Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 12, 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 | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 22,322,982 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 14,698 | $ 17,752 |
Restricted deposits | 514 | 70 |
Marketable securities and short-term deposits | 28,107 | 29,031 |
Trade receivables | 19,990 | 19,069 |
Other accounts receivable and prepaid expenses | 2,838 | 2,331 |
Inventories | 10,693 | 9,748 |
TOTAL CURRENT ASSETS | 76,840 | 78,001 |
PROPERTY AND EQUIPMENT, NET | 3,485 | 4,130 |
NON-CURRENT ASSETS: | ||
Long-term marketable securities | 78,855 | 78,092 |
Long-term prepaid expenses and lease deposits | 1,483 | 1,329 |
Deferred income taxes | 701 | 918 |
Severance pay fund | 14,772 | 12,751 |
Intangible assets, net | 3,204 | 4,480 |
Goodwill | 6,243 | 6,243 |
TOTAL NON-CURRENT ASSETS | 105,258 | 103,813 |
TOTAL ASSETS | 185,583 | 185,944 |
CURRENT LIABILITIES: | ||
Trade payables | 11,999 | 12,540 |
Accrued compensation and benefits | 7,534 | 8,666 |
Income tax accruals and payables | 953 | 1,137 |
Accrued expenses and other accounts payable | 2,906 | 3,556 |
TOTAL CURRENT LIABILITIES | 23,392 | 25,899 |
NON-CURRENT LIABILITIES: | ||
Deferred income taxes | 490 | 787 |
Accrued severance pay | 15,053 | 12,908 |
Accrued pensions | 897 | 803 |
TOTAL NON-CURRENT LIABILITIES | 16,440 | 14,498 |
STOCKHOLDERS’ EQUITY: | ||
Common stock, $ 0.001 par value - Authorized shares: 50,000,000 shares at September 30, 2017 and December 31, 2016; Issued and outstanding shares: 22,276,112 and 21,931,157 shares at September 30, 2017 and December 31, 2016, respectively | 22 | 22 |
Additional paid-in capital | 370,647 | 366,121 |
Treasury stock at cost | (119,909) | (122,632) |
Accumulated other comprehensive loss | (1,458) | (1,852) |
Accumulated deficit | (103,551) | (96,112) |
TOTAL STOCKHOLDERS’ EQUITY | 145,751 | 145,547 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 185,583 | $ 185,944 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Sep. 30, 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) | 22,276,112 | 21,931,157 |
Common stock, outstanding (in shares) | 22,276,112 | 21,931,157 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Revenues | $ 34,277 | $ 38,768 | $ 93,511 | $ 102,591 | |
Cost of revenues (1) | [1] | 18,270 | 21,418 | 50,760 | 57,639 |
Gross profit | 16,007 | 17,350 | 42,751 | 44,952 | |
Operating expenses: | |||||
Research and development | [2] | 9,214 | 8,504 | 27,565 | 26,430 |
Sales and marketing | [3] | 3,635 | 3,617 | 10,640 | 10,332 |
General and administrative (4) | [4] | 2,483 | 2,064 | 7,342 | 6,622 |
Intangible assets amortization | 425 | 390 | 1,275 | 1,032 | |
Other income | (2,549) | (2,549) | |||
Total operating expenses | 15,757 | 12,026 | 46,822 | 41,867 | |
Operating income (loss) | 250 | 5,324 | (4,071) | 3,085 | |
Financial income, net | 382 | 344 | 1,216 | 910 | |
Income (loss) before taxes on income | 632 | 5,668 | (2,855) | 3,995 | |
Taxes on income | 54 | 334 | 19 | 494 | |
Net income (loss) | $ 578 | $ 5,334 | $ (2,874) | $ 3,501 | |
Net earnings (loss) per share: | |||||
Basic (in dollars per share) | $ 0.03 | $ 0.24 | $ (0.13) | $ 0.16 | |
Diluted (in dollars per share) | $ 0.02 | $ 0.23 | $ (0.13) | $ 0.15 | |
Weighted average number of shares used in per share computations of net earnings (loss): | |||||
Basic (in shares) | 22,276 | 21,943 | 22,186 | 21,798 | |
Diluted (in shares) | 23,243 | 23,185 | 22,186 | 22,882 | |
[1] | Includes equity-based compensation expense in the amount of $84 and $98 for the three months ended September 30, 2017 and 2016, and $275 and $242 for the nine months ended September 30, 2017 and 2016, respectively. | ||||
[2] | Includes equity-based compensation expense in the amount of $576 and $668 for the three months ended September 30, 2017 and 2016, respectively; and $1,815 and $1,615 for the nine months ended September 30, 2017 and 2016, respectively. | ||||
[3] | Includes equity-based compensation expense in the amount of $273 and $230 for the three months ended September 30, 2017 and 2016, respectively; and $870 and $555 for the nine months ended September 30, 2017 and 2016, respectively. | ||||
[4] | Includes equity-based compensation expense in the amount of $505 and $465 for the three months ended September 30, 2017 and 2016, respectively; and $1,566 and $1,293 for the nine months ended September 30, 2017 and 2016, respectively. |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Operations (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Equity-based compensation expenses included in cost of revenues | $ 84 | $ 98 | $ 275 | $ 242 |
Equity-based compensation expense included in research and development, net | 576 | 668 | 1,815 | 1,615 |
Equity-based compensation expense included in sales and marketing | 273 | 230 | 870 | 555 |
Equity-based compensation expense included in general and administrative | $ 505 | $ 465 | $ 1,566 | $ 1,293 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net income (loss) | $ 578 | $ 5,334 | $ (2,874) | $ 3,501 |
Unrealized losses arising during the period | (61) | (262) | 299 | 356 |
Reclassification adjustments for losses (gains) included in net income | 1 | (15) | 59 | 17 |
Net change | (60) | (277) | 358 | 373 |
Unrealized gains (losses) arising during the period | (29) | 65 | 163 | 123 |
Reclassification adjustments for (gains) losses included in net loss | (19) | (15) | (172) | 1 |
Net change | (48) | 50 | (9) | 124 |
Amortization of actuarial loss and prior service benefit | 6 | 4 | 16 | 11 |
Net change | 6 | 4 | 16 | 11 |
Foreign currency translation adjustments, net | 35 | (3) | 29 | 59 |
Net current period other comprehensive income (loss) | (67) | (226) | 394 | 567 |
Comprehensive income | $ 511 | $ 5,108 | $ (2,480) | $ 4,068 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Net cash provided by operating activities | $ 1,379 | $ 5,938 |
Investing activities | ||
Purchases of marketable securities | (28,812) | (46,311) |
Proceeds from maturity of marketable securities | 18,474 | 34,265 |
Proceeds from sales of short-term deposits | 425 | |
Investment in short-term deposits | (3,000) | |
Proceeds from sales of marketable securities | 12,988 | 13,072 |
Purchases of property and equipment | (715) | (1,505) |
Acquisition of initially consolidated subsidiary | (494) | |
Decrease (increase) in restricted deposits | (445) | 97 |
Net cash used in investing activities | (1,085) | (876) |
Financial activities | ||
Purchase of treasury stock | (4,365) | (5,950) |
Repayment of short term bank loan | (168) | |
Issuance of treasury stock upon exercise of stock options | 959 | 1,196 |
Net cash used in financing activities | (3,406) | (4,922) |
Increase (decrease) in cash and cash equivalents | (3,112) | 140 |
Erosion due to exchange rate differences | 58 | 64 |
Cash and cash equivalents at the beginning of the period | 17,752 | 13,704 |
Cash and cash equivalents at the end of the period | $ 14,698 | $ 13,908 |
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 income (loss) | 3,501 | 3,501 | |||||
Change in accumulated other comprehensive income | 567 | 567 | |||||
Purchase of treasury stock (in shares) | (623,000) | ||||||
Purchase of treasury stock | $ (1) | (6,081) | (6,081) | ||||
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan (in shares) | 233,000 | ||||||
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan | [1] | 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) | 826,000 | ||||||
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors | $ 1 | 8,032 | (6,845) | 1,188 | |||
Equity-based compensation | 3,705 | 3,705 | |||||
Balance (in shares) at Sep. 30, 2016 | 22,009,000 | ||||||
Balance at Sep. 30, 2016 | $ 22 | 364,737 | (121,476) | (94,600) | (700) | 147,983 | |
Balance (in shares) at Jun. 30, 2016 | 21,743,000 | ||||||
Balance at Jun. 30, 2016 | $ 22 | 363,267 | (123,749) | (96,676) | (474) | 142,390 | |
Net income (loss) | 5,334 | 5,334 | |||||
Change in accumulated other comprehensive income | (226) | (226) | |||||
Purchase of treasury stock (in shares) | (215,000) | ||||||
Purchase of treasury stock | [1] | (2,405) | (2,405) | ||||
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan (in shares) | 119,000 | ||||||
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan | [1] | 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) | 362,000 | ||||||
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors | [1] | 9 | 3,522 | (3,000) | 531 | ||
Equity-based compensation | 1,461 | 1,461 | |||||
Balance (in shares) at Sep. 30, 2016 | 22,009,000 | ||||||
Balance at Sep. 30, 2016 | $ 22 | 364,737 | (121,476) | (94,600) | (700) | 147,983 | |
Balance (in shares) at Dec. 31, 2016 | 21,932,000 | ||||||
Balance at Dec. 31, 2016 | $ 22 | 366,121 | (122,632) | (96,112) | (1,852) | 145,547 | |
Net income (loss) | (2,874) | (2,874) | |||||
Change in accumulated other comprehensive income | 394 | $ 394 | |||||
Purchase of treasury stock (in shares) | (379,000) | (378,895) | |||||
Purchase of treasury stock | [1] | (4,365) | $ (4,365) | ||||
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan (in shares) | 227,000 | ||||||
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan | [1] | 2,225 | (330) | 1,895 | |||
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors (in shares) | 496,000 | ||||||
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors | [1] | 4,863 | (4,235) | 628 | |||
Equity-based compensation | 4,526 | 4,526 | |||||
Balance (in shares) at Sep. 30, 2017 | 22,276,000 | ||||||
Balance at Sep. 30, 2017 | $ 22 | 370,647 | (119,909) | (103,551) | (1,458) | 145,751 | |
Balance (in shares) at Jun. 30, 2017 | 22,151,000 | ||||||
Balance at Jun. 30, 2017 | $ 22 | 369,209 | (120,855) | (102,867) | (1,391) | 144,118 | |
Net income (loss) | 578 | 578 | |||||
Change in accumulated other comprehensive income | (67) | (67) | |||||
Purchase of treasury stock (in shares) | (131,000) | ||||||
Purchase of treasury stock | [1] | (1,563) | (1,563) | ||||
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] | 1,117 | (163) | 954 | |||
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors (in shares) | 142,000 | ||||||
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors | [1] | 1,392 | (1,099) | 293 | |||
Equity-based compensation | 1,438 | 1,438 | |||||
Balance (in shares) at Sep. 30, 2017 | 22,276,000 | ||||||
Balance at Sep. 30, 2017 | $ 22 | $ 370,647 | $ (119,909) | $ (103,551) | $ (1,458) | $ 145,751 | |
[1] | Represents an amount lower than $1. |
Note A - Basis of Presentation
Note A - Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 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 X. not nine September 30, 2017 not may December 31, 2017. 10 December 31, 2016. The significant accounting policies applied in the annual consolidated financial sta tements 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. . There was no In May 2014, 2014 09, 606 2014 09” August 2015, No. 2015 14, 606 2014 09 one The new revenue recognition standard will be effective in the first 2018, first 2017. January 1, 2018. two not In May 2017, 2017 09, 718 ("ASU 2017 09" 2017 09 2017 09 not not 2017 09. In February 2016, 2016 02 842 to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not twelve twelve 842 840. January 1, 2019, January 1, 2019 |
Note B - Inventories
Note B - Inventories | 9 Months Ended |
Sep. 30, 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: September 30, 2017 December 31, 2016 (Unaudited) (Audited) Work -in-process $ 5,492 $ 5,784 Finished goods 5,201 3,964 $ 10,693 $ 9,748 For the nine September 30, 2017, $20 $101 nine September 30, 2016. |
Note C - Net Earnings (Loss) Pe
Note C - Net Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 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 September 30, Nine months ended September 30, 2017 2016 2017 2016 Unaudited Net income (loss) $ 578 $ 5,334 $ (2,874 ) $ 3,501 Earnings (loss) per share: Basic $ 0.03 $ 0.24 $ (0.13 ) $ 0.16 Diluted $ 0.02 $ 0.23 $ (0.13 ) $ 0.15 Weighted average number of shares of common stock outstanding during the period used to compute basic net earnings (loss) per share (in thousands) 22,276 21,943 22,186 21,798 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) 967 1,242 - 1,084 Weighted average number of shares of com mon stock used to compute diluted net earnings (loss) per share (in thousands) 23,243 23,185 22,186 22,882 |
Note D - Marketable Securities
Note D - Marketable Securities and Short-term Deposits | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE D — MARKETABLE SECURITIES and SHORT –TERM 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. T he following is a summary of available-for-sale securities at September 30, 2017 December 31, 2016: Amortized cost Unrealized losses, net Fair value September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 (Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited) Short-term deposits $ 10,505 $ 7,610 $ - $ - $ 10,505 $ 7,610 U.S. GSE securities 22,303 24,351 (208 ) (289 ) 22,095 24,062 Corporate obligations 74,897 76,264 (535 ) (813 ) 74,362 75,451 $ 107,705 $ 108,225 $ (743 ) $ (1,102 ) $ 106,962 $ 107,123 The amortized cost of marketable debt securities and short-term deposits at September 30, 2017, : Unrealized gains (losses) (unaudited) Amortized cost Gains Losses Fair value Due in one year or less $ 28,113 $ 4 $ (10 ) $ 28,107 Due after one year to five years 79,592 39 (776 ) 78,855 $ 107,705 $ 43 $ (786 ) $ 106,962 The actual maturity dates may may Management believes that as of September 30, 2017, no The unrealized losses related to corporate obligations were primarily due to changes in interest rates. Because the Company does not not not may not September 30, 2017. The total fair value of marketable securities with outstanding unrealized losses as of September 30, 2017 $80,849, $786. $786 September 30, 2017, $563 12 $223 12 Proceeds from maturity of available-for-sale marketable securities during the nine September 30, 2017 2016 $18,474 $34,265, nine September 30, 2017 2016 $12,988 $13,072, nine September 30, 2017 $59 nine September 30, 2016 $17. 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 |
Note E - Taxes on Income
Note E - Taxes on Income | 9 Months Ended |
Sep. 30, 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 $981 $1,023 September 30, 2017 December 31, 2016, September 30, 2017 December 31, 2016, $58 $46, not not may |
Note F - Significant Customers
Note F - Significant Customers | 9 Months Ended |
Sep. 30, 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 nine September 30, 2017 2016, Three months ended September 30, Nine months ended September 30, Unaudited Major customers/ distributors 2017 2016 2017 2016 VTech Holdings Ltd. 24 % 26 % 28 % 29 % Tomen Electronics Corporation ¹ ² 15 % 14 % 12 % 12 % Ascend Technology Inc. ¹ ³ 24 % 16 % 22 % 16 % Samsung Electronics Ltd. 1 % 12 % 1 % 13 % Guo Wei Electronics Ltd. 6 % 10 % 7 % 8 % ¹ Distributor. ² 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 13% 12% three September 30, 2017 2016, 10% nine September 30, 2017 2016. ³ Ascend Technology sells the Company ’s products to a limited number of customers; however none 10% three nine September 30, 2017 2016 |
Note G - Derivative Instruments
Note G - Derivative Instruments | 9 Months Ended |
Sep. 30, 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, September 30, 2017, no 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 nine September 30, 2017 $135, $13 $24, The fair value of the outstanding derivative instruments at September 30, 2017 December 31, 2016 Fair value of derivative instruments Derivative Assets (Liabilities) Balance Sheet Location September 30, 2017 December 31, 2016 Unaudited D Foreign exchange put and -call options Other accounts receivable and prepaid expenses - $ 9 The effect of derivative instruments in cash flow hedging transactions on income and other comprehensive income (“OCI”) for the three nine September 30, 2017 2016 Gains (Losses) on Derivatives Recognized in OCI for the three months ended September 30, for the nine months ended September 30, Unaudited 2017 2016 2017 2016 Foreign exchange forward and option contracts $ (29 ) $ 65 $ 163 $ 123 Gains (Losses) Reclassified from OCI into i ncome for the three months ended September 30 for the nine months ended September 30, Unaudited Location 2017 2016 2017 2016 Foreign exchange forward and option contracts Operating expenses $ 19 $ 15 $ 172 $ (1 ) |
Note H - Contingencies
Note H - Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE h —CONTINGENCIES From time to time, the Company may may may third no |
Note I - Equity-based Compensat
Note I - Equity-based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE i —EQUITY-BASED COMPENSATION Grants for the three September 30, 2017 September 30, 2016: No three September 30, 201 7 September 30, 2016. No during the three September 30, 2017. The weighted-average estimated fair value of RSUs granted during the three September 30, 2016 $9.32 5.04% three September 30, 2016 Employee stock benefit plans As of September 30, 2017, two may three no may one September 30, 2017, 715,000 699,000 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 average exercise price Weighted average remaining contractual term (years) (3) Aggregate value (*) in thousands in thousands Outstanding at June 30, 2017 2,400 $ 5.03 RSUs granted - - SARs granted - - Options / SARs / RSUs cancelled/forfeited/expired (10 ) $ 3.97 Options / SARs exercised and RSUs vested (178 ) $ 4.16 Outstanding at September 30, 2017 (1) 2,212 $ 5.10 4.19 $ 17,496 Exercisable at September 30, 2017 (2) 947 $ 8.26 3.44 $ 4,516 (*) Calculation of aggregate intrinsic value is based on the share price of the Company ’s common stock on September 30, 2017 ( $13.00 ( 1 "SAR ") grants, the outstanding amount above can be exercised for a maximum of 2,064,000 September 30, 2017. January 1, 2010 January 1, 2012 66.67% January 1, 2012 50% ( 2 892,000 September 30, 2017. ( 3 not Additional information about stock options, SARs and RSUs outstanding and exercisable at September 30, 2017 $13.00 September 30, 2017) 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 Less than $ 13.00 937 $ 8.18 1,217 $ 2.33 2,154 $ 4.88 Above $ 13.00 10 $ 15.79 48 $ 13.05 58 $ 13.52 Total 947 $ 8.26 1,265 $ 2.74 2,212 $ 5.10 The Company ’s aggregate equity-based compensation expense for the three September 30, 2017 2016 $1,438 $1,461, The Company ’s aggregate equity-based compensation expense for the nine September 30, 2017 2016 $4,526 $3,705, As of September 30, 2017, $5,073 2017 2021. |
Note J - Pension Liability
Note J - Pension Liability | 9 Months Ended |
Sep. 30, 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 ’ Disclosures about Pensions and Other Post-Retirement Benefits." The components of net pension and post-retirement periodic benefit cost (income) for the six September 30, 2017 2016 : Nine months ended September 30, 2017 2016 Components of net periodic benefit cost: Service cost and amortization of loss $ 19 $ 14 Interest cost 10 13 Expected return on plan assets - (2 ) Net periodic benefit cost $ 29 $ 25 The net pension liability as of September 30, 2017 $897. |
Note K - Fair Value Measurement
Note K - Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
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 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 September 30, 2017: Balance as of Fair value measurements September 30, 2017 Level 1 Level 2 Level 3 Description Assets : Cash equivalents : Money market mutual funds $ 2,548 $ 2,548 - - Short-term marketable securities and cash deposits: U.S. GSE securities $ 789 - $ 789 Corporate debt securities $ 16,813 - $ 16,813 - Long-term marketable securities: U.S. GSE securities $ 21,306 - $ 21,306 - Corporate debt securities $ 57,549 - $ 57,549 - 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 September 30, 2017 |
Note L - Stockholders' Equity
Note L - Stockholders' Equity | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE l —STOCKHOLDERS’ EQUITY During the first nine 2017, 378,895 $11.52 $4,365. September 30, 2017, 774,658 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 nine 2017, 724,000 1993 |
Note M - Segment Information
Note M - Segment Information | 9 Months Ended |
Sep. 30, 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 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, revenues from cordless telephony products exceeded 10% 55% 56% first nine 2017 2016, 53% 57% third 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 27% 20% first nine 2017 2016, 30% 20% third 2017 2016, No 10% first nine 2017 2016. SmartVoice (formerly called “Mobile”) - Products for the SmartVoice market that provides voice enhancement, always-on and far-end noise elimination targeted for mobile phone, mobile headsets and other devices that incorporate the Company’s noise suppression and voice quality enhancement HDClear technology. Revenues derived from products in the SmartVoice segment represented 3% 13% first nine 2017 2016, 4% 12% third 2017 2016, No 10% first nine 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 Selected operating results information for each business segment was as follows for the three September 30, 2017 2016 Three months ended September 30, Revenues Income (loss) from operations 2017 2016 2017 2016 Home $ 22,787 $ 26,466 $ 4,565 $ 5,677 Office $ 10,136 $ 7,692 $ 3,117 $ (266 ) SmartVoice $ 1,354 $ 4,610 $ (5,157 ) $ (794 ) Total $ 34,277 $ 38,768 $ 2,525 $ 4,617 Selected operating results information for each business segment was as follows for the nine September 30, 2017 2016 Nine months ended September 30, Revenues Income (loss) from operations 2017 2016 2017 2016 Home $ 65,531 $ 69,332 $ 12,474 $ 11,998 Office $ 25,355 $ 20,162 $ 6,162 $ (2,765 ) SmartVoice $ 2,625 $ 13,097 $ (15,639 ) $ (3,019 ) Total $ 93,511 $ 102,591 $ 2,997 $ 6,214 The reconciliation of segment operating results information to the Company ’s consolidated financial information was as follows for the three nine September 30, 2017: Three months Nine months Income from operations $ 2,525 $ 2,997 Unallocated corporate, general and administrative expenses (412 ) (1,267 ) Equity-based compensation expenses (1,438 ) (4,526 ) Intangible assets amortization expenses (425 ) (1,275 ) Financial income, net 382 1,216 Total consolidated income before taxes $ 632 $ (2,855 ) The reconciliation of segment operating results information to the Company’s consolidated financial information was as follows for the three nine 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 |
Note N - Accumulated Other Comp
Note N - Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [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 September 30, 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 gains (losses) on foreign currency translation Total Beginning balance $ (683 ) $ 48 $ (445 ) $ (311 ) $ (1,391 ) Other comprehensive income before reclassifications (61 ) (29 ) - 35 (55 ) Losses (gains) reclassified from accumulated other comprehensive income (loss) 1 (19 ) 6 - (12 ) Net current period other comprehensive income (loss) (60 ) (48 ) 6 35 (67 ) Ending balance $ (743 ) $ - $ (439 ) $ (276 ) $ (1,458 ) The following table provides details about reclassifications out of accumulated other comprehensive income for the three September 30, 2017: 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 $ 1 Financial income, net - Provision for income taxes 1 Total, net of income taxes Gains on cash flow hedges (15 ) Research and development (1 ) Sales and marketing (3 ) General and administrative (19 ) Total, before income taxes - Provision for income taxes (19 ) Total, net of income taxes Losses on components of defined benefit plans 3 Research and development 3 Sales and marketing 6 Total, before income taxes - Provision for income taxes 6 Total, net of income taxes Total reclassifications for the period $ (12 ) Total, net of income taxes The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the nine September 30, 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 gains (losses) on foreign currency translation Total Beginning balance $ (1,101 ) $ 9 $ (455 ) $ (305 ) $ (1,852 ) Other comprehensive income (loss) before reclassifications 299 163 - 29 491 Losses reclassified from accumulated other comprehensive income (loss) 59 (172 ) 16 - (97 ) Net current period other comprehensive income 358 (9 ) 16 29 394 Ending balance $ (743 ) $ - $ (439 ) (276 ) $ (1,458 ) The following table provides details about reclassifications out of accumulated other comprehensive income for the nine September 30, 2017: 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 $ 59 Financial income, net - Provision for income taxes 59 Total, net of income taxes Gains on cash flow hedges (135 ) Research and development (13 ) Sales and marketing (24 ) General and administrative (172 ) Total, before income taxes - Provision for income taxes (172 ) Total, net of income taxes Losses on components of defined benefit plans 10 Research and development 6 Sales and marketing 16 Total, before income taxes - Provision for income taxes 16 Total, net of income taxes Total reclassifications for the period $ (97 ) Total, net of income taxes |
Note O - Government Grants
Note O - Government Grants | 9 Months Ended |
Sep. 30, 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 $ 0.2 $0.5 three September 30, 2017 2016, The Company recorded grants in the amount of $ 1.2 $2.2 nine September 30, 2017 2016, The Company ’s Israeli subsidiary is obligated to pay royalties amounting to 5% may not may six third |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 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. . There was no In May 2014, 2014 09, 606 2014 09” August 2015, No. 2015 14, 606 2014 09 one The new revenue recognition standard will be effective in the first 2018, first 2017. January 1, 2018. two not In May 2017, 2017 09, 718 ("ASU 2017 09" 2017 09 2017 09 not not 2017 09. In February 2016, 2016 02 842 to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not twelve twelve 842 840. January 1, 2019, January 1, 2019 |
Note B - Inventories (Tables)
Note B - Inventories (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | September 30, 2017 December 31, 2016 (Unaudited) (Audited) Work -in-process $ 5,492 $ 5,784 Finished goods 5,201 3,964 $ 10,693 $ 9,748 |
Note C - Net Earnings (Loss) 26
Note C - Net Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Unaudited Net income (loss) $ 578 $ 5,334 $ (2,874 ) $ 3,501 Earnings (loss) per share: Basic $ 0.03 $ 0.24 $ (0.13 ) $ 0.16 Diluted $ 0.02 $ 0.23 $ (0.13 ) $ 0.15 Weighted average number of shares of common stock outstanding during the period used to compute basic net earnings (loss) per share (in thousands) 22,276 21,943 22,186 21,798 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) 967 1,242 - 1,084 Weighted average number of shares of com mon stock used to compute diluted net earnings (loss) per share (in thousands) 23,243 23,185 22,186 22,882 |
Note D - Marketable Securitie27
Note D - Marketable Securities and Short-term Deposits (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Available-for-sale Securities [Table Text Block] | Amortized cost Unrealized losses, net Fair value September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 (Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited) Short-term deposits $ 10,505 $ 7,610 $ - $ - $ 10,505 $ 7,610 U.S. GSE securities 22,303 24,351 (208 ) (289 ) 22,095 24,062 Corporate obligations 74,897 76,264 (535 ) (813 ) 74,362 75,451 $ 107,705 $ 108,225 $ (743 ) $ (1,102 ) $ 106,962 $ 107,123 |
Investments Classified by Contractual Maturity Date [Table Text Block] | Unrealized gains (losses) (unaudited) Amortized cost Gains Losses Fair value Due in one year or less $ 28,113 $ 4 $ (10 ) $ 28,107 Due after one year to five years 79,592 39 (776 ) 78,855 $ 107,705 $ 43 $ (786 ) $ 106,962 |
Note F - Significant Customers
Note F - Significant Customers (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Customer Concentration Risk [Member] | |
Notes Tables | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Three months ended September 30, Nine months ended September 30, Unaudited Major customers/ distributors 2017 2016 2017 2016 VTech Holdings Ltd. 24 % 26 % 28 % 29 % Tomen Electronics Corporation ¹ ² 15 % 14 % 12 % 12 % Ascend Technology Inc. ¹ ³ 24 % 16 % 22 % 16 % Samsung Electronics Ltd. 1 % 12 % 1 % 13 % Guo Wei Electronics Ltd. 6 % 10 % 7 % 8 % |
Note G - Derivative Instrumen29
Note G - Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | Fair value of derivative instruments Derivative Assets (Liabilities) Balance Sheet Location September 30, 2017 December 31, 2016 Unaudited D Foreign exchange put and -call options Other accounts receivable and prepaid expenses - $ 9 |
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, Unaudited 2017 2016 2017 2016 Foreign exchange forward and option contracts $ (29 ) $ 65 $ 163 $ 123 |
Derivative Instruments, Gain (Loss) [Table Text Block] | Gains (Losses) Reclassified from OCI into i ncome for the three months ended September 30 for the nine months ended September 30, Unaudited Location 2017 2016 2017 2016 Foreign exchange forward and option contracts Operating expenses $ 19 $ 15 $ 172 $ (1 ) |
Note I - Equity-based Compens30
Note I - Equity-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
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 30, 2017 2,400 $ 5.03 RSUs granted - - SARs granted - - Options / SARs / RSUs cancelled/forfeited/expired (10 ) $ 3.97 Options / SARs exercised and RSUs vested (178 ) $ 4.16 Outstanding at September 30, 2017 (1) 2,212 $ 5.10 4.19 $ 17,496 Exercisable at September 30, 2017 (2) 947 $ 8.26 3.44 $ 4,516 |
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 Less than $ 13.00 937 $ 8.18 1,217 $ 2.33 2,154 $ 4.88 Above $ 13.00 10 $ 15.79 48 $ 13.05 58 $ 13.52 Total 947 $ 8.26 1,265 $ 2.74 2,212 $ 5.10 |
Note J - Pension Liability (Tab
Note J - Pension Liability (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Net Benefit Costs [Table Text Block] | Nine months ended September 30, 2017 2016 Components of net periodic benefit cost: Service cost and amortization of loss $ 19 $ 14 Interest cost 10 13 Expected return on plan assets - (2 ) Net periodic benefit cost $ 29 $ 25 |
Note K - Fair Value Measureme32
Note K - Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Balance as of Fair value measurements September 30, 2017 Level 1 Level 2 Level 3 Description Assets : Cash equivalents : Money market mutual funds $ 2,548 $ 2,548 - - Short-term marketable securities and cash deposits: U.S. GSE securities $ 789 - $ 789 Corporate debt securities $ 16,813 - $ 16,813 - Long-term marketable securities: U.S. GSE securities $ 21,306 - $ 21,306 - Corporate debt securities $ 57,549 - $ 57,549 - 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) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three months ended September 30, Revenues Income (loss) from operations 2017 2016 2017 2016 Home $ 22,787 $ 26,466 $ 4,565 $ 5,677 Office $ 10,136 $ 7,692 $ 3,117 $ (266 ) SmartVoice $ 1,354 $ 4,610 $ (5,157 ) $ (794 ) Total $ 34,277 $ 38,768 $ 2,525 $ 4,617 Nine months ended September 30, Revenues Income (loss) from operations 2017 2016 2017 2016 Home $ 65,531 $ 69,332 $ 12,474 $ 11,998 Office $ 25,355 $ 20,162 $ 6,162 $ (2,765 ) SmartVoice $ 2,625 $ 13,097 $ (15,639 ) $ (3,019 ) Total $ 93,511 $ 102,591 $ 2,997 $ 6,214 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Three months Nine months Income from operations $ 2,525 $ 2,997 Unallocated corporate, general and administrative expenses (412 ) (1,267 ) Equity-based compensation expenses (1,438 ) (4,526 ) Intangible assets amortization expenses (425 ) (1,275 ) Financial income, net 382 1,216 Total consolidated income before taxes $ 632 $ (2,855 ) 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 |
Note N - Accumulated Other Co34
Note N - Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 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 gains (losses) on foreign currency translation Total Beginning balance $ (683 ) $ 48 $ (445 ) $ (311 ) $ (1,391 ) Other comprehensive income before reclassifications (61 ) (29 ) - 35 (55 ) Losses (gains) reclassified from accumulated other comprehensive income (loss) 1 (19 ) 6 - (12 ) Net current period other comprehensive income (loss) (60 ) (48 ) 6 35 (67 ) Ending balance $ (743 ) $ - $ (439 ) $ (276 ) $ (1,458 ) 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 $ (1,101 ) $ 9 $ (455 ) $ (305 ) $ (1,852 ) Other comprehensive income (loss) before reclassifications 299 163 - 29 491 Losses reclassified from accumulated other comprehensive income (loss) 59 (172 ) 16 - (97 ) Net current period other comprehensive income 358 (9 ) 16 29 394 Ending balance $ (743 ) $ - $ (439 ) (276 ) $ (1,458 ) |
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 Losses on available-for-sale marketable securities $ 1 Financial income, net - Provision for income taxes 1 Total, net of income taxes Gains on cash flow hedges (15 ) Research and development (1 ) Sales and marketing (3 ) General and administrative (19 ) Total, before income taxes - Provision for income taxes (19 ) Total, net of income taxes Losses on components of defined benefit plans 3 Research and development 3 Sales and marketing 6 Total, before income taxes - Provision for income taxes 6 Total, net of income taxes Total reclassifications for the period $ (12 ) 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 $ 59 Financial income, net - Provision for income taxes 59 Total, net of income taxes Gains on cash flow hedges (135 ) Research and development (13 ) Sales and marketing (24 ) General and administrative (172 ) Total, before income taxes - Provision for income taxes (172 ) Total, net of income taxes Losses on components of defined benefit plans 10 Research and development 6 Sales and marketing 16 Total, before income taxes - Provision for income taxes 16 Total, net of income taxes Total reclassifications for the period $ (97 ) Total, net of income taxes |
Note B - Inventories (Details T
Note B - Inventories (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Inventory Write-down | $ 20 | $ 101 |
Note B - Inventories - Componen
Note B - Inventories - Components of Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Work-in-process | $ 5,492 | $ 5,784 |
Finished goods | 5,201 | 3,964 |
$ 10,693 | $ 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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net income (loss) | $ 578 | $ 5,334 | $ (2,874) | $ 3,501 |
Net earnings (loss) per share: | ||||
Basic (in dollars per share) | $ 0.03 | $ 0.24 | $ (0.13) | $ 0.16 |
Diluted (in dollars per share) | $ 0.02 | $ 0.23 | $ (0.13) | $ 0.15 |
Weighted average number of shares of common stock outstanding during the period used to compute basic net earnings (loss) per share (in thousands) (in shares) | 22,276 | 21,943 | 22,186 | 21,798 |
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) | 967 | 1,242 | 1,084 | |
Weighted average number of shares of common stock used to compute diluted net earnings (loss) per share (in thousands) (in shares) | 23,243 | 23,185 | 22,186 | 22,882 |
Note D - Marketable Securitie38
Note D - Marketable Securities and Short-term Deposits (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $ 80,849 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 786 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 563 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 223 | |
Proceeds from Maturities, Prepayments and Calls of Available-for-sale Securities | 18,474 | $ 34,265 |
Proceeds from Sale of Available-for-sale Securities | 12,988 | 13,072 |
Gain (Loss) on Sale of Securities, Net | 59 | $ 17 |
Corporate Debt Securities [Member] | ||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities | $ 0 |
Note D - Marketable Securitie39
Note D - Marketable Securities and Short-term Deposits - Marketable Securities and Time Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Marketable securities and time deposits, amortized cost | $ 107,705 | $ 108,225 |
Marketable securities and time deposits, unrealized gains (losses), net | (743) | (1,102) |
Marketable securities and time deposits, estimated fair value | 106,962 | 107,123 |
Short-term Deposits [Member] | ||
Marketable securities and time deposits, amortized cost | 10,505 | 7,610 |
Marketable securities and time deposits, unrealized gains (losses), net | ||
Marketable securities and time deposits, estimated fair value | 10,505 | 7,610 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Marketable securities and time deposits, amortized cost | 22,303 | 24,351 |
Marketable securities and time deposits, unrealized gains (losses), net | (208) | (289) |
Marketable securities and time deposits, estimated fair value | 22,095 | 24,062 |
Corporate Debt Securities [Member] | ||
Marketable securities and time deposits, amortized cost | 74,897 | 76,264 |
Marketable securities and time deposits, unrealized gains (losses), net | (535) | (813) |
Marketable securities and time deposits, estimated fair value | $ 74,362 | $ 75,451 |
Note D - Marketable Securitie40
Note D - Marketable Securities and Short-term Deposits - Marketable Debt Securities by Contractual Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Marketable debt securities, amortized cost | $ 107,705 | $ 108,225 |
Marketable debt securities, estimated fair value | 106,962 | $ 107,123 |
Debt Securities [Member] | ||
Marketable debt securities, amortized cost | 107,705 | |
Marketable debt securities, unrealized gains | 43 | |
Marketable debt securities, unrealized losses | (786) | |
Marketable debt securities, estimated fair value | 106,962 | |
Debt Securities [Member] | Due in One Year or Less [Member] | ||
Marketable debt securities, amortized cost | 28,113 | |
Marketable debt securities, unrealized gains | 4 | |
Marketable debt securities, unrealized losses | (10) | |
Marketable debt securities, estimated fair value | 28,107 | |
Debt Securities [Member] | Due after One Year to Five Years [Member] | ||
Marketable debt securities, amortized cost | 79,592 | |
Marketable debt securities, unrealized gains | 39 | |
Marketable debt securities, unrealized losses | (776) | |
Marketable debt securities, estimated fair value | $ 78,855 |
Note E - Taxes on Income (Detai
Note E - Taxes on Income (Details Textual) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Unrecognized Tax Benefits | $ 981 | $ 1,023 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 58 | $ 46 |
Note F - Significant Customer42
Note F - Significant Customers (Details Textual) - Customer Concentration Risk [Member] - Sales Revenue, Net [Member] | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Panasonic Communications Corporation [Member] | ||||
Concentration Risk, Percentage | 13.00% | 12.00% | 10.00% | 10.00% |
Number Of Major Customers Through A Distributor | 1 | 1 | 1 | 1 |
Customers to Which the Company's Products Are Sold Through Ascend Technology [Member] | ||||
Number of Major Customers | 0 | 0 | 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 | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
VTech Holdings Ltd [Member] | |||||
Concentration risk, percentage | 24.00% | 26.00% | 28.00% | 29.00% | |
Tomen Electronics Corporation [Member] | |||||
Concentration risk, percentage | [1],[2] | 15.00% | 14.00% | 12.00% | 12.00% |
Ascend Technology Inc [Member] | |||||
Concentration risk, percentage | [1],[3] | 24.00% | 16.00% | 22.00% | 16.00% |
Samsung Mobile [Member] | |||||
Concentration risk, percentage | 1.00% | 12.00% | 1.00% | 13.00% | |
Guo Wei Electronics [Member] | |||||
Concentration risk, percentage | 6.00% | 10.00% | 7.00% | 8.00% | |
[1] | Distributor | ||||
[2] | 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 13% and 12% of the Company's total revenues for the three months ended September 30, 2017 and 2016, respectively, and 10% of the Company's total revenues for the nine months ended September 30, 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 and six months ended September 30, 2017 and 2016 . |
Note G - Derivative Instrumen44
Note G - Derivative Instruments (Details Textual) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Research and Development Expense [Member] | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 135 |
Selling and Marketing Expense [Member] | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 13 |
General and Administrative Expense [Member] | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 24 |
Foreign Exchange Option [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) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Foreign Exchange Forward Contracts and Put Options [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
D Foreign exchange put and -call options | $ 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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Foreign Exchange Forward Contracts and Put Options [Member] | ||||
Foreign exchange forward and option contracts | $ (29) | $ 65 | $ 163 | $ 123 |
Note G - Derivative Instrumen47
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, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Foreign Exchange Forward Contracts and Put Options [Member] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 19 | $ 15 | $ 172 | $ (1) |
Note I - Equity-based Compens48
Note I - Equity-based Compensation (Details Textual) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 24 Months Ended | 69 Months Ended | ||
Sep. 30, 2017USD ($)$ / sharesshares | Sep. 30, 2016USD ($)$ / sharesshares | Sep. 30, 2017USD ($)$ / sharesshares | Sep. 30, 2016USD ($) | Dec. 31, 2011 | Sep. 30, 2017USD ($)$ / 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 | 2 | |||
Share-based Compensation Arrangement by Share-based Payment Award Number of Expired Equity Incentive Plans | 3 | 3 | 3 | |||
Share-based Compensation Arrangement by Share-based Payment Award Number of Employee Purchase Plans | 1 | 1 | 1 | |||
Allocated Share-based Compensation Expense | $ | $ 1,438 | $ 1,461 | $ 4,526 | $ 3,705 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 5,073 | $ 5,073 | $ 5,073 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | ||||
Common Stock [Member] | ||||||
Share Price | $ / shares | $ 13 | $ 13 | $ 13 | |||
Employee Stock Purchase Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 715,000 | 715,000 | 715,000 | |||
Equity Incentive Plans [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 699,000 | 699,000 | 699,000 | |||
Stock Appreciation Rights (SARs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | 0 | ||||
Stock Appreciation Rights (SARs) [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares to be Issued Upon Exercise of Outstanding Awards | 2,064,000 | 2,064,000 | 2,064,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant as Percentage of Company Outstanding Common Stock | 66.67% | 50.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options and Stock Appreciation Rights, Exercisable, Number | 892,000 | 892,000 | 892,000 | |||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | |||||
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 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Weighted Average Pre Vest Cancel Rate | 5.04% |
Note I - Equity-based Compens49
Note I - Equity-based Compensation - Stock Options, SARs and RSUs Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | ||
Outstanding (in shares) | 2,400,000 | ||
Outstanding, weighted average exercise price (in dollars per share) | $ 5.03 | ||
Options / SARs / RSUs cancelled/forfeited/expired (in shares) | (10,000) | ||
Options / SARs / RSUs cancelled/forfeited/expired, weighted average exercise price (in dollars per share) | $ 3.97 | ||
Options / SARs exercised and RSUs vested (in shares) | (178,000) | ||
Options / SARs exercised and RSUs vested, weighted average exercise price (in dollars per share) | $ 4.16 | ||
Outstanding (in shares) | [1] | 2,212,000 | |
Outstanding, weighted average exercise price (in dollars per share) | [1] | $ 5.10 | |
Outstanding, weighted average remaining contractual term (Year) | [1],[2] | 4 years 69 days | |
Outstanding, aggregate value | [1],[3] | $ 17,496 | |
Exercisable (in shares) | [4] | 947,000 | |
Exercisable, weighted average exercise price (in dollars per share) | [4] | $ 8.26 | |
Exercisable, weighted average remaining contractual term (Year) | [2],[4] | 3 years 160 days | |
Exercisable, aggregate value | [3],[4] | $ 4,516 | |
Restricted Stock Units (RSUs) [Member] | |||
Non-option instruments granted (in shares) | 0 | ||
Stock Appreciation Rights (SARs) [Member] | |||
Non-option instruments granted (in shares) | 0 | 0 | |
SARs granted, weighted average exercise price (in dollars per share) | |||
[1] | Due to the ceiling imposed on the stock appreciation right ("SAR") grants, the outstanding amount above can be exercised for a maximum of 2,064,000 shares of the Company's common stock as of September 30, 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 September 30, 2017 ($13.00 per share). | ||
[4] | Due to the ceiling imposed on the SAR grants, the exercisable amount above can be exercised for a maximum of 892,000 shares of the Company's common stock as of September 30, 2017. |
Note I - Equity-based Compens50
Note I - Equity-based Compensation - Company's Stock Options and SAR Units Outstanding and Exercisable (Details) shares in Thousands | Sep. 30, 2017$ / sharesshares |
Number of Options/ SARs / RSUs - Exercisable (in shares) | shares | 947 |
Weighted Average Exercise Price - Exercisable (in dollars per share) | $ / shares | $ 8.26 |
Number of Options/ SARs / RSUs - Unexercisable (in shares) | shares | 1,265 |
Weighted Average Exercise Price - Unexercisable (in dollars per share) | $ / shares | $ 2.74 |
Number of Options/ SARs / RSUs (in shares) | shares | 2,212 |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 5.10 |
Range 1 [Member] | |
Number of Options/ SARs / RSUs - Exercisable (in shares) | shares | 937 |
Weighted Average Exercise Price - Exercisable (in dollars per share) | $ / shares | $ 8.18 |
Number of Options/ SARs / RSUs - Unexercisable (in shares) | shares | 1,217 |
Weighted Average Exercise Price - Unexercisable (in dollars per share) | $ / shares | $ 2.33 |
Number of Options/ SARs / RSUs (in shares) | shares | 2,154 |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 4.88 |
Range 2 [Member] | |
Number of Options/ SARs / RSUs - Exercisable (in shares) | shares | 10 |
Weighted Average Exercise Price - Exercisable (in dollars per share) | $ / shares | $ 15.79 |
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 | 58 |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 13.52 |
Note J - Pension Liability (Det
Note J - Pension Liability (Details Textual) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Liability, Defined Benefit Pension Plan, Noncurrent | $ 897 | $ 803 |
Note J - Pension Liability - Co
Note J - Pension Liability - Components of Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Components of net periodic benefit cost: | ||
Service cost and amortization of loss | $ 19 | $ 14 |
Interest cost | 10 | 13 |
Expected return on plan assets | (2) | |
Net periodic benefit cost | $ 29 | $ 25 |
Note K - Fair Value Measureme53
Note K - Fair Value Measurements - Fair Value Measurements of Assets and Liabilities on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Money Market Funds [Member] | ||
Money market mutual funds | $ 2,548 | $ 1,370 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Money market mutual funds | 2,548 | 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 | 789 | 376 |
Long-term securities | 21,306 | 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 | 789 | 376 |
Long-term securities | 21,306 | 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 | 16,813 | 21,045 |
Long-term securities | 57,549 | 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 | 16,813 | 21,045 |
Long-term securities | 57,549 | 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 | 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 | 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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Treasury Stock, Shares, Acquired | 378,895 | |||
Treasury Stock Acquired, Average Cost Per Share | $ 11.52 | |||
Treasury Stock, Value, Acquired, Cost Method | $ 1,563 | $ 2,405 | $ 4,365 | $ 6,081 |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 774,658 | 774,658 | ||
Stock Issued During Period, Shares, Employee Stock Purchase Plans and Exercise of Share-based Awards | 724,000 |
Note M - Segment Information (D
Note M - Segment Information (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Number of Reportable Segments | 3 | |||
Product Concentration Risk [Member] | Sales Revenue, Segment [Member] | Home [Member] | Telephony [Member] | ||||
Concentration Risk, Percentage | 53.00% | 57.00% | 55.00% | 56.00% |
Product Concentration Risk [Member] | Sales Revenue, Segment [Member] | Office [Member] | VoIP [Member] | ||||
Concentration Risk, Percentage | 30.00% | 20.00% | 27.00% | 20.00% |
Product Concentration Risk [Member] | Sales Revenue, Segment [Member] | SmartVoice [Member] | ||||
Concentration Risk, Percentage | 4.00% | 12.00% | 3.00% | 13.00% |
Note M - Segment Information -
Note M - Segment Information - Selected Operating Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues | $ 34,277 | $ 38,768 | $ 93,511 | $ 102,591 |
Income from operations | 2,525 | 4,617 | 2,997 | 6,214 |
Home [Member] | ||||
Revenues | 22,787 | 26,466 | 65,531 | 69,332 |
Income from operations | 4,565 | 5,677 | 12,474 | 11,998 |
Office [Member] | ||||
Revenues | 10,136 | 7,692 | 25,355 | 20,162 |
Income from operations | 3,117 | (266) | 6,162 | (2,765) |
SmartVoice [Member] | ||||
Revenues | 1,354 | 4,610 | 2,625 | 13,097 |
Income from operations | $ (5,157) | $ (794) | $ (15,639) | $ (3,019) |
Note M - Segment Information 57
Note M - Segment Information - Reconciliation of Segment Operating Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income from operations | $ 2,525 | $ 4,617 | $ 2,997 | $ 6,214 |
Unallocated corporate, general and administrative expenses | (412) | 9 | (1,267) | (941) |
Equity-based compensation expenses | (1,438) | (1,461) | (4,526) | (3,705) |
Intangible assets amortization expenses | (425) | (390) | (1,275) | (1,032) |
Financial income, net | 382 | 344 | 1,216 | 910 |
Total consolidated income before taxes | 632 | 5,668 | (2,855) | 3,995 |
Other income | $ 2,549 | $ 2,549 |
Note N - Accumulated Other Co58
Note N - Accumulated Other Comprehensive Income - Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Balance | $ 144,118 | $ 142,390 | $ 145,547 | $ 143,318 |
Net current period other comprehensive income (loss) | (67) | (226) | 394 | 567 |
Balance | 145,751 | 147,983 | 145,751 | 147,983 |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||||
Balance | (683) | (1,101) | ||
Other comprehensive income before reclassifications | (61) | 299 | ||
Losses (gains) reclassified from accumulated other comprehensive income (loss) | 1 | 59 | ||
Net current period other comprehensive income (loss) | (60) | 358 | ||
Balance | (743) | (743) | ||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
Balance | 48 | 9 | ||
Other comprehensive income before reclassifications | (29) | 163 | ||
Losses (gains) reclassified from accumulated other comprehensive income (loss) | (19) | (172) | ||
Net current period other comprehensive income (loss) | (48) | (9) | ||
Balance | ||||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||
Balance | (445) | (455) | ||
Other comprehensive income before reclassifications | ||||
Losses (gains) reclassified from accumulated other comprehensive income (loss) | 6 | 16 | ||
Net current period other comprehensive income (loss) | 6 | 16 | ||
Balance | (439) | (439) | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Balance | (311) | (305) | ||
Other comprehensive income before reclassifications | 35 | 29 | ||
Losses (gains) reclassified from accumulated other comprehensive income (loss) | ||||
Net current period other comprehensive income (loss) | 35 | 29 | ||
Balance | (276) | (276) | ||
AOCI Attributable to Parent [Member] | ||||
Balance | (1,391) | (474) | (1,852) | (1,267) |
Other comprehensive income before reclassifications | (55) | 491 | ||
Losses (gains) reclassified from accumulated other comprehensive income (loss) | (12) | (97) | ||
Net current period other comprehensive income (loss) | (67) | (226) | 394 | 567 |
Balance | $ (1,458) | $ (700) | $ (1,458) | $ (700) |
Note N - Accumulated Other Co59
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, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Losses on available-for-sale marketable securities | $ 382 | $ 344 | $ 1,216 | $ 910 | |
Net income (loss) | 578 | 5,334 | (2,874) | 3,501 | |
Research and development | [1] | 9,214 | 8,504 | 27,565 | 26,430 |
Sales and marketing | [2] | 3,635 | 3,617 | 10,640 | 10,332 |
General and administrative | [3] | 2,483 | 2,064 | 7,342 | 6,622 |
Research and development | [1] | 9,214 | 8,504 | 27,565 | 26,430 |
Sales and marketing | [2] | 3,635 | $ 3,617 | 10,640 | $ 10,332 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Net income (loss) | (12) | (97) | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||||
Losses on available-for-sale marketable securities | 1 | 59 | |||
Net income (loss) | 1 | 59 | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||||
Net income (loss) | (19) | (172) | |||
Research and development | (15) | (135) | |||
Sales and marketing | (1) | (13) | |||
General and administrative | (3) | (24) | |||
Research and development | (15) | (135) | |||
Sales and marketing | (1) | (13) | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||||
Net income (loss) | 6 | 16 | |||
Research and development | 3 | 10 | |||
Sales and marketing | 3 | 6 | |||
General and administrative | 6 | 16 | |||
Research and development | 3 | 10 | |||
Sales and marketing | $ 3 | $ 6 | |||
[1] | Includes equity-based compensation expense in the amount of $576 and $668 for the three months ended September 30, 2017 and 2016, respectively; and $1,815 and $1,615 for the nine months ended September 30, 2017 and 2016, respectively. | ||||
[2] | Includes equity-based compensation expense in the amount of $273 and $230 for the three months ended September 30, 2017 and 2016, respectively; and $870 and $555 for the nine months ended September 30, 2017 and 2016, respectively. | ||||
[3] | Includes equity-based compensation expense in the amount of $505 and $465 for the three months ended September 30, 2017 and 2016, respectively; and $1,566 and $1,293 for the nine months ended September 30, 2017 and 2016, respectively. |
Note O - Government Grants (Det
Note O - Government Grants (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Financial Grants in Support of Research and Development | $ 0.2 | $ 0.5 | $ 1.2 | $ 2.2 |
Financial Grants in Support of Research and Development, Royalty Obligation | 5.00% | 5.00% |