DSP (DSPG) 10-Q 10 May 17 2017 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 02, 2017
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	Large Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		22,169,054
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
CURRENT ASSETS:
Cash and cash equivalents	$ 17,216	$ 17,752
Restricted deposit	5	70
Marketable securities and short-term deposits	34,277	29,031
Trade receivables	18,159	19,069
Other accounts receivable and prepaid expenses	3,009	2,331
Inventories	9,239	9,748
TOTAL CURRENT ASSETS	81,905	78,001
PROPERTY AND EQUIPMENT, NET	4,042	4,130
NON-CURRENT ASSETS:
Long-term marketable securities	68,292	78,092
Long-term prepaid expenses and lease deposits	1,429	1,329
Deferred income taxes	1,088	918
Severance pay fund	13,770	12,751
Intangible assets, net	4,055	4,480
Goodwill	6,243	6,243
TOTAL NON-CURRENT ASSETS	94,877	103,813
TOTAL ASSETS	180,824	185,944
CURRENT LIABILITIES:
Trade payables	10,266	12,540
Accrued compensation and benefits	6,525	8,666
Income tax accruals and payables	1,111	1,137
Accrued expenses and other accounts payable	2,997	3,556
TOTAL CURRENT LIABILITIES	20,899	25,899
NON-CURRENT LIABILITIES:
Deferred income taxes	688	787
Accrued severance pay	13,965	12,908
Accrued pensions	815	803
TOTAL NON-CURRENT LIABILITIES	15,468	14,498
STOCKHOLDERS’ EQUITY:
Common stock, $0.001 par value - Authorized shares: 50,000,000 shares at March 31, 2017 and December 31, 2016; Issued and outstanding shares: 22,168,804 and 21,931,157 shares at March 31, 2017 and December 31, 2016, respectively	22	22
Additional paid-in capital	367,652	366,121
Treasury stock at cost	(120,404)	(122,632)
Accumulated other comprehensive loss	(1,537)	(1,852)
Accumulated deficit	(101,276)	(96,112)
TOTAL STOCKHOLDERS’ EQUITY	144,457	145,547
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 180,824	$ 185,944

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
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)	22,168,804	21,931,157
Common stock, outstanding (in shares)	22,168,804	21,931,157

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Revenues		$ 27,933	$ 27,659
Cost of revenues (1)	[1]	15,686	15,942
Gross profit		12,247	11,717
Operating expenses:
Research and development	[2]	9,190	8,889
Sales and marketing	[3]	3,575	3,392
General and administrative	[4]	2,487	2,283
Intangible assets amortization		425	321
Total operating expenses		15,677	14,885
Operating loss		(3,430)	(3,168)
Financial income, net		416	292
Loss before taxes on income		(3,014)	(2,876)
Income tax benefit (expense)		148	(37)
Net loss		$ (2,866)	$ (2,913)
Net loss per share:
Basic (in dollars per share)		$ (0.13)	$ (0.13)
Diluted (in dollars per share)		$ (0.13)	$ (0.13)
Weighted average number of shares used in per share computations of net earnings
Basic (in shares)		22,102	21,711
Diluted (in shares)		22,102	21,711
[1]	Includes equity-based compensation expense in the amount of $97 and $61 for the three months ended March 31, 2017 and 2016, respectively.
[2]	Includes equity-based compensation expense in the amount of $616 and $426 for the three months ended March 31, 2017 and 2016, respectively.
[3]	Includes equity-based compensation expense in the amount of $300 and $131 for the three months ended March 31, 2017 and 2016, respectively.
[4]	Includes equity-based compensation expense in the amount of $518 and $367 for the three months ended March 31, 2017 and 2016, respectively.

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Equity-based compensation expenses included in cost of revenues	$ 97	$ 61
Equity-based compensation expense included in research and development, net	616	426
Equity-based compensation expense included in sales and marketing	300	131
Equity-based compensation expense included in general and administrative	$ 518	$ 367

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Net loss	$ (2,866)	$ (2,913)
Changes in unrealized gains/losses	204	414
Reclassification adjustments for losses included in net loss	47	25
Net change	251	439
Changes in unrealized gains/losses	143	168
Reclassification adjustments for (gains) losses included in net loss	(75)	29
Net change	68	197
Amortization of actuarial loss and prior service benefit	5	4
Net change	5	4
Foreign currency translation adjustments, net	(9)	43
Net current period other comprehensive income (loss)	315	683
Comprehensive loss	$ (2,551)	$ (2,230)

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Net cash used in operating activities	$ (4,118)	$ (4,220)
Investing activities
Purchases of marketable securities	(3,297)	(20,220)
Proceeds from maturity of marketable securities	4,779	16,700
Proceeds from sales of marketable securities	3,089	6,556
Purchases of property and equipment	(387)	(651)
Decrease (increase) in restricted deposits	65	(4)
Net cash provided by investing activities	4,249	2,381
Financial activities
Purchase of treasury stock	(1,313)	(2,468)
Issuance of common stock and treasury stock upon exercise of stock options	647	580
Net cash used in financing activities	(666)	(1,888)
Decrease in cash and cash equivalents	(535)	(3,727)
Erosion due to exchange rate differences	(1)	55
Cash and cash equivalents at the beginning of the period	17,752	13,704
Cash and cash equivalents at the end of the period	$ 17,216	$ 10,032

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, 2015	21,573,000
Balance at Dec. 31, 2015	$ 22	$ 361,023	$ (125,697)	$ (90,763)	$ (1,267)	$ 143,318
Net loss				(2,913)		(2,913)
Change in accumulated other comprehensive income					683	683
Purchase of treasury stock (in shares)	(275,000)
Purchase of treasury stock			(2,407)			(2,407)
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan (in shares)	114,000
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan			1,114	(235)		879
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors (in shares)	285,000
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors			2,778	(2,198)		580
Equity-based compensation		985				985
Balance (in shares) at Mar. 31, 2016	21,697,000
Balance at Mar. 31, 2016	$ 22	362,008	(124,212)	(96,109)	(584)	141,125
Balance (in shares) at Dec. 31, 2016	21,931,000
Balance at Dec. 31, 2016	$ 22	366,121	(122,632)	(96,112)	(1,852)	145,547
Net loss				(2,866)		(2,866)
Change in accumulated other comprehensive income					315	$ 315
Purchase of treasury stock (in shares)	(124,000)					(124,294)
Purchase of treasury stock			(1,313)			$ (1,313)
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan (in shares)	113,000
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan			1,110	(168)		942
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors (in shares)	249,000
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors			2,431	(2,130)		301
Equity-based compensation		1,531				1,531
Balance (in shares) at Mar. 31, 2017	22,169,000
Balance at Mar. 31, 2017	$ 22	$ 367,652	$ (120,404)	$ (101,276)	$ (1,537)	$ 144,457

Note A - Basis of Presentation

Note A - Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
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 10 three March 31, 2017 may December 31, 2017. 10 December 31, 2016. The significant accounting policies applied in the annual consolidated financial statements of the Company as of December 31, 2016, 10 March 16, 2017, Use of Estimates The preparation of the interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the dates of the interim condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Recent Accounting Pronouncements . In March 2016, 2016 09, 718), 2016 09”). 2016 09 2016 09 December 15, 2016. 2016 09 March 31, 2017. In May 2014, 2014 09, 606) 2014 09”), August 2015, 2015 14, 606): 2014 09 one first 2018, first 2017. January 1, 2018. two

Note B - Inventories

Note B - Inventories	3 Months Ended
	Mar. 31, 2017
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: March 3 1 , 201 7 December 31, 201 6 (Unaudited) (Audited) Work-in-process $ 4,592 $ 5,784 Finished goods 4,647 3,964 $ 9,239 $ 9,748 Inventory write-off amounted to $59 $57 three March 31, 2017 2016,

Note C - Net Earnings (Loss) Pe

Note C - Net Earnings (Loss) Per Share	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Earnings Per Share [Text Block]	NOTE C—NET EARNINGS (LOSS) PER SHARE Basic net earnings (loss) per share are computed based on the weighted average number of shares of common stock outstanding during the period. For the same periods, diluted net earnings (loss) per share further include 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 Three months ended March 31, 2017 2016 (Unaudited) Net loss $ (2,866 ) $ (2,913 ) Loss per share: Basic $ (0.13 ) $ (0.13 ) Diluted $ (0.13 ) $ (0.13 ) Weighted average number of shares of common stock outstanding during the period used to compute basic net loss per share (in thousands) 22,102 21,711 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) - - Weighted average number of shares of common stock used to compute diluted net loss per share (in thousands) 22,102 21,711

Note D - Marketable Securities

Note D - Marketable Securities and Time Deposits	3 Months Ended
	Mar. 31, 2017
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 The Company classifies marketable securities as available-for-sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses, net of taxes, reported in other comprehensive income. The amortized cost of marketable securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and interest are included in financial income, net. Interest and dividends on securities are included in financial income, net. The following is a summary of available-for-sale securities at March 31, 2017 December 31, 2016: Amortized cost Unrealized losses, net Fair value March 31, 201 7 December 31, 2016 March 31 , 201 7 December 31, 2016 March 31, 201 7 December 31 , 2016 (Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited) Short-term deposits 7,786 $ 7,610 $ - $ - $ 7,786 $ 7,610 U.S. GSE securities 20,917 24,351 (293 ) (289 ) 20,624 24,062 Corporate obligations 74,716 76,264 (557 ) (813 ) 74,159 75,451 $ 103,419 $ 108,225 $ (850 ) $ (1,102 ) $ 102,569 $ 107,123 The amortized cost of marketable debt securities and short-term deposits at March 31, 2017, : Unrealized gains (losses) Amortized cost Gains Losses Fair value Due in one year or less $ 34,335 $ 5 $ (63 ) $ 34,277 Due after one year to five years 69,084 52 (844 ) 68,292 $ 103,419 $ 57 $ (907 ) $ 102,569 The actual maturity dates may may Management believes that as of March 31, 2017, The unrealized losses related to corporate obligations were primarily due to changes in interest rates. Because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may not March 31, 2017. The total fair value of marketable securities with outstanding unrealized losses as of March 31, 2017 $73,049, $907. $907 March 31, 2017, $167 12 $740 12 Proceeds from maturity of available-for-sale marketable securities during the three March 31, 2017 2016 $4,779 $16,700, three March 31, 2017 2016 $3,089 $6,556, three March 31, 2017 $47 three March 31, 2016 $25. 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	3 Months Ended
	Mar. 31, 2017
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 $1,132 $1,023 March 31, 2017 December 31, 2016, March 31, 2017 December 31, 2016, $55 $46, 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 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

Note F - Significant Customers

Note F - Significant Customers	3 Months Ended
	Mar. 31, 2017
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 The following table represents the Company’s sales, as a percentage of the Company’s total revenues, for the three March 31, 2017 2016, Three months ended March 31, Major c ustomers/ d istributors 201 7 201 6 VTech Holdings Ltd. 30% 32% Tomen Electronics Corporation ¹ ² 12% 9% Ascend Technology Inc. ¹ ³ 21% 15% Samsung Electronics Ltd. 1% 14% ¹ Distributor. ² Tomen Electronics sells the Company’s products to a limited number of customers; however none 10% three March 31, 2017 2016 none 10% three March 31, 2017 2016.

Note G - Derivative Instruments

Note G - Derivative Instruments	3 Months Ended
	Mar. 31, 2017
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. 815 815"). 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 twelve 815 In accordance with ASC 815, March 31, 2017, $2,250 no The fair value of derivative assets and derivative liabilities were $78 $1, March 31, 2017. $77 March 31, 2017. The amount recorded as an 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 March 31, 2017 $58, $6 $10, The fair value of the outstanding derivative instruments at March 31, 2017 December 31, 2016 Fair v alue of d erivative i nstruments Derivative Assets (Liabilities) Balance Sheet Location March 31, 201 7 December 31, 201 6 Unaudited Foreign exchange put and -call options Other accounts receivable and prepaid expenses $ 77 $ 9 $ 77 $ 9 The effect of derivative instruments in cash flow hedging transactions on income and other comprehensive income ("OCI") for the three March 31, 2017 2016 Gains on Derivatives Recognized in OCI for the three months ended March 31, Unaudited 2017 2016 Foreign exchange forward and option contracts $ 143 $ 168 Gains ( l osses) r eclassified from OCI into i ncome for the three months ended March 31 , Unaudited Location 2017 2016 Foreign exchange forward and option contracts Operating expenses $ 75 $ (29 )

Note H - Contingencies

Note H - Contingencies	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	NOTE h—CONTINGENCIES From time to time, the Company may may may third

Note I - Equity-based Compensat

Note I - Equity-based Compensation	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	NOTE i—EQUITY-BASED COMPENSATION Grants for the three March 31, 2017 March 31, 2016: The weighted average estimated fair value of employee restricted stock units (“RSUs”) granted during the three March 31, 2017 2016 $9.51 $8.18 3.59% 3.63% three March 31, 2017 2016, The weighted-average estimated fair value of employee stock options and stock appreciation rights ( "SARs ") granted during the three March 31, 2017 2016 $2.97 $3.97 , respectively, using the binomial model with the following weighted-average assumptions (annualized percentages): Three months ended March 31, 2017 2016 Volatility 37.69% 46.02% Risk-free interest rate 2.24% 2.29% Dividend yield 0% 0% Pre-vest cancellation rate 4.03% 1.87% Post-vest cancellation rate 3.45% 3.44% Suboptimal exercise factor 1.33 1.69 The expected life of employee stock options and SARs is impacted by all of the underlying assumptions used in the Company’s model. The binomial model assumes that employees’ exercise behavior is a function of the remaining contractual life of the stock option or SAR and the extent to which the stock option or SAR is in-the-money ( i.e. two three March 31, 2017 2016 4.24 5.63 Employee stock benefit plans As of March 31, 2017, two may three may one March 31, 2017, 829,000 72,000 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 a verage e xercise p rice Weighted a verage r emaining c ontractual t erm (years) (3) Aggregate v alue (*) in thousands in thousands Outstanding at December 31, 2016 2,152 $ 5.12 Options granted 78 11.93 RSUs granted 443 - SARs granted 168 10.15 Options / SARs / RSUs cancelled/forfeited/expired (55 ) 11.75 Options / SARs exercised and RSUs vested (279 ) $ 2.32 Outstanding at March 31, 2017 (1) 2,507 $ 4.93 4.31 $ 17,815 Exercisable at March 31, 2017 (2) 1,103 $ 8.02 3.60 $ 4,429 (*) Calculation of aggregate intrinsic value is based on the share price of the Company’s common stock on March 31, 2017 ($12.00 (1) "SAR ") grants, the outstanding amount above can be exercised for a maximum of 2,324,000 March 31, 2017. January 1, 2010 75% January 1, 2010 January 1, 2012 66.67% January 1, 2012 50% (2) 1,004,000 March 31, 2017. (3) Additional information about stock options, SARs and RSUs outstanding and exercisable at March 31, 2017 $12.00 March 31, 2017) Exercisable Unexercisable Total Exercise p rices Number of Options/ SARs / RSUs (in thousands) Weighted a verage e xercise p rice Number of Options/ SARs / RSUs (in thousands) Weighted a verage e xercise p rice Number of Options/ SARs / RSUs (in thousands) Weighted a verage e xercis e p rice Less than $12.00 1,063 $ 7.83 1,356 $ 2.13 2,419 $ 4.63 Above $12.00 40 $ 13.10 48 $ 13.05 88 $ 13.07 Total 1,103 $ 8.02 1,404 $ 2.50 2,507 $ 4.93 The Company’s aggregate equity-based compensation expense for the three March 31, 2017 2016 $1,531 $985, As of March 31, 2017, $7,612 2017 2021.

Note J - Pension Liability

Note J - Pension Liability	3 Months Ended
	Mar. 31, 2017
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 three March 31, 2017 2016 : March 31, 2017 2016 Components of net periodic benefit cost: Service cost and amortization of loss $ 6 $ 5 Interest cost 3 4 Expected return on plan assets - (1 ) Net periodic benefit cost $ 9 $ 8 The net pension liability as of March 31, 2017 $815.

Note K - Fair Value Measurement

Note K - Fair Value Measurements	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Fair Value, Measurement Inputs, Disclosure [Text Block]	NOTE k—FAIR VALUE MEASUREMENTS Assets and l iabilities m easured at f air v alue on a r ecurring b asis: 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 2 2 The following table provides information by value level for assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2017: Balance as of Fair v alue m easurements March 31, 2017 Level 1 Level 2 Level 3 Description Assets Cash equivalents Money market mutual funds $ 7,426 $ 7,426 - - Short-term marketable securities and cash deposits: Corporate debt securities $ 26,491 - $ 26,491 - Long-term marketable securities: U.S. GSE securities $ 20,624 - $ 20,624 - Corporate debt securities $ 47,668 - $ 47,668 - Derivative Assets $ 77 - $ 77 - 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, 2016. Balance as of Fair value measurements Description December 31, 2016 Level 1 Level 2 Level 3 Assets Cash equivalents Money market mutual funds $ 1,370 $ 1,370 - - Short-term marketable securities and time deposits U.S. GSE securities $ 376 - $ 376 - Corporate debt securities $ 21,045 - $ 21,045 - Long-term marketable securities U.S. GSE securities $ 23,686 - $ 23,686 - Corporate debt securities $ 54,406 - $ 54,406 - Derivative assets $ 9 - $ 9 - In addition to the assets and liabilities described above, the Company’s financial instruments also include cash and cash equivalents, restricted and short-term deposits, trade receivables, other accounts receivable, trade payables, accrued expenses and other payables. The fair value of these financial instruments was not materially different from their carrying values at March 31, 2017

Note L - Stockholders' Equity

Note L - Stockholders' Equity	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	NOTE l—STOCKHOLDERS’ EQUITY During the first three 2017, 124,294 $10.56 $1,313. March 31, 2017, 195,926 Repurchases of common stock are accounted for as treasury stock, and result in a reduction of stockholders’ equity. The Company reissues treasury shares pursuant to its stock purchase plan, upon exercise of options and upon vesting of restricted stock units. Reissuance of treasury shares is accounted for in accordance with ASC No. 505 30 During the first three 2017, 362,000 1993

Note M - Segment Information

Note M - Segment Information	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	NOTE M SEGMENT INFORMATION Description of segments: The Company operates under three The Company's segment information has been prepared in accordance with ASC 280, 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% 60% 54% first three 2017 2016, 10% first three 2017 2016. 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 24% 18% first three 2017 2016, 10% first three 2017 2016. 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 and voice quality enhancement HDClear technology. Revenues from the Company’s HDClear products represented 1% 14% first three 2017 2016, 10% first three 2017 2016. 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 March 31, 2017 2016: Revenues Income (loss) from operations Three months ended March 31, 2017 2016 2017 2016 Home $ 20,955 $ 18,655 $ 3,342 $ 1,478 Office 6,599 5,078 614 (2,023 ) Mobile 379 3,926 (5,017 ) (818 ) Total $ 27,933 $ 27,659 $ (1,061 ) $ (1,363 ) The reconciliation of segment operating results information to the Company’s consolidated financial information was as follows: Three months ended March 31 , 2017 201 6 Loss from operations $ (1,061 ) $ (1,363 ) Unallocated corporate, general and administrative expenses (413 ) (499 ) Equity-based compensation expenses (1,531 ) (985 ) Intangible assets amortization expenses (425 ) (321 ) Financial income, net 416 292 Total consolidated loss before taxes $ (3,014 ) $ (2,876 )

Note N - Accumulated Other Comp

Note N - Accumulated Other Comprehensive Income	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Accumulated Other Comprehensive Income Loss [Text Block]	NOTE N —ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in accumulated balances of other comprehensive income for the three March 31, 2017: 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 losses on foreign currency translation Total Beginning balance $ (1,101 ) $ 9 $ (455 ) $ (305 ) $ (1,852 ) Other comprehensive income (loss) before reclassifications 204 143 - (9 ) 338 Losses (gains) reclassified from accumulated other comprehensive income (loss) 47 (75 ) 5 - (23 ) Net current period other comprehensive income (loss) 251 68 5 (9 ) 315 Ending balance $ (850 ) $ 77 $ (450 ) $ (314 ) $ (1,537 ) The following table provides details about reclassifications out of accumulated other comprehensive income for the three March 31, 2017: Details about a ccumulated o ther c omprehensive i ncome ( l oss) c omponents Losses (Gains) Reclassified from a ccumulated o ther c omprehensive i ncome ( l oss) Affected l ine i tem in the s tatement of i ncome Losses on available-for-sale marketable securities $ 47 Financial income, net - Provision for income taxes 47 Total, net of income taxes Gains on cash flow hedges (59) Research and development (6) Sales and marketing (10) General and administrative (75) Total, before income taxes - Provision for income taxes (75) Total, net of income taxes Losses on components of defined benefit plans 3 Research and development 2 Sales and marketing 5 Total, before income taxes - Provision for income taxes 5 Total, net of income taxes Total reclassifications for the period $ (23) Total, net of income taxes

Note O - Government Grants

Note O - Government Grants	3 Months Ended
	Mar. 31, 2017
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 Innovation Authority ("IIA") (formerly known as Office of the Chief Scientist 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 $0.1 $0.6 three March 31, 2017 2016, The Company’s Israeli subsidiary is obligated to pay royalties amounting to 5% may may six third

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of the interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the dates of the interim condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements . In March 2016, 2016 09, 718), 2016 09”). 2016 09 2016 09 December 15, 2016. 2016 09 March 31, 2017. In May 2014, 2014 09, 606) 2014 09”), August 2015, 2015 14, 606): 2014 09 one first 2018, first 2017. January 1, 2018. two

Note B - Inventories (Tables)

Note B - Inventories (Tables)	3 Months Ended
	Mar. 31, 2017
Notes Tables
Schedule of Inventory, Current [Table Text Block]	March 3 1 , 201 7 December 31, 201 6 (Unaudited) (Audited) Work-in-process $ 4,592 $ 5,784 Finished goods 4,647 3,964 $ 9,239 $ 9,748

Note C - Net Earnings (Loss) 26

Note C - Net Earnings (Loss) Per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three months ended March 31, 2017 2016 (Unaudited) Net loss $ (2,866 ) $ (2,913 ) Loss per share: Basic $ (0.13 ) $ (0.13 ) Diluted $ (0.13 ) $ (0.13 ) Weighted average number of shares of common stock outstanding during the period used to compute basic net loss per share (in thousands) 22,102 21,711 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) - - Weighted average number of shares of common stock used to compute diluted net loss per share (in thousands) 22,102 21,711

Note D - Marketable Securitie27

Note D - Marketable Securities and Time Deposits (Tables)	3 Months Ended
	Mar. 31, 2017
Notes Tables
Available-for-sale Securities [Table Text Block]	Amortized cost Unrealized losses, net Fair value March 31, 201 7 December 31, 2016 March 31 , 201 7 December 31, 2016 March 31, 201 7 December 31 , 2016 (Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited) Short-term deposits 7,786 $ 7,610 $ - $ - $ 7,786 $ 7,610 U.S. GSE securities 20,917 24,351 (293 ) (289 ) 20,624 24,062 Corporate obligations 74,716 76,264 (557 ) (813 ) 74,159 75,451 $ 103,419 $ 108,225 $ (850 ) $ (1,102 ) $ 102,569 $ 107,123
Investments Classified by Contractual Maturity Date [Table Text Block]	Unrealized gains (losses) Amortized cost Gains Losses Fair value Due in one year or less $ 34,335 $ 5 $ (63 ) $ 34,277 Due after one year to five years 69,084 52 (844 ) 68,292 $ 103,419 $ 57 $ (907 ) $ 102,569

Note F - Significant Customers

Note F - Significant Customers (Tables)	3 Months Ended
	Mar. 31, 2017
Customer Concentration Risk [Member]
Notes Tables
Schedules of Concentration of Risk, by Risk Factor [Table Text Block]	Three months ended March 31, Major c ustomers/ d istributors 201 7 201 6 VTech Holdings Ltd. 30% 32% Tomen Electronics Corporation ¹ ² 12% 9% Ascend Technology Inc. ¹ ³ 21% 15% Samsung Electronics Ltd. 1% 14%

Note G - Derivative Instrumen29

Note G - Derivative Instruments (Tables)	3 Months Ended
	Mar. 31, 2017
Notes Tables
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]	Fair v alue of d erivative i nstruments Derivative Assets (Liabilities) Balance Sheet Location March 31, 201 7 December 31, 201 6 Unaudited Foreign exchange put and -call options Other accounts receivable and prepaid expenses $ 77 $ 9 $ 77 $ 9
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block]	Gains on Derivatives Recognized in OCI for the three months ended March 31, Unaudited 2017 2016 Foreign exchange forward and option contracts $ 143 $ 168
Derivative Instruments, Gain (Loss) [Table Text Block]	Gains ( l osses) r eclassified from OCI into i ncome for the three months ended March 31 , Unaudited Location 2017 2016 Foreign exchange forward and option contracts Operating expenses $ 75 $ (29 )

Note I - Equity-based Compens30

Note I - Equity-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2017
Notes Tables
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	Three months ended March 31, 2017 2016 Volatility 37.69% 46.02% Risk-free interest rate 2.24% 2.29% Dividend yield 0% 0% Pre-vest cancellation rate 4.03% 1.87% Post-vest cancellation rate 3.45% 3.44% Suboptimal exercise factor 1.33 1.69
Share-based Compensation, Activity [Table Text Block]	Number of Options/SARs/RSUs Weighted a verage e xercise p rice Weighted a verage r emaining c ontractual t erm (years) (3) Aggregate v alue (*) in thousands in thousands Outstanding at December 31, 2016 2,152 $ 5.12 Options granted 78 11.93 RSUs granted 443 - SARs granted 168 10.15 Options / SARs / RSUs cancelled/forfeited/expired (55 ) 11.75 Options / SARs exercised and RSUs vested (279 ) $ 2.32 Outstanding at March 31, 2017 (1) 2,507 $ 4.93 4.31 $ 17,815 Exercisable at March 31, 2017 (2) 1,103 $ 8.02 3.60 $ 4,429
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]	Exercisable Unexercisable Total Exercise p rices Number of Options/ SARs / RSUs (in thousands) Weighted a verage e xercise p rice Number of Options/ SARs / RSUs (in thousands) Weighted a verage e xercise p rice Number of Options/ SARs / RSUs (in thousands) Weighted a verage e xercis e p rice Less than $12.00 1,063 $ 7.83 1,356 $ 2.13 2,419 $ 4.63 Above $12.00 40 $ 13.10 48 $ 13.05 88 $ 13.07 Total 1,103 $ 8.02 1,404 $ 2.50 2,507 $ 4.93

Note J - Pension Liability (Tab

Note J - Pension Liability (Tables)	3 Months Ended
	Mar. 31, 2017
Notes Tables
Schedule of Net Benefit Costs [Table Text Block]	March 31, 2017 2016 Components of net periodic benefit cost: Service cost and amortization of loss $ 6 $ 5 Interest cost 3 4 Expected return on plan assets - (1 ) Net periodic benefit cost $ 9 $ 8

Note K - Fair Value Measureme32

Note K - Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2017
Notes Tables
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	Balance as of Fair v alue m easurements March 31, 2017 Level 1 Level 2 Level 3 Description Assets Cash equivalents Money market mutual funds $ 7,426 $ 7,426 - - Short-term marketable securities and cash deposits: Corporate debt securities $ 26,491 - $ 26,491 - Long-term marketable securities: U.S. GSE securities $ 20,624 - $ 20,624 - Corporate debt securities $ 47,668 - $ 47,668 - Derivative Assets $ 77 - $ 77 - Balance as of Fair value measurements Description December 31, 2016 Level 1 Level 2 Level 3 Assets Cash equivalents Money market mutual funds $ 1,370 $ 1,370 - - Short-term marketable securities and time deposits U.S. GSE securities $ 376 - $ 376 - Corporate debt securities $ 21,045 - $ 21,045 - Long-term marketable securities U.S. GSE securities $ 23,686 - $ 23,686 - Corporate debt securities $ 54,406 - $ 54,406 - Derivative assets $ 9 - $ 9 -

Note M - Segment Information (T

Note M - Segment Information (Tables)	3 Months Ended
	Mar. 31, 2017
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Revenues Income (loss) from operations Three months ended March 31, 2017 2016 2017 2016 Home $ 20,955 $ 18,655 $ 3,342 $ 1,478 Office 6,599 5,078 614 (2,023 ) Mobile 379 3,926 (5,017 ) (818 ) Total $ 27,933 $ 27,659 $ (1,061 ) $ (1,363 )
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]	Three months ended March 31 , 2017 201 6 Loss from operations $ (1,061 ) $ (1,363 ) Unallocated corporate, general and administrative expenses (413 ) (499 ) Equity-based compensation expenses (1,531 ) (985 ) Intangible assets amortization expenses (425 ) (321 ) Financial income, net 416 292 Total consolidated loss before taxes $ (3,014 ) $ (2,876 )

Note N - Accumulated Other Co34

Note N - Accumulated Other Comprehensive Income (Tables)	3 Months Ended
	Mar. 31, 2017
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 losses on foreign currency translation Total Beginning balance $ (1,101 ) $ 9 $ (455 ) $ (305 ) $ (1,852 ) Other comprehensive income (loss) before reclassifications 204 143 - (9 ) 338 Losses (gains) reclassified from accumulated other comprehensive income (loss) 47 (75 ) 5 - (23 ) Net current period other comprehensive income (loss) 251 68 5 (9 ) 315 Ending balance $ (850 ) $ 77 $ (450 ) $ (314 ) $ (1,537 )
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]	Details about a ccumulated o ther c omprehensive i ncome ( l oss) c omponents Losses (Gains) Reclassified from a ccumulated o ther c omprehensive i ncome ( l oss) Affected l ine i tem in the s tatement of i ncome Losses on available-for-sale marketable securities $ 47 Financial income, net - Provision for income taxes 47 Total, net of income taxes Gains on cash flow hedges (59) Research and development (6) Sales and marketing (10) General and administrative (75) Total, before income taxes - Provision for income taxes (75) Total, net of income taxes Losses on components of defined benefit plans 3 Research and development 2 Sales and marketing 5 Total, before income taxes - Provision for income taxes 5 Total, net of income taxes Total reclassifications for the period $ (23) Total, net of income taxes

Note B - Inventories (Details T

Note B - Inventories (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Inventory Write-down	$ 59	$ 57

Note B - Inventories - Componen

Note B - Inventories - Components of Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Work-in-process	$ 4,592	$ 5,784
Finished goods	4,647	3,964
	$ 9,239	$ 9,748

Note C - Net Earnings (Loss) 37

Note C - Net Earnings (Loss) Per Share - Net Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Net loss	$ (2,866)	$ (2,913)
Basic (in dollars per share)	$ (0.13)	$ (0.13)
Diluted (in dollars per share)	$ (0.13)	$ (0.13)
Basic (in shares)	22,102	21,711
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)
Weighted average number of shares of common stock used to compute diluted net loss per share (in thousands) (in shares)	22,102	21,711

Note D - Marketable Securitie38

Note D - Marketable Securities and Time Deposits (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	$ 73,049
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	907
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	167
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	740
Proceeds from Maturities, Prepayments and Calls of Available-for-sale Securities	4,779	$ 16,700
Proceeds from Sale of Available-for-sale Securities	3,089	6,556
Gain (Loss) on Sale of Securities, Net	(47)	$ (25)
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities	0
Corporate Debt Securities [Member]
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities	$ 0

Note D - Marketable Securitie39

Note D - Marketable Securities and Time Deposits - Marketable Securities and Time Deposits (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Marketable securities and time deposits, amortized cost	$ 103,419	$ 108,225
Marketable securities and time deposits, unrealized gains (losses), net	(850)	(1,102)
Marketable securities and time deposits, estimated fair value	102,569	107,123
Short-term Deposits [Member]
Marketable securities and time deposits, amortized cost	7,786	7,610
Marketable securities and time deposits, unrealized gains (losses), net
Marketable securities and time deposits, estimated fair value	7,786	7,610
US Government-sponsored Enterprises Debt Securities [Member]
Marketable securities and time deposits, amortized cost	20,917	24,351
Marketable securities and time deposits, unrealized gains (losses), net	(293)	(289)
Marketable securities and time deposits, estimated fair value	20,624	24,062
Corporate Debt Securities [Member]
Marketable securities and time deposits, amortized cost	74,716	76,264
Marketable securities and time deposits, unrealized gains (losses), net	(557)	(813)
Marketable securities and time deposits, estimated fair value	$ 74,159	$ 75,451

Note D - Marketable Securitie40

Note D - Marketable Securities and Time Deposits - Marketable Debt Securities by Contractual Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Marketable debt securities, amortized cost	$ 103,419	$ 108,225
Marketable debt securities, estimated fair value	102,569	$ 107,123
Debt Securities [Member]
Marketable debt securities, amortized cost	103,419
Marketable debt securities, unrealized gains	57
Marketable debt securities, unrealized losses	(907)
Marketable debt securities, estimated fair value	102,569
Debt Securities [Member] | Due in One Year or Less [Member]
Marketable debt securities, amortized cost	34,335
Marketable debt securities, unrealized gains	5
Marketable debt securities, unrealized losses	(63)
Marketable debt securities, estimated fair value	34,277
Debt Securities [Member] | Due after One Year to Five Years [Member]
Marketable debt securities, amortized cost	69,084
Marketable debt securities, unrealized gains	52
Marketable debt securities, unrealized losses	(844)
Marketable debt securities, estimated fair value	$ 68,292

Note E - Taxes on Income (Detai

Note E - Taxes on Income (Details Textual) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Unrecognized Tax Benefits	$ 1,132	$ 1,023
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	$ 55	$ 46

Note F - Significant Customer42

Note F - Significant Customers (Details Textual) - Customer Concentration Risk [Member] - Sales Revenue, Net [Member] xbrli-pure in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Customers to Which the Company’s Products Are Sold Through Tomen Electronics [Member]
Number of Major Customers	0	0
Customers to Which the Company's Products Are Sold Through Ascend Technology [Member]
Number of Major Customers	0	0

Note F - Significant Customer43

Note F - Significant Customers - Sales to Major Customers (Distributors) as a Percentage of Total Revenues (Details) - Customer Concentration Risk [Member] - Sales Revenue, Net [Member]		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
VTech Holdings Ltd [Member]
Concentration risk, percentage		30.00%	32.00%
Tomen Electronics Corporation [Member]
Concentration risk, percentage	[1],[2]	12.00%	9.00%
Ascend Technology Inc [Member]
Concentration risk, percentage	[1],[3]	21.00%	15.00%
Samsung Mobile [Member]
Concentration risk, percentage		1.00%	14.00%
[1]	Distributor
[2]	Tomen Electronics sells the Company’s products to a limited number of customers; however none of those customers accounted for more than 10% of the Company’s total revenues for the three months periods ended March 31, 2017 and 2016.
[3]	Ascend Technology sells the Company's products to a limited number of customers; however none of those customers accounted for more than 10% of the Company's total revenues for the three months periods ended March 31, 2017 and 2016 .

Note G - Derivative Instrumen44

Note G - Derivative Instruments (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Derivative Asset	$ 78
Derivative Liability	1
Research and Development Expense [Member]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	58
Selling and Marketing Expense [Member]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	6
General and Administrative Expense [Member]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	10
Foreign Exchange Option [Member]
Price Risk Cash Flow Hedge Asset, at Fair Value	2,250
Foreign Exchange Forward Contracts and Put Options [Member] | Other Accounts Receivable [Member]
Derivative Assets (Liabilities), at Fair Value, Net	77	$ 9
Foreign Exchange Contract [Member]
Price Risk Cash Flow Hedge Asset, at Fair Value	$ 0

Note G - Derivative Instrumen45

Note G - Derivative Instruments - The Fair Value of the Derivative Instruments (Details) - Foreign Exchange Forward Contracts and Put Options [Member] - USD ($) $ in Thousands	Mar. 31, 2017	Mar. 31, 2016
Accounts Payable and Accrued Liabilities [Member]
Derivative Assets (Liabilities), at Fair Value, Net	$ 77	$ 9
Other Accounts Receivable [Member]
Derivative Assets (Liabilities), at Fair Value, Net	$ 77	$ 9

Note G - Derivative Instrumen46

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
	Mar. 31, 2017	Mar. 31, 2016
Foreign exchange forward and option contracts	$ 75	$ (29)
Gains Losses on Derivatives Recognized in OCI [Member]
Foreign exchange forward and option contracts	$ 143	$ 168

Note G - Derivative Instrumen47

Note G - Derivative Instruments - Gains (Losses) on Derivatives Reclassified from OCI to Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Foreign exchange forward and option contracts	$ 75	$ (29)

Note I - Equity-based Compens48

Note I - Equity-based Compensation (Details Textual) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended	24 Months Ended	63 Months Ended
	Mar. 31, 2017USD ($)$ / sharesshares	Mar. 31, 2016USD ($)$ / shares	Dec. 31, 2009	Dec. 31, 2011	Mar. 31, 2017USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Number of Equity Incentive Plans from Which Future Equity Awards May Be Granted	2				2
Share-based Compensation Arrangement by Share-based Payment Award Number of Expired Equity Incentive Plans	3				3
Share-based Compensation Arrangement by Share-based Payment Award Number of Employee Purchase Plans	1				1
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares to be Issued Upon Exercise of Outstanding Awards | shares	2,324,000				2,324,000
Allocated Share-based Compensation Expense | $	$ 1,531	$ 985
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $	$ 7,612				$ 7,612
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award Options and Stock Appreciation Rights, Exercisable Number | shares	1,004,000				1,004,000
Common Stock [Member]
Share Price | $ / shares	$ 12				$ 12
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | shares	829,000				829,000
Equity Incentive Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | shares	72,000				72,000
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	$ 9.51	$ 8.18
Share-based Compensation Arrangement by Share-based Payment Award, Weighted Average Pre Vest Cancel Rate	3.59%	3.63%
Stock Appreciation Rights (SARs) [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	$ 2.97	$ 3.97
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	4 years 87 days	5 years 229 days
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%	66.67%	50.00%
Employee Stock Option [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	$ 2.97	$ 3.97
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	4 years 87 days	5 years 229 days

Note I - Equity-based Compens49

Note I - Equity-based Compensation - Weighted-average Fair Value Assumptions (Details)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Volatility	37.69%	46.02%
Risk-free interest rate	2.24%	2.29%
Dividend yield	0.00%	0.00%
Pre-vest cancellation rate	4.03%	1.87%
Post-vest cancellation rate	3.45%	3.44%
Suboptimal exercise factor	1.33%	1.69%

Note I - Equity-based Compens50

Note I - Equity-based Compensation - Stock Options, SARs and RSUs Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)$ / sharesshares
Outstanding (in shares)	2,152
Outstanding, weighted average exercise price (in dollars per share) | $ / shares	$ 5.12
Options granted (in shares)	78
Options granted, weighted average exercise price (in dollars per share) | $ / shares	$ 11.93
Options / SARs / RSUs cancelled/forfeited/expired (in shares)	(55)
Options / SARs / RSUs cancelled/forfeited/expired, weighted average exercise price (in dollars per share) | $ / shares	$ 11.75
Options / SARs exercised and RSUs vested (in shares)	(279)
Options / SARs exercised and RSUs vested, weighted average exercise price (in dollars per share) | $ / shares	$ 2.32
Outstanding (in shares)	2,507	[1]
Outstanding, weighted average exercise price (in dollars per share) | $ / shares	$ 4.93	[1]
Outstanding, weighted average remaining contractual term (Year)	4 years 113 days	[1],[2]
Outstanding, aggregate value | $	$ 17,815	[1],[3]
Exercisable (in shares)	1,103	[4]
Exercisable, weighted average exercise price (in dollars per share) | $ / shares	$ 8.02	[4]
Exercisable, weighted average remaining contractual term (Year)	3 years 219 days	[2],[4]
Exercisable, aggregate value | $	$ 4,429	[3],[4]
Restricted Stock Units (RSUs) [Member]
Non-option instruments granted (in shares)	443
Stock Appreciation Rights (SARs) [Member]
Non-option instruments granted (in shares)	168
SARs granted, weighted average exercise price (in dollars per share) | $ / shares	$ 10.15
[1]	Due to the ceiling imposed on the stock appreciation right ("SAR") grants, the outstanding amount above can be exercised for a maximum of 2,324,000 shares of the Company’s common stock as of March 31, 2017. SAR grants made on or after January 1, 2010 and before January 1, 2012 are convertible for a maximum number of shares of the Company’s common stock equal to 66.67% of the SARs subject to the grant. SAR grants made on or after January 1, 2012 are convertible for a maximum number of shares of the Company’s common stock equal to 50% of the SARs subject to the grant.
[2]	Calculation of weighted average remaining contractual term does not include the RSUs that were granted, which have indefinite contractual term.
[3]	Calculation of aggregate intrinsic value is based on the share price of the Company's common stock on March 31, 2017 ($12.00 per share).
[4]	Due to the ceiling imposed on the SAR grants, the exercisable amount above can be exercised for a maximum of 1,004,000 shares of the Company’s common stock as of March 31, 2017.

Note I - Equity-based Compens51

Note I - Equity-based Compensation - Company's Stock Options and SAR Units Outstanding and Exercisable (Details) shares in Thousands	Mar. 31, 2017$ / sharesshares
Number of Options/ SARs / RSUs - Exercisable (in shares) | shares	1,103
Weighted Average Exercise Price - Exercisable (in dollars per share) | $ / shares	$ 8.02
Number of Options/ SARs / RSUs - Unexercisable (in shares) | shares	1,404
Weighted Average Exercise Price - Unexercisable (in dollars per share) | $ / shares	$ 2.50
Number of Options/ SARs / RSUs (in shares) | shares	2,507
Weighted Average Exercise Price (in dollars per share) | $ / shares	$ 4.93
Range 1 [Member]
Number of Options/ SARs / RSUs - Exercisable (in shares) | shares	1,063
Weighted Average Exercise Price - Exercisable (in dollars per share) | $ / shares	$ 7.83
Number of Options/ SARs / RSUs - Unexercisable (in shares) | shares	1,356
Weighted Average Exercise Price - Unexercisable (in dollars per share) | $ / shares	$ 2.13
Number of Options/ SARs / RSUs (in shares) | shares	2,419
Weighted Average Exercise Price (in dollars per share) | $ / shares	$ 4.63
Range 2 [Member]
Number of Options/ SARs / RSUs - Exercisable (in shares) | shares	40
Weighted Average Exercise Price - Exercisable (in dollars per share) | $ / shares	$ 13.10
Number of Options/ SARs / RSUs - Unexercisable (in shares) | shares	48
Weighted Average Exercise Price - Unexercisable (in dollars per share) | $ / shares	$ 13.05
Number of Options/ SARs / RSUs (in shares) | shares	88
Weighted Average Exercise Price (in dollars per share) | $ / shares	$ 13.07

Note J - Pension Liability (Det

Note J - Pension Liability (Details Textual) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Liability, Defined Benefit Pension Plan, Noncurrent	$ 815	$ 803

Note J - Pension Liability - Co

Note J - Pension Liability - Components of Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Components of net periodic benefit cost:
Service cost and amortization of loss	$ 6	$ 5
Interest cost	3	4
Expected return on plan assets		(1)
Net periodic benefit cost	$ 9	$ 8

Note K - Fair Value Measureme54

Note K - Fair Value Measurements - Fair Value Measurements of Assets and Liabilities on Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Money Market Funds [Member]
Money market mutual funds	$ 7,426	$ 1,370
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Money market mutual funds	7,426	1,370
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
US Government-sponsored Enterprises Debt Securities [Member]
Short-term securities	20,624	376
Long-term securities		23,686
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	20,624	376
Long-term securities		23,686
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Short-term securities
Long-term securities
Corporate Debt Securities [Member]
Short-term securities	26,491	21,045
Long-term securities	47,668	54,406
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	26,491	21,045
Long-term securities	47,668	54,406
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Short-term securities
Long-term securities
Derivative Financial Instruments, Assets [Member]
Derivative Assets	77	9
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	77	9
Derivative Financial Instruments, Assets [Member] | Fair Value, Inputs, Level 3 [Member]
Derivative Assets

Note L - Stockholders' Equity (

Note L - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Treasury Stock, Shares, Acquired	124,294
Treasury Stock Acquired, Average Cost Per Share	$ 10.56
Treasury Stock, Value, Acquired, Cost Method	$ 1,313	$ 2,407
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased	195,926
Stock Issued During Period, Shares, Employee Stock Ownership Plan	362,000

Note M - Segment Information (D

Note M - Segment Information (Details Textual)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Number of Reportable Segments	3
Product Concentration Risk [Member] | Sales Revenue, Segment [Member] | Home [Member] | Telephony [Member]
Concentration Risk, Percentage	60.00%	54.00%
Product Concentration Risk [Member] | Sales Revenue, Segment [Member] | Home [Member] | Gateway [Member]
Concentration Risk, Percentage	10.00%	10.00%
Product Concentration Risk [Member] | Sales Revenue, Segment [Member] | Office [Member] | VoIP [Member]
Concentration Risk, Percentage	24.00%	18.00%
Product Concentration Risk [Member] | Sales Revenue, Segment [Member] | Mobile [Member]
Concentration Risk, Percentage	1.00%	14.00%

Note M - Segment Information -

Note M - Segment Information - Selected Operating Results (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenues	$ 27,933	$ 27,659
Loss from operations	(1,061)	(1,363)
Home [Member]
Revenues	20,955	18,655
Loss from operations	3,342	1,478
Office [Member]
Revenues	6,599	5,078
Loss from operations	614	(2,023)
Mobile [Member]
Revenues	379	3,926
Loss from operations	$ (5,017)	$ (818)

Note M - Segment Information 58

Note M - Segment Information - Reconciliation of Segment Operating Results (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Loss from operations	$ (1,061)	$ (1,363)
Unallocated corporate, general and administrative expenses	(413)	(499)
Equity-based compensation expenses	(1,531)	(985)
Intangible assets amortization expenses	(425)	(321)
Losses on available-for-sale marketable securities	416	292
Total consolidated loss before taxes	$ (3,014)	$ (2,876)

Note N - Accumulated Other Co59

Note N - Accumulated Other Comprehensive Income - Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Beginning balance	$ (1,852)
Other comprehensive income (loss) before reclassifications	338
Losses (gains) reclassified from accumulated other comprehensive income (loss)	(23)
Net current period other comprehensive income (loss)	315	$ 683
Ending balance	(1,537)
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
Beginning balance	(1,101)
Other comprehensive income (loss) before reclassifications	204
Losses (gains) reclassified from accumulated other comprehensive income (loss)	47
Net current period other comprehensive income (loss)	251
Ending balance	(850)
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Beginning balance	9
Other comprehensive income (loss) before reclassifications	143
Losses (gains) reclassified from accumulated other comprehensive income (loss)	(75)
Net current period other comprehensive income (loss)	68
Ending balance	77
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Beginning balance	(455)
Other comprehensive income (loss) before reclassifications
Losses (gains) reclassified from accumulated other comprehensive income (loss)	5
Net current period other comprehensive income (loss)	5
Ending balance	(450)
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Beginning balance	(305)
Other comprehensive income (loss) before reclassifications	(9)
Losses (gains) reclassified from accumulated other comprehensive income (loss)
Net current period other comprehensive income (loss)	(9)
Ending balance	$ (314)

Note N - Accumulated Other Co60

Note N - Accumulated Other Comprehensive Income - Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Losses on available-for-sale marketable securities		$ 416	$ 292
Net loss		(2,866)	(2,913)
Research and development	[1]	9,190	8,889
Sales and marketing	[2]	3,575	3,392
General and administrative	[3]	2,487	2,283
Research and development	[1]	9,190	8,889
Sales and marketing	[2]	3,575	$ 3,392
Reclassification out of Accumulated Other Comprehensive Income [Member]
Net loss		(23)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
Losses on available-for-sale marketable securities		47
Net loss		47
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Net loss		(75)
Research and development		(59)
Sales and marketing		(6)
General and administrative		(10)
Research and development		(59)
Sales and marketing		(6)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Net loss		5
Research and development		3
Sales and marketing		2
General and administrative		5
Research and development		3
Sales and marketing		$ 2
[1]	Includes equity-based compensation expense in the amount of $616 and $426 for the three months ended March 31, 2017 and 2016, respectively.
[2]	Includes equity-based compensation expense in the amount of $300 and $131 for the three months ended March 31, 2017 and 2016, respectively.
[3]	Includes equity-based compensation expense in the amount of $518 and $367 for the three months ended March 31, 2017 and 2016, respectively.

Note O - Government Grants (Det

Note O - Government Grants (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Financial Grants in Support of Research and Development	$ 0.1	$ 0.6
Financial Grants in Support of Research and Development, Royalty Obligation	5.00%