Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 06, 2018 | Jun. 30, 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) | 22,725,242 | ||
Entity Public Float | $ 137,666,207 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 21,324,000 | $ 17,752,000 |
Restricted deposits | 524,000 | 70,000 |
Marketable securities and short-term deposits (Note 3) | 24,697,000 | 29,031,000 |
Trade receivables | 13,416,000 | 19,069,000 |
Other accounts receivable and prepaid expenses (Note 4) | 3,167,000 | 2,331,000 |
Inventories (Note 5) | 9,422,000 | 9,748,000 |
Total current assets | 72,550,000 | 78,001,000 |
PROPERTY AND EQUIPMENT, NET (Note 6) | 3,184,000 | 4,130,000 |
NON-CURRENT ASSETS: | ||
Long-term marketable securities and long-term deposits (Note 3) | 82,669,000 | 78,092,000 |
Long-term prepaid expenses and lease deposits | 1,541,000 | 1,329,000 |
Deferred income taxes (Note 14) | 1,043,000 | 918,000 |
Severance pay fund | 15,190,000 | 12,751,000 |
Intangible assets, net (Note 7) | 2,779,000 | 4,480,000 |
Goodwill | 6,243,000 | 6,243,000 |
Total non-current assets | 109,465,000 | 103,813,000 |
Total assets | 185,199,000 | 185,944,000 |
CURRENT LIABILITIES: | ||
Trade payables | 8,660,000 | 12,540,000 |
Accrued compensation and benefits | 8,699,000 | 8,666,000 |
Income tax accruals and payables | 1,232,000 | 1,137,000 |
Accrued expenses and other accounts payable (Note 9) | 2,888,000 | 3,556,000 |
Total current liabilities | 21,479,000 | 25,899,000 |
NON-CURRENT LIABILITIES: | ||
Deferred income taxes, net (Note 14) | 424,000 | 787,000 |
Accrued severance pay | 15,463,000 | 12,908,000 |
Accrued pensions (Note 10) | 883,000 | 803,000 |
Total non-current liabilities | 16,770,000 | 14,498,000 |
COMMITMENTS AND CONTINGENCIES (Note 13) | ||
STOCKHOLDERS’ EQUITY (Note 12): | ||
Common stock, $0.001 par value - Authorized: 50,000,000 shares at December 31, 2016 and 2015; Issued and outstanding: 22,432,660 and 21,931,157 shares at December 31, 2017 and 2016, respectively | 22,000 | 22,000 |
Additional paid-in capital | 372,041,000 | 366,121,000 |
Treasury stock at cost, 12,043,904 shares at December 31, 2017 | (118,397,000) | (122,632,000) |
Accumulated other comprehensive loss | (1,874,000) | (1,852,000) |
Accumulated deficit | (104,842,000) | (96,112,000) |
Total stockholders’ equity | 146,950,000 | 145,547,000 |
Total liabilities and stockholders’ equity | $ 185,199,000 | $ 185,944,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 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) | 22,432,660 | 21,931,157 |
Common stock, outstanding (in shares) | 22,432,660 | 21,931,157 |
Treasury stock (in shares) | 12,043,904 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Revenues | $ 124,753 | $ 137,869 | $ 144,271 | |
Costs of revenues (1) | [1] | 67,058 | 77,023 | 84,411 |
Gross profit | 57,695 | 60,846 | 59,860 | |
Operating expenses: | ||||
Research and development | [2] | 36,655 | 34,885 | 35,483 |
Sales and marketing | [3] | 14,315 | 13,867 | 12,103 |
General and administrative | [4] | 9,789 | 9,006 | 9,876 |
Amortization of intangible assets | 1,700 | 1,457 | 1,284 | |
Other income (Note 10) | (2,549) | |||
Write-off of expired option related to investment in other company | 400 | |||
Total operating expenses | 62,459 | 56,666 | 59,146 | |
Operating income (loss) | (4,764) | 4,180 | 714 | |
Financial income, net (Note 11) | 1,669 | 1,227 | 1,175 | |
Income (loss) before income tax benefit (expense) | (3,095) | 5,407 | 1,889 | |
Income tax benefit (expense) | 92 | (594) | (327) | |
Net income (loss) | $ (3,003) | $ 4,813 | $ 1,562 | |
Net earnings (loss) per share: | ||||
Basic (in dollars per share) | $ (0.14) | $ 0.22 | $ 0.07 | |
Diluted (in dollars per share) | $ (0.14) | $ 0.21 | $ 0.07 | |
Weighted average number of shares used in per share computations of: | ||||
Basic net earnings (loss) per share (in shares) | 22,229 | 21,800 | 21,924 | |
Diluted net earnings (loss) per share (in shares) | 22,229 | 22,887 | 23,340 | |
[1] | Includes equity-based compensation expense in the amount of $352, $328 and $300 for the years ended December 31, 2017, 2016 and 2015, respectively. | |||
[2] | Includes equity-based compensation expense in the amount of $2,349, $2,205 and $2,201for the years ended December 31, 2017, 2016 and 2015, respectively. | |||
[3] | Includes equity-based compensation expense in the amount of $1,115, $806 and $641 for the years ended December 31, 2017, 2016 and 2015, respectively. | |||
[4] | Includes equity-based compensation expense in the amount of $2,045, $1,749 and $1,950 for the years ended December 31, 2017, 2016 and 2015, respectively. |
Consolidated Statements of Ope5
Consolidated Statements of Operations (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity-based compensation expense included in cost of revenues | $ 352 | $ 328 | $ 300 |
Equity-based compensation expenses included in research and development, net | 2,349 | 2,205 | 2,201 |
Equity-based compensation expense included in sales and marketing | 1,115 | 806 | 641 |
Equity-based compensation expense included in general and administrative | $ 2,045 | $ 1,749 | $ 1,950 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income | $ (3,003) | $ 4,813 | $ 1,562 |
Changes in unrealized gains/losses | (158) | (617) | (230) |
Reclassification adjustments for losses included in net income (loss) | 50 | 17 | 24 |
Net change | (108) | (600) | (206) |
Changes in unrealized gains (losses) | 163 | 45 | (38) |
Reclassification adjustments for (gains) losses included in net income (loss) | (172) | (1) | 621 |
Net change | (9) | 44 | 583 |
Gains (losses) arising during the period | 24 | (117) | 63 |
Amortization of actuarial loss and prior service benefit | 22 | 14 | 20 |
Net change | 46 | (103) | 83 |
Foreign currency translation adjustments, net | 49 | 74 | (161) |
Other comprehensive income (loss) | (22) | (585) | 299 |
Comprehensive income | $ (3,027) | $ 4,228 | $ 1,861 |
Statements of Changes in Stockh
Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total | |
Balance (in shares) at Dec. 31, 2014 | 21,844,000 | ||||||
Balance at Dec. 31, 2014 | $ 22 | $ 355,906 | $ (122,387) | $ (1,566) | $ (85,352) | $ 146,623 | |
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] | 2,269 | (500) | 1,769 | |||
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors (in shares) | 791,000 | ||||||
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors | $ 1 | 25 | 7,689 | (6,473) | $ 1,242 | ||
Purchase of treasury stock (in shares) | (1,295,000) | (1,295,000) | |||||
Purchase of treasury stock | $ (1) | (13,268) | $ (13,268) | ||||
Equity-based compensation expenses | 5,092 | 5,092 | |||||
Net income | 1,562 | 1,562 | |||||
Change in accumulated other comprehensive income | 299 | 299 | |||||
Balance (in shares) at Dec. 31, 2015 | 21,573,000 | ||||||
Balance at Dec. 31, 2015 | $ 22 | 361,023 | (125,697) | (1,267) | (90,763) | 143,318 | |
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] | 2,270 | (492) | 1,778 | |||
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors (in shares) | 1,176,000 | ||||||
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors | $ 1 | 10 | 11,461 | (9,670) | $ 1,802 | ||
Purchase of treasury stock (in shares) | (1,051,000) | (1,051,000) | |||||
Purchase of treasury stock | $ (1) | (10,666) | $ (10,666) | ||||
Equity-based compensation expenses | 5,088 | 5,088 | |||||
Net income | 4,813 | 4,813 | |||||
Change in accumulated other comprehensive income | (585) | (585) | |||||
Balance (in shares) at Dec. 31, 2016 | 21,931,000 | ||||||
Balance at Dec. 31, 2016 | $ 22 | 366,121 | (122,632) | (1,852) | (96,112) | 145,547 | |
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) | 663,000 | ||||||
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors | [1] | 59 | 6,500 | (5,397) | $ 1,162 | ||
Purchase of treasury stock (in shares) | (389,000) | (389,000) | |||||
Purchase of treasury stock | [1] | (4,490) | $ (4,490) | ||||
Equity-based compensation expenses | 5,861 | 5,861 | |||||
Net income | (3,003) | (3,003) | |||||
Change in accumulated other comprehensive income | (22) | (22) | |||||
Balance (in shares) at Dec. 31, 2017 | 22,433,000 | ||||||
Balance at Dec. 31, 2017 | $ 22 | $ 372,041 | $ (118,397) | $ (1,874) | $ (104,842) | $ 146,950 | |
[1] | Represents an amount lower than $1. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Cash flows from operating activities: | ||||
Net income | $ (3,003) | $ 4,813 | $ 1,562 | |
Adjustments required to reconcile net income to net cash provided by operating activities: | ||||
Depreciation | 1,781 | 1,704 | 1,356 | |
Equity-based compensation expenses related to employees’ stock options, SARs and RSUs | 5,861 | 5,088 | 5,092 | |
Capital loss from sale and disposal of property and equipment | 19 | 10 | 4 | |
Realized losses from sale of marketable securities, net | 50 | 17 | 24 | |
Amortization of intangible assets | 1,700 | 1,457 | 1,284 | |
Write-off of expired option related to investment in other company | 400 | |||
Accrued interest and amortization of premium on marketable securities and short-term deposits | 363 | 610 | 847 | |
Change in operating assets and liabilities: | ||||
Deferred income tax assets and liabilities, net | (459) | 320 | (756) | |
Trade receivables, net | 5,728 | 168 | 945 | |
Other accounts receivable and prepaid expenses | (1,142) | 953 | (987) | |
Inventories | 363 | 1,702 | 4,131 | |
Long-term prepaid expenses and lease deposits | (212) | (166) | (31) | |
Trade payables | (3,893) | (575) | (2,180) | |
Accrued compensation and benefits | 1,878 | 2,566 | 184 | |
Income tax accruals | 38 | (724) | 800 | |
Accrued expenses and other accounts payable | (704) | (1,379) | (499) | |
Accrued severance pay, net | 117 | (91) | 55 | |
Accrued pensions | 18 | 42 | (7) | |
Net cash provided by operating activities | 8,503 | 16,515 | 12,224 | |
Cash flows from investing activities: | ||||
Purchase of marketable securities | (38,923) | (47,934) | (35,475) | |
Purchase of short-term deposits | (10,884) | (7,601) | (5,563) | |
Proceeds from maturity of marketable securities | 21,499 | 35,090 | 20,127 | |
Proceeds from sales of marketable securities | 19,226 | 14,277 | 13,238 | |
Proceeds from redemption of short-term deposits | 8,309 | 5,601 | 2,589 | |
Purchases of property and equipment | (838) | (2,103) | (2,297) | |
Acquisition of initially consolidated subsidiary (1) | [1] | (494) | ||
Proceeds from sale of fixed assets | 9 | |||
Decrease (increase) in restricted deposits | (445) | 98 | 455 | |
Net cash used in investing activities | (2,056) | (3,057) | (6,926) | |
Cash flows from financing activities: | ||||
Issuance of common stock and treasury stock upon exercise of stock options | 1,509 | 1,457 | 1,242 | |
Repayment of short-term loan | (168) | |||
Purchase of treasury stock | (4,465) | (10,727) | (13,206) | |
Net cash used in financing activities | (2,956) | (9,438) | (11,964) | |
Increase (decrease) in cash and cash equivalents | 3,491 | 4,020 | (6,666) | |
Cash and cash equivalents at the beginning of the year | 17,752 | 13,704 | 20,544 | |
Cash (erosion) due to exchange rate differences | 81 | 28 | (174) | |
Cash and cash equivalents at the end of the year | 21,324 | 17,752 | 13,704 | |
Taxes on income | $ 219 | $ 1,018 | $ 134 | |
[1] | During the third quarter of 2016, the Company acquired the remaining 86% of the equity of a private company in Asia that it previously invested in, bringing its holding in such company to 100%. The net fair value of the assets acquired and the liabilities assumed, on the date of acquisition, was as follows: |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | ( 1 During the t hird quarter of 2016, 86% 100%. Working capital, excluding cash and cash equivalents $ (386 ) Property and equipment 4 Distribution agreement 2,086 Deferred tax liability (377 ) Goodwill 967 2,294 The acquisition date fair value of the Company's previously held equity interest in the private company in Asia (1,800 ) $ 494 The accompanying notes are an integral part of the consolidated financial statements. |
Note 1 - General
Note 1 - General | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE 1: GENERAL DSP Group, Inc., a Delaware corporation, and its subsidiaries (collectively, the “Company”), are a fabless semiconductor company offering advanced chipset solutions for a variety of applications. The Company is a worldwide leader in the short-range wireless communication market, enabling home networking convergence for voice, audio, video and data. The Company sells its products primarily through distributors and directly to OEMs and original design manufacturers (ODMs) that incorporate the Company ’s products into consumer and enterprise 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 years ended December 31, 2017, 2016 2015: Year ended December 31, Major Customers/ Distributors 2017 2016 2015 VTech Holdings Ltd. 27% 29% 31% Shenzhen Guo Wei Electronics Ltd. * *% 12% Tomen Electronics Corporation (“Tomen Electronics”) ¹ ² 12% 12% 16% Ascend Technology Inc. (“Ascend Technology”) ¹ ³ 23% 16% 15% Samsung Electronics Ltd. * 12% - *Less than 10%. 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 10%, 10% 13% 2017, 2016 2015, ³ Ascend Technology sells the Company ’s products to a limited number of customers; however none 10% 2017, 2016 2015. The Japanese and Hong Kong markets and the OEMs that operate in those markets are among the largest suppliers in the world with significant market share in the U.S. market for residential wireless products. All of the Company ’s integrated circuit products are manufactured and tested by independent foundries and test houses. While these foundries and test houses have been able to adequately meet the demands of the Company’s business, the Company is and will continue to be dependent upon these foundries and test houses to achieve acceptable manufacturing yields, quality levels and costs, and to allocate to the Company a sufficient portion of foundry and test capacity to meet the Company’s needs in a timely manner. Revenues could be materially and adversely affected should any of these foundries and test houses fail to meet the Company’s request for product manufacturing due to a shortage of production capacity, process difficulties, low yield rates or financial instability. Additionally, certain of the raw materials, components, and subassemblies included in the products manufactured by the Company’s original equipment manufacturer (OEM) customers, which incorporate the Company’s products, are obtained from a limited group of suppliers. Disruptions, shortages, or termination of certain of these sources of supply could occur and could negatively affect the Company’s financial condition and results of operations. |
Note 2 - Significant Accounting
Note 2 - Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | NOTE 2: SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements are prepared according to United States generally accepted accounting principles (“U.S. GAAP”). a. Use of estimates: The preparation of 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 that these estimates, judgments and assumptions are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. b. Financial statements in U.S. dollars: Most of the Company ’s revenues are generated in U.S. dollars. In addition, a substantial portion of the Company’s costs are incurred in U.S. dollars. The Company’s management believes that the U.S. dollar is the currency of the primary economic environment in which the Company operates. Thus, the functional and reporting currency of the Company is the U.S. dollar. Monetary accounts maintained in currencies other than the U.S. dollar are remeasured into dollars in accordance with ASC No. 830 30, The financial statements of the Company ’s subsidiary – DSP Group Technologies GmbH whose functional currency is in Euro, has been translated into dollars. All amounts on the balance sheets have been translated into the dollar using the exchange rates in effect on the relevant balance sheet dates. All amounts in the consolidated statements of operations have been translated into the dollar using the average exchange rate for the relevant periods. The resulting translation adjustments are reported as a component of accumulated other comprehensive income (loss) in changes in stockholders’ equity. Accumulated other comprehensive loss related to foreign currency translation adjustments, net amounted to $256 $305 December 31, 2017 2016, c. Principles of consolidation: The consolidated financial statements include the accounts of the Company. Intercompany transactions and balances have been eliminated in consolidation. d. Cash equivalents: Cash equivalents are short-term highly liquid investments, which are readily convertible to cash with original maturity of three e. Restricted deposits: Restricted deposits include deposits which are used as security for lease agreements. f. Short-term deposits: Bank deposits with original maturities of more than three one g. Marketable securities: The Company accounts for investments in debt securities in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 320 10, ’s investments in debt securities at the time of purchase and reevaluates such determinations at each balance sheet date. The Company classified all of its investments in marketable securities as available for sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses, reported in accumulated other comprehensive income (loss) using the specific identification method. The amortized cost of marketable securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization is included in financial income, net. Interest and dividends on securities are included in financial income, net. The marketable securities are periodically reviewed for impairment. If management concludes that any of these investments are 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 not During the years ended December 31, 2017, 2016 2015, not 3 h. Fair value of financial instruments: Cash and cash equivalents, restricted deposits, short-term deposits, trade receivables, trade payables and accrued liabilities approximate fair value due to short -term maturities of these instruments. Marketable securities and derivative instruments are carried at fair value. See Note 3 Fair value is an exit price, representing the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three Level 1 Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Include other inputs that are directly or indirectly observable in the marketplace. Level 3 Unobservable inputs which are supported by little or no The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. i. Inventories: Inventories are stated at the lower of cost and net realizable value. Inventory reserves are provided to cover risks arising from slow-moving items or technological obsolescence. The Company and its subsidiaries periodically evaluate the quantities on hand relative to historical, current and projected sales volume. Based on this evaluation, an impairment charge is recorded when required to write-down inventory to its market value. Cost is determined as follows: Work in progress and finished products- on the basis of raw materials and manufacturing costs on an average basis. The Company regularly evaluates the ability to realize the value of inventory based on a combination of factors, including the following: historical usage rates and forecasted sales according to outstanding backlogs. Purchasing requirements and alternative usage are explored within these processes to mitigate inventory exposure. When recorded, the reserves are intended to reduce the carrying value of inventory to its net realizable value. Inventory of $9,422 , $9,748 $11,453 December 31, 2017, 2016 2015, $468, $571 $670 may j. Property and equipment, net: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, at the following annual rates: % Mainly % Computers and equipment 20 - 33 33 Office furniture and equipment 7 - 15 15 Leasehold improvements see below Leasehold improvements are depreciated on a straight-line basis over the shorter of the lease term (including the extension option held by the Company and intended to be exercised) and the expected life of the improvement. Property and equipment of the Company are reviewed for impairment w henever events or changes in circumstances indicate that the carrying amount of an asset may not During the years ended December 31, 2017, 2016 2015, no The Company accounts for costs of computer software developed or obtained for internal use in accordance with FASB ASC No. 350 40, 350 40 2017 , 2016 2015, $0, $0 $1,086, three k. Goodwill and other intangible assets: The goodwill and certain other purchased intangible assets have been recorded as a result of the BoneTone acquisition and the acquisition of a private company in Asia. Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill is not ASC 350 two first second second ’s goodwill to the implied fair value of that goodwill. An impairment loss is recognized in an amount equal to the excess. ASC 350 first two not not Alternatively, ASC 350 first The Company performs an annual impairment test on December 31 The Company ’s reporting units are consistent with the reportable segments identified in Note 16. Fair value is determined using discounted cash flows, market multiples and market capitalization. Significant estimates used in the methodologies include estimates of future cash-flows, future short-term and long-term growth rates, weighted average cost of capital and market multiples for the reporting unit. For the fiscal year ended December 31, 2017 , 2016 2015, no Intangible assets that are not lives, which range from 5 6 may not If such asset is considered to be impaired, the impairment to be recognized is measured as the difference between the carrying amount of the assets and the fair value of the impaired asset. During the fiscal year ended December 31, 2017, 2016 2015, no l. Severance pay: DSP Group Ltd., the Company ’s Israeli subsidiary (“DSP Israel”), has a liability for severance pay pursuant to Israeli law, based on the most recent monthly salary of its employees multiplied by the number of years of employment as of the balance sheet date for such employees. DSP Israel’s liability is fully provided for by monthly accrual and deposits with severance pay funds and insurance policies. The deposited funds include profits accumulated up to the balance sheet date. The deposited funds may ’s Severance Pay Law or labor agreements. The Company ’s Korean subsidiary has a statutory liability for severance pay pursuant to Korean law based on the most recent monthly salary of its employees multiplied by the number of years of employment as of the balance sheet date for such employees. This Korean subsidiary’s liability is fully accrued. Severance expenses for the years ended December 31, 2017 , 2016 2015, $1,666, $1,582 $1,498, m. Revenue recognition: The Company generates its revenues from sales of products. The Company sells its products through a direct sales force and through a network of distributors. Product sales are recognized when persuasive evidence of an agreement exists, delivery of the product has occurred, the fee is fixed or determinable, collectability is reasonably assured, and no Persuasive evidence of an arrangement exists - The Company’s sales arrangements with customers are pursuant to written documentation, either a written contract or purchase order. The actual documentation used is dependent on the business practice with each customer. Therefore, the Company determines that persuasive evidence of an arrangement exists with respect to a customer when it has a written contract, or a written purchase order from the customer. Delivery has occurred - Each written documentation relating to a sale arrangement that is agreed upon with the customer specifically sets forth when risk and title are being transferred (based on the agreed International Commercial terms, or “INCOTERMS”). Therefore, the Company determines that risk and title are transferred to the customer when the terms of the written documentation based on the applicable INCOTERMS are satisfied and thus delivery of its products has occurred. Separately, the Company has consignment inventory which is held for specific customers at the customers ’ premises. It recognizes revenue on the consigned inventory when the customer consumes the products from the warehouse, as that is when per the consignment inventory agreements, risk and title passes to the customer and the products are deemed delivered to the customer. Price is fixed or determinable - Pursuant to the customer agreements, the Company does not no four Collectability of the related receivable is reasonably assured - The Company determines whether collectability is reasonably assured on a customer-by-customer basis pursuant to its credit review policy. The Company typically sells to customers with whom it has a long-term business relationship and a history of successful collection. A significant number of the Company’s customers are also large original equipment manufacturers with substantial financial resources. For a new customer, or when an existing customer substantially expands its commitments, the Company evaluates the customer’s financial position, the number of years the customer has been in business, the history of collection with the customer and the customer’s ability to pay and typically assigns a credit limit based on that review. The Company increases the credit limit only after it has established a successful collection history with the customer. If the Company determines at any time that collectability is not With respect to product sales through the Company ’s distributors, such product revenues are deferred until the distributors resell the Company’s products to the end-customers (“sell through”) and recognized based upon receipt of reports from the distributors, provided all other revenue recognition criteria as discussed above are met. The Company views its distributor arrangements as that of consignment because, although the actual sales are conducted through the distributors and legally title for the products passes to the distributors upon delivery to the distributors, in substance inventory is simply being transferred to another location for sale to the end-user customers as the Company ’s primary business relationships and responsibilities are directly with the end-user customers. Because the Company views its arrangements with its distributors as that of consignment relationships, delivery of goods is not n. Warranty: The Company warrants its products against errors, defects and bugs for generally one may December 31, 2017 , 2016 2015. o. Research and development costs, net: Research and development costs, net of grants received, are charged to the consolidated statement of operations as incurred. p. 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 in 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 $1,528, $2,687 $2,738 December 31, 2017 2016 2015, The Company ’s Israeli subsidiary is obligated to pay royalties amounting to 5% may not may not third not may may not six three third q. Equity-based compensation: At December 31, 2017 , the Company had two may two no may one 12. The Company accounts for equity-based compensation in accordance with FASB ASC No. 718, No. 718” No. 718 The Company recognizes compensation expenses for the value of its awards granted based on the accelerated attribution method, rather than a straight-line method over the requisite service period of each of the awards, net of estimated forfeitures. FASB ASC No. 718 The Company selected the lattice option pricing model as the most appropriate fair value method for its equity-based awards and values options and stock appreciation rights (SARs) based on the market value of the underlying shares on the date of grant. The option-pricing model requires a number of assumptions, of which the most significant are the expected stock price volatility and the expected term of the equity-based award. Expected volatility is calculated based upon actual historical stock price movements. The expected term of the equity-based award granted is based upon historical experience and represents the period of time that the award granted is expected to be outstanding. The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent term. The Company has historically not no With respect to the Company’s employee stock purchase plan, the Company selected the Monte Carlo pricing model as the most appropriate fair value method. A majority of the Company’s equity awards until 2012 2013, . The fair value of each restricted stock unit (“RSU”) is based on the market value of the underlying share on the date of grant. r. Basic and diluted income (loss) per share: Basic net income (loss) per share is computed based on the weighted average number of shares of common stock outstanding during the year. Diluted net income (loss) per share further includes the dilutive effect of stock options, SARs and RSUs outstanding during the year, all in accordance with FASB ASC No. 260, The total weighted average number of shares related to the outstanding stock options, SARs and RSUs excluded from the calculation of diluted net income per share due to their anti-dilutive effect was 1,378,282, 334,833 403,632 December 31, 2017, 2016 2015, s. Income taxes: The Company accounts for income taxes in accordance with FASB ASC No. 740, Deferred tax liabilities and assets are classified as non-current based on the adopting of Accounting Standards Update (“ASU”) 2015 17, 2015 17, 2015 17 for all period presented. The Company accounts for uncertain tax positions in accordance with ASC 740, two measuring uncertain tax positions. The first not second 50% The Company includes interest related to tax issues as part of income tax expense in its consolidated financial statements. The Company records any applicable penalties related to tax issues within the income tax provision. t. Concentrations of credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, restricted deposits, short-term deposits, trade receivables and marketable securities. The majority of cash and cash equivalents and short-term deposits of the Company are invested in dollar deposits with major U.S., European and Israeli banks. Deposits in U.S. banks may not these deposits may The Company ’s marketable securities consist of investment-grade corporate bonds and U.S. government-sponsored enterprise (“GSE”) securities. As of December 31, 2017, $98,081, $96,872, $1,209. A significant portion of the products of the Company is sold to original equipment manufacturers of consumer electronics products. The customers of the Company are located primarily in Japan, Hong Kong, Taiwan, China, Korea, Europe and the United States. The Company performs ongoing credit evaluations of their customers. A specific allowance for doubtful accounts is determined, based on management’s estimates and historical experience. Under certain circumstances, the Company may December 31, 2017 2016, no The Company has no u. Derivative instruments: The Company accounts for derivatives and hedging based on FASB ASC No.815, ASC No. 815 requires companies to recognize all of their derivative instruments as either assets or liabilities on the balance sheet at fair value. For derivative instruments that are designated and qualify as a cash flows hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Any gain or loss on a derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item is recognized in current earnings during the period of change. To protect against the increase in value of forecasted foreign currency cash flows resulting from salary and rent payments in New Israeli Shekel (“NIS”) during the year, the Company instituted a foreign currency cash flow hedging program. The Company hedges portions of the anticipated payroll and rent of its Israeli facilities denominated in NIS for a period of one 12 The fair value of the outstanding derivative instruments at December 31, 2017 2016 Fair value of derivative instruments Derivative assets December 31, (liabilities) designated as hedging Balance sheet location 2017 2016 Foreign exchange forward contracts and put and call options Other accounts receivable and prepaid expenses (Accrued expenses and other accounts payable) $ - $ 9 Total $ - $ 9 The effect of derivative instruments in cash flow hedging transactions on income and other comprehensive income (“OCI”) for the years ended December 31, 2017, 2016 2015 Gains (losses) on derivatives recognized in OCI Year ended December 31, 2017 2016 2015 Foreign exchange forward contracts and put and call options $ 163 $ 45 $ (38 ) Gains (losses) on derivatives reclassified from OCI to income Year ended December 31, Location 2017 2016 2015 Foreign exchange forward contracts and put and call options Operating expenses $ 172 $ 1 $ (621 ) As of December 31, 2017, no As of December 31, 2016, $6,000. As of December 31, 2015, $12,850 $1,800, v. Comprehensive income: The Company accounts for comprehensive income in accordance with FASB ASC No. 220, ’ equity during the period except those resulting from investments by, or distributions to, stockholders. The Company determined that its items of other comprehensive income relate to gains and losses on hedging derivative instruments, unrealized gains and losses on available-for-sale securities, unrealized gains and losses from pension and unrealized gain and losses from foreign currency translation adjustments. The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for 201 7: 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 January 1, 2017 $ (1,101 ) $ 9 $ (455 ) $ (305 ) $ (1,852 ) Other comprehensive income (loss) before reclassifications (158 ) 163 24 49 78 Losses (gains) reclassified from accumulated other comprehensive income (loss) 50 (172 ) 22 - (100 ) Net current period other comprehensive income (loss) (108 ) (9 ) 46 49 (22 ) December 31, 2017 $ (1,209 ) $ - $ (409 ) $ (256 ) $ (1,874 ) The following table provides details about reclassifications out of accumulated other comprehensive income (loss) for 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 (Loss) Losses on available-for-sale marketable securities $ 50 Financial income, net - Provision for income taxes 50 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 14 Research and development 8 Sales and marketing 22 Total, before income taxes - Provision for income taxes 22 Total, net of income taxes Total reclassificati ons for the period (100 ) Total, net of income taxes w. Treasury stock at cost The Company repurchases its common stock from time to time on the open market or in other transactions and holds such shares as treasury stock. The Company presents the cost to repurchase treasury stock as a reduction of stockholders ’ equity. From time to time, the Company reissues treasury stock under its employee stock purchase plan and equity incentive plans, upon purchases or exercises of equity awards under the plans. When treasury stock is reissued, the Company accounts for the re-issuance in accordance with ASC No. 505 30, the re-issuance price, the Company credits the difference to additional paid-in capital. x. Recently Issued Accounting Guidance: In May 2014, five may January 1, 2018 $94, $21 $115 January 1, 2018. Other than specified above, the Company does not In February 2016, 2016 02 842 not twelve twelve 842 840. January 1, 2019, January 1, 2019 In August 2016, No. 2016 15 December 15, 2017 no In March 2016, No. 2016 09, January 1, 2017. not In January 2017, No. 2017 04, 2 not zero 2 December 15, 2019. January 1, 2017. not In June 2016, 2016 13 December 15, 2019 December 15, 2018. first not In August 2017, 2017 12, Derivatives and Hedging (Topic 815 January 1, 2019. not . In March 2017, 2017 07, Compensation—Retirement Benefits (Topic 715 January 1, 2018. not . |
Note 3 - Marketable Securities
Note 3 - Marketable Securities and Time Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE 3: MARKETABLE SECURITIES AND TIME DEPOSITS The following is a summary of marketable securities and time deposits at December 31, 201 7 2016 8 Amortized cost Unrealized gains (losses), net Fair value 201 7 2016 201 7 2016 201 7 2016 Short-term deposit $ 5,481 $ 7,610 $ - $ - $ 5,481 $ 7,610 Long -term deposit 5,013 - - - 5,013 - U.S. GSE securities 22,359 24,351 (315 ) (289 ) 22,044 24,062 Corporate obligations 75,722 76,264 (894 ) (813 ) 74,828 75,451 $ 108,575 $ 108,225 $ (1,209 ) $ (1,102 ) $ 107,366 $ 107,123 The amortized costs of marketable debt securities at December 31, 2017, : Amortized Unrealized gains (losses) Fair cost Gains Losses value Due in one year or less $ 19,239 $ 3 $ (26 ) $ 19,216 Due after one year to five years 78,842 10 (1,196 ) 77,656 $ 98,081 $ 13 $ (1,222 ) $ 96,872 The amortized cost of marketable debt securities at December 31, 2016, : Amortized Unrealized gains (losses) Fair cost Gains Losses value Due in one year or less $ 21,491 $ 6 $ (76 ) $ 21,421 Due after one year to six years 79,124 44 (1,076 ) 78,092 $ 100,615 $ 50 $ (1,152 ) $ 99,513 The actual maturity dates may may The total fair value of marketable securities with outstanding unrealized losses as of December 31, 2017 $85,435, unrealized losses for these marketable securities amounted to $1,222. $1,222 December 31, 2017, $775 12 $447 12 The total fair value of marketable securities with outstanding unrealized losses as of December 31, 2016 $80,819, $1,152. $1,152 December 31, 2016, $85 12 $1,067 12 Management believes that as of December 31, 2017, no The unrealized losses related to the Company’s marketable securities were primarily due to changes in interest rates. Because the Company does not not not may not December 31, 2017. Proceeds from maturity of available-for-sale marketable securities during 201 7, 2016 2015 $21,499, $35,090 $20,127, 2017, 2016 2015 $19,226, $14,277 $13,238 2017, 2016 2015 $7, $16 $3, 2017, 2016 2015 $57, $33 $27, |
Note 4 - Other Accounts Receiva
Note 4 - Other Accounts Receivable and Prepaid Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Other Accounts Receivable and Prepaid Expenses Disclosure [Text Block] | NOTE 4: OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES December 31, 201 7 2016 Prepaid expenses $ 1,612 $ 1,262 Tax and governmental receivables 1,019 606 Deposits 249 304 Others 287 159 $ 3,167 $ 2,331 |
Note 5 - Inventories
Note 5 - Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE 5: INVENTORIES Inventories are composed of the following: December 31, 201 7 2016 Work-in-progress $ 3,577 $ 5,784 Finished products 5,845 3,964 $ 9,422 $ 9,748 Inventory write-downs amounted to $ 51, $151 $361 December 31, 2017, 2016 2015, |
Note 6 - Property and Equipment
Note 6 - Property and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 6: PROPERTY AND EQUIPMENT Composition of assets, grouped by major classifications, is as follows: December 31, 201 7 2016 Cost: Computers and equipment $ 21,465 $ 20,636 Office furniture and equipment 1,429 1,537 Leasehold improvements 5,060 5,004 27,954 27,177 Less - accumulated depreciation 24,770 23,047 Depreciated cost $ 3,184 $ 4,130 During 201 7, $98. $19 During 2016, easehold improvements, which ceased to be used, in the amount of $953. $10 Depreciation expensesamounted to $1,781 , $1,704 $1,356 December 31, 2017, 2016 2015, |
Note 7 - Intangible Assets
Note 7 - Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | NOTE 7: INTANGIBLE ASSETS The following table shows the Company ’s intangible assets for the periods presented: Useful life December 31, (years) 201 7 2016 Cost: Technology (completion of the development of in-process R&D) 6 7,702 7,702 Distribution agreement 5 2,086 2,086 Non-competition agreement 3 519 519 10,307 10,307 Accumulated amortization: Technology (completion of the development of in-process R&D) 6,418 5,134 Distribution agreement 591 174 Non-competition agreement 519 519 7,528 5,827 Amortized cost $ 2,779 $ 4,480 a. Amortization expenses amounted to $1,700, $1,457 $1,284 December 31, 2017, 2016 2015, b. Estimated amortization expenses for the years ending: Year ending December 31, 201 8 $ 1,701 201 9 417 20 20 417 202 1 244 $ 2,779 |
Note 8 - Fair Value Measurement
Note 8 - Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Fair Value, Measurement Inputs, Disclosure [Text Block] | NOTE 8: FAIR VALUE MEASUREMENTS In accordance with ASC 820, 1 2 2 The following table provides information by value level for financial assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2017: Balance as of Fair value measurements Description December 31, 201 7 Level 1 Level 2 Level 3 Assets Cash equivalents Money market mutual funds $ 2,998 $ 2,998 - - Short-term marketable securities and time deposits U.S. GSE securities $ 786 - $ 786 - Corporate debt securities $ 18,430 - $ 18,430 - Long-term marketable securities U.S. GSE securities $ 21,258 - $ 21,258 - Corporate debt securities $ 56,398 - $ 56,398 - Derivative liabilities $ - - $ - - The following table provides information by value level for financial assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2016 3 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 deposits, short term deposits, trade receivables, other accounts receivable, trade payables, accrued expenses and other payables. The fair value of these financial instruments was not December 31, 2017 2016 |
Note 9 - Accrued Expenses and O
Note 9 - Accrued Expenses and Other Accounts Payable | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | NOTE 9: ACCRUED EXPENSES AND OTHER ACCOUNTS PAYABLE December 31, 2017 2016 Royalties and commission $ 1,369 $ 1,128 Accrued expenses 896 1,385 Accrued l egal, and accounting expenses 367 537 Governmental payables 141 421 Others 115 85 $ 2,888 $ 3,556 |
Note 10 - Accrued Pension Liabi
Note 10 - Accrued Pension Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | NOTE 1 0: ACCRUED PENSION LIABILITIES As of December 31, 2017 and 2016, third The Company ’s pension obligation in Germany relating to the unvested pension claims (i.e. future obligation that will result from future service period) of the employees were outsourced in November 2010 external insurance company. The Company legally is released from its obligations to the German employees once the premiums are paid, and it is no the external insurance company. Since the outsourcing arrangement meets the requirements of a nonparticipating annuity contract, the Company treats the costs of the outsourcing arrangement as the costs of the benefits being earned in accordance with ASC Paragraph 715 30 25 7 of ASC 715 The following tables provide a reconciliation of the changes in the pension plans ’ benefit obligation and the fair value of assets for the years ended December 31, 2017 2016, December 31, 2017 2016: December 31, 201 7 2016 Accumulated benefit obligation $ 871 $ 792 Change in benefit obligation Benefit obligation at beginning of year $ 803 $ 738 Service cost 4 4 Interest cost 14 17 Benefits paid from the plan (22 ) (55 ) Actuarial (gain) loss (22 ) 121 Exchange rates and others 106 (22 ) Benefit obligation at end of year $ 883 $ 803 Change in plan assets Fair value of plan assets at beginning of year - 54 Actual return on plan assets - 3 Benefits paid from the plan - (58 ) Exchange rates - 1 Fair value of plan assets at end of year $ - $ - The assumptions used in the measurement of the Company ’s pension expense and benefit obligations as of December 31, 2017, 2016 2015 Year ended December 31, 201 7 2016 201 5 Weighted-average assumptions Discount rate 1.8 % 1.7 % 2.5 % Expected return on plan assets - 4.59 % 4.28 % Rate of compensation increase 2.5 % 2.5 % 2.5 % The amounts reported for net periodic pension costs and the respective benefit obligation amounts are dependent upon the actuarial assumptions used. The Company reviews historical trends, future expectations, current market conditions, and external data to determine the assumptions. The discount rate is determined considering the yield of government bonds. The rate of compensation increase is determined by the Company, based on its long-term plans for such increases. The following table provides the components of net periodic benefit cost for the years ended December 31, 2017 , 2016 2015: December 31, 201 7 2016 201 5 Components of net periodic benefit cost Service cost $ 4 $ 4 $ 5 Interest cost 14 17 17 Expected return on plan assets - (3 ) (5 ) Amortization of net loss 22 15 20 Net periodic benefit cost $ 40 $ 33 $ 37 December 31, 201 7 2016 Net amounts recognized in the consolidated balance sheets as of December 31, 201 7 and 2016 consist of: Current liabilities $ - $ - Noncurrent liabilities 883 803 Net amounts recognized in the consolidated balance sheets $ 883 $ 803 Net amounts recognized in accumulated other comprehensive income as of December 31, 201 7 and 2016 consist of: Net actuarial loss $ (409 ) $ (454 ) Net amounts recognized in accumulated other comprehensive loss $ (409 ) $ (454 ) The estimated amount that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in 20 18 201 8 Net actuarial loss and other $ 20 Benefit payments are expected to be paid as follows: Year ending December 31, 2018 $ 9 2019 9 2020 10 2021 31 2022 27 2023-2027 112 $ 198 The Company had no December 31, 201 7. Regarding the policy for amortizing actuarial gains or losses for pension and post-employment plans, the Company has chosen the “corridor” option. This option consists of recognizing in the consolidated statements of operations, the part of unrecognized actuarial gains or losses exceeding 10% Actuarial gains were recognized in other comprehensive income (loss) in the amount of $24 December 31, 2017. $117 December 31, 2016. $63 December 31, 2015. |
Note 11 - Financial Income, Net
Note 11 - Financial Income, Net | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Other Nonoperating Income and Expense [Text Block] | NOTE 1 1: FINANCIAL INCOME, NET The components of financial income, net were as follows: Year ended December 31, 201 7 2016 2015 Foreign exchange gains $ 156 $ 14 $ 19 Interest income from marketable securities and deposits, net of amortization of premium on marketable securities 1,719 1,534 1,391 Realized gains on marketable securities 7 16 3 Financial income 1,882 1,564 1,413 Realized losses on marketable securities 57 33 27 Foreign exchange losses 48 132 58 Interest expenses 14 16 12 Other 94 156 141 Financial expense 213 337 238 Financial income, net $ 1,669 $ 1,227 $ 1,175 |
Note 12 - Stockholders' Equity
Note 12 - Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 1 2: STOCKHOLDERS’ EQUITY a. Preferred stock: The Company ’s Board of Directors has the authority, without any further vote or action by the stockholders, to provide for the issuance of up to 5,000,000 one may No b. Common stock: Currently, 50,000,000 one ’s stockholders. Subject to the rights of holders of preferred stock, if any, in the event of liquidation, dissolution or winding up, holders of common stock are entitled to share ratably in all of the Company’s assets. The Company’s Board of Directors may Holders of common stock have no no c. Dividend policy: At December 31, 2017 , the Company had an accumulated deficit of $104,842. d. Share repurchase program: The Company ’s board of directors has previously approved a number of share repurchase plans, including those in accordance with Rule 10b5 1 1934, August 2017, $10 In 2017, 2016 2015, 389,000, 1,051,000 and 1,295,000 shares, respectively, of common stock at an average purchase price of $1 1.55, $10 .15 $10 .24 per share, respectively, for an aggregate purchase price of $4,490, $1 0,666 $13 ,268 , respectively. As of December 31, 2017, 748,010 In 201 7, 2016 2015, 890,000, 1 ,409,000 1,024,000 1993 e. Stock purchase plan and equity incentive plans: The Company has various equity incentive plans under which employees, officers, non-employee directors of the Company and its subsidiaries and others, including consultants, may ’s common stock. The plans authorize the administrator, except for the grant of RSUs, to grant equity incentive awards at an exercise price of not 100% Equity awards granted under all stock incentive plans that are cancelled or forfeited before expiration become available for future grant. Until the end of 2012, ’s common stock during a specified period of time. When the unit is exercised, the appreciation amount is paid through the issuance of shares of the Company’s common stock. The ceiling limits the maximum income for each SAR unit and the maximum number of shares to be issued. SARs are considered an equity instrument as it is a net share settled award capped with a ceiling. Starting in 2013, restricted stock units (“RSUs”) under the various equity incentive plans. An RSU award is an agreement to issue shares of our common stock at the time the award is vested. RSUs granted to employees and executive officers generally vest over a four 25% first 6.25% A summary of the various plans is as follows: 1993 Upon the closing of the Company ’s initial public offering, the Company adopted the Directors Plan. Under the Directors Plan, which expired in January 2014, 1,980,875 30,000 15,000 January 1 six 15,000 January 1 six Options granted under the Directors Plan generally had a term of 10 third first one third twelve The Directors Plan expired in January 2014 no may December 31, 2017, 2,464,933 260,000 1998 1998 In 1998, 1998 1998 may 1998 5,062,881 December 31, 2017, 14,681 1998 The exercise price of options under the 1998 not ’s Board of Directors or a committee appointed by the Company’s Board of Directors. Options under the 1998 48 12 ’s Board of Directors or a committee appointed by the Company’s Board of Directors. Options under the 1998 seven 2003 2003 In 2003, 2003 2003 2012 ’s 2012 “2012 December 31, 2017, 10,700,543 56,186 2003 May 2012, no may Equity awards under the 2003 48 12 ’s Board of Directors or a committee appointed by the Company’s Board of Directors. Equity awards under the 2003 seven 2012 2012 In 2012, 2012 2012 may 2012 not than the fair market value of common stock at the time of grant, unless otherwise determined by the Company’s Board of Directors or a committee appointed by the Company’s Board of Directors. The 2012 3,100,000 December 31, 2017, 682,059 2012 Stock options, SARs and RSUs awarded under the 2012 48 12 ’s Board of Directors or a committee appointed by the Company’s Board of Directors Equity awards under the 2012 seven A director subplan was established under the 2012 ’s non-employee directors. The director subplan is designed to work automatically; however, to the extent administration is necessary, it would be provided by the Company’s board of directors. Starting in 2014, January 1 8,000 4,000 one 1993 Upon the closing of the Company ’s initial public offering, the Company adopted the ESPP. The Company has reserved an aggregate of 4,800,000 may 85% 227,000, 233,000 233,000 $8.34, $7.62 $7.59 2017, 2016 2015, December 31, 2017, 715,000 Stock Reserved for Future Issuance The following table summarizes the number of shares available for future issuance at December 31, 2017 ESPP 715,000 Equity awards 697,000 Undesignated preferred stock 5,000,000 6,412,000 The following is a summary of activities relating to the Company ’s stock options, SARs and RSUs granted among the Company’s various plans: Year ended December 31, 2017 201 6 2015 Amount of options/ SARs/RSUs Weighted average exercise price Aggregate intrinsic value (4) Amount of options/ SARs/RSUs Weighted average exercise price Aggregate intrinsic value (4) Amount of options/ SARs/RSUs Weighted average exercise price Aggregate intrinsic value (4) in thousands in thousands in thousands Options outstanding at beginning of year 2,152 $ 5.12 $ - 3,740 $ 6.22 $ - 4,644 $ 6.52 $ - Changes during the year: Options granted 78 $ 11.93 $ - 64 $ 9.44 $ - 179 $ 11.2 $ - SAR s granted 190 $ 10.40 $ - RSUs granted 476 $ - $ - 573 $ - $ - 405 $ - $ - Exercised (4) (818 ) $ 3.77 $ 6,699 (1,905 ) $ 5.55 $ 10,344 (1,403 ) $ 5.68 $ 7,302 Forfeited and cancelled (86 ) $ 9.85 $ - (320 ) $ 7.16 $ - (85 ) $ 12.21 $ - Options/SARs/RSUs outstanding at end of year (1,2,4) 1,992 $ 5.02 $ 14,931 2,152 $ 5.12 $ 17,347 3,740 $ 6.22 $ 13,364 Options/SARs/RSUs exercisable at end of year (1,3,4) 813 $ 8.20 $ 3,499 1,132 $ 8.27 $ 5,703 2,552 $ 7.47 $ 6,031 ( 1 SAR grants made prior to January 1, 2009 50% January 1, 2009 January 1, 2010 75% January 1, 2010 66.67% January 1, 2012 50% ( 2 Due to the ceiling imposed on the SAR grants, the outstanding amount above can be exercised for a maximum of 1,871 December 31, 2017. ( 3 Due to the ceiling imposed on the SAR grants, the exercisable amount above can be exercised for a maximum of 785 December 31, 2017. ( 4 Calculation of aggregate intrinsic value for options, RSUs and SARs outstanding and exercisable is based on the share price of the Company’s common stock as of December 31, 2017, 2016 2015 $12.50, $13.05 $9.44 The stock options and SARs outstanding as of December 31, 201 7, Range of exercise price Outstanding Remaining contractual life (years) ( 1 ) Weighted average exercise price Exercisable Remaining contractual life (years) Weighted average exercise price $ thousands $ thousands $ 0 (RSUs) 872 - - - - - 5.21 - 7.26 231 3.03 5.89 231 3.03 5.89 7.49 - 9.71 458 3.68 8.50 451 3.68 8.50 10.15 - 15.79 431 5.95 11.01 131 5.03 11.22 1,992 4.42 5.02 813 3.72 8.20 ( 1 Calculation of weighted average remaining contractual term does not As of December 31, 2017, 270,000 and based on the share price of the Company’s common stock as of December 31, 2017 $12.50 December 31, 2017. The weighted average estimated fair value of employee RSUs granted during 2017, 2016 2015 $9.63, $8.33 and $10.43 3.64%, 3.78% 3.49% 2017, 2016 2015, The weighted-average estimated fair value of employee stock options and SARs granted during the years ended December 31, 2017, 2016 2015 $2.95, $3.97 $3.80 2017, 2016 2015 Year ended December 31, 2017 2016 2015 Volatility 37.47 % 46.02 % 49.04 % Risk-free interest rate 2.23 % 2.29 % 1.96 % Dividend yield 0 % 0 % 0 % Pre-vest cancellation rate *) 4.06 % 1.87 % 3.95 % Post-vest cancellation rate **) 3.45 % 3.44 % 3.86 % Suboptimal exercise factor ***) 1.31 1.69 1.46 Expected life (in years) 4.22 5.50 4.43 *) The pre-vest cancellation rate was calculated on an annual basis and is presented here on an annual basis. **) The post-vest cancellation rate was calculated on a monthly basis and is presented here on an annual basis. ***) The ratio of the stock price to strike price at the time of exercise of the option. The computation of volatility uses a combination of historical volatility and implied volatility derived from the Company ’s exchange traded options with similar characteristics. The risk-free interest rate assumption is based on U.S. treasury bill interest rates appropriate for the term of the Company ’s employee equity-based awards. The dividend yield assumption is based on the Company ’s historical and expectation of future dividend payouts and may The expected term of employee equity-based awards represents the weighted-average period the awards are expected to remain outstanding and is a derived output of the binomial model. The expected life of employee equity-based awards 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 award’s remaining contractual life and the extent to which the award is in-the-money (i.e., the average stock price during the period is above the strike price of the award). The binomial model estimates the probability of exercise as a function of these two As equity-based compensation expense recognized in the consolidated statement of operations is based on awards ultimately expected to vest, it should be reduced for estimated forfeitures. The forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Pre and post-vesting forfeitures were estimated based on historical experience. The Company selected the Monte Carlo model as the most appropriate model for determining the fair value of its ESPP plan . The fair value for rights to purchase shares of common stock under the Company ’s ESPP was estimated on each enrollment date using the risk free interest rate and the share price for those dates. In addition, the expected life was assumed to be between six 24 27.42% 34.92% 2017, 29.60% 41.21% 2016 22.83% 34.53% 2015. The Company ’s aggregate equity compensation expenses for the years ended December 31, 2017, 2016 2015 $5,861, $5,088 $5,092, A summary of the status of the Company ’s non-vested stock options, SARs and RSUs as of December 31, 2017, December 31, 2017, Non-vested Units Weighted average grant date fair value (In thousands) $ Non-vested at December 31, 2016 1,019 7.69 Granted 744 7.22 Vested (539 ) 7.46 Forfeited (46 ) 7.69 Non-vested at December 31, 2017 1,179 7.50 As of December 31, 2017, 1,721,000 As of December 31, 2017, $3,782 2017 2021. |
Note 13 - Commitments and Conti
Note 13 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 1 3: COMMITMENTS AND CONTINGENCIES Commitments a. The Company and its subsidiaries lease certain equipment and facilities under non-cancelable operating leases. The Company has significant leased facilities in Herzliya Pituach, Israel. The lease agreement for the Israeli facilities is effective until December 2018. January 2019 December 2028. January 2018. 2018, 2018, 2018, 2020, 2019, 2020 2018, 2018 2020. At December 31, 2017, Year ended December 31, 2018 $ 2,961 2019 1,524 2020 1,298 2021- and thereafter 9,185 $ 14,968 Facilities rental expenses amounted to $2,308, $2,362 $2,252 December 31, 2017, 2016 2015, b. The Company participated in programs (most of which are royalty bearing grants) sponsored by the Israeli government for the support of research and development activities. Through December 31, 2017, 5% 100% no c. As of December 31, 2017, $9,388. may not third not may may not six three third Litigation a. The Company is involved in certain claims arising in the normal course of business. However, the Company believes that the ultimate resolution of these matters will not b. From time to time, the Company may may may third |
Note 14 - Taxes on Income
Note 14 - Taxes on Income | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 1 4: TAXES ON INCOME On December 22, 2017, 35% 21%, one 15.5% not not a. The provision for income taxes is as follows: Year ended December 31, 2017 2016 2015 Domestic taxes Federal taxes: Current $ - $ - $ - State taxes: Current 2 3 2 Foreign taxes: Current $ 368 $ 264 $ 1,081 Deferred (462 ) 327 (756 ) (94 ) 591 325 Taxes on income (tax benefit) $ (92 ) $ 594 $ 327 b. Income (loss) before taxes is comprised as follows: Year ended December 31, 2017 2016 2015 Domestic $ (4,128 ) $ (2,188 ) $ (909 ) Foreign 1,033 7,595 2,798 $ (3,095 ) $ 5,407 $ 1,889 c. A reconciliation between the Company’s effective tax rate assuming all income is taxed at statutory tax rate applicable to the income of the Company and the U.S. statutory rate is as follows: Year ended December 31, 2017 2016 2015 Income (loss) before taxes on income $ (3,095 ) $ 5,407 $ 1,889 Theoretical tax expenses ( tax benefit) at U.S. statutory tax rate (35%) $ (1,083 ) $ 1,892 $ 661 State taxes, net of federal benefit 2 3 2 Foreign income taxed at rates other than the U.S. rate (including deferred taxes that were not provided, valuation allowance and current adjustment and interest on uncertain tax position liability) (808 ) (2,580 ) (2,209 ) Nondeductible equity-based compensation expenses 816 695 1,782 Valuation allowance in U.S. 984 583 91 Other (2 ) 1 - $ (92 ) $ 594 $ 327 d. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. December 31, 2017 2016 Reserves and accruals $ 1,202 $ 1,322 Equity-based compensation 922 846 Intangible assets 320 688 Carryforward tax losses 4,368 5,770 Other 229 - Total deferred tax assets 7,041 8,626 Valuation allowance (5,998 ) (7,708 ) Total deferred tax assets $ 1,043 $ 918 Deferred tax liabilities, net Acquired intangible assets 565 987 Acquired carryforward tax losses (141 ) (200 ) Total deferred tax liabilities, net $ 424 $ 787 Management believes that part of the deferred tax assets will not $5,998 $7,708 December 31, 2017 2016, As of December 31, 2017, $129.2 million. Out of total cash, cash equivalents and marketable securities of $129.2 $118.1 not not may e. Uncertain tax positions: A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows: 2017 2016 Gross unrecognized tax benefits at January 1 $ 1,023 $ 1,711 Increases (decreases) in tax positions for previous years (1) (268 ) (918 ) Increases in tax positions for current year 306 396 Increase in tax positions for previous years 131 - Change in interest and linkage related to tax positions 81 (166 ) Gross unrecognized tax benefits at December 31 $ 1,273 $ 1,023 ( 1 The decrease in 2016 of an examination that was conducted by the German tax authorities of the Company’s German tax returns for 2007 2009 The total amount of net unrecognized tax benefits that, if recognized, would affect the effective tax rate was $1,273 $1,023 December 31, 2017 2016, December 31, 2017 2016, $68 $46, The Company and certain of its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The last examination conducted by U.S. tax authorities was with respect to the Company ’s U.S. federal income tax returns for 2014. 2014. The last examination conducted by the Israeli tax authorities was with respect to the Company ’s Israeli income tax returns for the years between 2006 2012. With respect to DSP Israel, the tax returns up to and including 2012 not With respect to the Company ’s Swiss subsidiary, which is undergoing a liquidation, the statute of limitations related to its tax returns is opened for all tax years since its inception . A change in the amount of unrecognized tax benefit is reasonably possible in the next 12 ’s German tax returns for 2010–2013. f. Tax benefits under the Law for the Encouragement of Capital Investments, 1959 The Investment Law provides certain Israeli tax benefits for eligible capital investments in a production facility, as discussed in greater detail below. On April 1, 2005, ’s investment programs that obtained approval for Approved Enterprise status prior to enactment of the Amendment will continue to be subject to the old provisions of the Investment Law. The Amendment enacted major changes in the manner in which tax benefits are awarded under the Investment Law so that companies are no ’s prior approval to qualify for tax benefits. An enterprise that receives tax benefits without the initial approval from the Investment Center is called a “Beneficiary Enterprise,” rather than the previous terminology of “Approved Enterprise” used under the Investment Law. The period of tax benefits for a new Beneficiary Enterprise commences in the “Year of Commencement,” which is the later of: ( 1 first 2 In addition, under the Amendment, tax benefits are available for production facilities, which generally are required to derive more than 25% DSP Israel chose the “alternative benefits” track for all of its investment programs. Accordingly, DSP Israel ’s income from an “Approved Enterprise” and “Beneficiary Enterprise” is tax-exempt for a period of two four 10% 25% six eight DSP Israel ’s first, second, third, fourth, fifth sixth 1994, 1996, 1998, 1999, 2002 2004, two four first 10% 25% six eight 2017, no DSP Israel ’s seventh eighth 2006 2009, two 10% 25% eight first 2017, seventh no Since DSP Israel is operating under more than one During 2006, fifth sixth 2008, third fourth The Company ’s investment programs that generate taxable income are currently subject to an average tax rate of up to approximately 10% may 10% Amendment to the Law for the Encouragement of Capital Investments, 1959 73 In December 2016, 2017 2018 2016 73 “2016 2016 7.5% 9% January 1, 2017 not 16%,subject The 2016 2016 Technological preferred enterprise - an enterprise for which total consolidated revenues of its parent company and all subsidiaries are less than NIS 10 $2.6 12% Any dividends distributed to "foreign companies" as defined in the Law, deriving from income from the technological enterprises, will be subject to a tax rate of 4%. The Company evaluated the effect of the adoption of the 2016 not 2016 2016 2016 no ’s best interests or until the expiration of its current investment programs. The Company may The Company is required to comply with the 2016 ’s current investment programs and for any new qualified investment program after a transitional period. Once the Company is required to comply with the 2016 may As of December 31, 201 7, Should DSP Israel fail to meet such conditions in the future, it could be subject to corporate tax in Israel at the standard tax rate ( 24% 2017 As of December 31, 2017, $41,069 ’s “Approved Enterprises” and “Beneficiary Enterprises.” The Company has determined that such tax-exempt income will not no If DSP Israel ’s retained tax-exempt income is distributed, the income would be taxed at the applicable corporate tax rate (currently 10% not $4,563 December 31, 2017. DSP Israel ’s income from sources other than the “Approved Enterprises” and “Beneficiary Enterprises” during the benefit period will be subject to tax at the effective standard corporate tax rate in Israel ( 24% 2017 g. The Law for Encouragement of Industry (Taxation), 1969: DSP Israel has the status of an “industrial company”, as defined by this law. According to this status and by virtue of regulations published thereunder, DSP Israel is entitled to claim a deduction of accelerated depreciation on equipment used in industrial activities, as determined in the regulations issued under the Inflationary Law. The Company is also entitled to amortize a patent or rights to use a patent or intellectual property that are used in the enterprise's development or advancement, to deduct issuance expenses for shares listed for trading, and to file consolidated financial statements under certain conditions. h. Israeli tax rates: The rate of the Israeli corporate tax is as follows: 2015 – 26.5% 2016 25% 2017 24%. 25% January 1, 2003. In December 2016, 2016 24% 25% January 1, 2017 23% January 1, 2018. j. The Company has accumulated losses for federal and state tax purposes as of December 31, 2017 $17,719 $2,650, may thirteen twenty December 31, 2017, $12,196 may |
Note 15 - Basic and Diluted Los
Note 15 - Basic and Diluted Loss Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 1 5: The following table sets forth the computation of basic and diluted net loss per share: Year ended December 31, 201 7 201 6 201 5 Numerator: Net income (loss) $ (3,003 ) $ 4,813 $ 1,562 Denominator: Weighted average number of shares of common stock outstanding during the year used to compute basic net earnings (loss) per share (in thousands) 22,229 21,800 21,924 Incremental shares attributable to exercise of outstanding options, SARs and RSUs (assuming proceeds would be used to purchase treasury stock) (in thousands) - 1,087 1,416 Weighted average number of shares of common stock used to compute diluted net earnings (loss) per share (in thousands) 22,229 22,887 23,340 Basic net earnings (loss) per share $ (0.14 ) $ 0.22 $ 0.07 Diluted net earnings (loss) per share $ (0.14 ) $ 0.21 $ 0.07 |
Note 16 - Segment Information
Note 16 - Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 16: 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 SmartVoice. 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, (i) revenues from cordless telephony products exceeded 10% 54%, 57% 72% 2017, 2016 2015, 9%, 8% 10% 2017, 2016 2015, 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 28%, 19% 15% 2017, 2016 2015, No 10% 2017, 2016 2015. SmartVoice (formerly called “Mobile”) - Products for the SmartVoice market that provides voice activation and recognition, 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 from the Company’s mobile products represented 4%, 12%, 0% 2017, 2016 2015. No 10% 2017, 2016 2015. Segment data: The Company derives the results of its business segments directly from its internal management reporting system and by using certain allocation methods. The accounting policies the Company uses to derive business segment results are substantially the same as those the Company uses for consolidation of its financial statements. The CODM measures the performance of each business segment based on several metrics, including earnings from operations. The CODM uses these results, in part, to evaluate the performance of, and to assign resources to, each of the business segments. The Company does not The Company does not no December 31, 2017, 2016 2015: Year ended December 31 Revenues Income (loss) from operations 201 7 2016 2015 2017 2016 2015 Home $ 85,021 $ 95,388 $ 121,714 $ 16,256 $ 17,715 $ 24,815 Office $ 34,879 $ 26,590 $ 22,216 $ 9,105 $ (2,961 ) $ (4,861 ) SmartVoice $ 4,853 $ 15,891 $ 341 $ (20,798 ) $ (5,190 ) $ (10,308 ) Total $ 124,753 $ 137,869 $ 144,271 $ 4,563 $ 9,564 $ 9,646 The reconciliation of segment operating results information to the Company ’s consolidated financial information was as follows: Year ended December 31, 201 7 2016 2015 Income from operations $ 4,563 $ 9,564 $ 9,646 Unallocated corporate, general and administrative expenses* (1,766 ) (1,388 ) (2,156 ) Other income - 2,549 - Equity-based compensation expenses (5,861 ) (5,088 ) (5,092 ) Intangible assets amortization expenses (1,700 ) (1,457 ) (1,284 ) Write –off of expired option related to investment in other company - - (400 ) Financial income, net 1,669 1,227 1,175 Total consolidated income (loss) before taxes $ (3,095 ) $ 5,407 $ 1,889 *Includes mainly legal, accounting, board of directors and investors relation expenses. Major customers and geographic information The following is a summary of operations within geographic areas based on customer locations: Year ended December 31, 201 7 2016 2015 Revenue distribution Hong-Kong $ 46,119 $ 56,768 $ 72,608 Japan 16,567 18,440 26,114 Europe 9,882 9,703 8,464 United States 4,927 4,696 3,944 China 16,096 10,244 10,359 Taiwan 22,442 16,428 16,902 South Korea 4,190 17,503 1,913 Other 4,530 4,087 3,967 $ 124,753 $ 137,869 $ 144,271 For a summary of revenues from major customers, please see Note 1. ’ locations: December 31, 2017 2016 Long-lived assets Europe $ 144 $ 216 Israel 2,017 2,652 Other 1,023 1,262 $ 3,184 $ 4,130 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | Schedule II DSP GROUP, INC. VALUATION AND QUALIFYING ACCOUNTS (in thousands) Description Balance at Beginning of Period Charged to (deducted from) Costs and Expenses Balance at End of Period Year ended December 31, 2015: Allowance for doubtful accounts Sales returns reserve - - - Year ended December 31, 2016: Allowance for doubtful accounts Sales returns reserve - - - Year ended December 31, 2017: Allowance for doubtful accounts Sales returns reserve - - - |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | Use of estimates: The preparation of 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 that these estimates, judgments and assumptions are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Basis of Accounting, Policy [Policy Text Block] | Financial statements in U.S. dollars: Most of the Company ’s revenues are generated in U.S. dollars. In addition, a substantial portion of the Company’s costs are incurred in U.S. dollars. The Company’s management believes that the U.S. dollar is the currency of the primary economic environment in which the Company operates. Thus, the functional and reporting currency of the Company is the U.S. dollar. Monetary accounts maintained in currencies other than the U.S. dollar are remeasured into dollars in accordance with ASC No. 830 30, The financial statements of the Company ’s subsidiary – DSP Group Technologies GmbH whose functional currency is in Euro, has been translated into dollars. All amounts on the balance sheets have been translated into the dollar using the exchange rates in effect on the relevant balance sheet dates. All amounts in the consolidated statements of operations have been translated into the dollar using the average exchange rate for the relevant periods. The resulting translation adjustments are reported as a component of accumulated other comprehensive income (loss) in changes in stockholders’ equity. Accumulated other comprehensive loss related to foreign currency translation adjustments, net amounted to $256 $305 December 31, 2017 2016, |
Consolidation, Policy [Policy Text Block] | Principles of consolidation: The consolidated financial statements include the accounts of the Company. Intercompany transactions and balances have been eliminated in consolidation. |
Cash and Cash Equivalents, Unrestricted Cash and Cash Equivalents, Policy [Policy Text Block] | Cash equivalents: Cash equivalents are short-term highly liquid investments, which are readily convertible to cash with original maturity of three |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted deposits: Restricted deposits include deposits which are used as security for lease agreements. |
Deposit Contracts, Policy [Policy Text Block] | Short-term deposits: Bank deposits with original maturities of more than three one |
Marketable Securities, Available-for-sale Securities, Policy [Policy Text Block] | Marketable securities: The Company accounts for investments in debt securities in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 320 10, ’s investments in debt securities at the time of purchase and reevaluates such determinations at each balance sheet date. The Company classified all of its investments in marketable securities as available for sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses, reported in accumulated other comprehensive income (loss) using the specific identification method. The amortized cost of marketable securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization is included in financial income, net. Interest and dividends on securities are included in financial income, net. The marketable securities are periodically reviewed for impairment. If management concludes that any of these investments are 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 not During the years ended December 31, 2017, 2016 2015, not 3 |
Fair Value Measurement, Policy [Policy Text Block] | Fair value of financial instruments: Cash and cash equivalents, restricted deposits, short-term deposits, trade receivables, trade payables and accrued liabilities approximate fair value due to short -term maturities of these instruments. Marketable securities and derivative instruments are carried at fair value. See Note 3 Fair value is an exit price, representing the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three Level 1 Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Include other inputs that are directly or indirectly observable in the marketplace. Level 3 Unobservable inputs which are supported by little or no The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. |
Inventory, Policy [Policy Text Block] | Inventories: Inventories are stated at the lower of cost and net realizable value. Inventory reserves are provided to cover risks arising from slow-moving items or technological obsolescence. The Company and its subsidiaries periodically evaluate the quantities on hand relative to historical, current and projected sales volume. Based on this evaluation, an impairment charge is recorded when required to write-down inventory to its market value. Cost is determined as follows: Work in progress and finished products- on the basis of raw materials and manufacturing costs on an average basis. The Company regularly evaluates the ability to realize the value of inventory based on a combination of factors, including the following: historical usage rates and forecasted sales according to outstanding backlogs. Purchasing requirements and alternative usage are explored within these processes to mitigate inventory exposure. When recorded, the reserves are intended to reduce the carrying value of inventory to its net realizable value. Inventory of $9,422 , $9,748 $11,453 December 31, 2017, 2016 2015, $468, $571 $670 may |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and equipment, net: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, at the following annual rates: % Mainly % Computers and equipment 20 - 33 33 Office furniture and equipment 7 - 15 15 Leasehold improvements see below Leasehold improvements are depreciated on a straight-line basis over the shorter of the lease term (including the extension option held by the Company and intended to be exercised) and the expected life of the improvement. Property and equipment of the Company are reviewed for impairment w henever events or changes in circumstances indicate that the carrying amount of an asset may not During the years ended December 31, 2017, 2016 2015, no The Company accounts for costs of computer software developed or obtained for internal use in accordance with FASB ASC No. 350 40, 350 40 2017 , 2016 2015, $0, $0 $1,086, three |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill and other intangible assets: The goodwill and certain other purchased intangible assets have been recorded as a result of the BoneTone acquisition and the acquisition of a private company in Asia. Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill is not ASC 350 two first second second ’s goodwill to the implied fair value of that goodwill. An impairment loss is recognized in an amount equal to the excess. ASC 350 first two not not Alternatively, ASC 350 first The Company performs an annual impairment test on December 31 The Company ’s reporting units are consistent with the reportable segments identified in Note 16. Fair value is determined using discounted cash flows, market multiples and market capitalization. Significant estimates used in the methodologies include estimates of future cash-flows, future short-term and long-term growth rates, weighted average cost of capital and market multiples for the reporting unit. For the fiscal year ended December 31, 2017 , 2016 2015, no Intangible assets that are not lives, which range from 5 6 may not If such asset is considered to be impaired, the impairment to be recognized is measured as the difference between the carrying amount of the assets and the fair value of the impaired asset. During the fiscal year ended December 31, 2017, 2016 2015, no |
Severance Pay [Policy Text Block] | Severance pay: DSP Group Ltd., the Company ’s Israeli subsidiary (“DSP Israel”), has a liability for severance pay pursuant to Israeli law, based on the most recent monthly salary of its employees multiplied by the number of years of employment as of the balance sheet date for such employees. DSP Israel’s liability is fully provided for by monthly accrual and deposits with severance pay funds and insurance policies. The deposited funds include profits accumulated up to the balance sheet date. The deposited funds may ’s Severance Pay Law or labor agreements. The Company ’s Korean subsidiary has a statutory liability for severance pay pursuant to Korean law based on the most recent monthly salary of its employees multiplied by the number of years of employment as of the balance sheet date for such employees. This Korean subsidiary’s liability is fully accrued. Severance expenses for the years ended December 31, 2017 , 2016 2015, $1,666, $1,582 $1,498, |
Revenue Recognition, Policy [Policy Text Block] | Revenue recognition: The Company generates its revenues from sales of products. The Company sells its products through a direct sales force and through a network of distributors. Product sales are recognized when persuasive evidence of an agreement exists, delivery of the product has occurred, the fee is fixed or determinable, collectability is reasonably assured, and no Persuasive evidence of an arrangement exists - The Company’s sales arrangements with customers are pursuant to written documentation, either a written contract or purchase order. The actual documentation used is dependent on the business practice with each customer. Therefore, the Company determines that persuasive evidence of an arrangement exists with respect to a customer when it has a written contract, or a written purchase order from the customer. Delivery has occurred - Each written documentation relating to a sale arrangement that is agreed upon with the customer specifically sets forth when risk and title are being transferred (based on the agreed International Commercial terms, or “INCOTERMS”). Therefore, the Company determines that risk and title are transferred to the customer when the terms of the written documentation based on the applicable INCOTERMS are satisfied and thus delivery of its products has occurred. Separately, the Company has consignment inventory which is held for specific customers at the customers ’ premises. It recognizes revenue on the consigned inventory when the customer consumes the products from the warehouse, as that is when per the consignment inventory agreements, risk and title passes to the customer and the products are deemed delivered to the customer. Price is fixed or determinable - Pursuant to the customer agreements, the Company does not no four Collectability of the related receivable is reasonably assured - The Company determines whether collectability is reasonably assured on a customer-by-customer basis pursuant to its credit review policy. The Company typically sells to customers with whom it has a long-term business relationship and a history of successful collection. A significant number of the Company’s customers are also large original equipment manufacturers with substantial financial resources. For a new customer, or when an existing customer substantially expands its commitments, the Company evaluates the customer’s financial position, the number of years the customer has been in business, the history of collection with the customer and the customer’s ability to pay and typically assigns a credit limit based on that review. The Company increases the credit limit only after it has established a successful collection history with the customer. If the Company determines at any time that collectability is not With respect to product sales through the Company ’s distributors, such product revenues are deferred until the distributors resell the Company’s products to the end-customers (“sell through”) and recognized based upon receipt of reports from the distributors, provided all other revenue recognition criteria as discussed above are met. The Company views its distributor arrangements as that of consignment because, although the actual sales are conducted through the distributors and legally title for the products passes to the distributors upon delivery to the distributors, in substance inventory is simply being transferred to another location for sale to the end-user customers as the Company ’s primary business relationships and responsibilities are directly with the end-user customers. Because the Company views its arrangements with its distributors as that of consignment relationships, delivery of goods is not |
Standard Product Warranty, Policy [Policy Text Block] | Warranty: The Company warrants its products against errors, defects and bugs for generally one may December 31, 2017 , 2016 2015. |
Research and Development Expense, Policy [Policy Text Block] | Research and development costs, net: Research and development costs, net of grants received, are charged to the consolidated statement of operations as incurred. |
Government Grants [Policy Text Block] | 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 in 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 $1,528, $2,687 $2,738 December 31, 2017 2016 2015, The Company ’s Israeli subsidiary is obligated to pay royalties amounting to 5% may not may not third not may may not six three third |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Equity-based compensation: At December 31, 2017 , the Company had two may two no may one 12. The Company accounts for equity-based compensation in accordance with FASB ASC No. 718, No. 718” No. 718 The Company recognizes compensation expenses for the value of its awards granted based on the accelerated attribution method, rather than a straight-line method over the requisite service period of each of the awards, net of estimated forfeitures. FASB ASC No. 718 The Company selected the lattice option pricing model as the most appropriate fair value method for its equity-based awards and values options and stock appreciation rights (SARs) based on the market value of the underlying shares on the date of grant. The option-pricing model requires a number of assumptions, of which the most significant are the expected stock price volatility and the expected term of the equity-based award. Expected volatility is calculated based upon actual historical stock price movements. The expected term of the equity-based award granted is based upon historical experience and represents the period of time that the award granted is expected to be outstanding. The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent term. The Company has historically not no With respect to the Company’s employee stock purchase plan, the Company selected the Monte Carlo pricing model as the most appropriate fair value method. A majority of the Company’s equity awards until 2012 2013, . The fair value of each restricted stock unit (“RSU”) is based on the market value of the underlying share on the date of grant. |
Earnings Per Share, Policy [Policy Text Block] | Basic and diluted income (loss) per share: Basic net income (loss) per share is computed based on the weighted average number of shares of common stock outstanding during the year. Diluted net income (loss) per share further includes the dilutive effect of stock options, SARs and RSUs outstanding during the year, all in accordance with FASB ASC No. 260, The total weighted average number of shares related to the outstanding stock options, SARs and RSUs excluded from the calculation of diluted net income per share due to their anti-dilutive effect was 1,378,282, 334,833 403,632 December 31, 2017, 2016 2015, |
Income Tax, Policy [Policy Text Block] | Income taxes: The Company accounts for income taxes in accordance with FASB ASC No. 740, Deferred tax liabilities and assets are classified as non-current based on the adopting of Accounting Standards Update (“ASU”) 2015 17, 2015 17, 2015 17 for all period presented. The Company accounts for uncertain tax positions in accordance with ASC 740, two measuring uncertain tax positions. The first not second 50% The Company includes interest related to tax issues as part of income tax expense in its consolidated financial statements. The Company records any applicable penalties related to tax issues within the income tax provision. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, restricted deposits, short-term deposits, trade receivables and marketable securities. The majority of cash and cash equivalents and short-term deposits of the Company are invested in dollar deposits with major U.S., European and Israeli banks. Deposits in U.S. banks may not these deposits may The Company ’s marketable securities consist of investment-grade corporate bonds and U.S. government-sponsored enterprise (“GSE”) securities. As of December 31, 2017, $98,081, $96,872, $1,209. A significant portion of the products of the Company is sold to original equipment manufacturers of consumer electronics products. The customers of the Company are located primarily in Japan, Hong Kong, Taiwan, China, Korea, Europe and the United States. The Company performs ongoing credit evaluations of their customers. A specific allowance for doubtful accounts is determined, based on management’s estimates and historical experience. Under certain circumstances, the Company may December 31, 2017 2016, no The Company has no |
Derivatives, Policy [Policy Text Block] | Derivative instruments: The Company accounts for derivatives and hedging based on FASB ASC No.815, ASC No. 815 requires companies to recognize all of their derivative instruments as either assets or liabilities on the balance sheet at fair value. For derivative instruments that are designated and qualify as a cash flows hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Any gain or loss on a derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item is recognized in current earnings during the period of change. To protect against the increase in value of forecasted foreign currency cash flows resulting from salary and rent payments in New Israeli Shekel (“NIS”) during the year, the Company instituted a foreign currency cash flow hedging program. The Company hedges portions of the anticipated payroll and rent of its Israeli facilities denominated in NIS for a period of one 12 The fair value of the outstanding derivative instruments at December 31, 2017 2016 Fair value of derivative instruments Derivative assets December 31, (liabilities) designated as hedging Balance sheet location 2017 2016 Foreign exchange forward contracts and put and call options Other accounts receivable and prepaid expenses (Accrued expenses and other accounts payable) $ - $ 9 Total $ - $ 9 The effect of derivative instruments in cash flow hedging transactions on income and other comprehensive income (“OCI”) for the years ended December 31, 2017, 2016 2015 Gains (losses) on derivatives recognized in OCI Year ended December 31, 2017 2016 2015 Foreign exchange forward contracts and put and call options $ 163 $ 45 $ (38 ) Gains (losses) on derivatives reclassified from OCI to income Year ended December 31, Location 2017 2016 2015 Foreign exchange forward contracts and put and call options Operating expenses $ 172 $ 1 $ (621 ) As of December 31, 2017, no As of December 31, 2016, $6,000. As of December 31, 2015, $12,850 $1,800, |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive income: The Company accounts for comprehensive income in accordance with FASB ASC No. 220, ’ equity during the period except those resulting from investments by, or distributions to, stockholders. The Company determined that its items of other comprehensive income relate to gains and losses on hedging derivative instruments, unrealized gains and losses on available-for-sale securities, unrealized gains and losses from pension and unrealized gain and losses from foreign currency translation adjustments. The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for 201 7: 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 January 1, 2017 $ (1,101 ) $ 9 $ (455 ) $ (305 ) $ (1,852 ) Other comprehensive income (loss) before reclassifications (158 ) 163 24 49 78 Losses (gains) reclassified from accumulated other comprehensive income (loss) 50 (172 ) 22 - (100 ) Net current period other comprehensive income (loss) (108 ) (9 ) 46 49 (22 ) December 31, 2017 $ (1,209 ) $ - $ (409 ) $ (256 ) $ (1,874 ) The following table provides details about reclassifications out of accumulated other comprehensive income (loss) for 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 (Loss) Losses on available-for-sale marketable securities $ 50 Financial income, net - Provision for income taxes 50 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 14 Research and development 8 Sales and marketing 22 Total, before income taxes - Provision for income taxes 22 Total, net of income taxes Total reclassificati ons for the period (100 ) Total, net of income taxes |
Treasury Stock [Policy Text Block] | Treasury stock at cost The Company repurchases its common stock from time to time on the open market or in other transactions and holds such shares as treasury stock. The Company presents the cost to repurchase treasury stock as a reduction of stockholders ’ equity. From time to time, the Company reissues treasury stock under its employee stock purchase plan and equity incentive plans, upon purchases or exercises of equity awards under the plans. When treasury stock is reissued, the Company accounts for the re-issuance in accordance with ASC No. 505 30, the re-issuance price, the Company credits the difference to additional paid-in capital. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Guidance: In May 2014, five may January 1, 2018 $94, $21 $115 January 1, 2018. Other than specified above, the Company does not In February 2016, 2016 02 842 not twelve twelve 842 840. January 1, 2019, January 1, 2019 In August 2016, No. 2016 15 December 15, 2017 no In March 2016, No. 2016 09, January 1, 2017. not In January 2017, No. 2017 04, 2 not zero 2 December 15, 2019. January 1, 2017. not In June 2016, 2016 13 December 15, 2019 December 15, 2018. first not In August 2017, 2017 12, Derivatives and Hedging (Topic 815 January 1, 2019. not . In March 2017, 2017 07, Compensation—Retirement Benefits (Topic 715 January 1, 2018. not . |
Supplemental Cash Flow Inform28
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Working capital, excluding cash and cash equivalents $ (386 ) Property and equipment 4 Distribution agreement 2,086 Deferred tax liability (377 ) Goodwill 967 2,294 The acquisition date fair value of the Company's previously held equity interest in the private company in Asia (1,800 ) $ 494 |
Note 1 - General (Tables)
Note 1 - General (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Year ended December 31, Major Customers/ Distributors 2017 2016 2015 VTech Holdings Ltd. 27% 29% 31% Shenzhen Guo Wei Electronics Ltd. * *% 12% Tomen Electronics Corporation (“Tomen Electronics”) ¹ ² 12% 12% 16% Ascend Technology Inc. (“Ascend Technology”) ¹ ³ 23% 16% 15% Samsung Electronics Ltd. * 12% - |
Note 2 - Significant Accounti30
Note 2 - Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Useful Life of Property and Equipment [Table Text Block] | % Mainly % Computers and equipment 20 - 33 33 Office furniture and equipment 7 - 15 15 Leasehold improvements see below |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | Fair value of derivative instruments Derivative assets December 31, (liabilities) designated as hedging Balance sheet location 2017 2016 Foreign exchange forward contracts and put and call options Other accounts receivable and prepaid expenses (Accrued expenses and other accounts payable) $ - $ 9 Total $ - $ 9 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | Gains (losses) on derivatives recognized in OCI Year ended December 31, 2017 2016 2015 Foreign exchange forward contracts and put and call options $ 163 $ 45 $ (38 ) |
Derivative Instruments, Gain (Loss) [Table Text Block] | Gains (losses) on derivatives reclassified from OCI to income Year ended December 31, Location 2017 2016 2015 Foreign exchange forward contracts and put and call options Operating expenses $ 172 $ 1 $ (621 ) |
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 January 1, 2017 $ (1,101 ) $ 9 $ (455 ) $ (305 ) $ (1,852 ) Other comprehensive income (loss) before reclassifications (158 ) 163 24 49 78 Losses (gains) reclassified from accumulated other comprehensive income (loss) 50 (172 ) 22 - (100 ) Net current period other comprehensive income (loss) (108 ) (9 ) 46 49 (22 ) December 31, 2017 $ (1,209 ) $ - $ (409 ) $ (256 ) $ (1,874 ) |
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 (Loss) Losses on available-for-sale marketable securities $ 50 Financial income, net - Provision for income taxes 50 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 14 Research and development 8 Sales and marketing 22 Total, before income taxes - Provision for income taxes 22 Total, net of income taxes Total reclassificati ons for the period (100 ) Total, net of income taxes |
Note 3 - Marketable Securitie31
Note 3 - Marketable Securities and Time Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Available-for-sale Securities [Table Text Block] | Amortized cost Unrealized gains (losses), net Fair value 201 7 2016 201 7 2016 201 7 2016 Short-term deposit $ 5,481 $ 7,610 $ - $ - $ 5,481 $ 7,610 Long -term deposit 5,013 - - - 5,013 - U.S. GSE securities 22,359 24,351 (315 ) (289 ) 22,044 24,062 Corporate obligations 75,722 76,264 (894 ) (813 ) 74,828 75,451 $ 108,575 $ 108,225 $ (1,209 ) $ (1,102 ) $ 107,366 $ 107,123 |
Investments Classified by Contractual Maturity Date [Table Text Block] | Amortized Unrealized gains (losses) Fair cost Gains Losses value Due in one year or less $ 19,239 $ 3 $ (26 ) $ 19,216 Due after one year to five years 78,842 10 (1,196 ) 77,656 $ 98,081 $ 13 $ (1,222 ) $ 96,872 Amortized Unrealized gains (losses) Fair cost Gains Losses value Due in one year or less $ 21,491 $ 6 $ (76 ) $ 21,421 Due after one year to six years 79,124 44 (1,076 ) 78,092 $ 100,615 $ 50 $ (1,152 ) $ 99,513 |
Note 4 - Other Accounts Recei32
Note 4 - Other Accounts Receivable and Prepaid Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Other Accounts Receivable [Table Text Block] | December 31, 201 7 2016 Prepaid expenses $ 1,612 $ 1,262 Tax and governmental receivables 1,019 606 Deposits 249 304 Others 287 159 $ 3,167 $ 2,331 |
Note 5 - Inventories (Tables)
Note 5 - Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | December 31, 201 7 2016 Work-in-progress $ 3,577 $ 5,784 Finished products 5,845 3,964 $ 9,422 $ 9,748 |
Note 6 - Property and Equipme34
Note 6 - Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | December 31, 201 7 2016 Cost: Computers and equipment $ 21,465 $ 20,636 Office furniture and equipment 1,429 1,537 Leasehold improvements 5,060 5,004 27,954 27,177 Less - accumulated depreciation 24,770 23,047 Depreciated cost $ 3,184 $ 4,130 |
Note 7 - Intangible Assets (Tab
Note 7 - Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Useful life December 31, (years) 201 7 2016 Cost: Technology (completion of the development of in-process R&D) 6 7,702 7,702 Distribution agreement 5 2,086 2,086 Non-competition agreement 3 519 519 10,307 10,307 Accumulated amortization: Technology (completion of the development of in-process R&D) 6,418 5,134 Distribution agreement 591 174 Non-competition agreement 519 519 7,528 5,827 Amortized cost $ 2,779 $ 4,480 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Year ending December 31, 201 8 $ 1,701 201 9 417 20 20 417 202 1 244 $ 2,779 |
Note 8 - Fair Value Measureme36
Note 8 - Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Balance as of Fair value measurements Description December 31, 201 7 Level 1 Level 2 Level 3 Assets Cash equivalents Money market mutual funds $ 2,998 $ 2,998 - - Short-term marketable securities and time deposits U.S. GSE securities $ 786 - $ 786 - Corporate debt securities $ 18,430 - $ 18,430 - Long-term marketable securities U.S. GSE securities $ 21,258 - $ 21,258 - Corporate debt securities $ 56,398 - $ 56,398 - Derivative liabilities $ - - $ - - 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 9 - Accrued Expenses and37
Note 9 - Accrued Expenses and Other Accounts Payable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | December 31, 2017 2016 Royalties and commission $ 1,369 $ 1,128 Accrued expenses 896 1,385 Accrued l egal, and accounting expenses 367 537 Governmental payables 141 421 Others 115 85 $ 2,888 $ 3,556 |
Note 10 - Accrued Pension Lia38
Note 10 - Accrued Pension Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan [Table Text Block] | December 31, 201 7 2016 Accumulated benefit obligation $ 871 $ 792 Change in benefit obligation Benefit obligation at beginning of year $ 803 $ 738 Service cost 4 4 Interest cost 14 17 Benefits paid from the plan (22 ) (55 ) Actuarial (gain) loss (22 ) 121 Exchange rates and others 106 (22 ) Benefit obligation at end of year $ 883 $ 803 Change in plan assets Fair value of plan assets at beginning of year - 54 Actual return on plan assets - 3 Benefits paid from the plan - (58 ) Exchange rates - 1 Fair value of plan assets at end of year $ - $ - |
Schedule of Assumptions Used [Table Text Block] | Year ended December 31, 201 7 2016 201 5 Weighted-average assumptions Discount rate 1.8 % 1.7 % 2.5 % Expected return on plan assets - 4.59 % 4.28 % Rate of compensation increase 2.5 % 2.5 % 2.5 % |
Schedule of Net Benefit Costs [Table Text Block] | December 31, 201 7 2016 201 5 Components of net periodic benefit cost Service cost $ 4 $ 4 $ 5 Interest cost 14 17 17 Expected return on plan assets - (3 ) (5 ) Amortization of net loss 22 15 20 Net periodic benefit cost $ 40 $ 33 $ 37 |
Schedule of Amounts Recognized in Balance Sheet [Table Text Block] | December 31, 201 7 2016 Net amounts recognized in the consolidated balance sheets as of December 31, 201 7 and 2016 consist of: Current liabilities $ - $ - Noncurrent liabilities 883 803 Net amounts recognized in the consolidated balance sheets $ 883 $ 803 Net amounts recognized in accumulated other comprehensive income as of December 31, 201 7 and 2016 consist of: Net actuarial loss $ (409 ) $ (454 ) Net amounts recognized in accumulated other comprehensive loss $ (409 ) $ (454 ) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | 201 8 Net actuarial loss and other $ 20 |
Schedule of Expected Benefit Payments [Table Text Block] | Year ending December 31, 2018 $ 9 2019 9 2020 10 2021 31 2022 27 2023-2027 112 $ 198 |
Note 11 - Financial Income, N39
Note 11 - Financial Income, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | Year ended December 31, 201 7 2016 2015 Foreign exchange gains $ 156 $ 14 $ 19 Interest income from marketable securities and deposits, net of amortization of premium on marketable securities 1,719 1,534 1,391 Realized gains on marketable securities 7 16 3 Financial income 1,882 1,564 1,413 Realized losses on marketable securities 57 33 27 Foreign exchange losses 48 132 58 Interest expenses 14 16 12 Other 94 156 141 Financial expense 213 337 238 Financial income, net $ 1,669 $ 1,227 $ 1,175 |
Note 12 - Stockholders' Equity
Note 12 - Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Equity Based Awards Available for Future Issuance [Table Text Block] | ESPP 715,000 Equity awards 697,000 Undesignated preferred stock 5,000,000 6,412,000 |
Share-based Compensation, Activity [Table Text Block] | Year ended December 31, 2017 201 6 2015 Amount of options/ SARs/RSUs Weighted average exercise price Aggregate intrinsic value (4) Amount of options/ SARs/RSUs Weighted average exercise price Aggregate intrinsic value (4) Amount of options/ SARs/RSUs Weighted average exercise price Aggregate intrinsic value (4) in thousands in thousands in thousands Options outstanding at beginning of year 2,152 $ 5.12 $ - 3,740 $ 6.22 $ - 4,644 $ 6.52 $ - Changes during the year: Options granted 78 $ 11.93 $ - 64 $ 9.44 $ - 179 $ 11.2 $ - SAR s granted 190 $ 10.40 $ - RSUs granted 476 $ - $ - 573 $ - $ - 405 $ - $ - Exercised (4) (818 ) $ 3.77 $ 6,699 (1,905 ) $ 5.55 $ 10,344 (1,403 ) $ 5.68 $ 7,302 Forfeited and cancelled (86 ) $ 9.85 $ - (320 ) $ 7.16 $ - (85 ) $ 12.21 $ - Options/SARs/RSUs outstanding at end of year (1,2,4) 1,992 $ 5.02 $ 14,931 2,152 $ 5.12 $ 17,347 3,740 $ 6.22 $ 13,364 Options/SARs/RSUs exercisable at end of year (1,3,4) 813 $ 8.20 $ 3,499 1,132 $ 8.27 $ 5,703 2,552 $ 7.47 $ 6,031 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Range of exercise price Outstanding Remaining contractual life (years) ( 1 ) Weighted average exercise price Exercisable Remaining contractual life (years) Weighted average exercise price $ thousands $ thousands $ 0 (RSUs) 872 - - - - - 5.21 - 7.26 231 3.03 5.89 231 3.03 5.89 7.49 - 9.71 458 3.68 8.50 451 3.68 8.50 10.15 - 15.79 431 5.95 11.01 131 5.03 11.22 1,992 4.42 5.02 813 3.72 8.20 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Year ended December 31, 2017 2016 2015 Volatility 37.47 % 46.02 % 49.04 % Risk-free interest rate 2.23 % 2.29 % 1.96 % Dividend yield 0 % 0 % 0 % Pre-vest cancellation rate *) 4.06 % 1.87 % 3.95 % Post-vest cancellation rate **) 3.45 % 3.44 % 3.86 % Suboptimal exercise factor ***) 1.31 1.69 1.46 Expected life (in years) 4.22 5.50 4.43 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Non-vested Units Weighted average grant date fair value (In thousands) $ Non-vested at December 31, 2016 1,019 7.69 Granted 744 7.22 Vested (539 ) 7.46 Forfeited (46 ) 7.69 Non-vested at December 31, 2017 1,179 7.50 |
Note 13 - Commitments and Con41
Note 13 - Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Year ended December 31, 2018 $ 2,961 2019 1,524 2020 1,298 2021- and thereafter 9,185 $ 14,968 |
Note 14 - Taxes on Income (Tabl
Note 14 - Taxes on Income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year ended December 31, 2017 2016 2015 Domestic taxes Federal taxes: Current $ - $ - $ - State taxes: Current 2 3 2 Foreign taxes: Current $ 368 $ 264 $ 1,081 Deferred (462 ) 327 (756 ) (94 ) 591 325 Taxes on income (tax benefit) $ (92 ) $ 594 $ 327 |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Year ended December 31, 2017 2016 2015 Domestic $ (4,128 ) $ (2,188 ) $ (909 ) Foreign 1,033 7,595 2,798 $ (3,095 ) $ 5,407 $ 1,889 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year ended December 31, 2017 2016 2015 Income (loss) before taxes on income $ (3,095 ) $ 5,407 $ 1,889 Theoretical tax expenses ( tax benefit) at U.S. statutory tax rate (35%) $ (1,083 ) $ 1,892 $ 661 State taxes, net of federal benefit 2 3 2 Foreign income taxed at rates other than the U.S. rate (including deferred taxes that were not provided, valuation allowance and current adjustment and interest on uncertain tax position liability) (808 ) (2,580 ) (2,209 ) Nondeductible equity-based compensation expenses 816 695 1,782 Valuation allowance in U.S. 984 583 91 Other (2 ) 1 - $ (92 ) $ 594 $ 327 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 2017 2016 Reserves and accruals $ 1,202 $ 1,322 Equity-based compensation 922 846 Intangible assets 320 688 Carryforward tax losses 4,368 5,770 Other 229 - Total deferred tax assets 7,041 8,626 Valuation allowance (5,998 ) (7,708 ) Total deferred tax assets $ 1,043 $ 918 Deferred tax liabilities, net Acquired intangible assets 565 987 Acquired carryforward tax losses (141 ) (200 ) Total deferred tax liabilities, net $ 424 $ 787 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | 2017 2016 Gross unrecognized tax benefits at January 1 $ 1,023 $ 1,711 Increases (decreases) in tax positions for previous years (1) (268 ) (918 ) Increases in tax positions for current year 306 396 Increase in tax positions for previous years 131 - Change in interest and linkage related to tax positions 81 (166 ) Gross unrecognized tax benefits at December 31 $ 1,273 $ 1,023 |
Note 15 - Basic and Diluted L43
Note 15 - Basic and Diluted Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year ended December 31, 201 7 201 6 201 5 Numerator: Net income (loss) $ (3,003 ) $ 4,813 $ 1,562 Denominator: Weighted average number of shares of common stock outstanding during the year used to compute basic net earnings (loss) per share (in thousands) 22,229 21,800 21,924 Incremental shares attributable to exercise of outstanding options, SARs and RSUs (assuming proceeds would be used to purchase treasury stock) (in thousands) - 1,087 1,416 Weighted average number of shares of common stock used to compute diluted net earnings (loss) per share (in thousands) 22,229 22,887 23,340 Basic net earnings (loss) per share $ (0.14 ) $ 0.22 $ 0.07 Diluted net earnings (loss) per share $ (0.14 ) $ 0.21 $ 0.07 |
Note 16 - Segment Information (
Note 16 - Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Year ended December 31 Revenues Income (loss) from operations 201 7 2016 2015 2017 2016 2015 Home $ 85,021 $ 95,388 $ 121,714 $ 16,256 $ 17,715 $ 24,815 Office $ 34,879 $ 26,590 $ 22,216 $ 9,105 $ (2,961 ) $ (4,861 ) SmartVoice $ 4,853 $ 15,891 $ 341 $ (20,798 ) $ (5,190 ) $ (10,308 ) Total $ 124,753 $ 137,869 $ 144,271 $ 4,563 $ 9,564 $ 9,646 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Year ended December 31, 201 7 2016 2015 Income from operations $ 4,563 $ 9,564 $ 9,646 Unallocated corporate, general and administrative expenses* (1,766 ) (1,388 ) (2,156 ) Other income - 2,549 - Equity-based compensation expenses (5,861 ) (5,088 ) (5,092 ) Intangible assets amortization expenses (1,700 ) (1,457 ) (1,284 ) Write –off of expired option related to investment in other company - - (400 ) Financial income, net 1,669 1,227 1,175 Total consolidated income (loss) before taxes $ (3,095 ) $ 5,407 $ 1,889 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Year ended December 31, 201 7 2016 2015 Revenue distribution Hong-Kong $ 46,119 $ 56,768 $ 72,608 Japan 16,567 18,440 26,114 Europe 9,882 9,703 8,464 United States 4,927 4,696 3,944 China 16,096 10,244 10,359 Taiwan 22,442 16,428 16,902 South Korea 4,190 17,503 1,913 Other 4,530 4,087 3,967 $ 124,753 $ 137,869 $ 144,271 |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | December 31, 2017 2016 Long-lived assets Europe $ 144 $ 216 Israel 2,017 2,652 Other 1,023 1,262 $ 3,184 $ 4,130 |
Schedule II - Valuation and Q45
Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Valuation Allowances and Reserves [Table Text Block] | Description Balance at Beginning of Period Charged to (deducted from) Costs and Expenses Balance at End of Period Year ended December 31, 2015: Allowance for doubtful accounts Sales returns reserve - - - Year ended December 31, 2016: Allowance for doubtful accounts Sales returns reserve - - - Year ended December 31, 2017: Allowance for doubtful accounts Sales returns reserve - - - |
Supplemental Cash Flow Inform46
Supplemental Cash Flow Information (Details Textual) - Private Company in Asia [Member] | Sep. 30, 2016 |
Business Acquisition, Percentage of Voting Interests Acquired | 86.00% |
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage | 100.00% |
Supplemental Cash Flow Inform47
Supplemental Cash Flow Information - Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Goodwill | $ 6,243 | $ 6,243 | |||
[1] | $ 494 | ||||
Private Company in Asia [Member] | |||||
Working capital, excluding cash and cash equivalents | $ (386) | ||||
Property and equipment | 4 | ||||
Distribution agreement | 2,086 | ||||
Deferred tax liability | (377) | ||||
Goodwill | 967 | ||||
2,294 | |||||
The acquisition date fair value of the Company's previously held equity interest in the private company in Asia | (1,800) | ||||
$ 494 | |||||
[1] | During the third quarter of 2016, the Company acquired the remaining 86% of the equity of a private company in Asia that it previously invested in, bringing its holding in such company to 100%. The net fair value of the assets acquired and the liabilities assumed, on the date of acquisition, was as follows: |
Note 1 - General (Details Textu
Note 1 - General (Details Textual) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Panasonic Communications Corporation [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | |||
Concentration Risk, Percentage | 10.00% | 10.00% | 13.00% |
Note 1 - General - Sales as Per
Note 1 - General - Sales as Percentage of the Company's Total Revenue by Major Customers (Details) - Customer Concentration Risk [Member] - Sales Revenue, Net [Member] | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
VTech Holdings Ltd [Member] | |||||
Major Customers/ Distributors | 27.00% | 29.00% | 31.00% | ||
Guo Wei Electronics [Member] | |||||
Major Customers/ Distributors | [1] | 12.00% | |||
Tomen Electronics Corporation [Member] | |||||
Major Customers/ Distributors | [2],[3] | 12.00% | 12.00% | 16.00% | |
Ascend Technology Inc [Member] | |||||
Major Customers/ Distributors | [2],[4] | 23.00% | 16.00% | 15.00% | |
Samsung Mobile [Member] | |||||
Major Customers/ Distributors | [1] | 12.00% | |||
[1] | Less than 10%. | ||||
[2] | Distributor | ||||
[3] | 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 10%, 10% and 13% of the Company's total revenues for 2017, 2016 and 2015, respectively. | ||||
[4] | 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 2017, 2016 and 2015. |
Note 2 - Significant Accounti50
Note 2 - Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 01, 2018 | |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ 256,000 | $ 305,000 | ||
Other than Temporary Impairment Losses, Investments | 0 | 0 | $ 0 | |
Inventory, Net | 9,422,000 | 9,748,000 | 11,453,000 | |
Inventory Valuation Reserves | 468,000 | 571,000 | 670,000 | |
Impairment of Long-Lived Assets Held-for-use | 0 | 0 | 0 | |
Capitalized Computer Software, Additions | 0 | 0 | 1,086,000 | |
Goodwill, Impairment Loss | 0 | 0 | 0 | |
Severance Costs | 1,666,000 | 1,582,000 | 1,498,000 | |
Financial Grants in Support of Research and Development | $ 1,528,000 | $ 2,687,000 | $ 2,738,000 | |
Financial Grants in Support of Research and Development, Royalty Obligation | 5.00% | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,378,282 | 334,833 | 403,632 | |
Available-for-sale Securities, Amortized Cost Basis | $ 108,575,000 | $ 108,225,000 | ||
Available-for-sale Securities | 107,366,000 | 107,123,000 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 1,222,000 | 1,152,000 | ||
Allowance for Doubtful Accounts Receivable | 0 | 0 | ||
Subsequent Event [Member] | Accounting Standards Update 2014-09 [Member] | Liability [Member] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 115,000 | |||
Subsequent Event [Member] | Accounting Standards Update 2014-09 [Member] | Assets [Member] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 21,000 | |||
Subsequent Event [Member] | Retained Earnings [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 94,000 | |||
Foreign Exchange Option [Member] | ||||
Price Risk Cash Flow Hedge Asset, at Fair Value | 0 | 6,000,000 | $ 12,850,000 | |
Foreign Exchange Forward Contracts and Put Options [Member] | ||||
Price Risk Cash Flow Hedge Asset, at Fair Value | $ 1,800,000 | |||
Debt Securities [Member] | ||||
Available-for-sale Securities, Amortized Cost Basis | 98,081,000 | 100,615,000 | ||
Available-for-sale Securities | 96,872,000 | $ 99,513,000 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | $ 1,209,000 | |||
Minimum [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 5 years | |||
Derivative Instrument Hedging Period | 1 year | |||
Maximum [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 6 years | |||
Derivative Instrument Hedging Period | 1 year | |||
Computer Software, Intangible Asset [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 3 years |
Note 2 - Significant Accounti51
Note 2 - Significant Accounting Policies - Property and Equipment Depreciation Rates (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Computer Equipment [Member] | Minimum [Member] | |
Computers and equipment | 20.00% |
Computer Equipment [Member] | Maximum [Member] | |
Computers and equipment | 33.00% |
Office Furniture and Equipment [Member] | Minimum [Member] | |
Computers and equipment | 7.00% |
Office Furniture and Equipment [Member] | Maximum [Member] | |
Computers and equipment | 15.00% |
Note 2 - Significant Accounti52
Note 2 - Significant Accounting Policies - Fair Value of the Outstanding Derivative Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair value of derivative instruments | $ 9 | |
Foreign Exchange Forward Contracts and Put Options [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Fair value of derivative instruments | $ 9 |
Note 2 - Significant Accounti53
Note 2 - Significant Accounting Policies - Effect of Derivative Instruments in Cash Flow Hedging Transactions on Income and Other Comprehensive Income Gains (Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Foreign Exchange Contract [Member] | |||
Foreign exchange forward contracts and put and call options | $ 163 | $ 45 | $ (38) |
Note 2 - Significant Accounti54
Note 2 - Significant Accounting Policies - Gains (Losses) on Derivatives Reclassified from OCI to Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Foreign exchange forward contracts and put and call options | $ 172 | $ 1 | $ (621) |
Note 2 - Significant Accounti55
Note 2 - Significant Accounting Policies - Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Balance | $ (1,852) | ||
Other comprehensive income (loss) before reclassifications | 78 | ||
Losses (gains) reclassified from accumulated other comprehensive income (loss) | (100) | ||
Other comprehensive income (loss) | (22) | $ (585) | $ 299 |
Balance | (1,874) | (1,852) | |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||
Balance | (1,101) | ||
Other comprehensive income (loss) before reclassifications | (158) | ||
Losses (gains) reclassified from accumulated other comprehensive income (loss) | 50 | ||
Other comprehensive income (loss) | (108) | ||
Balance | (1,209) | (1,101) | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||
Balance | 9 | ||
Other comprehensive income (loss) before reclassifications | 163 | ||
Losses (gains) reclassified from accumulated other comprehensive income (loss) | (172) | ||
Other comprehensive income (loss) | (9) | ||
Balance | 9 | ||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||
Balance | (455) | ||
Other comprehensive income (loss) before reclassifications | 24 | ||
Losses (gains) reclassified from accumulated other comprehensive income (loss) | 22 | ||
Other comprehensive income (loss) | 46 | ||
Balance | (409) | (455) | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Balance | (305) | ||
Other comprehensive income (loss) before reclassifications | 49 | ||
Losses (gains) reclassified from accumulated other comprehensive income (loss) | |||
Other comprehensive income (loss) | 49 | ||
Balance | $ (256) | $ (305) |
Note 2 - Significant Accounti56
Note 2 - Significant Accounting Policies - Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Losses on available-for-sale marketable securities | $ 1,669 | $ 1,227 | $ 1,175 | |
Net income | (3,003) | 4,813 | 1,562 | |
Research and development | [1] | 36,655 | 34,885 | 35,483 |
Sales and marketing | [2] | 14,315 | 13,867 | 12,103 |
General and administrative | [3] | 9,789 | 9,006 | 9,876 |
Research and development | [1] | 36,655 | 34,885 | 35,483 |
Sales and marketing | [2] | 14,315 | $ 13,867 | $ 12,103 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Net income | (100) | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||||
Losses on available-for-sale marketable securities | 50 | |||
Net income | 50 | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
Net income | (172) | |||
Research and development | (135) | |||
Sales and marketing | (13) | |||
General and administrative | (24) | |||
Research and development | (135) | |||
Sales and marketing | (13) | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||
Net income | 22 | |||
Research and development | 14 | |||
Sales and marketing | 8 | |||
General and administrative | 22 | |||
Research and development | 14 | |||
Sales and marketing | $ 8 | |||
[1] | Includes equity-based compensation expense in the amount of $2,349, $2,205 and $2,201for the years ended December 31, 2017, 2016 and 2015, respectively. | |||
[2] | Includes equity-based compensation expense in the amount of $1,115, $806 and $641 for the years ended December 31, 2017, 2016 and 2015, respectively. | |||
[3] | Includes equity-based compensation expense in the amount of $2,045, $1,749 and $1,950 for the years ended December 31, 2017, 2016 and 2015, respectively. |
Note 3 - Marketable Securitie57
Note 3 - Marketable Securities and Time Deposits (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $ 85,435 | $ 80,819 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 1,222 | 1,152 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 775 | 85 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 447 | 1,067 | |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | 0 | ||
Proceeds from Maturities, Prepayments and Calls of Available-for-sale Securities | 21,499 | 35,090 | $ 20,127 |
Proceeds from Sale of Available-for-sale Securities | 19,226 | 14,277 | 13,238 |
Available-for-sale Securities, Gross Realized Gains | 7 | 16 | 3 |
Available-for-sale Securities, Gross Realized Losses | $ 57 | $ 33 | $ 27 |
Note 3 - Marketable Securitie58
Note 3 - Marketable Securities and Time Deposits - Marketable Securities and Time Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Available-for-sale Securities, Amortized Cost Basis | $ 108,575 | $ 108,225 |
Marketable securities and time deposits, unrealized gains (losses), net | (1,209) | (1,102) |
Available-for-sale Securities | 107,366 | 107,123 |
Short-term Deposits [Member] | ||
Available-for-sale Securities, Amortized Cost Basis | 5,481 | 7,610 |
Marketable securities and time deposits, unrealized gains (losses), net | ||
Available-for-sale Securities | 5,481 | 7,610 |
Long-Term Deposit [Member] | ||
Available-for-sale Securities, Amortized Cost Basis | 5,013 | |
Marketable securities and time deposits, unrealized gains (losses), net | ||
Available-for-sale Securities | 5,013 | |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Available-for-sale Securities, Amortized Cost Basis | 22,359 | 24,351 |
Marketable securities and time deposits, unrealized gains (losses), net | (315) | (289) |
Available-for-sale Securities | 22,044 | 24,062 |
Corporate Debt Securities [Member] | ||
Available-for-sale Securities, Amortized Cost Basis | 75,722 | 76,264 |
Marketable securities and time deposits, unrealized gains (losses), net | (894) | (813) |
Available-for-sale Securities | $ 74,828 | $ 75,451 |
Note 3 - Marketable Securitie59
Note 3 - Marketable Securities and Time Deposits - Marketable Debt Securities by Contractual Maturities (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Marketable debt securities, amortized cost | $ 108,575,000 | $ 108,225,000 |
Marketable debt securities, estimated fair value | 107,366,000 | 107,123,000 |
Debt Securities [Member] | ||
Marketable debt securities, amortized cost | 98,081,000 | 100,615,000 |
Marketable debt securities, unrealized gains | 13,000 | 50,000 |
Marketable debt securities, unrealized losses | (1,222,000) | (1,152,000) |
Marketable debt securities, estimated fair value | 96,872,000 | 99,513,000 |
Debt Securities [Member] | Due in One Year or Less [Member] | ||
Marketable debt securities, amortized cost | 19,239,000 | 21,491,000 |
Marketable debt securities, unrealized gains | 3,000 | 6,000 |
Marketable debt securities, unrealized losses | (26,000) | (76,000) |
Marketable debt securities, estimated fair value | 19,216,000 | 21,421,000 |
Debt Securities [Member] | Due after One Year to Five Years [Member] | ||
Marketable debt securities, amortized cost | 78,842,000 | |
Marketable debt securities, unrealized gains | 10,000 | |
Marketable debt securities, unrealized losses | (1,196,000) | |
Marketable debt securities, estimated fair value | $ 77,656,000 | |
Debt Securities [Member] | Due After One Year to Six Years [Member] | ||
Marketable debt securities, amortized cost | 79,124,000 | |
Marketable debt securities, unrealized gains | 44,000 | |
Marketable debt securities, unrealized losses | (1,076,000) | |
Marketable debt securities, estimated fair value | $ 78,092,000 |
Note 4 - Other Accounts Recei60
Note 4 - Other Accounts Receivable and Prepaid Expenses - Other Accounts Receivable and Prepaid Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Prepaid expenses | $ 1,612 | $ 1,262 |
Tax and governmental receivables | 1,019 | 606 |
Deposits | 249 | 304 |
Others | 287 | 159 |
$ 3,167 | $ 2,331 |
Note 5 - Inventories (Details T
Note 5 - Inventories (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Inventory Write-down | $ 51 | $ 151 | $ 361 |
Note 5 - Inventories - Componen
Note 5 - Inventories - Components of Inventories (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Work-in-progress | $ 3,577,000 | $ 5,784,000 | |
Finished products | 5,845,000 | 3,964,000 | |
$ 9,422,000 | $ 9,748,000 | $ 11,453,000 |
Note 6 - Property and Equipme63
Note 6 - Property and Equipment (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment, Disposals | $ 98 | $ 953 | |
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | (19) | (10) | |
Depreciation, Depletion and Amortization, Nonproduction | $ 1,781 | $ 1,704 | $ 1,356 |
Note 6 - Property and Equipme64
Note 6 - Property and Equipment - Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property and equipment | $ 27,954 | $ 27,177 |
Less - accumulated depreciation | 24,770 | 23,047 |
Depreciated cost | 3,184 | 4,130 |
Computer Equipment [Member] | ||
Property and equipment | 21,465 | 20,636 |
Office Furniture and Equipment [Member] | ||
Property and equipment | 1,429 | 1,537 |
Leasehold Improvements [Member] | ||
Property and equipment | $ 5,060 | $ 5,004 |
Note 7 - Intangible Assets (Det
Note 7 - Intangible Assets (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Amortization of Intangible Assets | $ 1,700 | $ 1,457 | $ 1,284 |
Note 7 - Intangible Assets - In
Note 7 - Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Intangible assets, cost | $ 10,307 | $ 10,307 |
Intangible assets, accumulated amortization | 7,528 | 5,827 |
$ 2,779 | 4,480 | |
In Process Research and Development [Member] | ||
Intangible assets, useful life (Year) | 6 years | |
Intangible assets, cost | $ 7,702 | 7,702 |
Intangible assets, accumulated amortization | $ 6,418 | 5,134 |
Distribution Rights [Member] | ||
Intangible assets, useful life (Year) | 5 years | |
Intangible assets, cost | $ 2,086 | 2,086 |
Intangible assets, accumulated amortization | $ 591 | 174 |
Noncompete Agreements [Member] | ||
Intangible assets, useful life (Year) | 3 years | |
Intangible assets, cost | $ 519 | 519 |
Intangible assets, accumulated amortization | $ 519 | $ 519 |
Note 7 - Intangible Assets, Net
Note 7 - Intangible Assets, Net - Estimated Amortization Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
2,018 | $ 1,701 | |
2,019 | 417 | |
2,020 | 417 | |
2,021 | 244 | |
$ 2,779 | $ 4,480 |
Note 8 - Fair Value Measureme68
Note 8 - Fair Value Measurements - Fair Value Measurements of Assets and Liabilities on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative liabilities | ||
Derivative assets | $ 9 | |
Fair Value, Inputs, Level 1 [Member] | ||
Derivative liabilities | ||
Derivative assets | ||
Fair Value, Inputs, Level 2 [Member] | ||
Derivative liabilities | ||
Derivative assets | 9 | |
Fair Value, Inputs, Level 3 [Member] | ||
Derivative liabilities | ||
Derivative assets | ||
Money Market Funds [Member] | ||
Money market mutual funds | 2,998 | 1,370 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Money market mutual funds | 2,998 | 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 | 786 | 376 |
Long-term securities | 21,258 | 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 | 786 | 376 |
Long-term securities | 21,258 | 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 | 18,430 | 21,045 |
Long-term securities | 56,398 | 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 | 18,430 | 21,045 |
Long-term securities | 56,398 | 54,406 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Short-term securities | ||
Long-term securities |
Note 9 - Accrued Expenses and69
Note 9 - Accrued Expenses and Other Accounts Payable - Accrued Expenses and Other Accounts Payable (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Royalties and commission | $ 1,369 | $ 1,128 | |
Accrued expenses | [1] | 896 | 1,385 |
Accrued legal, and accounting expenses | 367 | 537 | |
Governmental payables | 141 | 421 | |
Others | [1] | 115 | 85 |
$ 2,888 | $ 3,556 | ||
[1] | The above decreases in 2016 were mainly related to the reversal of certain provisions due to the elapse of the applicable statute of limitations, in the amount of $2,549, which amount was recorded in other income, |
Note 10 - Accrued Pension Lia70
Note 10 - Accrued Pension Liabilities (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan, Fair Value of Plan Assets | $ 0 | $ 54 | |
Defined Benefit Plan Corridor Percentage | 10.00% | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, after Tax | $ 24 | $ (117) | $ 63 |
Note 10 - Accrued Pension Lia71
Note 10 - Accrued Pension Liabilities - Changes in the Pension Plans' Benefit Obligation and Fair Value of Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated benefit obligation | $ 871 | $ 792 | |
Benefit obligation at beginning of year | 803 | 738 | |
Service cost | 4 | 4 | $ 5 |
Interest cost | 14 | 17 | 17 |
Benefits paid from the plan | (22) | (55) | |
Actuarial (gain) loss | (22) | 121 | |
Exchange rates and others | 106 | (22) | |
Benefit obligation at end of year | 883 | 803 | 738 |
Fair value of plan assets at beginning of year | 54 | ||
Actual return on plan assets | 3 | ||
Benefits paid from the plan | (58) | ||
Exchange rates | 1 | ||
Fair value of plan assets at end of year | $ 0 | $ 54 |
Note 10 - Accrued Pension Lia72
Note 10 - Accrued Pension Liabilities - Assumptions Used in the Measurement of the Pension Expense and Benefit Obligation (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted-average assumptions | |||
Discount rate | 1.80% | 1.70% | 2.50% |
Expected return on plan assets | 4.59% | 4.28% | |
Rate of compensation increase | 2.50% | 2.50% | 2.50% |
Note 10 - Accrued Pension Lia73
Note 10 - Accrued Pension Liabilities - Components of Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Components of net periodic benefit cost | |||
Service cost | $ 4 | $ 4 | $ 5 |
Interest cost | 14 | 17 | 17 |
Expected return on plan assets | (3) | (5) | |
Amortization of net loss | 22 | 15 | 20 |
Net periodic benefit cost | $ 40 | $ 33 | $ 37 |
Note 10 - Accrued Pension Lia74
Note 10 - Accrued Pension Liabilities - Net Amounts Recognized in Consolidated Balance Sheets and Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current liabilities | ||
Accrued pensions (Note 10) | 883 | 803 |
Net amounts recognized in the consolidated balance sheets | 883 | 803 |
Net actuarial loss | (409) | (454) |
Net amounts recognized in accumulated other comprehensive loss | $ (409) | $ (454) |
Note 10 - Accrued Pension Lia75
Note 10 - Accrued Pension Liabilities - Estimated Amount That will Amortized from Accumulated Other Comprehensive Income (Loss) into Net Periodic Benefit Cost (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Net actuarial loss and other | $ 20 |
Note 10 - Accrued Pension Lia76
Note 10 - Accrued Pension Liabilities - Benefit Payments Expected to Be Paid (Details) $ in Thousands | Dec. 31, 2017USD ($) |
2,018 | $ 9 |
2,019 | 9 |
2,020 | 10 |
2,021 | 31 |
2,022 | 27 |
2023-2027 | 112 |
$ 198 |
Note 11 - Financial Income, N77
Note 11 - Financial Income, Net - Components of Financial Income, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Foreign exchange gains | $ 156 | $ 14 | $ 19 |
Interest income from marketable securities and deposits, net of amortization of premium on marketable securities | 1,719 | 1,534 | 1,391 |
Realized gains on marketable securities | 7 | 16 | 3 |
Financial income | 1,882 | 1,564 | 1,413 |
Realized losses on marketable securities | 57 | 33 | 27 |
Foreign exchange losses | 48 | 132 | 58 |
Interest expenses | 14 | 16 | 12 |
Other | 94 | 156 | 141 |
Financial expense | 213 | 337 | 238 |
Financial income, net | $ 1,669 | $ 1,227 | $ 1,175 |
Note 12 - Stockholders' Equit78
Note 12 - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2008 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2009 | Dec. 31, 2011 | Aug. 31, 2017 | |
Preferred Stock, Shares Authorized | 5,000,000 | |||||||
Preferred Stock, Shares Outstanding | 0 | |||||||
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 | ||||||
Retained Earnings (Accumulated Deficit) | $ (104,842) | $ (96,112) | ||||||
Stock Repurchase Program, Authorized Amount, Additional | $ 10,000 | |||||||
Treasury Stock, Shares, Acquired | 389,000 | 1,051,000 | 1,295,000 | |||||
Treasury Stock Acquired, Average Cost Per Share | $ 11.55 | $ 10.15 | $ 10.24 | |||||
Treasury Stock, Value, Acquired, Cost Method | $ 4,490 | $ 10,666 | $ 13,268 | |||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 748,010 | |||||||
Stock Issued During Period, Shares, Employee Stock Ownership Plan | 890,000 | 1,409,000 | 1,024,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 78,000 | 64,000 | 179,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 4 years 80 days | 5 years 182 days | 4 years 156 days | |||||
Allocated Share-based Compensation Expense | $ 5,861 | $ 5,088 | $ 5,092 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 1,721,000 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 3,782 | |||||||
Common Stock [Member] | ||||||||
Treasury Stock, Shares, Acquired | 389,000 | 1,051,000 | 1,295,000 | |||||
Treasury Stock, Value, Acquired, Cost Method | [1] | $ 1 | $ 1 | |||||
Share Price | $ 12.50 | $ 13.05 | $ 9.44 | |||||
1993 Director Stock Option Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,980,875 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 2,464,933 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 260,000 | |||||||
1998 Non-Officer Employee Stock Option Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 5,062,881 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 7 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 14,681 | |||||||
2003 Israeli Share Option Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 10,700,543 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 7 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 56,186 | |||||||
2012 Equity Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 3,100,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 7 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 682,059 | |||||||
2012 Equity Incentive Plan [Member] | Non-employee Directors [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 8,000 | |||||||
1993 Employee Stock Purchase Plan (ESPP) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award Options Grants in Period, Exercise Price Based on Percentage of Fair Market Value of Common Stock | 85.00% | |||||||
Employee Stock Purchase Plan, Shares Reserved for Future Purchase | 4,800,000 | |||||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 227,000 | 233,000 | 233,000 | |||||
Employee Stock Ownership Plan (ESOP), Weighted Average Purchase Price of Shares Purchased | $ 8.34 | $ 7.62 | $ 7.59 | |||||
Employee Stock Purchase Plan (ESPP), Shares Reserved for Future Purchase, Remaining | 715,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum | 27.42% | 29.60% | 22.83% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum | 34.92% | 41.21% | 34.53% | |||||
Share-based Compensation Award, Tranche One [Member] | 1993 Director Stock Option Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 33.00% | |||||||
Share-based Compensation Award, Tranche Two [Member] | 1993 Director Stock Option Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 33.00% | |||||||
Share-based Compensation Award, Tranche Three [Member] | 1993 Director Stock Option Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 33.00% | |||||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 476,000 | 573,000 | 405,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 872,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 9.63 | $ 8.33 | $ 10.43 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Weighted Average Pre Vest Cancel Rate | 3.64% | 3.78% | 3.49% | |||||
Restricted Stock Units (RSUs) [Member] | 2012 Equity Incentive Plan [Member] | Non-employee Directors [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 4,000 | |||||||
Restricted Stock Units (RSUs) [Member] | Share-based Compensation Award, Vesting on the First Anniversary [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||
Restricted Stock Units (RSUs) [Member] | Share-based Compensation Award, Vesting Each Quarter After First Anniversary [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 6.25% | |||||||
First Option [Member] | 1993 Director Stock Option Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 30,000 | |||||||
Subsequent Option [Member] | 1993 Director Stock Option Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 15,000 | |||||||
Committee Option [Member] | 1993 Director Stock Option Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 15,000 | |||||||
Stock Appreciation Rights (SARs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 190,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 270,000 | |||||||
Employee Stock Option [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 2.95 | $ 3.97 | $ 3.80 | |||||
Minimum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award Options Grants in Period, Exercise Price Based on Percentage of Fair Market Value of Common Stock | 100.00% | |||||||
Minimum [Member] | 1993 Employee Stock Purchase Plan (ESPP) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 years | |||||||
Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares to be Issued Upon Exercise of Outstanding Awards | 1,871,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options and Stock Appreciation Rights, Exercisable, Number | 785,000 | |||||||
Maximum [Member] | 1993 Employee Stock Purchase Plan (ESPP) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 2 years | |||||||
Maximum [Member] | Stock Appreciation Rights (SARs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant as Percentage of Company Outstanding Common Stock | 50.00% | 50.00% | 75.00% | 66.67% | ||||
[1] | Represents an amount lower than $1. |
Note 12 - Stockholders' Equit79
Note 12 - Stockholders' Equity - Number of Shares Available for Future Issuance (Details) | Dec. 31, 2017shares |
Preferred shares available for future issuance (in shares) | 5,000,000 |
Common and preferred shares available for future issuance (in shares) | 6,412,000 |
1993 Employee Stock Purchase Plan (ESPP) [Member] | |
Common shares available for future issuance (in shares) | 715,000 |
Incentive Plans Excluding ESPP [Member] | |
Common shares available for future issuance (in shares) | 697,000 |
Note 12 - Stockholders' Equit80
Note 12 - Stockholders' Equity - Stock Options, SARs and RSUs Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Options outstanding at beginning of year (in shares) | 2,152 | [1],[2],[3] | 3,740 | [1],[2],[3] | 4,644 | |
Options outstanding at beginning of year, weighted average exercise price (in dollars per share) | $ 5.12 | [1],[2],[3] | $ 6.22 | [1],[2],[3] | $ 6.52 | |
Options outstanding at beginning of year | [1] | |||||
Options granted (in shares) | 78 | 64 | 179 | |||
Options granted, weighted average exercise price (in dollars per share) | $ 11.93 | $ 9.44 | $ 11.20 | |||
Options granted, aggregate intrinsic value | [1] | |||||
Exercised (in shares) | [1] | (818) | (1,905) | (1,403) | ||
Exercised, weighted average exercise price (in dollars per share) | [1] | $ 3.77 | $ 5.55 | $ 5.68 | ||
Exercised, aggregate intrinsic value | [1] | $ 6,699 | $ 10,344 | $ 7,302 | ||
Forfeited and cancelled (in shares) | (86) | (320) | (85) | |||
Forfeited and cancelled, weighted average exercise price (in dollars per share) | $ 9.85 | $ 7.16 | $ 12.21 | |||
Forfeited and cancelled, aggregate intrinsic value | [1] | |||||
Options outstanding at end of year (in shares) | [1],[2],[3] | 1,992 | 2,152 | 3,740 | ||
Options outstanding at end of year, weighted average exercise price (in dollars per share) | [1],[2],[3] | $ 5.02 | $ 5.12 | $ 6.22 | ||
Options/SARs/RSUs outstanding at end of year (1,2,4) | [1],[2],[3] | $ 14,931 | $ 17,347 | $ 13,364 | ||
Options/SARs/RSUs exercisable at end of year (1,3,4) (in shares) | [1],[3],[4] | 813 | 1,132 | 2,552 | ||
Options/SARs/RSUs exercisable at end of year (1,3,4), weighted average exercise price (in dollars per share) | [1],[3],[4] | $ 8.20 | $ 8.27 | $ 7.47 | ||
Options/SARs/RSUs exercisable at end of year (1,3,4), aggregate intrinsic value | [1],[3],[4] | $ 3,499 | $ 5,703 | $ 6,031 | ||
Stock Appreciation Rights (SARs) [Member] | ||||||
Non-option instruments granted (in shares) | 190 | |||||
Non-option instruments, weighted average exercise price (in dollars per share) | $ 10.40 | |||||
Non-option instruments, aggregate intrinsic value | [1] | |||||
Restricted Stock Units (RSUs) [Member] | ||||||
Non-option instruments granted (in shares) | 476 | 573 | 405 | |||
Non-option instruments, weighted average exercise price (in dollars per share) | ||||||
Non-option instruments, aggregate intrinsic value | [1] | |||||
[1] | Calculation of aggregate intrinsic value for options, RSUs and SARs outstanding and exercisable is based on the share price of the Company's common stock as of December 31, 2017, 2016 and 2015 which was $12.50, $13.05 and $9.44 per share, respectively. The intrinsic value for options and SARs exercised and RSUs vested during those years represents the difference between the fair market value of the Company's common stock on the date of exercise and vesting for RSUs and the exercise price of each option, RSU or SAR, as applicable. | |||||
[2] | Due to the ceiling imposed on the SAR grants, the outstanding amount above can be exercised for a maximum of 1,871 thousand shares of the Company's common stock as of December 31, 2017. | |||||
[3] | SAR grants made prior to January 1, 2009 are convertible for a maximum number of shares of the Company's common stock equal to 50% of the SAR units subject to the grant. SAR grants made on or after January 1, 2009 and before January 1, 2010 are convertible for a maximum number of shares of the Company's common stock equal to 75% of the SAR units subject to the grant. SAR grants made on or after January 1, 2010 are convertible for a maximum number of shares of the Company's common stock equal to 66.67% of the SAR units subject to the grant. SAR grants made on or after January 1, 2012 are convertible for a maximum number of shares of the Company's common stock equal to 50% of the SAR units subject to the grant. | |||||
[4] | Due to the ceiling imposed on the SAR grants, the exercisable amount above can be exercised for a maximum of 785 thousand shares of the Company's common stock as of December 31, 2017. |
Note 12 - Stockholders' Equit81
Note 12 - Stockholders' Equity - Stock Options and SARs Outstanding by Exercise Price Range (Details) shares in Thousands | 12 Months Ended | |
Dec. 31, 2017$ / sharesshares | ||
Outstanding, remaining contractual life (Year) | 4 years 153 days | [1] |
Outstanding, weighted average exercise price (in dollars per share) | $ 5.02 | |
Exercisable (in shares) | shares | 813 | |
Exercisable, remaining contractual life (Year) | 3 years 262 days | |
Exercisable, weighted average exercise price (in dollars per share) | $ 8.20 | |
Outstanding (in shares) | shares | 1,992 | |
Restricted Stock Units (RSUs) [Member] | ||
Range of exercise price, lower limit (in dollars per share) | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | shares | 872 | |
Options and SARs [Member] | Range 1 [Member] | ||
Range of exercise price, lower limit (in dollars per share) | $ 5.21 | |
Range of exercise price, upper limit (in dollars per share) | $ 7.26 | |
Outstanding (in shares) | shares | 231 | |
Outstanding, remaining contractual life (Year) | 3 years 10 days | [1] |
Outstanding, weighted average exercise price (in dollars per share) | $ 5.89 | |
Exercisable (in shares) | shares | 231 | |
Exercisable, remaining contractual life (Year) | 3 years 10 days | |
Exercisable, weighted average exercise price (in dollars per share) | $ 5.89 | |
Options and SARs [Member] | Range 2 [Member] | ||
Range of exercise price, lower limit (in dollars per share) | 7.49 | |
Range of exercise price, upper limit (in dollars per share) | $ 9.71 | |
Outstanding (in shares) | shares | 458 | |
Outstanding, remaining contractual life (Year) | 3 years 248 days | [1] |
Outstanding, weighted average exercise price (in dollars per share) | $ 8.50 | |
Exercisable (in shares) | shares | 451 | |
Exercisable, remaining contractual life (Year) | 3 years 248 days | |
Exercisable, weighted average exercise price (in dollars per share) | $ 8.50 | |
Options and SARs [Member] | Range 3 [Member] | ||
Range of exercise price, lower limit (in dollars per share) | 10.15 | |
Range of exercise price, upper limit (in dollars per share) | $ 15.79 | |
Outstanding (in shares) | shares | 431 | |
Outstanding, remaining contractual life (Year) | 5 years 346 days | [1] |
Outstanding, weighted average exercise price (in dollars per share) | $ 11.01 | |
Exercisable (in shares) | shares | 131 | |
Exercisable, remaining contractual life (Year) | 5 years 10 days | |
Exercisable, weighted average exercise price (in dollars per share) | $ 11.22 | |
[1] | Calculation of weighted average remaining contractual term does not include the RSUs that were granted, which have an indefinite contractual term. |
Note 12 - Stockholders' Equit82
Note 12 - Stockholders' Equity - Weighted Average Fair Value Assumptions (Details) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Volatility | 37.47% | 46.02% | 49.04% | |
Risk-free interest rate | 2.23% | 2.29% | 1.96% | |
Dividend yield | 0.00% | 0.00% | 0.00% | |
Pre-vest cancellation rate | [1] | 4.06% | 1.87% | 3.95% |
Post-vest cancellation rate | [2] | 3.45% | 3.44% | 3.86% |
Suboptimal exercise factor | [3] | 1.31% | 1.69% | 1.46% |
Expected life (Year) | 4 years 80 days | 5 years 182 days | 4 years 156 days | |
[1] | The pre-vest cancellation rate was calculated on an annual basis and is presented here on an annual basis. | |||
[2] | The post-vest cancellation rate was calculated on a monthly basis and is presented here on an annual basis. | |||
[3] | The ratio of the stock price to strike price at the time of exercise of the option. |
Note 12 - Stockholders' Equit83
Note 12 - Stockholders' Equity - Non-vested Stock Options, SARs and RSUs (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Non-vested (in shares) | shares | 1,019 |
Non-vested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 7.69 |
Granted (in shares) | shares | 744 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | $ 7.22 |
Vested (in shares) | shares | (539) |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 7.46 |
Forfeited (in shares) | shares | (46) |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | $ 7.69 |
Non-vested (in shares) | shares | 1,179 |
Non-vested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 7.50 |
Note 13 - Commitments and Con84
Note 13 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Leases, Rent Expense | $ 2,308 | $ 2,362 | $ 2,252 |
Financial Grants in Support of Research and Development, Royalty Obligation | 5.00% | ||
Loss Contingency Accrual | $ 9,388 |
Note 13 - Commitments and Con85
Note 13 - Commitments and Contingencies - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2017USD ($) |
2,018 | $ 2,961 |
2,019 | 1,524 |
2,020 | 1,298 |
2021- and thereafter | 9,185 |
$ 14,968 |
Note 14 - Taxes on Income (Deta
Note 14 - Taxes on Income (Details Textual) $ in Thousands, ₪ in Billions | Jan. 01, 2018 | Dec. 31, 2016USD ($) | Dec. 31, 2018 | Dec. 31, 2017USD ($) | Dec. 31, 2017ILS (₪) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 35.00% | 35.00% | |||
Deferred Tax Assets, Valuation Allowance | $ 7,708 | $ 5,998 | $ 7,708 | ||||
Cash and Cash Equivalents, Marketable Securities and Time Deposit | 129,200 | ||||||
Unrecognized Tax Benefits | 1,023 | 1,273 | 1,023 | $ 1,711 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 46 | 68 | $ 46 | ||||
Domestic Tax Authority [Member] | |||||||
Operating Loss Carryforwards | 17,719 | ||||||
State and Local Jurisdiction [Member] | |||||||
Operating Loss Carryforwards | $ 2,650 | ||||||
Israel Tax Authority [Member] | |||||||
Corporate Tax Rate | 24.00% | 24.00% | 25.00% | 26.50% | |||
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Amount | $ 41,069 | ||||||
Income Tax, Net, Liabilities | 4,563 | ||||||
Operating Loss Carryforwards | $ 12,196 | ||||||
Israel Tax Authority [Member] | DSP Israel [Member] | |||||||
Corporate Tax Rate | 16.00% | 16.00% | |||||
Israel Tax Authority [Member] | Minimum [Member] | |||||||
Tax Credit Carryforward, Expiration Period | 13 years | 13 years | |||||
Israel Tax Authority [Member] | Maximum [Member] | |||||||
Tax Credit Carryforward, Expiration Period | 20 years | 20 years | |||||
Israel Tax Authority [Member] | Approved Enterprise Investment [Member] | |||||||
Tax Exemption Period | 2 years | 2 years | |||||
Corporate Tax Rate | 10.00% | 10.00% | |||||
Additional Tax Exemption Period | 6 years | 6 years | |||||
Israel Tax Authority [Member] | Beneficiary Enterprise [Member] | |||||||
Tax Exemption Period | 4 years | 4 years | |||||
Corporate Tax Rate | 25.00% | 25.00% | |||||
Additional Tax Exemption Period | 8 years | 8 years | |||||
Israel Tax Authority [Member] | First, Second, Third, Fourth, Fifth and Sixth Investment Programs [Member] | Minimum [Member] | |||||||
Tax Exemption Period | 2 years | 2 years | |||||
Corporate Tax Rate | 10.00% | 10.00% | |||||
Additional Tax Exemption Period | 6 years | 6 years | |||||
Israel Tax Authority [Member] | First, Second, Third, Fourth, Fifth and Sixth Investment Programs [Member] | Maximum [Member] | |||||||
Tax Exemption Period | 4 years | 4 years | |||||
Corporate Tax Rate | 25.00% | 25.00% | |||||
Additional Tax Exemption Period | 8 years | 8 years | |||||
Israel Tax Authority [Member] | Seventh and Eighth Investment Programs [Member] | |||||||
Tax Exemption Period | 2 years | 2 years | |||||
Additional Tax Exemption Period | 8 years | 8 years | |||||
Israel Tax Authority [Member] | Seventh and Eighth Investment Programs [Member] | Minimum [Member] | |||||||
Corporate Tax Rate | 10.00% | 10.00% | |||||
Israel Tax Authority [Member] | Seventh and Eighth Investment Programs [Member] | Maximum [Member] | |||||||
Corporate Tax Rate | 25.00% | 25.00% | |||||
Israel Tax Authority [Member] | Preferred Enterprises [Member] | |||||||
Corporate Tax Rate | 9.00% | 7.50% | 7.50% | ||||
Israel Tax Authority [Member] | Technological Preferred Enterprise [Member] | |||||||
Corporate Tax Rate | 12.00% | 12.00% | |||||
Technological Preferred Enterprise, Maximum, Consolidated Revenues | $ 2,600,000 | ₪ 10 | |||||
Tax Rate, Dividends from Technological Enterprises to Foreign Companies | 4.00% | 4.00% | |||||
Investment Held by Foreign Entities [Member] | |||||||
Cash and Cash Equivalents, Marketable Securities and Time Deposit | $ 118,100 | ||||||
Scenario, Forecast [Member] | |||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | ||||||
Scenario, Forecast [Member] | Israel Tax Authority [Member] | |||||||
Corporate Tax Rate | 23.00% |
Note 14 - Taxes on Income - Pro
Note 14 - Taxes on Income - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Current, Federal taxes | ||||
Current, State taxes | 2 | 3 | 2 | |
Current | [1] | 368 | 264 | 1,081 |
Deferred | [2] | (462) | 327 | (756) |
(94) | 591 | 325 | ||
$ (92) | $ 594 | $ 327 | ||
[1] | Includes for 2014 (i) income in the amount of $858 due to reversal of income tax contingency reserves that were determined to be no longer needed due to finalization of a tax assessment of one of the Company’s subsidiaries and (ii) income in the amount of $1,234 due to removal of valuation allowance of tax advances. | |||
[2] | Includes for 2014 income tax benefit in the amount of $827 due to elimination of valuation allowance of deferred tax assets. |
Note 14 - Taxes on Income - Inc
Note 14 - Taxes on Income - Income (Loss) Before Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Domestic | $ (4,128) | $ (2,188) | $ (909) |
Foreign | 1,033 | 7,595 | 2,798 |
Total consolidated income (loss) before taxes | $ (3,095) | $ 5,407 | $ 1,889 |
Note 14 - Taxes on Income - I89
Note 14 - Taxes on Income - Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income (loss) before income tax benefit (expense) | $ (3,095) | $ 5,407 | $ 1,889 |
Theoretical tax expenses (tax benefit) at U.S. statutory tax rate (35%) | (1,083) | 1,892 | 661 |
State taxes, net of federal benefit | 2 | 3 | 2 |
Foreign income taxed at rates other than the U.S. rate (including deferred taxes that were not provided, valuation allowance and current adjustment and interest on uncertain tax position liability) | (808) | (2,580) | (2,209) |
Nondeductible equity-based compensation expenses | 816 | 695 | 1,782 |
Valuation allowance in U.S. | 984 | 583 | 91 |
Other | (2) | 1 | |
$ (92) | $ 594 | $ 327 |
Note 14 - Taxes on Income - I90
Note 14 - Taxes on Income - Income Tax Reconciliation (Details) (Parentheticals) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
U.S. statutory tax rate | 35.00% | 35.00% | 35.00% |
Note 14 - Taxes on Income - Def
Note 14 - Taxes on Income - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Reserves and accruals | $ 1,202 | $ 1,322 | |
Equity-based compensation | 922 | 846 | |
Intangible assets | 320 | 688 | |
Carryforward tax losses | 4,368 | 5,770 | [1] |
Other | 229 | ||
Total deferred tax assets | 7,041 | 8,626 | |
Valuation allowance | (5,998) | (7,708) | |
Total deferred tax assets | 1,043 | 918 | |
Acquired intangible assets | 565 | 987 | |
Acquired carryforward tax losses | (141) | (200) | |
Total deferred tax liabilities, net | $ 424 | $ 787 | |
[1] | The amount in 2015 is after a deduction of $200,208 carryforward tax losses of a foreign subsidiary that expired by December 31, 2015. |
Note 14 - Taxes on Income - Unc
Note 14 - Taxes on Income - Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Gross unrecognized tax benefits at January 1 | $ 1,023 | $ 1,711 | |
Increases (decreases) in tax positions for previous years (1) | [1] | (268) | (918) |
Increases in tax positions for current year | 306 | 396 | |
Increase in tax positions for previous years | 131 | ||
Change in interest and linkage related to tax positions | 81 | (166) | |
Gross unrecognized tax benefits at December 31 | $ 1,273 | $ 1,023 | |
[1] | The decrease in 2016 is mainly the result of finalization of an examination that was conducted by the German tax authorities of the Company's German tax returns for 2007 - 2009 and the tax payment that was made following such examination. |
Note 15 - Basic and Diluted L93
Note 15 - Basic and Diluted Loss Per Share - Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income (loss) | $ (3,003) | $ 4,813 | $ 1,562 |
Weighted average number of shares of common stock outstanding during the year used to compute basic net earnings (loss) per share (in thousands) (in shares) | 22,229 | 21,800 | 21,924 |
Incremental shares attributable to exercise of outstanding options, SARs and RSUs (assuming proceeds would be used to purchase treasury stock) (in thousands) (in shares) | 1,087 | 1,416 | |
Weighted average number of shares of common stock used to compute diluted net earnings (loss) per share (in thousands) (in shares) | 22,229 | 22,887 | 23,340 |
Basic net earnings (loss) per share (in dollars per share) | $ (0.14) | $ 0.22 | $ 0.07 |
Diluted net earnings (loss) per share (in dollars per share) | $ (0.14) | $ 0.21 | $ 0.07 |
Note 16 - Segment Information94
Note 16 - Segment Information (Details Textual) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of Reportable Segments | 3 | ||
Product Concentration Risk [Member] | Sales Revenue, Segment [Member] | Home [Member] | Telephony [Member] | |||
Concentration Risk, Percentage | 54.00% | 57.00% | 72.00% |
Product Concentration Risk [Member] | Sales Revenue, Segment [Member] | Home [Member] | Gateway [Member] | |||
Concentration Risk, Percentage | 9.00% | 8.00% | 10.00% |
Product Concentration Risk [Member] | Sales Revenue, Segment [Member] | Office [Member] | VoIP [Member] | |||
Concentration Risk, Percentage | 28.00% | 19.00% | 15.00% |
Product Concentration Risk [Member] | Sales Revenue, Segment [Member] | Mobile [Member] | |||
Concentration Risk, Percentage | 4.00% | 12.00% | 0.00% |
Note 16 - Segment Information -
Note 16 - Segment Information - Selected Operating Results (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | $ 124,753 | $ 137,869 | $ 144,271 |
Income from operations | 4,563 | 9,564 | 9,646 |
Home [Member] | |||
Revenues | 85,021 | 95,388 | 121,714 |
Income from operations | 16,256 | 17,715 | 24,815 |
Office [Member] | |||
Revenues | 34,879 | 26,590 | 22,216 |
Income from operations | 9,105 | (2,961) | (4,861) |
SmartVoice [Member] | |||
Revenues | 4,853 | 15,891 | 341 |
Income from operations | $ (20,798) | $ (5,190) | $ (10,308) |
Note 16 - Segment Information96
Note 16 - Segment Information - Reconciliation of Segment Operating Results (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Income from operations | $ 4,563 | $ 9,564 | $ 9,646 | |
Unallocated corporate, general and administrative expenses* | [1] | (1,766) | (1,388) | (2,156) |
Other income | 2,549 | |||
Equity-based compensation expenses | (5,861) | (5,088) | (5,092) | |
Intangible assets amortization expenses | (1,700) | (1,457) | (1,284) | |
Write–off of expired option related to investment in other company | (400) | |||
Losses on available-for-sale marketable securities | 1,669 | 1,227 | 1,175 | |
Total consolidated income (loss) before taxes | $ (3,095) | $ 5,407 | $ 1,889 | |
[1] | Includes mainly legal, accounting, board of directors and investors relation expenses. |
Note 16 - Segment Information97
Note 16 - Segment Information - Summary of Operations Within Geographic Areas Based on Customer Locations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue distribution | $ 124,753 | $ 137,869 | $ 144,271 |
HONG KONG | |||
Revenue distribution | 46,119 | 56,768 | 72,608 |
JAPAN | |||
Revenue distribution | 16,567 | 18,440 | 26,114 |
Europe [Member] | |||
Revenue distribution | 9,882 | 9,703 | 8,464 |
UNITED STATES | |||
Revenue distribution | 4,927 | 4,696 | 3,944 |
CHINA | |||
Revenue distribution | 16,096 | 10,244 | 10,359 |
TAIWAN, PROVINCE OF CHINA | |||
Revenue distribution | 22,442 | 16,428 | 16,902 |
KOREA, REPUBLIC OF | |||
Revenue distribution | 4,190 | 17,503 | 1,913 |
Other Geographic Regions [Member] | |||
Revenue distribution | $ 4,530 | $ 4,087 | $ 3,967 |
Note 16 - Segment Information98
Note 16 - Segment Information - Summary of Long-lived Assets Within Geographic Areas Based on the Assets' Locations (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Long-lived assets | $ 3,184 | $ 4,130 |
Europe [Member] | ||
Long-lived assets | 144 | 216 |
ISRAEL | ||
Long-lived assets | 2,017 | 2,652 |
Other Geographic Regions [Member] | ||
Long-lived assets | $ 1,023 | $ 1,262 |
Schedule II - Valuation and Q99
Schedule II - Valuation and Qualifying Accounts (Details) - Allowance for Sales Returns [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Balance | |||
Charged to (deducted from) Costs and Expenses | |||
Balance |