DSP (DSPG) 10-Q 11 May 18 2018 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 02, 2018
Document Information [Line Items]
Entity Registrant Name	DSP GROUP INC /DE/
Entity Central Index Key	915,778
Trading Symbol	dspg
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		22,676,065
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
CURRENT ASSETS:
Cash and cash equivalents	$ 15,635	$ 21,324
Restricted deposit	527	524
Marketable securities and short-term deposits	30,961	24,697
Trade receivables	15,910	13,416
Other accounts receivable and prepaid expenses	3,168	3,167
Inventories	8,414	9,422
TOTAL CURRENT ASSETS	74,615	72,550
PROPERTY AND EQUIPMENT, NET	2,991	3,184
NON-CURRENT ASSETS:
Long-term marketable securities	76,446	82,669
Long-term prepaid expenses and lease deposits	1,574	1,541
Deferred income taxes	1,041	1,043
Severance pay fund	15,136	15,190
Intangible assets, net	2,354	2,779
Goodwill	6,243	6,243
TOTAL NON-CURRENT ASSETS	102,794	109,465
TOTAL ASSETS	180,400	185,199
CURRENT LIABILITIES:
Trade payables	7,651	8,660
Accrued compensation and benefits	6,720	8,699
Income tax accruals and payables	1,071	1,232
Accrued expenses and other accounts payable	2,190	2,888
TOTAL CURRENT LIABILITIES	17,632	21,479
NON-CURRENT LIABILITIES:
Deferred income taxes	332	424
Accrued severance pay	15,274	15,463
Accrued pensions	912	883
TOTAL NON-CURRENT LIABILITIES	16,518	16,770
STOCKHOLDERS’ EQUITY:
Common stock, $ 0.001 par value - Authorized shares: 50,000,000 shares at March 31, 2018 and December 31, 2017; Issued and outstanding shares: 22,729,085 and 22,432,660 shares at March 31, 2018 and December 31, 2017, respectively	23	22
Additional paid-in capital	373,740	372,041
Treasury stock at cost	(115,731)	(118,397)
Accumulated other comprehensive loss	(2,517)	(1,874)
Accumulated deficit	(109,265)	(104,842)
TOTAL STOCKHOLDERS’ EQUITY	146,250	146,950
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 180,400	$ 185,199

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
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)	22,729,085	22,432,660
Common stock, outstanding (in shares)	22,729,085	22,432,660

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017
Revenues		$ 28,111	$ 27,933
Cost of revenues (1)	[1]	14,397	15,686
Gross profit		13,714	12,247
Operating expenses:
Research and development, net (2)	[2]	8,998	9,190
Sales and marketing (3)	[3]	4,068	3,575
General and administrative (4)	[4]	2,581	2,487
Intangible assets amortization		425	425
Total operating expenses		16,072	15,677
Operating loss		(2,358)	(3,430)
Financial income, net		396	416
Loss before taxes on income		(1,962)	(3,014)
Income tax benefit		209	148
Net loss		$ (1,753)	$ (2,866)
Net loss per share:
Basic (in dollars per share)		$ (0.08)	$ (0.13)
Diluted (in dollars per share)		$ (0.08)	$ (0.13)
Weighted average number of shares used in per share computations of net earnings
Basic (in shares)		22,678	22,102
Diluted (in shares)		22,678	22,102
[1]	Includes equity-based compensation expense in the amount of $98 and $97 for the three months ended March 31, 2018 and 2017, respectively.
[2]	Includes equity-based compensation expense in the amount of $652 and $616 for the three months ended March 31, 2018 and 2017, respectively.
[3]	Includes equity-based compensation expense in the amount of $406 and $300 for the three months ended March 31, 2018 and 2017, respectively.
[4]	Includes equity-based compensation expense in the amount of $543 and $518 for the three months ended March 31, 2018 and 2017, respectively.

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Operations (Unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Equity-based compensation expense included in cost of revenues	$ 98	$ 97
Equity-based compensation expenses included in research and development, net	652	616
Equity-based compensation expense included in sales and marketing	406	300
Equity-based compensation expense included in general and administrative	$ 543	$ 518

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net loss	$ (1,753)	$ (2,866)
Changes in unrealized gains/losses	(662)	204
Reclassification adjustments for (gains) losses included in net loss	(2)	47
Net change	(664)	251
Changes in unrealized gains/losses		143
Reclassification adjustments for (gains) losses included in net loss		(75)
Net change		68
Amortization of actuarial loss and prior service benefit	5	5
Net change	5	5
Foreign currency translation adjustments, net	16	(9)
Net current period other comprehensive income (loss)	(643)	315
Comprehensive loss	$ (2,396)	$ (2,551)

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net cash used in operating activities	$ (3,372)	$ (4,118)
Investing activities
Purchases of marketable securities	(3,277)	(3,297)
Proceeds from maturity of marketable securities	1,855	4,779
Proceeds from sales of marketable securities	500	3,089
Purchases of property and equipment	(250)	(387)
Other investing activities	(104)
Net cash provided by investing activities	(1,276)	4,184
Financial activities
Purchase of treasury stock	(1,211)	(1,313)
Issuance of common stock and treasury stock upon exercise of stock options	155	647
Net cash used in financing activities	(1,056)	(666)
Decrease in cash and cash equivalents	(5,704)	(600)
Erosion due to exchange rate differences	18	(1)
Cash and cash equivalents at the beginning of the period	21,848	17,822
Cash and cash equivalents at the end of the period	$ 16,162	$ 17,221

Condensed Consolidated Stateme8

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands		Common Stock [Member]		Additional Paid-in Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Balance (in shares) at Dec. 31, 2016		21,931,000
Balance at Dec. 31, 2016		$ 22		$ 366,121	$ (122,632)	$ (96,112)	$ (1,852)	$ 145,547
Net loss						(2,866)		(2,866)
Change in accumulated other comprehensive income							315	315
Purchase of treasury stock (in shares)		(124,000)
Purchase of treasury stock			[1]		(1,313)			(1,313)
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan (in shares)		113,000
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan			[1]		1,110	(168)		942
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and vesting of restricted stock units by employees and directors (in shares)		249,000
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and vesting of restricted stock units by employees and directors			[1]		2,431	(2,130)		301
Equity-based compensation				1,531				1,531
Balance (in shares) at Mar. 31, 2017		22,169,000
Balance at Mar. 31, 2017		$ 22		367,652	(120,404)	(101,276)	(1,537)	144,457
Balance (in shares) at Dec. 31, 2017		22,433,000
Balance at Dec. 31, 2017		$ 22		372,041	(118,397)	(104,842)	(1,874)	146,950
Net loss						(1,753)		(1,753)
Change in accumulated other comprehensive income							(643)	$ (643)
Purchase of treasury stock (in shares)		(102,000)						(102,312)
Purchase of treasury stock			[1]		(1,255)			$ (1,256)
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan (in shares)		119,000
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan			[1]		1,169	(166)		1,003
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and vesting of restricted stock units by employees and directors (in shares)		279,000
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and vesting of restricted stock units by employees and directors		$ 1			2,752	(2,598)		155
Equity-based compensation				1,699				1,699
Balance (in shares) at Mar. 31, 2018		22,729,000
Balance at Mar. 31, 2018		$ 23		$ 373,740	$ (115,731)	(109,265)	$ (2,517)	146,250
Cumulative effect adjustment on retained earnings **)	[2]					$ 94		$ 94
[1]	Represents an amount lower than $1.
[2]	Resulting from adoption of ASC 606.

Note A - Basis of Presentation

Note A - Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Significant Accounting Policies [Text Block]	NOTE A—BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States for interim financial information and with the instructions to Form 10 10 X. not three March 31, 2018 not may December 31, 2018. 10 December 31, 2017. The significant accounting policies applied in the annual consolidated financial statements of the Company as of December 31, 2017, 10 March 16, 2018, Recent ly Adopted Accounting Pronouncements . In May 2014, 2014 09, 606 2014 09” January 1, 2018, 606, 606” 606 not 2018 606 2017 605, 605 606 March 31, 2018 $94. Under ASC 606, The Company determines revenue recognition through the following steps: ● identification of the contract with a customer; ● identification of the performance obligations in the contract; ● determination of the transaction price; ● allocation of the transaction price to the performance obligations in the contract; and ● recognition of revenue when, or as, the Company satisfies a performance obligation. The Company’s contracts with customers for the sale of products generally include one In accordance with the ASC 606 606 For the three months ended March 31, 2018 As Reported Prior to Adoption of ASC 606 Effect of Change Income statement Revenues $ 28,111 $ 27,157 $ 954 Cost of revenues 14,397 14,017 380 Gross margin: 13,714 13,140 574 Operating expenses: Research and development, net 8,998 8,998 - Sales and marketing 4,068 4,015 53 General and administrative 2,581 2,581 - Intangible assets amortization 425 425 - Total operating expenses: 16,072 16,019 53 Operating loss: (2,358 ) (2,879 ) 521 Financial income 396 396 - Income (loss) before taxes on income (1,962 ) (2,483 ) 521 Taxes on income 209 209 - Net income (1,753 ) (2,274 ) 521 March 31, 2018 As Reported Prior to Adoption of ASC 606 Effect of Change Balance Sheet Assets Trade receivables $ 15,910 $ 14,884 $ 1,026 Inventories 8,414 8,812 (398 ) Other accounts receivable and prepaid expenses 3,168 3,226 (58 ) Liabilities Accrued expenses and other accounts payable (2,190 ) (2,235 ) (45 ) Equity Accumulated deficit (109,265 ) (109,880 ) 615 In August 2016, 2016 15, 230 2016 15” 2016 15 zero 2016 15 January 1, 2018, not In November 2016, 2016 18, 230 December 15, 2017. January 1, 2018. Recent Accounting Pronouncements . In February 2016, 2016 02 842 not twelve twelve 842 840. January 1, 2019, January 1, 2019 Use of Estimates The preparation of the interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the dates of the interim condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Note B - Inventories

Note B - Inventories	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Inventory Disclosure [Text Block]	NOTE B—INVENTORIES Inventories are stated at the lower of cost or market value. The Company periodically evaluates the quantities on hand relative to current and historical selling prices, and historical and projected sales volume. Based on these evaluations, provisions are made in each period to write inventory down to its net realizable value. Inventories are composed of the following: March 3 1 , 201 8 December 31, 201 7 (Unaudited) (Audited) Work-in-process $ 4,370 $ 3,577 Finished goods 4,044 5,845 $ 8,414 $ 9,422 Inventory write-off amounted to $49 $59 three March 31, 2018 2017,

Note C - Net Earnings (Loss) Pe

Note C - Net Earnings (Loss) Per Share	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Earnings Per Share [Text Block]	NOTE C—NET EARNINGS (LOSS) PER SHARE Basic net earnings (loss) per share are computed based on the weighted average number of shares of common stock outstanding during the period. For the same periods, diluted net earnings (loss) per share further include the effect of dilutive stock options, stock appreciation rights and restricted share units outstanding during the period, all in accordance with FASB ASC No. 260 Three months ended March 31, 201 8 201 7 (Unaudited) Net loss $ (1,753 ) $ (2,866 ) Loss per share: Basic $ (0.08 ) $ (0.13 ) Diluted $ (0.08 ) $ (0.13 ) Weighted average number of shares of common stock outstanding during the period used to compute basic net loss per share (in thousands) 22,678 22,102 Incremental shares attributable to exercise of outstanding options, stock appreciation rights and restricted stock units (assuming proceeds would be used to purchase treasury stock) (in thousands) - - Weighted average number of shares of common stock used to compute diluted net loss per share (in thousands) 22,678 22,102

Note D - Marketable Securities

Note D - Marketable Securities and Time Deposits	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]	NOTE D — MARKETABLE SECURITIES and time deposits The Company accounts for investments in marketable securities in accordance with FASB ASC No.320 10 The Company classifies marketable securities as available-for-sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses, net of taxes, reported in other comprehensive income. The amortized cost of marketable securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and interest are included in financial income, net. Interest and dividends on securities are included in financial income, net. The following is a summary of available-for-sale securities at March 31, 2018 December 31, 2017: Amortized cost Unrealized losses, net Fair value March 31, 201 8 December 31, 201 7 March 31, 201 8 December 31, 201 7 March 31, 201 8 December 31, 201 7 (Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited) Short-term deposits 5,465 $ 5,481 $ - $ - $ 5,465 $ 5,481 Long-term deposits 5,041 5,013 - - 5,041 5,013 U.S. GSE securities 23,059 22,359 (434 ) (315 ) 22,625 22,044 Corporate obligations 75,715 75,722 (1,439 ) (894 ) 74,276 74,828 $ 109,280 $ 108,575 $ (1,873 ) $ (1,209 ) $ 107,407 $ 107,366 The amortized cost of marketable debt securities and term deposits at March 31, 2018, Unrealized gains (losses) Amortized cost Gains Losses Fair value Due in one year or less $ 31,048 $ 1 $ (88 ) $ 30,961 Due after one year to five years 78,232 1 (1,787 ) 76,446 $ 109,280 $ 2 $ (1,875 ) $ 107,407 The actual maturity dates may may Management believes that as of March 31, 2018, no The unrealized losses related to corporate obligations were primarily due to changes in interest rates. Because the Company does not not not may not March 31, 2018. The total fair value of marketable securities with outstanding unrealized losses as of March 31, 2018 $93,813, $1,875. $1,875 March 31, 2018, $1,319 12 $556 12 Proceeds from maturity of available-for-sale marketable securities during the three March 31, 2018 2017 $1,855 $4,779, three March 31, 2018 2017 $500 $3,089, three March 31, 2018 $2 three March 31, 2017 $47. Marketable securities are periodically reviewed for impairment. If management concludes that any marketable security is impaired, management determines whether such impairment is other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value and the potential recovery period, and the Company’s intent to sell, or whether it is more likely than not

Note E - Taxes on Income

Note E - Taxes on Income	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Income Tax Disclosure [Text Block]	NOTE e—TAXES ON Income The effective tax rate used in computing the provision for income taxes is based on projected fiscal year income before taxes, including estimated income by tax jurisdiction. The total amount of net unrecognized tax benefits was $1,132 $1,273 March 31, 2018 December 31, 2017, March 31, 2018 December 31, 2017, $80 $68, The Company intends to permanently reinvest earnings of its foreign operations and its current operating plans do not not may

Note F - Significant Customers

Note F - Significant Customers	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Significant Customers Disclosure [Text Block]	NOTE f—SIGNIFICANT CUSTOMERS The Company sells its products primarily through distributors and directly to original equipment manufacturers (OEMs) and original design manufacturers (ODMs) who incorporate the Company’s products into consumer products. The Company’s future performance will depend, in part, on the continued success of its distributors in marketing and selling its products. The loss of the Company’s distributors and the Company’s inability to obtain satisfactory replacements in a timely manner may The following table represents the Company’s sales, as a percentage of the Company’s total revenues, for the three March 31, 2018 2017, Three months ended March 31, Major c ustomers/ d istributors 201 8 201 7 Ascend Technology Inc. ¹ ³ 26 % 21 % VTech Holdings Ltd. 25 % 30 % Nexty Electronics Corporation (previously named Tomen Electronics Corporation)¹ ² 11 % 12 % ¹ Distributor. ² Nexty Electronics sells the Company’s products to a limited number of customers; however none 10% three March 31, 2018 2017. ³ Ascend Technology sells the Company’s products to a limited number of customers; however none 10% three March 31, 2018 2017

Note G - Derivative Instruments

Note G - Derivative Instruments	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Derivative Instruments and Hedging Activities Disclosure [Text Block]	NOTE G—DERIVATIVE INSTRUMENTS The Company accounts for derivative instruments in accordance with FASB. ASC No. 815 815" To protect against the increase in value of forecasted foreign currency cash flows resulting from salary and lease payments of its Israeli facilities denominated in the Israeli currency, the New Israeli Shekels ("NIS"), during the year, the Company instituted a foreign currency cash flow hedging program. The Company hedges portions of the anticipated payroll and lease payments denominated in NIS for a period of one twelve 815 In accordance with ASC 815, March 31, 2018, no The effect of derivative instruments in cash flow hedging transactions on income and other comprehensive income ("OCI") for the three March 31, 2018 2017 Gains on Derivatives Recognized in OCI for the three months ended March 31, Unaudited 201 8 201 7 Foreign exchange forward and option contracts $ - $ 143 Gains ( l osses) r eclassified from OCI into i ncome for the three months ended March 31 , Unaudited Location 201 8 201 7 Foreign exchange forward and option contracts Operating expenses $ - $ 75

Note H - Contingencies

Note H - Contingencies	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	NOTE h—CONTINGENCIES From time to time, the Company may may may third no

Note I - Equity-based Compensat

Note I - Equity-based Compensation	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	NOTE i—EQUITY-BASED COMPENSATION Grants for the three March 31, 2018 March 31, 2017: The weighted average estimated fair value of employee restricted stock units (“RSUs”) granted during the three March 31, 2018 2017 $11.27 $9.51 3.70% 3.59% three March 31, 2018 2017, The weighted-average estimated fair value of employee stock options and stock appreciation rights ("SARs") granted during the three March 31, 2018 2017 $4.75 $2.97 Three months ended March 31, 201 8 2017 Volatility 46.24 % 37.69 % Risk-free interest rate 2.40 % 2.24 % Dividend yield 0 % 0 % Pre-vest cancellation rate 2.29 % 4.03 % Post-vest cancellation rate 3.40 % 3.45 % Suboptimal exercise factor 1.61 1.33 The expected life of employee stock options and SARs is impacted by all of the underlying assumptions used in the Company’s model. The binomial model assumes that employees’ exercise behavior is a function of the remaining contractual life of the stock option or SAR and the extent to which the stock option or SAR is in-the-money ( i.e. two three March 31, 2018 2017 6.27 4.24 Employee stock benefit plans As of March 31, 2018, two may three no may one March 31, 2018, 591,000 142,000 The table below presents a summary of information relating to the Company’s stock option, RSU and SAR grants pursuant to its equity incentive plans: Number of Options/SARs/ RSUs Weighted average exercise price Weighted average remaining contractual term (years) (3) Aggregate value (*) in thousands in thousands Outstanding at December 31, 2017 1,992 $ 5.02 Options granted 48 12.50 RSUs granted 513 - Options / SARs / RSUs cancelled/forfeited/expired (12 ) 8.91 Options / SARs exercised and RSUs vested (329 ) $ 2.39 Outstanding at March 31, 2018 (1) 2,212 $ 4.38 4.87 $ 16,502 Exercisable at March 31, 2018 (2) 814 $ 8.70 4.41 $ 2,585 (*) Calculation of aggregate intrinsic value is based on the share price of the Company’s common stock on March 31, 2018 ( $11.80 ( 1 2,120,000 March 31, 2018. January 1, 2012 50% ( 2 793,000 March 31, 2018. ( 3 not Additional information about stock options, SARs and RSUs outstanding and exercisable at March 31, 2018 $11.80 March 31, 2018) Exercisable Unexercisable Total Exercise prices Number of Options/ SARs / RSUs (in thousands) Weighted average exercise price Number of Options/ SARs / RSUs (in thousands) Weighted average exercise price Number of Options/ SARs / RSUs (in thousands) Weighted average exercise price Less than $11.80 766 $ 8.42 1,333 $ 1.35 2,098 $ 3.93 Above $11.80 48 $ 13.05 66 $ 12.45 114 $ 12.70 Total 814 $ 8.70 1,399 $ 1.88 2,212 $ 4.38 The Company’s aggregate equity-based compensation expense for the three March 31, 2018 2017 $1,699 $1,531, As of March 31, 2018, $8,389 2018 2022.

Note J - Pension Liability

Note J - Pension Liability	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Pension and Other Postretirement Benefits Disclosure [Text Block]	NOTE j—Pension Liability The information in this note represents the net periodic pension and post-retirement benefit costs and related components in accordance with FASB ASC No. 715 three March 31, 2017 2016 March 31, 201 8 201 7 Components of net periodic benefit cost: Service cost and amortization of loss $ 6 $ 6 Interest cost 4 3 Net periodic benefit cost $ 10 $ 9 The net pension liability as of March 31, 2018 $912.

Note K - Fair Value Measurement

Note K - Fair Value Measurements	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block]	NOTE k—FAIR VALUE MEASUREMENTS Assets and l iabilities m easured at f air v alue on a r ecurring b asis: The Company measures its cash equivalents, short-term deposits, marketable securities and foreign currency derivative contracts at fair value. Cash equivalents, short-term deposits and marketable securities are classified within Level 1 2 2 The following table provides information by value level for assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2018: Balance as of Fair v alue m easurements March 31, 201 8 Level 1 Level 2 Level 3 Description Assets Cash equivalents Money market mutual funds $ 1,245 $ 1,245 - - Short-term marketable securities: Corporate debt securities $ 23,161 - $ 23,161 - U.S. GSE securities $ 2,335 $ 2,335 Long-term marketable securities: U.S. GSE securities $ 20,290 - $ 20,290 - Corporate debt securities $ 51,115 - $ 51,115 - The following table provides information by value level for assets and liabilities that are measured at fair value on a recurring basis as of December 31, 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 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 - In addition to the assets and liabilities described above, the Company’s financial instruments also include cash and cash equivalents, restricted and short-term deposits, trade receivables, other accounts receivable, trade payables, accrued expenses and other payables. The fair value of these financial instruments was not March 31, 2018

Note L - Stockholders' Equity

Note L - Stockholders' Equity	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	NOTE l—STOCKHOLDERS’ EQUITY During the first three 2018, 102,312 $12.28 $1,256. March 31, 2018, 645,698 Repurchases of common stock are accounted for as treasury stock, and result in a reduction of stockholders’ equity. The Company reissues treasury shares pursuant to its stock purchase plan, upon exercise of options and upon vesting of restricted stock units. Reissuance of treasury shares is accounted for in accordance with ASC No. 505 30 During the first three 2018, 398,000 1993

Note M - Segment Information

Note M - Segment Information	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	NOTE M SEGMENT INFORMATION Description of segments: The Company operates under three The Company's segment information has been prepared in accordance with ASC 280, The Company's operating segments are as follows: Home, Office and 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. During 2017, 10% 50% 60% first three 2018 2017, 15% first three 2018 2017. 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 30% 24% first three 2018 2017, No 10% first three 2018 2017. SmartVoice - 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 HDClear products represented 6% 1% first three 2018 2017, No 10% first three 2018 2017. Segment data: The Company derives the results of its business segments directly from its internal management reporting system and by using certain allocation methods. The accounting policies the Company uses to derive business segment results are substantially the same as those the Company uses for consolidation of its financial statements. The CODM measures the performance of each business segment based on several metrics, including earnings from operations. The CODM uses these results, in part, to evaluate the performance of, and to assign resources to, each of the business segments. The Company does not Selected operating results information for each business segment was as follows for the three March 31, 2018 2017: Revenues Income (loss) from operations Three months ended March 31, 201 8 2017 201 8 201 7 Home $ 18,181 $ 20,955 $ 3,807 $ 3,342 Office 8,353 6,599 2,152 614 SmartVoice 1,577 379 (5,674 ) (5,017 ) Total $ 28,111 $ 27,933 $ 285 $ (1,061 ) The reconciliation of segment operating results information to the Company’s consolidated financial information was as follows: Three months ended March 31 , 201 8 201 7 Loss from operations $ 285 $ (1,061 ) Unallocated corporate, general and administrative expenses (519 ) (413 ) Equity-based compensation expenses (1,699 ) (1,531 ) Intangible assets amortization expenses (425 ) (425 ) Financial income, net 396 416 Total consolidated loss before taxes $ (1,962 ) $ (3,014 )

Note N - Accumulated Other Comp

Note N - Accumulated Other Comprehensive Income (Loss)	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Comprehensive Income (Loss) Note [Text Block]	NOTE N —ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in accumulated balances of other comprehensive income for the three March 31, 2018: Unrealized gains (losses) on available-for-sale marketable securities Unrealized gains (losses) on cash flow hedges Unrealized gains (losses) on components of defined benefit plans Unrealized losses on foreign currency translation Total Beginning balance $ (1,209 ) $ - $ (409 ) $ (256 ) $ (1,874 ) Other comprehensive income (loss) before reclassifications (662 ) - - 16 (646 ) Losses (gains) reclassified from accumulated other comprehensive income (loss) (2 ) - 5 - 3 Net current period other comprehensive income (loss) (664 ) - 5 16 (643 ) Ending balance $ (1,873 ) $ - $ (404 ) $ (240 ) $ (2,517 ) The following table provides details about reclassifications out of accumulated other comprehensive income for the three March 31, 2018: Details about a ccumulated o ther c omprehensive i ncome ( l oss) c omponents Losses ( g ains ) reclassified from a ccumulated o ther c omprehensive i ncome ( l oss) Affected l ine i tem in the s tatement of i ncome Gains on available-for-sale marketable securities $ (2) Financial income, net - Provision for income taxes (2) Total, net of income taxes Gains on cash flow hedges - Research and development - Sales and marketing - General and administrative - Total, before income taxes - Provision for income taxes - Total, net of income taxes Losses on components of defined benefit plans 3 Research and development 2 Sales and marketing 5 Total, before income taxes - Provision for income taxes 5 Total, net of income taxes Total reclassifications for the period $ 3 Total, net of income taxes

Note O - Government Grants

Note O - Government Grants	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Government Grants [Text Block]	NOTE O GOVERNMENT GRANTS Government grants received by the Company’s Israeli subsidiary relating to categories of operating expenditures are credited to the consolidated statements of income during the period during which the expenditure to which they relate is charged. Royalty and non-royalty-bearing grants from the Israeli Innovation Authority ("IIA") for funding certain approved research and development projects are recognized at the time when the Company’s Israeli subsidiary is entitled to such grants, on the basis of the related costs incurred, and are included as a deduction from research and development expenses, net. The Company recorded grants in the amount of $0.5 $0.1 three March 31, 2018 2017, The Company’s Israeli subsidiary is obligated to pay royalties amounting to 5% may not may six third

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
New Accounting Pronouncements, Policy [Policy Text Block]	Recent ly Adopted Accounting Pronouncements . In May 2014, 2014 09, 606 2014 09” January 1, 2018, 606, 606” 606 not 2018 606 2017 605, 605 606 March 31, 2018 $94. Under ASC 606, The Company determines revenue recognition through the following steps: ● identification of the contract with a customer; ● identification of the performance obligations in the contract; ● determination of the transaction price; ● allocation of the transaction price to the performance obligations in the contract; and ● recognition of revenue when, or as, the Company satisfies a performance obligation. The Company’s contracts with customers for the sale of products generally include one In accordance with the ASC 606 606 For the three months ended March 31, 2018 As Reported Prior to Adoption of ASC 606 Effect of Change Income statement Revenues $ 28,111 $ 27,157 $ 954 Cost of revenues 14,397 14,017 380 Gross margin: 13,714 13,140 574 Operating expenses: Research and development, net 8,998 8,998 - Sales and marketing 4,068 4,015 53 General and administrative 2,581 2,581 - Intangible assets amortization 425 425 - Total operating expenses: 16,072 16,019 53 Operating loss: (2,358 ) (2,879 ) 521 Financial income 396 396 - Income (loss) before taxes on income (1,962 ) (2,483 ) 521 Taxes on income 209 209 - Net income (1,753 ) (2,274 ) 521 March 31, 2018 As Reported Prior to Adoption of ASC 606 Effect of Change Balance Sheet Assets Trade receivables $ 15,910 $ 14,884 $ 1,026 Inventories 8,414 8,812 (398 ) Other accounts receivable and prepaid expenses 3,168 3,226 (58 ) Liabilities Accrued expenses and other accounts payable (2,190 ) (2,235 ) (45 ) Equity Accumulated deficit (109,265 ) (109,880 ) 615 In August 2016, 2016 15, 230 2016 15” 2016 15 zero 2016 15 January 1, 2018, not In November 2016, 2016 18, 230 December 15, 2017. January 1, 2018. Recent Accounting Pronouncements . In February 2016, 2016 02 842 not twelve twelve 842 840. January 1, 2019, January 1, 2019
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of the interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the dates of the interim condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Note A - Basis of Presentatio25

Note A - Basis of Presentation and Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2018
Notes Tables
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]	For the three months ended March 31, 2018 As Reported Prior to Adoption of ASC 606 Effect of Change Income statement Revenues $ 28,111 $ 27,157 $ 954 Cost of revenues 14,397 14,017 380 Gross margin: 13,714 13,140 574 Operating expenses: Research and development, net 8,998 8,998 - Sales and marketing 4,068 4,015 53 General and administrative 2,581 2,581 - Intangible assets amortization 425 425 - Total operating expenses: 16,072 16,019 53 Operating loss: (2,358 ) (2,879 ) 521 Financial income 396 396 - Income (loss) before taxes on income (1,962 ) (2,483 ) 521 Taxes on income 209 209 - Net income (1,753 ) (2,274 ) 521 March 31, 2018 As Reported Prior to Adoption of ASC 606 Effect of Change Balance Sheet Assets Trade receivables $ 15,910 $ 14,884 $ 1,026 Inventories 8,414 8,812 (398 ) Other accounts receivable and prepaid expenses 3,168 3,226 (58 ) Liabilities Accrued expenses and other accounts payable (2,190 ) (2,235 ) (45 ) Equity Accumulated deficit (109,265 ) (109,880 ) 615

Note B - Inventories (Tables)

Note B - Inventories (Tables)	3 Months Ended
	Mar. 31, 2018
Notes Tables
Schedule of Inventory, Current [Table Text Block]	March 3 1 , 201 8 December 31, 201 7 (Unaudited) (Audited) Work-in-process $ 4,370 $ 3,577 Finished goods 4,044 5,845 $ 8,414 $ 9,422

Note C - Net Earnings (Loss) 27

Note C - Net Earnings (Loss) Per Share (Tables)	3 Months Ended
	Mar. 31, 2018
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three months ended March 31, 201 8 201 7 (Unaudited) Net loss $ (1,753 ) $ (2,866 ) Loss per share: Basic $ (0.08 ) $ (0.13 ) Diluted $ (0.08 ) $ (0.13 ) Weighted average number of shares of common stock outstanding during the period used to compute basic net loss per share (in thousands) 22,678 22,102 Incremental shares attributable to exercise of outstanding options, stock appreciation rights and restricted stock units (assuming proceeds would be used to purchase treasury stock) (in thousands) - - Weighted average number of shares of common stock used to compute diluted net loss per share (in thousands) 22,678 22,102

Note D - Marketable Securitie28

Note D - Marketable Securities and Time Deposits (Tables)	3 Months Ended
	Mar. 31, 2018
Notes Tables
Available-for-sale Securities [Table Text Block]	Amortized cost Unrealized losses, net Fair value March 31, 201 8 December 31, 201 7 March 31, 201 8 December 31, 201 7 March 31, 201 8 December 31, 201 7 (Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited) Short-term deposits 5,465 $ 5,481 $ - $ - $ 5,465 $ 5,481 Long-term deposits 5,041 5,013 - - 5,041 5,013 U.S. GSE securities 23,059 22,359 (434 ) (315 ) 22,625 22,044 Corporate obligations 75,715 75,722 (1,439 ) (894 ) 74,276 74,828 $ 109,280 $ 108,575 $ (1,873 ) $ (1,209 ) $ 107,407 $ 107,366
Investments Classified by Contractual Maturity Date [Table Text Block]	Unrealized gains (losses) Amortized cost Gains Losses Fair value Due in one year or less $ 31,048 $ 1 $ (88 ) $ 30,961 Due after one year to five years 78,232 1 (1,787 ) 76,446 $ 109,280 $ 2 $ (1,875 ) $ 107,407

Note F - Significant Customers

Note F - Significant Customers (Tables)	3 Months Ended
	Mar. 31, 2018
Customer Concentration Risk [Member]
Notes Tables
Schedules of Concentration of Risk, by Risk Factor [Table Text Block]	Three months ended March 31, Major c ustomers/ d istributors 201 8 201 7 Ascend Technology Inc. ¹ ³ 26 % 21 % VTech Holdings Ltd. 25 % 30 % Nexty Electronics Corporation (previously named Tomen Electronics Corporation)¹ ² 11 % 12 %

Note G - Derivative Instrumen30

Note G - Derivative Instruments (Tables)	3 Months Ended
	Mar. 31, 2018
Notes Tables
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block]	Gains on Derivatives Recognized in OCI for the three months ended March 31, Unaudited 201 8 201 7 Foreign exchange forward and option contracts $ - $ 143
Derivative Instruments, Gain (Loss) [Table Text Block]	Gains ( l osses) r eclassified from OCI into i ncome for the three months ended March 31 , Unaudited Location 201 8 201 7 Foreign exchange forward and option contracts Operating expenses $ - $ 75

Note I - Equity-based Compens31

Note I - Equity-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2018
Notes Tables
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	Three months ended March 31, 201 8 2017 Volatility 46.24 % 37.69 % Risk-free interest rate 2.40 % 2.24 % Dividend yield 0 % 0 % Pre-vest cancellation rate 2.29 % 4.03 % Post-vest cancellation rate 3.40 % 3.45 % Suboptimal exercise factor 1.61 1.33
Share-based Compensation, Activity [Table Text Block]	Number of Options/SARs/ RSUs Weighted average exercise price Weighted average remaining contractual term (years) (3) Aggregate value (*) in thousands in thousands Outstanding at December 31, 2017 1,992 $ 5.02 Options granted 48 12.50 RSUs granted 513 - Options / SARs / RSUs cancelled/forfeited/expired (12 ) 8.91 Options / SARs exercised and RSUs vested (329 ) $ 2.39 Outstanding at March 31, 2018 (1) 2,212 $ 4.38 4.87 $ 16,502 Exercisable at March 31, 2018 (2) 814 $ 8.70 4.41 $ 2,585
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]	Exercisable Unexercisable Total Exercise prices Number of Options/ SARs / RSUs (in thousands) Weighted average exercise price Number of Options/ SARs / RSUs (in thousands) Weighted average exercise price Number of Options/ SARs / RSUs (in thousands) Weighted average exercise price Less than $11.80 766 $ 8.42 1,333 $ 1.35 2,098 $ 3.93 Above $11.80 48 $ 13.05 66 $ 12.45 114 $ 12.70 Total 814 $ 8.70 1,399 $ 1.88 2,212 $ 4.38

Note J - Pension Liability (Tab

Note J - Pension Liability (Tables)	3 Months Ended
	Mar. 31, 2018
Notes Tables
Schedule of Net Benefit Costs [Table Text Block]	March 31, 201 8 201 7 Components of net periodic benefit cost: Service cost and amortization of loss $ 6 $ 6 Interest cost 4 3 Net periodic benefit cost $ 10 $ 9

Note K - Fair Value Measureme33

Note K - Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2018
Notes Tables
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	Balance as of Fair v alue m easurements March 31, 201 8 Level 1 Level 2 Level 3 Description Assets Cash equivalents Money market mutual funds $ 1,245 $ 1,245 - - Short-term marketable securities: Corporate debt securities $ 23,161 - $ 23,161 - U.S. GSE securities $ 2,335 $ 2,335 Long-term marketable securities: U.S. GSE securities $ 20,290 - $ 20,290 - Corporate debt securities $ 51,115 - $ 51,115 - 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 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 -

Note M - Segment Information (T

Note M - Segment Information (Tables)	3 Months Ended
	Mar. 31, 2018
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Revenues Income (loss) from operations Three months ended March 31, 201 8 2017 201 8 201 7 Home $ 18,181 $ 20,955 $ 3,807 $ 3,342 Office 8,353 6,599 2,152 614 SmartVoice 1,577 379 (5,674 ) (5,017 ) Total $ 28,111 $ 27,933 $ 285 $ (1,061 )
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]	Three months ended March 31 , 201 8 201 7 Loss from operations $ 285 $ (1,061 ) Unallocated corporate, general and administrative expenses (519 ) (413 ) Equity-based compensation expenses (1,699 ) (1,531 ) Intangible assets amortization expenses (425 ) (425 ) Financial income, net 396 416 Total consolidated loss before taxes $ (1,962 ) $ (3,014 )

Note N - Accumulated Other Co35

Note N - Accumulated Other Comprehensive Income (Loss) (Tables)	3 Months Ended
	Mar. 31, 2018
Notes Tables
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]	Unrealized gains (losses) on available-for-sale marketable securities Unrealized gains (losses) on cash flow hedges Unrealized gains (losses) on components of defined benefit plans Unrealized losses on foreign currency translation Total Beginning balance $ (1,209 ) $ - $ (409 ) $ (256 ) $ (1,874 ) Other comprehensive income (loss) before reclassifications (662 ) - - 16 (646 ) Losses (gains) reclassified from accumulated other comprehensive income (loss) (2 ) - 5 - 3 Net current period other comprehensive income (loss) (664 ) - 5 16 (643 ) Ending balance $ (1,873 ) $ - $ (404 ) $ (240 ) $ (2,517 )
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]	Details about a ccumulated o ther c omprehensive i ncome ( l oss) c omponents Losses ( g ains ) reclassified from a ccumulated o ther c omprehensive i ncome ( l oss) Affected l ine i tem in the s tatement of i ncome Gains on available-for-sale marketable securities $ (2) Financial income, net - Provision for income taxes (2) Total, net of income taxes Gains on cash flow hedges - Research and development - Sales and marketing - General and administrative - Total, before income taxes - Provision for income taxes - Total, net of income taxes Losses on components of defined benefit plans 3 Research and development 2 Sales and marketing 5 Total, before income taxes - Provision for income taxes 5 Total, net of income taxes Total reclassifications for the period $ 3 Total, net of income taxes

Note A - Basis of Presentatio36

Note A - Basis of Presentation and Summary of Significant Accounting Policies (Details Textual) $ in Thousands	Mar. 31, 2018USD ($)
Cumulative Effect of New Accounting Principle in Period of Adoption	$ 94	[1]
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	94	[1]
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	$ 94
[1]	Resulting from adoption of ASC 606.

Note A - Basis of Presentatio37

Note A - Basis of Presentation and Summary of Significant Accounting Policies - Impact of New Standard on Consolidated Balance Sheet and Consolidated Statements of Operations (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Revenues		$ 28,111	$ 27,933
Cost of revenues	[1]	14,397	15,686
Gross margin:		13,714	12,247
Research and development	[2]	8,998	9,190
Sales and marketing	[3]	4,068	3,575
General and administrative	[4]	2,581	2,487
Intangible assets amortization		425	425
Total operating expenses:		16,072	15,677
Operating loss:		(2,358)	(3,430)
Gains on available-for-sale marketable securities		396	416
Income (loss) before taxes on income		(1,962)	(3,014)
Taxes on income		209	148
Net income		(1,753)	$ (2,866)
Assets
Trade receivables		15,910		$ 13,416
Inventories		8,414		9,422
Other accounts receivable and prepaid expenses		3,168		3,167
Liabilities
Accrued expenses and other accounts payable		(2,190)		(2,888)
STOCKHOLDERS’ EQUITY:
Accumulated deficit		(109,265)		$ (104,842)
Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Revenues		27,157
Cost of revenues		14,017
Gross margin:		13,140
Research and development		8,998
Sales and marketing		4,015
General and administrative		2,581
Intangible assets amortization		425
Total operating expenses:		16,019
Operating loss:		(2,879)
Gains on available-for-sale marketable securities		396
Income (loss) before taxes on income		(2,483)
Taxes on income		209
Net income		(2,274)
Assets
Trade receivables		14,884
Inventories		8,812
Other accounts receivable and prepaid expenses		3,226
Liabilities
Accrued expenses and other accounts payable		(2,235)
STOCKHOLDERS’ EQUITY:
Accumulated deficit		(109,880)
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]
Revenues		954
Cost of revenues		380
Gross margin:		574
Research and development
Sales and marketing		53
General and administrative
Intangible assets amortization
Total operating expenses:		53
Operating loss:		521
Gains on available-for-sale marketable securities
Income (loss) before taxes on income		521
Taxes on income
Net income		521
Assets
Trade receivables		1,026
Inventories		(398)
Other accounts receivable and prepaid expenses		(58)
Liabilities
Accrued expenses and other accounts payable		(45)
STOCKHOLDERS’ EQUITY:
Accumulated deficit		$ 615
[1]	Includes equity-based compensation expense in the amount of $98 and $97 for the three months ended March 31, 2018 and 2017, respectively.
[2]	Includes equity-based compensation expense in the amount of $652 and $616 for the three months ended March 31, 2018 and 2017, respectively.
[3]	Includes equity-based compensation expense in the amount of $406 and $300 for the three months ended March 31, 2018 and 2017, respectively.
[4]	Includes equity-based compensation expense in the amount of $543 and $518 for the three months ended March 31, 2018 and 2017, respectively.

Note B - Inventories (Details T

Note B - Inventories (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Inventory Write-down	$ 49	$ 59

Note B - Inventories - Componen

Note B - Inventories - Components of Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Work-in-process	$ 4,370	$ 3,577
Finished goods	4,044	5,845
	$ 8,414	$ 9,422

Note C - Net Earnings (Loss) 40

Note C - Net Earnings (Loss) Per Share - Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net loss	$ (1,753)	$ (2,866)
Net loss per share:
Basic (in dollars per share)	$ (0.08)	$ (0.13)
Diluted (in dollars per share)	$ (0.08)	$ (0.13)
Basic (in shares)	22,678	22,102
Incremental shares attributable to exercise of outstanding options, stock appreciation rights and restricted stock units (assuming proceeds would be used to purchase treasury stock) (in thousands) (in shares)
Weighted average number of shares of common stock used to compute diluted net loss per share (in thousands) (in shares)	22,678	22,102

Note D - Marketable Securitie41

Note D - Marketable Securities and Time Deposits (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Total	$ 0
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total	93,813
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax, Total	1,875
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	1,319
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	556
Proceeds from Maturities, Prepayments and Calls of Debt Securities, Available-for-sale	1,855	$ 4,779
Proceeds from Sale of Available-for-sale Securities, Total	500	3,089
Debt Securities, Available-for-sale, Realized Gain (Loss), Total	2	$ (47)
Corporate Debt Securities [Member]
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities, Total	$ 0

Note D - Marketable Securitie42

Note D - Marketable Securities and Time Deposits - Marketable Securities and Time Deposits (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Marketable securities and time deposits, amortized cost	$ 109,280	$ 108,575
Marketable securities and time deposits, unrealized gains (losses), net	(1,873)	(1,209)
Marketable securities and time deposits, estimated fair value	107,407	107,366
Short-term Deposits [Member]
Marketable securities and time deposits, amortized cost	5,465	5,481
Marketable securities and time deposits, unrealized gains (losses), net
Marketable securities and time deposits, estimated fair value	5,465	5,481
Long-Term Deposit [Member]
Marketable securities and time deposits, amortized cost	5,041	5,013
Marketable securities and time deposits, unrealized gains (losses), net
Marketable securities and time deposits, estimated fair value	5,041	5,013
US Government-sponsored Enterprises Debt Securities [Member]
Marketable securities and time deposits, amortized cost	23,059	22,359
Marketable securities and time deposits, unrealized gains (losses), net	(434)	(315)
Marketable securities and time deposits, estimated fair value	22,625	22,044
Corporate Debt Securities [Member]
Marketable securities and time deposits, amortized cost	75,715	75,722
Marketable securities and time deposits, unrealized gains (losses), net	(1,439)	(894)
Marketable securities and time deposits, estimated fair value	$ 74,276	$ 74,828

Note D - Marketable Securitie43

Note D - Marketable Securities and Time Deposits - Marketable Debt Securities by Contractual Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Marketable debt securities, amortized cost	$ 109,280	$ 108,575
Marketable debt securities, estimated fair value	107,407	$ 107,366
Debt Securities [Member]
Marketable debt securities, amortized cost	109,280
Marketable debt securities, unrealized gains	2
Marketable debt securities, unrealized losses	(1,875)
Marketable debt securities, estimated fair value	107,407
Debt Securities [Member] | Due in One Year or Less [Member]
Marketable debt securities, amortized cost	31,048
Marketable debt securities, unrealized gains	1
Marketable debt securities, unrealized losses	(88)
Marketable debt securities, estimated fair value	30,961
Debt Securities [Member] | Due after One Year to Five Years [Member]
Marketable debt securities, amortized cost	78,232
Marketable debt securities, unrealized gains	1
Marketable debt securities, unrealized losses	(1,787)
Marketable debt securities, estimated fair value	$ 76,446

Note E - Taxes on Income (Detai

Note E - Taxes on Income (Details Textual) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Unrecognized Tax Benefits, Ending Balance	$ 1,132	$ 1,273
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total	$ 80	$ 68

Note F - Significant Customer45

Note F - Significant Customers (Details Textual) - Customer Concentration Risk [Member] - Sales Revenue, Net [Member] xbrli-pure in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Customers to Which the Company's Products Are Sold Through Nexty Electronics [Member]
Number of Major Customers	0	0
Customers to Which the Company's Products Are Sold Through Ascend Technology [Member]
Number of Major Customers	0	0

Note F - Significant Customer46

Note F - Significant Customers - Sales to Major Customers (Distributors) As a Percentage of Total Revenues (Details) - Customer Concentration Risk [Member] - Sales Revenue, Net [Member]		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017
Ascend Technology Inc [Member]
Concentration risk, percentage	[1],[2]	26.00%	21.00%
VTech Holdings Ltd [Member]
Concentration risk, percentage		25.00%	30.00%
Nexty Electronics Corporation [Member]
Concentration risk, percentage	[2],[3]	11.00%	12.00%
[1]	Ascend Technology sells the Company's products to a limited number of customers; however none of those customers accounted for more than 10% of the Company's total revenues for the three months periods ended March 31, 2018 and 2017 .
[2]	Distributor.
[3]	Nexty Electronics sells the Company's products to a limited number of customers; however none of those customers accounted for more than 10% of the Company's total revenues for the three months periods ended March 31, 2018 and 2017.

Note G - Derivative Instrumen47

Note G - Derivative Instruments (Details Textual) $ in Thousands	Mar. 31, 2018USD ($)
Foreign Exchange Option [Member]
Price Risk Cash Flow Hedge Asset, at Fair Value	$ 0

Note G - Derivative Instrumen48

Note G - Derivative Instruments - Effect of Derivative Instruments in Cash Flow Hedging Transactions on Income and Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Foreign Exchange Forward Contracts and Put Options [Member]
Foreign exchange forward and option contracts		$ 143

Note G - Derivative Instrumen49

Note G - Derivative Instruments - Gains (Losses) on Derivatives Reclassified From OCI to Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Foreign Exchange Forward Contracts and Put Options [Member]
Foreign exchange forward and option contracts		$ 75

Note I - Equity-based Compens50

Note I - Equity-based Compensation (Details Textual) $ / shares in Units, $ in Thousands	3 Months Ended		75 Months Ended
	Mar. 31, 2018USD ($)$ / sharesshares	Mar. 31, 2017USD ($)$ / shares	Mar. 31, 2018USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Number of Equity Incentive Plans from Which Future Equity Awards May Be Granted	2		2
Share-based Compensation Arrangement by Share-based Payment Award Number of Expired Equity Incentive Plans	3		3
Share-based Compensation Arrangement by Share-based Payment Award Number of Employee Purchase Plans	1		1
Allocated Share-based Compensation Expense, Total | $	$ 1,699	$ 1,531
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $	$ 8,389		$ 8,389
Common Stock [Member]
Share Price | $ / shares	$ 11.80		$ 11.80
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	591,000		591,000
Equity Incentive Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	142,000		142,000
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares	$ 11.27	$ 9.51
Share-based Compensation Arrangement by Share-based Payment Award, Weighted Average Pre Vest Cancel Rate	3.70%	3.59%
Stock Appreciation Rights (SARs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares	$ 4.75	$ 2.97
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	6 years 98 days	4 years 87 days
Stock Appreciation Rights (SARs) [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares to be Issued Upon Exercise of Outstanding Awards	2,120,000		2,120,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant as Percentage of Company Outstanding Common Stock			50.00%
Share-based Compensation Arrangement by Share-based Payment Award, Options and Stock Appreciation Rights, Exercisable, Number	793,000		793,000

Note I - Equity-based Compens51

Note I - Equity-based Compensation - Weighted-average Fair Value Assumptions (Details)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Volatility	46.24%	37.69%
Risk-free interest rate	2.40%	2.24%
Dividend yield	0.00%	0.00%
Pre-vest cancellation rate	2.29%	4.03%
Post-vest cancellation rate	3.40%	3.45%
Suboptimal exercise factor	1.61%	1.33%

Note I - Equity-based Compens52

Note I - Equity-based Compensation - Stock Options, SARs and RSUs Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)$ / sharesshares
Outstanding (in shares)	1,992
Outstanding, weighted average exercise price (in dollars per share) | $ / shares	$ 5.02
Options granted (in shares)	48
Options granted, weighted average exercise price (in dollars per share) | $ / shares	$ 12.50
Options / SARs / RSUs cancelled/forfeited/expired (in shares)	(12)
Options / SARs / RSUs cancelled/forfeited/expired, weighted average exercise price (in dollars per share) | $ / shares	$ 8.91
Options / SARs exercised and RSUs vested (in shares)	(329)
Options / SARs exercised and RSUs vested, weighted average exercise price (in dollars per share) | $ / shares	$ 2.39
Outstanding (in shares)	2,212	[1]
Outstanding, weighted average exercise price (in dollars per share) | $ / shares	$ 4.38	[1]
Outstanding, weighted average remaining contractual term (Year)	4 years 317 days	[1],[2]
Outstanding, aggregate value | $	$ 16,502	[1],[3]
Exercisable (in shares)	814	[4]
Exercisable, weighted average exercise price (in dollars per share) | $ / shares	$ 8.70	[4]
Exercisable, weighted average remaining contractual term (Year)	4 years 149 days	[2],[4]
Exercisable, aggregate value | $	$ 2,585	[3],[4]
Restricted Stock Units (RSUs) [Member]
Non-option instruments granted (in shares)	513
[1]	Due to the ceiling imposed on the SAR grants, the outstanding amount above can be exercised for a maximum of 2,120,000 shares of the Company's common stock as of March 31, 2018. SAR grants made on or after January 1, 2012 are convertible for a maximum number of shares of the Company's common stock equal to 50% of the SARs subject to the grant.
[2]	Calculation of weighted average remaining contractual term does not include RSUs that were granted, which have indefinite contractual term.
[3]	Calculation of aggregate intrinsic value is based on the share price of the Company's common stock on March 31, 2018 ($11.80 per share).
[4]	Due to the ceiling imposed on the SAR grants, the exercisable amount above can be exercised for a maximum of 793,000 shares of the Company's common stock as of March 31, 2018.

Note I - Equity-based Compens53

Note I - Equity-based Compensation - Company's Stock Options and SAR Units Outstanding and Exercisable (Details) shares in Thousands	Mar. 31, 2018$ / sharesshares
Number of Options/ SARs / RSUs - Exercisable (in shares) | shares	814
Weighted Average Exercise Price - Exercisable (in dollars per share) | $ / shares	$ 8.70
Number of Options/ SARs / RSUs - Unexercisable (in shares) | shares	1,399
Weighted Average Exercise Price - Unexercisable (in dollars per share) | $ / shares	$ 1.88
Number of Options/ SARs / RSUs (in shares) | shares	2,212
Weighted Average Exercise Price (in dollars per share) | $ / shares	$ 4.38
Range 1 [Member]
Number of Options/ SARs / RSUs - Exercisable (in shares) | shares	766
Weighted Average Exercise Price - Exercisable (in dollars per share) | $ / shares	$ 8.42
Number of Options/ SARs / RSUs - Unexercisable (in shares) | shares	1,333
Weighted Average Exercise Price - Unexercisable (in dollars per share) | $ / shares	$ 1.35
Number of Options/ SARs / RSUs (in shares) | shares	2,098
Weighted Average Exercise Price (in dollars per share) | $ / shares	$ 3.93
Range 2 [Member]
Number of Options/ SARs / RSUs - Exercisable (in shares) | shares	48
Weighted Average Exercise Price - Exercisable (in dollars per share) | $ / shares	$ 13.05
Number of Options/ SARs / RSUs - Unexercisable (in shares) | shares	66
Weighted Average Exercise Price - Unexercisable (in dollars per share) | $ / shares	$ 12.45
Number of Options/ SARs / RSUs (in shares) | shares	114
Weighted Average Exercise Price (in dollars per share) | $ / shares	$ 12.70

Note J - Pension Liability (Det

Note J - Pension Liability (Details Textual) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Liability, Defined Benefit Pension Plan, Noncurrent	$ 912	$ 883

Note J - Pension Liability - Co

Note J - Pension Liability - Components of Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Components of net periodic benefit cost:
Service cost and amortization of loss	$ 6	$ 6
Interest cost	4	3
Net periodic benefit cost	$ 10	$ 9

Note K - Fair Value Measureme56

Note K - Fair Value Measurements - Fair Value Measurements of Assets and Liabilities on Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Money Market Funds [Member]
Money market mutual funds	$ 1,245	$ 2,998
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Money market mutual funds	1,245	2,998
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
Corporate Debt Securities [Member]
Short-term securities	23,161	18,430
Long-term securities	51,115	56,398
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	23,161	18,430
Long-term securities	51,115	56,398
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Short-term securities
Long-term securities
US Government-sponsored Enterprises Debt Securities [Member]
Short-term securities	2,335	786
Long-term securities	20,290	21,258
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	2,335	786
Long-term securities	20,290	21,258
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Short-term securities
Long-term securities

Note L - Stockholders' Equity (

Note L - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Treasury Stock, Shares, Acquired	102,312
Treasury Stock Acquired, Average Cost Per Share	$ 12.28
Treasury Stock, Value, Acquired, Cost Method	$ 1,256	$ 1,313
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased	645,698
Stock Issued During Period, Shares, Employee Stock Purchase Plans and Exercise of Share-based Awards	398,000

Note M - Segment Information (D

Note M - Segment Information (Details Textual)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Number of Reportable Segments	3
Product Concentration Risk [Member] | Sales Revenue, Net [Member] | Home [Member] | Telephony [Member]
Concentration Risk, Percentage	50.00%	60.00%
Product Concentration Risk [Member] | Sales Revenue, Net [Member] | Home [Member] | Smart Home [Member]
Concentration Risk, Percentage	15.00%	15.00%
Product Concentration Risk [Member] | Sales Revenue, Net [Member] | Office [Member] | VoIP [Member]
Concentration Risk, Percentage	30.00%	24.00%
Product Concentration Risk [Member] | Sales Revenue, Net [Member] | SmartVoice [Member] | HDClear [Member]
Concentration Risk, Percentage	6.00%	1.00%

Note M - Segment Information -

Note M - Segment Information - Selected Operating Results (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues	$ 28,111	$ 27,933
Loss from operations	285	(1,061)
Home [Member]
Revenues	18,181	20,955
Loss from operations	3,807	3,342
Office [Member]
Revenues	8,353	6,599
Loss from operations	2,152	614
SmartVoice [Member]
Revenues	1,577	379
Loss from operations	$ (5,674)	$ (5,017)

Note M - Segment Information 60

Note M - Segment Information - Reconciliation of Segment Operating Results (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Loss from operations	$ 285	$ (1,061)
Unallocated corporate, general and administrative expenses	(519)	(413)
Equity-based compensation expenses	(1,699)	(1,531)
Intangible assets amortization expenses	(425)	(425)
Gains on available-for-sale marketable securities	396	416
Total consolidated loss before taxes	$ (1,962)	$ (3,014)

Note N - Accumulated Other Co61

Note N - Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Balance	$ 146,950	$ 145,547
Net current period other comprehensive income (loss)	(643)	315
Balance	146,250	144,457
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
Balance	(1,209)
Other comprehensive income (loss) before reclassifications	(662)
Losses (gains) reclassified from accumulated other comprehensive income (loss)	(2)
Net current period other comprehensive income (loss)	(664)
Balance	(1,873)
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]
Balance
Other comprehensive income (loss) before reclassifications
Losses (gains) reclassified from accumulated other comprehensive income (loss)
Net current period other comprehensive income (loss)
Balance
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Balance	(409)
Other comprehensive income (loss) before reclassifications
Losses (gains) reclassified from accumulated other comprehensive income (loss)	5
Net current period other comprehensive income (loss)	5
Balance	(404)
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Balance	(256)
Other comprehensive income (loss) before reclassifications	16
Losses (gains) reclassified from accumulated other comprehensive income (loss)
Net current period other comprehensive income (loss)	16
Balance	(240)
AOCI Attributable to Parent [Member]
Balance	(1,874)	(1,852)
Other comprehensive income (loss) before reclassifications	(646)
Losses (gains) reclassified from accumulated other comprehensive income (loss)	3
Net current period other comprehensive income (loss)	(643)
Balance	$ (2,517)	$ (1,537)

Note N - Accumulated Other Co62

Note N - Accumulated Other Comprehensive Income (Loss) - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017
Gains on available-for-sale marketable securities		$ 396	$ 416
Net loss		(1,753)	(2,866)
Research and development	[1]	8,998	9,190
Sales and marketing	[2]	4,068	3,575
General and administrative	[3]	2,581	$ 2,487
Reclassification out of Accumulated Other Comprehensive Income [Member]
Net loss		3
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Gains on available-for-sale marketable securities		(2)
Net loss		(2)
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Net loss
Research and development
Sales and marketing
General and administrative
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Net loss		5
Research and development		3
Sales and marketing		2
General and administrative		$ 5
[1]	Includes equity-based compensation expense in the amount of $652 and $616 for the three months ended March 31, 2018 and 2017, respectively.
[2]	Includes equity-based compensation expense in the amount of $406 and $300 for the three months ended March 31, 2018 and 2017, respectively.
[3]	Includes equity-based compensation expense in the amount of $543 and $518 for the three months ended March 31, 2018 and 2017, respectively.

Note O - Government Grants (Det

Note O - Government Grants (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Financial Grants in Support of Research and Development	$ 0.5	$ 0.1
Financial Grants in Support of Research and Development, Royalty Obligation	5.00%