DSP (DSPG) 10-Q 9 Nov 18 2018 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 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	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding (in shares)		22,196,248
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
CURRENT ASSETS:
Cash and cash equivalents	$ 11,359	$ 21,324
Restricted deposits	503	524
Marketable securities and short-term deposits	34,410	24,697
Trade receivables	21,448	13,416
Other accounts receivable and prepaid expenses	2,843	3,167
Inventories	8,247	9,422
TOTAL CURRENT ASSETS	78,810	72,550
PROPERTY AND EQUIPMENT, NET	2,854	3,184
NON-CURRENT ASSETS:
Long-term marketable securities and deposits	73,398	82,669
Long-term prepaid expenses and lease deposits	1,642	1,541
Deferred income taxes	855	1,043
Severance pay fund	14,755	15,190
Intangible assets, net	1,503	2,779
Goodwill	6,243	6,243
TOTAL NON-CURRENT ASSETS	98,396	109,465
TOTAL ASSETS	180,060	185,199
CURRENT LIABILITIES:
Trade payables	9,393	8,660
Accrued compensation and benefits	7,702	8,699
Income tax accruals and payables	857	1,232
Accrued expenses and other accounts payable	3,783	2,888
TOTAL CURRENT LIABILITIES	21,735	21,479
NON-CURRENT LIABILITIES:
Deferred income taxes	146	424
Accrued severance pay	14,944	15,463
Accrued pensions	868	883
TOTAL NON-CURRENT LIABILITIES	15,958	16,770
Equity
Common stock, $ 0.001 par value - Authorized shares: 50,000,000 shares at September 30, 2018 and December 31, 2017; Issued and outstanding shares: 22,332,016 and 22,432,660 shares at September 30, 2018 and December 31, 2017, respectively	22	22
Additional paid-in capital	377,162	372,041
Treasury stock at cost	(121,286)	(118,397)
Accumulated other comprehensive loss	(2,658)	(1,874)
Accumulated deficit	(110,873)	(104,842)
TOTAL STOCKHOLDERS’ EQUITY	142,367	146,950
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 180,060	$ 185,199

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Sep. 30, 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)	22,332,016	22,432,660
Common stock, outstanding (in shares)	22,332,016	22,432,660

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues		$ 32,619	$ 34,277	$ 91,381	$ 93,511
Cost of revenues (1)	[1]	16,315	18,270	46,311	50,760
Gross profit		16,304	16,007	45,070	42,751
Operating expenses:
Research and development, net (2)	[2]	9,614	9,214	27,503	27,565
Sales and marketing (3)	[3]	3,640	3,635	11,468	10,640
General and administrative (4)	[4]	2,362	2,483	7,612	7,342
Intangible assets amortization		425	425	1,276	1,275
Total operating expenses		16,041	15,757	47,859	46,822
Operating income (loss)		263	250	(2,789)	(4,071)
Financial income		492	382	1,291	1,216
Income (loss) before taxes on income		755	632	(1,498)	(2,855)
Taxes on income (tax benefit)		350	54	139	19
Net income (loss)		$ 405	$ 578	$ (1,637)	$ (2,874)
Income (loss) per share:
Basic (in dollars per share)		$ 0.02	$ 0.03	$ (0.07)	$ (0.13)
Diluted (in dollars per share)		$ 0.02	$ 0.02	$ (0.07)	$ (0.13)
Weighted average number of shares used in per share computations of net earnings (loss) per share:
Basic (in shares)		22,449	22,276	22,603	22,186
Diluted (in shares)		23,338	23,243	22,603	22,186
[1]	Includes equity-based compensation expense in the amount of $114 and $84 for the three months ended September 30, 2018 and 2017, and $320 and $275 for the nine months ended September 30, 2018 and 2017, respectively.
[2]	Includes equity-based compensation expense in the amount of $781 and $576 for the three months ended September 30, 2018 and 2017, respectively; and $2,134 and $1,815 for the nine months ended September 30, 2018 and 2017, respectively.
[3]	Includes equity-based compensation expense in the amount of $283 and $273 for the three months ended September 30, 2018 and 2017, respectively; and $954 and $870 for the nine months ended September 30, 2018 and 2017, respectively.
[4]	Includes equity-based compensation expense in the amount of $574 and $505 for the three months ended September 30, 2018 and 2017, respectively; and $1,703 and $1,566 for the nine months ended September 30, 2018 and 2017, respectively.

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Operations (Unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Equity-based compensation expense included in cost of revenues	$ 114	$ 84	$ 320	$ 275
Equity-based compensation expenses included in research and development, net	781	576	2,134	1,815
Equity-based compensation expense included in sales and marketing	283	273	954	870
Equity-based compensation expense included in general and administrative	$ 574	$ 505	$ 1,703	$ 1,566

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net income	$ 405	$ 578	$ (1,637)	$ (2,874)
Available-for-sale securities:
Changes in unrealized (losses) gains	26	(61)	(797)	299
Reclassification adjustments for losses included in net loss	(1)	1	36	59
Net change	25	(60)	(761)	358
Cash flow hedges:
Changes in unrealized (losses) gains	13	(29)	(16)	163
Reclassification adjustments for (gains) losses included in net loss	7	(19)	16	(172)
Net change	20	(48)		(9)
Change in unrealized components of defined benefit plans:
Amortization of actuarial loss and prior service benefit	5	6	15	16
Foreign currency translation adjustments, net	(10)	35	(38)	29
Net current period other comprehensive income (loss)	40	(67)	(784)	394
Comprehensive loss	445	511	(2,421)	(2,480)
Net income	$ 405	$ 578	$ (1,637)	$ (2,874)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net income	$ (1,637)	$ (2,874)
Adjustments required to reconcile net income to net cash provided by operating activities:
Depreciation	1,255	1,355
Equity-based compensation expenses related to employees’ stock options, SARs and RSUs	5,111	4,526
Realized losses from sale of marketable securities, net	36	59
Capital loss from sale and disposal of property and equipment		19
Amortization of intangible assets	1,276	1,275
Accrued interest and amortization of premium on marketable securities and deposits	548	386
Change in operating assets and liabilities:
Deferred income tax assets and liabilities, net	(92)	(56)
Trade receivables, net	(8,067)	(858)
Other accounts receivable and prepaid expenses	305	(801)
Inventories	1,146	(912)
Long-term prepaid expenses and lease deposits	(123)	(154)
Trade payables	737	(554)
Accrued compensation and benefits	1,038	719
Income tax accruals	(366)	(231)
Accrued expenses and other accounts payable	849	(659)
Accrued severance pay, net	(9)	124
Accrued pensions	28	14
Net cash provided by operating activities	2,035	1,379
Cash flows from investing activities:
Purchase of marketable securities	(18,992)	(28,812)
Purchase of short-term deposits	(5,000)	(3,000)
Proceeds from maturity of marketable securities	14,399	18,474
Proceeds from sales of marketable securities	4,810	12,988
Proceeds from redemption of short-term deposits	3,000	425
Purchases of property and equipment	(946)	(715)
Other investing activities	(104)
Net cash used in investing activities	(2,833)	(640)
Cash flows from financing activities:
Issuance of common stock and treasury stock upon exercise of stock options	455	959
Purchase of treasury stock	(9,610)	(4,365)
Net cash used in financing activities	(9,155)	(3,406)
Increase (decrease) in cash and cash equivalents	(9,953)	(2,667)
Cash and cash equivalents at the beginning of the year	21,848	17,822
Cash (erosion) due to exchange rate differences	(33)	57
Cash and cash equivalents at the end of the year	$ 11,862	$ 15,212

Condensed Consolidated Statem_5

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		21,932,000
Balance at Dec. 31, 2016		$ 22		$ 366,121	$ (122,632)	$ (96,112)	$ (1,852)	$ 145,547
Net income						(2,874)		(2,874)
Change in accumulated other comprehensive income							394	394
Purchase of treasury stock (in shares)		(379,000)
Purchase of treasury stock					(4,365)			(4,365)
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan (in shares)		227,000
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan					2,225	(330)		1,895
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors (in shares)		496,000
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors					4,863	(4,235)		628
Equity-based compensation				4,526				4,526
Balance (in shares) at Sep. 30, 2017		22,276,000
Balance at Sep. 30, 2017		$ 22		370,647	(119,909)	(103,551)	(1,458)	145,751
Balance (in shares) at Jun. 30, 2017		22,151,000
Balance at Jun. 30, 2017		$ 22		369,209	(120,855)	(102,867)	(1,391)	144,118
Net income						578		578
Change in accumulated other comprehensive income							(67)	(67)
Purchase of treasury stock (in shares)		(131,000)
Purchase of treasury stock			[1]		(1,563)			(1,563)
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan (in shares)		114,000
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan			[1]		1,117	(163)		954
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors (in shares)		142,000
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors			[1]		1,392	(1,099)		293
Equity-based compensation				1,438				1,438
Balance (in shares) at Sep. 30, 2017		22,276,000
Balance at Sep. 30, 2017		$ 22		370,647	(119,909)	(103,551)	(1,458)	145,751
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 income						(1,637)		(1,637)
Change in accumulated other comprehensive income							(784)	$ (784)
Purchase of treasury stock (in shares)		(804,000)						(803,762)
Purchase of treasury stock		$ (1)			(9,827)			$ (9,827)
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan (in shares)		230,000
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan					2,275	(269)		2,006
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors (in shares)		473,000
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors		$ 1		10	4,663	(4,219)		455
Equity-based compensation				5,111				5,111
Balance (in shares) at Sep. 30, 2018		22,332,000
Balance at Sep. 30, 2018		$ 22		377,162	(121,286)	(110,873)	(2,658)	142,367
Balance (in shares) at Jun. 30, 2018		22,461,000
Balance at Jun. 30, 2018		$ 22		375,410	(119,200)	(110,420)	(2,698)	143,114
Net income						405		405
Change in accumulated other comprehensive income							40	40
Purchase of treasury stock (in shares)		(317,000)
Purchase of treasury stock			[1]		(3,958)			(3,958)
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan (in shares)		112,000
Issuance of treasury stock upon purchase of common stock under employee stock purchase plan			[1]		1,106	(105)		1,001
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors (in shares)		76,000
Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors			[1]		766	(753)		13
Equity-based compensation				1,752				1,752
Balance (in shares) at Sep. 30, 2018		22,332,000
Balance at Sep. 30, 2018		$ 22		$ 377,162	$ (121,286)	(110,873)	$ (2,658)	142,367
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	9 Months Ended
	Sep. 30, 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 nine September 30, 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 first nine 2018 606 2017 605, 605 606 January 1, 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 September 3 0 , 2018 As Reported Prior to Adoption of ASC 606 Effect of Change Income statement Revenues $ 32,619 $ 31,553 $ 1,066 Cost of revenues 16,315 15,934 382 Gross margin: 16,304 15,619 684 Operating expenses: Research and development, net 9,614 9,614 - Sales and marketing 3,640 3,579 60 General and administrative 2,362 2,362 - Intangible assets amortization 425 425 - Total operating expenses: 16,041 15,980 60 Operating loss: 263 (361 ) 624 Financial income 492 492 - Loss before taxes on income 755 131 624 Taxes on income 350 350 - Net income (loss) 405 (219 ) 624 For the nine months ended September 30, 2018 As Reported Prior to Adoption of ASC 606 Effect of Change Income statement Revenues $ 91,381 $ 89,335 $ 2,046 Cost of revenues 46,311 45,553 758 Gross margin: 45,070 43,782 1,288 Operating expenses: Research and development, net 27,503 27,503 - Sales and marketing 11,468 11,357 111 General and administrative 7,612 7,612 - Intangible assets amortization 1,276 1,276 - Total operating expenses: 47,859 47,748 111 Operating loss: (2,789 ) (3,966 ) 1,177 Financial income 1,291 1,291 - Loss before taxes on income (1,498 ) (2,675 ) 1,177 Taxes on income 139 139 - Net loss (1,637 ) (2,814 ) 1,177 September 3 0 , 2018 As Reported Prior to Adoption of ASC 606 Effect of Change Balance Sheet Assets Trade receivables $ 21,448 $ 19,285 $ 2,163 Inventories 8,247 9,023 (776 ) Other accounts receivable and prepaid expenses 2,843 2,959 (116 ) Liabilities Accrued expenses and other accounts payable (3,783 ) (3,783 ) - Equity Accumulated deficit (110,873 ) (112,143 ) 1,271 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 In June 2018, 2018 07 718, December 15, 2018, 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 the 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	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Inventory Disclosure [Text Block]	NOTE B—INVENTORIES Inventories are stated at the lower of cost or net realizable value. The Company periodically evaluates the quantities on hand relative to current and historical selling prices, and historical and projected sales volume. Based on these evaluations, provisions are made in each period to write inventory down to its net realizable value. Inventories are composed of the following: September 30, 2018 December 31, 2017 (Unaudited) (Audited) Work-in-process $ 5,419 $ 3,577 Finished goods 2,827 5,845 $ 8,247 $ 9,422 For the nine September 30, 2018 2017, $17 $20

Note C - Net Earnings (Loss) Pe

Note C - Net Earnings (Loss) Per Share	9 Months Ended
	Sep. 30, 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 September 30, Nine months ended September 30, 2018 2017 2018 2017 Unaudited Net income (loss) $ 405 $ 578 $ (1,637 ) $ (2,874 ) Loss per share: Basic $ 0.02 $ 0.03 $ (0.07 ) $ (0.13 ) Diluted $ 0.02 $ 0.02 $ (0.07 ) $ (0.13 ) Weighted average number of shares of common stock outstanding during the period used to compute basic net earnings (loss) per share (in thousands) 22,449 22,276 22,603 22,186 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) 889 967 - - Weighted average number of shares of common stock used to compute diluted net earnings (loss) per share (in thousands) 23,338 23,243 22,603 22,186

Note D - Marketable Securities

Note D - Marketable Securities and Time Deposits	9 Months Ended
	Sep. 30, 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 September 30, 2018 December 31, 2017: Amortized cost Unrealized losses, net Fair value September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 (Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited) Short-term deposits 7,394 $ 5,481 $ - $ - $ 7,394 $ 5,481 Long-term deposits 5,100 5,013 - - 5,100 5,013 U.S. GSE securities 21,759 22,359 (454 ) (315 ) 21,305 22,044 Corporate obligations 75,525 75,722 (1,516 ) (894 ) 74,009 74,828 $ 109,778 $ 108,575 $ (1,970 ) $ (1,209 ) $ 107,808 $ 107,366 The amortized cost of marketable debt securities and term deposits at September 30, 2018, Unrealized gains (losses) Amortized cost Gains Losses Fair value Due in one year or less $ 34,489 $ 1 $ (80 ) $ 34,410 Due after one year to five years 75,289 1 (1,892 ) 73,398 $ 109,778 $ 2 $ (1,972 ) $ 107,808 The actual maturity dates may may Management believes that as of September 30, 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 September 30, 2018. The total fair value of marketable securities with outstanding unrealized losses as of September 30, 2018 $91,841, $1,972. $1,972 September 30, 2018, $1,636 12 $336 12 Proceeds from maturity of available-for-sale marketable securities during the nine September 30, 2018 2017 $14,399 $18,474, nine September 30, 2018 2017 $4,810 $12,988, nine September 30, 2018 $36 nine September 30, 2017 $59. Marketable securities are periodically reviewed for impairment. If management concludes that any marketable security is impaired, management determines whether such impairment is other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value and the potential recovery period, and the Company’s intent to sell, or whether it is more likely than not

Note E - Taxes on Income

Note E - Taxes on Income	9 Months Ended
	Sep. 30, 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 $1,306 $1,273 September 30, 2018 December 31, 2017, September 30, 2018 December 31, 2017, $103 $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	9 Months Ended
	Sep. 30, 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 nine September 30, 2018 2017, Three months ended September 30, Nine months ended September 30, Unaudited Major customers/ distributors 2018 2017 2018 2017 VTech Holdings Ltd. 21% 24% 23% 28% Nexty Electronics ¹ ² 12% 15% 12% 12% Ascend Technology Inc. ¹ ³ 29% 24% 27% 22% ¹ Distributor. ² Nexty Electronics sells the Company’s products to a limited number of customers; one 10% 13% three September 30, 2018 2017, 10% nine September 30, 2018 2017, ³ Ascend Technology sells the Company’s products to a limited number of customers; one 10% 6% three September 30, 2018 2017, 6% 4% nine September 30, 2018 2017,

Note G - Derivative Instruments

Note G - Derivative Instruments	9 Months Ended
	Sep. 30, 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, September 30, 2018, no The amount recorded as an expense in research and development expenses, sales and marketing expenses and general and administrative expenses in the condensed consolidated statements of income for the nine September 30, 2018 $5, $1 $1, The company had no September 30, 2018. The effect of derivative instruments in cash flow hedging transactions on income and other comprehensive income (“OCI”) for the three nine September 30, 2018 2017 Gains (L osses) on Derivatives Recognized in OCI for the three months ended September 30, for the nine months ended September 30, Unaudited 2018 2017 2018 2017 Foreign exchange forward and option contracts $ 13 $ (29 ) $ (16 ) $ 163 Gains (Losses) Reclassified from OCI into Income for the three months ended September 30 for the nine months ended September 30, Unaudited 2018 2017 2018 2017 Foreign exchange forward and option contracts Operating expenses $ (7 ) $ 19 $ (16 ) $ 172

Note H - Contingencies

Note H - Contingencies	9 Months Ended
	Sep. 30, 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	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	NOTE i—EQUITY-BASED COMPENSATION Grants for the three September 30, 2018: The weighted average estimated fair value of employee restricted stock units (“RSUs”) granted during the three September 30, 2018 $10.93 4.36% three September 30, 2018, Employee stock benefit plans As of September 30, 2018, two may three no may one September 30, 2018, 479,000 797,000 The table below presents a summary of information relating to the Company’s stock option, RSU and SAR grants pursuant to its equity incentive plans: Number of Options/SARs/RSUs Weighted average exercise price Weighted average remaining contractual term (years) (3) Aggregate value (*) in thousands in thousands Outstanding at June 30, 2018 2,107 $ 4.55 RSUs granted 7 - Options / SARs / RSUs cancelled/forfeited/expired (20 ) 5.33 Options / SARs exercised and RSUs vested (79 ) $ 0.42 Outstanding at September 30, 2018 (1) 2,015 $ 4.68 4.08 $ 14,640 Exercisable at September 30, 2018 (2) 817 $ 8.83 3.55 $ 2,560 (*) Calculation of aggregate intrinsic value is based on the share price of the Company’s common stock on September 30, 2018 ( $11.90 ( 1 1,922 September 30, 2018. January 1, 2012 50% ( 2 785 September 30, 2018. ( 3 not Additional information about stock options, SARs and RSUs outstanding and exercisable at September 30, 2018 $11.90 September 30, 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 $11.90 763 $ 8.54 1,133 $ 1.24 1,896 $ 4.18 Above $11.90 54 $ 12.97 65 $ 12.46 119 $ 12.69 Total 817 $ 8.83 1,198 $ 1.85 2,015 $ 4.68 The Company’s aggregate equity-based compensation expense for the three September 30, 2018 2017 $1,752 $1,438, As of September 30, 2018, $6,290 2018 2022.

Note J - Pension Liability

Note J - Pension Liability	9 Months Ended
	Sep. 30, 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 nine September 30, 2018 2017 Nine months ended September 30, 2018 2017 Components of net periodic benefit cost: Service cost and amortization of loss $ 18 $ 19 Interest cost 12 10 Net periodic benefit cost $ 30 $ 29 The net pension liability as of September 30, 2018 $868.

Note K - Fair Value Measurement

Note K - Fair Value Measurements	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block]	NOTE k—FAIR VALUE MEASUREMENTS Assets and liabilities measured at fair value on a recurring basis: The Company measures its cash equivalents, short-term deposits, marketable securities and foreign currency derivative contracts at fair value. Cash equivalents, short-term deposits and marketable securities are classified within Level 1 2 2 The following table provides information by value level for assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2018: Balance as of Fair value measurements September 30, 2018 Level 1 Level 2 Level 3 Description (Unaudited) Assets Cash equivalents Money market mutual funds $ 661 $ 661 - - Short-term marketable securities: Corporate debt securities $ 24,988 - $ 24,988 - U.S. GSE securities $ 2,028 $ 2,028 Long-term marketable securities: U.S. GSE securities $ 19,277 - $ 19,277 - Corporate debt securities $ 49,021 - $ 49,021 - 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, 2017 Level 1 Level 2 Level 3 (Audited) 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 September 30, 2018

Note L - Stockholders' Equity

Note L - Stockholders' Equity	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	NOTE l—STOCKHOLDERS’ EQUITY During the first nine 2018, 803,762 $12.23 $9,827. September 30, 2018, 651,627 Repurchases of common stock are accounted for as treasury stock, and result in a reduction of stockholders’ equity. The Company reissues treasury shares pursuant to its stock purchase plan, upon exercise of options and upon vesting of restricted stock units. Reissuance of treasury shares is accounted for in accordance with ASC No. 505 30 During the first nine 2018, 703,000 1993

Note M - Segment Information

Note M - Segment Information	9 Months Ended
	Sep. 30, 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% 47% 55% first nine 2018 2017, 42% 53% third 2018 2017, 13% 15% first nine 2018 2017, 12% 13% third 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 33% 27% first nine 2018 2017, 37% 30% third 2018 2017, No 10% first nine 2018 2017. SmartVoice - Products that provide voice activation and recognition, voice enhancement, always-on and far-end noise elimination that target mobile phones, SmartSpeakers, wearables, mobile headsets and other devices that incorporate the Company’s noise suppression and voice quality enhancement HDClear technology. Revenues derived from products in the SmartVoice segment represented 7% 3% first nine 2018 2017, 9% 4% third 2018 2017, No 10% first nine 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 September 30, 2018 2017 Three months ended September 30, Revenues Income (loss) from operations 2018 2017 2018 2017 Home $ 17,472 $ 22,787 $ 3,990 $ 4,565 Office $ 12,125 $ 10,136 $ 4,474 $ 3,117 SmartVoice $ 3,022 $ 1,354 $ (5,525 ) $ (5,157 ) Total $ 32,619 $ 34,277 $ 2,939 $ 2,525 Selected operating results information for each business segment was as follows for the nine September 30, 2018 2017 Nine months ended September 30, Revenues Income (loss) from operations 2018 2017 2018 2017 Home $ 54,311 $ 65,531 $ 11,752 $ 12,474 Office $ 30,269 $ 25,355 $ 9,737 $ 6,162 SmartVoice $ 6,801 $ 2,625 $ (16,296 ) $ (15,639 ) Total $ 91,381 $ 93,511 $ 5,193 $ 2,997 The reconciliation of segment operating results information to the Company’s consolidated financial information was as follows for the three nine September 30, 2018: Three months Nine months Income from operations $ 2,939 $ 5,193 Unallocated corporate, general and administrative expenses (499 ) (1,595 ) Equity-based compensation expenses (1,752 ) (5,111 ) Intangible assets amortization expenses (425 ) (1,276 ) Financial income, net 492 1,291 Total consolidated income (loss) before taxes $ 755 $ (1,498 ) The reconciliation of segment operating results information to the Company’s consolidated financial information was as follows for the three nine September 30, 2017: Three months Nine months Income from operations $ 2,525 $ 2,997 Unallocated corporate, general and administrative expenses (412 ) (1,267 ) Equity-based compensation expenses (1,438 ) (4,526 ) Intangible assets amortization expenses (425 ) (1,275 ) Financial income, net 382 1,216 Total consolidated income (loss) before taxes $ 632 $ (2,855 )

Note N - Accumulated Other Comp

Note N - Accumulated Other Comprehensive Income (Loss)	9 Months Ended
	Sep. 30, 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 September 30, 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 $ (1,996 ) $ (20 ) $ (399 ) $ (283 ) $ (2,698 ) Other comprehensive income (loss) before reclassifications 26 13 - (10 ) 29 Losses (gains) reclassified from accumulated other comprehensive income (loss) (1 ) 7 5 - 11 Net current period other comprehensive income (loss) 25 20 5 (10 ) 40 Ending balance $ (1,971 ) $ - $ (394 ) $ (293 ) $ (2,658 ) The following table provides details about reclassifications out of accumulated other comprehensive income for the three September 30, 2018: Details about accumulated other comprehensive income (loss) components Losses (gains) reclassified from accumulated other comprehensive income (loss) Affected line item in the statement of income Gains on available-for-sale marketable securities $ (1 ) Financial income, net - Provision for income taxes (1 ) Total, net of income taxes Losses on cash flow hedges 5 Research and development 1 Sales and marketing 1 General and administrative 7 Total, before income taxes - Provision for income taxes 7 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 $ 11 Total, net of income taxes The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the nine September 30, 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 gains (losses) on foreign currency translation Total Beginning balance $ (1,209 ) $ - $ (409 ) $ (256 ) $ (1,874 ) Other comprehensive income (loss) before reclassifications (797 ) (16 ) - (38 ) (851 ) Losses reclassified from accumulated other comprehensive income (loss) 36 16 15 - 67 Net current period other comprehensive income (761 ) - 15 (38 ) (784 ) Ending balance $ (1,970 ) $ - $ (394 ) (294 ) $ (2,658 ) The following table provides details about reclassifications out of accumulated other comprehensive income for the nine September 30, 2018: Details about accumulated other comprehensive income (loss) components Losses (gains) reclassified from accumulated other comprehensive income (loss) Affected line item in the statement of income Losses on available-for-sale marketable securities $ 36 Financial income, net - Provision for income taxes 36 Total, net of income taxes Losses on cash flow hedges 13 Research and development 1 Sales and marketing 2 General and administrative 16 Total, before income taxes - Provision for income taxes 6 Total, net of income taxes Losses on components of defined benefit plans 10 Research and development 5 Sales and marketing 15 Total, before income taxes - Provision for income taxes 15 Total, net of income taxes Total reclassifications for the period $ 67 Total, net of income taxes

Note O - Government Grants

Note O - Government Grants	9 Months Ended
	Sep. 30, 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 $200 three September 30, 2018 2017. The Company recorded grants in the amount of $1,200 nine September 30, 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)	9 Months Ended
	Sep. 30, 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 first nine 2018 606 2017 605, 605 606 January 1, 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 September 3 0 , 2018 As Reported Prior to Adoption of ASC 606 Effect of Change Income statement Revenues $ 32,619 $ 31,553 $ 1,066 Cost of revenues 16,315 15,934 382 Gross margin: 16,304 15,619 684 Operating expenses: Research and development, net 9,614 9,614 - Sales and marketing 3,640 3,579 60 General and administrative 2,362 2,362 - Intangible assets amortization 425 425 - Total operating expenses: 16,041 15,980 60 Operating loss: 263 (361 ) 624 Financial income 492 492 - Loss before taxes on income 755 131 624 Taxes on income 350 350 - Net income (loss) 405 (219 ) 624 For the nine months ended September 30, 2018 As Reported Prior to Adoption of ASC 606 Effect of Change Income statement Revenues $ 91,381 $ 89,335 $ 2,046 Cost of revenues 46,311 45,553 758 Gross margin: 45,070 43,782 1,288 Operating expenses: Research and development, net 27,503 27,503 - Sales and marketing 11,468 11,357 111 General and administrative 7,612 7,612 - Intangible assets amortization 1,276 1,276 - Total operating expenses: 47,859 47,748 111 Operating loss: (2,789 ) (3,966 ) 1,177 Financial income 1,291 1,291 - Loss before taxes on income (1,498 ) (2,675 ) 1,177 Taxes on income 139 139 - Net loss (1,637 ) (2,814 ) 1,177 September 3 0 , 2018 As Reported Prior to Adoption of ASC 606 Effect of Change Balance Sheet Assets Trade receivables $ 21,448 $ 19,285 $ 2,163 Inventories 8,247 9,023 (776 ) Other accounts receivable and prepaid expenses 2,843 2,959 (116 ) Liabilities Accrued expenses and other accounts payable (3,783 ) (3,783 ) - Equity Accumulated deficit (110,873 ) (112,143 ) 1,271 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 In June 2018, 2018 07 718, December 15, 2018,
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 the 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 Presentatio_2

Note A - Basis of Presentation and Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2018
Notes Tables
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]	For the three months ended September 3 0 , 2018 As Reported Prior to Adoption of ASC 606 Effect of Change Income statement Revenues $ 32,619 $ 31,553 $ 1,066 Cost of revenues 16,315 15,934 382 Gross margin: 16,304 15,619 684 Operating expenses: Research and development, net 9,614 9,614 - Sales and marketing 3,640 3,579 60 General and administrative 2,362 2,362 - Intangible assets amortization 425 425 - Total operating expenses: 16,041 15,980 60 Operating loss: 263 (361 ) 624 Financial income 492 492 - Loss before taxes on income 755 131 624 Taxes on income 350 350 - Net income (loss) 405 (219 ) 624 For the nine months ended September 30, 2018 As Reported Prior to Adoption of ASC 606 Effect of Change Income statement Revenues $ 91,381 $ 89,335 $ 2,046 Cost of revenues 46,311 45,553 758 Gross margin: 45,070 43,782 1,288 Operating expenses: Research and development, net 27,503 27,503 - Sales and marketing 11,468 11,357 111 General and administrative 7,612 7,612 - Intangible assets amortization 1,276 1,276 - Total operating expenses: 47,859 47,748 111 Operating loss: (2,789 ) (3,966 ) 1,177 Financial income 1,291 1,291 - Loss before taxes on income (1,498 ) (2,675 ) 1,177 Taxes on income 139 139 - Net loss (1,637 ) (2,814 ) 1,177 September 3 0 , 2018 As Reported Prior to Adoption of ASC 606 Effect of Change Balance Sheet Assets Trade receivables $ 21,448 $ 19,285 $ 2,163 Inventories 8,247 9,023 (776 ) Other accounts receivable and prepaid expenses 2,843 2,959 (116 ) Liabilities Accrued expenses and other accounts payable (3,783 ) (3,783 ) - Equity Accumulated deficit (110,873 ) (112,143 ) 1,271

Note B - Inventories (Tables)

Note B - Inventories (Tables)	9 Months Ended
	Sep. 30, 2018
Notes Tables
Schedule of Inventory, Current [Table Text Block]	September 30, 2018 December 31, 2017 (Unaudited) (Audited) Work-in-process $ 5,419 $ 3,577 Finished goods 2,827 5,845 $ 8,247 $ 9,422

Note C - Net Earnings (Loss) _2

Note C - Net Earnings (Loss) Per Share (Tables)	9 Months Ended
	Sep. 30, 2018
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Unaudited Net income (loss) $ 405 $ 578 $ (1,637 ) $ (2,874 ) Loss per share: Basic $ 0.02 $ 0.03 $ (0.07 ) $ (0.13 ) Diluted $ 0.02 $ 0.02 $ (0.07 ) $ (0.13 ) Weighted average number of shares of common stock outstanding during the period used to compute basic net earnings (loss) per share (in thousands) 22,449 22,276 22,603 22,186 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) 889 967 - - Weighted average number of shares of common stock used to compute diluted net earnings (loss) per share (in thousands) 23,338 23,243 22,603 22,186

Note D - Marketable Securitie_2

Note D - Marketable Securities and Time Deposits (Tables)	9 Months Ended
	Sep. 30, 2018
Notes Tables
Available-for-sale Securities [Table Text Block]	Amortized cost Unrealized losses, net Fair value September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 (Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited) Short-term deposits 7,394 $ 5,481 $ - $ - $ 7,394 $ 5,481 Long-term deposits 5,100 5,013 - - 5,100 5,013 U.S. GSE securities 21,759 22,359 (454 ) (315 ) 21,305 22,044 Corporate obligations 75,525 75,722 (1,516 ) (894 ) 74,009 74,828 $ 109,778 $ 108,575 $ (1,970 ) $ (1,209 ) $ 107,808 $ 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 $ 34,489 $ 1 $ (80 ) $ 34,410 Due after one year to five years 75,289 1 (1,892 ) 73,398 $ 109,778 $ 2 $ (1,972 ) $ 107,808

Note F - Significant Customers

Note F - Significant Customers (Tables)	9 Months Ended
	Sep. 30, 2018
Customer Concentration Risk [Member]
Notes Tables
Schedules of Concentration of Risk, by Risk Factor [Table Text Block]	Three months ended September 30, Nine months ended September 30, Unaudited Major customers/ distributors 2018 2017 2018 2017 VTech Holdings Ltd. 21% 24% 23% 28% Nexty Electronics ¹ ² 12% 15% 12% 12% Ascend Technology Inc. ¹ ³ 29% 24% 27% 22%

Note G - Derivative Instrumen_2

Note G - Derivative Instruments (Tables)	9 Months Ended
	Sep. 30, 2018
Notes Tables
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block]	Gains (L osses) on Derivatives Recognized in OCI for the three months ended September 30, for the nine months ended September 30, Unaudited 2018 2017 2018 2017 Foreign exchange forward and option contracts $ 13 $ (29 ) $ (16 ) $ 163
Derivative Instruments, Gain (Loss) [Table Text Block]	Gains (Losses) Reclassified from OCI into Income for the three months ended September 30 for the nine months ended September 30, Unaudited 2018 2017 2018 2017 Foreign exchange forward and option contracts Operating expenses $ (7 ) $ 19 $ (16 ) $ 172

Note I - Equity-based Compens_2

Note I - Equity-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2018
Notes Tables
Share-based Compensation, Activity [Table Text Block]	Number of Options/SARs/RSUs Weighted average exercise price Weighted average remaining contractual term (years) (3) Aggregate value (*) in thousands in thousands Outstanding at June 30, 2018 2,107 $ 4.55 RSUs granted 7 - Options / SARs / RSUs cancelled/forfeited/expired (20 ) 5.33 Options / SARs exercised and RSUs vested (79 ) $ 0.42 Outstanding at September 30, 2018 (1) 2,015 $ 4.68 4.08 $ 14,640 Exercisable at September 30, 2018 (2) 817 $ 8.83 3.55 $ 2,560
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 $11.90 763 $ 8.54 1,133 $ 1.24 1,896 $ 4.18 Above $11.90 54 $ 12.97 65 $ 12.46 119 $ 12.69 Total 817 $ 8.83 1,198 $ 1.85 2,015 $ 4.68

Note J - Pension Liability (Tab

Note J - Pension Liability (Tables)	9 Months Ended
	Sep. 30, 2018
Notes Tables
Schedule of Net Benefit Costs [Table Text Block]	Nine months ended September 30, 2018 2017 Components of net periodic benefit cost: Service cost and amortization of loss $ 18 $ 19 Interest cost 12 10 Net periodic benefit cost $ 30 $ 29

Note K - Fair Value Measureme_2

Note K - Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2018
Notes Tables
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	Balance as of Fair value measurements September 30, 2018 Level 1 Level 2 Level 3 Description (Unaudited) Assets Cash equivalents Money market mutual funds $ 661 $ 661 - - Short-term marketable securities: Corporate debt securities $ 24,988 - $ 24,988 - U.S. GSE securities $ 2,028 $ 2,028 Long-term marketable securities: U.S. GSE securities $ 19,277 - $ 19,277 - Corporate debt securities $ 49,021 - $ 49,021 - Balance as of Fair value measurements Description December 31, 2017 Level 1 Level 2 Level 3 (Audited) 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)	9 Months Ended
	Sep. 30, 2018
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Three months ended September 30, Revenues Income (loss) from operations 2018 2017 2018 2017 Home $ 17,472 $ 22,787 $ 3,990 $ 4,565 Office $ 12,125 $ 10,136 $ 4,474 $ 3,117 SmartVoice $ 3,022 $ 1,354 $ (5,525 ) $ (5,157 ) Total $ 32,619 $ 34,277 $ 2,939 $ 2,525 Nine months ended September 30, Revenues Income (loss) from operations 2018 2017 2018 2017 Home $ 54,311 $ 65,531 $ 11,752 $ 12,474 Office $ 30,269 $ 25,355 $ 9,737 $ 6,162 SmartVoice $ 6,801 $ 2,625 $ (16,296 ) $ (15,639 ) Total $ 91,381 $ 93,511 $ 5,193 $ 2,997
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]	Three months Nine months Income from operations $ 2,939 $ 5,193 Unallocated corporate, general and administrative expenses (499 ) (1,595 ) Equity-based compensation expenses (1,752 ) (5,111 ) Intangible assets amortization expenses (425 ) (1,276 ) Financial income, net 492 1,291 Total consolidated income (loss) before taxes $ 755 $ (1,498 ) Three months Nine months Income from operations $ 2,525 $ 2,997 Unallocated corporate, general and administrative expenses (412 ) (1,267 ) Equity-based compensation expenses (1,438 ) (4,526 ) Intangible assets amortization expenses (425 ) (1,275 ) Financial income, net 382 1,216 Total consolidated income (loss) before taxes $ 632 $ (2,855 )

Note N - Accumulated Other Co_2

Note N - Accumulated Other Comprehensive Income (Loss) (Tables)	9 Months Ended
	Sep. 30, 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 $ (1,996 ) $ (20 ) $ (399 ) $ (283 ) $ (2,698 ) Other comprehensive income (loss) before reclassifications 26 13 - (10 ) 29 Losses (gains) reclassified from accumulated other comprehensive income (loss) (1 ) 7 5 - 11 Net current period other comprehensive income (loss) 25 20 5 (10 ) 40 Ending balance $ (1,971 ) $ - $ (394 ) $ (293 ) $ (2,658 ) Unrealized gains (losses) on available- for-sale marketable securities Unrealized gains (losses) on Cash Flow Hedges Unrealized gains (losses) on components of defined benefit plans Unrealized gains (losses) on foreign currency translation Total Beginning balance $ (1,209 ) $ - $ (409 ) $ (256 ) $ (1,874 ) Other comprehensive income (loss) before reclassifications (797 ) (16 ) - (38 ) (851 ) Losses reclassified from accumulated other comprehensive income (loss) 36 16 15 - 67 Net current period other comprehensive income (761 ) - 15 (38 ) (784 ) Ending balance $ (1,970 ) $ - $ (394 ) (294 ) $ (2,658 )
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]	Details about accumulated other comprehensive income (loss) components Losses (gains) reclassified from accumulated other comprehensive income (loss) Affected line item in the statement of income Gains on available-for-sale marketable securities $ (1 ) Financial income, net - Provision for income taxes (1 ) Total, net of income taxes Losses on cash flow hedges 5 Research and development 1 Sales and marketing 1 General and administrative 7 Total, before income taxes - Provision for income taxes 7 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 $ 11 Total, net of income taxes Details about accumulated other comprehensive income (loss) components Losses (gains) reclassified from accumulated other comprehensive income (loss) Affected line item in the statement of income Losses on available-for-sale marketable securities $ 36 Financial income, net - Provision for income taxes 36 Total, net of income taxes Losses on cash flow hedges 13 Research and development 1 Sales and marketing 2 General and administrative 16 Total, before income taxes - Provision for income taxes 6 Total, net of income taxes Losses on components of defined benefit plans 10 Research and development 5 Sales and marketing 15 Total, before income taxes - Provision for income taxes 15 Total, net of income taxes Total reclassifications for the period $ 67 Total, net of income taxes

Note A - Basis of Presentatio_3

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		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Income statement
Revenues		$ 32,619	$ 34,277	$ 91,381	$ 93,511
Cost of revenues	[1]	16,315	18,270	46,311	50,760
Gross margin:		16,304	16,007	45,070	42,751
Research and development, net	[2]	9,614	9,214	27,503	27,565
Sales and marketing	[3]	3,640	3,635	11,468	10,640
General and administrative	[4]	2,362	2,483	7,612	7,342
Amortization of intangible assets		425	425	1,276	1,275
Total operating expenses:		16,041	15,757	47,859	46,822
Operating loss:		263	250	(2,789)	(4,071)
Financial income, net		492	382	1,291	1,216
Loss before taxes on income		755	632	(1,498)	(2,855)
Taxes on income		350	54	139	19
Net income (loss)		405	$ 578	(1,637)	$ (2,874)
Assets
Trade receivables		21,448		21,448		$ 13,416
Inventories		8,247		8,247		9,422
Other accounts receivable and prepaid expenses		2,843		2,843		3,167
Liabilities
Accrued expenses and other accounts payable		(3,783)		(3,783)		(2,888)
Equity
Accumulated deficit		(110,873)		(110,873)		$ (104,842)
Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Income statement
Revenues		31,553		89,335
Cost of revenues		15,934		45,553
Gross margin:		15,619		43,782
Research and development, net		9,614		27,503
Sales and marketing		3,579		11,357
General and administrative		2,362		7,612
Amortization of intangible assets		425		1,276
Total operating expenses:		15,980		47,748
Operating loss:		(361)		(3,966)
Financial income, net		492		1,291
Loss before taxes on income		131		(2,675)
Taxes on income		350		139
Net income (loss)		(219)		(2,814)
Assets
Trade receivables		19,285		19,285
Inventories		9,023		9,023
Other accounts receivable and prepaid expenses		2,959		2,959
Liabilities
Accrued expenses and other accounts payable		(3,783)		(3,783)
Equity
Accumulated deficit		(112,143)		(112,143)
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]
Income statement
Revenues		1,066		2,046
Cost of revenues		382		758
Gross margin:		684		1,288
Research and development, net
Sales and marketing		60		111
General and administrative
Amortization of intangible assets
Total operating expenses:		60		111
Operating loss:		624		1,177
Financial income, net
Loss before taxes on income		624		1,177
Taxes on income
Net income (loss)		624		1,177
Assets
Trade receivables		2,163		2,163
Inventories		(776)		(776)
Other accounts receivable and prepaid expenses		(116)		(116)
Liabilities
Accrued expenses and other accounts payable
Equity
Accumulated deficit		$ 1,271		$ 1,271
[1]	Includes equity-based compensation expense in the amount of $114 and $84 for the three months ended September 30, 2018 and 2017, and $320 and $275 for the nine months ended September 30, 2018 and 2017, respectively.
[2]	Includes equity-based compensation expense in the amount of $781 and $576 for the three months ended September 30, 2018 and 2017, respectively; and $2,134 and $1,815 for the nine months ended September 30, 2018 and 2017, respectively.
[3]	Includes equity-based compensation expense in the amount of $283 and $273 for the three months ended September 30, 2018 and 2017, respectively; and $954 and $870 for the nine months ended September 30, 2018 and 2017, respectively.
[4]	Includes equity-based compensation expense in the amount of $574 and $505 for the three months ended September 30, 2018 and 2017, respectively; and $1,703 and $1,566 for the nine months ended September 30, 2018 and 2017, respectively.

Note B - Inventories (Details T

Note B - Inventories (Details Textual) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Inventory Write-down	$ 17	$ 20

Note B - Inventories - Componen

Note B - Inventories - Components of Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Work-in-process	$ 5,419	$ 3,577
Finished goods	2,827	5,845
Inventories	$ 8,247	$ 9,422

Note C - Net Earnings (Loss) _3

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		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net income	$ 405	$ 578	$ (1,637)	$ (2,874)
Income (loss) per share:
Basic (in dollars per share)	$ 0.02	$ 0.03	$ (0.07)	$ (0.13)
Diluted (in dollars per share)	$ 0.02	$ 0.02	$ (0.07)	$ (0.13)
Weighted average number of shares of common stock outstanding during the period used to compute basic net earnings (loss) per share (in thousands) (in shares)	22,449	22,276	22,603	22,186
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)	889	967
Weighted average number of shares of common stock used to compute diluted net earnings (loss) per share (in thousands) (in shares)	23,338	23,243	22,603	22,186

Note D - Marketable Securitie_3

Note D - Marketable Securities and Time Deposits (Details Textual) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 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	91,841
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax, Total	1,972
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	1,636
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	336
Proceeds from Maturities, Prepayments and Calls of Debt Securities, Available-for-sale	14,399	$ 18,474
Proceeds from Sale of Available-for-sale Securities, Total	4,810	12,988
Debt Securities, Available-for-sale, Realized Gain (Loss), Total	36	$ 59
Corporate Debt Securities [Member]
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities, Total	$ 0

Note D - Marketable Securitie_4

Note D - Marketable Securities and Time Deposits - Marketable Securities and Time Deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Marketable securities and time deposits, amortized cost	$ 109,778	$ 108,575
Marketable securities and time deposits, unrealized gains (losses), net	(1,970)	(1,209)
Marketable securities and time deposits, estimated fair value	107,808	107,366
Short-term Deposits [Member]
Marketable securities and time deposits, amortized cost	7,394	5,481
Marketable securities and time deposits, unrealized gains (losses), net
Marketable securities and time deposits, estimated fair value	7,394	5,481
Long-Term Deposit [Member]
Marketable securities and time deposits, amortized cost	5,100	5,013
Marketable securities and time deposits, unrealized gains (losses), net
Marketable securities and time deposits, estimated fair value	5,100	5,013
US Government-sponsored Enterprises Debt Securities [Member]
Marketable securities and time deposits, amortized cost	21,759	22,359
Marketable securities and time deposits, unrealized gains (losses), net	(454)	(315)
Marketable securities and time deposits, estimated fair value	21,305	22,044
Corporate Debt Securities [Member]
Marketable securities and time deposits, amortized cost	75,525	75,722
Marketable securities and time deposits, unrealized gains (losses), net	(1,516)	(894)
Marketable securities and time deposits, estimated fair value	$ 74,009	$ 74,828

Note D - Marketable Securitie_5

Note D - Marketable Securities and Time Deposits - Marketable Debt Securities by Contractual Maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Marketable debt securities, amortized cost	$ 109,778	$ 108,575
Marketable debt securities, estimated fair value	107,808	$ 107,366
Debt Securities [Member]
Marketable debt securities, amortized cost	109,778
Marketable debt securities, unrealized gains	2
Marketable debt securities, unrealized losses	(1,972)
Marketable debt securities, estimated fair value	107,808
Debt Securities [Member] | Due in One Year or Less [Member]
Marketable debt securities, amortized cost	34,489
Marketable debt securities, unrealized gains	1
Marketable debt securities, unrealized losses	(80)
Marketable debt securities, estimated fair value	34,410
Debt Securities [Member] | Due after One Year to Five Years [Member]
Marketable debt securities, amortized cost	75,289
Marketable debt securities, unrealized gains	1
Marketable debt securities, unrealized losses	(1,892)
Marketable debt securities, estimated fair value	$ 73,398

Note E - Taxes on Income (Detai

Note E - Taxes on Income (Details Textual) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Unrecognized Tax Benefits, Ending Balance	$ 1,306	$ 1,273
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total	$ 103	$ 68

Note F - Significant Customer_2

Note F - Significant Customers (Details Textual) - Customer Concentration Risk [Member] - Sales Revenue, Net [Member]	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Panasonic Communications Corporation [Member]
Concentration Risk, Percentage	10.00%	13.00%	10.00%	10.00%
Customers to Which the Company's Products Are Sold Through Ascend Technology [Member]
Concentration Risk, Percentage	10.00%	6.00%	6.00%	4.00%

Note F - Significant Customer_3

Note F - Significant Customers - Sales to Major Customers (Distributors) As a Percentage of Total Revenues (Details) - Customer Concentration Risk [Member] - Sales Revenue, Net [Member]		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
VTech Holdings Ltd [Member]
Concentration risk, percentage		21.00%	24.00%	23.00%	28.00%
Nexty Electronics Corporation [Member]
Concentration risk, percentage	[1],[2]	12.00%	15.00%	12.00%	12.00%
Ascend Technology Inc [Member]
Concentration risk, percentage	[1],[3]	29.00%	24.00%	27.00%	22.00%
[1]	Distributor.
[2]	Nexty Electronics sells the Companys products to a limited number of customers; one of those customers Panasonic accounted for 10% and 13% of the Companys total revenues for the three month periods ended September 30, 2018 and 2017, respectively, and 10% of the Companys total revenues for both the nine month periods ended September 30, 2018 and 2017, respectively.
[3]	Ascend Technology sells the Companys products to a limited number of customers; one of those customers Avaya accounted for 10% and 6% of the Companys total revenues for the three month periods ended September 30, 2018 and 2017, respectively, and 6% and 4% of the Companys total revenues for the nine month periods ended September 30, 2018 and 2017, respectively.

Note G - Derivative Instrumen_3

Note G - Derivative Instruments (Details Textual) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)
Research and Development Expense [Member]
Gain (Loss) on Derivative Instruments, Net, Pretax, Total	$ 5
Selling and Marketing Expense [Member]
Gain (Loss) on Derivative Instruments, Net, Pretax, Total	1
General and Administrative Expense [Member]
Gain (Loss) on Derivative Instruments, Net, Pretax, Total	1
Foreign Exchange Option [Member]
Price Risk Cash Flow Hedge Asset, at Fair Value	$ 0
Minimum [Member]
Derivative Instrument Hedging Period	30 days
Maximum [Member]
Derivative Instrument Hedging Period	1 year

Note G - Derivative Instrumen_4

Note G - Derivative Instruments - Effect of Derivative Instruments in Cash Flow Hedging Transactions on Income and Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Foreign Exchange Forward Contracts and Put Options [Member]
Foreign exchange forward and option contracts	$ 13	$ (29)	$ (16)	$ 163

Note G - Derivative Instrumen_5

Note G - Derivative Instruments - Gains (Losses) on Derivatives Reclassified From OCI to Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Foreign Exchange Forward Contracts and Put Options [Member]
Foreign exchange forward and option contracts	$ (7)	$ 19	$ (16)	$ 172

Note I - Equity-based Compens_3

Note I - Equity-based Compensation (Details Textual) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended		81 Months Ended
	Sep. 30, 2018USD ($)$ / sharesshares	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)$ / sharesshares	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)$ / 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		2
Share-based Compensation Arrangement by Share-based Payment Award Number of Expired Equity Incentive Plans	3		3		3
Share-based Compensation Arrangement by Share-based Payment Award Number of Employee Purchase Plans	1		1		1
Allocated Share-based Compensation Expense, Total | $	$ 1,752	$ 1,438	$ 5,111	$ 4,526
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $	$ 6,290		$ 6,290		$ 6,290
Common Stock [Member]
Share Price | $ / shares	$ 11.90		$ 11.90		$ 11.90
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	479,000		479,000		479,000
Equity Incentive Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	797,000		797,000		797,000
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	$ 10.93
Share-based Compensation Arrangement by Share-based Payment Award, Weighted Average Pre Vest Cancel Rate	4.36%
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	1,922		1,922		1,922
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	785		785		785

Note I - Equity-based Compens_4

Note I - Equity-based Compensation - Stock Options, SARs and RSUs Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Sep. 30, 2018		Jun. 30, 2018
Outstanding (in shares)		2,107
Outstanding, weighted average exercise price (in dollars per share)		$ 4.55
Outstanding, weighted average remaining contractual term (Year)	[1]	4 years 29 days	[2]
Outstanding, aggregate value	[3]	$ 14,640	[2]
Options / SARs / RSUs cancelled/forfeited/expired (in shares)		(20)
Options / SARs / RSUs cancelled/forfeited/expired, weighted average exercise price (in dollars per share)		$ 5.33
Options / SARs exercised and RSUs vested (in shares)		(79)
Options / SARs exercised and RSUs vested, weighted average exercise price (in dollars per share)		$ 0.42
Outstanding (in shares)		2,015	[2]	2,107
Outstanding, weighted average exercise price (in dollars per share)		$ 4.68	[2]	$ 4.55
Exercisable (in shares)	[4]	817
Exercisable, weighted average exercise price (in dollars per share)	[4]	$ 8.83
Exercisable, weighted average remaining contractual term (Year)	[1],[4]	3 years 200 days
Exercisable, aggregate value	[3],[4]	$ 2,560
Restricted Stock Units (RSUs) [Member]
Non-option instruments granted (in shares)		7
Non-option instruments, weighted average exercise price (in dollars per share)
[1]	Calculation of weighted average remaining contractual term does not include RSUs that were granted, which have indefinite contractual term.
[2]	Due to the ceiling imposed on the stock appreciation right (SAR) grants, the outstanding amount above can be exercised for a maximum of 1,922 shares of the Companys common stock as of September 30, 2018. SAR grants made on or after January 1, 2012 are convertible for a maximum number of shares of the Companys common stock equal to 50% of the SARs subject to the grant.
[3]	Calculation of aggregate intrinsic value is based on the share price of the Companys common stock on September 30, 2018 ($11.90 per share).
[4]	Due to the ceiling imposed on the SAR grants, the exercisable amount above can be exercised for a maximum of 785 shares of the Companys common stock as of September 30, 2018.

Note I - Equity-based Compens_5

Note I - Equity-based Compensation - Company's Stock Options and SAR Units Outstanding and Exercisable (Details) shares in Thousands	Sep. 30, 2018$ / sharesshares
Number of Options/ SARs / RSUs - Exercisable (in shares) | shares	817
Weighted Average Exercise Price - Exercisable (in dollars per share) | $ / shares	$ 8.83
Number of Options/ SARs / RSUs - Unexercisable (in shares) | shares	1,198
Weighted Average Exercise Price - Unexercisable (in dollars per share) | $ / shares	$ 1.85
Number of Options/ SARs / RSUs (in shares) | shares	2,015
Weighted Average Exercise Price (in dollars per share) | $ / shares	$ 4.68
Range 1 [Member]
Number of Options/ SARs / RSUs - Exercisable (in shares) | shares	763
Weighted Average Exercise Price - Exercisable (in dollars per share) | $ / shares	$ 8.54
Number of Options/ SARs / RSUs - Unexercisable (in shares) | shares	1,133
Weighted Average Exercise Price - Unexercisable (in dollars per share) | $ / shares	$ 1.24
Number of Options/ SARs / RSUs (in shares) | shares	1,896
Weighted Average Exercise Price (in dollars per share) | $ / shares	$ 4.18
Range 2 [Member]
Number of Options/ SARs / RSUs - Exercisable (in shares) | shares	54
Weighted Average Exercise Price - Exercisable (in dollars per share) | $ / shares	$ 12.97
Number of Options/ SARs / RSUs - Unexercisable (in shares) | shares	65
Weighted Average Exercise Price - Unexercisable (in dollars per share) | $ / shares	$ 12.46
Number of Options/ SARs / RSUs (in shares) | shares	119
Weighted Average Exercise Price (in dollars per share) | $ / shares	$ 12.69

Note J - Pension Liability (Det

Note J - Pension Liability (Details Textual) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Liability, Defined Benefit Pension Plan, Noncurrent	$ 868	$ 883

Note J - Pension Liability - Co

Note J - Pension Liability - Components of Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Components of net periodic benefit cost:
Service cost and amortization of loss	$ 18	$ 19
Interest cost	12	10
Net periodic benefit cost	$ 30	$ 29

Note K - Fair Value Measureme_3

Note K - Fair Value Measurements - Fair Value Measurements of Assets and Liabilities on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Money Market Funds [Member]
Money market mutual funds	$ 661	$ 2,998
Cash equivalents
Money market mutual funds	661	2,998
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Money market mutual funds	661	2,998
Cash equivalents
Money market mutual funds	661	2,998
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member]
Money market mutual funds
Cash equivalents
Money market mutual funds
Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member]
Money market mutual funds
Cash equivalents
Money market mutual funds
US Government-sponsored Enterprises Debt Securities [Member]
Short-term securities	2,028	786
Long-term securities	19,277	21,258
Cash equivalents
Short-term securities	2,028	786
Long-term marketable securities
Long-term securities	19,277	21,258
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Short-term securities
Long-term securities
Cash equivalents
Short-term securities
Long-term marketable securities
Long-term securities
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Short-term securities	2,028	786
Long-term securities	19,277	21,258
Cash equivalents
Short-term securities	2,028	786
Long-term marketable securities
Long-term securities	19,277	21,258
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Short-term securities
Long-term securities
Cash equivalents
Short-term securities
Long-term marketable securities
Long-term securities
Corporate Debt Securities [Member]
Short-term securities	24,988	18,430
Long-term securities	49,021	56,398
Cash equivalents
Short-term securities	24,988	18,430
Long-term marketable securities
Long-term securities	49,021	56,398
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Short-term securities
Long-term securities
Cash equivalents
Short-term securities
Long-term marketable securities
Long-term securities
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Short-term securities	24,988	18,430
Long-term securities	49,021	56,398
Cash equivalents
Short-term securities	24,988	18,430
Long-term marketable securities
Long-term securities	49,021	56,398
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Short-term securities
Long-term securities
Cash equivalents
Short-term securities
Long-term marketable securities
Long-term securities

Note L - Stockholders' Equity (

Note L - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Treasury Stock, Shares, Acquired			803,762
Treasury Stock Acquired, Average Cost Per Share			$ 12.23
Treasury Stock, Value, Acquired, Cost Method	$ 3,958	$ 1,563	$ 9,827	$ 4,365
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased	651,627		651,627
Stock Issued During Period, Shares, Employee Stock Purchase Plans and Exercise of Share-based Awards			703,000

Note M - Segment Information (D

Note M - Segment Information (Details Textual)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Number of Reportable Segments			3
Product Concentration Risk [Member] | Sales Revenue, Segment [Member] | Home [Member] | Telephony [Member]
Concentration Risk, Percentage	42.00%	53.00%	47.00%	55.00%
Product Concentration Risk [Member] | Sales Revenue, Segment [Member] | Home [Member] | Smart Home [Member]
Concentration Risk, Percentage	12.00%	13.00%	13.00%	15.00%
Product Concentration Risk [Member] | Sales Revenue, Segment [Member] | Office [Member] | VoIP [Member]
Concentration Risk, Percentage	37.00%	30.00%	33.00%	27.00%
Product Concentration Risk [Member] | Sales Revenue, Net [Member] | SmartVoice [Member] | HDClear [Member]
Concentration Risk, Percentage	9.00%	4.00%	7.00%	3.00%

Note M - Segment Information -

Note M - Segment Information - Selected Operating Results (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues	$ 32,619	$ 34,277	$ 91,381	$ 93,511
Income from operations	2,939	2,525	5,193	2,997
Home [Member]
Revenues	17,472	22,787	54,311	65,531
Income from operations	3,990	4,565	11,752	12,474
Office [Member]
Revenues	12,125	10,136	30,269	25,355
Income from operations	4,474	3,117	9,737	6,162
SmartVoice [Member]
Revenues	3,022	1,354	6,801	2,625
Income from operations	$ (5,525)	$ (5,157)	$ (16,296)	$ (15,639)

Note M - Segment Information _2

Note M - Segment Information - Reconciliation of Segment Operating Results (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income from operations	$ 2,939	$ 2,525	$ 5,193	$ 2,997
Unallocated corporate, general and administrative expenses	(499)	(412)	(1,595)	(1,267)
Equity-based compensation expenses	(1,752)	(1,438)	(5,111)	(4,526)
Intangible assets amortization expenses	(425)	(425)	(1,276)	(1,275)
Financial income, net	492	382	1,291	1,216
Total consolidated income (loss) before taxes	$ 755	$ 632	$ (1,498)	$ (2,855)

Note N - Accumulated Other Co_3

Note N - Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Balance	$ 143,114	$ 144,118	$ 146,950	$ 145,547
Net current period other comprehensive income (loss)	40	(67)	(784)	394
Balance	142,367	145,751	142,367	145,751
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
Balance	(1,996)		(1,209)
Other comprehensive income (loss) before reclassifications	26		(797)
Losses (gains) reclassified from accumulated other comprehensive income (loss)	(1)		36
Net current period other comprehensive income (loss)	25		(761)
Balance	(1,971)		(1,971)
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]
Balance	(20)
Other comprehensive income (loss) before reclassifications	13		(16)
Losses (gains) reclassified from accumulated other comprehensive income (loss)	7		16
Net current period other comprehensive income (loss)	20
Balance
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Balance	(399)		(409)
Other comprehensive income (loss) before reclassifications
Losses (gains) reclassified from accumulated other comprehensive income (loss)	5		15
Net current period other comprehensive income (loss)	5		15
Balance	(394)		(394)
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Balance	(283)		(256)
Other comprehensive income (loss) before reclassifications	(10)		(38)
Losses (gains) reclassified from accumulated other comprehensive income (loss)
Net current period other comprehensive income (loss)	(10)		(38)
Balance	(293)		(293)
AOCI Attributable to Parent [Member]
Balance	(2,698)	(1,391)	(1,874)	(1,852)
Other comprehensive income (loss) before reclassifications	29		(851)
Losses (gains) reclassified from accumulated other comprehensive income (loss)	11		67
Net current period other comprehensive income (loss)	40	(67)	(784)	394
Balance	$ (2,658)	$ (1,458)	$ (2,658)	$ (1,458)

Note N - Accumulated Other Co_4

Note N - Accumulated Other Comprehensive Income (Loss) - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Gains on available-for-sale marketable securities		$ 492	$ 382	$ 1,291	$ 1,216
Provision for income taxes		350	54	139	19
Net income		405	578	(1,637)	(2,874)
Research and development, net	[1]	9,614	9,214	27,503	27,565
Sales and marketing	[2]	3,640	3,635	11,468	10,640
General and administrative	[3]	2,362	2,483	7,612	7,342
Net income		755	$ 632	(1,498)	$ (2,855)
Reclassification out of Accumulated Other Comprehensive Income [Member]
Gains on available-for-sale marketable securities		(1)
Net income		11		67
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
Gains on available-for-sale marketable securities				36
Provision for income taxes
Net income		(1)		36
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]
Provision for income taxes
Net income		7		6
Research and development, net		5		13
Sales and marketing		1		1
General and administrative		1		2
Net income		7		16
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Provision for income taxes
Net income		5		15
Research and development, net		3		10
Sales and marketing		2		5
General and administrative		$ 5		$ 15
[1]	Includes equity-based compensation expense in the amount of $781 and $576 for the three months ended September 30, 2018 and 2017, respectively; and $2,134 and $1,815 for the nine months ended September 30, 2018 and 2017, respectively.
[2]	Includes equity-based compensation expense in the amount of $283 and $273 for the three months ended September 30, 2018 and 2017, respectively; and $954 and $870 for the nine months ended September 30, 2018 and 2017, respectively.
[3]	Includes equity-based compensation expense in the amount of $574 and $505 for the three months ended September 30, 2018 and 2017, respectively; and $1,703 and $1,566 for the nine months ended September 30, 2018 and 2017, respectively.

Note O - Government Grants (Det

Note O - Government Grants (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Financial Grants in Support of Research and Development	$ 0.2	$ 0.2	$ 1,200	$ 1,200
Financial Grants in Support of Research and Development, Royalty Obligation	5.00%		5.00%