Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 1-May-14 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'DSP GROUP INC /DE/ | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 22,147,089 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000915778 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $14,464 | $23,578 |
Restricted deposit | 67 | 77 |
Marketable securities and short-term deposits | 13,458 | 13,895 |
Trade receivables | 22,569 | 21,195 |
Deferred income taxes | 90 | 92 |
Other accounts receivable and prepaid expenses | 3,071 | 2,641 |
Inventories | 12,193 | 12,334 |
TOTAL CURRENT ASSETS | 65,912 | 73,812 |
PROPERTY AND EQUIPMENT, NET | 2,863 | 2,837 |
LONG-TERM ASSETS: | ' | ' |
Long-term marketable securities | 89,220 | 90,162 |
Long-term prepaid expenses and lease deposits | 103 | 100 |
Severance pay fund | 11,493 | 11,168 |
Investment in other companies | 2,200 | 2,200 |
Intangible assets, net | 6,313 | 6,710 |
Goodwill | 5,276 | 5,276 |
114,605 | 115,616 | |
TOTAL ASSETS | 183,380 | 192,265 |
CURRENT LIABILITIES: | ' | ' |
Trade payables | 12,634 | 14,149 |
Accrued compensation and benefits | 6,288 | 9,845 |
Income tax accruals and payables | 1,965 | 1,985 |
Accrued expenses and other accounts payable | 5,174 | 5,532 |
Total current liabilities | 26,061 | 31,511 |
LONG-TERM LIABILITIES: | ' | ' |
Deferred income taxes | 1,087 | 1,183 |
Accrued severance pay | 11,517 | 11,179 |
Accrued pensions | 988 | 981 |
Total long-term liabilities | 13,592 | 13,343 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
Capital stock: | ' | ' |
Preferred stock, $ 0.001 par value - Authorized shares: 5,000,000 at March 31, 2014 and December 31, 2013; Issued and outstanding shares: none at March 31, 2014 and December 31, 2013 | 0 | 0 |
Common stock, $ 0.001 par value - Authorized shares: 50,000,000 shares at March 31, 2014 and December 31, 2013; Issued and outstanding shares: 22,126,569 and 22,349,780 shares at March 31, 2014 and December 31, 2013, respectively | 22 | 22 |
Additional paid-in capital | 351,937 | 350,494 |
Treasury stock | -120,360 | -118,749 |
Accumulated other comprehensive loss | -943 | -821 |
Accumulated deficit | -86,929 | -83,535 |
Total stockholders’ equity | 143,727 | 147,411 |
Total liabilities and stockholders’ equity | $183,380 | $192,265 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Preferred stock, par value (in Dollars per share) | $0.00 | $0.00 |
Preferred stock, Authorized shares | 5,000,000 | 5,000,000 |
Preferred stock, Issued shares | 0 | 0 |
Preferred stock, Outstanding shares | 0 | 0 |
Common stock, par value (in Dollars per share) | $0.00 | $0.00 |
Common stock, Authorized shares | 50,000,000 | 50,000,000 |
Common stock, Issued shares | 22,126,569 | 22,349,780 |
Common stock, Outstanding shares | 22,126,569 | 22,349,780 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Income (Unaudited) (USD $) | 3 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Revenues | $32,886 | $39,650 | ||
Cost of revenues (1) | 19,872 | [1] | 23,944 | [1] |
Gross profit | 13,014 | 15,706 | ||
Operating expenses: | ' | ' | ||
Research and development, net (2) | 8,205 | [2] | 9,151 | [2] |
Sales and marketing (3) | 3,086 | [3] | 3,051 | [3] |
General and administrative (4) | 2,717 | [4] | 2,622 | [4] |
Intangible assets amortization | 397 | 418 | ||
Total operating expenses | 14,405 | 15,242 | ||
Operating income (loss) | -1,391 | 464 | ||
Financial income, net | 412 | 570 | ||
Income (loss) before taxes on income | -979 | 1,034 | ||
Taxes on income (income tax benefit) | 9 | -138 | ||
Net income (loss) | ($988) | $1,172 | ||
Net earnings (loss) per share: | ' | ' | ||
Basic (in Dollars per share) | ($0.04) | $0.05 | ||
Diluted (in Dollars per share) | ($0.04) | $0.05 | ||
Weighted average number of shares used in per share computations of net income (loss): | ' | ' | ||
Basic (in Shares) | 22,378 | 21,897 | ||
Diluted (in Shares) | 22,378 | 22,246 | ||
[1] | Includes equity- based compensation expense in the amount of $82 and $63 for the three months ended March 31, 2014 and 2013, respectively. | |||
[2] | Includes equity-based compensation expense in the amount of $644 and $468 for the three months ended March 31, 2014 and 2013, respectively. | |||
[3] | Includes equity-based compensation expense in the amount of $162 and $135 for the three months ended March 31, 2014 and 2013, respectively. | |||
[4] | Includes equity-based compensation expense in the amount of $555 and $377 for the three months ended March 31, 2014 and 2013, respectively. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements Of Income (Unaudited) (Parentheticals) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Equity-based compensation expense included in cost of revenues | $82 | $63 |
Equity-based compensation expenses included in research and development, net | 644 | 468 |
Equity-based compensation expense included in sales and marketing | 162 | 135 |
Equity-based compensation expense included in general and administrative | $555 | $377 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net income (loss): | ($988) | $1,172 |
Available-for-sale securities: | ' | ' |
Changes in unrealized gain/loss | -60 | 363 |
Reclassification adjustments for gains included in net income (loss) | -60 | -163 |
Net change | -120 | 200 |
Cash flow hedges: | ' | ' |
Changes in unrealized gains | 3 | 176 |
Reclassification adjustments for (gains) losses included in net income (loss) | -2 | -141 |
Net change | 1 | 35 |
Change in unrealized components of defined benefit plans: | ' | ' |
Amortization of actuarial loss and prior service benefit | 3 | 3 |
Net change | 3 | 3 |
Foreign currency translation adjustments, net | -6 | -36 |
Other comprehensive income (loss) | -122 | 202 |
Comprehensive income (loss) | ($1,110) | $1,374 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements Of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net cash used in operating activities | ($4,919) | ($327) |
Investing activities | ' | ' |
Purchases of marketable securities | -23,848 | -15,911 |
Proceeds from maturity of marketable securities | 3,020 | 6,056 |
Proceeds from sales of marketable securities | 21,851 | 7,937 |
Purchases of property and equipment | -360 | -446 |
Net cash (used in) provided by investing activities | 663 | -2,364 |
Financial activities | ' | ' |
Purchase of treasury stock | -5,263 | ' |
Issuance of common stock and treasury stock upon exercise of stock options | 412 | 237 |
Net cash (used in) provided by financing activities | -4,851 | 237 |
Decrease- in cash and cash equivalents | -9,107 | -2,454 |
Erosion- due to exchange rate differences | -7 | -5 |
Cash and cash equivalents at the beginning of the period | 23,578 | 21,684 |
Cash and cash equivalents at the end of the period | $14,464 | $19,225 |
Condensed_Statements_Of_Stockh
Condensed Statements Of Stockholders’ Equity (unaudited) (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total | |
In Thousands, except Share data | |||||||
Balance at Dec. 31, 2012 | $22 | $346,335 | ($125,724) | ($79,394) | $988 | $142,227 | |
Balance, share (in Shares) at Dec. 31, 2012 | 21,674,000 | ' | ' | ' | ' | ' | |
Net income (loss) | ' | ' | ' | 1,172 | ' | 1,172 | |
Change in Accumulated other comprehensive income | ' | ' | ' | ' | 202 | 202 | |
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan | ' | [1] | ' | 1,867 | -1,022 | ' | 845 |
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan, shares (in Shares) | 190,000 | ' | ' | ' | ' | ' | |
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted share units by employees | ' | [1] | ' | 872 | -635 | ' | 237 |
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted share units by employees, shares (in Shares) | 89,000 | ' | ' | ' | ' | ' | |
Equity-based compensation | ' | 1,043 | ' | ' | ' | 1,043 | |
Balance at Mar. 31, 2013 | 22 | 347,378 | -122,985 | -79,879 | 1,190 | 145,726 | |
Balance, share (in Shares) at Mar. 31, 2013 | 21,953,000 | ' | ' | ' | ' | ' | |
Balance at Dec. 31, 2013 | 22 | 350,494 | -118,749 | -83,535 | -821 | 147,411 | |
Balance, share (in Shares) at Dec. 31, 2013 | 22,350,000 | ' | ' | ' | ' | ' | |
Net income (loss) | ' | ' | ' | -988 | ' | -988 | |
Change in Accumulated other comprehensive income | ' | ' | ' | ' | -122 | -122 | |
Purchase of treasury stock | -1 | ' | -5,262 | ' | ' | -5,263 | |
Purchase of treasury stock (in Shares) | -596,000 | ' | ' | ' | ' | ' | |
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan | 1 | ' | 1,813 | -980 | ' | 834 | |
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan, shares (in Shares) | 185,000 | ' | ' | ' | ' | 373,000 | |
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted share units by employees | ' | [1] | ' | 1,838 | -1,426 | ' | 412 |
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted share units by employees, shares (in Shares) | 188,000 | ' | ' | ' | ' | ' | |
Equity-based compensation | ' | 1,443 | ' | ' | ' | 1,443 | |
Balance at Mar. 31, 2014 | $22 | $351,937 | ($120,360) | ($86,929) | ($943) | $143,727 | |
Balance, share (in Shares) at Mar. 31, 2014 | 22,127,000 | ' | ' | ' | ' | ' | |
[1] | Represents an amount lower than $1. |
Note_1_Basis_Of_Presentation_a
Note 1 - Basis Of Presentation and Summary Of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies [Text Block] | ' |
NOTE A—BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. For further information, reference is made to the consolidated financial statements and footnotes thereto included in the Annual Report on Form 10-K of DSP Group, Inc. (the “Company”) for the year ended December 31, 2013. |
Note_2_Inventories
Note 2 - Inventories | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory Disclosure [Text Block] | ' | ||||||||
NOTE B—INVENTORIES | |||||||||
Inventories are stated at the lower of cost or market value. The Company periodically evaluates the quantities on hand relative to current and historical selling prices, and historical and projected sales volume. Based on these evaluations, provisions are made in each period to write inventory down to its net realizable value. Inventories are composed of the following: | |||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
(Unaudited) | (Audited) | ||||||||
Work-in-process | $ | 7,431 | $ | 5,412 | |||||
Finished goods | 4,762 | 6,922 | |||||||
$ | 12,193 | $ | 12,334 | ||||||
Inventory write-off amounted to $49 for the three months ended March 31, 2014. For the three months ended March 31, 2013, the Company recorded $160 of income due to the utilization of inventory that was written off in the past. |
Note_3_Net_Income_Loss_Per_Sha
Note 3 - Net Income (Loss) Per Share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings Per Share [Text Block] | ' | ||||||||
NOTE C—NET INCOME (LOSS) PER SHARE | |||||||||
Basic net income (loss) per share is computed based on the weighted average number of shares of common stock outstanding during the period. For the same periods, diluted net income (loss) per share further includes the effect of dilutive stock options, stock appreciation rights and restricted share units outstanding during the period, all in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 260 “Earnings per Share.” The following table sets forth the computation of basic and diluted net income (loss) per share: | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Net income (loss) | $ | (988 | ) | $ | 1,172 | ||||
Income (loss) per share: | |||||||||
Basic | $ | (0.04 | ) | $ | 0.05 | ||||
Diluted | $ | (0.04 | ) | $ | 0.05 | ||||
Weighted average number of shares of common stock outstanding during the period used to compute basic net income (loss) per share (in thousands) | 22,378 | 21,897 | |||||||
Incremental shares attributable to exercise of outstanding options, stock appreciation rights and restricted shares units (assuming proceeds would be used to purchase treasury stock) (in thousands) | - | 349 | |||||||
Weighted average number of shares of common stock used to compute diluted net income (loss) per share (in thousands) | 22,378 | 22,246 | |||||||
Note_4_Marketable_Securities_A
Note 4 - Marketable Securities And Time Deposits | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | ' | ||||||||||||||||||||||||
NOTE D—MARKETABLE SECURITIES and time deposits | |||||||||||||||||||||||||
The Company accounts for investments in marketable securities in accordance with FASB ASC No.320-10 “Investments in Debt and Equity Securities.” Management determines the appropriate classification of its investments in government and corporate marketable debt securities at the time of purchase and reevaluates such determinations at each balance sheet date. | |||||||||||||||||||||||||
The Company classifies marketable securities as available-for-sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses, net of taxes, reported in other comprehensive income. The amortized cost of marketable securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and interest are included in financial income, net. Interest and dividends on securities are included in financial income, net. The following is a summary of available-for-sale securities at March 31, 2014 and December 31, 2013: | |||||||||||||||||||||||||
Amortized cost | Unrealized gains (losses), net | Fair value | |||||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | March 31, | December 31, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
(Unaudited) | (Audited) | (Unaudited) | (Audited) | (Unaudited) | (Audited) | ||||||||||||||||||||
Short term deposits | $ | 2,905 | $ | 2,911 | $ | - | $ | - | $ | 2,905 | $ | 2,911 | |||||||||||||
U.S. GSE securities | 2,667 | 3,093 | (8 | ) | (11 | ) | 2,659 | 3,082 | |||||||||||||||||
Corporate obligations | 97,618 | 98,444 | (504 | ) | (380 | ) | 97,114 | 98,064 | |||||||||||||||||
$ | 103,190 | $ | 104,448 | $ | (512 | ) | $ | (391 | ) | $ | 102,678 | $ | 104,057 | ||||||||||||
The amortized cost of marketable debt securities and short-term deposits at March 31, 2014, by contractual maturities, is shown below: | |||||||||||||||||||||||||
Unrealized gains (losses) | |||||||||||||||||||||||||
Amortized | Gains | Losses | Fair value | ||||||||||||||||||||||
cost | |||||||||||||||||||||||||
Due in one year or less | $ | 10,538 | $ | 16 | $ | (1 | ) | $ | 10,553 | ||||||||||||||||
Due after one year to five years | 89,747 | 122 | (649 | ) | 89,220 | ||||||||||||||||||||
$ | 100,285 | $ | 138 | $ | (650 | ) | $ | 99,773 | |||||||||||||||||
The actual maturity dates may differ from the contractual maturities because debtors may have the right to call or prepay obligations without penalties. | |||||||||||||||||||||||||
Management believes that as of March 31, 2014, the unrealized losses in the Company’s investments in all types of marketable securities were temporary and no impairment loss was realized in the Company’s condensed consolidated statement of income. | |||||||||||||||||||||||||
The unrealized losses related to corporate obligations were primarily due to changes in interest rates. Because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at March 31, 2014. | |||||||||||||||||||||||||
The total fair value of marketable securities with outstanding unrealized losses as of March 31, 2014 amounted to $54,287, while the unrealized losses for these marketable securities amounted to $650. Of the $650 unrealized losses outstanding as of March 31, 2014, a portion of which in the amount of $282 related to marketable securities that were in a loss position for more than 12 months and the remaining portion in the amount of $368 was related to marketable securities that were in a loss position for less than 12 months. | |||||||||||||||||||||||||
Proceeds from maturity of available-for-sale marketable securities during the three months ended March 31, 2014 and 2013 were $3,020 and $6,056, respectively. Proceeds from sales of available-for-sale marketable securities during the three months ended March 31, 2014 and 2013 were $21,851 and $7,937, respectively. Net realized gains from the sale of available-for-sale securities for the three months ended March 31, 2014 and 2013 were $60 and $163, respectively. The Company determines realized gains or losses on the sale of marketable securities based on a specific identification method. | |||||||||||||||||||||||||
Marketable securities are periodically reviewed for impairment. If management concludes that any marketable security is impaired, management determines whether such impairment is other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value and the potential recovery period, and the Company’s intent to sell, or whether it is more likely than not that the Company will be required to sell the marketable security before recovery of cost basis. If any impairment is considered other-than-temporary, the marketable security is written down to its fair value through a corresponding charge to financial income, net. |
Note_5_Taxes_On_Income
Note 5 - Taxes On Income | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax Disclosure [Text Block] | ' |
NOTE e—TAXES ON Income | |
The effective tax rate used in computing the provision for income taxes is based on projected fiscal year income before taxes, including estimated income by tax jurisdiction. Tax provision for the three months ended March 31, 2014 and 2013 does not include tax benefits associated with equity-based compensation expenses. As of March 31, 2014 and December 31, 2013, the Company did not record any significant changes to its deferred tax assets due to its current estimation of future taxable income. | |
The total amount of net unrecognized tax benefits was $1,890 and $1,892 at March 31, 2014 and December 31, 2013, respectively. The Company accrues interest and penalties, relating to unrecognized tax benefits, in its provision for income taxes. At both March 31, 2014 and December 31, 2013, the Company had accrued interest and penalties relating to unrecognized tax benefits of $408. |
Note_6_Significant_Customers
Note 6 - Significant Customers | 3 Months Ended |
Mar. 31, 2014 | |
Significant Customers Disclosure [Abstract] | ' |
Significant Customers Disclosure [Text Block] | ' |
NOTE f—SIGNIFICANT CUSTOMERS | |
The Company sells its products primarily through distributors and directly to original equipment manufacturers (OEMs) and original design manufacturers (ODMs) who incorporate the Company’s products into consumer products. The Company’s future performance will depend, in part, on the continued success of its distributors in marketing and selling its products. The loss of the Company’s distributors and the Company’s inability to obtain satisfactory replacements in a timely manner may harm the Company’s sales and results of operations. In addition, the Company expects that a limited number of customers, varying in identity from period-to-period, will account for a substantial portion of its revenues in any period. The loss of, or reduced demand for products from, any of the Company’s major customers could have a material adverse effect on the Company’s business, financial condition and results of operations. | |
Sales to VTech Holdings Ltd. represented 35% and 34% of the Company’s total revenues for the three months ended March 31, 2014 and 2013, respectively. Sales to CCT Telecom Holdings Ltd represented 9% and 10% of the Company’s total revenues for the three months ended March 31, 2014 and 2013, respectively. | |
Revenues derived from sales through one distributor, Tomen Electronics Corporation (“Tomen Electronics”), accounted for 20% and 14% of the Company’s total revenues for the three months ended March 31, 2014 and 2013, respectively. The Japanese market and the OEMs that operate in that market are among the largest suppliers in the world with significant market share in the U.S. market for residential wireless products. Tomen Electronics sells the Company’s products to a limited number of customers. One customer, Panasonic Communications Co., Ltd. (“Panasonic”), has continually accounted for a majority of the sales of Tomen Electronics. Sales to Panasonic through Tomen Electronics generated approximately 12% and 10% of the Company’s total revenues for the three months ended March 31, 2014 and 2013, respectively. |
Note_7_Derivative_Instruments
Note 7 - Derivative Instruments | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | ' | |||||||||||
NOTE G—DERIVATIVE INSTRUMENTS | ||||||||||||
The Company accounts for derivative instruments in accordance with FASB. ASC No. 815 “Derivatives and Hedging” (“ASC 815”). Due to the Company’s global operations, it is exposed to foreign currency exchange rate fluctuations in the normal course of its business. The Company’s treasury policy allows it to offset the risks associated with the effects of certain foreign currency exposures through the purchase of foreign exchange forward contracts and put options (collectively, “hedging contracts”). The policy, however, prohibits the Company from speculating on hedging contracts for profit. | ||||||||||||
To protect against the increase in value of forecasted foreign currency cash flows resulting from salary and lease payments of its Israeli facilities denominated in the Israeli currency, the New Israeli Shekels (“NIS”), during the year, the Company instituted a foreign currency cash flow hedging program. The Company hedges portions of the anticipated payroll and lease payments denominated in NIS for a period of one to twelve months with hedging contracts. Accordingly, when the dollar strengthens against the foreign currencies, the decline in present value of future foreign currency expenses is offset by losses in the fair value of the hedging contracts. Conversely, when the dollar weakens, the increase in the present value of future foreign currency cash flows is offset by gains in the fair value of the hedging contracts. These hedging contracts are designated as cash flow hedges, as defined by ASC 815 and are all effective hedges of these expenses. | ||||||||||||
In accordance with ASC 815, for derivative instruments that are designated and qualify as a cash flow hedge (i.e. hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Any gain or loss on a derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item is recognized in current earnings during the period of change. As of March 31, 2014, the Company had no outstanding foreign exchange forward contracts and outstanding option contracts in the amount of $5,500. These hedging contracts do not contain any credit-risk-related contingency features. See Note K for information on the fair value of these hedging contracts. | ||||||||||||
The fair value of derivative assets and derivative liabilities were $19 and $18, respectively, at March 31, 2014. The Company recorded a net amount of $1 in other accounts receivable and prepaid expenses in the condensed consolidated balance sheets at March 31, 2014. | ||||||||||||
The amount recorded as income in research and development expenses, sales and marketing expenses and general and administrative expenses in the condensed consolidated statements of income for the quarter ended March 31, 2014 that resulted from the above referenced hedging transactions was $2, $0 and $0, respectively. | ||||||||||||
The fair value of the outstanding derivative instruments at March 31, 2014 and December 31, 2013 is summarized below: | ||||||||||||
Fair Value of Derivative Instruments | ||||||||||||
Balance Sheet Location | As of March 31, | As of December 31, | ||||||||||
2014 | 2013 | |||||||||||
Derivative Assets | ||||||||||||
Foreign exchange forward contracts and put options | Other accounts receivable and prepaid expenses (*) | 1 | - | |||||||||
Total | $ | 1 | $ | - | ||||||||
(*) Estimated to be reclassified into earnings during 2014. | ||||||||||||
The effect of derivative instruments in cash flow hedging transactions on income and other comprehensive income (“OCI”) for the three months ended March 31, 2014 and 2013 is summarized below: | ||||||||||||
Gains on Derivatives Recognized in OCI | ||||||||||||
for the three months ended March 31, | ||||||||||||
2014 | 2013 | |||||||||||
Foreign exchange forward and put options contracts | $ | 3 | $ | 176 | ||||||||
Gains (losses) on Derivatives Reclassified from OCI into Income | ||||||||||||
for the three months ended March 31, | ||||||||||||
Location | 2014 | 2013 | ||||||||||
Foreign exchange forward and put options contracts | Operating expenses | $ | 2 | $ | 141 | |||||||
Note_8_Contingencies
Note 8 - Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
NOTE h—CONTINGENCIES | |
From time to time, the Company may become involved in litigation relating to claims arising from its ordinary course of business. Also, as is typical in the semiconductor industry, the Company has been and may from time to time be notified of claims that the Company may be infringing patents or intellectual property rights owned by third parties. The Company currently believes that there are no claims or actions pending or threatened against it, the ultimate disposition of which would have a material adverse effect on the Company. |
Note_9_EquityBased_Compensatio
Note 9 - Equity-Based Compensation | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||||||||||
NOTE i—EQUITY-BASED COMPENSATION | |||||||||||||||||||||||||
Grants for the Three Months ended March 31, 2014 and March 31, 2013: | |||||||||||||||||||||||||
The weighted average estimated fair value of employee stock options and restricted stock units (“RSU”) granted during the three months ended March 31, 2014 and 2013 was $6.62 and $4.30 per share, respectively, using the binomial model, with the following weighted average assumptions (annualized percentages): | |||||||||||||||||||||||||
Three months ended | Three months ended | ||||||||||||||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||||||||||||||
Volatility (1) | 43.14% | 46.23% | |||||||||||||||||||||||
Risk-free interest rate (1) | 2.64% | 1.40% | |||||||||||||||||||||||
Dividend yield (1) | 0% | 0% | |||||||||||||||||||||||
Pre-vest cancellation rate | 3.94% | 3.75% | |||||||||||||||||||||||
Post-vest cancellation rate (1) | 4.09% | 1.31% | |||||||||||||||||||||||
Suboptimal exercise factor (1) | 1.61 | 1.75 | |||||||||||||||||||||||
The expected life of employee stock options is impacted by all of the underlying assumptions used in the Company’s model. The binomial model assumes that employees’ exercise behavior is a function of the remaining contractual life of the stock option and the extent to which the stock option is in-the-money (i.e., the average stock price during the period is above the exercise price of the stock option). The binomial model estimates the probability of exercise as a function of these two variables based on the history of exercises and cancellations of past option and SAR grants made by the Company. The expected life for options granted during the three months ended March 31, 2014 and 2013 derived from the binomial model was 3.27 and 4.53 years, respectively. | |||||||||||||||||||||||||
-1 | The RSUs granted during the three months ended March 31, 2014 and 2013 were not included in the average calculated numbers in the table above since those assumptions were not used in the RSU calculation. | ||||||||||||||||||||||||
Employee Stock Benefit Plans | |||||||||||||||||||||||||
As of March 31, 2014, the Company had two equity incentive plans from which the Company may grant future equity awards and three expired equity incentive plans from which no future equity awards may be granted but had outstanding equity awards granted prior to expiration. The Company also had one employee stock purchase plan. As of March 31, 2014, approximately 529,000 shares of common stock remain available for grant under the Company’s employee stock purchase plan and 565,000 shares of common stock remain available for grant under the Company’s equity incentive plans. | |||||||||||||||||||||||||
The table below presents a summary of information relating to the Company’s stock option, RSU and SAR grants pursuant to its equity incentive plans: | |||||||||||||||||||||||||
Number of | Weighted | Weighted Average | Aggregate Value (*) | ||||||||||||||||||||||
Options/SARs / | Average | Remaining | |||||||||||||||||||||||
RSUs | Exercise Price | Contractual | |||||||||||||||||||||||
Term (years) (3) | |||||||||||||||||||||||||
in thousands | in thousands | ||||||||||||||||||||||||
Outstanding at January 1, 2014 | 6,537 | $ | 8.68 | ||||||||||||||||||||||
Options granted | 232 | $ | 9.15 | ||||||||||||||||||||||
RSUs granted | 332 | - | |||||||||||||||||||||||
Options / SARs / RSUs cancelled/forfeited/expired | (608 | ) | $ | 21.38 | |||||||||||||||||||||
Options / SARs / RSUs exercised | (264 | ) | $ | 4.32 | |||||||||||||||||||||
Outstanding at March 31, 2014 (1) | 6,229 | $ | 7.18 | 3.46 | 13,639 | ||||||||||||||||||||
Exercisable at March 31, 2014 (2) | 4,153 | $ | 8.57 | 2.63 | 4,716 | ||||||||||||||||||||
(*) Calculation of aggregate intrinsic value is based on the share price of the Company’s common stock on March 31, 2014 ($8.64 per share). | |||||||||||||||||||||||||
(1) Due to the ceiling imposed on the SAR grants, the outstanding amount above can be exercised for a maximum of 4,636 shares of the Company’s common stock as of March 31, 2014. SAR grants made prior to January 1, 2009 are convertible for a maximum number of shares of the Company’s common stock equal to 50% of the SARs subject to the grant. SAR grants made on or after January 1, 2009 and before January 1, 2010 are convertible for a maximum number of shares of the Company’s common stock equal to 75% of the SARs subject to the grant. SAR grants made on or after January 1, 2010 and before January 1, 2012 are convertible for a maximum number of shares of the Company’s common stock equal to 66.67% of the SARs subject to the grant. SAR grants made on or after January 1, 2012 are convertible for a maximum number of shares of the Company’s common stock equal to 50% of the SARs subject to the grant. | |||||||||||||||||||||||||
(2) Due to the ceiling imposed on the SAR grants, the exercisable amount above can be exercised for a maximum of 2,837 shares of the Company’s common stock as of March 31, 2014. | |||||||||||||||||||||||||
(3) Calculation of weighted average remaining contractual term does not include the RSUs that were granted, which have indefinite contractual term. | |||||||||||||||||||||||||
Additional information about stock options, SARs and RSUs outstanding and exercisable at March 31, 2014 with exercise prices above $8.64 per share (the closing price of the Company’s common stock on March 31, 2014) is as follows: | |||||||||||||||||||||||||
Exercisable | Unexercisable | Total | |||||||||||||||||||||||
Exercise Prices | Number of | Weighted | Number of | Weighted | Number of | Weighted | |||||||||||||||||||
Options/ | Average | Options/ | Average | Options/ | Average | ||||||||||||||||||||
SARs / | Exercise | SARs / | Exercise | SARs / | Exercise | ||||||||||||||||||||
RSUs (in | Price | RSUs (in | Price | RSUs (in | Price | ||||||||||||||||||||
thousands) | thousands) | thousands) | |||||||||||||||||||||||
Above $8.64 | 1,471 | $ | 11.64 | 124 | $ | 9.71 | 1,595 | $ | 11.49 | ||||||||||||||||
Less than $8.64 | 2,682 | $ | 6.88 | 1,952 | $ | 4.07 | 4,634 | $ | 5.7 | ||||||||||||||||
Total | 4,153 | $ | 8.57 | 2,076 | $ | 4.4 | 6,229 | $ | 7.18 | ||||||||||||||||
The Company’s aggregate equity-based compensation expense for the three months ended March 31, 2014 and 2013 totaled $1,443 and $1,043, respectively. The Company did not recognize any income tax benefit relating to the Company’s equity-based compensation expense for the three months ended March 31, 2014 and 2013. | |||||||||||||||||||||||||
As of March 31, 2014, there was $6,605 of total unrecognized equity-based compensation expense related to unvested equity-based compensation awards granted under the Company’s equity incentive plans. This amount is expected to be recognized during the period from 2014 through 2018. |
Note_10_Pension_Liability
Note 10 - Pension Liability | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||
Pension and Other Postretirement Benefits Disclosure [Text Block] | ' | ||||||||
NOTE j—Pension Liability | |||||||||
The information in this note represents the net periodic pension and post-retirement benefit costs and related components in accordance with FASB ASC No. 715 “Employers’ Disclosures about Pensions and Other Post-Retirement Benefits.” The components of net pension and post-retirement periodic benefit cost (income) for the quarter ended March 31, 2014 and 2013 are as follows: | |||||||||
31-Mar-14 | 31-Mar-13 | ||||||||
Components of net periodic benefit cost: | |||||||||
Service cost and amortization of loss | $ | 4 | $ | 4 | |||||
Interest cost | 7 | 9 | |||||||
Expected return on plan assets | (1 | ) | (2 | ) | |||||
Net periodic benefit cost | $ | 10 | $ | 11 | |||||
The net pension liability as of March 31, 2014 amounted to $988. |
Note_11_Fair_Value_Measurement
Note 11 - Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||
Fair Value, Measurement Inputs, Disclosure [Text Block] | ' | ||||||||||||||||
NOTE k—FAIR VALUE MEASUREMENTS | |||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis: | |||||||||||||||||
The Company measures its cash equivalents, short-term deposits, marketable securities and foreign currency derivative contracts at fair value. Cash equivalents, short-term deposits and marketable securities are classified within Level 1 or Level 2 value hierarchies as they are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Foreign currency derivative contracts are classified within Level 2 value hierarchy as the valuation inputs are based on quoted prices and market observable data of similar instruments. | |||||||||||||||||
The following table provides information by value level for assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2014: | |||||||||||||||||
Balance as of | Fair Value Measurements | ||||||||||||||||
31-Mar-14 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Description | |||||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
Time deposits | $ | 702 | - | $ | 702 | - | |||||||||||
Money market mutual funds | $ | 4,045 | $ | 4,045 | - | - | |||||||||||
Short-term marketable securities and cash deposits: | |||||||||||||||||
Time deposits | $ | 2,905 | - | $ | 2,905 | - | |||||||||||
U.S. GSE securities | $ | 251 | - | $ | 251 | - | |||||||||||
Corporate debt securities | $ | 10,302 | - | $ | 10,302 | - | |||||||||||
Long-term marketable securities: | |||||||||||||||||
U.S. GSE securities | $ | 2,408 | - | $ | 2,408 | - | |||||||||||
Corporate debt securities | $ | 86,812 | - | $ | 86,812 | - | |||||||||||
Derivative assets | $ | 1 | - | $ | 1 | - | |||||||||||
The following table provides information by value level for assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2013. | |||||||||||||||||
Balance as of | Fair Value Measurements | ||||||||||||||||
December 31, | Level 1 | Level 2 | Level 3 | ||||||||||||||
2013 | |||||||||||||||||
Description | |||||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
Time deposits | $ | 913 | - | $ | 913 | - | |||||||||||
Money market mutual funds | $ | 3,762 | $ | 3,762 | - | - | |||||||||||
Short-term marketable securities and time deposits: | |||||||||||||||||
U.S. GSE securities | $ | 251 | - | $ | 251 | - | |||||||||||
Corporate debt securities | $ | 10,733 | - | $ | 10,733 | - | |||||||||||
Time deposits | $ | 2,911 | - | $ | 2,911 | - | |||||||||||
Long-term marketable securities: | |||||||||||||||||
U.S. GSE securities | $ | 2,831 | - | $ | 2,831 | - | |||||||||||
Corporate debt securities | $ | 87,331 | - | $ | 87,331 | - | |||||||||||
In addition to the assets and liabilities described above, the Company’s financial instruments also include cash and cash equivalents, restricted and short-term deposits, trade receivables, other accounts receivable, trade payables, accrued expenses and other payables. The fair value of these financial instruments was not materially different from their carrying values at March 31, 2014 due to the short-term maturity of these instruments. |
Note_12_Stockholders_Equity
Note 12 - Stockholders' Equity | 3 Months Ended |
Mar. 31, 2014 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Equity Note Disclosure [Text Block] | ' |
NOTE l—STOCKHOLDERS’ EQUITY | |
During the first quarter of 2014, the Company repurchased 596,098 shares of common stock at an average purchase price of $8.83 per share for approximately $5,263,000. As of March 31, 2014, 2,021,729 shares of common stock remained authorized for repurchase under the Company's board-authorized share repurchase program. | |
Repurchases of common stock are accounted for as treasury stock, and result in a reduction of stockholders’ equity. When treasury shares are reissued, the Company accounts for the reissuance in accordance with Accounting Principles Board Opinion No. 6, “Status of Accounting Research Bulletins” and charges the excess of the repurchase cost over issuance price using the weighted average method to accumulated deficit. In the case where the repurchase cost over issuance price using the weighted average method is lower than the issuance price, the Company credits the difference to additional paid-in capital. | |
During the first three months of 2014, the Company issued approximately 373,000 shares of common stock out of treasury stock to employees who exercised their stock options, SARs or RSUs, or purchased shares from the Company’s 1993 Employee Stock Purchase Plan. |
Note_13_Segment_Information
Note 13 - Segment Information | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||||||
NOTE M:- SEGMENT INFORMATION | |||||||||||||||||
Description of segments: | |||||||||||||||||
The Company operates under three reportable segments. | |||||||||||||||||
The Company's segment information has been prepared in accordance with ASC 280, "Segment Reporting." Operating segments are defined as components of an enterprise engaging in business activities about which separate financial information is available that is evaluated regularly by the Company's chief operating decision-maker (“CODM”) in deciding how to allocate resources and assess performance. The Company's CODM is its Chief Executive Officer, who evaluates the Company's performance and allocates resources based on segment revenues and operating income. | |||||||||||||||||
The Company's operating segments are as follows: Home, Office and Mobile. The classification of the Company’s business segments is based on a number of factors that management uses to evaluate, view and run its business operations, which include, but are not limited to, customer base, homogeneity of products and technology. | |||||||||||||||||
A description of the types of products provided by each business segment is as follows: | |||||||||||||||||
Home - Wireless chipset solutions for converged communication at home. Such solutions include integrated circuits targeted for cordless phones sold in retail or supplied by telecommunication service providers, residential gateway devices supplied by telecommunication service providers which integrate the DECT/CAT-iq functionality and also address home automation applications, as well as fixed-mobile convergence solutions. | |||||||||||||||||
Office - Comprehensive solution for Voice-over-IP (VoIP) office products, including office solutions that offer businesses of all size low-cost VoIP terminals with converged voice and data applications. | |||||||||||||||||
Mobile - Products for the mobile market that provides voice enhancement and far-end noise elimination targeted for mobile phone and mobile headsets. | |||||||||||||||||
Segment data: | |||||||||||||||||
The Company derives the results of its business segments directly from its internal management reporting system and by using certain allocation methods. The accounting policies the Company uses to derive business segment results are substantially the same as those the Company uses for consolidation of its financial statements. The CODM measures the performance of each business segment based on several metrics, including earnings from operations. The CODM uses these results, in part, to evaluate the performance of, and to assign resources to, each of the business segments. The Company does not allocate to its business segments certain operating expenses, which it manages separately at the corporate level. These unallocated costs include primarily restructuring charges, amortization of purchased intangible assets, equity-based compensation expenses, proxy contest related expenses incurred during the second quarter of 2013 and certain corporate governance costs. | |||||||||||||||||
Selected operating results information for each business segment was as follows for the three months ended March 31, 2014 and 2013: | |||||||||||||||||
Three months ended March 31, | |||||||||||||||||
Revenues | Income (loss) from operations | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Home | $ | 30,705 | $ | 37,240 | $ | 4,604 | $ | 6,601 | |||||||||
Office | $ | 2,181 | $ | 2,410 | $ | (568 | ) | $ | (1,645 | ) | |||||||
Mobile | $ | - | $ | - | $ | (3,016 | ) | $ | (2,430 | ) | |||||||
Total | $ | 32,886 | $ | 39,650 | $ | 1,020 | $ | 2,526 | |||||||||
The reconciliation of segment operating results information to the Company’s consolidated financial information was as follows: | |||||||||||||||||
Three months ended March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Income (loss) from operations | $ | 1,020 | $ | 2,526 | |||||||||||||
Unallocated corporate, general and administrative expenses | (570 | ) | (601 | ) | |||||||||||||
Equity-based compensation expenses | (1,443 | ) | (1,043 | ) | |||||||||||||
Intangible assets amortization expenses | (397 | ) | (418 | ) | |||||||||||||
Financial income, net | 412 | 570 | |||||||||||||||
Total consolidated income (loss) before taxes | $ | (978 | ) | $ | 1,034 | ||||||||||||
Note_14_Accumulated_Other_Comp
Note 14 - Accumulated Other Comprehensive Income (Loss) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Accumulated Other Comprehensive Income Loss [Abstract] | ' | ||||||||||||||||||||
Accumulated Other Comprehensive Income Loss [Text Block] | ' | ||||||||||||||||||||
NOTE N —ACCUMULATED OTHER COMPREHENSIVE INCOME | |||||||||||||||||||||
The following table summarizes the changes in accumulated balances of other comprehensive income for the three months ended March 31, 2014: | |||||||||||||||||||||
Unrealized gains (losses) on available-for-sale marketable securities | Unrealized gains (losses) on Cash Flow Hedges | Unrealized gains (losses) on components of defined benefit plans | Unrealized gains (Losses) on foreign currency translation | Total | |||||||||||||||||
Beginning balance | $ | (391 | ) | $ | - | $ | (237 | ) | $ | (193 | ) | $ | (821 | ) | |||||||
Other comprehensive income before reclassifications | (60 | ) | 3 | - | (6 | ) | (63 | ) | |||||||||||||
Amounts reclassified from accumulated other comprehensive income | (60 | ) | (2 | ) | 3 | - | (59 | ) | |||||||||||||
Net current period other comprehensive income | (120 | ) | 1 | 3 | (6 | ) | (122 | ) | |||||||||||||
Ending balance | $ | (511 | ) | $ | 1 | $ | (234 | ) | $ | (199 | ) | $ | (943 | ) | |||||||
The following table provides details about reclassifications out of accumulated other comprehensive income for the three months ended March 31, 2014: | |||||||||||||||||||||
Details about Accumulated Other Comprehensive | Amount | Affected Line Item in the | |||||||||||||||||||
Income Components | Reclassified from | Statement of Income | |||||||||||||||||||
Accumulated Other | |||||||||||||||||||||
Comprehensive | |||||||||||||||||||||
Income | |||||||||||||||||||||
(In millions) | |||||||||||||||||||||
Gains on available-for-sale marketable securities | $ | (60 | ) | Financial income, net | |||||||||||||||||
- | Provision for income taxes | ||||||||||||||||||||
(60 | ) | Total, net of income taxes | |||||||||||||||||||
Gains on cash flow hedges - | |||||||||||||||||||||
(2 | ) | Research and development | |||||||||||||||||||
- | Sales and marketing | ||||||||||||||||||||
- | General and administrative | ||||||||||||||||||||
(2 | ) | Total, before income taxes | |||||||||||||||||||
- | Provision for income taxes | ||||||||||||||||||||
(2 | ) | Total, net of income taxes | |||||||||||||||||||
Losses on components of defined benefit plans | 2 | Research and development | |||||||||||||||||||
1 | Sales and marketing | ||||||||||||||||||||
3 | Total, before income taxes | ||||||||||||||||||||
- | Provision for income taxes | ||||||||||||||||||||
3 | Total, net of income taxes | ||||||||||||||||||||
Total reclassifications for the period | (59 | ) | Total, net of income taxes | ||||||||||||||||||
Note_15_Government_Grants
Note 15 - Government Grants | 3 Months Ended |
Mar. 31, 2014 | |
Government Grants [Abstract] | ' |
Government Grants [Text Block] | ' |
NOTE O – GOVERNMENT GRANTS | |
Government grants received by the Company’s Israeli subsidiary relating to categories of operating expenditures are credited to the consolidated statements of income during the period during which the expenditure to which they relate is charged. Royalty and non-royalty-bearing grants from the Israeli Office of the Chief Scientist ("OCS") for funding certain approved research and development projects are recognized at the time when the Company’s Israeli subsidiary is entitled to such grants, on the basis of the related costs incurred, and are included as a deduction from research and development expenses, net. | |
The Company recorded grants in the amounts of $0.9 million and $0 million for the first quarters of 2014 and 2013, respectively. | |
The Company’s Israeli subsidiary is obligated to pay royalties amounting to 5% of the sales of certain products the development of which received grants from the OCS in previous years. The obligation to pay these royalties is contingent on actual sales of such products. Grants received from the OCS may become repayable if certain criteria under the grants are not met. In addition, the grants may be required to be repaid with a multiple of up to six times the initial grant amount in case the technology that was developed using these grants are transferred, directly or indirectly, to a third party. |
Note_2_Inventories_Tables
Note 2 - Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory, Current [Table Text Block] | ' | ||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
(Unaudited) | (Audited) | ||||||||
Work-in-process | $ | 7,431 | $ | 5,412 | |||||
Finished goods | 4,762 | 6,922 | |||||||
$ | 12,193 | $ | 12,334 |
Note_3_Net_Income_Loss_Per_Sha1
Note 3 - Net Income (Loss) Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Net income (loss) | $ | (988 | ) | $ | 1,172 | ||||
Income (loss) per share: | |||||||||
Basic | $ | (0.04 | ) | $ | 0.05 | ||||
Diluted | $ | (0.04 | ) | $ | 0.05 | ||||
Weighted average number of shares of common stock outstanding during the period used to compute basic net income (loss) per share (in thousands) | 22,378 | 21,897 | |||||||
Incremental shares attributable to exercise of outstanding options, stock appreciation rights and restricted shares units (assuming proceeds would be used to purchase treasury stock) (in thousands) | - | 349 | |||||||
Weighted average number of shares of common stock used to compute diluted net income (loss) per share (in thousands) | 22,378 | 22,246 |
Note_4_Marketable_Securities_A1
Note 4 - Marketable Securities And Time Deposits (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Available-for-sale Securities [Table Text Block] | ' | ||||||||||||||||||||||||
Amortized cost | Unrealized gains (losses), net | Fair value | |||||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | March 31, | December 31, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
(Unaudited) | (Audited) | (Unaudited) | (Audited) | (Unaudited) | (Audited) | ||||||||||||||||||||
Short term deposits | $ | 2,905 | $ | 2,911 | $ | - | $ | - | $ | 2,905 | $ | 2,911 | |||||||||||||
U.S. GSE securities | 2,667 | 3,093 | (8 | ) | (11 | ) | 2,659 | 3,082 | |||||||||||||||||
Corporate obligations | 97,618 | 98,444 | (504 | ) | (380 | ) | 97,114 | 98,064 | |||||||||||||||||
$ | 103,190 | $ | 104,448 | $ | (512 | ) | $ | (391 | ) | $ | 102,678 | $ | 104,057 | ||||||||||||
Schedule of Unrealized Loss on Investments [Table Text Block] | ' | ||||||||||||||||||||||||
Unrealized gains (losses) | |||||||||||||||||||||||||
Amortized | Gains | Losses | Fair value | ||||||||||||||||||||||
cost | |||||||||||||||||||||||||
Due in one year or less | $ | 10,538 | $ | 16 | $ | (1 | ) | $ | 10,553 | ||||||||||||||||
Due after one year to five years | 89,747 | 122 | (649 | ) | 89,220 | ||||||||||||||||||||
$ | 100,285 | $ | 138 | $ | (650 | ) | $ | 99,773 |
Note_7_Derivative_Instruments_
Note 7 - Derivative Instruments (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | ' | |||||||||||
Fair Value of Derivative Instruments | ||||||||||||
Balance Sheet Location | As of March 31, | As of December 31, | ||||||||||
2014 | 2013 | |||||||||||
Derivative Assets | ||||||||||||
Foreign exchange forward contracts and put options | Other accounts receivable and prepaid expenses (*) | 1 | - | |||||||||
Total | $ | 1 | $ | - | ||||||||
Derivative Instruments, Gain (Loss) [Table Text Block] | ' | |||||||||||
Gains on Derivatives Recognized in OCI | ||||||||||||
for the three months ended March 31, | ||||||||||||
2014 | 2013 | |||||||||||
Foreign exchange forward and put options contracts | $ | 3 | $ | 176 | ||||||||
Gains (losses) on Derivatives Reclassified from OCI into Income | ||||||||||||
for the three months ended March 31, | ||||||||||||
Location | 2014 | 2013 | ||||||||||
Foreign exchange forward and put options contracts | Operating expenses | $ | 2 | $ | 141 |
Note_9_EquityBased_Compensatio1
Note 9 - Equity-Based Compensation (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||||||||||||||||
Three months ended | Three months ended | ||||||||||||||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||||||||||||||
Volatility (1) | 43.14% | 46.23% | |||||||||||||||||||||||
Risk-free interest rate (1) | 2.64% | 1.40% | |||||||||||||||||||||||
Dividend yield (1) | 0% | 0% | |||||||||||||||||||||||
Pre-vest cancellation rate | 3.94% | 3.75% | |||||||||||||||||||||||
Post-vest cancellation rate (1) | 4.09% | 1.31% | |||||||||||||||||||||||
Suboptimal exercise factor (1) | 1.61 | 1.75 | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | ' | ||||||||||||||||||||||||
Number of | Weighted | Weighted Average | Aggregate Value (*) | ||||||||||||||||||||||
Options/SARs / | Average | Remaining | |||||||||||||||||||||||
RSUs | Exercise Price | Contractual | |||||||||||||||||||||||
Term (years) (3) | |||||||||||||||||||||||||
in thousands | in thousands | ||||||||||||||||||||||||
Outstanding at January 1, 2014 | 6,537 | $ | 8.68 | ||||||||||||||||||||||
Options granted | 232 | $ | 9.15 | ||||||||||||||||||||||
RSUs granted | 332 | - | |||||||||||||||||||||||
Options / SARs / RSUs cancelled/forfeited/expired | (608 | ) | $ | 21.38 | |||||||||||||||||||||
Options / SARs / RSUs exercised | (264 | ) | $ | 4.32 | |||||||||||||||||||||
Outstanding at March 31, 2014 (1) | 6,229 | $ | 7.18 | 3.46 | 13,639 | ||||||||||||||||||||
Exercisable at March 31, 2014 (2) | 4,153 | $ | 8.57 | 2.63 | 4,716 | ||||||||||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | ' | ||||||||||||||||||||||||
Exercisable | Unexercisable | Total | |||||||||||||||||||||||
Exercise Prices | Number of | Weighted | Number of | Weighted | Number of | Weighted | |||||||||||||||||||
Options/ | Average | Options/ | Average | Options/ | Average | ||||||||||||||||||||
SARs / | Exercise | SARs / | Exercise | SARs / | Exercise | ||||||||||||||||||||
RSUs (in | Price | RSUs (in | Price | RSUs (in | Price | ||||||||||||||||||||
thousands) | thousands) | thousands) | |||||||||||||||||||||||
Above $8.64 | 1,471 | $ | 11.64 | 124 | $ | 9.71 | 1,595 | $ | 11.49 | ||||||||||||||||
Less than $8.64 | 2,682 | $ | 6.88 | 1,952 | $ | 4.07 | 4,634 | $ | 5.7 | ||||||||||||||||
Total | 4,153 | $ | 8.57 | 2,076 | $ | 4.4 | 6,229 | $ | 7.18 |
Note_10_Pension_Liability_Tabl
Note 10 - Pension Liability (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||
Schedule of Net Benefit Costs [Table Text Block] | ' | ||||||||
31-Mar-14 | 31-Mar-13 | ||||||||
Components of net periodic benefit cost: | |||||||||
Service cost and amortization of loss | $ | 4 | $ | 4 | |||||
Interest cost | 7 | 9 | |||||||
Expected return on plan assets | (1 | ) | (2 | ) | |||||
Net periodic benefit cost | $ | 10 | $ | 11 |
Note_11_Fair_Value_Measurement1
Note 11 - Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | ' | ||||||||||||||||
Balance as of | Fair Value Measurements | ||||||||||||||||
31-Mar-14 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Description | |||||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
Time deposits | $ | 702 | - | $ | 702 | - | |||||||||||
Money market mutual funds | $ | 4,045 | $ | 4,045 | - | - | |||||||||||
Short-term marketable securities and cash deposits: | |||||||||||||||||
Time deposits | $ | 2,905 | - | $ | 2,905 | - | |||||||||||
U.S. GSE securities | $ | 251 | - | $ | 251 | - | |||||||||||
Corporate debt securities | $ | 10,302 | - | $ | 10,302 | - | |||||||||||
Long-term marketable securities: | |||||||||||||||||
U.S. GSE securities | $ | 2,408 | - | $ | 2,408 | - | |||||||||||
Corporate debt securities | $ | 86,812 | - | $ | 86,812 | - | |||||||||||
Derivative assets | $ | 1 | - | $ | 1 | - | |||||||||||
Balance as of | Fair Value Measurements | ||||||||||||||||
December 31, | Level 1 | Level 2 | Level 3 | ||||||||||||||
2013 | |||||||||||||||||
Description | |||||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
Time deposits | $ | 913 | - | $ | 913 | - | |||||||||||
Money market mutual funds | $ | 3,762 | $ | 3,762 | - | - | |||||||||||
Short-term marketable securities and time deposits: | |||||||||||||||||
U.S. GSE securities | $ | 251 | - | $ | 251 | - | |||||||||||
Corporate debt securities | $ | 10,733 | - | $ | 10,733 | - | |||||||||||
Time deposits | $ | 2,911 | - | $ | 2,911 | - | |||||||||||
Long-term marketable securities: | |||||||||||||||||
U.S. GSE securities | $ | 2,831 | - | $ | 2,831 | - | |||||||||||
Corporate debt securities | $ | 87,331 | - | $ | 87,331 | - |
Note_13_Segment_Information_Ta
Note 13 - Segment Information (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | ||||||||||||||||
Three months ended March 31, | |||||||||||||||||
Revenues | Income (loss) from operations | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Home | $ | 30,705 | $ | 37,240 | $ | 4,604 | $ | 6,601 | |||||||||
Office | $ | 2,181 | $ | 2,410 | $ | (568 | ) | $ | (1,645 | ) | |||||||
Mobile | $ | - | $ | - | $ | (3,016 | ) | $ | (2,430 | ) | |||||||
Total | $ | 32,886 | $ | 39,650 | $ | 1,020 | $ | 2,526 | |||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | ' | ||||||||||||||||
Three months ended March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Income (loss) from operations | $ | 1,020 | $ | 2,526 | |||||||||||||
Unallocated corporate, general and administrative expenses | (570 | ) | (601 | ) | |||||||||||||
Equity-based compensation expenses | (1,443 | ) | (1,043 | ) | |||||||||||||
Intangible assets amortization expenses | (397 | ) | (418 | ) | |||||||||||||
Financial income, net | 412 | 570 | |||||||||||||||
Total consolidated income (loss) before taxes | $ | (978 | ) | $ | 1,034 |
Note_14_Accumulated_Other_Comp1
Note 14 - Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Accumulated Other Comprehensive Income Loss [Abstract] | ' | ||||||||||||||||||||
Summary Of Change In Accumulated Other Comprehensive Income Table [Text Block] | ' | ||||||||||||||||||||
Unrealized gains (losses) on available-for-sale marketable securities | Unrealized gains (losses) on Cash Flow Hedges | Unrealized gains (losses) on components of defined benefit plans | Unrealized gains (Losses) on foreign currency translation | Total | |||||||||||||||||
Beginning balance | $ | (391 | ) | $ | - | $ | (237 | ) | $ | (193 | ) | $ | (821 | ) | |||||||
Other comprehensive income before reclassifications | (60 | ) | 3 | - | (6 | ) | (63 | ) | |||||||||||||
Amounts reclassified from accumulated other comprehensive income | (60 | ) | (2 | ) | 3 | - | (59 | ) | |||||||||||||
Net current period other comprehensive income | (120 | ) | 1 | 3 | (6 | ) | (122 | ) | |||||||||||||
Ending balance | $ | (511 | ) | $ | 1 | $ | (234 | ) | $ | (199 | ) | $ | (943 | ) | |||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | ' | ||||||||||||||||||||
Details about Accumulated Other Comprehensive | Amount | Affected Line Item in the | |||||||||||||||||||
Income Components | Reclassified from | Statement of Income | |||||||||||||||||||
Accumulated Other | |||||||||||||||||||||
Comprehensive | |||||||||||||||||||||
Income | |||||||||||||||||||||
(In millions) | |||||||||||||||||||||
Gains on available-for-sale marketable securities | $ | (60 | ) | Financial income, net | |||||||||||||||||
- | Provision for income taxes | ||||||||||||||||||||
(60 | ) | Total, net of income taxes | |||||||||||||||||||
Gains on cash flow hedges - | |||||||||||||||||||||
(2 | ) | Research and development | |||||||||||||||||||
- | Sales and marketing | ||||||||||||||||||||
- | General and administrative | ||||||||||||||||||||
(2 | ) | Total, before income taxes | |||||||||||||||||||
- | Provision for income taxes | ||||||||||||||||||||
(2 | ) | Total, net of income taxes | |||||||||||||||||||
Losses on components of defined benefit plans | 2 | Research and development | |||||||||||||||||||
1 | Sales and marketing | ||||||||||||||||||||
3 | Total, before income taxes | ||||||||||||||||||||
- | Provision for income taxes | ||||||||||||||||||||
3 | Total, net of income taxes | ||||||||||||||||||||
Total reclassifications for the period | (59 | ) | Total, net of income taxes |
Note_2_Inventories_Details
Note 2 - Inventories (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Inventory Disclosure [Abstract] | ' | ' |
Inventory Write-down | $49 | $160 |
Note_2_Inventories_Details_Com
Note 2 - Inventories (Details) - Components of Inventories (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Components of Inventories [Abstract] | ' | ' |
Work-in-process | $7,431 | $5,412 |
Finished goods | 4,762 | 6,922 |
$12,193 | $12,334 |
Note_3_Net_Income_Loss_Per_Sha2
Note 3 - Net Income (Loss) Per Share (Details) - Net Income (Loss) Per Share (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net Income (Loss) Per Share [Abstract] | ' | ' |
Net income (loss) (in Dollars) | ($988) | $1,172 |
Income (loss) per share: | ' | ' |
Basic (in Dollars per share) | ($0.04) | $0.05 |
Diluted (in Dollars per share) | ($0.04) | $0.05 |
Weighted average number of shares of common stock outstanding during the period used to compute basic net income (loss) per share (in thousands) | 22,378 | 21,897 |
Incremental shares attributable to exercise of outstanding options, stock appreciation rights and restricted shares units (assuming proceeds would be used to purchase treasury stock) (in thousands) | ' | 349 |
Weighted average number of shares of common stock used to compute diluted net income (loss) per share (in thousands) | 22,378 | 22,246 |
Note_4_Marketable_Securities_A2
Note 4 - Marketable Securities And Time Deposits (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Note 4 - Marketable Securities And Time Deposits (Details) [Line Items] | ' | ' |
Marketable Securities, Realized Loss, Other than Temporary Impairments, Amount | $0 | ' |
Marketable Securities Unrealized Loss Position, Fair Value | 54,287,000 | ' |
Marketable Securities, Unrealized Gain (Loss) | 650,000 | ' |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 650,000 | ' |
Proceeds From Maturity Of Marketable Securities | 3,020,000 | 6,056,000 |
Proceeds From Sales Of Marketable Securities | 21,851,000 | 7,937,000 |
Profit Loss From Sale Of Marketable Securities And Other Than Temporary Impairment On Marketable Securities | 60,000 | 163,000 |
Outstanding More than 12 Months [Member] | ' | ' |
Note 4 - Marketable Securities And Time Deposits (Details) [Line Items] | ' | ' |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 282,000 | ' |
Outstanding Less Than 12 Months [Member] | ' | ' |
Note 4 - Marketable Securities And Time Deposits (Details) [Line Items] | ' | ' |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | $368,000 | ' |
Note_4_Marketable_Securities_A3
Note 4 - Marketable Securities And Time Deposits (Details) - Summary of Available-for-Sale Securities and Short-term Deposits (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | $103,190 | $104,448 |
Unrealized gains (losses), net | -512 | -391 |
Estimated fair value | 102,678 | 104,057 |
Short-term Deposits [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 2,905 | 2,911 |
Estimated fair value | 2,905 | 2,911 |
U.S.GSE Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 2,667 | 3,093 |
Unrealized gains (losses), net | -8 | -11 |
Estimated fair value | 2,659 | 3,082 |
Corporate Obligations [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 97,618 | 98,444 |
Unrealized gains (losses), net | -504 | -380 |
Estimated fair value | $97,114 | $98,064 |
Note_4_Marketable_Securities_A4
Note 4 - Marketable Securities And Time Deposits (Details) - Amortized Cost of Short-Term Deposits and Available-For-Sale Debt Securities by Contractual Maturities (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Note 4 - Marketable Securities And Time Deposits (Details) - Amortized Cost of Short-Term Deposits and Available-For-Sale Debt Securities by Contractual Maturities [Line Items] | ' | ' |
Amortized cost | $103,190 | $104,448 |
Unrealized losses | -650 | ' |
Estimated fair value | 102,678 | 104,057 |
Debt Securities [Member] | Due in One Year or Less [Member] | ' | ' |
Note 4 - Marketable Securities And Time Deposits (Details) - Amortized Cost of Short-Term Deposits and Available-For-Sale Debt Securities by Contractual Maturities [Line Items] | ' | ' |
Amortized cost | 10,538 | ' |
Unrealized gains | 16 | ' |
Unrealized losses | -1 | ' |
Estimated fair value | 10,553 | ' |
Debt Securities [Member] | Due after One Year to Five Years [Member] | ' | ' |
Note 4 - Marketable Securities And Time Deposits (Details) - Amortized Cost of Short-Term Deposits and Available-For-Sale Debt Securities by Contractual Maturities [Line Items] | ' | ' |
Amortized cost | 89,747 | ' |
Unrealized gains | 122 | ' |
Unrealized losses | -649 | ' |
Estimated fair value | 89,220 | ' |
Debt Securities [Member] | ' | ' |
Note 4 - Marketable Securities And Time Deposits (Details) - Amortized Cost of Short-Term Deposits and Available-For-Sale Debt Securities by Contractual Maturities [Line Items] | ' | ' |
Amortized cost | 100,285 | ' |
Unrealized gains | 138 | ' |
Unrealized losses | -650 | ' |
Estimated fair value | $99,773 | ' |
Note_5_Taxes_On_Income_Details
Note 5 - Taxes On Income (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $1,890 | $1,892 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $408 | $408 |
Note_6_Significant_Customers_D
Note 6 - Significant Customers (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Vtech Holdings Ltd [Member] | ' | ' |
Note 6 - Significant Customers (Details) [Line Items] | ' | ' |
Concentration Risk, Percentage | 35.00% | 34.00% |
CCT Telecom Holdings Ltd. [Member] | ' | ' |
Note 6 - Significant Customers (Details) [Line Items] | ' | ' |
Concentration Risk, Percentage | 9.00% | 10.00% |
Tomen Electronics Corporation [Member] | ' | ' |
Note 6 - Significant Customers (Details) [Line Items] | ' | ' |
Concentration Risk, Percentage | 20.00% | 14.00% |
Panasonic Communications Corporation [Member] | ' | ' |
Note 6 - Significant Customers (Details) [Line Items] | ' | ' |
Concentration Risk, Percentage | 12.00% | 10.00% |
Note_7_Derivative_Instruments_1
Note 7 - Derivative Instruments (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Note 7 - Derivative Instruments (Details) [Line Items] | ' |
Derivative Instrument Outstanding Option Contracts | $5,500 |
Derivative Asset | 19 |
Derivative Liability | 18 |
Accrued Expenses And Other Accounts Payable Derivative Instrument | 1 |
Hedging Transaction Expenses Research And Development | 2 |
Hedging Transaction Expenses Sales And Marketing | 0 |
Hedging Transaction Expenses General And Administrative Expenses | $0 |
Minimum [Member] | ' |
Note 7 - Derivative Instruments (Details) [Line Items] | ' |
Derivative Instrument Hedging Period | '1 month |
Maximum [Member] | ' |
Note 7 - Derivative Instruments (Details) [Line Items] | ' |
Derivative Instrument Hedging Period | '12 months |
Note_7_Derivative_Instruments_2
Note 7 - Derivative Instruments (Details) - The Fair Value of the Derivative Instruments (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Assets | $1 | ' | ||
Other Accounts Receivable and Prepaid Expenses [Member] | Foreign Exchange Forward Contracts and Put Options [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Assets | $1 | [1] | ' | [1] |
[1] | Estimated to be reclassified into earnings during 2014. |
Note_7_Derivative_Instruments_3
Note 7 - Derivative Instruments (Details) - Effect of Derivative Instruments in Cash Flow Hedging Transactions on Income and Other Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Foreign exchange forward and put options contracts | ' | $141 |
Gains (Losses) on Derivatives Recognized in OCI [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Foreign exchange forward and put options contracts | 3 | 176 |
Foreign exchange forward and put options contracts | $2 | ' |
Note_9_EquityBased_Compensatio2
Note 9 - Equity-Based Compensation (Details) (USD $) | 3 Months Ended | 1 Months Ended | |||||||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Jan. 31, 2012 | Jan. 31, 2011 | Jan. 31, 2010 | Jan. 31, 2009 | Mar. 31, 2014 |
Options and Stock Appreciation Rights [Member] | Options and Stock Appreciation Rights [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | |||
Note 9 - Equity-Based Compensation (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $6.62 | $4.30 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | ' | ' | '3 years 98 days | '4 years 193 days | ' | ' | ' | ' | ' |
Number Of Equity Incentive Plans | 2 | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock Available For Grant Under Employee Stock Purchase Plan (in Shares) | 529,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Common Sock Available For Grant Under Companys Equity Incentive Plans (in Shares) | 565,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate Intrinsic Value On Share Price (in Dollars per share) | $8.64 | ' | ' | ' | ' | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares To Be Issued Upon Exercise Of Outstanding Awards (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | 4,636 |
Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant As Percentage Of Company S Outstanding Common Stock | ' | ' | ' | ' | 50.00% | 66.67% | 75.00% | 50.00% | ' |
Share Based Compensation Arrangement By Share Based Payment Award Options And Stock Appreciation Rights Exercisable Number (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | 2,837 |
Allocated Share-based Compensation Expense (in Dollars) | $1,443 | $1,043 | ' | ' | ' | ' | ' | ' | ' |
Unrecognized Compensation Expense Related To Unvested Equity Based Compensation Awards (in Dollars) | $6,605 | ' | ' | ' | ' | ' | ' | ' | ' |
Note_9_EquityBased_Compensatio3
Note 9 - Equity-Based Compensation (Details) - Weighted Average Assumptions | 3 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | |||
Weighted Average Assumptions [Abstract] | ' | ' | ||
Volatility (1) | 43.14% | [1] | 46.23% | [1] |
Risk-free interest rate (1) | 2.64% | [1] | 1.40% | [1] |
Dividend yield (1) | 0.00% | [1] | 0.00% | [1] |
Pre-vest cancellation rate | 3.94% | [1] | 3.75% | [1] |
Post-vest cancellation rate (1) | 4.09% | [1] | 1.31% | [1] |
Suboptimal exercise factor (1) | 1.61 | [1] | 1.75 | [1] |
[1] | The RSUs granted during the three months ended March 31, 2014 and 2013 were not included in the average calculated numbers in the table above since those assumptions were not used in the RSU calculation. |
Note_9_EquityBased_Compensatio4
Note 9 - Equity-Based Compensation (Details) - Company’s Stock Option, SAR and Restricted Stock Unit Grants to Equity Incentive Plans (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | |
Company’s Stock Option, SAR and Restricted Stock Unit Grants to Equity Incentive Plans [Abstract] | ' | |
Outstanding at January 1, 2014 | 6,537 | |
Outstanding at January 1, 2014 (in Dollars per share) | $8.68 | |
Options granted | 232 | |
Options granted (in Dollars per share) | $9.15 | |
RSUs granted | 332 | |
Options / SARs / RSUs cancelled/forfeited/expired | -608 | |
Options / SARs / RSUs cancelled/forfeited/expired (in Dollars per share) | $21.38 | |
Options / SARs / RSUs exercised | -264 | |
Options / SARs / RSUs exercised (in Dollars per share) | $4.32 | |
Outstanding at March 31, 2014 (1) | 6,229 | [1] |
Outstanding at March 31, 2014 (1) (in Dollars per share) | $7.18 | [1] |
Outstanding at March 31, 2014 (1) | '3 years 167 days | [1],[2] |
Outstanding at March 31, 2014 (1) (in Dollars) | $13,639 | [1],[3] |
Exercisable at March 31, 2014 (2) | 4,153 | [4] |
Exercisable at March 31, 2014 (2) (in Dollars per share) | $8.57 | [4] |
Exercisable at March 31, 2014 (2) | '2 years 229 days | [2],[4] |
Exercisable at March 31, 2014 (2) (in Dollars) | $4,716 | [3],[4] |
[1] | Due to the ceiling imposed on the SAR grants, the outstanding amount above can be exercised for a maximum of 4,636 shares of the Company's common stock as of March 31, 2014. SAR grants made prior to January 1, 2009 are convertible for a maximum number of shares of the Company's common stock equal to 50% of the SARs subject to the grant. SAR grants made on or after January 1, 2009 and before January 1, 2010 are convertible for a maximum number of shares of the Company's common stock equal to 75% of the SARs subject to the grant. SAR grants made on or after January 1, 2010 and before January 1, 2012 are convertible for a maximum number of shares of the Company's common stock equal to 66.67% of the SARs subject to the grant. SAR grants made on or after January 1, 2012 are convertible for a maximum number of shares of the Company's common stock equal to 50% of the SARs subject to the grant. | |
[2] | Calculation of weighted average remaining contractual term does not include the RSUs that were granted, which have indefinite contractual term. | |
[3] | Calculation of aggregate intrinsic value is based on the share price of the Company's common stock on March 31, 2014 ($8.64 per share). | |
[4] | Due to the ceiling imposed on the SAR grants, the exercisable amount above can be exercised for a maximum of 2,837 shares of the Company's common stock as of March 31, 2014. |
Note_9_EquityBased_Compensatio5
Note 9 - Equity-Based Compensation (Details) - Company's Stock Options and SAR Units Outstanding and Exercisable (USD $) | Mar. 31, 2014 |
In Thousands, except Per Share data, unless otherwise specified | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercisable, Number of Options/ SARs/ RSUs | 4,153 |
Exercisable, Weighted Average Exercise Price | $8.57 |
Unexercisable, Number of Options/ SARs/ RSUs | 2,076 |
Unexercisable, Weighted Average Exercise Price | $4.40 |
Total, Number of Options/ SARs/ RSUs | 6,229 |
Total, Weighted Average Exercise Price | $7.18 |
Above $8.64 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercisable, Number of Options/ SARs/ RSUs | 1,471 |
Exercisable, Weighted Average Exercise Price | $11.64 |
Unexercisable, Number of Options/ SARs/ RSUs | 124 |
Unexercisable, Weighted Average Exercise Price | $9.71 |
Total, Number of Options/ SARs/ RSUs | 1,595 |
Total, Weighted Average Exercise Price | $11.49 |
Less Than $8.64 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercisable, Number of Options/ SARs/ RSUs | 2,682 |
Exercisable, Weighted Average Exercise Price | $6.88 |
Unexercisable, Number of Options/ SARs/ RSUs | 1,952 |
Unexercisable, Weighted Average Exercise Price | $4.07 |
Total, Number of Options/ SARs/ RSUs | 4,634 |
Total, Weighted Average Exercise Price | $5.70 |
Note_10_Pension_Liability_Deta
Note 10 - Pension Liability (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Compensation and Retirement Disclosure [Abstract] | ' |
Pension Expense | $988 |
Note_10_Pension_Liability_Deta1
Note 10 - Pension Liability (Details) - Components of Net Pension and Post-Retirement Periodic Benefit Costs (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Components of Net Pension and Post-Retirement Periodic Benefit Costs [Abstract] | ' | ' |
Service cost and amortization of loss | $4 | $4 |
Interest cost | 7 | 9 |
Expected return on plan assets | -1 | -2 |
Net periodic benefit cost | $10 | $11 |
Note_11_Fair_Value_Measurement2
Note 11 - Fair Value Measurements (Details) - Fair Value Measurements of Assets and Liabilities on Recurring Basis (Fair Value, Measurements, Recurring [Member], USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Note 11 - Fair Value Measurements (Details) - Fair Value Measurements of Assets and Liabilities on Recurring Basis [Line Items] | ' | ' |
Derivative assets | $1 | ' |
Time Deposits [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Note 11 - Fair Value Measurements (Details) - Fair Value Measurements of Assets and Liabilities on Recurring Basis [Line Items] | ' | ' |
Cash equivalents | 702 | 913 |
Short-term marketable securities and cash deposits | 2,905 | 2,911 |
Time Deposits [Member] | ' | ' |
Note 11 - Fair Value Measurements (Details) - Fair Value Measurements of Assets and Liabilities on Recurring Basis [Line Items] | ' | ' |
Cash equivalents | 702 | 913 |
Short-term marketable securities and cash deposits | 2,905 | 2,911 |
Money Market Mutual Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Note 11 - Fair Value Measurements (Details) - Fair Value Measurements of Assets and Liabilities on Recurring Basis [Line Items] | ' | ' |
Cash equivalents | 4,045 | 3,762 |
Money Market Mutual Funds [Member] | ' | ' |
Note 11 - Fair Value Measurements (Details) - Fair Value Measurements of Assets and Liabilities on Recurring Basis [Line Items] | ' | ' |
Cash equivalents | 4,045 | 3,762 |
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Note 11 - Fair Value Measurements (Details) - Fair Value Measurements of Assets and Liabilities on Recurring Basis [Line Items] | ' | ' |
Short-term marketable securities and cash deposits | 251 | 251 |
Long-term marketable securities | 2,408 | 2,831 |
US Government-sponsored Enterprises Debt Securities [Member] | ' | ' |
Note 11 - Fair Value Measurements (Details) - Fair Value Measurements of Assets and Liabilities on Recurring Basis [Line Items] | ' | ' |
Short-term marketable securities and cash deposits | 251 | 251 |
Long-term marketable securities | 2,408 | 2,831 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Note 11 - Fair Value Measurements (Details) - Fair Value Measurements of Assets and Liabilities on Recurring Basis [Line Items] | ' | ' |
Short-term marketable securities and cash deposits | 10,302 | 10,733 |
Long-term marketable securities | 86,812 | 87,331 |
Corporate Debt Securities [Member] | ' | ' |
Note 11 - Fair Value Measurements (Details) - Fair Value Measurements of Assets and Liabilities on Recurring Basis [Line Items] | ' | ' |
Short-term marketable securities and cash deposits | 10,302 | 10,733 |
Long-term marketable securities | 86,812 | 87,331 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Note 11 - Fair Value Measurements (Details) - Fair Value Measurements of Assets and Liabilities on Recurring Basis [Line Items] | ' | ' |
Derivative assets | $1 | ' |
Note_12_Stockholders_Equity_De
Note 12 - Stockholders' Equity (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Stockholders' Equity Note [Abstract] | ' |
Stock Repurchased During Period, Shares | 596,098 |
Treasury Stock Acquired, Average Cost Per Share (in Dollars per share) | $8.83 |
Stock Repurchased During Period, Value (in Dollars) | $5,263,000 |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 2,021,729 |
Stock Issued During Period, Shares, Treasury Stock Reissued | 373,000 |
Note_13_Segment_Information_De
Note 13 - Segment Information (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Segment Reporting [Abstract] | ' |
Number of Reportable Segments | 3 |
Note_13_Segment_Information_De1
Note 13 - Segment Information (Details) - Selected Operating Results (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | $32,886 | $39,650 |
Income (loss) from operations | 1,020 | 2,526 |
Home [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | 30,705 | 37,240 |
Income (loss) from operations | 4,604 | 6,601 |
Office [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | 2,181 | 2,410 |
Income (loss) from operations | -568 | -1,645 |
Mobile [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Income (loss) from operations | ($3,016) | ($2,430) |
Note_13_Segment_Information_De2
Note 13 - Segment Information (Details) - The Reconciliation of Segment Operating Results (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
The Reconciliation of Segment Operating Results [Abstract] | ' | ' |
Income (loss) from operations | $1,020 | $2,526 |
Unallocated corporate, general and administrative expenses | -570 | -601 |
Equity-based compensation expenses | -1,443 | -1,043 |
Intangible assets amortization expenses | -397 | -418 |
Financial income, net | 412 | 570 |
Total consolidated income (loss) before taxes | ($979) | $1,034 |
Note_14_Accumulated_Other_Comp2
Note 14 - Accumulated Other Comprehensive Income (Loss) (Details) - Changes in Accumulated Other Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Note 14 - Accumulated Other Comprehensive Income (Loss) (Details) - Changes in Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning balance | ($821) | ' |
Net current period other comprehensive income | -122 | 202 |
Ending balance | -943 | ' |
Other comprehensive income before reclassifications | -63 | ' |
Amounts reclassified from accumulated other comprehensive income | -59 | ' |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ' | ' |
Note 14 - Accumulated Other Comprehensive Income (Loss) (Details) - Changes in Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning balance | -391 | ' |
Net current period other comprehensive income | -120 | ' |
Ending balance | -511 | ' |
Other comprehensive income before reclassifications | -60 | ' |
Amounts reclassified from accumulated other comprehensive income | -60 | ' |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' |
Note 14 - Accumulated Other Comprehensive Income (Loss) (Details) - Changes in Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Net current period other comprehensive income | 1 | ' |
Ending balance | 1 | ' |
Other comprehensive income before reclassifications | 3 | ' |
Amounts reclassified from accumulated other comprehensive income | -2 | ' |
Accumulated Defined Benefit Plans Adjustment [Member] | ' | ' |
Note 14 - Accumulated Other Comprehensive Income (Loss) (Details) - Changes in Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning balance | -237 | ' |
Net current period other comprehensive income | 3 | ' |
Ending balance | -234 | ' |
Amounts reclassified from accumulated other comprehensive income | 3 | ' |
Accumulated Translation Adjustment [Member] | ' | ' |
Note 14 - Accumulated Other Comprehensive Income (Loss) (Details) - Changes in Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning balance | -193 | ' |
Net current period other comprehensive income | -6 | ' |
Ending balance | -199 | ' |
Other comprehensive income before reclassifications | ($6) | ' |
Note_14_Accumulated_Other_Comp3
Note 14 - Accumulated Other Comprehensive Income (Loss) (Details) - Reclassifications Out of Accumulated Other Comprehensive Income (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Gains on available-for-sale marketable securities | $13,014 | $15,706 | ||
Research and development | 8,205 | [1] | 9,151 | [1] |
Sales and marketing | 3,086 | [2] | 3,051 | [2] |
Total, before income taxes | -979 | 1,034 | ||
Total, net of income taxes | -988 | 1,172 | ||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Gains (Losses) Reclassified From OCI into Income [Member] | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Gains on available-for-sale marketable securities | -60,000 | ' | ||
Total, net of income taxes | -60,000 | ' | ||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Gains (Losses) Reclassified From OCI into Income [Member] | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Research and development | -2,000 | ' | ||
Total, before income taxes | -2,000 | ' | ||
Total, net of income taxes | -2,000 | ' | ||
Accumulated Defined Benefit Plans Adjustment [Member] | Gains (Losses) Reclassified From OCI into Income [Member] | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Research and development | 2,000 | ' | ||
Sales and marketing | 1,000 | ' | ||
Total, before income taxes | 3,000 | ' | ||
Total, net of income taxes | 3,000 | ' | ||
Gains (Losses) Reclassified From OCI into Income [Member] | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Total, net of income taxes | ($59,000) | ' | ||
[1] | Includes equity-based compensation expense in the amount of $644 and $468 for the three months ended March 31, 2014 and 2013, respectively. | |||
[2] | Includes equity-based compensation expense in the amount of $162 and $135 for the three months ended March 31, 2014 and 2013, respectively. |
Note_15_Government_Grants_Deta
Note 15 - Government Grants (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Government Grants [Abstract] | ' | ' |
Financial Grants In Support Of Research And Development | $0.90 | $0 |