COMMITMENTS AND CONTINGENT LIABILITIES

6 Months Ended

Dec. 31, 2015

COMMITMENTS AND CONTINGENT LIABILITIES [Abstract]

COMMITMENTS AND CONTINGENT LIABILITIES

NOTE 8:- COMMITMENTS AND CONTINGENT LIABILITIES

a. Lease commitments:

The Company and its subsidiaries lease their operating facilities under non-cancelable operating lease agreements, which expire over the next ten years, with the last ending in December 2024.

The future minimum lease commitments of the Company and its subsidiaries under various non-cancelable operating lease agreements in respect of premises that are in effect as of December 31, 2015 (unaudited), are as follows:

Year ended June 30,	(unaudited)
2016		1,137
2017		2,129
2018		2,048
2019		1,914
2020 and thereafter		8,363
		15,591

Rent expenses for the six months ended December 31, 2015 (unaudited) and 2014 (unaudited) were approximately $1,067 and $596, respectively.

b. Guarantees:

As of December 31, 2015 (unaudited), contingent liabilities exist regarding guarantees in the amount of $609, $51 and $82 in respect of office rent lease agreements, customs transactions and credit card limits, respectively.

 

c. Royalty and Governmental commitments:

As of December 31, 2015 (unaudited), the aggregate contingent liability to the Binational Industrial Research and Development Foundation (BIRD F) amounted to approximately $1,124 which would be payable by the Company if it ever did generate revenues from such project.

As of December 31, 2015 (unaudited), the aggregate contingent liability to the Office of the Chief Scientist (the OCS) amounted to $752.

d. Contractual purchase obligations:

The Company has contractual obligations to purchase certain goods and raw materials. These contractual purchase obligations relate to certain inventories held by contract manufacturers and purchase orders initiated by the contract manufacturers and suppliers, which cannot be canceled without penalty. The Company utilizes third parties to manufacture its products. In addition, it acquires raw materials or other goods and services, including product components, by issuing to suppliers authorizations to purchase based on its projected demand and manufacturing needs. As of December 31, 2015 (unaudited), the Company had non-cancelable purchase obligations totaling approximately $73,941, of which the Company already recorded a provision for loss in the amount of $1,754.

e. Legal claims:

From time to time, the Company may be involved in various claims and legal proceedings. The Company reviews the status of each matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss. These accruals are reviewed at least quarterly and adjusted to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter.