as reported in the consolidated statements of operations | $ (4,088) | $ (50,944) | $ 1,200 |
Statutory tax rate | 25.00% | 26.50% | 26.50% |
Theoretical tax expenses (income) on the above amount at the Israeli statutory tax rate | $ (1,022) | $ (13,500) | $ 318 |
Currency differences | (2,174) | 1,709 | 2,545 |
Tax adjustment in respect of different tax rates and "Benefitted Enterprise" status | (5,580) | (131) | 1,425 |
Changes in valuation allowance | 11,832 | 6,273 | (14,781) |
Forfeiture of carryforward tax losses | 261 | 929 | 13,549 |
Wavestream goodwill impairment | 6,937 | ||
Exempt revenues - subsidy | (4,224) | (2,573) | (2,561) |
Nondeductible expenses and other differences | 2,159 | 1,546 | 1,406 |
Tax benefit | $ 1,252 | $ 1,190 | $ 1,901 |
TAXES ON INCOME (Schedule of Ta
TAXES ON INCOME (Schedule of Taxes on Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Current | $ 1,233 | $ 1,108 | $ 1,562 |
Prior years | 15 | 81 | 332 |
Deferred | 4 | 1 | 7 |
Domestic | 555 | 679 | 800 |
Foreign | 697 | 511 | 1,101 |
Tax benefit | $ 1,252 | $ 1,190 | $ 1,901 |
TAXES ON INCOME (Schedule of In
TAXES ON INCOME (Schedule of Income (Loss) Before Taxes on Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (8,056) | $ (12,273) | $ (9,568) |
Foreign | 3,968 | (38,671) | 10,768 |
Income (loss) before taxes on income | $ (4,088) | $ (50,944) | $ 1,200 |
SUPPLEMENTARY CONSOLIDATED BA72
SUPPLEMENTARY CONSOLIDATED BALANCE SHEET INFORMATION (Schedule of Trade receivables, net) (Details) (USD $) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplementary Consolidated Balance Sheet Information Schedule Of Trade Receivables Net Details Usd | |||
Billed | $ 57,320 | $ 53,150 | |
Unbilled | [1] | 41,713 | |
Total billed and unbilled | 99,033 | 53,150 | |
Less - Allowance for doubtful accounts | (9,656) | (2,166) | |
Total Trade receivables, net | $ 89,377 | $ 50,984 | |
[1] | The unbilled amount was recognized based on the progress of the construction phase of a large-scale project in Peru (the "Project"). As part of the construction phase, the Company's subsidiary in Peru deploys a wireless network in rural areas. The Project is accounted as a Production-Type Contract using the percentage-of-completion method. The unbilled amount, for which the Company has enforceable rights, will become due at the time the first milestone is reached. The milestone occurs upon the completion of certain objective, representing the progress of the project, which vary between the different areas and type of networks. |
SUPPLEMENTARY CONSOLIDATED BA73
SUPPLEMENTARY CONSOLIDATED BALANCE SHEET INFORMATION (Schedule of Other Current Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
SUPPLEMENTARY BALANCE SHEET INFORMATION [Abstract] | ||
Governmental authorities | $ 6,184 | $ 3,785 |
Prepaid expenses | 3,784 | 4,765 |
Deferred charges | 3,817 | 2,316 |
Employees | 90 | 96 |
Grants receivable | 276 | 1,540 |
Advance payments to suppliers | 1,824 | 2,875 |
Deferred taxes | 64 | 68 |
Other | 978 | 778 |
Other current assets | $ 17,017 | $ 16,223 |
SUPPLEMENTARY CONSOLIDATED BA74
SUPPLEMENTARY CONSOLIDATED BALANCE SHEET INFORMATION (Schedule of Short-Term Bank Credit) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
SUPPLEMENTARY BALANCE SHEET INFORMATION [Abstract] | ||
Short-term weighted average interest rate | 1.05% | |
Short-term bank credit | $ 7,000 |
SUPPLEMENTARY CONSOLIDATED BA75
SUPPLEMENTARY CONSOLIDATED BALANCE SHEET INFORMATION (Schedule of Other Current Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
SUPPLEMENTARY BALANCE SHEET INFORMATION [Abstract] | ||
Payroll and related employee accruals | $ 10,971 | $ 9,037 |
Derivative instruments | 103 | 148 |
Government authorities | 585 | 1,167 |
Other | 2,187 | 1,042 |
Other current liabilities | $ 13,846 | $ 11,394 |
SUPPLEMENTARY CONSOLIDATED BA76
SUPPLEMENTARY CONSOLIDATED BALANCE SHEET INFORMATION (Schedule of Long-Term Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Long-term loans: | |||
Long-term loans | $ 21,549 | $ 26,035 | |
Less - current maturities | 4,617 | 4,542 | |
Long-term loans, excluding current maturities | $ 16,932 | $ 21,493 | |
Loan from bank (a) [Member] | |||
Long-term loans: | |||
Interest rate | [1] | 4.77% | 4.77% |
Maturity, minimum | [1] | Jan. 1, 2017 | |
Maturity, maximum | [1] | Dec. 31, 2022 | |
Long-term loans | [1] | $ 20,000 | $ 24,000 |
Loan from bank (b) [Member] | |||
Long-term loans: | |||
Variable interest reference rate | [2] | EURIBOR +2.75% | EURIBOR +2.75% |
Interest rate, spread on variable rate | [2] | 2.75% | 2.75% |
Maturity, minimum | [2] | Jan. 1, 2017 | |
Maturity, maximum | [2] | Dec. 31, 2020 | |
Long-term loans | [2] | $ 1,458 | $ 1,835 |
Loan from bank (c) [Member] | |||
Long-term loans: | |||
Interest rate | [3] | 6.00% | 6.00% |
Maturity, maximum | [3] | Dec. 31, 2017 | |
Long-term loans | [3] | $ 91 | $ 200 |
[1] | The Company entered into a loan agreement with an Israeli bank. The loan is secured by a floating charge on the assets of the Company, and is further secured by a fixed pledge (mortgage) on the Company's real estate in Israel. In addition, there are financial covenants associated with the loan. As of December 31, 2016 the Company is in compliance with these covenants. | ||
[2] | A Dutch subsidiary of the Company entered into a mortgage and loan agreement with a German bank. The amount of the mortgage is collateralized by the subsidiary's facilities in Germany. | ||
[3] | Raysat BG entered into a mortgage business loan with a Bulgarian bank. The amount of the mortgage is collateralized by Raysat BG building in Bulgaria. |
SUPPLEMENTARY CONSOLIDATED BA77
SUPPLEMENTARY CONSOLIDATED BALANCE SHEET INFORMATION (Schedule of Long Term Debt Maturities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
SUPPLEMENTARY BALANCE SHEET INFORMATION [Abstract] | |||
2,017 | $ 4,617 | ||
2,018 | 4,421 | ||
2,019 | 4,421 | ||
2,020 | 4,090 | ||
2021 and thereafter | 4,000 | ||
Long-term loans | 21,549 | $ 26,035 | |
Interest expenses | $ 1,066 | $ 1,237 | $ 1,553 |
SUPPLEMENTARY CONSOLIDATED BA78
SUPPLEMENTARY CONSOLIDATED BALANCE SHEET INFORMATION (Schedule of Other Long-Term Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
SUPPLEMENTARY BALANCE SHEET INFORMATION [Abstract] | ||
Long-term tax accrual | $ 776 | $ 871 |
Deferred revenue | 15 | |
Other | 1,505 | 3,092 |
Other long-term liabilities | $ 2,281 | $ 3,978 |
SELECTED CONSOLIDATED STATEME79
SELECTED CONSOLIDATED STATEMENTS OF OPERATIONS DATA (Reconciliation of Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
SELECTED STATEMENTS OF OPERATIONS DATA [Abstract] | |||
Balance at beginning of year | $ 2,166 | $ 2,476 | $ 3,179 |
Increase during the year | 7,907 | 1,369 | 218 |
Amounts collected | (379) | (85) | (130) |
Write-off of bad debts | (38) | (1,594) | (791) |
Balance at the end of year | $ 9,656 | $ 2,166 | $ 2,476 |
SELECTED CONSOLIDATED STATEME80
SELECTED CONSOLIDATED STATEMENTS OF OPERATIONS DATA (Schedule of Financial Expenses, Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income: | |||
Interest on cash equivalents, bank deposits and restricted cash | $ 1,027 | $ 549 | $ 288 |
Other | 81 | 1,390 | |
Total financial income | 1,108 | 549 | 1,678 |
Expenses: | |||
Interest with respect to short-term bank credit, loans and other | 32 | 302 | 240 |
Interest with respect to long-term loans | 1,066 | 1,237 | 1,553 |
Exchange rate differences | 452 | 3,887 | 2,501 |
Bank charges | 4,323 | 2,344 | 1,221 |
Other | 78 | 22 | |
Total financial expenses | 5,951 | 7,792 | 5,515 |
Total financial expenses, net | $ (4,843) | $ (7,243) | $ (3,837) |
CUSTOMERS, GEOGRAPHIC AND SEG81
CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Services [Member] | Revenues [Member] | Peru [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk percentage | 34.00% | 11.00% |
CUSTOMERS, GEOGRAPHIC AND SEG82
CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION (Schedule of Financial Data for Reportable Operating Segments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 279,551 | $ 197,543 | $ 235,133 |
Cost of Revenues | 143,318 | 151,498 | |
Impairment of long lived assets | 10,137 | ||
Gross profit (loss) | 75,490 | 44,088 | 83,635 |
Research and development, net | 24,853 | 22,412 | 25,158 |
Selling and marketing | 23,411 | 24,823 | 32,537 |
General and administrative | 26,471 | 18,644 | 20,903 |
Restructuring costs | 1,508 | ||
Goodwill impairment | 20,402 | ||
Operating income (loss) | 755 | (43,701) | 5,037 |
Financial expenses, net | (4,843) | (7,243) | (3,837) |
Income (loss) before taxes | (4,088) | (50,944) | 1,200 |
Taxes on income | 1,252 | 1,190 | 1,901 |
Loss from continuing operations | (5,340) | (52,134) | (701) |
Loss from discontinued operations | (200) | (795) | |
Loss | (5,340) | (52,334) | (1,496) |
Depreciation and amortization expenses | 13,108 | 15,072 | 15,951 |
Commercial [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 94,001 | 100,935 | 130,306 |
Cost of Revenues | 57,403 | 63,425 | 77,587 |
Impairment of long lived assets | |||
Gross profit (loss) | 36,598 | 37,510 | 52,719 |
Research and development, net | 12,599 | 14,175 | 17,084 |
Selling and marketing | 17,153 | 16,839 | 23,401 |
General and administrative | 10,657 | 6,622 | 7,808 |
Restructuring costs | 1,078 | ||
Goodwill impairment | |||
Operating income (loss) | (3,811) | (1,204) | 4,426 |
Depreciation and amortization expenses | 4,467 | 4,546 | 4,885 |
Mobility [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 62,911 | 41,112 | 54,817 |
Cost of Revenues | 40,962 | 30,715 | 37,023 |
Impairment of long lived assets | |||
Gross profit (loss) | 21,949 | 10,397 | 17,794 |
Research and development, net | 12,254 | 8,237 | 8,074 |
Selling and marketing | 5,483 | 6,947 | 7,809 |
General and administrative | 9,138 | 6,271 | 5,961 |
Restructuring costs | 421 | ||
Goodwill impairment | 1,103 | ||
Operating income (loss) | (4,926) | (31,881) | (4,050) |
Depreciation and amortization expenses | 7,530 | 7,322 | 8,220 |
Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 122,639 | 55,496 | 50,010 |
Cost of Revenues | 105,696 | 49,178 | 36,888 |
Impairment of long lived assets | 10,137 | ||
Gross profit (loss) | 16,943 | (3,819) | 13,122 |
Research and development, net | |||
Selling and marketing | 775 | 1,037 | 1,327 |
General and administrative | 6,676 | 5,751 | 7,134 |
Restructuring costs | 9 | ||
Goodwill impairment | |||
Operating income (loss) | 9,492 | (10,616) | 4,661 |
Depreciation and amortization expenses | $ 1,111 | $ 3,204 | $ 2,846 |
CUSTOMERS, GEOGRAPHIC AND SEG83
CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION (Schedule of Revenue by geographic areas) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 279,551 | $ 197,543 | $ 235,133 |
Latin America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 143,491 | 100,443 | 110,825 |
APAC [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 47,094 | 47,843 | 51,983 |
North America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 54,728 | 28,242 | 41,951 |
EMEA [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 34,238 | $ 21,015 | $ 30,374 |
CUSTOMERS, GEOGRAPHIC AND SEG84
CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION (Schedule of long-lived assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 80,837 | $ 81,963 |
Israel [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 62,648 | 64,628 |
Latin America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 5,740 | 4,524 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,705 | 1,721 |
Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 9,641 | 9,987 |
Other [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 1,103 | $ 1,103 |
RELATED PARTY BALANCES AND TR85
RELATED PARTY BALANCES AND TRANSACTIONS (Narrative) (Details) | Dec. 31, 2016 |
C. Mer Industries Ltd [Member] | |
Related Party Transaction [Line Items] | |
Ownership Percentage | 30.00% |
RELATED PARTY BALANCES AND TR86
RELATED PARTY BALANCES AND TRANSACTIONS (Schedule of Transactions with Related Parties) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
C. Mer Industries Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Cost of revenues of products | $ 10,978 | $ 2,915 | $ 4,876 |
RELATED PARTY BALANCES AND TR87
RELATED PARTY BALANCES AND TRANSACTIONS (Schedule of Balances with Related Parties) (Details) - C. Mer Industries Ltd [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | ||
Accrued expenses | $ 3,080 | $ 339 |
Trade payables | $ 5,022 | $ 1,170 |