Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document And Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2018 |
Entity Registrant Name | GILAT SATELLITE NETWORKS LTD |
Entity Central Index Key | 0000897322 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Entity Filer Category | Accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 55,176,107 |
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, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 67,381 | $ 52,957 |
Restricted cash | 32,305 | 29,288 |
Restricted cash held by trustees | 4,372 | 4,325 |
Inventories | 21,109 | 28,853 |
Trade receivables, net | 47,164 | 50,053 |
Contract assets | 47,760 | 58,789 |
Other current assets | 26,022 | 19,415 |
Total current assets | 246,113 | 243,680 |
LONG-TERM ASSETS: | ||
Restricted cash | 146 | 187 |
Severance pay funds | 6,780 | 8,188 |
Deferred tax asset | 4,127 | 861 |
Other receivables | 7,276 | 7,217 |
Total long-term assets | 18,329 | 16,453 |
PROPERTY AND EQUIPMENT, NET | 84,403 | 82,246 |
INTANGIBLE ASSETS, NET | 2,434 | 5,709 |
GOODWILL | 43,468 | 43,468 |
Total assets | 394,747 | 391,556 |
CURRENT LIABILITIES: | ||
Current maturities of long-term loans | 4,458 | 4,479 |
Trade payables | 24,636 | 33,715 |
Accrued expenses | 67,533 | 75,270 |
Advances from customers and deferred revenues | 29,133 | 16,721 |
Advances from customers held by trustees | 1,416 | |
Other current liabilities | 14,588 | 20,044 |
Total current liabilities | 140,348 | 151,645 |
LONG-TERM LIABILITIES: | ||
Loans, net of current maturities | 8,098 | 12,582 |
Accrued severance pay | 6,649 | 7,999 |
Other liabilities | 580 | 1,008 |
Total long-term liabilities | 15,327 | 21,589 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS' EQUITY: | ||
Share capital - Ordinary shares of NIS 0.2 par value: Authorized: 90,000,000 shares at December 31, 2018 and 2017; Issued and outstanding: 55,176,107 and 54,737,267 shares at December 31, 2018 and 2017, respectively | 2,625 | 2,601 |
Additional paid-in capital | 924,856 | 921,726 |
Accumulated other comprehensive loss | (5,380) | (3,046) |
Accumulated deficit | (683,029) | (702,959) |
Total shareholders' equity | 239,072 | 218,322 |
Total liabilities and shareholders' equity | $ 394,747 | $ 391,556 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - ₪ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
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 | 55,176,107 | 54,737,267 |
Ordinary shares, shares outstanding | 55,176,107 | 54,737,267 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | |||
Total revenues | $ 266,391 | $ 282,756 | $ 279,551 |
Cost of revenues: | |||
Total cost of revenues | 172,354 | 200,261 | 204,061 |
Gross profit | 94,037 | 82,495 | 75,490 |
Operating expenses: | |||
Research and development, net | 33,023 | 28,014 | 24,853 |
Selling and marketing | 22,706 | 23,759 | 23,411 |
General and administrative | 17,024 | 19,861 | 26,471 |
Total operating expenses | 72,753 | 71,634 | 74,735 |
Operating income | 21,284 | 10,861 | 755 |
Financial expenses, net | 4,298 | 4,307 | 4,843 |
Net income (loss) before taxes on income | 16,986 | 6,554 | (4,088) |
Taxes on income (tax benefit) | (1,423) | (247) | 1,252 |
Net income (loss) | $ 18,409 | $ 6,801 | $ (5,340) |
Total earnings (loss) per share: | |||
Basic | $ 0.34 | $ 0.12 | $ (0.10) |
Diluted | $ 0.33 | $ 0.12 | $ (0.10) |
Weighted average number of shares used in computing earnings (loss) per share: | |||
Basic | 54,927,272 | 54,680,822 | 51,970,458 |
Diluted | 55,752,642 | 54,851,967 | 51,970,458 |
Products [Member] | |||
Revenues: | |||
Total revenues | $ 173,966 | $ 214,522 | $ 214,291 |
Cost of revenues: | |||
Total cost of revenues | 121,147 | 153,167 | 162,563 |
Services [Member] | |||
Revenues: | |||
Total revenues | 92,425 | 68,234 | 65,260 |
Cost of revenues: | |||
Total cost of revenues | $ 51,207 | $ 47,094 | $ 41,498 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 18,409 | $ 6,801 | $ (5,340) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (1,845) | (95) | 514 |
Change in unrealized gain (loss) on hedging instruments, net | (1,548) | 1,419 | 396 |
Less - reclassification adjustments for net loss (gain) realized and included in income (loss) on hedging instruments, net | 1,059 | (1,146) | (407) |
Total other comprehensive income (loss) | (2,334) | 178 | 503 |
Comprehensive income (loss) | $ 16,075 | $ 6,979 | $ (4,837) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' 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, 2015 | $ 2,048 | $ 884,126 | $ (3,727) | $ (704,365) | $ 178,082 | ||
Balance, shares at Dec. 31, 2015 | 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 (RSUs) | $ 11 | 11 | |||||
Issuance of restricted share units (RSUs), 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 | |||||
Effect of adoption of ASU 2016-09 and ASC 606 | 55 | (55) | |||||
Issuance of restricted share units (RSUs) | [1] | [1] | |||||
Issuance of restricted share units (RSUs), shares | 8,100 | ||||||
Stock-based compensation of options and RSUs | 856 | 856 | |||||
Exercise of stock options | $ 8 | 653 | 661 | ||||
Exercise of stock options, shares | 136,500 | ||||||
Comprehensive income (loss) | 178 | 6,801 | 6,979 | ||||
Balance at Dec. 31, 2017 | $ 2,601 | 921,726 | (3,046) | (702,959) | $ 218,322 | ||
Balance, shares at Dec. 31, 2017 | 54,737,267 | 54,737,267 | |||||
Effect of adoption of ASU 2016-09 and ASC 606 | 1,521 | $ 1,521 | |||||
Stock-based compensation of options and RSUs | 1,006 | 1,006 | |||||
Exercise of stock options | $ 24 | 2,124 | 2,148 | ||||
Exercise of stock options, shares | 438,840 | ||||||
Comprehensive income (loss) | (2,334) | 18,409 | 16,075 | ||||
Balance at Dec. 31, 2018 | $ 2,625 | $ 924,856 | $ (5,380) | $ (683,029) | $ 239,072 | ||
Balance, shares at Dec. 31, 2018 | 55,176,107 | 55,176,107 | |||||
[1] | Represents an amount lower than $ 1. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 18,409 | $ 6,801 | $ (5,340) |
Adjustments required to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 13,149 | 13,140 | 13,108 |
Capital loss (gain) from disposal of property and equipment | 275 | 245 | (88) |
Stock-based compensation of options and RSUs | 1,006 | 856 | 908 |
Accrued severance pay, net | 57 | 118 | (267) |
Exchange rate differences on long-term loans | (34) | 186 | (43) |
Deferred income taxes, net | (3,672) | 189 | 4 |
Decrease (increase) in trade receivables, net | 2,061 | (2,512) | 4,127 |
Decrease (increase) in contract assets | 11,029 | (17,076) | (41,713) |
Increase in other assets and receivables | (4,917) | (9,147) | (2,966) |
Decrease (increase) in inventories | 5,743 | (10,763) | 2,221 |
Increase (decrease) in trade payables | (8,926) | 4,087 | 12,454 |
Increase (decrease) in accrued expenses | (7,206) | 19,633 | 30,149 |
Increase (decrease) in advances from customers and deferred revenues | 12,433 | (20,858) | (50,008) |
Decrease in advances from customers held by trustees | (1,478) | (6,185) | (18) |
Increase (decrease) in other liabilities | (5,912) | 4,063 | 593 |
Net cash provided by (used in) operating activities | 32,017 | (17,223) | (36,879) |
Cash flows from investing activities: | |||
Purchase of property and equipment | (10,759) | (3,692) | (4,307) |
Net cash used in investing activities | (10,759) | (3,692) | (4,307) |
Cash flows from financing activities: | |||
Capital lease payments | (309) | ||
Issuance of shares in a rights offering, net of issuance costs | 35,085 | ||
Proceeds from exercise of stock option and restricted stock units | 2,149 | 661 | 588 |
Short-term bank credit and loans, net | (7,000) | ||
Repayment of long-term loans | (4,470) | (4,673) | (4,443) |
Net cash provided by (used in) financing activities | (2,321) | (4,012) | 23,921 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,490) | 51 | 981 |
Increase (decrease) in cash, cash equivalents and restricted cash | 17,447 | (24,876) | (16,284) |
Cash, cash equivalents and restricted cash at the beginning of the year | 86,757 | 111,633 | 127,917 |
Cash, cash equivalents and restricted cash at the end of the year | 104,204 | 86,757 | 111,633 |
Cash paid during the year for: | |||
Interest | 303 | 906 | 1,448 |
Income taxes | 3,900 | 2,410 | 2,105 |
Non-cash transactions: | |||
Purchases of property and equipment that were not paid for and reclassification from inventories to property and equipment | 2,307 | 5,710 | 2,452 |
Reclassification from property and equipment to inventories | $ 343 | $ 129 | $ 733 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | NOTE 1: - GENERAL a. Organization: Gilat Satellite Networks Ltd. and its subsidiaries (the “Company”) is a global provider of satellite-based broadband communications. The Company designs and manufactures ground-based satellite communications equipment, and provides comprehensive solutions and end-to-end services, powered by its technology. The Company’s portfolio comprises a cloud based satellite network platform, very small aperture terminals ("VSATs"), amplifiers, high-speed modems, on-the-move antennas and high power solid-state power amplifiers ("SSPAs") and block up converters (“BUCs”). The Company’s solutions support multiple applications with a full portfolio of products to address key applications including broadband access, cellular backhaul, enterprise, in-flight connectivity, maritime, trains, defense and public safety. The Company also provides connectivity services, internet access and telephony, to enterprise, government and residential customers utilizing both its own networks, and also other networks that it installs, mainly based on Build Operate Transfer (“BOT”) contracts. The Company also provides managed network services over VSAT networks owned by others. The Company was incorporated in Israel in 1987 and launched its first generation VSAT in 1989. Through December 31, 2017, the Company’s business was managed and reported in three business segments: Commercial, Mobility and Services. Commencing January 1, 2018, in order to more accurately reflect management focus, organizational alignment, the Company’s customer base and end markets, the Company operates in three new business segments consisting of Fixed Networks, Mobility and Terrestrial Infrastructure Projects. See Note 13 for additional information. b. The Company depends on a major suppliers to supply certain components and services for the production of its products or providing services. If these suppliers fail to deliver or delay 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 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, 2018 | |
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 Gilat Satellite Networks Ltd. and certain of its subsidiaries are generated in U.S. dollars ("dollar") or linked to the dollar. In addition, a substantial portion of Gilat Satellite Networks Ltd. 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 Gilat Satellite Networks Ltd. and certain of its subsidiaries operate. Thus, the functional and reporting currency of Gilat Satellite Networks Ltd. 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 income (loss) 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 income (loss) amounts have been translated using specific rates. The resulting translation adjustments are reported as a component of shareholders' equity in accumulated other comprehensive income (loss). c. Principles of consolidation: The consolidated financial statements include the accounts of Gilat Satellite Networks Ltd. 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 the subsidiary in Colombia ("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). Gilat Colombia was awarded a few projects from the Ministry of ITC, the latest of which was awarded in 2013, and was further extended several times in 2017 and 2018, and is scheduled to be completed in the second quarter of 2019. As required in the bid documents for the Ministry of ITC projects, the Company established trusts (the "Trusts") and entered into governing trust agreements for each project (collectively, the "Trust Agreements"). The Trusts were established for the purpose of holding the network equipment, processing payments to subcontractors, and holding the funds received through the subsidy from the government until they are released in accordance with the terms of the subsidy and paid to Gilat Colombia. The Trusts are a mechanism to allow the Colombian government to review amounts to be paid with the subsidy and verify that such funds are used in accordance with the transaction document and the terms of the subsidy. Gilat Colombia generates revenues both from the subsidy, as well as from the use of the network that it operates. 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 bank deposits, which mature within one year, or in short-term highly liquid investments that are restricted to withdrawals or use. As of December 31, 2018, the vast majority of this amount was linked to the dollar. Such deposits are used as collateral for performance and advance payment guarantees to customers, surety bonds and the lease of some of the Company’s offices, and bear weighted average interest rates of 2.36% and 1.23% as of December 31, 2018 and 2017, respectively. Long-term restricted cash is primarily invested in bank deposits, which mature after more than one year. As of December 31, 2018, the amount is linked to currencies other than the dollar. It bears annual weighted average interest rates of 6.54% and 7.94% as of December 31, 2018 and 2017, respectively. Such deposits are used as collateral for performance guarantees to customers and the lease of some of the Company's offices. f. Restricted cash held by trustees: As of December 31, 2018 and 2017, 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 of ITC (see Note 2c). g. Inventories: Inventories are stated at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. 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 income (loss) as cost of revenues. In addition, if required, the Company records a liability for firm non-cancelable and unconditional purchase commitments with contract manufacturers for quantities in excess of the Company's future demands forecast consistent with its valuation of excess and obsolete inventory. 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 2 - 10 Office furniture and equipment 3 - 15 Vehicles 4 - 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. Rental income generated from office spaces leased to others is included in general and administrative expenses. Network 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 of between 2 to 5 years. The Company has accounted for its assets which are under a capital lease arrangement in accordance with ASC 840 "Leases" ("ASC 840"). Accordingly, assets under a capital lease are stated as assets of the Company on the basis of ordinary purchase prices (without the financing component), and depreciated according to the usual depreciation rates applicable to such assets. The lease payments payable in forthcoming years, net of the interest component included in them, are included in liabilities. The interest in respect of such amounts is accrued on a current basis and is charged to earnings. 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-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 follows: Years Technology 7.9 Customer relationships 6.8 Marketing rights and patents 12.1 j. Impairment of long-lived assets: The Company'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. In the years ended December 31, 2018 and 2017, 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 and whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. 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. In the years ended December 31, 2018 and 2017, following an improvement in the Mobility segment results, the Company performed a qualitative assessment and concluded that it is not more likely than not that the fair value of the reporting units is less than their carrying amounts and accordingly it is unnecessary to perform the two-step quantitative goodwill impairment test. In the year ended December 31, 2016, the Company performed both qualitative and quantitative assessments and concluded that no impairment of goodwill was required to be 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 Company generates revenues mainly from the sale of products (including construction of networks), satellite-based communication networks services and from providing connectivity, internet access and telephony services. The Company sells its products and services to enterprises, government and residential customers under large-scale contracts that utilize both the Company's networks and other networks that the Company installs, mainly based on BOT contracts. These large‑scale contracts sometimes involve the installation of thousands of VSATs or massive fiber-optic and microwave networks. Sale of products includes mainly the sale of VSATs, hubs, SSPAs, low-profile antennas, on-the-move/on-the-pause terminals, and construction and installation of large-scale networks based on BOT contracts. Sale of services includes access to and communication via satellites ("space segment"), installation of equipment, telephone services, internet services, consulting, on-line network monitoring, network maintenance and repair services. The Company sells its products primarily through its direct sales force and indirectly through resellers or system integrators. Sales consummated by the Company's sales force and sales to resellers or system integrators are considered sales to end-users. The Company recognizes revenue when (or as) it satisfies performance obligations by transferring promised products or services to its customers in an amount that reflects the consideration the Company expects to receive. The Company applies the following five steps: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. See Note 2z for additional information. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price (“SSP”) basis. The Company establishes SSP based on management judgment, considering internal factors such as margin objectives, pricing practices and historical sales. Consideration from contracts that is assessed as not being probable of collection is not recognized as revenue until the contract is completed and cash is received. Collectability is re-assessed when there is a significant change in facts or circumstances. The Company’s assessment of collectability considers whether it may limit its exposure to credit risk through its right to stop transferring additional service in the event the customer is delinquent as well as certain contract terms such as down payments that reduce its exposure to credit risk. Revenue from the sale of equipment is recognized at a point in time, once the customer has obtained control over the items purchased. When significant acceptance provisions are included in the arrangement, the Company defer recognition of the revenue until the acceptance occurs. The Company generally does not grant a right of return to its customers. Revenue from periodic services is recognized ratably over the term the services are rendered. Revenue from other services is recognized upon their completion. Revenues from contracts under which the Company provides significant construction to the customer's specifications (mostly governmental projects) are generally recognized over time because of continuous transfer of control to the customer. This continuous transfer of control to the customer is supported by clauses in the contract that allow the customer to unilaterally terminate the contract for convenience, pay the Company for costs incurred plus a reasonable profit and take control of any work in process. The Company generally uses the cost-to-cost measure of progress for its contracts because it best depicts the transfer of control to the customer, which occurs as it incurs costs on the contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred. Costs to fulfill include labor, materials and subcontractors’ costs and other direct and allocated indirect costs. When estimates of total costs to be incurred exceed total estimates of revenue to be earned on the uncompleted contracts, a provision for the entire loss on the contract is recognized in the period the loss is identified. Under the typical payment terms of government fixed-price contracts, the customer pays the Company milestones-based payments. Those payments are based on quantifiable measures of performance or on the achievement of specified events or milestones. Because those payments are due upon completion of those milestones, they may result in revenue recognized in excess of billings and are presented as part of contract assets on the balance sheet. Amounts recognized as revenue and which the Company has unconditional right to receive are classified as trade receivables on the balance sheet. Revenue from products under 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. Deferred revenue and advances from customers are recorded when the Company receives payments from customers before performance obligations have been performed. Deferred revenue is recognized as revenue as (or when) the Company performs the performance obligation under the contract. For information regarding disaggregated revenues, please refer to Note 13. The Company pays sales commissions to sales and marketing and certain management personnel based on their attainment of certain predetermined sales goals. Sales commissions earned by its employees are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions are capitalized and amortized upon recognition of the related revenue, consistently with the transfer to the customer of the goods or services to which they relate. Amortization expenses related to these costs are mostly included in sales and marketing expenses in the accompanying consolidated statements of operations. n. Selling and marketing expenses: Selling and marketing expenses include shipping expenses in the amounts of $1,303, $1,225 and $1,367 for the years ended December 31, 2018, 2017 and 2016, respectively. Advertising costs are expensed as incurred. Advertising expenses amounted to $247, $204, and $243 for the years ended December 31, 2018, 2017 and 2016, respectively. o. Warranty costs: Generally, the Company provides product assurance warranties for periods between twelve to twenty four months at no extra charge that covers the compliance of the products with agreed-upon specifications. A provision is recorded for estimated warranty costs based on the Company's experience. Warranty expenses amounted to $591, $323 and $704 for the years ended December 31, 2018, 2017 and 2016, respectively. p. Research and development expenses: Research and development costs are charged to the consolidated statements of income (loss) as incurred and are presented net of government grants. ASC 985, "Software", requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. Based on the Company's product development process, technological feasibility is established upon 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 Company 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 Company 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 $1,426, $1,419 and $1,624 for the years ended December 31, 2018, 2017 and 2016, respectively. 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 income (loss). The Company recognizes compensation expenses for the value of its awards, based on the straight-line method over the requisite service period of each of the awards. Effective as of January 1, 2017, the Company adopted Accounting Standards Update 2016-09, "Compensation-Stock Compensation (Topic 718)" ("ASU 2016-09") on a modified, retrospective basis. ASU 2016-09 permits entities to make an accounting policy election related to how forfeitures will impact the recognition of compensation cost for stock - based compensation: to estimate the total number of awards for which the requisite service period will not be rendered or to account for forfeitures as they occur. Upon adoption of ASU 2016-09, the Company elected to change its accounting policy to account for forfeitures as they occur. The change was applied on a modified, retrospective basis with a cumulative effect adjustment to retained earnings of $55 (which increased the accumulated deficit) as of January 1, 2017. s. Income taxes: The Company 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 Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value if it is more likely than not that a portion or all of the deferred tax assets will not be realized. ASC 740 contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company 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 Company to concentrations of credit risk consist principally of cash and cash equivalents, short-term and long-term restricted cash, restricted cash held by trustees trade receivables and contract assets. The majority of the Company's cash and cash equivalents are invested in dollars with major banks in Israel, the United States and South America. Generally, these cash and cash equivalents may be redeemed upon demand and therefore, management believes that they bear low risk. The majority of the Company's short-term and long-term restricted cash are invested in dollars with major banks in Israel. The Company is generally entitled to receive the restricted cash 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, 2018, restricted cash held by the trustees amounted to $4,372. 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 balance sheet as Restricted cash held by trustees. Trade receivables and contract assets of the Company are mainly derived from sales to major customers located in North, South and Central America, Europe and Asia. The Company 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 Company has determined to be doubtful of collection. As of December 31, 2018 and 2017 the Company has recorded a provision for doubtful accounts in the amounts of $3,202 and $3,896, respectively. The Company has recorded a net expense (income) from bad debts in the amount of ($376), $2,231 and $6,222 for the years ended December 31, 2018, 2017 and 2016, respectively. 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 balance sheet, as the Company is legally released from severance obligation to employees once the amounts have been deposited, and the Company has no further legal ownership of the amounts deposited. The carrying value for the deposited funds for the Company's employees' severance pay for employment periods prior to the transition date include profits and losses accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to the Israeli Severance Pay Law or labor agreements. Severance pay expenses for the years ended December 31, 2018, 2017 and 2016, amounted to $3,138, $2,819 and $2,577, respectively. 401(k) profit sharing plans: The Company has a number of savings plans in the United States that qualify under Section 401(k) of the current Internal Revenue Code as a "safe harbor" plan. The Company must make a mandatory contribution to the 401(k) plan to satisfy certain nondiscrimination requirements under the Internal Revenue Code. This mandatory contribution is made to all eligible employees. The contribution costs for all the plans were $479, $411 and $357 for the years ended December 31, 2018, 2017 and 2016, respectively. v. Fair value of financial instruments: The Company 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 Company 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 Company. Unobservable inputs are inputs that reflect the Company'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, contract assets, other current assets, trade payables, accrued expenses and other current liabilities approximate their fair value due to the short-term maturities of such instruments. Based on the borrowing rates currently available to the Company for bank loans with similar terms and maturities, the Company estimates that the carrying value of its long-term debt approximates their fair value. The Company measured the fair value of the forward contracts in accordance with ASC 820 and classified them as Level 2. Forward contracts are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. w. Earnings (loss) per sh |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 3:- INVENTORIES a. Inventories are comprised of the following: December 31, 2018 2017 Raw materials, parts and supplies $ 5,885 $ 7,367 Work in progress 10,548 10,300 Finished products 4,676 11,186 $ 21,109 $ 28,853 b. Inventory write-offs amounted to $6,354, $3,270 and $4,833 for the years ended December 31, 2018, 2017 and 2016, respectively. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 4:- PROPERTY AND EQUIPMENT, NET a. Property and equipment, net consisted of the following: December 31, 2018 2017 Cost: Buildings and land $ 92,025 $ 90,914 Computers, software and electronic equipment 50,390 45,119 Network equipment 40,502 40,016 Office furniture and equipment 5,317 5,387 Vehicles 324 390 Leasehold improvements 3,556 2,522 192,114 184,348 Accumulated depreciation 107,711 102,102 Depreciated cost $ 84,403 $ 82,246 *) The Company recorded a reduction of $732 and $46,051 to the cost and accumulated depreciation of fully depreciated equipment and leasehold improvements that are no longer in use for the years ended December 31, 2018 and 2017, respectively. b. Depreciation expenses amounted to $9,874, $7,465 and $7,337 in the years ended December 31, 2018, 2017 and 2016, respectively. c. As for pledges and securities, see also Note 11c. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 5:- INTANGIBLE ASSETS, NET a. Intangible assets, net consisted of the following: December 31, 2018 2017 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 41,281 38,231 Customer relationships 4,466 4,466 Marketing rights and patents 2,210 1,985 47,957 44,682 $ 2,434 $ 5,709 b. Amortization expenses amounted to $3,275, $5,675 and $5,771 for the years ended December 31, 2018, 2017 and 2016, respectively. c. Estimated amortization expenses for the following years is as follows: Year ending December 31, 2019 $ 911 2020 441 2021 431 2022 321 2023 and thereafter 330 $ 2,434 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2018 | |
GOODWILL [Abstract] | |
GOODWILL | NOTE 6:- GOODWILL December 31, 2018 2017 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 segment. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 7:- COMMITMENTS AND CONTINGENCIES a. Lease commitments: The Company's subsidiaries entered into various non-cancelable operating lease agreements for certain of their offices and facilities, expiring between 2019 and 2023. Minimum lease commitments under non-cancelable operating lease agreements as of December 31, 2018, are as follows: Year ending December 31, 2019 $ 1,973 2020 877 2021 593 2022 529 2023 409 $ 4,381 Rent expenses during the years ended December 31, 2018, 2017 and 2016 were $2,578, $2,599 and $2,568, respectively. Some of the Company'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, 2018, are as follows: Year ending December 31, 2019 $ 8,367 2020 6,016 2021 1,587 $ 15,970 Space segment services expenses during the years ended December 31, 2018, 2017 and 2016 were $12,771, $11,184 and $10,278, respectively. c. In 2018 and 2017, 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, 2018, and 2017, the Company's major outstanding inventory purchase commitments amounted to $18,418 and $22,309, respectively, all of which were orders placed or commitments made in the ordinary course of its business. As of December 31, 2018 and 2017, $6,939 and $9,235, respectively, of these orders and commitments, were from suppliers which can be considered sole or limited in number. In addition, for the year ended December 31, 2018, the Company recorded a loss for firm non-cancelable and unconditional purchase commitments with contract manufacturers for quantities in excess of the Company's future demands forecast consistent with its valuation of excess and obsolete inventory in the amount of $1,448. 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, 2018, the Company had a contingent liability to pay royalties in the amount of approximately $1,408. The Company paid royalties in the amount of $20 during the year ended December 31, 2018. The Company did not pay or accrue any amounts for such royalties during the years ended December 31, 2017 and 2016. 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, 2018, the Company had a contingent liability to pay royalties in the amount of approximately $253. The Company did not pay or accrue any amounts for such royalties during the years ended December 31, 2018, 2017 and 2016. e. Litigation: In 2003, the Brazilian tax authority filed a claim against the Company’s inactive subsidiary in Brazil, for the payment of taxes allegedly due from the subsidiary. After numerous hearings and appeals at various appellate levels in Brazil, the Superior Court and the Supreme Court in February and March 2016 ruled against the subsidiary in final non-appealable decisions. The total amount of this claim, including interest, penalties and legal fees is approximately $9,000, of which approximately $1,000 is the principal. The Brazilian tax authorities initiated foreclosure proceedings against the subsidiary and certain of its former managers. Pursuant to the court’s decision, published in March 2016, the foreclosure proceedings against the former managers were cancelled. The tax authorities appealed such decision which appeal was rejected in July 2017. This court ruling is final and is not appealable. Based on Brazilian external counsel’s opinion, the Company believes that the subsidiary has solid arguments to sustain its position that further collection proceedings are barred due to statute of limitation and that the inclusion of any additional co-obligors in the tax foreclosure certificate should be barred due to the applicable statute of limitations and that the foreclosure procedures cannot legally be redirected to any of the Company’s entities and managers who were not cited in the foreclosure certificate. Accordingly, the Company believes that the chances that such redirection will lead to a loss recognition are remote. In October 2017, the Company was informed that a former subcontractor that was engaged in connection with the project of Gilat Colombia has initiated an arbitration proceeding against the subsidiary for a breach of contract. The amount of the claim is approximately $6,600. In July 2018 the subsidiary filed its response and a counterclaim against the subcontractor. The amount of the counter claim is approximately $7,900 plus interest. The arbitration is currently pending the counter parties’ filing their response. Based on legal advice, the Company believes that it has made adequate accruals relating to this proceeding. In addition, the Company is in the midst of different stages of audits and disputes with various tax authorities in different parts of the world. 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 11c. g. Guarantees: The Company guarantees its performance to certain customers through bank guarantees, surety bonds from insurance companies and corporate guarantees. Guarantees are often required for the Company's performance during the installation and operational periods. The guarantees typically expire when certain operational milestones are met. As of December 31, 2018, the aggregate amount of bank guarantees and surety bonds from insurance companies outstanding in order to secure the Company's various obligations was $149,523, including an aggregate of $136,003 on behalf of its subsidiaries in Peru. The Company has $32,451 of restricted cash to secure these guarantees. In accordance with ASC 460, "Guarantees" ("ASC 460"), as the guarantees above are performance guarantees for the Company's own performance, such guarantees are excluded from the scope of ASC 460. The Company has not recorded any liability for such amounts, since the Company expects that its performance will be acceptable. To date, no guarantees have ever been exercised against the Company. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2018 | |
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 balance sheet: Fair value of derivative instruments December 31, 2018 2017 Derivative: Foreign exchange forward contracts / options (1) Other current assets (liabilities) $ (320 ) $ 170 (1) 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 flow 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, 2018, 2017 and 2016, 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 statement of income (loss) amounted to $(1,056), $1,114 and $393 in the years ended December 31, 2018, 2017 and 2016, respectively The ineffective portion of the hedged instrument which was recorded during the years ended December 31, 2018, 2017 and 2016, was immaterial and has been recorded as financial income (expenses). As of December 31, 2018 and 2017, the Company had outstanding forward contracts in the notional amount of $27,153 and $16,007, respectively. |
SHAREHOLDERS EQUITY
SHAREHOLDERS EQUITY | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS EQUITY | NOTE 9:- SHAREHOLDERS' 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 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. During the years commencing in 2010 and through December 31, 2018, the Company's Board of Directors approved, in the aggregate, an increase of 5,104,000 shares to the number of shares available for grant under the 2008 Plan, bringing the total amount of shares available for grant to 6,104,000. As of December 31, 2018, an aggregate of 128,888 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 50% at the second anniversary and 25% at the third and fourth anniversary. The options expire after six, seven or ten years from the date of grant. Restricted share units (“RSUs”) granted under the 2008 Plan 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 selected the Black-Scholes-Merton option-pricing model as the most appropriate fair value method for its stock options awards and the fair value of RSUs is based on the market stock price on the date of grant. The option-pricing model requires a number of assumptions, of which the most significant are the expected stock price volatility and the expected option term. Expected volatility was calculated 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 bonds with an equivalent term. The Company has historically not paid dividends. The Company’s Board of directors declared on the date of this annual report a cash dividend in the amount of $ 0.45 per share 25,000 For additional information see Options granted to employees: The fair value of the Company's stock options granted to employees for the years ended December 31, 2018, 2017 and 2016 was estimated using the following weighted average assumptions: Year ended December 31, 2018 2017 2016 Risk free interest 2.48%-2.82% 1.66%-2.00% 1.08%-1.62% Dividend yields 0% 0% 0% Volatility 33% 33% 33%-35% Expected term (in years) 4.3-4.39 4.52 4.8 A summary of employee option balances under the 2008 Plan as of December 31, 2018 and changes during the year then ended 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, 2018 2,808,000 $ 5.2 Granted 740,000 $ 8.2 Exercised (438,840 ) $ 4.9 Forfeited (225,750 ) $ 5.3 Outstanding at December 31, 2018 2,883,410 $ 6.0 3.7 $ 9,087 Exercisable at December 31, 2018 1,209,910 $ 5.2 2.6 $ 4,804 The weighted-average grant-date fair value of options granted to employees during the year ended December 31, 2018 was $2.3. 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 2018 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, 2018. These amounts change based on the fair market value of the Company's stock. Total intrinsic value of options exercised for the year ended December 31, 2018 was $1,789. The outstanding and exercisable options granted to employees under the 2008 Plan as of December 31, 2018, 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 2018 life (years) price 2018 options $3.77-5.63 1,773,410 3.1 $ 5.0 1,060,660 5.0 $5.86-8.14 925,000 4.4 $ 7.3 149,250 6.7 $9.34 185,000 5.6 $ 9.3 - 2,883,410 3.7 $ 6.0 1,209,910 5.2 Additional stock-based compensation data: As of December 31, 2018, there was $2,254 of unrecognized compensation costs related to non-vested stock-based compensation arrangements granted to employees under the 2008 Plan. The cost related to employees is expected to be recognized over a weighted-average period of 2.78 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. As set forth in Note 15, the Company’s Board of Directors declared a cash dividend in the amount 0.45 per share 25,000 2. Pursuant to the terms of a loan from a bank (see also Note 11c), the Company is restricted from paying cash dividends to its shareholders without initial approval from the bank, the company has obtained such an approval with respect to the expected distribution |
TAXES ON INCOME
TAXES ON INCOME | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
TAXES ON INCOME | NOTE 10:- TAXES ON INCOME a. Israeli taxation: 1. Corporate tax rates: Generally, income of Israeli companies is subject to corporate tax. The corporate tax rate in Israel is 23% in 2018, compared with 24% in 2017 and 25% in 2016. 2. Tax benefits under the Law for the Encouragement of Capital Investments, 1959 (the "Law"): The Company has been granted an "Approved Enterprise" status, under the Law, for nine investment programs in the alternative program, by the Israeli Government. Certain production facilities of the Company have been granted "Benefitted Enterprise" Income derived from Approved Enterprise The period of benefits of the Benefitted Enterprises under the 2011 election will expire in 2023 . 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. Dividends distributed from taxable income accrued during the period of benefits of Approved Enterprise are taxable at a rate of 15%. Dividends distributed from taxable income accrued during the period of benefits of a Benefitted Enterprise, are taxable at the rate of 15%, if the dividend is distributed during the tax benefit period, or within an additional 12 years after the lapse of that period. Income from sources other than a "Benefitted Enterprise" during the benefit period is subject to tax at the regular corporate tax rate (25% in 2016, 24% in 2017 and 23% in 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 applicable tax rate for 2014 and onwards is set at 9% in geographical areas in Israel designated as Development Zone A and 16% elsewhere in Israel applicable to the company. The profits of these Industrial Companies would be freely distributable as dividends, subject to a 20% withholding tax (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 Zone 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 Amendment also prescribes special tax tracks for technological enterprises. 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 Zone 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%. b. 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. As of December 31, 2018, the amount of undistributed earnings of non-Israeli subsidiaries, which is considered indefinitely reinvested, was $3,134 with a corresponding unrecognized deferred tax liability of $398. In December 2017, the U.S. enacted significant tax reform through the U.S. Tax Cuts & Jobs Acts (“TCJA”). The TCJA enacted significant changes affecting the year ended December 31, 2017, including, but not limited to, (1) reducing the U.S. federal corporate income tax rate from 35% to 21% effective 2018, and (2) imposing a one-time Transition Tax on certain unrepatriated earnings of foreign subsidiaries of U.S. companies that had not been previously taxed in the U.S. The TCJA also established new tax provisions affecting 2018, including, but not limited to, (1) creating a new provision designed to tax global intangible low-tax income (“GILTI”); (2) generally eliminating U.S. federal taxes on dividends from foreign subsidiaries; (3) eliminating the corporate alternative minimum tax (“AMT”); (4) creating the base erosion anti-abuse tax (“BEAT”); (5) establishing a deduction for foreign derived intangible income ("FDII"); (6) repealing the domestic production activity deduction; and (7) establishing new limitations on deductible interest expense and certain executive compensation. The reduction of the U.S. federal corporate income tax rate required the Company to remeasure its deferred tax assets and liabilities as of the date of enactment. For the year ended December 31, 2017, the Company decreased its deferred tax assets as a result of such remeasurement with a corresponding decrease to the valuation allowance as provisional amounts, resulting in no net effect on the benefit from taxes on income for the year ended December 31, 2017. As of December 31, 2018, the Company has completed the accounting for all the impacts of the TCJA with no material adjustments to the provisional amounts recorded as of December 31, 2017. c. Carryforward tax losses and credits: As of December 31, 2018, the Company had operating loss carry forwards for Israeli income tax purposes of approximately $92,000 which may be offset indefinitely against future taxable income. As of December 31, 2018, the Company's U.S. subsidiary had approximately $8,600 carryforward tax losses for federal tax purposes, $11,400 for state tax purposes and R&D credits carryforwards of approximately $5,700. These U.S. net operating losses can be utilized within 20 years and may be subject to substantial annual limitation due to the "change in ownership" provisions of Internal Revenue Code of 1986 and similar state provisions. These annual limitations may result in the expiration of net operating loss before utilization. The Company has carryforward tax losses relating to other subsidiaries in Europe and Latin America of approximately $41,400 (which can be utilized within 9 years) and $ 30 11 d. Deferred income taxes: Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax liabilities and assets are as follows: December 31, 2018 2017 1. Provided in respect of the following: Carryforward tax losses and credits *) $ 41,561 $ 38,918 Property, equipment and intangibles 904 1,484 Deferred revenues 823 2,224 Research and development costs 804 1,716 Other 7,202 7,435 Gross deferred tax assets 51,294 51,777 Valuation allowance (40,943 ) (44,882 ) Net deferred tax assets 10,351 6,895 Gross deferred tax liabilities Property, equipment and intangibles (3,208 ) (3,098 ) Subsidy income (3,574 ) (3,093 ) Other (22 ) (829 ) Gross deferred tax liabilities (6,804 ) (7,020 ) Net deferred tax assets (liabilities) $ 3,547 $ (125 ) *) The amounts are shown after reduction for unrecognized tax benefits of $ 1,989 as of December 31, 2018. 2. Deferred taxes are included in the consolidated balance sheets, as follows: Long term assets $ 4,127 $ 861 Long term liabilities $ (580 ) $ (986 ) 3. The Peruvian government 4. As of December 31, 2018, the Company decreased the valuation allowance by $ 3,939, 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. During the year ended December 31, 2018, the Company released valuation allowance against the deferred tax assets primarily related to carryforward tax credits related to its U.S. subsidiary. 5. 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. e. Reconciling items between the statutory tax rate of the Company and the actual taxes on income (tax benefit): Year ended December 31, 2018 2017 2016 Income (loss) before taxes on income from continuing operations , as reported in the consolidated statements of income (loss) $ 16,986 $ 6,554 $ (4,088 ) Statutory tax rate 23.0 % 24.0 % 25.0 % Theoretical taxes on income (tax benefit) $ 3,907 $ 1,573 $ (1,022 ) Currency differences 3,089 (3,225 ) (2,174 ) Tax adjustment in respect of different tax rates and "Benefitted Enterprise" status 345 2,849 (5,580 ) Changes in valuation allowance (3,939 ) (3,343 ) 11,832 Loss from liquidation of subsidiaries *) (8,930 ) - - Forfeiture of carryforward tax losses - 622 261 Exempt subsidy income (loss) 394 (2,646 ) (4,224 ) U.S. Tax Cuts and Jobs Acts effect 56 2,138 - Nondeductible expenses and other differences 3,655 1,785 2,159 $ (1,423 ) $ (247 ) $ 1,252 *) In 2018 the Company’s Dutch subsidiary liquidated some of its subsidiaries and consequently recognized losses for tax purposes. These losses can be offset from taxable income in future periods under the tax regulations in the Netherlands. The Company does not expect these losses to be realized in the foreseeable future and respectively provided a full valuation allowance. f. Taxes on income (tax benefit) included in the consolidated statements of income (loss): Year ended December 31, 2018 2017 2016 Current $ 2,249 $ (436 ) $ 1,248 Deferred (3,672 ) 189 4 $ (1,423 ) $ (247 ) $ 1,252 Domestic $ 610 $ 768 $ 555 Foreign (2,033 ) (1,015 ) 697 $ (1,423 ) $ (247 ) $ 1,252 g. Income (loss) before taxes on income (tax benefit) from continuing operations: Year ended December 31, 2018 2017 2016 Domestic $ 6,596 $ 1,289 $ (8,056 ) Foreign 10,390 5,265 3,968 $ 16,986 $ 6,554 $ (4,088 ) h. Unrecognized tax benefits: A reconciliation of the beginning and ending gross amount of unrecognized tax benefits is as follows: December 31, 2018 2017 Balance at beginning of year $ 129 $ 776 Settlements with tax authorities - (718 ) Reductions for prior years' tax position - (58 ) Additions for prior years' tax position 1,809 129 Additions for current years' tax position 296 - Balance at the end of year *) $ 2,234 $ 129 *) The amount for the year ended December 31, 2018 includes $1,989 of unrecognized tax benefits which are presented as a reduction from deferred tax assets, see Note 10d. The unrecognized tax benefits include accrued penalties and interest of $ 193 and $ 107 as of December 31, 2018 and 2017, respectively. During the years ended December 31, 2018 and December 31, 2017, the Company recorded an expense of $86 accrued on the unrecognized tax benefits and an income of $197 on the reversal of penalties and interest, respectively. The Company and its subsidiaries file income tax returns in Israel and in other jurisdictions of its subsidiaries. The Company's tax assessments through 2014 are considered final. |
SUPPLEMENTARY CONSOLIDATED BALA
SUPPLEMENTARY CONSOLIDATED BALANCE SHEET INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
SUPPLEMENTARY BALANCE SHEET INFORMATION [Abstract] | |
SUPPLEMENTARY CONSOLIDATED BALANCE SHEET INFORMATION | NOTE 11:- SUPPLEMENTARY CONSOLIDATED BALANCE SHEET INFORMATION a. Other current assets: December 31, 2018 2017 Governmental authorities $ 6,264 $ 5,196 Prepaid expenses 6,612 4,220 Deferred charges 9,446 7,100 Advance payments to suppliers 2,651 1,136 Other 1,049 1,763 $ 26,022 $ 19,415 b. Other current liabilities: December 31, 2018 2017 Payroll and related employee accruals $ 13,229 $ 14,644 Derivative instruments 320 - Governmental authorities 506 2,206 Other 533 3,194 $ 14,588 $ 20,044 c. Long-term loans: Interest rate for December 31, 2018 2017 2018 2017 Linkage % Maturity Loans from banks: (a) U.S. dollars 4.77 4.77 2021 $ 12,000 $ 16,000 (b) Euro EURIBOR +2.75 EURIBOR +2.75 2020 556 1,061 12,556 17,061 Less - current maturities 4,458 4,479 $ 8,098 $ 12,582 (a) The Company entered into a loan agreement with an Israeli bank 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. Long-term debt maturities for loans after December 31, 2018, are as follows: Year ending December 31, 2020 $ 4,098 2021 4,000 $ 8,098 Interest expenses on the long-term loans amounted to $614, $822 and $1,066 for the years ended December 31, 2018, 2017 and 2016, respectively. d. Other long-term liabilities: December 31, 2018 2017 Long-term tax accrual $ - $ 22 Long-term deferred taxes 580 986 $ 580 $ 1,008 |
SELECTED CONSOLIDATED STATEMENT
SELECTED CONSOLIDATED STATEMENTS OF INCOME (LOSS) DATA | 12 Months Ended |
Dec. 31, 2018 | |
SELECTED STATEMENTS OF OPERATIONS DATA [Abstract] | |
SELECTED CONSOLIDATED STATEMENTS OF INCOME (LOSS) DATA | NOTE 12:- SELECTED CONSOLIDATED STATEMENTS OF INCOME (LOSS) DATA a. Financial expenses, net: Year ended December 31, 2018 2017 2016 Income: Interest on cash equivalents, bank deposits and restricted cash $ 981 $ 447 $ 1,027 Other 29 355 81 1,010 802 1,108 Expenses: Interest with respect to bank credit, loans and other 614 844 1,098 Exchange rate differences, net 1,074 226 452 Bank charges including guarantees 3,560 3,857 4,323 Other 60 182 78 5,308 5,109 5,951 Total financial expenses, net $ 4,298 $ 4,307 $ 4,843 b. Earnings (loss) per share: The following table sets forth the computation of basic and diluted net earnings (loss) per share: 1. Numerator: Year ended December 31, 2018 2017 2016 Numerator for basic and diluted earnings (loss) per share - Net income (loss) available to holders of Ordinary shares: $ 18,409 $ 6,801 $ (5,340 ) 2. Denominator (number of shares in thousands): Denominator for basic net loss per share - Weighted average number of shares 54,927 54,681 51,970 Add-employee stock options 826 171 * ) - Denominator for diluted net earnings (loss) per share - adjusted weighted average shares assuming exercise of options 55,753 54,852 51,970 *) Anti-dilutive effect. |
CUSTOMERS, GEOGRAPHIC AND SEGME
CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION | NOTE 13:- CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION The Company applies ASC 280, "Segment Reporting" ("ASC 280"). Operating segments are defined as components of an enterprise for which separate financial information is available and is evaluated regularly by the chief operating decision maker. Segments are managed separately and can be described as follows: Prior to 2018, the Company operated in three business divisions: Commercial, Mobility and Services. Commencing in 2018, following changes in the Company's strategy and organizational structure and in order to more accurately reflect the Company's management focus, organizational alignment, customer base and end markets, the Company operates in three business segments, as follows: Fixed Networks Mobility Solutions Terrestrial Infrastructure Projects The Company has retrospectively revised its segment information for the prior comparative periods to conform to the new business segments presentation. 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. The above changes in the Company's reportable segments had no effect on the goodwill assignment among the divisions. 3. Financial data relating to reportable operating segments: Year ended December 31, 2018 Fixed Networks Mobility Solutions Terrestrial Infrastructure Projects Total Revenues $ 144,208 $ 97,180 $ 25,003 $ 266,391 Cost of revenues 93,745 47,995 30,614 172,354 Gross profit 50,463 49,185 (5,611 ) 94,037 Research and development, net 11,764 21,259 - 33,023 Selling and marketing 16,106 6,421 179 22,706 General and administrative 11,302 4,436 1,286 17,024 Operating income (loss) 11,291 17,069 (7,076 ) 21,284 Financial expenses, net 4,298 Income before taxes 16,986 Taxes on income (benefit) (1,423 ) Net income 18,409 Depreciation and amortization expenses $ 6,811 $ 6,128 $ 210 $ 13,149 Year ended December 31, 2017 Fixed Networks Mobility Solutions Terrestrial Infrastructure Projects Total Revenues $ 116,105 $ 88,397 $ 78,254 $ 282,756 Cost of revenues 81,920 46,493 71,848 200,261 Gross profit 34,185 41,904 6,406 82,495 Research and development, net 12,172 15,842 - 28,014 Selling and marketing 17,782 5,782 195 23,759 General and administrative 10,987 6,326 2,548 19,861 Operating income (loss) (6,756 ) 13,954 3,663 10,861 Financial expenses, net 4,307 Income before taxes 6,554 Taxes on income (benefit) (247 ) Net income 6,801 Depreciation and amortization expenses $ 5,046 $ 7,902 $ 192 $ 13,140 Year ended December 31, 2016 Fixed Networks Mobility Solutions Terrestrial Infrastructure Projects Total Revenues $ 124,930 $ 62,911 $ 91,710 $ 279,551 Cost of revenues 84,986 40,962 78,113 204,061 Gross profit 39,944 21,949 13,597 75,490 Research and development, net 12,599 12,254 - 24,853 Selling and marketing 17,710 5,483 218 23,411 General and administrative 13,750 9,138 3,583 26,471 Operating income (loss) (4,115 ) (4,926 ) 9,796 755 Financial expenses, net (4,843 ) Loss before taxes (4,088 ) Taxes on income 1,252 Loss (5,340 ) Depreciation and amortization expenses $ 5,394 $ 7,530 $ 184 $ 13,108 b. Geographic information: 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, 2018 2017 2016 Latin America $ 94,707 $ 132,134 $ 143,491 Asia Pacific 39,381 34,586 47,094 North America 97,122 73,921 54,728 Europe, the Middle East and Africa 35,181 42,115 34,238 $ 266,391 $ 282,756 $ 279,551 c. The Company's long-lived assets are located as follows: Property and Equipment, net: December 31, 2018 2017 Israel $ 64,018 $ 62,606 Latin America 4,564 5,000 United States 5,620 3,733 Europe 9,117 9,426 Other 1,084 1,481 $ 84,403 $ 82,246 d. The table below represents the revenues from major customers: Year ended December 31, 2018 2017 2016 Customer A 10 % 28 % 34 % Customer B 15 % * ) * ) Customer C 13 % * ) * ) *) Less than 10% Customer A is located in Peru, Customer B is located in North America and Customer C is located in Colombia. |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
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 Funds ("FIMI"), holds approximately 36.6% of C. Mer's share capital. b. In December 2015 the Company entered into a memorandum of understanding with Orbit Communication Systems, ("Orbit"), a publicly traded company (TASE), for development and manufacture of antenna for an aggregate amount of approximately $1,750. The memorandum specifies prices per additional product units ordered in the future by the Company. In August 2017, FIMI acquired approximately 33.4% of Orbit's share capital and representatives of FIMI serve on Orbit's board of directors. Transactions with Orbit are presented for the period starting August 2017. c. T Year ended December 31, 2018 2017 2016 Cost of revenues of products $ 764 $ 3,770 $ 12,280 Research and development $ 346 $ 61 $ - Purchase of property and equipment and inventory $ 101 $ 100 $ - d. B December 31, 2018 2017 Advance payments $ 144 $ - Trade payables $ 125 $ 1,220 Accrued expenses $ 1,797 $ 2,241 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 15:- SUBSEQUENT EVENT The Company’s Board of Directors declared on the date of this annual report a cash dividend in the amount of $ 0.45 per share 25,000 11 March 29 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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 Gilat Satellite Networks Ltd. and certain of its subsidiaries are generated in U.S. dollars ("dollar") or linked to the dollar. In addition, a substantial portion of Gilat Satellite Networks Ltd. 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 Gilat Satellite Networks Ltd. and certain of its subsidiaries operate. Thus, the functional and reporting currency of Gilat Satellite Networks Ltd. 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 income (loss) 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 income (loss) amounts have been translated using specific rates. The resulting translation adjustments are reported as a component of shareholders' equity in accumulated other comprehensive income (loss). |
Principles of consolidation | c. Principles of consolidation: The consolidated financial statements include the accounts of Gilat Satellite Networks Ltd. 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 the subsidiary in Colombia ("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). Gilat Colombia was awarded a few projects from the Ministry of ITC, the latest of which was awarded in 2013, and was further extended several times in 2017 and 2018, and is scheduled to be completed in the second quarter of 2019. As required in the bid documents for the Ministry of ITC projects, the Company established trusts (the "Trusts") and entered into governing trust agreements for each project (collectively, the "Trust Agreements"). The Trusts were established for the purpose of holding the network equipment, processing payments to subcontractors, and holding the funds received through the subsidy from the government until they are released in accordance with the terms of the subsidy and paid to Gilat Colombia. The Trusts are a mechanism to allow the Colombian government to review amounts to be paid with the subsidy and verify that such funds are used in accordance with the transaction document and the terms of the subsidy. Gilat Colombia generates revenues both from the subsidy, as well as from the use of the network that it operates. 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 bank deposits, which mature within one year, or in short-term highly liquid investments that are restricted to withdrawals or use. As of December 31, 2018, the vast majority of this amount was linked to the dollar. Such deposits are used as collateral for performance and advance payment guarantees to customers, surety bonds and the lease of some of the Company’s offices, and bear weighted average interest rates of 2.36% and 1.23% as of December 31, 2018 and 2017, respectively. Long-term restricted cash is primarily invested in bank deposits, which mature after more than one year. As of December 31, 2018, the amount is linked to currencies other than the dollar. It bears annual weighted average interest rates of 6.54% and 7.94% as of December 31, 2018 and 2017, respectively. Such deposits are used as collateral for performance guarantees to customers and the lease of some of the Company's offices. |
Restricted cash held by trustees | f. Restricted cash held by trustees: As of December 31, 2018 and 2017, 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 of ITC (see Note 2c). |
Inventories | g. Inventories: Inventories are stated at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. 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 income (loss) as cost of revenues. In addition, if required, the Company records a liability for firm non-cancelable and unconditional purchase commitments with contract manufacturers for quantities in excess of the Company's future demands forecast consistent with its valuation of excess and obsolete inventory. 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 2 - 10 Office furniture and equipment 3 - 15 Vehicles 4 - 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. Rental income generated from office spaces leased to others is included in general and administrative expenses. Network 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 of between 2 to 5 years. The Company has accounted for its assets which are under a capital lease arrangement in accordance with ASC 840 "Leases" ("ASC 840"). Accordingly, assets under a capital lease are stated as assets of the Company on the basis of ordinary purchase prices (without the financing component), and depreciated according to the usual depreciation rates applicable to such assets. The lease payments payable in forthcoming years, net of the interest component included in them, are included in liabilities. The interest in respect of such amounts is accrued on a current basis and is charged to earnings. |
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-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 follows: 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 Company'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. In the years ended December 31, 2018 and 2017, 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 and whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. 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. In the years ended December 31, 2018 and 2017, following an improvement in the Mobility segment results, the Company performed a qualitative assessment and concluded that it is not more likely than not that the fair value of the reporting units is less than their carrying amounts and accordingly it is unnecessary to perform the two-step quantitative goodwill impairment test. In the year ended December 31, 2016, the Company performed both qualitative and quantitative assessments and concluded that no impairment of goodwill was required to be 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 Company generates revenues mainly from the sale of products (including construction of networks), satellite-based communication networks services and from providing connectivity, internet access and telephony services. The Company sells its products and services to enterprises, government and residential customers under large-scale contracts that utilize both the Company's networks and other networks that the Company installs, mainly based on BOT contracts. These large‑scale contracts sometimes involve the installation of thousands of VSATs or massive fiber-optic and microwave networks. Sale of products includes mainly the sale of VSATs, hubs, SSPAs, low-profile antennas, on-the-move/on-the-pause terminals, and construction and installation of large-scale networks based on BOT contracts. Sale of services includes access to and communication via satellites ("space segment"), installation of equipment, telephone services, internet services, consulting, on-line network monitoring, network maintenance and repair services. The Company sells its products primarily through its direct sales force and indirectly through resellers or system integrators. Sales consummated by the Company's sales force and sales to resellers or system integrators are considered sales to end-users. The Company recognizes revenue when (or as) it satisfies performance obligations by transferring promised products or services to its customers in an amount that reflects the consideration the Company expects to receive. The Company applies the following five steps: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. See Note 2z for additional information. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price (“SSP”) basis. The Company establishes SSP based on management judgment, considering internal factors such as margin objectives, pricing practices and historical sales. Consideration from contracts that is assessed as not being probable of collection is not recognized as revenue until the contract is completed and cash is received. Collectability is re-assessed when there is a significant change in facts or circumstances. The Company’s assessment of collectability considers whether it may limit its exposure to credit risk through its right to stop transferring additional service in the event the customer is delinquent as well as certain contract terms such as down payments that reduce its exposure to credit risk. Revenue from the sale of equipment is recognized at a point in time, once the customer has obtained control over the items purchased. When significant acceptance provisions are included in the arrangement, the Company defer recognition of the revenue until the acceptance occurs. The Company generally does not grant a right of return to its customers. Revenue from periodic services is recognized ratably over the term the services are rendered. Revenue from other services is recognized upon their completion. Revenues from contracts under which the Company provides significant construction to the customer's specifications (mostly governmental projects) are generally recognized over time because of continuous transfer of control to the customer. This continuous transfer of control to the customer is supported by clauses in the contract that allow the customer to unilaterally terminate the contract for convenience, pay the Company for costs incurred plus a reasonable profit and take control of any work in process. The Company generally uses the cost-to-cost measure of progress for its contracts because it best depicts the transfer of control to the customer, which occurs as it incurs costs on the contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred. Costs to fulfill include labor, materials and subcontractors’ costs and other direct and allocated indirect costs. When estimates of total costs to be incurred exceed total estimates of revenue to be earned on the uncompleted contracts, a provision for the entire loss on the contract is recognized in the period the loss is identified. Under the typical payment terms of government fixed-price contracts, the customer pays the Company milestones-based payments. Those payments are based on quantifiable measures of performance or on the achievement of specified events or milestones. Because those payments are due upon completion of those milestones, they may result in revenue recognized in excess of billings and are presented as part of contract assets on the balance sheet. Amounts recognized as revenue and which the Company has unconditional right to receive are classified as trade receivables on the balance sheet. Revenue from products under 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. Deferred revenue and advances from customers are recorded when the Company receives payments from customers before performance obligations have been performed. Deferred revenue is recognized as revenue as (or when) the Company performs the performance obligation under the contract. For information regarding disaggregated revenues, please refer to Note 13. The Company pays sales commissions to sales and marketing and certain management personnel based on their attainment of certain predetermined sales goals. Sales commissions earned by its employees are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions are capitalized and amortized upon recognition of the related revenue, consistently with the transfer to the customer of the goods or services to which they relate. Amortization expenses related to these costs are mostly included in sales and marketing expenses in the accompanying consolidated statements of operations. |
Selling and marketing expenses | n. Selling and marketing expenses: Selling and marketing expenses include shipping expenses in the amounts of $1,303, $1,225 and $1,367 for the years ended December 31, 2018, 2017 and 2016, respectively. Advertising costs are expensed as incurred. Advertising expenses amounted to $247, $204, and $243 for the years ended December 31, 2018, 2017 and 2016, respectively. |
Warranty costs | o. Warranty costs: Generally, the Company provides product assurance warranties for periods between twelve to twenty four months at no extra charge that covers the compliance of the products with agreed-upon specifications. A provision is recorded for estimated warranty costs based on the Company's experience. Warranty expenses amounted to $591, $323 and $704 for the years ended December 31, 2018, 2017 and 2016, respectively. |
Research and development expenses | p. Research and development expenses: Research and development costs are charged to the consolidated statements of income (loss) as incurred and are presented net of government grants. ASC 985, "Software", requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. Based on the Company's product development process, technological feasibility is established upon 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 Company 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 Company 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 $1,426, $1,419 and $1,624 for the years ended December 31, 2018, 2017 and 2016, respectively. |
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 income (loss). The Company recognizes compensation expenses for the value of its awards, based on the straight-line method over the requisite service period of each of the awards. Effective as of January 1, 2017, the Company adopted Accounting Standards Update 2016-09, "Compensation-Stock Compensation (Topic 718)" ("ASU 2016-09") on a modified, retrospective basis. ASU 2016-09 permits entities to make an accounting policy election related to how forfeitures will impact the recognition of compensation cost for stock - based compensation: to estimate the total number of awards for which the requisite service period will not be rendered or to account for forfeitures as they occur. Upon adoption of ASU 2016-09, the Company elected to change its accounting policy to account for forfeitures as they occur. The change was applied on a modified, retrospective basis with a cumulative effect adjustment to retained earnings of $55 (which increased the accumulated deficit) as of January 1, 2017. |
Income taxes | s. Income taxes: The Company 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 Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value if it is more likely than not that a portion or all of the deferred tax assets will not be realized. ASC 740 contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company 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 Company to concentrations of credit risk consist principally of cash and cash equivalents, short-term and long-term restricted cash, restricted cash held by trustees trade receivables and contract assets. The majority of the Company's cash and cash equivalents are invested in dollars with major banks in Israel, the United States and South America. Generally, these cash and cash equivalents may be redeemed upon demand and therefore, management believes that they bear low risk. The majority of the Company's short-term and long-term restricted cash are invested in dollars with major banks in Israel. The Company is generally entitled to receive the restricted cash 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, 2018, restricted cash held by the trustees amounted to $4,372. 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 balance sheet as Restricted cash held by trustees. Trade receivables and contract assets of the Company are mainly derived from sales to major customers located in North, South and Central America, Europe and Asia. The Company 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 Company has determined to be doubtful of collection. As of December 31, 2018 and 2017 the Company has recorded a provision for doubtful accounts in the amounts of $3,202 and $3,896, respectively. The Company has recorded a net expense (income) from bad debts in the amount of ($376), $2,231 and $6,222 for the years ended December 31, 2018, 2017 and 2016, respectively. |
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 balance sheet, as the Company is legally released from severance obligation to employees once the amounts have been deposited, and the Company has no further legal ownership of the amounts deposited. The carrying value for the deposited funds for the Company's employees' severance pay for employment periods prior to the transition date include profits and losses accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to the Israeli Severance Pay Law or labor agreements. Severance pay expenses for the years ended December 31, 2018, 2017 and 2016, amounted to $3,138, $2,819 and $2,577, respectively. 401(k) profit sharing plans: The Company has a number of savings plans in the United States that qualify under Section 401(k) of the current Internal Revenue Code as a "safe harbor" plan. The Company must make a mandatory contribution to the 401(k) plan to satisfy certain nondiscrimination requirements under the Internal Revenue Code. This mandatory contribution is made to all eligible employees. The contribution costs for all the plans were $479, $411 and $357 for the years ended December 31, 2018, 2017 and 2016, respectively. |
Fair value of financial instruments | v. Fair value of financial instruments: The Company 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 Company 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 Company. Unobservable inputs are inputs that reflect the Company'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, contract assets, other current assets, trade payables, accrued expenses and other current liabilities approximate their fair value due to the short-term maturities of such instruments. Based on the borrowing rates currently available to the Company for bank loans with similar terms and maturities, the Company estimates that the carrying value of its long-term debt approximates their fair value. The Company measured the fair value of the forward contracts in accordance with ASC 820 and classified them as Level 2. Forward contracts are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. |
Earnings (loss) per share | w. Earnings (loss) per share: In accordance with ASC 260, "Earnings per Share", basic earnings (loss) per share is computed based on the weighted average number of Ordinary shares outstanding during each period. Diluted earnings (loss) per share is computed based on the weighted average number of Ordinary shares outstanding during each period, plus dilutive potential Ordinary shares considered outstanding during the period. The total weighted average number of shares related to the outstanding options excluded from the calculations of diluted earnings (loss) per share, as they would have been anti-dilutive, was 573,552, 1,627,552 and 2,227,150 for the years ended December 31, 2018, 2017 and 2016, respectively. |
Derivatives and hedging activities | x. 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). The Company entered into forward and cylinder option 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) | y. 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 shareholders' 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 forward contracts and foreign currency translation adjustments. The following tables shows the components of accumulated other comprehensive income (loss), as of December 31, 2018 and 2017: Year ended December 31, 2018 Foreign currency translation adjustments Unrealized gains (losses) on cash flow hedges Total Beginning balance $ (3,217 ) $ 171 $ (3,046 ) Other comprehensive loss before reclassifications (1,845 ) (1,548 ) (3,393 ) Amounts reclassified from accumulated other comprehensive income - 1,059 1,059 Net current-period other comprehensive loss (1,845 ) (489 ) (2,334 ) Ending balance $ (5,062 ) $ (318 ) $ (5,380 ) Year ended December 31, 2017 Foreign currency translation adjustments Unrealized gains (losses) on cash flow hedges Total Beginning balance $ (3,122 ) $ (102 ) $ (3,224 ) Other comprehensive income before reclassifications (95 ) 1,419 1,324 Amounts reclassified from accumulated other comprehensive income - (1,146 ) (1,146 ) Net current-period other comprehensive income (loss) (95 ) 273 178 Ending balance $ (3,217 ) $ 171 $ (3,046 ) |
Recently adopted accounting pronouncements | z. Recently adopted accounting pronouncements: 1. In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (“Topic 606”). The standard replaced the revenue recognition guidance in U.S. GAAP under Topic 605, and was required to be applied retrospectively to each prior period presented, or applied using a modified retrospective method with the cumulative effect recognized in the opening balance of the accumulated deficit during the period of initial application. Subsequently, the FASB issued several additional ASUs related to ASU No. 2014-09, collectively they are referred to as the “new revenue standards”, which became effective for the Company beginning January 1, 2018. On January 1, 2018, the Company adopted Topic 606 using the modified retrospective method for contracts which were not completed as of January 1, 2018. Under the modified retrospective method, the Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of accumulated deficit. This adjustment did not have a material impact on the Company’s consolidated financial statements. The Standard requires the deferral and amortization of “incremental” costs incurred to obtain a contract. The primary contract acquisition costs for the Company are sales commissions. Under Topic 605, the Company expensed sales commissions as incurred while under Topic 606 such costs will be classified as a contract asset and amortized over a period that approximates the timing of revenue recognition on the underlying contracts. The cumulative effect of the changes made to the consolidated balance sheet as of January 1, 2018 for the adoption of Topic 606-10 was as follows: December 31, 2017 Impact of Adoption January 1, 2018 Condensed Consolidated Balance Sheet Other current assets $ 19,415 2,004 $ 21,419 Accrued expenses 75,270 483 75,753 Accumulated deficit $ (702,959 ) 1,521 $ (701,438 ) Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting under Revenue Recognition (“Topic 605”). The Company reclassified an amount of $58,789 from trade receivables to contract assets as of December 31, 2017. The adoption of Topic 606 represents a change in accounting principle that will provide financial statement readers with enhanced revenue recognition disclosures. In accordance with Topic 606, revenue is recognized when obligations under the terms of a contract with the Company’s customer are satisfied; generally, this occurs with the transfer of control of the Company’s products or services. In accordance with Topic 606-10, the disclosure of the impact of adoption on the consolidated balance sheet as of December 31, 2018 was as follows: December 31, 2018 As Reported Impact of Adoption Amounts under Topic 605 Condensed Consolidated Balance Sheet Contract assets $ 47,760 (1,221 ) $ 46,539 Other current assets 26,022 (2,342 ) 23,680 Accrued expenses 67,533 (1,023 ) 66,510 Accumulated deficit $ (683,029 ) (2,540 ) $ (685,569 ) In accordance with Topic 606-10, the disclosure of the impact of adoption on the consolidated statement of operations and cash flows was as follows: Year ended December 31, 2018 As Reported Impact of Adoption Amounts under Topic 605 Condensed Consolidated Statement of Operations Total revenues $ 266,391 (1,221 ) $ 265,170 Cost of revenues 172,354 - 172,354 Gross profit 94,037 (1,221 ) 92,816 Operating expenses 72,753 (202 ) 72,551 Operating profit $ 21,284 (1,019 ) $ 20,265 Condensed Consolidated Statement of Cash Flows Cash flows from operating activities: Net income $ 18,409 (1,019 ) $ 17,390 Increase (decrease) in accrued expenses (7,206 ) (540 ) (6,666 ) Increase (decrease) in other assets and receivables (4,917 ) 338 (4,579 ) Increase (decrease) in contract assets $ 11,029 1,221 $ 12,250 Deferred revenue as of December 31, 2018 and December 31, 2017 was $8,658 and $6,010, respectively, and primarily relates to revenue that is recognized over time for service contracts. The changes in balance are related to the satisfaction or partial satisfaction of these contracts. Approximately $4,145 of the December 31, 2017 balance was recognized as revenue during the year ended December 31, 2018. The balance of deferred revenues approximates the aggregate amount of the billed and collected amount allocated to the unsatisfied performance obligations at the end of reporting period. All of the Company’s performance obligations in contracts with customers, other than large scale governmental projects (expected to be recognized over periods of approximately 13-15 years), principally relate to contracts with a duration of less than one year, as such, the Company is not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. 2. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash”, 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. This ASU is effective for annual and interim periods beginning after December 15, 2017. The Company applied this standard to each prior period presented using the full retrospective transition method, as required by the new standard. December 31, 2018 2017 Cash and cash equivalents $ 67,381 $ 52,957 Restricted cash 32,305 29,288 Restricted cash held by trustees 4,372 4,325 Long term restricted cash 146 187 $ 104,204 $ 86,757 |
Recently issued accounting pronouncements | aa. Recently issued accounting pronouncements: In February 2016, the FASB issued ASU 2016-02, Leases (“Topic 842” or “ASC 842”). The standard requires lessees to recognize almost all leases on the balance sheet as a right-of-use asset and a lease liability and requires leases to be classified as either an operating or a finance type lease. The standard excludes leases of intangible assets or inventory. Leases with a term of 12 months or less will be accounted for in a manner similar to the accounting under existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. ASC 842 supersedes the previous leases standard, ASC 840, "Leases". Topic 842 becomes effective for the Company beginning January 1, 2019. The Company expects that the adoption of the standard will have an impact of approximately $5,600 on its consolidated balance sheet for the recognition of the right-of-use assets and lease liabilities related to the Company's operating leases. The standard is not expected to have a material impact on the Company's results of operations or cash flows. The Company is continuing its assessment, which may identify additional impacts this guidance will have on its consolidated financial statements and disclosures. 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. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which expands the activities that qualify for hedge accounting and simplifies the rules for reporting hedging transactions. The standard is effective for the Company beginning January 1, 2019. Early adoption is permitted. The Company is currently evaluating the expected impact of the standard on its consolidated financial statements. |
Reclassification | ab. Reclassifications: Certain comparative figures have been reclassified to conform to the current year presentation. The reclassification had no effect on previously reported net income or shareholders' equity. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 2 - 10 Office furniture and equipment 3 - 15 Vehicles 4 - 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 follows: Years Technology 7.9 Customer relationships 6.8 Marketing rights and patents 12.1 |
Schedule of Accumulated Other Comprehensive Income, Net | The following tables shows the components of accumulated other comprehensive income (loss), as of December 31, 2018 and 2017: Year ended December 31, 2018 Foreign currency translation adjustments Unrealized gains (losses) on cash flow hedges Total Beginning balance $ (3,217 ) $ 171 $ (3,046 ) Other comprehensive loss before reclassifications (1,845 ) (1,548 ) (3,393 ) Amounts reclassified from accumulated other comprehensive income - 1,059 1,059 Net current-period other comprehensive loss (1,845 ) (489 ) (2,334 ) Ending balance $ (5,062 ) $ (318 ) $ (5,380 ) Year ended December 31, 2017 Foreign currency translation adjustments Unrealized gains (losses) on cash flow hedges Total Beginning balance $ (3,122 ) $ (102 ) $ (3,224 ) Other comprehensive income before reclassifications (95 ) 1,419 1,324 Amounts reclassified from accumulated other comprehensive income - (1,146 ) (1,146 ) Net current-period other comprehensive income (loss) (95 ) 273 178 Ending balance $ (3,217 ) $ 171 $ (3,046 |
Schedule of Cumulative Effects of Applying New Accounting Pronouncement ASU 2014-09 | The cumulative effect of the changes made to the consolidated balance sheet as of January 1, 2018 for the adoption of Topic 606-10 was as follows: December 31, 2017 Impact of Adoption January 1, 2018 Condensed Consolidated Balance Sheet Other current assets $ 19,415 2,004 $ 21,419 Accrued expenses 75,270 483 75,753 Accumulated deficit $ (702,959 ) 1,521 $ (701,438 ) In accordance with Topic 606-10, the disclosure of the impact of adoption on the consolidated balance sheet as of December 31, 2018 was as follows: December 31, 2018 As Reported Impact of Adoption Amounts under Topic 605 Condensed Consolidated Balance Sheet Contract assets $ 47,760 (1,221 ) $ 46,539 Other current assets 26,022 (2,342 ) 23,680 Accrued expenses 67,533 (1,023 ) 66,510 Accumulated deficit $ (683,029 ) (2,540 ) $ (685,569 ) In accordance with Topic 606-10, the disclosure of the impact of adoption on the consolidated statement of operations and cash flows was as follows: Year ended December 31, 2018 As Reported Impact of Adoption Amounts under Topic 605 Condensed Consolidated Statement of Operations Total revenues $ 266,391 (1,221 ) $ 265,170 Cost of revenues 172,354 - 172,354 Gross profit 94,037 (1,221 ) 92,816 Operating expenses 72,753 (202 ) 72,551 Operating profit $ 21,284 (1,019 ) $ 20,265 Condensed Consolidated Statement of Cash Flows Cash flows from operating activities: Net income $ 18,409 (1,019 ) $ 17,390 Increase (decrease) in accrued expenses (7,206 ) (540 ) (6,666 ) Increase (decrease) in other assets and receivables (4,917 ) 338 (4,579 ) Increase (decrease) in contract assets $ 11,029 1,221 $ 12,250 |
Schedule of Short-term and Long-term Restricted Cash | The Company applied this standard to each prior period presented using the full retrospective transition method, as required by the new standard. December 31, 2018 2017 Cash and cash equivalents $ 67,381 $ 52,957 Restricted cash 32,305 29,288 Restricted cash held by trustees 4,372 4,325 Long term restricted cash 146 187 $ 104,204 $ 86,757 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories are comprised of the following: December 31, 2018 2017 Raw materials, parts and supplies $ 5,885 $ 7,367 Work in progress 10,548 10,300 Finished products 4,676 11,186 $ 21,109 $ 28,853 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net consisted of the following: December 31, 2018 2017 Cost: Buildings and land $ 92,025 $ 90,914 Computers, software and electronic equipment 50,390 45,119 Network equipment 40,502 40,016 Office furniture and equipment 5,317 5,387 Vehicles 324 390 Leasehold improvements 3,556 2,522 192,114 184,348 Accumulated depreciation 107,711 102,102 Depreciated cost $ 84,403 $ 82,246 *) The Company recorded a reduction of $732 and $46,051 to the cost and accumulated depreciation of fully depreciated equipment and leasehold improvements that are no longer in use for the years ended December 31, 2018 and 2017, respectively. |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets, net consisted of the following: December 31, 2018 2017 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 41,281 38,231 Customer relationships 4,466 4,466 Marketing rights and patents 2,210 1,985 47,957 44,682 $ 2,434 $ 5,709 |
Schedule of Estimated Amortization Expenses | Estimated amortization expenses for the following years is as follows: Year ending December 31, 2019 $ 911 2020 441 2021 431 2022 321 2023 and thereafter 330 $ 2,434 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
GOODWILL [Abstract] | |
Schedule of Goodwill | December 31, 2018 2017 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 segment. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Operating Leases Segment [Line Items] | |
Schedule of Future Minimum Payments Under Operating Leases | Minimum lease commitments under non-cancelable operating lease agreements as of December 31, 2018, are as follows: Year ending December 31, 2019 $ 1,973 2020 877 2021 593 2022 529 2023 409 $ 4,381 |
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, 2018, are as follows: Year ending December 31, 2019 $ 8,367 2020 6,016 2021 1,587 $ 15,970 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 balance sheet: Fair value of derivative instruments December 31, 2018 2017 Derivative: Foreign exchange forward contracts / options (1) Other current assets (liabilities) $ (320 ) $ 170 (1) 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 flow 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. |
SHAREHOLDERS EQUITY (Tables)
SHAREHOLDERS EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018, 2017 and 2016 was estimated using the following weighted average assumptions: Year ended December 31, 2018 2017 2016 Risk free interest 2.48%-2.82% 1.66%-2.00% 1.08%-1.62% Dividend yields 0% 0% 0% Volatility 33% 33% 33%-35% Expected term (in years) 4.3-4.39 4.52 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, 2018 and changes during the year then ended 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, 2018 2,808,000 $ 5.2 Granted 740,000 $ 8.2 Exercised (438,840 ) $ 4.9 Forfeited (225,750 ) $ 5.3 Outstanding at December 31, 2018 2,883,410 $ 6.0 3.7 $ 9,087 Exercisable at December 31, 2018 1,209,910 $ 5.2 2.6 $ 4,804 |
Schedule of Stock Option Activity by Exercise Price | The outstanding and exercisable options granted to employees under the 2008 Plan as of December 31, 2018, 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 2018 life (years) price 2018 options $3.77-5.63 1,773,410 3.1 $ 5.0 1,060,660 5.0 $5.86-8.14 925,000 4.4 $ 7.3 149,250 6.7 $9.34 185,000 5.6 $ 9.3 - 2,883,410 3.7 $ 6.0 1,209,910 5.2 |
TAXES ON INCOME (Tables)
TAXES ON INCOME (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Income Taxes | Significant components of the Company's deferred tax liabilities and assets are as follows: December 31, 2018 2017 1. Provided in respect of the following: Carryforward tax losses and credits *) $ 41,561 $ 38,918 Property, equipment and intangibles 904 1,484 Deferred revenues 823 2,224 Research and development costs 804 1,716 Other 7,202 7,435 Gross deferred tax assets 51,294 51,777 Valuation allowance (40,943 ) (44,882 ) Net deferred tax assets 10,351 6,895 Gross deferred tax liabilities Property, equipment and intangibles (3,208 ) (3,098 ) Subsidy income (3,574 ) (3,093 ) Other (22 ) (829 ) Gross deferred tax liabilities (6,804 ) (7,020 ) Net deferred tax assets (liabilities) $ 3,547 $ (125 ) *) The amounts are shown after reduction for unrecognized tax benefits of $ 1,989 as of December 31, 2018. |
Schedule of Deferred Taxes Included in Consolidated Balance Sheets | 2. Deferred taxes are included in the consolidated balance sheets, as follows: Long term assets $ 4,127 $ 861 Long term liabilities $ (580 ) $ (986 |
Reconciliation of Statutory Tax Rate to Effective Tax Rate | Reconciling items between the statutory tax rate of the Company and the actual taxes on income (tax benefit): Year ended December 31, 2018 2017 2016 Income (loss) before taxes on income from continuing operations , as reported in the consolidated statements of income (loss) $ 16,986 $ 6,554 $ (4,088 ) Statutory tax rate 23.0 % 24.0 % 25.0 % Theoretical taxes on income (tax benefit) $ 3,907 $ 1,573 $ (1,022 ) Currency differences 3,089 (3,225 ) (2,174 ) Tax adjustment in respect of different tax rates and "Benefitted Enterprise" status 345 2,849 (5,580 ) Changes in valuation allowance (3,939 ) (3,343 ) 11,832 Loss from liquidation of subsidiaries *) (8,930 ) - - Forfeiture of carryforward tax losses - 622 261 Exempt subsidy income (loss) 394 (2,646 ) (4,224 ) U.S. Tax Cuts and Jobs Acts effect 56 2,138 - Nondeductible expenses and other differences 3,655 1,785 2,159 $ (1,423 ) $ (247 ) $ 1,252 *) In 2018 the Company’s Dutch subsidiary liquidated some of its subsidiaries and consequently recognized losses for tax purposes. These losses can be offset from taxable income in future periods under the tax regulations in the Netherlands. The Company does not expect these losses to be realized in the foreseeable future and respectively provided a full valuation allowance. |
Schedule of Taxes on Income | Taxes on income (tax benefit) included in the consolidated statements of income (loss): Year ended December 31, 2018 2017 2016 Current $ 2,249 $ (436 ) $ 1,248 Deferred (3,672 ) 189 4 $ (1,423 ) $ (247 ) $ 1,252 Domestic $ 610 $ 768 $ 555 Foreign (2,033 ) (1,015 ) 697 $ (1,423 ) $ (247 ) $ 1,252 |
Schedule of Income (Loss) Before Taxes on Income | Income (loss) before taxes on income (tax benefit) from continuing operations: Year ended December 31, 2018 2017 2016 Domestic $ 6,596 $ 1,289 $ (8,056 ) Foreign 10,390 5,265 3,968 $ 16,986 $ 6,554 $ (4,088 ) |
Reconciliation of Beginning and Ending Balances of Unrecognized Tax Benefits | A reconciliation of the beginning and ending gross amount of unrecognized tax benefits is as follows: December 31, 2018 2017 Balance at beginning of year $ 129 $ 776 Settlements with tax authorities - (718 ) Reductions for prior years' tax position - (58 ) Additions for prior years' tax position 1,809 129 Additions for current years' tax position 296 - Balance at the end of year *) $ 2,234 $ 129 *) The amount for the year ended December 31, 2018 includes $1,989 of unrecognized tax benefits which are presented as a reduction from deferred tax assets, see Note 10d. |
SUPPLEMENTARY CONSOLIDATED BA_2
SUPPLEMENTARY CONSOLIDATED BALANCE SHEET INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SUPPLEMENTARY BALANCE SHEET INFORMATION [Abstract] | |
Schedule of Other Current Assets | Other current assets: December 31, 2018 2017 Governmental authorities $ 6,264 $ 5,196 Prepaid expenses 6,612 4,220 Deferred charges 9,446 7,100 Advance payments to suppliers 2,651 1,136 Other 1,049 1,763 $ 26,022 $ 19,415 |
Schedule of Other Current Liabilities | Other current liabilities: December 31, 2018 2017 Payroll and related employee accruals $ 13,229 $ 14,644 Derivative instruments 320 - Governmental authorities 506 2,206 Other 533 3,194 $ 14,588 $ 20,044 |
Schedule of Long-Term Loans | Long-term loans: Interest rate for December 31, 2018 2017 2018 2017 Linkage % Maturity Loans from banks: (a) U.S. dollars 4.77 4.77 2021 $ 12,000 $ 16,000 (b) Euro EURIBOR +2.75 EURIBOR +2.75 2020 556 1,061 12,556 17,061 Less - current maturities 4,458 4,479 $ 8,098 $ 12,582 (a) The Company entered into a loan agreement with an Israeli bank 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. |
Schedule of Long-Term Debt Maturities | Long-term debt maturities for loans after December 31, 2018, are as follows: Year ending December 31, 2020 $ 4,098 2021 4,000 $ 8,098 |
Schedule of Other Long-Term Liabilities | Other long-term liabilities: December 31, 2018 2017 Long-term tax accrual $ - $ 22 Long-term deferred taxes 580 986 $ 580 $ 1,008 |
SELECTED CONSOLIDATED STATEME_2
SELECTED CONSOLIDATED STATEMENTS OF INCOME (LOSS) DATA (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SELECTED STATEMENTS OF OPERATIONS DATA [Abstract] | |
Reconciliation of Allowance for Doubtful Accounts | Financial expenses, net: Year ended December 31, 2018 2017 2016 Income: Interest on cash equivalents, bank deposits and restricted cash $ 981 $ 447 $ 1,027 Other 29 355 81 1,010 802 1,108 Expenses: Interest with respect to bank credit, loans and other 614 844 1,098 Exchange rate differences, net 1,074 226 452 Bank charges including guarantees 3,560 3,857 4,323 Other 60 182 78 5,308 5,109 5,951 Total financial expenses, net $ 4,298 $ 4,307 $ 4,843 |
Schedule of Earnings (loss) per share | The following table sets forth the computation of basic and diluted net earnings (loss) per share: 1. Numerator: Year ended December 31, 2018 2017 2016 Numerator for basic and diluted earnings (loss) per share - Net income (loss) available to holders of Ordinary shares: $ 18,409 $ 6,801 $ (5,340 ) 2. Denominator (number of shares in thousands): Denominator for basic net loss per share - Weighted average number of shares 54,927 54,681 51,970 Add-employee stock options 826 171 * ) - Denominator for diluted net earnings (loss) per share - adjusted weighted average shares assuming exercise of options 55,753 54,852 51,970 *) Anti-dilutive effect. |
CUSTOMERS, GEOGRAPHIC AND SEG_2
CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Financial Data for Reportable Operating Segments | Financial data relating to reportable operating segments: Year ended December 31, 2018 Fixed Networks Mobility Solutions Terrestrial Infrastructure Projects Total Revenues $ 144,208 $ 97,180 $ 25,003 $ 266,391 Cost of revenues 93,745 47,995 30,614 172,354 Gross profit 50,463 49,185 (5,611 ) 94,037 Research and development, net 11,764 21,259 - 33,023 Selling and marketing 16,106 6,421 179 22,706 General and administrative 11,302 4,436 1,286 17,024 Operating income (loss) 11,291 17,069 (7,076 ) 21,284 Financial expenses, net 4,298 Income before taxes 16,986 Taxes on income (benefit) (1,423 ) Net income 18,409 Depreciation and amortization expenses $ 6,811 $ 6,128 $ 210 $ 13,149 Year ended December 31, 2017 Fixed Networks Mobility Solutions Terrestrial Infrastructure Projects Total Revenues $ 116,105 $ 88,397 $ 78,254 $ 282,756 Cost of revenues 81,920 46,493 71,848 200,261 Gross profit 34,185 41,904 6,406 82,495 Research and development, net 12,172 15,842 - 28,014 Selling and marketing 17,782 5,782 195 23,759 General and administrative 10,987 6,326 2,548 19,861 Operating income (loss) (6,756 ) 13,954 3,663 10,861 Financial expenses, net 4,307 Income before taxes 6,554 Taxes on income (benefit) (247 ) Net income 6,801 Depreciation and amortization expenses $ 5,046 $ 7,902 $ 192 $ 13,140 Year ended December 31, 2016 Fixed Networks Mobility Solutions Terrestrial Infrastructure Projects Total Revenues $ 124,930 $ 62,911 $ 91,710 $ 279,551 Cost of revenues 84,986 40,962 78,113 204,061 Gross profit 39,944 21,949 13,597 75,490 Research and development, net 12,599 12,254 - 24,853 Selling and marketing 17,710 5,483 218 23,411 General and administrative 13,750 9,138 3,583 26,471 Operating income (loss) (4,115 ) (4,926 ) 9,796 755 Financial expenses, net (4,843 ) Loss before taxes (4,088 ) Taxes on income 1,252 Loss (5,340 ) Depreciation and amortization expenses $ 5,394 $ 7,530 $ 184 $ 13,108 |
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, 2018 2017 2016 Latin America $ 94,707 $ 132,134 $ 143,491 Asia Pacific 39,381 34,586 47,094 North America 97,122 73,921 54,728 Europe, the Middle East and Africa 35,181 42,115 34,238 $ 266,391 $ 282,756 $ 279,551 |
Schedule of Long-Lived Assets by Geographic Area | The Company's long-lived assets are located as follows: Property and Equipment, net: December 31, 2018 2017 Israel $ 64,018 $ 62,606 Latin America 4,564 5,000 United States 5,620 3,733 Europe 9,117 9,426 Other 1,084 1,481 $ 84,403 $ 82,246 |
Schedule of Revenues from Major Customers | The table below represents the revenues from major customers: Year ended December 31, 2018 2017 2016 Customer A 10 % 28 % 34 % Customer B 15 % * ) * ) Customer C 13 % * ) * ) *) Less than 10% |
RELATED PARTY BALANCES AND TR_2
RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of transactions with related parties | T Year ended December 31, 2018 2017 2016 Cost of revenues of products $ 764 $ 3,770 $ 12,280 Research and development $ 346 $ 61 $ - Purchase of property and equipment and inventory $ 101 $ 100 $ - |
Schedule of balances with related parties | B December 31, 2018 2017 Advance payments $ 144 $ - Trade payables $ 125 $ 1,220 Accrued expenses $ 1,797 $ 2,241 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Accounting Policies [Line Items] | ||||
Period of projected net cash flows | 5 years | |||
Deferred revenue current | $ 8,658 | $ 6,010 | ||
Deferred revenue recognized | 4,145 | |||
Advertising expenses | 247 | 204 | $ 243 | |
Research and development expenses | 1,426 | 1,419 | $ 1,624 | |
Restricted cash held by trustees | $ 4,372 | $ 4,325 | ||
The total weighted average number of shares related to the outstanding options excluded from the calculations of diluted loss per share | 573,552 | 1,627,552 | 2,227,150 | |
Warranty expenses | $ 591 | $ 323 | $ 704 | |
Increase decrease in accumulated deficit | 55 | |||
Bad debt expense | 376 | 2,231 | 6,222 | |
Contract assets | 47,760 | 58,789 | ||
Provision for doubtful accounts | $ 3,202 | 3,896 | ||
Network equipment [Member] | Minimum [Member] | ||||
Disclosure Of Accounting Policies [Line Items] | ||||
Property and equipment, estimated useful life | 2 years | |||
Network equipment [Member] | Maximum [Member] | ||||
Disclosure Of Accounting Policies [Line Items] | ||||
Property and equipment, estimated useful life | 5 years | |||
Shipping Expenses [Member ] | ||||
Disclosure Of Accounting Policies [Line Items] | ||||
Shipping expenses | $ 1,303 | $ 1,225 | $ 1,367 | |
Short-term Debt [Member] | ||||
Disclosure Of Accounting Policies [Line Items] | ||||
Restricted cash weighted average interest rate | 2.36% | 1.23% | ||
Long-term Debt [Member] | ||||
Disclosure Of Accounting Policies [Line Items] | ||||
Restricted cash weighted average interest rate | 6.54% | 7.94% |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Property and Equipment Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
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 | 2 years |
Computers, software and electronic equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 10 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 | 15 years |
Vehicles [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 4 years |
Vehicles [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 7 years |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Intangible Assets Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period | 7 years 10 months 25 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 POLICI_7
SIGNIFICANT ACCOUNTING POLICIES (Employee Related Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Severance expenses | $ 3,138 | $ 2,819 | $ 2,577 |
Contributions to employee benefits plan | $ 479 | $ 411 | $ 357 |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Accumulated Other Comprehensive Income, Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ (3,046) | $ (3,224) |
Other comprehensive income (loss) before reclassifications | (3,393) | 1,324 |
Amounts reclassified from accumulated other comprehensive income | 1,059 | (1,146) |
Net current-period other comprehensive income (loss) | (2,334) | 178 |
Ending balance | (5,380) | (3,046) |
Foreign currency translation adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (3,217) | (3,122) |
Other comprehensive income (loss) before reclassifications | (1,845) | (95) |
Amounts reclassified from accumulated other comprehensive income | ||
Net current-period other comprehensive income (loss) | (1,845) | (95) |
Ending balance | (5,062) | (3,217) |
Unrealized gains (losses) on cash flow hedges [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | 171 | (102) |
Other comprehensive income (loss) before reclassifications | (1,548) | 1,419 |
Amounts reclassified from accumulated other comprehensive income | 1,059 | (1,146) |
Net current-period other comprehensive income (loss) | (489) | 273 |
Ending balance | $ (318) | $ 171 |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES (Cumulative Balance Sheet Adjustments - Adoption of ASC No. 606) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract assets | $ 47,760 | $ 58,789 |
Other current assets | 26,022 | 19,415 |
Accrued expenses | 67,533 | 75,270 |
Accumulated deficit | (683,029) | (702,959) |
Impact of Adoption [Member] | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract assets | (1,221) | |
Other current assets | (2,342) | 2,004 |
Accrued expenses | (1,023) | 483 |
Accumulated deficit | (2,540) | 1,521 |
Amounts under Topic 605 [Member] | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract assets | 46,539 | |
Other current assets | 23,680 | |
Accrued expenses | 66,510 | |
Accumulated deficit | $ (685,569) | |
Amounts under Topic 606 [Member] | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Other current assets | 21,419 | |
Accrued expenses | 75,753 | |
Accumulated deficit | $ (701,438) |
SIGNIFICANT ACCOUNTING POLIC_10
SIGNIFICANT ACCOUNTING POLICIES (Cumulative Statement of Operations Adjustments - Adoption of ASC No. 606) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Total revenues | $ 266,391 | $ 282,756 | $ 279,551 |
Cost of revenues | 172,354 | 200,261 | 204,061 |
Gross profit | 94,037 | 82,495 | 75,490 |
Operating expenses | 72,753 | 71,634 | 74,735 |
Operating profit | 21,284 | $ 10,861 | $ 755 |
Impact of Adoption [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Total revenues | (1,221) | ||
Cost of revenues | |||
Gross profit | (1,221) | ||
Operating expenses | (202) | ||
Operating profit | (1,019) | ||
Amounts under Topic 606 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Total revenues | 265,170 | ||
Cost of revenues | 172,354 | ||
Gross profit | 92,816 | ||
Operating expenses | 72,551 | ||
Operating profit | $ 20,265 |
SIGNIFICANT ACCOUNTING POLIC_11
SIGNIFICANT ACCOUNTING POLICIES (Cumulative Statement of Cash Flows Adjustments - Adoption of ASC No. 606) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 18,409 | $ 6,801 | $ (5,340) |
Increase (decrease) in accrued expenses | (7,206) | 19,633 | 30,149 |
Increase in other assets and receivables | (4,917) | (9,147) | (2,966) |
Decrease (increase) in contract assets | 11,029 | $ (17,076) | $ (41,713) |
Impact of Adoption [Member] | |||
Cash flows from operating activities: | |||
Net income | (1,019) | ||
Increase (decrease) in accrued expenses | (540) | ||
Increase in other assets and receivables | 338 | ||
Decrease (increase) in contract assets | 1,221 | ||
Amounts under Topic 606 [Member] | |||
Cash flows from operating activities: | |||
Net income | 17,390 | ||
Increase (decrease) in accrued expenses | (6,666) | ||
Increase in other assets and receivables | (4,579) | ||
Decrease (increase) in contract assets | $ 12,250 |
SIGNIFICANT ACCOUNTING POLIC_12
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Short-term and Long-term Restricted cash) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 67,381 | $ 52,957 | ||
Restricted cash | 32,305 | 29,288 | ||
Restricted cash held by trustees | 4,372 | 4,325 | ||
Long term Restricted cash | 146 | 187 | ||
Total Short-term and long-term restricted cash | $ 104,204 | $ 86,757 | $ 111,633 | $ 127,917 |
INVENTORIES (Narrative) (Detail
INVENTORIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |||
Inventory write-offs | $ 6,354 | $ 3,270 | $ 4,833 |
INVENTORIES (Schedule of Invent
INVENTORIES (Schedule of Inventory) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials, parts and supplies | $ 5,885 | $ 7,367 |
Work in process | 10,548 | 10,300 |
Finished products | 4,676 | 11,186 |
Inventory, Net | $ 21,109 | $ 28,853 |
PROPERTY AND EQUIPMENT, NET (Sc
PROPERTY AND EQUIPMENT, NET (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 192,114 | $ 184,348 |
Accumulated depreciation | 107,711 | 102,102 |
Depreciation cost | 84,403 | 82,246 |
Buildings And Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 92,025 | 90,914 |
Computers, software and electronic equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 50,390 | 45,119 |
Network Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 40,502 | 40,016 |
Office furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 5,317 | 5,387 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 324 | 390 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 3,556 | $ 2,522 |
PROPERTY AND EQUIPMENT, NET (Na
PROPERTY AND EQUIPMENT, NET (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expenses | $ 9,874 | $ 7,465 | $ 7,337 |
Reduction to fully depreciated equipment and leasehold improvements that are no longer in use | $ 732 | $ 46,051 |
INTANGIBLE ASSETS, NET (Narrati
INTANGIBLE ASSETS, NET (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expenses | $ 3,275 | $ 5,675 | $ 5,771 |
INTANGIBLE ASSETS, NET (Schedul
INTANGIBLE ASSETS, NET (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Original amounts | $ 50,391 | $ 50,391 |
Accumulated amortization | 47,957 | 44,682 |
Amortized cost | 2,434 | 5,709 |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original amounts | 42,504 | 42,504 |
Accumulated amortization | 41,281 | 38,231 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original amounts | 4,466 | 4,466 |
Accumulated amortization | 4,466 | 4,466 |
Marketing rights and patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original amounts | 3,421 | 3,421 |
Accumulated amortization | $ 2,210 | $ 1,985 |
INTANGIBLE ASSETS, NET (Sched_2
INTANGIBLE ASSETS, NET (Schedule of Estimated Amortization Expenses) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2019 | $ 911 | |
2020 | 441 | |
2021 | 431 | |
2022 | 321 | |
2023 and thereafter | 330 | |
Amortized cost | $ 2,434 | $ 5,709 |
GOODWILL (Details)
GOODWILL (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
GOODWILL [Abstract] | |||
Goodwill | [1] | $ 105,647 | $ 105,647 |
Accumulated impairment losses | (62,179) | (62,179) | |
Goodwill net | $ 43,468 | $ 43,468 | |
[1] | The carrying amount of the goodwill is associated with the Mobility Segment. |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Oct. 31, 2017 | |
Guarantor Obligations [Line Items] | ||||
Rent expenses | $ 2,578 | $ 2,599 | $ 2,568 | |
Outstanding inventory purchase commitments | 18,418 | 22,309 | ||
Inventory purchase commitments, sole or limited suppliers | 6,939 | 9,235 | ||
Amount of claim, including interest, penalties and legal fees | 9,000 | |||
Principal Amount of Claim | 1,000 | $ 6,600 | ||
Aggregate amount of guarantees | 149,523 | |||
Restricted cash collateral | 32,451 | |||
Loss on inventory recognized from adjustments to future purchase commitments | 1,448 | |||
Amonunt of claim | 7,900 | |||
Peru [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Aggregate amount of guarantees | $ 136,003 | |||
OCS [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Percentage of amount funded for research and development projects | 100.00% | |||
Accrued royalties | $ 1,408 | |||
Royalties paid | $ 20 | |||
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 | $ 253 | |||
Spacenet Inc. [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Service expenses | $ 12,771 | $ 11,184 | $ 10,278 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Schedule of Future Minimum Payments Under Operating Leases) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 1,973 |
2020 | 877 |
2021 | 593 |
2022 | 529 |
2023 | 409 |
Lease Commitments | $ 4,381 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES (Schedule of Future Minimum Payments Under Operating Leases for Space Segment Services) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 8,367 |
2020 | 6,016 |
2021 | 1,587 |
Gross space segments services | $ 15,970 |
DERIVATIVE INSTRUMENTS (Schedul
DERIVATIVE INSTRUMENTS (Schedule of Fair Value of Derivative Instruments) (Details) - Foreign Exchange [Member] - Forward Contracts [Member] - Other current assets (liabilities) [Member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | |||
Fair value of derivative instruments, assets | [1] | $ 170 | |
Fair value of derivative instruments, liabilities | [1] | $ (320) | |
[1] | 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 flow 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. |
DERIVATIVE INSTRUMENTS (Sched_2
DERIVATIVE INSTRUMENTS (Schedule of Net Income (Loss) Related to Effective Portion of Hedging Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in income related to the effective portion of its hedging instruments | $ (1,056) | $ 1,114 | $ 393 |
Derivative, Notional Amount | $ 27,153 | $ 16,007 |
SHAREHOLDERS EQUITY (Share Capi
SHAREHOLDERS EQUITY (Share Capital) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 18, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Class of Stock [Line Items] | |||||
Proceeds from rights offering | $ 35,085 | ||||
Subsequent Event [Member] | |||||
Class of Stock [Line Items] | |||||
Cash dividend declare per share | $ 0.45 | ||||
Dividend payable | $ 25,000 | ||||
Dividend payable to be paid date | Apr. 11, 2019 | ||||
Dividend payable record date | Mar. 29, 2019 | ||||
Second Anniversary [Member] | |||||
Class of Stock [Line Items] | |||||
Vested percentage | 50.00% | ||||
Third and Fourth Anniversary [Member] | |||||
Class of Stock [Line Items] | |||||
Vested percentage | 25.00% | ||||
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 |
SHAREHOLDERS EQUITY (Descriptio
SHAREHOLDERS EQUITY (Description of Plans) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2010 | 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 | 5,104,000 | ||
Shares available for grant | 128,888 | 6,104,000 | 1,000,000 |
SHAREHOLDERS EQUITY (Schedule o
SHAREHOLDERS EQUITY (Schedule of Assumptions Used to Estimate Fair Value) (Details) - Employee [Member] | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yields | 0.00% | 0.00% | 0.00% |
Volatility | 33.00% | 33.00% | |
Expected term (in years) | 4 years 6 months 7 days | 4 years 9 months 18 days | |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest | 2.48% | 1.66% | 1.08% |
Volatility | 33.00% | ||
Expected term (in years) | 4 years 3 months 19 days | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest | 2.82% | 2.00% | 1.62% |
Volatility | 35.00% | ||
Expected term (in years) | 4 years 4 months 20 days |
SHAREHOLDERS EQUITY (Schedule_2
SHAREHOLDERS EQUITY (Schedule of Stock Option Activity) (Details) - Employee [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Number of options | |
Outstanding at beginning of year | shares | 2,808,000 |
Granted | shares | 740,000 |
Exercised | shares | (438,840) |
Forfeited | shares | (225,750) |
Outstanding at end of year | shares | 2,883,410 |
Exerciable at end of year | shares | 1,209,910 |
Weighted-average exercise price | |
Outstanding at beginning of year | $ / shares | $ 5.2 |
Granted | $ / shares | 8.2 |
Exercised | $ / shares | 4.9 |
Forfeited | $ / shares | 5.3 |
Outstanding at end of year | $ / shares | 6 |
Exercisable at end of year | $ / shares | $ 5.2 |
Weighted-average remaining contractual term | |
Outstanding | 3 years 8 months 12 days |
Exercisable at December 31, 2018 | 2 years 7 months 6 days |
Aggregate intrinsic value | |
Outstanding at December 31, 2018 | $ | $ 9,087 |
Exercisable at December 31, 2018 | $ | $ 4,804 |
SHAREHOLDERS EQUITY (Options Gr
SHAREHOLDERS EQUITY (Options Granted to Employees) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Intrinsic value of options exercised during the period | $ | $ 1,789 |
Employee [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average fair value of stock options granted | $ / shares | $ 2.3 |
SHAREHOLDERS EQUITY (Schedule_3
SHAREHOLDERS EQUITY (Schedule of Stock Option Activity by Exercise Price) (Details) - Employee [Member] | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding as of December 31, 2018 | shares | 2,883,410 |
Options outstanding, Weighted average remaining contractual life (years) | 3 years 8 months 12 days |
Options outstanding, Weighted average exercise price | $ 6 |
Options exercisable as of December 31, 2018 | shares | 1,209,910 |
Options exercisable, Weighted average exercise price of exercisable options | $ 5.2 |
$3.77-5.63 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price, lower limit | 3.77 |
Exercise Price, upper limit | $ 5.63 |
Options outstanding as of December 31, 2018 | shares | 1,773,410 |
Options outstanding, Weighted average remaining contractual life (years) | 3 years 1 month 6 days |
Options outstanding, Weighted average exercise price | $ 5 |
Options exercisable as of December 31, 2018 | shares | 1,060,660 |
Options exercisable, Weighted average exercise price of exercisable options | $ 5 |
$5.86-8.14 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price, lower limit | 5.86 |
Exercise Price, upper limit | $ 8.14 |
Options outstanding as of December 31, 2018 | shares | 925,000 |
Options outstanding, Weighted average remaining contractual life (years) | 4 years 4 months 24 days |
Options outstanding, Weighted average exercise price | $ 7.3 |
Options exercisable as of December 31, 2018 | shares | 149,250 |
Options exercisable, Weighted average exercise price of exercisable options | $ 6.7 |
$9.34 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price, upper limit | $ 9.34 |
Options outstanding as of December 31, 2018 | shares | 185,000 |
Options outstanding, Weighted average remaining contractual life (years) | 5 years 7 months 6 days |
Options outstanding, Weighted average exercise price | $ 9.3 |
Options exercisable as of December 31, 2018 | shares |
SHAREHOLDERS EQUITY (Additional
SHAREHOLDERS EQUITY (Additional Stock-Based Compensation Data) (Details) - Employee [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized share-based compensation expense, employees | $ 2,254 |
Compensation costs weighted average period to be recognized | 2 years 9 months 11 days |
TAXES ON INCOME (Narrative) (De
TAXES ON INCOME (Narrative) (Details) - USD ($) $ in Thousands | Jan. 05, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2013 |
Tax Credit Carryforward [Line Items] | ||||||
Statutory tax rate | 23.00% | 24.00% | 25.00% | |||
Corporate statutory tax rate on 2018 | 23.00% | |||||
Duration of tax benefits limitation, option one minimum | 2 years | |||||
Uniform tax rate | 16.00% | |||||
Withholding tax | 20.00% | |||||
Tax rate for preferred enterprises | 16.00% | |||||
Undistributed earnings | $ 3,134 | |||||
Unrecognized deferred tax liability | 398 | |||||
Unrecognized tax benefits, accrued penalties and interest | 193 | $ 107 | ||||
Penalties and interest expense | $ 86 | $ 197 | ||||
Additional period | 12 years | |||||
Approved Enterprise [Member] | ||||||
Tax Credit Carryforward [Line Items] | ||||||
Percentage of accrued devidend distributed from taxable income | 15.00% | |||||
Benefitted Enterprise [Member] | ||||||
Tax Credit Carryforward [Line Items] | ||||||
Percentage of accrued devidend distributed from taxable income | 15.00% | |||||
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] | ||||||
Statutory tax rate for next fiscal year | 7.50% | |||||
Uniform tax rate | 9.00% | 7.00% | ||||
TCJA [Member] | Minimum [Member] | ||||||
Tax Credit Carryforward [Line Items] | ||||||
Statutory tax rate | 21.00% | |||||
TCJA [Member] | Maximum [Member] | ||||||
Tax Credit Carryforward [Line Items] | ||||||
Statutory tax rate | 35.00% | |||||
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | |||
Changes in valuation allowance | $ 3,939 | $ 3,343 | $ (11,832) |
Israeli [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 92,000 | ||
United States [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 11,400 | ||
Operating loss carryforwards utilization period | 20 years | ||
R&D credits carryforwards | $ 5,700 | ||
Europe [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 41,400 | ||
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 | 18,900 | ||
Latin America [Member] | Carryforward Utilization Period - Indefinitely [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 11,100 | ||
FederalTax [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 8,600 |
TAXES ON INCOME (Schedule of De
TAXES ON INCOME (Schedule of Deferred Income Taxes) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Carryforward tax losses and credits | [1] | $ 41,561 | $ 38,918 |
Property, equipment and intangibles | 904 | 1,484 | |
Deferred revenues | 823 | 2,224 | |
Research and development costs | 804 | 1,716 | |
Other | 7,202 | 7,435 | |
Gross deferred tax assets | 51,294 | 51,777 | |
Valuation allowance | (40,943) | (44,882) | |
Net deferred tax assets | 10,351 | 6,895 | |
Property, equipment and intangibles | (3,208) | (3,098) | |
Subsidy income | (3,574) | (3,093) | |
Other | (22) | (829) | |
Gross deferred tax liabilities | (6,804) | (7,020) | |
Net deferred tax assets (liabilities) | $ 3,547 | $ (125) | |
[1] | The amounts are shown after reduction for unrecognized tax benefits of $ 1,989 as of December 31, 2018. |
TAXES ON INCOME (Schedule of _2
TAXES ON INCOME (Schedule of Deferred Taxes Included in Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred taxes are included in the consolidated balance sheets, as follows: | ||
Long term assets | $ 4,127 | $ 861 |
Long term liabilities | $ (580) | $ (986) |
TAXES ON INCOME (Reconciliation
TAXES ON INCOME (Reconciliation of Statutory Tax Rate to Effective Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income Tax Disclosure [Abstract] | ||||
Income (loss) before taxes on income from continuing operations, as reported in the consolidated statements of income (loss) | $ 16,986 | $ 6,554 | $ (4,088) | |
Statutory tax rate | 23.00% | 24.00% | 25.00% | |
Theoretical taxes on income (tax benefit) | $ 3,907 | $ 1,573 | $ (1,022) | |
Currency differences | 3,089 | (3,225) | (2,174) | |
Tax adjustment in respect of different tax rates and "Benefitted Enterprise" status | 345 | 2,849 | (5,580) | |
Changes in valuation allowance | (3,939) | (3,343) | 11,832 | |
Loss from liquidation of subsidiaries | [1] | (8,930) | ||
Forfeiture of carryforward tax losses | 622 | 261 | ||
Exempt subsidy income (loss) | 394 | (2,646) | (4,224) | |
U.S. Tax Cuts and Jobs Acts effect | 56 | 2,138 | ||
Nondeductible expenses and other differences | 3,655 | 1,785 | 2,159 | |
Tax benefit | $ (1,423) | $ (247) | $ 1,252 | |
[1] | In 2018 the Company's Dutch subsidiary liquidated some of its subsidiaries and consequently recognized losses for tax purposes. These losses can be offset from taxable income in future periods under the tax regulations in the Netherlands. The Company does not expect these losses to be realized in the foreseeable future and respectively provided a full valuation allowance. |
TAXES ON INCOME (Schedule of Ta
TAXES ON INCOME (Schedule of Taxes on Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Current | $ 2,249 | $ (436) | $ 1,233 |
Deferred | (3,672) | 189 | 4 |
Domestic | 610 | 768 | 555 |
Foreign | (2,033) | (1,015) | 697 |
Tax benefit | $ (1,423) | $ (247) | $ 1,252 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 6,596 | $ 1,289 | $ (8,056) |
Foreign | 10,390 | 5,265 | 3,968 |
Net income (loss) before taxes on income | $ 16,986 | $ 6,554 | $ (4,088) |
TAXES ON INCOME (Reconciliati_2
TAXES ON INCOME (Reconciliation of Beginning and Ending Balances of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | |||
Income Tax Disclosure [Abstract] | ||||
Balance at beginning of year | $ 129 | [1] | $ 776 | |
Settlements with tax authorities | (718) | |||
Reductions for prior years' tax position | (58) | |||
Additions for prior years' tax position | [1] | 1,809 | 129 | |
Additions for current years' tax position | 296 | |||
Balance at end of year | [1] | $ 2,234 | $ 129 | |
[1] | The amount for the year ended December 31, 2018 includes $1,989 of unrecognized tax benefits which are presented as a reduction from deferred tax assets, see Note 10d. |
SUPPLEMENTARY CONSOLIDATED BA_3
SUPPLEMENTARY CONSOLIDATED BALANCE SHEET INFORMATION (Schedule of Other Current Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
SUPPLEMENTARY BALANCE SHEET INFORMATION [Abstract] | ||
Governmental authorities | $ 6,264 | $ 5,196 |
Prepaid expenses | 6,612 | 4,220 |
Deferred charges | 9,446 | 7,100 |
Advance payments to suppliers | 2,651 | 1,136 |
Other | 1,049 | 1,763 |
Other current assets | $ 26,022 | $ 19,415 |
SUPPLEMENTARY CONSOLIDATED BA_4
SUPPLEMENTARY CONSOLIDATED BALANCE SHEET INFORMATION (Schedule of Other Current Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
SUPPLEMENTARY BALANCE SHEET INFORMATION [Abstract] | ||
Payroll and related employee accruals | $ 13,229 | $ 14,644 |
Derivative instruments | 320 | |
Governmental authorities | 506 | 2,206 |
Other | 533 | 3,194 |
Other current liabilities | $ 14,588 | $ 20,044 |
SUPPLEMENTARY CONSOLIDATED BA_5
SUPPLEMENTARY CONSOLIDATED BALANCE SHEET INFORMATION (Schedule of Long-Term Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Long-term loans: | |||
Long-term loans | $ 8,098 | $ 17,061 | |
Less - current maturities | 4,458 | 4,479 | |
Long-term loans, excluding current maturities | $ 8,098 | $ 12,582 | |
Loan from bank (a) [Member] | |||
Long-term loans: | |||
Interest rate | [1] | 4.77% | 4.77% |
Maturity, maximum | [1] | Dec. 31, 2021 | Dec. 31, 2021 |
Long-term loans | [1] | $ 12,000 | $ 16,000 |
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, maximum | [2] | Dec. 31, 2020 | Dec. 31, 2020 |
Long-term loans | [2] | $ 556 | $ 1,061 |
[1] | The Company entered into a loan agreement with an Israeli bank 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, 2018 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. |
SUPPLEMENTARY CONSOLIDATED BA_6
SUPPLEMENTARY CONSOLIDATED BALANCE SHEET INFORMATION (Schedule of Long Term Debt Maturities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SUPPLEMENTARY BALANCE SHEET INFORMATION [Abstract] | |||
2020 | $ 4,098 | ||
2021 | 4,000 | ||
Long-term loans | 8,098 | $ 17,061 | |
Interest expenses | $ 614 | $ 822 | $ 1,066 |
SUPPLEMENTARY CONSOLIDATED BA_7
SUPPLEMENTARY CONSOLIDATED BALANCE SHEET INFORMATION (Schedule of Other Long-Term Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
SUPPLEMENTARY BALANCE SHEET INFORMATION [Abstract] | ||
Long-term tax accrual | $ 22 | |
Long-term deferred taxes | 580 | 986 |
Other long-term liabilities | $ 580 | $ 1,008 |
SELECTED CONSOLIDATED STATEME_3
SELECTED CONSOLIDATED STATEMENTS OF INCOME (LOSS) DATA (Schedule of Financial Expenses, Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income: | |||
Interest on cash equivalents, bank deposits and restricted cash | $ 981 | $ 447 | $ 1,027 |
Other | 29 | 355 | 81 |
Total financial income | 1,010 | 802 | 1,108 |
Expenses: | |||
Interest with respect to bank credit, loans and other | 614 | 844 | 1,098 |
Exchange rate differences, net | 1,074 | 226 | 452 |
Bank charges including guarantees | 3,560 | 3,857 | 4,323 |
Other | 60 | 182 | 78 |
Total financial expenses | 5,308 | 5,109 | 5,951 |
Total financial expenses, net | $ (4,298) | $ (4,307) | $ (4,843) |
SELECTED CONSOLIDATED STATEME_4
SELECTED CONSOLIDATED STATEMENTS OF INCOME (LOSS) DATA (Schedule of Earnings (Loss) Per Share) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
SELECTED STATEMENTS OF OPERATIONS DATA [Abstract] | ||||
Net income (loss) available to holders of Ordinary shares | $ 18,409 | $ 6,801 | $ (5,340) | |
Denominator (number of shares in thousands): | ||||
Weighted average number of shares | 54,927,272 | 54,680,822 | 51,970,458 | |
Add-employee stock options | 826,000 | 171,000 | [1] | |
Adjusted weighted average shares assuming exercise of options | 55,752,642 | 54,851,967 | 51,970,458 | |
[1] | Anti-dilutive effect. |
CUSTOMERS, GEOGRAPHIC AND SEG_3
CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION (Schedule of Financial Data for Reportable Operating Segments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 266,391 | $ 282,756 | $ 279,551 |
Cost of Revenues | 172,354 | 200,261 | 204,061 |
Gross profit | 94,037 | 82,495 | 75,490 |
Research and development, net | 33,023 | 28,014 | 24,853 |
Selling and marketing | 22,706 | 23,759 | 23,411 |
General and administrative | 17,024 | 19,861 | 26,471 |
Operating income (loss) | 21,284 | 10,861 | 755 |
Financial expenses, net | 4,298 | 4,307 | 4,843 |
Net income (loss) before taxes on income | 16,986 | 6,554 | (4,088) |
Taxes on income (benefit) | (1,423) | (247) | 1,252 |
Net income (loss) | 18,409 | 6,801 | (5,340) |
Depreciation and amortization expenses | 13,149 | 13,140 | 13,108 |
Fixed Networks [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 144,208 | 116,105 | 124,930 |
Cost of Revenues | 93,745 | 81,920 | 84,986 |
Gross profit | 50,463 | 34,185 | 39,944 |
Research and development, net | 11,764 | 12,172 | 12,599 |
Selling and marketing | 16,106 | 17,782 | 17,710 |
General and administrative | 11,302 | 10,987 | 13,750 |
Operating income (loss) | 11,291 | (6,756) | (4,115) |
Depreciation and amortization expenses | 6,811 | 5,046 | 5,394 |
Mobility Solutions [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 97,180 | 88,397 | 62,911 |
Cost of Revenues | 47,995 | 46,493 | 40,962 |
Gross profit | 49,185 | 41,904 | 21,949 |
Research and development, net | 21,259 | 15,842 | 12,254 |
Selling and marketing | 6,421 | 5,782 | 5,483 |
General and administrative | 4,436 | 6,326 | 9,138 |
Operating income (loss) | 17,069 | 13,954 | (4,926) |
Depreciation and amortization expenses | 6,128 | 7,902 | 7,530 |
Terrestrial Infrastructure Projects [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 25,003 | 78,254 | 91,710 |
Cost of Revenues | 30,614 | 71,848 | 78,113 |
Gross profit | (5,611) | 6,406 | 13,597 |
Research and development, net | |||
Selling and marketing | 179 | 195 | 218 |
General and administrative | 1,286 | 2,548 | 3,583 |
Operating income (loss) | (7,076) | 3,663 | 9,796 |
Depreciation and amortization expenses | $ 210 | $ 192 | $ 184 |
CUSTOMERS, GEOGRAPHIC AND SEG_4
CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION (Schedule of Revenue by geographic areas) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 266,391 | $ 282,756 | $ 279,551 |
Latin America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 94,707 | 132,134 | 143,491 |
Asia Pacific [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 39,381 | 34,586 | 47,094 |
North America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 97,122 | 73,921 | 54,728 |
Europe the Middle East and Africa [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 35,181 | $ 42,115 | $ 34,238 |
CUSTOMERS, GEOGRAPHIC AND SEG_5
CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION (Schedule of long-lived assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 84,403 | $ 82,246 |
Israel [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 64,018 | 62,606 |
Latin America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 4,564 | 5,000 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 5,620 | 3,733 |
Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 9,117 | 9,426 |
Other [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 1,084 | $ 1,481 |
CUSTOMERS, GEOGRAPHIC AND SEG_6
CUSTOMERS, GEOGRAPHIC AND SEGMENT INFORMATION (Schedule of Revenues from Major Customers) (Details) - Revenues [Member] | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Customer A [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Concentration risk percentage | 10.00% | 28.00% | 34.00% | ||
Customer B [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Concentration risk percentage | 15.00% | [1] | [1] | ||
Customer C [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Concentration risk percentage | 13.00% | [1] | [1] | ||
[1] | Less than 10% |
RELATED PARTY BALANCES AND TR_3
RELATED PARTY BALANCES AND TRANSACTIONS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2018 | Aug. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Ownership Percentage | 33.40% | ||
Aggregate amount of purchase of infrastructure, construction and services | $ 1,750 | ||
C. Mer Industries Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Ownership Percentage | 36.60% |
RELATED PARTY BALANCES AND TR_4
RELATED PARTY BALANCES AND TRANSACTIONS (Schedule of Transactions with Related Parties) (Details) - C. Mer Industries Ltd [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Cost of revenues of products | $ 764 | $ 3,770 | $ 12,280 |
Research and development | 346 | 61 | |
Purchase of property and equipment and inventory | $ 101 | $ 100 |
RELATED PARTY BALANCES AND TR_5
RELATED PARTY BALANCES AND TRANSACTIONS (Schedule of Balances with Related Parties) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||
Accrued expenses | $ 67,533 | $ 75,270 |
C. Mer Industries Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Advance payments | 144 | |
Trade payables | 125 | 1,220 |
Accrued expenses | $ 1,797 | $ 2,241 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - Subsequent Event [Member] $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 18, 2019USD ($)$ / shares | |
Subsequent Event [Line Items] | |
Cash dividend declare per share | $ / shares | $ 0.45 |
Dividend payable | $ | $ 25,000 |
Dividend payable to be paid date | Apr. 11, 2019 |
Dividend payable record date | Mar. 29, 2019 |