Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 03, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | DSP GROUP INC /DE/ | |
Entity Central Index Key | 915,778 | |
Trading Symbol | dspg | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 21,622,432 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 13,908 | $ 13,704 |
Restricted deposit | 71 | 168 |
Marketable securities and short-term deposits | 25,432 | 18,070 |
Trade receivables | 22,765 | 19,211 |
Other accounts receivable and prepaid expenses | 3,457 | 3,319 |
Inventories | 9,877 | 11,453 |
TOTAL CURRENT ASSETS | 75,510 | 65,925 |
PROPERTY AND EQUIPMENT, NET | 4,004 | 3,764 |
LONG-TERM ASSETS: | ||
Long-term marketable securities | 81,150 | 89,714 |
Long-term prepaid expenses and lease deposits | 1,290 | 743 |
Deferred income taxes | 745 | 1,311 |
Severance pay fund | 12,589 | 11,578 |
Investment in other companies | 1,800 | |
Intangible assets, net | 4,905 | 3,851 |
Goodwill | 6,243 | 5,276 |
106,922 | 114,273 | |
TOTAL ASSETS | 186,436 | 183,962 |
CURRENT LIABILITIES: | ||
Trade payables | 10,692 | 13,103 |
Accrued compensation and benefits | 8,587 | 7,788 |
Income tax accruals and payables | 1,099 | 1,864 |
Accrued expenses and other accounts payable | 3,775 | 5,026 |
Total current liabilities | 24,153 | 27,781 |
LONG-TERM LIABILITIES: | ||
Deferred income taxes | 600 | 476 |
Accrued severance pay | 12,959 | 11,703 |
Accrued pensions | 741 | 684 |
Total long-term liabilities | 14,300 | 12,863 |
Common stock, $ 0.001 par value - Authorized shares: 50,000,000 shares at September 30, 2016 and December 31, 2015; Issued and outstanding shares: 22,008,701 and 21,572,616 shares at September 30, 2016 and December 31, 2015, respectively | 22 | 22 |
Additional paid-in capital | 364,737 | 361,023 |
Treasury stock | (121,476) | (125,697) |
Accumulated other comprehensive loss | (700) | (1,267) |
Accumulated deficit | (94,600) | (90,763) |
Total stockholders’ equity | 147,983 | 143,318 |
Total liabilities and stockholders’ equity | $ 186,436 | $ 183,962 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, issued (in shares) | 22,008,701 | 21,572,616 |
Common stock, outstanding (in shares) | 22,008,701 | 21,572,616 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Revenues | $ 38,768 | $ 35,219 | $ 102,591 | $ 110,501 | |
Cost of revenues (1) | [1] | 21,418 | 20,646 | 57,639 | 65,158 |
Gross profit | 17,350 | 14,573 | 44,952 | 45,343 | |
Operating expenses: | |||||
Research and development, net (2) | [2] | 8,504 | 8,709 | 26,430 | 26,680 |
Sales and marketing (3) | [3] | 3,617 | 3,071 | 10,332 | 9,108 |
General and administrative (4) | [4] | 2,064 | 2,409 | 6,622 | 7,390 |
Intangible assets amortization | 390 | 321 | 1,032 | 963 | |
Other income | (2,549) | (2,549) | |||
Total operating expenses | 12,026 | 14,510 | 41,867 | 44,141 | |
Operating income | 5,324 | 63 | 3,085 | 1,202 | |
Interest and other income, net | 344 | 245 | 910 | 871 | |
Income before taxes on income | 5,668 | 308 | 3,995 | 2,073 | |
Taxes on income | 334 | 141 | 494 | 403 | |
Net income | $ 5,334 | $ 167 | $ 3,501 | $ 1,670 | |
Net earnings per share: | |||||
Basic (in dollars per share) | $ 0.24 | $ 0.01 | $ 0.16 | $ 0.08 | |
Diluted (in dollars per share) | $ 0.23 | $ 0.01 | $ 0.15 | $ 0.07 | |
Basic (in shares) | 21,943 | 21,830 | 21,798 | 22,020 | |
Diluted (in shares) | 23,185 | 22,868 | 22,882 | 23,490 | |
[1] | Includes equity-based compensation expense in the amount of $98 and $75 for the three months ended September 30, 2016 and 2015, and $242 and $228 for the nine months ended September 30, 2016 and 2015, respectively. | ||||
[2] | Includes equity-based compensation expense in the amount of $668 and $546 for the three months ended September 30, 2016 and 2015, respectively; and $1,615 and $1,697 for the nine months ended September 30, 2016 and 2015, respectively. | ||||
[3] | Includes equity-based compensation expense in the amount of $230 and $161 for the three months ended September 30, 2016 and 2015, respectively; and $555 and $491 for the nine months ended September 30, 2016 and 2015, respectively. | ||||
[4] | Includes equity-based compensation expense in the amount of $465 and $479 for the three months ended September 30, 2016 and 2015, respectively; and $1,293 and $1,509 for the nine months ended September 30, 2016 and 2015, respectively. |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Equity-based compensation expense included in cost of revenues | $ 98 | $ 75 | $ 242 | $ 228 |
Equity-based compensation expenses included in research and development, net | 668 | 546 | 1,615 | 1,697 |
Equity-based compensation expense included in sales and marketing | 230 | 161 | 555 | 491 |
Equity-based compensation expense included in general and administrative | $ 465 | $ 479 | $ 1,293 | $ 1,509 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net income | $ 5,334 | $ 167 | $ 3,501 | $ 1,670 |
Changes in unrealized gains/losses | (262) | 397 | 356 | 263 |
Reclassification adjustments for gains included in net income | (15) | 17 | 26 | |
Net change | (277) | 397 | 373 | 289 |
Changes in unrealized gains/losses | 65 | (240) | 123 | (77) |
Reclassification adjustments for gains included in net income | (15) | (4) | 1 | 620 |
Net change | 50 | (244) | 124 | 543 |
Amortization of actuarial loss and prior service benefit | 4 | 5 | 11 | 15 |
Net change | 4 | 5 | 11 | 15 |
Foreign currency translation adjustments, net | (3) | (38) | 59 | (91) |
Net current period other comprehensive income (loss) | (226) | 120 | 567 | 756 |
Comprehensive income | $ 5,108 | $ 287 | $ 4,068 | $ 2,426 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | ||
Net cash provided by operating activities | $ 5,938,000 | $ 3,954,000 | |
Investing activities | |||
Purchases of marketable securities | (46,311,000) | (26,340,000) | |
Proceeds from maturity of marketable securities | 34,265,000 | 14,157,000 | |
Proceeds from sales of marketable securities | 13,072,000 | 11,492,000 | |
Purchases of property and equipment | (1,505,000) | (1,629,000) | |
Acquisition of initially consolidated subsidiary (1) | [1] | (494,000) | |
Decrease in restricted deposits | 97,000 | 455,000 | |
Net cash (used in) investing activities | (876,000) | (1,865,000) | |
Financial activities | |||
Purchase of treasury stock | (5,950,000) | (11,194,000) | |
Repayment of short term bank loan | (168,000) | ||
Issuance of treasury stock upon exercise of stock options | 1,196,000 | 1,138,000 | |
Net cash used in financing activities | (4,922,000) | (10,056,000) | |
Increase (decrease) in cash and cash equivalents | 140,000 | (7,967,000) | |
Erosion- due to exchange rate differences | 64,000 | (85,000) | |
Cash and cash equivalents at the beginning of the period | 13,704,000 | 20,544,000 | |
Cash and cash equivalents at the end of the period | $ 13,908,000 | $ 12,492,000 | |
[1] | During the third quarter of 2016, the Company completed the acquisition of a private company in Asia which the Company had previously invested in and acquired the remaining 86% of the equity of that company, bringing its holding to 100%. The net fair value of the assets acquired and the liabilities assumed, on the date of acquisition, was as follows: |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total | |
Balance (in shares) at Dec. 31, 2014 | 21,843 | ||||||
Balance at Dec. 31, 2014 | $ 22 | $ 355,906 | $ (122,387) | $ (85,352) | $ (1,566) | $ 146,623 | |
Net income | 1,670 | 1,670 | |||||
Change in accumulated other comprehensive income | 756 | 756 | |||||
Purchase of treasury stock (in shares) | (1,090) | ||||||
Purchase of treasury stock | $ (1) | (11,259) | (11,260) | ||||
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan (in shares) | 233 | ||||||
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan | 2,269 | (500) | 1,769 | ||||
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors (in shares) | 705 | ||||||
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors | $ 1 | 26 | 6,855 | (5,744) | 1,138 | ||
Equity-based compensation | 3,925 | 3,925 | |||||
Balance (in shares) at Sep. 30, 2015 | 21,693 | ||||||
Balance at Sep. 30, 2015 | $ 22 | 359,857 | (124,522) | (89,926) | (810) | 144,621 | |
Balance (in shares) at Jun. 30, 2015 | 21,995 | ||||||
Balance at Jun. 30, 2015 | $ 22 | 358,596 | (121,929) | (88,677) | (930) | 147,082 | |
Net income | 167 | 167 | |||||
Change in accumulated other comprehensive income | 120 | 120 | |||||
Purchase of treasury stock (in shares) | (540) | ||||||
Purchase of treasury stock | (4,912) | (4,912) | |||||
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan (in shares) | 117 | ||||||
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan | 1,141 | (238) | 903 | ||||
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors (in shares) | 121 | ||||||
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors | 1,178 | (1,178) | |||||
Equity-based compensation | 1,261 | 1,261 | |||||
Balance (in shares) at Sep. 30, 2015 | 21,693 | ||||||
Balance at Sep. 30, 2015 | $ 22 | 359,857 | (124,522) | (89,926) | (810) | 144,621 | |
Balance (in shares) at Dec. 31, 2015 | 21,573 | ||||||
Balance at Dec. 31, 2015 | $ 22 | 361,023 | (125,697) | (90,763) | (1,267) | 143,318 | |
Net income | 3,501 | 3,501 | |||||
Change in accumulated other comprehensive income | 567 | $ 567 | |||||
Purchase of treasury stock (in shares) | (623) | (623,000) | |||||
Purchase of treasury stock | $ (1) | [1] | (6,081) | $ (6,081) | |||
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan (in shares) | 233 | ||||||
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan | 9 | 2,270 | (493) | 1,786 | |||
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors (in shares) | 826 | ||||||
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors | $ 1 | [1] | 8,032 | (6,845) | 1,188 | ||
Equity-based compensation | 3,705 | 3,705 | |||||
Balance (in shares) at Sep. 30, 2016 | 22,009 | ||||||
Balance at Sep. 30, 2016 | $ 22 | 364,737 | (121,476) | (94,600) | (700) | 147,983 | |
Balance (in shares) at Jun. 30, 2016 | 21,743 | ||||||
Balance at Jun. 30, 2016 | $ 22 | 363,267 | (123,749) | (96,676) | (474) | 142,390 | |
Net income | 5,334 | 5,334 | |||||
Change in accumulated other comprehensive income | (226) | (226) | |||||
Purchase of treasury stock (in shares) | (215) | ||||||
Purchase of treasury stock | (2,405) | (2,405) | |||||
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan (in shares) | 119 | ||||||
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan | 1,156 | (258) | 898 | ||||
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors (in shares) | 362 | ||||||
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors | 9 | 3,522 | (3,000) | 531 | |||
Equity-based compensation | 1,461 | 1,461 | |||||
Balance (in shares) at Sep. 30, 2016 | 22,009 | ||||||
Balance at Sep. 30, 2016 | $ 22 | $ 364,737 | $ (121,476) | $ (94,600) | $ (700) | $ 147,983 | |
[1] | Represents an amount lower than $1. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | (1) Working capital, excluding cash and cash equivalents $ (386 ) Property and equipment 4 Distribution agreement 2,086 Deferred tax liability (377 ) Goodwill 967 2,294 The acquisition date fair value of the Company's previously held equity interest in a private company in Asia (1,800 ) $ 494 |
Note A - Basis of Presentation
Note A - Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
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 nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. 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, 2015. |
Note B - Inventories
Note B - Inventories | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
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: September 30, 2016 December 31, 2015 (Unaudited) (Audited) Work-in-process $ 5,222 $ 6,384 Finished goods 4,655 5,069 $ 9,877 $ 11,453 Inventory write-off amounted to $101 and $384 for the nine months ended September 30, 2016 and 2015, respectively. |
Note C - Net Earnings Per Share
Note C - Net Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE C—NET EARNINGS PER SHARE Basic net earnings 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 earnings 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 earnings per share: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Unaudited Net income $ 5,334 $ 167 $ 3,501 $ 1,670 Earnings per share: Basic $ 0.24 $ 0.01 $ 0.16 $ 0.08 Diluted $ 0.23 $ 0.01 $ 0.15 $ 0.07 Weighted average number of shares of common stock outstanding during the period used to compute basic net earnings per share (in thousands) 21,943 21,830 21,798 22,020 Incremental shares attributable to exercise of outstanding options, stock appreciation rights and restricted stock units (assuming proceeds would be used to purchase treasury stock) (in thousands) 1,242 1,038 1,084 1,470 Weighted average number of shares of common stock used to compute diluted net earnings per share (in thousands) 23,185 22,868 22,882 23,490 |
Note D - Marketable Securities
Note D - Marketable Securities and Time Deposits | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
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 September 30, 2016 and December 31, 2015: Amortized cost Unrealized gains (losses), net Fair value September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 (Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited) Short term deposits 5,707 $ 5,568 $ - $ - $ 5,707 $ 5,568 U.S. GSE securities 24,305 23,645 (45 ) (114 ) 24,260 23,531 Corporate obligations 76,698 79,072 (83 ) (387 ) 76,615 78,685 $ 106,710 $ 108,285 $ (128 ) $ (501 ) $ 106,582 $ 107,784 The amortized cost of marketable debt securities and short-term deposits at September 30, 2016, by contractual maturities, is shown below : Unrealized gains (losses) Amortized cost Gains Losses Fair value Due in one year or less $ 25,480 $ 17 $ (65 ) $ 25,432 Due after one year to five years 81,230 165 (245 ) 81,150 $ 106,710 $ 182 $ (310 ) $ 106,582 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 September 30, 2016, 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 all types of marketable securities 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 September 30, 2016. The total fair value of marketable securities with outstanding unrealized losses as of September 30, 2016 amounted to $67,430, while the unrealized losses for these marketable securities amounted to $310. Of the $310 unrealized losses outstanding as of September 30, 2016, a portion of which in the amount of $99 related to marketable securities that were in a loss position for more than 12 months and the remaining portion in the amount of $211 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 nine months ended September 30, 2016 and 2015 were $34,265 and $14,157, respectively. Proceeds from sales of available-for-sale marketable securities during the nine months ended September 30, 2016 and 2015 were $13,072 and $11,492, respectively. Net realized loss from the sale of available-for-sale securities for the nine months ended September 30, 2016 were $17 compared to net realized loss for the nine months ended September 30, 2015 of $26. 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 E - Taxes on Income
Note E - Taxes on Income | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
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. The total amount of net unrecognized tax benefits was $947 and $1,711 at September 30, 2016 and December 31, 2015, respectively. The Company accrues interest and penalties, relating to unrecognized tax benefits, in its provision for income taxes. At September 30, 2016 and December 31, 2015, the Company had accrued interest and penalties relating to unrecognized tax benefits of $40 and $180, respectively . The decrease in the total amount of net unrecognized tax benefits was primarily due to a tax payment made during the third quarter of 2016 as a result of the finalization of a tax audit of one of the Company’s subsidiaries. The Company intends to permanently reinvest earnings of its foreign operations and its current operating plans do not demonstrate a need to repatriate foreign earnings to fund the Company’s U.S. operations. However, if these funds were needed for the Company’s operations or other corporate activities in the United States, the Company would be required to accrue and pay U.S. taxes as well as taxes in other countries to repatriate these funds. The determination of the amount of additional taxes related to the repatriation of these earnings is not practicable, as it may vary based on various factors such as the location of the cash and the effect of regulation in the various jurisdictions from which the cash would be repatriated. |
Note F - Significant Customers
Note F - Significant Customers | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
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. (“VTech”) represented 26% and 32% of the Company’s total revenues for the three months ended September 30, 2016 and 2015, respectively. Sales to VTech represented 29% and 30% of the Company’s total revenues for the nine months ended September 30, 2016 and 2015, respectively. Sales to Guo Wei Electronics Ltd. (“Guo Wei Electronics”) represented 10% and 11% of the Company’s total revenues for the three months ended September 30, 2016 and 2015, respectively. Sales to Guo Wei Electronics represented 8% and 11% of the Company’s total revenues for the nine months ended September 30, 2016 and 2015, respectively. Sales to Samsung Electronics Co., Ltd (“Samsung”) represented 12% and 0% of the Company’s total revenues for the three months ended September 30, 2016 and 2015, respectively, and 13% and 0% for the nine months ended September 30, 2016 and 2015, respectively. Revenues derived from sales through the Company’s distributor, Ascend Technology Inc., (“Ascend Technology”), accounted for 16% and 13% of the Company’s total revenues for the three months ended September 30, 2016 and 2015, respectively. Revenues derived from sales through Ascend Technology accounted for 16% of the Company’s total revenues for both nine months ended September 30, 2016 and 2015, respectively. Revenues derived from sales through the Company’s distributor, Tomen Electronics Corporation (“Tomen Electronics”), accounted for 14% and 18% of the Company’s total revenues for the three months ended September 30, 2016 and 2015, respectively, and 12% and 17% of the Company’s total revenues for the nine months ended September 30, 2016 and 2015, respectively. 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 15% of the Company’s total revenues for the three months ended September 30, 2016 and 2015, respectively, and 10% and 14% of the Company’s total revenues for the nine months ended September 30, 2016 and 2015, respectively. |
Note G - Derivative Instruments
Note G - Derivative Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
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 September 30, 2016, the Company had outstanding option contracts in the amount of $5,400 and no outstanding foreign exchange forward contracts. 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 $93 and $5, respectively, at September 30, 2016. The Company recorded a net amount of $88 in other accounts receivable in the condensed consolidated balance sheet at September 30, 2016. The amount recorded as an expense in research and development expenses, sales and marketing expenses and general and administrative expenses in the condensed consolidated statements of income for the nine months ended September 30, 2016 that resulted from the above referenced hedging transactions was $1, $0 and $0, respectively . 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 three months ended September 30, 2016 that resulted from the above referenced hedging transactions was $12, $1 and $2, respectively. The fair value of the outstanding derivative instruments at September 30, 2016 and December 31, 2015 is summarized below: Fair Value of Derivative Instruments Balance Sheet Location September 30, 2016 December 31, 2015 Derivative Assets (Liabilities) Foreign exchange forward and options contracts Accrued expenses and other accounts payable $ - $ (36 ) Other accounts receivable and prepaid expenses 88 - $ 88 $ (36 ) The effect of derivative instruments in cash flow hedging transactions on income and other comprehensive income (“OCI”) for the three and nine months ended September 30, 2016 and 2015 is summarized below: Gains (Losses) on Derivatives Recognized in OCI for the three months ended September 30, for the nine months ended September 30, 2016 2015 2016 2015 Foreign exchange forward and option contracts $ 65 $ (240) $ 123 $ (77) Gains (Losses) Reclassified from OCI into Income for the three months ended September 30 for the nine months ended September 30, Location 2016 2015 2016 2015 Foreign exchange forward and option contracts Operating expenses $ 15 $ 4 $ (1) $ (620) |
Note H - Contingencies
Note H - Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
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. In addition, 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 could have a material adverse effect on the Company. |
Note I - Equity-based Compensat
Note I - Equity-based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE i— EQUITY -BASED COMPENSATION Grants for the Three Months ended September 30, 2016 and September 30, 2015: The weighted-average estimated fair value of restricted stock units ("RSUs") granted during the three months ended September 30, 2016 and 2015 was $9.32 and $7.61 per share, respectively, (using the weighted average pre-vest cancellation rate of 5.04% and 4.40% during the three months ended September 30, 2016 and September 30, 2015, respectively, on an annual basis). No employee stock options or stock appreciation rights (“SAR”) were granted during the three months ended September 30, 2016 and September 30, 2015 . Employee Stock Benefit Plans As of September 30, 2016, 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 September 30, 2016, approximately 942,000 shares of common stock remain available for grant under the Company’s employee stock purchase plan and 681,000 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 Options/SARs/RSUs Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) (3) Aggregate Value (*) in thousands in thousands Outstanding at June 3 0, 2016 3,457 $ 5.61 RSUs granted 3 - Options / SARs / RSUs cancelled/forfeited/expired (98 ) 7.29 Options / SARs exercised and RSUs vested (647 ) $ 6.34 Outstanding at September 30, 2016 (1) 2,713 $ 5.38 3.20 $ 18,341 Exercisable at September 30, 2016 (2) 1,642 $ 7.75 2.86 $ 7,327 (*) Calculation of aggregate intrinsic value is based on the share price of the Company’s common stock on September 30, 2016 ($12.01 per share). (1) Due to the ceiling imposed on the SAR grants, the outstanding amount above can be exercised for a maximum of 2,410 shares of the Company’s common stock as of September 30, 2016. 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 1,339 shares of the Company’s common stock as of September 30, 2016. (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 September 30 , 2016 with exercise prices above $12.01 per share (the closing price of the Company’s common stock on September 30, 2016) is as follows: Exercisable Unexercisable Total Exercise Prices Number of Options/ SARs / RSUs (in thousands) Weighted Average Exercise Price Number of Options/ SARs / RSUs (in thousands) Weighted Average Exercise Price Number of Options/ SARs / RSUs (in thousands) Weighted Average Exercise Price Above $12.01 70 $ 16.78 - $ - 70 $ 16.78 Less than $12.01 1,572 $ 7.35 1,071 $ 1.73 2,643 $ 5.07 Total 1,642 $ 7.75 1,071 $ 1.73 2,713 $ 5.38 The Company’s aggregate equity-based compensation expense for the three months ended September 30, 2016 and 2015 totaled $1,461 and $1,261, respectively. As of September 30, 2016, there was $5,157 of total unrecognized equity-based compensation expense related to unvested equity-based compensation awards granted under the Company’s equity incentive plans and the Company’s employee stock purchase plan. This amount is expected to be recognized during the period from 2016 through 2020. |
Note J - Pension Liability
Note J - Pension Liability | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
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 three months ended September 30, 2016 and 2015 are as follows : September 30, 2016 September 30, 2015 Components of net periodic benefit cost: Service cost and amortization of loss $ 14 $ 18 Interest cost 13 13 Expected return on plan assets (2 ) (3 ) Net periodic benefit cost $ 25 $ 28 The net pension liability as of September 30, 2016 amounted to $741. |
Note K - Fair Value Measurement
Note K - Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
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 September 30, 2016: Balance as of Fair Value Measurements September 30, 2016 Level 1 Level 2 Level 3 Description Assets Cash equivalents Money market mutual funds $ 1,907 $ 1,907 - - Short-term marketable securities and cash deposits: U.S. GSE securities $ 376 - $ 376 - Corporate debt securities $ 19,349 - $ 19,349 - Long-term marketable securities: U.S. GSE securities $ 23,884 - $ 23,884 - Corporate debt securities $ 57,266 - $ 57,266 - Derivative a ssets $ 88 - $ 88 - 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, 2015. Balance as of Fair Value Measurements December 31, 2015 Level 1 Level 2 Level 3 Description Assets: Cash equivalents: Money market mutual funds $ 1,089 $ 1,089 - - Short-term marketable securities and time deposits: U.S. GSE securities Corporate debt securities $ 12,501 - $ 12,501 - Long-term marketable securities: U.S. GSE securities $ 23,531 - $ 23,531 - Corporate debt securities $ 66,184 - $ 66,184 - Derivative liabilities $ (36 ) - $ (36 ) - 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 September 30, 2016 due to the short-term maturity of these instruments. |
Note L - Stockholders' Equity
Note L - Stockholders' Equity | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE l—STOCKHOLDERS’ EQUITY During the first nine months of 2016, the Company repurchased approximately 623,000 shares of common stock at an average purchase price of $9.76 per share for an aggregate purchase price of $6,081. As of September 3 0, 2016, approximately 750,000 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 nine months of 2016, the Company issued approximately 1,059,000 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 M - Segment Information
Note M - Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
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, home gateway devices supplied by telecommunication service providers which integrate the DECT/CAT-iq functionality, integrated circuits addressing home automation applications, as well as fixed-mobile convergence solutions. In this segment, (i) revenues from cordless telephony products exceeded 10% of the Company’s total revenues and amounted to 56% and 74% of the Company’s total revenues for the first nine months of 2016 and 2015, respectively, and 57% and 72% of the Company’s total revenues for the third quarter of 2016 and 2015, respectively, and (ii) revenues from home gateway products amounted to 8% and 10% of the Company’s total revenues for the first nine months of 2016 and 2015, respectively, and 8% and 6% of the Company’s total revenues for the third quarter of 2016 and 2015, respectively. Office - Comprehensive solution for Voice-over-IP (VOIP) office products, including office solutions that offer businesses of all sizes low-cost VOIP terminals with converged voice and data applications. Revenues from the Company’s VOIP products represented 20% and 14% of its total revenues for the first nine months of 2016 and 2015, respectively. Revenues from the Company’s VOIP products represented 20% and 18% of its total revenues for the third quarter of 2016 and 2015, respectively. No revenues derived from other products in the office segment exceeded 10% of the Company’s total revenues for the third quarter and the first nine months of 2016 and 2015. Mobile - Products for the mobile market that provides voice enhancement, always-on and far-end noise elimination targeted for mobile phone and mobile headsets and wearable devices that incorporate the Company’s noise suppression, always-on and voice quality enhancement HDClear technology. Revenues from the Company’s mobile products represented 13% and 0% of its total revenues for the first nine months of 2016 and 2015, respectively. Revenues from the Company’s mobile products represented 12% and 0% of its total revenues for the third quarter of 2016 and 2015, respectively. No revenues derived from other products in the mobile segment exceeded 10% of the Company’s total revenues for the third quarter and the first nine months of 2016 and 2015. 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 amortization of purchased intangible assets, equity-based compensation expenses, and certain corporate governance costs. Selected operating results information for each business segment was as follows for the three months ended September 30, 2016 and 2015: Three months ended September 30, Revenues Income (loss) from operations 2016 2015 2016 2015 Home $ 26,466 $ 28,882 $ 5,677 $ 5,480 Office $ 7,692 $ 6,254 $ (266 ) $ (1,646 ) Mobile $ 4,610 $ 83 $ (794 ) $ (1,703 ) Total $ 38,768 $ 35,219 $ 4,617 $ 2,131 Selected operating results information for each business segment was as follows for the nine months ended September 30, 2016 and 2015: Nine months ended September 30, Revenues Income (loss) from operations 2016 2015 2016 2015 Home $ 69,332 $ 95,288 $ 11,998 $ 19,768 Office $ 20,162 $ 15,130 $ (2,765 ) $ (3,361 ) Mobile $ 13,097 $ 83 $ (3,019 ) $ (8,690 ) Total $ 102,591 $ 110,501 $ 6,214 $ 7,717 The reconciliation of segment operating results information to the Company’s consolidated financial information was as follows for the three and nine months periods ended September 30, 2016: Three months Nine months Income from operations $ 4,617 $ 6,214 Unallocated corporate, general and administrative expenses, net 9 (941 ) Equity-based compensation expenses (1,461 ) (3,705 ) Intangible assets amortization expenses (390 ) (1,032 ) Other income 2,549 2,549 Financial income, net 344 910 Total consolidated income before taxes $ 5,668 $ 3,995 The reconciliation of segment operating results information to the Company’s consolidated financial information was as follows for the three and nine months ended September 30, 2015: Three months Nine months Income from operations $ 2,131 $ 7,717 Unallocated corporate, general and administrative expenses (486 ) (1,627 ) Equity-based compensation expenses (1,261 ) (3,925 ) Intangible assets amortization expenses (321 ) (963 ) Financial income, net 245 871 Total consolidated income before taxes $ 308 $ 2,073 |
Note N - Accumulated Other Comp
Note N - Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
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 September 30, 2016: 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 $ 150 $ 38 $ (344 ) $ (318 ) $ (474 ) Other comprehensive income (loss) before reclassifications (262 ) 65 - (3 ) (200 ) Losses (gains) reclassified from accumulated other comprehensive income (loss) (15 ) (15 ) 4 - (26 ) Net current period other comprehensive income (loss) (277 ) 50 4 (3 ) (226 ) Ending balance $ (127 ) $ 88 $ (340 ) $ (321 ) $ (700 ) The following table provides details about reclassifications out of accumulated other comprehensive income for the three months ended September 30, 2016: Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement of Income Gains on available-for-sale marketable securities $ (15 ) Financial income, net - Provision for income taxes (15 ) Total, net of income taxes Gains on cash flow hedges (12 ) Research and development (1 ) Sales and marketing (2 ) General and administrative (15 ) Total, before income taxes - Provision for income taxes (15 ) Total, net of income taxes Losses on components of defined benefit plans 2 Research and development 2 Sales and marketing 4 Total, before income taxes - Provision for income taxes 4 Total, net of income taxes Total reclassifications for the period $ (26 ) Total, net of income taxes The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the nine months ended September 30, 2016: 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 $ (500 ) $ (36 ) $ (351 ) $ (380 ) $ (1,267 ) Other comprehensive income (loss) before reclassifications 356 123 - 59 538 Losses reclassified from accumulated other comprehensive income (loss) 17 1 11 - 29 Net current period other comprehensive income 373 124 11 59 567 Ending balance $ (127 ) $ 88 $ (340 ) (321 ) $ (700 ) The following table provides details about reclassifications out of accumulated other comprehensive income for the nine months ended September 30, 2016: Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement of Income Losses on available-for-sale marketable securities $ 17 Financial income, net - Provision for income taxes 17 Total, net of income taxes Losses on cash flow hedges 1 Research and development - Sales and marketing - General and administrative 1 Total, before income taxes - Provision for income taxes 1 Total, net of income taxes Losses on components of defined benefit plans 6 Research and development 5 Sales and marketing 11 Total, before income taxes - Provision for income taxes 11 Total, net of income taxes Total reclassifications for the period $ 29 Total, net of income taxes |
Note O - Government Grants
Note O - Government Grants | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
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 amount of $547 and $277 for the three month periods ended September 30, 2016 and 2015, respectively. The Company recorded grants in the amount of $2,191 and $1,891 for the nine month periods ended September 30, 2016 and 2015, respectively. The Company’s Israeli subsidiary is obligated to pay royalties amounting to 5% of the sales of certain products, the development of which benefited from grants received 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 P - Other Income
Note P - Other Income | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Other Operating Income and Expense [Text Block] | NOTE P OTHER INCOME During the third quarter of 2016, the Company recorded other income in the amount of $2,549 related to the reversal of certain provisions due to the elapse of the applicable statute of limitations . |
Supplemental Cash Flow Inform26
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Working capital, excluding cash and cash equivalents $ (386 ) Property and equipment 4 Distribution agreement 2,086 Deferred tax liability (377 ) Goodwill 967 2,294 The acquisition date fair value of the Company's previously held equity interest in a private company in Asia (1,800 ) $ 494 |
Note B - Inventories (Tables)
Note B - Inventories (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | September 30, 2016 December 31, 2015 (Unaudited) (Audited) Work-in-process $ 5,222 $ 6,384 Finished goods 4,655 5,069 $ 9,877 $ 11,453 |
Note C - Net Earnings Per Sha28
Note C - Net Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Unaudited Net income $ 5,334 $ 167 $ 3,501 $ 1,670 Earnings per share: Basic $ 0.24 $ 0.01 $ 0.16 $ 0.08 Diluted $ 0.23 $ 0.01 $ 0.15 $ 0.07 Weighted average number of shares of common stock outstanding during the period used to compute basic net earnings per share (in thousands) 21,943 21,830 21,798 22,020 Incremental shares attributable to exercise of outstanding options, stock appreciation rights and restricted stock units (assuming proceeds would be used to purchase treasury stock) (in thousands) 1,242 1,038 1,084 1,470 Weighted average number of shares of common stock used to compute diluted net earnings per share (in thousands) 23,185 22,868 22,882 23,490 |
Note D - Marketable Securitie29
Note D - Marketable Securities and Time Deposits (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Available-for-sale Securities [Table Text Block] | Amortized cost Unrealized gains (losses), net Fair value September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 (Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited) Short term deposits 5,707 $ 5,568 $ - $ - $ 5,707 $ 5,568 U.S. GSE securities 24,305 23,645 (45 ) (114 ) 24,260 23,531 Corporate obligations 76,698 79,072 (83 ) (387 ) 76,615 78,685 $ 106,710 $ 108,285 $ (128 ) $ (501 ) $ 106,582 $ 107,784 |
Investments Classified by Contractual Maturity Date [Table Text Block] | Unrealized gains (losses) Amortized cost Gains Losses Fair value Due in one year or less $ 25,480 $ 17 $ (65 ) $ 25,432 Due after one year to five years 81,230 165 (245 ) 81,150 $ 106,710 $ 182 $ (310 ) $ 106,582 |
Note G - Derivative Instrumen30
Note G - Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | Fair Value of Derivative Instruments Balance Sheet Location September 30, 2016 December 31, 2015 Derivative Assets (Liabilities) Foreign exchange forward and options contracts Accrued expenses and other accounts payable $ - $ (36 ) Other accounts receivable and prepaid expenses 88 - $ 88 $ (36 ) |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | Gains (Losses) on Derivatives Recognized in OCI for the three months ended September 30, for the nine months ended September 30, 2016 2015 2016 2015 Foreign exchange forward and option contracts $ 65 $ (240) $ 123 $ (77) |
Derivative Instruments, Gain (Loss) [Table Text Block] | Gains (Losses) Reclassified from OCI into Income for the three months ended September 30 for the nine months ended September 30, Location 2016 2015 2016 2015 Foreign exchange forward and option contracts Operating expenses $ 15 $ 4 $ (1) $ (620) |
Note I - Equity-based Compens31
Note I - Equity-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Share-based Compensation, Activity [Table Text Block] | Number of Options/SARs/RSUs Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) (3) Aggregate Value (*) in thousands in thousands Outstanding at June 3 0, 2016 3,457 $ 5.61 RSUs granted 3 - Options / SARs / RSUs cancelled/forfeited/expired (98 ) 7.29 Options / SARs exercised and RSUs vested (647 ) $ 6.34 Outstanding at September 30, 2016 (1) 2,713 $ 5.38 3.20 $ 18,341 Exercisable at September 30, 2016 (2) 1,642 $ 7.75 2.86 $ 7,327 |
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 Options/ SARs / RSUs (in thousands) Weighted Average Exercise Price Number of Options/ SARs / RSUs (in thousands) Weighted Average Exercise Price Number of Options/ SARs / RSUs (in thousands) Weighted Average Exercise Price Above $12.01 70 $ 16.78 - $ - 70 $ 16.78 Less than $12.01 1,572 $ 7.35 1,071 $ 1.73 2,643 $ 5.07 Total 1,642 $ 7.75 1,071 $ 1.73 2,713 $ 5.38 |
Note J - Pension Liability (Tab
Note J - Pension Liability (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Net Benefit Costs [Table Text Block] | September 30, 2016 September 30, 2015 Components of net periodic benefit cost: Service cost and amortization of loss $ 14 $ 18 Interest cost 13 13 Expected return on plan assets (2 ) (3 ) Net periodic benefit cost $ 25 $ 28 |
Note K - Fair Value Measureme33
Note K - Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Balance as of Fair Value Measurements September 30, 2016 Level 1 Level 2 Level 3 Description Assets Cash equivalents Money market mutual funds $ 1,907 $ 1,907 - - Short-term marketable securities and cash deposits: U.S. GSE securities $ 376 - $ 376 - Corporate debt securities $ 19,349 - $ 19,349 - Long-term marketable securities: U.S. GSE securities $ 23,884 - $ 23,884 - Corporate debt securities $ 57,266 - $ 57,266 - Derivative a ssets $ 88 - $ 88 - Balance as of Fair Value Measurements December 31, 2015 Level 1 Level 2 Level 3 Description Assets: Cash equivalents: Money market mutual funds $ 1,089 $ 1,089 - - Short-term marketable securities and time deposits: U.S. GSE securities Corporate debt securities $ 12,501 - $ 12,501 - Long-term marketable securities: U.S. GSE securities $ 23,531 - $ 23,531 - Corporate debt securities $ 66,184 - $ 66,184 - Derivative liabilities $ (36 ) - $ (36 ) - |
Note M - Segment Information (T
Note M - Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three months ended September 30, Revenues Income (loss) from operations 2016 2015 2016 2015 Home $ 26,466 $ 28,882 $ 5,677 $ 5,480 Office $ 7,692 $ 6,254 $ (266 ) $ (1,646 ) Mobile $ 4,610 $ 83 $ (794 ) $ (1,703 ) Total $ 38,768 $ 35,219 $ 4,617 $ 2,131 Nine months ended September 30, Revenues Income (loss) from operations 2016 2015 2016 2015 Home $ 69,332 $ 95,288 $ 11,998 $ 19,768 Office $ 20,162 $ 15,130 $ (2,765 ) $ (3,361 ) Mobile $ 13,097 $ 83 $ (3,019 ) $ (8,690 ) Total $ 102,591 $ 110,501 $ 6,214 $ 7,717 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Three months Nine months Income from operations $ 4,617 $ 6,214 Unallocated corporate, general and administrative expenses, net 9 (941 ) Equity-based compensation expenses (1,461 ) (3,705 ) Intangible assets amortization expenses (390 ) (1,032 ) Other income 2,549 2,549 Financial income, net 344 910 Total consolidated income before taxes $ 5,668 $ 3,995 Three months Nine months Income from operations $ 2,131 $ 7,717 Unallocated corporate, general and administrative expenses (486 ) (1,627 ) Equity-based compensation expenses (1,261 ) (3,925 ) Intangible assets amortization expenses (321 ) (963 ) Financial income, net 245 871 Total consolidated income before taxes $ 308 $ 2,073 |
Note N - Accumulated Other Co35
Note N - Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [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 $ 150 $ 38 $ (344 ) $ (318 ) $ (474 ) Other comprehensive income (loss) before reclassifications (262 ) 65 - (3 ) (200 ) Losses (gains) reclassified from accumulated other comprehensive income (loss) (15 ) (15 ) 4 - (26 ) Net current period other comprehensive income (loss) (277 ) 50 4 (3 ) (226 ) Ending balance $ (127 ) $ 88 $ (340 ) $ (321 ) $ (700 ) 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 $ (500 ) $ (36 ) $ (351 ) $ (380 ) $ (1,267 ) Other comprehensive income (loss) before reclassifications 356 123 - 59 538 Losses reclassified from accumulated other comprehensive income (loss) 17 1 11 - 29 Net current period other comprehensive income 373 124 11 59 567 Ending balance $ (127 ) $ 88 $ (340 ) (321 ) $ (700 ) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement of Income Gains on available-for-sale marketable securities $ (15 ) Financial income, net - Provision for income taxes (15 ) Total, net of income taxes Gains on cash flow hedges (12 ) Research and development (1 ) Sales and marketing (2 ) General and administrative (15 ) Total, before income taxes - Provision for income taxes (15 ) Total, net of income taxes Losses on components of defined benefit plans 2 Research and development 2 Sales and marketing 4 Total, before income taxes - Provision for income taxes 4 Total, net of income taxes Total reclassifications for the period $ (26 ) Total, net of income taxes Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement of Income Losses on available-for-sale marketable securities $ 17 Financial income, net - Provision for income taxes 17 Total, net of income taxes Losses on cash flow hedges 1 Research and development - Sales and marketing - General and administrative 1 Total, before income taxes - Provision for income taxes 1 Total, net of income taxes Losses on components of defined benefit plans 6 Research and development 5 Sales and marketing 11 Total, before income taxes - Provision for income taxes 11 Total, net of income taxes Total reclassifications for the period $ 29 Total, net of income taxes |
Supplemental Cash Flow Inform36
Supplemental Cash Flow Information (Details Textual) - Private Company in Asia [Member] | Sep. 30, 2016 |
Business Acquisition, Percentage of Voting Interests Acquired | 86.00% |
Business Acquisition, Percentage of Voting Interests Owned | 100.00% |
Supplemental Cash Flow Inform37
Supplemental Cash Flow Information - Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Private Company in Asia [Member] | ||
Working capital, excluding cash and cash equivalents | $ (386) | |
Property and equipment | 4 | |
Distribution agreement | 2,086 | |
Deferred tax liability | (377) | |
Goodwill | 967 | |
2,294 | ||
The acquisition date fair value of the Company's previously held equity interest in a private company in Asia | (1,800) | |
494 | ||
Goodwill | $ 6,243 | $ 5,276 |
Note B - Inventories (Details T
Note B - Inventories (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Inventory Write-down | $ 101 | $ 384 |
Note B - Inventories - Componen
Note B - Inventories - Components of Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Work-in-process | $ 5,222 | $ 6,384 |
Finished goods | 4,655 | 5,069 |
$ 9,877 | $ 11,453 |
Note C - Net Income Per Share -
Note C - Net Income Per Share - Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net income | $ 5,334 | $ 167 | $ 3,501 | $ 1,670 |
Basic (in dollars per share) | $ 0.24 | $ 0.01 | $ 0.16 | $ 0.08 |
Diluted (in dollars per share) | $ 0.23 | $ 0.01 | $ 0.15 | $ 0.07 |
Weighted average number of shares of common stock outstanding during the period used to compute basic net earnings per share (in thousands) (in shares) | 21,943 | 21,830 | 21,798 | 22,020 |
Incremental shares attributable to exercise of outstanding options, stock appreciation rights and restricted stock units (assuming proceeds would be used to purchase treasury stock) (in thousands) (in shares) | 1,242 | 1,038 | 1,084 | 1,470 |
Weighted average number of shares of common stock used to compute diluted net earnings per share (in thousands) (in shares) | 23,185 | 22,868 | 22,882 | 23,490 |
Note D - Marketable Securitie41
Note D - Marketable Securities and Time Deposits (Details Textual) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | $ 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 67,430,000 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 310,000 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 99,000 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 211,000 | |
Proceeds from Maturities, Prepayments and Calls of Available-for-sale Securities | 34,265,000 | $ 14,157,000 |
Proceeds from Sale of Available-for-sale Securities | 13,072,000 | 11,492,000 |
Gain (Loss) on Sale of Securities, Net | $ 17,000 | $ (26,000) |
Note D - Marketable Securitie42
Note D - Marketable Securities and Time Deposits - Marketable Securities and Time Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Short-term Deposits [Member] | ||
Marketable debt securities, amortized cost | $ 5,707 | $ 5,568 |
Marketable securities and time deposits, unrealized gains (losses), net | ||
Marketable debt securities, estimated fair value | 5,707 | 5,568 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Marketable debt securities, amortized cost | 24,305 | 23,645 |
Marketable securities and time deposits, unrealized gains (losses), net | (45) | (114) |
Marketable debt securities, estimated fair value | 24,260 | 23,531 |
Corporate Debt Securities [Member] | ||
Marketable debt securities, amortized cost | 76,698 | 79,072 |
Marketable securities and time deposits, unrealized gains (losses), net | (83) | (387) |
Marketable debt securities, estimated fair value | 76,615 | 78,685 |
Marketable debt securities, amortized cost | 106,710 | 108,285 |
Marketable securities and time deposits, unrealized gains (losses), net | (128) | (501) |
Marketable debt securities, estimated fair value | $ 106,582 | $ 107,784 |
Note D - Marketable Securitie43
Note D - Marketable Securities and Time Deposits - Marketable Debt Securities by Contractual Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Securities [Member] | Due in One Year or Less [Member] | ||
Marketable debt securities, amortized cost | $ 25,480 | |
Marketable debt securities, unrealized gains | 17 | |
Marketable debt securities, unrealized losses | (65) | |
Marketable debt securities, estimated fair value | 25,432 | |
Debt Securities [Member] | Due after One Year to Five Years [Member] | ||
Marketable debt securities, amortized cost | 81,230 | |
Marketable debt securities, unrealized gains | 165 | |
Marketable debt securities, unrealized losses | (245) | |
Marketable debt securities, estimated fair value | 81,150 | |
Debt Securities [Member] | ||
Marketable debt securities, amortized cost | 106,710 | |
Marketable debt securities, unrealized gains | 182 | |
Marketable debt securities, unrealized losses | (310) | |
Marketable debt securities, estimated fair value | 106,582 | |
Marketable debt securities, amortized cost | 106,710 | $ 108,285 |
Marketable debt securities, estimated fair value | $ 106,582 | $ 107,784 |
Note E - Taxes on Income (Detai
Note E - Taxes on Income (Details Textual) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Unrecognized Tax Benefits | $ 947 | $ 1,711 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 40 | $ 180 |
Note F - Significant Customers
Note F - Significant Customers (Details Textual) - Sales Revenue, Net [Member] - Customer Concentration Risk [Member] | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Ascend Technology Inc [Member] | ||||
Concentration Risk, Percentage | 16.00% | 13.00% | 16.00% | 16.00% |
Vtech Holdings Ltd [Member] | ||||
Concentration Risk, Percentage | 26.00% | 32.00% | 29.00% | 30.00% |
Guo Wei Electronics [Member] | ||||
Concentration Risk, Percentage | 10.00% | 11.00% | 8.00% | 11.00% |
Samsung Mobile [Member] | ||||
Concentration Risk, Percentage | 12.00% | 0.00% | 13.00% | 0.00% |
Tomen Electronics Corporation [Member] | ||||
Concentration Risk, Percentage | 14.00% | 18.00% | 12.00% | 17.00% |
Panasonic Communications Corporation [Member] | ||||
Concentration Risk, Percentage | 12.00% | 15.00% | 10.00% | 14.00% |
Note G - Derivative Instrumen46
Note G - Derivative Instruments (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Foreign Exchange Contract [Member] | |||
Price Risk Cash Flow Hedge Asset, at Fair Value | $ 0 | $ 0 | |
Foreign Exchange Option [Member] | |||
Price Risk Cash Flow Hedge Asset, at Fair Value | 5,400,000 | 5,400,000 | |
Foreign Exchange Forward Contracts and Put Options [Member] | Other Accounts Receivable [Member] | |||
Derivative Assets (Liabilities), at Fair Value, Net | 88,000 | 88,000 | $ 0 |
Research and Development Expense [Member] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 12,000 | 1,000 | |
Selling and Marketing Expense [Member] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 1,000 | 0 | |
General and Administrative Expense [Member] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 2,000 | 0 | |
Derivative Asset | 93,000 | 93,000 | |
Derivative Liability | 5,000 | 5,000 | |
Derivative Assets (Liabilities), at Fair Value, Net | $ 88,000 | $ 88,000 | $ (36,000) |
Note G - Derivative Instrumen47
Note G - Derivative Instruments - The Fair Value of the Derivative Instruments (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Foreign Exchange Forward Contracts and Put Options [Member] | Accounts Payable and Accrued Liabilities [Member] | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ 0 | $ (36,000) |
Foreign Exchange Forward Contracts and Put Options [Member] | Other Accounts Receivable [Member] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 88,000 | 0 |
Derivative Assets (Liabilities), at Fair Value, Net | $ 88,000 | $ (36,000) |
Note G - Derivative Instrumen48
Note G - Derivative Instruments - Effect of Derivative Instruments in Cash Flow Hedging Transactions on Income and Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Gains Losses on Derivatives Recognized in OCI [Member] | ||||
Foreign exchange forward and option contracts | $ 65 | $ (240) | $ 123 | $ (77) |
Foreign exchange forward and option contracts | $ 15 | $ 4 | $ (1) | $ (620) |
Note G - Derivative Instrumen49
Note G - Derivative Instruments - Gains (Losses) on Derivatives Reclassified from OCI to Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Foreign exchange forward and option contracts | $ 15 | $ 4 | $ (1) | $ (620) |
Note I - Equity-based Compens50
Note I - Equity-based Compensation (Details Textual) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | 24 Months Ended | 54 Months Ended | |||
Sep. 30, 2016USD ($)$ / sharesshares | Sep. 30, 2015USD ($)$ / sharesshares | Sep. 30, 2016USD ($)shares | Sep. 30, 2015USD ($) | Dec. 31, 2009 | Dec. 31, 2008 | Dec. 31, 2011 | Jun. 30, 2016 | |
Stock Appreciation Rights (SARs) [Member] | Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant as Percentage of Company Outstanding Common Stock | 75.00% | 50.00% | 66.67% | 50.00% | ||||
Stock Appreciation Rights (SARs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | ||||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 9.32 | $ 7.61 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award Fair Value Assumptions Postvest Cancellation Rate | 5.04% | 4.40% | ||||||
Employee Stock Purchase Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 942,000 | 942,000 | ||||||
Equity Incentive Plans [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 681,000 | 681,000 | ||||||
Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award Options and Stock Appreciation Rights, Exercisable Number | 1,339 | 1,339 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award Number of Expired Equity Incentive Plans | 3 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award Number of Employee Purchase Plans | 1 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 12.01 | 12.01 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares to be Issued Upon Exercise of Outstanding Awards | 2,410 | 2,410 | ||||||
Allocated Share-based Compensation Expense | $ | $ 1,461 | $ 1,261 | $ 3,705 | $ 3,925 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 5,157 | $ 5,157 |
Note I - Equity-based Compens51
Note I - Equity-based Compensation - Stock Options, SARs and RSUs Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2016USD ($)$ / sharesshares | ||
Outstanding (in shares) | 3,457 | |
Outstanding (in dollars per share) | $ / shares | $ 5.61 | |
RSUs granted (in shares) | 3 | |
Options / SARs / RSUs cancelled/forfeited/expired (in shares) | (98) | |
Options / SARs / RSUs cancelled/forfeited/expired (in dollars per share) | $ / shares | $ 7.29 | |
Options / SARs exercised and RSUs vested (in shares) | (647) | |
Options / SARs exercised and RSUs vested (in dollars per share) | $ / shares | $ 6.34 | |
Outstanding (in shares) | 2,713 | [1] |
Outstanding (in dollars per share) | $ / shares | $ 5.38 | [1] |
Outstanding | 3 years 73 days | [1],[2] |
Outstanding | $ | $ 18,341 | [1],[3] |
Exercisable at September 30, 2016 (2) (in shares) | 1,642 | [4] |
Exercisable at September 30, 2016 (2) (in dollars per share) | $ / shares | $ 7.75 | [4] |
Exercisable at September 30, 2016 (2) | 2 years 313 days | [2],[4] |
Exercisable at September 30, 2016 (2) | $ | $ 7,327 | [3],[4] |
[1] | Due to the ceiling imposed on the SAR grants, the outstanding amount above can be exercised for a maximum of 2,410 shares of the Company’s common stock as of September 30, 2016. 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 September 30, 2016 ($12.01 per share). | |
[4] | Due to the ceiling imposed on the SAR grants, the exercisable amount above can be exercised for a maximum of 1,339 shares of the Company’s common stock as of September 30, 2016. |
Note I - Equity-based Compens52
Note I - Equity-based Compensation - Company's Stock Options and SAR Units Outstanding and Exercisable (Details) shares in Thousands | Sep. 30, 2016$ / sharesshares |
Range 1 [Member] | |
Number of Options/ SARs / RSUs - Exercisable (in shares) | shares | 70 |
Weighted Average Exercise Price - Exercisable (in dollars per share) | $ / shares | $ 16.78 |
Number of Options/ SARs / RSUs - Unexercisable (in shares) | shares | |
Weighted Average Exercise Price - Unexercisable (in dollars per share) | $ / shares | |
Number of Options/ SARs / RSUs (in shares) | shares | 70 |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 16.78 |
Range 2 [Member] | |
Number of Options/ SARs / RSUs - Exercisable (in shares) | shares | 1,572 |
Weighted Average Exercise Price - Exercisable (in dollars per share) | $ / shares | $ 7.35 |
Number of Options/ SARs / RSUs - Unexercisable (in shares) | shares | 1,071 |
Weighted Average Exercise Price - Unexercisable (in dollars per share) | $ / shares | $ 1.73 |
Number of Options/ SARs / RSUs (in shares) | shares | 2,643 |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 5.07 |
Number of Options/ SARs / RSUs - Exercisable (in shares) | shares | 1,642 |
Weighted Average Exercise Price - Exercisable (in dollars per share) | $ / shares | $ 7.75 |
Number of Options/ SARs / RSUs - Unexercisable (in shares) | shares | 1,071 |
Weighted Average Exercise Price - Unexercisable (in dollars per share) | $ / shares | $ 1.73 |
Number of Options/ SARs / RSUs (in shares) | shares | 2,713 |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 5.38 |
Note J - Pension Liability (Det
Note J - Pension Liability (Details Textual) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Defined Benefit Pension Plan, Liabilities, Noncurrent | $ 741 | $ 684 |
Note J - Pesion Liability - Com
Note J - Pesion Liability - Components of Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Components of net periodic benefit cost: | ||
Service cost and amortization of loss | $ 14 | $ 18 |
Interest cost | 13 | 13 |
Expected return on plan assets | (2) | (3) |
Net periodic benefit cost | $ 25 | $ 28 |
Note K - Fair Value Measureme55
Note K - Fair Value Measurements - Fair Value Measurements of Assets and Liabilities on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Money market mutual funds | $ 1,907 | $ 1,089 |
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Money market mutual funds | ||
Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Money market mutual funds | ||
Money Market Funds [Member] | ||
Money market mutual funds | 1,907 | 1,089 |
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Short-term securities | ||
Long-term securities | ||
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Short-term securities | 376 | |
Long-term securities | 23,884 | 23,531 |
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Short-term securities | ||
Long-term securities | ||
US Government-sponsored Enterprises Debt Securities [Member] | ||
Short-term securities | 376 | |
Long-term securities | 23,884 | 23,531 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Short-term securities | ||
Long-term securities | ||
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Short-term securities | 19,349 | 12,501 |
Long-term securities | 57,266 | 66,184 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Short-term securities | ||
Long-term securities | ||
Corporate Debt Securities [Member] | ||
Short-term securities | 19,349 | 12,501 |
Long-term securities | 57,266 | 66,184 |
Derivative Financial Instruments, Assets [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Derivative assets | ||
Derivative Financial Instruments, Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Derivative assets | 88 | |
Derivative Financial Instruments, Assets [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Derivative assets | ||
Derivative Financial Instruments, Assets [Member] | ||
Derivative assets | $ 88 | |
Fair Value, Inputs, Level 1 [Member] | Derivative Financial Instruments, Liabilities [Member] | ||
Derivative liabilities | ||
Fair Value, Inputs, Level 2 [Member] | Derivative Financial Instruments, Liabilities [Member] | ||
Derivative liabilities | (36) | |
Fair Value, Inputs, Level 3 [Member] | Derivative Financial Instruments, Liabilities [Member] | ||
Derivative liabilities | ||
Derivative Financial Instruments, Liabilities [Member] | ||
Derivative liabilities | $ (36) |
Note L - Stockholders' Equity (
Note L - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Treasury Stock, Shares, Acquired | 623,000 | |||
Treasury Stock Acquired, Average Cost Per Share | $ 9.76 | |||
Treasury Stock, Value, Acquired, Cost Method | $ 2,405 | $ 4,912 | $ 6,081 | $ 11,260 |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 750,000 | 750,000 | ||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 1,059,000 |
Note M - Segment Information (D
Note M - Segment Information (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Product Concentration Risk [Member] | Sales Revenue, Segment [Member] | Home [Member] | Telephony [Member] | ||||
Concentration Risk, Percentage | 57.00% | 72.00% | 56.00% | 74.00% |
Product Concentration Risk [Member] | Sales Revenue, Segment [Member] | Home [Member] | Gateway [Member] | ||||
Concentration Risk, Percentage | 8.00% | 6.00% | 8.00% | 10.00% |
Product Concentration Risk [Member] | Sales Revenue, Segment [Member] | Office [Member] | Gateway [Member] | ||||
Concentration Risk, Percentage | 20.00% | 18.00% | 20.00% | 14.00% |
Product Concentration Risk [Member] | Sales Revenue, Segment [Member] | Mobile [Member] | ||||
Concentration Risk, Percentage | 12.00% | 0.00% | 13.00% | 0.00% |
Number of Reportable Segments | 3 |
Note M - Segment Information -
Note M - Segment Information - Selected Operating Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Home [Member] | ||||
Revenues | $ 26,466 | $ 28,882 | $ 69,332 | $ 95,288 |
Income from operations | 5,677 | 5,480 | 11,998 | 19,768 |
Office [Member] | ||||
Revenues | 7,692 | 6,254 | 20,162 | 15,130 |
Income from operations | (266) | (1,646) | (2,765) | (3,361) |
Mobile [Member] | ||||
Revenues | 4,610 | 83 | 13,097 | 83 |
Income from operations | (794) | (1,703) | (3,019) | (8,690) |
Revenues | 38,768 | 35,219 | 102,591 | 110,501 |
Income from operations | $ 4,617 | $ 2,131 | $ 6,214 | $ 7,717 |
Note M - Segment Information 59
Note M - Segment Information - Reconciliation of Segment Operating Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income from operations | $ 4,617 | $ 2,131 | $ 6,214 | $ 7,717 |
Unallocated corporate, general and administrative expenses, net | 9 | (486) | (941) | (1,627) |
Equity-based compensation expenses | (1,461) | (1,261) | (3,705) | (3,925) |
Intangible assets amortization expenses | (390) | (321) | (1,032) | (963) |
Other income | 2,549 | 2,549 | ||
Financial income, net | 344 | 245 | 910 | 871 |
Total consolidated income before taxes | $ 5,668 | $ 308 | $ 3,995 | $ 2,073 |
Note N - Accumulated Other Co60
Note N - Accumulated Other Comprehensive Income - Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||||
Beginning balance | $ 150 | $ (500) | ||
Other comprehensive income (loss) before reclassifications | (262) | 356 | ||
Losses (gains) reclassified from accumulated other comprehensive income (loss) | (15) | 17 | ||
Net current period other comprehensive income (loss) | (277) | 373 | ||
Ending balance | (127) | (127) | ||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
Beginning balance | 38 | (36) | ||
Other comprehensive income (loss) before reclassifications | 65 | 123 | ||
Losses (gains) reclassified from accumulated other comprehensive income (loss) | (15) | 1 | ||
Net current period other comprehensive income (loss) | 50 | 124 | ||
Ending balance | 88 | 88 | ||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||
Beginning balance | (344) | (351) | ||
Other comprehensive income (loss) before reclassifications | ||||
Losses (gains) reclassified from accumulated other comprehensive income (loss) | 4 | 11 | ||
Net current period other comprehensive income (loss) | 4 | 11 | ||
Ending balance | (340) | (340) | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Beginning balance | (318) | (380) | ||
Other comprehensive income (loss) before reclassifications | (3) | 59 | ||
Losses (gains) reclassified from accumulated other comprehensive income (loss) | ||||
Net current period other comprehensive income (loss) | (3) | 59 | ||
Ending balance | (321) | (321) | ||
Beginning balance | (474) | (1,267) | ||
Other comprehensive income (loss) before reclassifications | (200) | 538 | ||
Losses (gains) reclassified from accumulated other comprehensive income (loss) | (26) | 29 | ||
Net current period other comprehensive income (loss) | (226) | $ 120 | 567 | $ 756 |
Ending balance | $ (700) | $ (700) |
Note N - Accumulated Other Co61
Note N - Accumulated Other Comprehensive Income - Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||||
Gains (losses) on available-for-sale marketable securities | $ (15) | $ 17 | |||
Total, net of income taxes | (15) | 17 | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||||
Total, net of income taxes | (15) | 1 | |||
Research and development | (12) | 1 | |||
Sales and marketing | (1) | ||||
General and administrative | (2) | ||||
Total, before income taxes | (15) | 1 | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||||
Total, net of income taxes | 4 | 11 | |||
Research and development | 2 | 6 | |||
Sales and marketing | 2 | 5 | |||
Total, before income taxes | 4 | 11 | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Total, net of income taxes | (26) | 29 | |||
Gains (losses) on available-for-sale marketable securities | 344 | $ 245 | 910 | $ 871 | |
Total, net of income taxes | 5,334 | 167 | 3,501 | 1,670 | |
Research and development | [1] | 8,504 | 8,709 | 26,430 | 26,680 |
Sales and marketing | [2] | 3,617 | 3,071 | 10,332 | 9,108 |
General and administrative | [3] | 2,064 | 2,409 | 6,622 | 7,390 |
Total, before income taxes | $ 5,668 | $ 308 | $ 3,995 | $ 2,073 | |
[1] | Includes equity-based compensation expense in the amount of $668 and $546 for the three months ended September 30, 2016 and 2015, respectively; and $1,615 and $1,697 for the nine months ended September 30, 2016 and 2015, respectively. | ||||
[2] | Includes equity-based compensation expense in the amount of $230 and $161 for the three months ended September 30, 2016 and 2015, respectively; and $555 and $491 for the nine months ended September 30, 2016 and 2015, respectively. | ||||
[3] | Includes equity-based compensation expense in the amount of $465 and $479 for the three months ended September 30, 2016 and 2015, respectively; and $1,293 and $1,509 for the nine months ended September 30, 2016 and 2015, respectively. |
Note O - Government Grants (Det
Note O - Government Grants (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Financial Grants in Support of Research and Development | $ 547 | $ 277 | $ 2,191 | $ 1,891 |
Financial Grants in Support of Research and Development Royalty Obligation | 5.00% | 5.00% |
Note P - Other Income (Details
Note P - Other Income (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Other Operating Income | $ 2,549 | $ 2,549 |