dspg20171231

Operating expenses:

^[3]

Amortization of intangible assets

^[4]

9,789

9,006

9,876

1,700

1,457

1,284

Other income (Note 10)

(2,549)

Write-off of expired option related to investment in other company

400

Total operating expenses

62,459

56,666

59,146

Operating income (loss)

(4,764)

4,180

714

Financial income, net (Note 11)

1,669

1,227

1,175

Income (loss) before income tax benefit (expense)

(3,095)

5,407

1,889

Income tax benefit (expense)

Net earnings (loss) per share:

Basic (in dollars per share)

$ (0.14)

$ 0.22

$ 0.07

Diluted (in dollars per share)

$ (0.14)

$ 0.21

$ 0.07

Weighted average number of shares used in per share computations of:

Basic net earnings (loss) per share (in shares)

22,229

21,800

21,924

Diluted net earnings (loss) per share (in shares)

22,229

22,887

23,340

[1]	Includes equity-based compensation expense in the amount of $352, $328 and $300 for the years ended December 31, 2017, 2016 and 2015, respectively.
[2]	Includes equity-based compensation expense in the amount of $2,349, $2,205 and $2,201for the years ended December 31, 2017, 2016 and 2015, respectively.
[3]	Includes equity-based compensation expense in the amount of $1,115, $806 and $641 for the years ended December 31, 2017, 2016 and 2015, respectively.
[4]	Includes equity-based compensation expense in the amount of $2,045, $1,749 and $1,950 for the years ended December 31, 2017, 2016 and 2015, respectively.

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Consolidated Statements of Operations (Parentheticals) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Equity-based compensation expense included in cost of revenues	$ 352	$ 328	$ 300
Equity-based compensation expenses included in research and development, net	2,349	2,205	2,201
Equity-based compensation expense included in sales and marketing	1,115	806	641
Equity-based compensation expense included in general and administrative	$ 2,045	$ 1,749	$ 1,950

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Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Net income	$ (3,003)	$ 4,813	$ 1,562
Changes in unrealized gains/losses	(158)	(617)	(230)
Reclassification adjustments for losses included in net income (loss)	50	17	24
Net change	(108)	(600)	(206)
Changes in unrealized gains (losses)	163	45	(38)
Reclassification adjustments for (gains) losses included in net income (loss)	(172)	(1)	621
Net change	(9)	44	583
Gains (losses) arising during the period	24	(117)	63
Amortization of actuarial loss and prior service benefit	22	14	20
Net change	46	(103)	83
Foreign currency translation adjustments, net	49	74	(161)
Other comprehensive income (loss)	(22)	(585)	299
Comprehensive income	$ (3,027)	$ 4,228	$ 1,861

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Statements of Changes in Stockholders' Equity - USD ($)
$ in Thousands

Common Stock [Member]

Additional Paid-in Capital [Member]

Treasury Stock [Member]

AOCI Attributable to Parent [Member]

Retained Earnings [Member]

Total

Balance (in shares) at Dec. 31, 2014

21,844,000

Balance at Dec. 31, 2014

Issuance of treasury stock upon purchase of common stock under employee stock purchase plan (in shares)

233,000

Issuance of treasury stock upon purchase of common stock under employee stock purchase plan

Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors (in shares)

2,269

(500)

1,769

791,000

Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors

Purchase of treasury stock (in shares)

(1,295,000)

$ (1)

(13,268)

$ (13,268)

5,092

Change in accumulated other comprehensive income

1,562

299

Balance (in shares) at Dec. 31, 2015

21,573,000

Balance at Dec. 31, 2015

Issuance of treasury stock upon purchase of common stock under employee stock purchase plan (in shares)

233,000

Issuance of treasury stock upon purchase of common stock under employee stock purchase plan

Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors (in shares)

2,270

(492)

1,778

1,176,000

Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors

Purchase of treasury stock (in shares)

(1,051,000)

$ (1)

(10,666)

$ (10,666)

5,088

Change in accumulated other comprehensive income

4,813

(585)

Balance (in shares) at Dec. 31, 2016

21,931,000

Balance at Dec. 31, 2016

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

Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors (in shares)

2,225

(330)

1,895

663,000

Issuance of treasury stock upon exercise of stock options, stock appreciation rights and restricted stock units by employees and directors

Purchase of treasury stock (in shares)

6,500

(5,397)

$ 1,162

(389,000)

(4,490)

$ (4,490)

5,861

Change in accumulated other comprehensive income

(3,003)

(22)

Balance (in shares) at Dec. 31, 2017

22,433,000

Balance at Dec. 31, 2017

[1]	Represents an amount lower than $1.

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Consolidated Statements of Cash Flows - USD ($)
$ in Thousands

Cash flows from operating activities:

Adjustments required to reconcile net income to net cash provided by operating activities:

Equity-based compensation expenses related to employees’ stock options, SARs and RSUs

5,861

5,088

5,092

Capital loss from sale and disposal of property and equipment

Realized losses from sale of marketable securities, net

Amortization of intangible assets

1,700

1,457

1,284

Write-off of expired option related to investment in other company

400

Accrued interest and amortization of premium on marketable securities and short-term deposits

363

610

847

Change in operating assets and liabilities:

Deferred income tax assets and liabilities, net

(459)

320

(756)

Trade receivables, net

5,728

168

945

Other accounts receivable and prepaid expenses

Long-term prepaid expenses and lease deposits

Accrued compensation and benefits

Accrued expenses and other accounts payable

(704)

(1,379)

(499)

Accrued severance pay, net

Net cash provided by operating activities

8,503

16,515

12,224

Cash flows from investing activities:

Purchase of marketable securities

(38,923)

(47,934)

(35,475)

Purchase of short-term deposits

(10,884)

(7,601)

(5,563)

Proceeds from maturity of marketable securities

21,499

35,090

20,127

Proceeds from sales of marketable securities

19,226

14,277

13,238

Proceeds from redemption of short-term deposits

8,309

5,601

2,589

Purchases of property and equipment

(838)

(2,103)

(2,297)

Acquisition of initially consolidated subsidiary (1)

Proceeds from sale of fixed assets

(494)

Decrease (increase) in restricted deposits

(445)

455

Net cash used in investing activities

(2,056)

(3,057)

(6,926)

Cash flows from financing activities:

Issuance of common stock and treasury stock upon exercise of stock options

1,509

1,457

1,242

Repayment of short-term loan

(168)

Net cash used in financing activities

(4,465)

(10,727)

(13,206)

(2,956)

(9,438)

(11,964)

Increase (decrease) in cash and cash equivalents

3,491

4,020

(6,666)

Cash and cash equivalents at the beginning of the year

17,752

13,704

20,544

Cash (erosion) due to exchange rate differences

(174)

Cash and cash equivalents at the end of the year

During the third quarter of 2016, the Company acquired the remaining 86% of the equity of a private company in Asia that it previously invested in, bringing its holding in such company to 100%. The net fair value of the assets acquired and the liabilities assumed, on the date of acquisition, was as follows:

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Supplemental Cash Flow Information

Cash Flow, Supplemental Disclosures [Text Block]

the Company acquired the remaining

86%

of the equity of a private company in Asia that it previously invested in, bringing its holding in such company to

100%.

The net fair value of the assets acquired and the liabilities assumed, on the date of acquisition, was as follows:

Working capital, excluding cash and cash equivalents	$	(386	)
Property and equipment		4
Distribution agreement		2,086
Deferred tax liability		(377	)
Goodwill		967
		2,294

The acquisition date fair value of the Company's previously held equity interest in the private company in Asia		(1,800	)


	$	494

The accompanying notes are an integral part of the consolidated financial statements.

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Note 1 - General

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

The Company sells its products primarily through distributors and directly to OEMs and original design manufacturers (ODMs) that incorporate the Company

GENERAL

’s products into consumer and enterprise products. The Company’s future performance will depend, in part, on the continued success of its distributors in marketing and selling its products. The loss of the Company’s distributors and the Company’s inability to obtain satisfactory replacements in a timely manner

harm the Company’s sales and results of operations. In addition, the Company expects that a limited number of customers, varying in identity from period-to-period, will account for a substantial portion of its revenues in any period. The loss of, or reduced demand for products from, any of the Company’s major customers could have a material adverse effect on the Company’s business, financial condition and results of operations.

The following table represents the Company

’s sales, as a percentage of the Company’s total revenues, for the years ended

	Year ended December 31,
Major Customers/ Distributors	2017		2016		2015
VTech Holdings Ltd.		27%		29%		31%

Shenzhen Guo Wei Electronics Ltd.		*		*%		12%

Tomen Electronics Corporation (“Tomen Electronics”) ¹ ²		12%		12%		16%

Ascend Technology Inc. (“Ascend Technology”) ¹ ³		23%		16%		15%

Samsung Electronics Ltd.		*		12%		-

*Less than

10%.

¹ Distributor

² Tomen Electronics sells the Company

’s products to a limited number of customers. One customer, Panasonic Communications Co., Ltd. (“Panasonic”) has continually accounted for a majority of the sales of Tomen Electronics. Sales to Panasonic through Tomen Electronics generated approximately

³ Ascend Technology sells the Company

’s products to a limited number of customers; however

none

of those customers accounted for more than

’s integrated circuit products are manufactured and tested by independent foundries and test houses. While these foundries and test houses have been able to adequately meet the demands of the Company’s business, the Company is and will continue to be dependent upon these foundries and test houses to achieve acceptable manufacturing yields, quality levels and costs, and to allocate to the Company a sufficient portion of foundry and test capacity to meet the Company’s needs in a timely manner. Revenues could be materially and adversely affected should any of these foundries and test houses fail to meet the Company’s request for product manufacturing due to a shortage of production capacity, process difficulties, low yield rates or financial instability. Additionally, certain of the raw materials, components, and subassemblies included in the products manufactured by the Company’s original equipment manufacturer (OEM) customers, which incorporate the Company’s products, are obtained from a limited group of suppliers. Disruptions, shortages, or termination of certain of these sources of supply could occur and could negatively affect the Company’s financial condition and results of operations.

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Note 2 - Significant Accounting Policies

Significant Accounting Policies [Text Block]

SIGNIFICANT ACCOUNTING POLICIES

The consolidated financial statements are prepared according to United States generally accepted accounting principles (“U.S. GAAP”).

Use of estimates:

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company

’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time that these estimates, judgments and assumptions are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Financial statements in U.S. dollars:

Most of the Company

’s revenues are generated in U.S. dollars. In addition, a substantial portion of the Company’s costs are incurred in U.S. dollars. The Company’s management believes that the U.S. dollar is the currency of the primary economic environment in which the Company operates. Thus, the functional and reporting currency of the Company is the U.S. dollar.

Monetary accounts maintained in currencies other than the

U.S. dollar are remeasured into dollars in accordance with ASC

“Translation of Financial Statements.” All transaction gains and losses resulting from the remeasurement of monetary balance sheet items are reflected in the consolidated statements of operations as financial income or expenses as appropriate.

830

30,

The financial statements of the Company

’s subsidiary – DSP Group Technologies GmbH whose functional currency is in Euro, has been translated into dollars. All amounts on the balance sheets have been translated into the dollar using the exchange rates in effect on the relevant balance sheet dates. All amounts in the consolidated statements of operations have been translated into the dollar using the average exchange rate for the relevant periods. The resulting translation adjustments are reported as a component of accumulated other comprehensive income (loss) in changes in stockholders’ equity.

Accumulated other comprehensive loss related to

foreign currency translation adjustments, net amounted to

Principles of consolidation:

The consolidated financial statements include the accounts of the Company. Intercompany transactions and balances have been eliminated in consolidation.

Cash equivalents:

Cash equivalents are short-term highly liquid investments, which are readily convertible to cash with

original

maturity of

months or less from the date of acquisition.

Restricted deposits:

Restricted deposits include deposits which are used as security for lease agreements.

Short-term deposits:

Bank deposits with original maturities of more than

months and less than

year are presented at cost, including accrued interest.

Marketable securities:

The Company accounts for investments in debt securities in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”)

“Investments in Debt and Equity Securities.” Management determines the appropriate classification of the Company

320

10,

’s investments in debt securities at the time of purchase and reevaluates such determinations at each balance sheet date.

The Company classified all of its investments in marketable securities as available for sale.

Available-for-sale securities are carried at fair value, with the unrealized gains and losses, reported in

accumulated other comprehensive income (loss) using the specific identification method. The amortized cost of marketable securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization is included in financial income, net. Interest and dividends on securities are included in financial income, net.

’s intent to sell, or whether it is more likely than

that the Company will be required to sell the investment before recovery of cost basis. For debt securities, only the decline attributable to deteriorating credit of an-other-than-temporary impairment is recorded in the consolidated statement of operations, unless the Company intends, or more likely than

it will be forced, to sell the security.

record an-other-than-temporary impairment loss (see Note

Fair value of financial instruments:

Cash and cash equivalents, restricted deposits, short-term deposits, trade receivables, trade payables and accrued liabilities approximate fair value due to short

-term maturities of these instruments. Marketable securities and derivative instruments are carried at fair value. See Note

for more information.

-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in valuation methodologies to measure fair value:

Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Include other inputs that are directly or indirectly observable in the marketplace.

Unobservable inputs which are supported by little or

market activity.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

Inventories:

Inventories are stated at the lower

of cost and net realizable value. Inventory reserves are provided to cover risks arising from slow-moving items or technological obsolescence.

Cost is determined as follows:

Work in progress and finished products- on the basis of raw materials and manufacturing costs on an average basis.

respectively, is stated net of inventory reserves of

in each year, respectively. If actual demand for the Company’s products deteriorates, or market conditions are less favorable than those projected, additional inventory reserves

Property and equipment, net:

be required.

	%			Mainly %

Computers and equipment	20	-	33		33
Office furniture and equipment	7	-	15		15
Leasehold improvements	see below

Property and equipment of the Company are reviewed for impairment w

henever events or changes in circumstances indicate that the carrying amount of an asset

be recoverable. The recoverability of assets to be held and used is measured by a comparison of the carrying amount of such assets to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.

impairment losses were identified for property and equipment.

The Company accounts for costs of computer software developed or obtained for internal use in accordance with FASB ASC

“The Internal Use Software.” FASB ASC

40,

requires the capitalization of certain costs incurred in connection with developing or obtaining internal use software. During

the Company capitalized

$0,

respectively, of internal use software cost. Such costs are amortized using the straight-line method over their estimated useful life of

$1,086,

Goodwill and other intangible assets:

years.

The goodwill and certain other purchased intangible assets have been recorded as a result of the BoneTone acquisition and the acquisition of a private company in Asia.

Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill is

amortized, but rather is subject to an annual impairment test.

-phase process for impairment testing of goodwill. The

phase screens for impairment, while the

phase (if necessary) measures impairment. Goodwill impairment is deemed to exist if the net book value of a reporting unit exceeds its estimated fair value. In such a case, the

phase is then performed, and the Company measures impairment by comparing the carrying amount of the reporting unit

’s goodwill to the implied fair value of that goodwill. An impairment loss is recognized in an amount equal to the excess. ASC

allows an entity to

assess qualitative factors to determine whether it is necessary to perform the

-step quantitative goodwill impairment test. An entity is

required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than

that its fair value is less than its carrying amount.

Alternatively, ASC

permits an entity to bypass the qualitative assessment for any reporting unit and proceed directly to performing the

step of the goodwill impairment test.

The Company performs an annual impairment test on

December 31

of each fiscal year, or more frequently if impairment indicators are present.

’s reporting units are consistent with the reportable segments identified in Note

16.

For the fiscal year ended

the Company performed a quantitative assessment on its goodwill and

Intangible assets that are

considered to have an indefinite useful life are amortized using the straight-line basis over their estimated useful

lives, which range from

years. The carrying amount of these assets is reviewed whenever events or changes in circumstances indicate that the carrying value of an asset

be recoverable. Recoverability of these assets is measured by comparison of the carrying amount of the asset to the future undiscounted cash flows the asset is expected to generate.

If such asset is considered to be impaired, the impairment to be recognized is measured as the difference between the carrying amount of the assets and the fair value of the impaired asset.

During the fiscal year ended

DSP Group Ltd., the Company

Severance pay:

’s Israeli subsidiary (“DSP Israel”), has a liability for severance pay pursuant to Israeli law, based on the most recent monthly salary of its employees multiplied by the number of years of employment as of the balance sheet date for such employees. DSP Israel’s liability is fully provided for by monthly accrual and deposits with severance pay funds and insurance policies.

The deposited funds include profits accumulated up to the balance sheet date. The deposited funds

be withdrawn only upon the fulfillment of the obligation pursuant to Israel

’s Severance Pay Law or labor agreements.

’s Korean subsidiary has a statutory liability for severance pay pursuant to Korean law based on the most recent monthly salary of its employees multiplied by the number of years of employment as of the balance sheet date for such employees. This Korean subsidiary’s liability is fully accrued.

Severance expenses for the years ended

The Company generates its revenues from sales of products. The Company sells its products through a direct sales force and through a network of distributors.

Product sales are recognized when persuasive evidence of an agreement exists, delivery of the product has occurred, the fee is fixed or determinable, collectability is reasonably assured, and

significant obligations remain.

Persuasive evidence of an arrangement exists -

The Company’s sales arrangements with customers are pursuant to written documentation, either a written contract or purchase order. The actual documentation used is dependent on the business practice with each customer. Therefore, the Company determines that persuasive evidence of an arrangement exists with respect to a customer when it has a written contract, or a written purchase order from the customer.

Delivery has occurred

- Each written documentation relating to a sale arrangement that is agreed upon with the customer specifically sets forth when risk and title are being transferred (based on the agreed International Commercial terms, or “INCOTERMS”). Therefore, the Company determines that risk and title are transferred to the customer when the terms of the written documentation based on the applicable INCOTERMS are satisfied and thus delivery of its products has occurred.

Separately, the Company has consignment inventory which is held for specific customers at the customers

’ premises. It recognizes revenue on the consigned inventory when the customer consumes the products from the warehouse, as that is when per the consignment inventory agreements, risk and title passes to the customer and the products are deemed delivered to the customer.

Price is fixed or determinable

- Pursuant to the customer agreements, the Company does

provide any price protection, stock rotation, right of return and/or other discount programs and thus the fee is considered fixed and determinable upon execution of the written documentation with the customers. Additionally, payments that are due within the normal course of the Company’s credit terms, which are currently

more than

months from the contract date, are deemed to be fixed and determinable based on the Company’s successful collection history for such arrangements.

Collectability of the related receivable is reasonably assured

- The Company determines whether collectability is reasonably assured on a customer-by-customer basis pursuant to its credit review policy. The Company typically sells to customers with whom it has a long-term business relationship and a history of successful collection. A significant number of the Company’s customers are also large original equipment manufacturers with substantial financial resources. For a new customer, or when an existing customer substantially expands its commitments, the Company evaluates the customer’s financial position, the number of years the customer has been in business, the history of collection with the customer and the customer’s ability to pay and typically assigns a credit limit based on that review. The Company increases the credit limit only after it has established a successful collection history with the customer. If the Company determines at any time that collectability is

reasonably assured under a particular arrangement based upon its credit review process, the customer’s payment history or information that comes to light about a customer’s financial position, it recognizes revenue under that arrangement as customer payments are actually received.

With respect to product sales through the Company

’s distributors, such product revenues are deferred until the distributors resell the Company’s products to the end-customers (“sell through”) and recognized based upon receipt of reports from the distributors, provided all other revenue recognition criteria as discussed above are met.

’s primary business relationships and responsibilities are directly with the end-user customers. Because the Company views its arrangements with its distributors as that of consignment relationships, delivery of goods is

deemed to have occurred solely upon delivery to the distributors. Therefore, the Company recognizes revenues from distributors under the “sell-through” method. As a result, revenue is deferred at the time of shipment to the distributors and is recognized only when the distributors sell the products to the end-user customers.

Warranty:

The Company warrants its products against errors, defects and bugs for generally

year. The Company estimates the costs that

be incurred under its warranty and records a liability in the amount of such costs. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Warranty costs and liability were immaterial for the years ended

Research and development costs, net:

Research and development costs, net of grants received, are charged to the consolidated statement of operations as incurred.

Government grants:

Government grants received by the Company

’s Israeli subsidiary relating to categories of operating expenditures are credited to the consolidated statements of income during the period in which the expenditure to which they relate is charged. Royalty and non royalty bearing grants from the Israeli Innovation Authority ("IIA") (formerly known as Office of the Chief Scientist) for funding certain approved research and development projects are recognized at the time when the Company’s Israeli subsidiary is entitled to such grants, on the basis of the related costs incurred, and are included as a deduction from research and development expenses, net.

The Company recorded grants in the amount of

respectively. The vast majority of those grants were bearing royalties.

’s Israeli subsidiary is obligated to pay royalties amounting to

of the sales of certain products the development of which received grants from the IIA in previous years. The obligation to pay these royalties is contingent on actual sales of such products. Grants received from the IIA

become repayable if certain criteria under the grants are

met. The Israeli Research and Development Law provides that know-how developed under an approved research and development program

parties without the approval of the IIA. Such approval is

required for the sale or export of any products resulting from such research or development. The IIA, under special circumstances,

approve the transfer of IIA-funded know-how outside Israel, in the following cases: (a) the grant recipient pays to the IIA a portion of the sale price paid in consideration for such IIA-funded know-how or in consideration for the sale of the grant recipient itself, as the case

be, which portion will

exceed

times the amount of the grants received plus interest (or

times the amount of the grant received plus interest, in the event that the recipient of the know-how has committed to retain the R&D activities of the grant recipient in Israel after the transfer); (b) the grant recipient receives know-how from a

party in exchange for its IIA-funded know-how; (c) such transfer of IIA-funded know-how arises in connection with certain types of cooperation in research and development activities; or (d) if such transfer of know-how arises in connection with a liquidation by reason of insolvency or receivership of the grant recipient.

Equity-based compensation:

, the Company had

equity incentive plans from which the Company

grant future equity awards and

expired equity incentive plans from which

future equity awards

be granted but had outstanding equity awards granted prior to expiration. The Company also had

employee stock purchase plan. See full description in Note

12.

The Company accounts for equity-based compensation in accordance with FASB ASC

“Stock Compensation” (“FASB ASC

718,

requires companies to estimate the fair value of equity-based awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company’s consolidated statements of operations.

requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Estimated forfeitures are based on actual historical pre-vesting forfeitures.

718

foreseeable plans to pay dividends.

paid dividends and has

With

respect to the Company’s employee stock purchase plan, the Company selected the Monte Carlo pricing model as the most appropriate fair value method.

majority of the Company’s equity awards until

were in the form of stock appreciation rights (SARs). Starting in

2013,

a majority of the Company’s equity awards were in the form of restricted stock unit (“RSU”) grants

The fair value of each restricted stock unit (“RSU”) is

based on the market value of the underlying share on the date of grant.

Basic and diluted income (loss) per share:

The total weighted average number of shares related to the outstanding stock options, SARs and RSUs excluded from the calculation of diluted net income

260,

“Earnings Per Share.”

per share due to their anti-dilutive effect was

The Company accounts for income taxes in accordance with

FASB ASC

“Income Taxes.” This topic prescribes the use of the liability method, whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value.

Deferred tax liabilities and assets are classified as non-current based on the adopting of Accounting Standards Update (“ASU”)

“Balance Sheet Classification of Deferred Taxes.” Prior to the adoption of ASU

U.S. GAAP required an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. ASU

was issued to simplify the presentation of deferred income taxes. Deferred tax liabilities and assets are now classified as noncurrent in a classified statement of financial position

for all period presented.

The Company accounts for uncertain tax positions in accordance with ASC

which contains a

-step approach to recognizing and

measuring uncertain tax positions. The

step is to evaluate the tax position taken or expected to be taken in a tax return by determining whether the weight of available evidence indicates that it is more likely than

that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The

step is to measure the tax benefit as the largest amount that is more than

likely to be realized upon ultimate settlement. The Company reevaluates its income tax positions periodically to consider factors such as changes in facts or circumstances, changes in or interpretations of tax law, effectively settled issues under audit, and new audit activity. Such a change in recognition or measurement would result in recognition of a tax benefit or an additional charge to the tax provision.

Concentrations of credit risk:

The majority of cash and cash equivalents and short-term deposits of the Company are invested in dollar deposits with major U.S., European and Israeli banks. Deposits

in U.S. banks

be in excess of insured limits and are

insured in other jurisdictions. Generally, cash and cash equivalents and

these

deposits

be withdrawn upon demand and therefore bear low risk.

’s marketable securities consist of investment-grade corporate bonds and U.S. government-sponsored enterprise (“GSE”) securities. As of

the amortized cost of the Company’s marketable securities was

$98,081,

and their stated market value was

$96,872,

representing an unrealized net loss of

$1,209.

Taiwan, China, Korea, Europe and the United States. The Company performs ongoing credit evaluations of their customers. A specific allowance for doubtful accounts is determined, based on management’s estimates and historical experience. Under certain circumstances, the Company

require a letter of credit. The Company covers most of its trade receivables through credit insurance. As of

allowance for doubtful accounts was provided.

The Company has

off-balance-sheet concentration of credit risk, except for certain derivative instruments as mentioned below.

Derivative instruments:

The Company accounts for derivatives and hedging based on FASB ASC

No.815,

”Derivatives and Hedging”.

ASC

requires companies to recognize all of their derivative instruments as either assets or liabilities on the balance sheet at fair value.

months with put and call options and forward contracts. These forward contracts and put and call options are designated as cash flow hedges and are all effective as hedges of these expenses.

The fair value of the outstanding derivative instruments at

		Fair value of derivative instruments
Derivative assets		December 31,
(liabilities) designated as hedging	Balance sheet location	2017		2016

Foreign exchange forward contracts and put and call options	Other accounts receivable and prepaid expenses (Accrued expenses and other accounts payable)	$	-	$	9

	Total	$	-	$	9

The effect of derivative instruments in cash flow hedging transactions on income and other comprehensive income (“OCI”) for the years ended

	Gains (losses) on derivatives recognized in OCI
	Year ended December 31,
	2017		2016		2015

Foreign exchange forward contracts and put and call options	$	163	$	45	$	(38	)

		Gains (losses) on derivatives reclassified from OCI to income
		Year ended December 31,
	Location	2017		2016		2015

Foreign exchange forward contracts and put and call options	Operating expenses	$	172	$	1	$	(621	)

outstanding option or forward contracts.

the Company had

the Company had outstanding option contracts in the amount of

December 31, 2016,

$6,000.

the Company had outstanding option contracts and forward contracts in the amount of

December 31, 2015,

Comprehensive income:

The Company accounts for comprehensive income in accordance with FASB ASC

“Comprehensive Income.” Comprehensive income generally represents all changes in stockholders

220,

’ equity during the period except those resulting from investments by, or distributions to, stockholders. The Company determined that its items of other comprehensive income relate to gains and losses on hedging derivative instruments, unrealized gains and losses on available-for-sale securities, unrealized gains and losses from pension and unrealized gain and losses from foreign currency translation adjustments.

The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for

The following table provides details about reclassifications out of accumulated other comprehensive income (loss) for

	Unrealized gains (losses) on available- for-sale marketable securities			Unrealized gains (losses) on Cash Flow Hedges			Unrealized gains (losses) on components of defined benefit plans			Unrealized gains (losses) on foreign currency translation			Total
January 1, 2017	$	(1,101	)	$	9		$	(455	)	$	(305	)	$	(1,852	)
Other comprehensive income (loss) before reclassifications		(158	)		163			24			49			78
Losses (gains) reclassified from accumulated other comprehensive income (loss)		50			(172	)		22			-			(100	)
Net current period other comprehensive income (loss)		(108	)		(9	)		46			49			(22	)

December 31, 2017	$	(1,209	)	$	-		$	(409	)	$	(256	)	$	(1,874	)

2017:

Details about Accumulated Other Comprehensive Income (Loss) Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)			Affected Line Item in the Statement of Income (Loss)

Losses on available-for-sale marketable securities	$	50		Financial income, net
		-		Provision for income taxes
		50		Total, net of income taxes

Gains on cash flow hedges
		(135	)	Research and development
		(13	)	Sales and marketing
		(24	)	General and administrative
		(172	)	Total, before income taxes
		-		Provision for income taxes
		(172	)	Total, net of income taxes

Losses on components of defined benefit plans		14		Research and development
		8		Sales and marketing
		22		Total, before income taxes
		-		Provision for income taxes
		22		Total, net of income taxes

Total reclassificati ons for the period		(100	)	Total, net of income taxes

Treasury stock at cost

“Treasury Stock” and charges the excess of the purchase cost over the re-issuance price (loss) to retained earnings. The purchase cost is calculated based on the specific identification method. In case the purchase cost is lower than

the re-issuance price, the Company credits the difference to additional paid-in capital.

Recently Issued Accounting Guidance:

May 2014,

the FASB issued new guidance related to revenue recognition, which outlines a comprehensive revenue recognition model and supersedes most current revenue recognition guidance. The new guidance requires a company to recognize revenue as control of goods or services transfers to a customer at an amount that reflects the expected consideration to be received in exchange for those goods or services. It defines a

five

-step approach for recognizing revenue, which

require a company to use more judgment and make more estimates than under the current guidance. In addition, the new standard requires expanded disclosures. The Company has adopted the standard effective

January 1, 2018

using the modified retrospective method. In preparation for adoption of the standard, the Company has implemented internal controls and key system functionality to enable the preparation of financial information including the assessment of the impact of the standard. The Company currently estimates the cumulative adjustment will decrease the Company’s retained deficit by

$94,

the Company’s assets by

$21

and that the Company’s current liabilities in an amount currently estimated at

$115

as of

Given the scope of work required to implement the new revenue recognition rules and disclosure requirements under the new guidance, the Company has made progress in the identification of changes to policy, processes and controls, and the Company continues to assess data availability and presentation necessary to meet the additional disclosure requirements of the guidance in the notes to the consolidated financial statements for the adoption period and onwards.

Other than specified above, the Company does

otherwise expect the adoption of the new guidance will have a material impact on its businesses.

), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or

the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than

twelve

months regardless of their classification. Leases with a term of

twelve

months or less will be accounted for similar to existing guidance for operating leases. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. ASC

842

supersedes the previous leases standard, ASC

840.

The standard is effective on

January 1, 2019,

with early adoption permitted. The Company currently anticipates adopting the new standard effective

January 1, 2019

and is evaluating the impact of the adoption of this standard on its consolidated financial statements

which amends the guidance on the classification of certain cash receipts and payments in the statement of cash flows. This ASU is effective for annual and interim reporting periods beginning after

December 15, 2017

and is applied retrospectively. Early adoption is permitted including adoption in an interim period. The Company expects

material impact on its statement of cash flows upon adoption.

"Improvements to Employee Share-Based Payment Accounting." This ASU affects entities that issue share-based payment awards to their employees. The ASU is designed to simplify several aspects of accounting for share-based payment award transactions, which include the income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows and forfeiture rate calculations. The Company will adopt this ASU on its effective date of

January 1, 2017.

The adoption of this ASU is

expected to have a material impact on the Company's consolidated financial statements.

Intangibles: Goodwill and Other: Simplifying the Test for Goodwill Impairment. To simplify the subsequent measurement of goodwill, the amendments eliminate Step

from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should

exceed the total amount of goodwill allocated to that reporting unit. In addition, the income tax effects of tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The amendments also eliminate the requirements for any reporting unit with a

zero

or negative carrying amount to perform Step

of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the qualitative impairment test is necessary. The amendments should be applied on a prospective basis. The nature of and reason for the change in accounting principle should be disclosed upon transition. The amendments in this update should be adopted for annual or any interim goodwill impairment tests in fiscal years beginning after

Early adoption is permitted on testing dates after

15,

2019.

January

2017.

The Company is currently evaluating the impact of adopting the new guidance on its consolidated financial statements, but it is

June 2016,

FASB issued ASU

“Measurement of Credit Losses on Financial Instruments” which requires an allowance to be recorded for all expected credit losses for financial assets. The allowance for credit losses is based on historical information, current conditions and reasonable and supportable forecasts. The new standard also makes revisions to the other than temporary impairment model for available-for-sale debt securities. Disclosures of credit quality indicators in relation to the amortized cost of financing receivables are further disaggregated by year of origination. The new accounting guidance is effective for interim and annual periods beginning after

December 15, 2019

with early adoption permitted for interim and annual periods beginning after

December 15, 2018.

The amendments will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the

reporting period in which the guidance is effective. The Company is currently evaluating the impact of adopting this new guidance on its consolidated financial statements, but it is

Derivatives and Hedging (Topic

): Targeted Improvements to Accounting for Hedging Activities,” which expands the activities that qualify for hedge accounting and simplifies the rules for reporting hedging transactions. The standard is effective for the Company beginning on

January 1, 2019.

Early adoption is permitted. The Company does

expect that the adoption of this standard will have a material impact on its consolidated financial statements and related disclosures

Compensation—Retirement Benefits (Topic

): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which requires that an employer disaggregate the service cost component from the other components of net benefit cost. The rule also provide explicit guidance on how to present the service cost component and the other components of net benefit cost in the income statement and allows only the service cost component of net benefit cost to be eligible for capitalization. The rule is effective for the Company beginning on

Early adoption is permitted. The rule is to be applied using a retrospective transition method to adopt the requirement for separate presentation in the income statement of service costs and other components and a prospective transition method to adopt the requirement to limit the capitalization of benefit costs to the service cost component. This rule is

expected to have a material effect on the Company’s consolidated financial statements

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Note 3 - Marketable Securities and Time Deposits

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

MARKETABLE SECURITIES AND TIME DEPOSITS

The following is a summary of marketable securities and time deposits at

	Amortized cost				Unrealized gains (losses), net						Fair value
	201 7		2016		201 7			2016			201 7		2016

Short-term deposit	$	5,481	$	7,610	$	-		$	-		$	5,481	$	7,610
Long -term deposit		5,013		-		-			-			5,013		-
U.S. GSE securities		22,359		24,351		(315	)		(289	)		22,044		24,062
Corporate obligations		75,722		76,264		(894	)		(813	)		74,828		75,451

	$	108,575	$	108,225	$	(1,209	)	$	(1,102	)	$	107,366	$	107,123

The amortized costs of marketable

by contractual maturities or anticipated dates of sale, are shown below

	Amortized		Unrealized gains (losses)					Fair
	cost		Gains		Losses			value

Due in one year or less	$	19,239	$	3	$	(26	)	$	19,216
Due after one year to five years		78,842		10		(1,196	)		77,656

	$	98,081	$	13	$	(1,222	)	$	96,872

The amortized cost of marketable debt securities at

by contractual maturities or anticipated dates of sale, are shown below

	Amortized		Unrealized gains (losses)					Fair
	cost		Gains		Losses			value

Due in one year or less	$	21,491	$	6	$	(76	)	$	21,421
Due after one year to six years		79,124		44		(1,076	)		78,092

	$	100,615	$	50	$	(1,152	)	$	99,513

The actual maturity dates

differ from the contractual maturities because debtors

have the right to call or prepay obligations without penalties.

The total fair value of marketable securities with outstanding unrealized losses as of

unrealized losses for these marketable securities amounted to

$1,222.

Of the

$1,222

unrealized losses outstanding as of

a portion of which in the amount of

$775

months and the remaining portion of

$447

months.

The total fair value of marketable securities with outstanding unrealized losses as of

December 31, 2016

amounted to

$80,819,

while the unrealized losses for these marketable securities amounted to

$1,152.

Of the

$1,152

unrealized losses outstanding as of

December 31, 2016,

a portion of which in the amount of

$85

months and the remaining portion of

$1,067

months.

Management believes that as of

December 31,

the unrealized losses in the Company’s investments in all types of marketable securities were temporary and

impairment loss was realized in the Company’s consolidated statements of operations.

The unrealized losses related to

the Company’s marketable securities were primarily due to changes in interest rates. Because the Company does

intend to sell the investments and it is

more likely than

that the Company will be required to sell the investments before recovery of their amortized cost bases, which

be maturity, the Company does

consider those investments to be other-than-temporarily impaired at

December 31, 2017.

Proceeds from maturity of available-for-sale marketable securities during

respectively. Proceeds from sales of available-for-sale marketable securities during

, respectively. Realized gains from the sale of available-for sale marketable securities for

respectively. Realized losses from the sale of available-for sale marketable securities for

respectively. The Company determines realized gains or losses on the sale of available-for-sale marketable securities based on a specific identification method.

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Note 4 - Other Accounts Receivable and Prepaid Expenses

Other Accounts Receivable and Prepaid Expenses Disclosure [Text Block]

OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES

	December 31,
	201 7		2016
Prepaid expenses	$	1,612	$	1,262
Tax and governmental receivables		1,019		606
Deposits		249		304
Others		287		159

	$	3,167	$	2,331

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Note 5 - Inventories

Inventory Disclosure [Text Block]

Inventories are composed of the following:

INVENTORIES

	December 31,
	201 7		2016

Work-in-progress	$	3,577	$	5,784
Finished products		5,845		3,964

	$	9,422	$	9,748

Inventory write-downs amounted to $

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Note 6 - Property and Equipment

Property, Plant and Equipment Disclosure [Text Block]

Composition of assets, grouped by major classifications, is as follows:

PROPERTY AND EQUIPMENT

	December 31,
	201 7		2016
Cost:
Computers and equipment	$	21,465	$	20,636
Office furniture and equipment		1,429		1,537
Leasehold improvements		5,060		5,004

		27,954		27,177
Less - accumulated depreciation		24,770		23,047

Depreciated cost	$	3,184	$	4,130

During

the Company disposed or sold equipment and leasehold improvements, which ceased to be used, in the amount of

$98.

Capital loss in an amount of

$19

was recorded due to this disposal of equipment in the consolidated statement of operations.

During

the Company disposed or sold equipment and l

easehold improvements, which ceased to be used, in the amount of

$953.

$10

of capital loss was recorded due to this disposal of equipment in the consolidated statement of operations.

Depreciation expensesamounted to

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Note 7 - Intangible Assets

Intangible Assets Disclosure [Text Block]

The following table shows the Company

INTANGIBLE ASSETS

’s intangible assets for the periods presented:

	Useful life		December 31,
	(years)		201 7		2016

Cost:


Technology (completion of the development of in-process R&D)		6		7,702		7,702
Distribution agreement		5		2,086		2,086
Non-competition agreement		3		519		519

				10,307		10,307
Accumulated amortization:


Technology (completion of the development of in-process R&D)				6,418		5,134
Distribution agreement				591		174
Non-competition agreement				519		519

				7,528		5,827






Amortized cost			$	2,779	$	4,480

Amortization expenses amounted to

Estimated amortization expenses for the years ending:

Year ending December 31,

201 8	$	1,701
201 9		417
20 20		417
202 1		244

	$	2,779

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Note 8 - Fair Value Measurements

Fair Value, Measurement Inputs, Disclosure [Text Block]

the Company measures its cash equivalents, marketable securities and foreign currency derivative contracts at fair value. Cash equivalents, marketable securities and foreign currency derivative contracts are classified within Level

FAIR VALUE MEASUREMENTS

In accordance with ASC

820,

or Level

value hierarchies. This is because cash equivalents, and marketable securities are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Foreign currency derivative contracts are classified within Level

value hierarchy as the valuation inputs are based on quoted prices and market observable data of similar instruments.

The following table provides information by value level for financial assets and liabilities that are measured at fair value on a recurring basis as of

The following table provides information by value level for financial assets and liabilities that are measured at fair value on a recurring basis as of

2017:

	Balance as of		Fair value measurements
Description	December 31, 201 7		Level 1		Level 2		Level 3

Assets

Cash equivalents
Money market mutual funds	$	2,998	$	2,998		-		-

Short-term marketable securities and time deposits
U.S. GSE securities	$	786		-	$	786		-
Corporate debt securities	$	18,430		-	$	18,430		-

Long-term marketable securities
U.S. GSE securities	$	21,258		-	$	21,258		-
Corporate debt securities	$	56,398		-	$	56,398		-
Derivative liabilities	$	-		-	$	-		-

	Balance as of		Fair value measurements
Description	December 31, 2016		Level 1		Level 2		Level 3

Assets

Cash equivalents
Money market mutual funds	$	1,370	$	1,370		-		-

Short-term marketable securities and time deposits
U.S. GSE securities	$	376		-	$	376		-
Corporate debt securities	$	21,045		-	$	21,045		-

Long-term marketable securities
U.S. GSE securities	$	23,686		-	$	23,686		-
Corporate debt securities	$	54,406		-	$	54,406		-

Derivative assets	$	9		-	$	9		-

In addition to the assets and liabilities described above, the Company

’s financial instruments also include cash and cash equivalents, restricted deposits, short term deposits, trade receivables, other accounts receivable, trade payables, accrued expenses and other payables. The fair value of these financial instruments was

materially different from their carrying value at

due to the short-term maturity of these instruments.

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Note 9 - Accrued Expenses and Other Accounts Payable

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

ACCRUED EXPENSES AND OTHER ACCOUNTS PAYABLE

	December 31,
	2017		2016

Royalties and commission	$	1,369	$	1,128
Accrued expenses		896		1,385
Accrued l egal, and accounting expenses		367		537

Governmental payables		141		421
Others		115		85

	$	2,888	$	3,556

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Note 10 - Accrued Pension Liabilities

Pension and Other Postretirement Benefits Disclosure [Text Block]

ACCRUED PENSION LIABILITIES

the defined benefits plans that are accounted for in the Company’s consolidated financial statements are the pension plans in Germany and India. Consistent with the requirements of local law, the Company deposits funds for certain plans with insurance companies,

-party trustees, or into government-managed accounts, and/or accrues for the unfunded portion of the obligation.

’s pension obligation in Germany relating to the unvested pension claims (i.e. future obligation that will result from future service period) of the employees were outsourced in

November 2010

to an external insurance company (“Nuremberger Versicherung”). From and after the outsourcing date, the Company is required to pay premiums to the external insurance company and in return the pension benefits earned by the German employees are covered by the Company’s arrangement with the

external insurance company. The Company legally is released from its obligations to the German employees once the premiums are paid, and it is

longer subject to any of the risks and rewards associated with the benefit obligations covered and the plan assets transferred to

the external insurance company. Since the outsourcing arrangement meets the requirements of a nonparticipating annuity contract, the Company treats the costs of the outsourcing arrangement as the costs of the benefits being earned in accordance with ASC Paragraph

of ASC

“Compensation—Retirement Benefits.”

The following tables provide a reconciliation of the changes in the pension plans

’ benefit obligation and the fair value of assets for the years ended

and the statement of funded status as of

The assumptions used in the measurement of the Company

2016:

	December 31,
	201 7			2016

Accumulated benefit obligation	$	871		$	792

Change in benefit obligation

Benefit obligation at beginning of year	$	803		$	738
Service cost		4			4
Interest cost		14			17
Benefits paid from the plan		(22	)		(55	)
Actuarial (gain) loss		(22	)		121
Exchange rates and others		106			(22	)

Benefit obligation at end of year	$	883		$	803

Change in plan assets

Fair value of plan assets at beginning of year		-			54
Actual return on plan assets		-			3
Benefits paid from the plan		-			(58	)
Exchange rates		-			1

Fair value of plan assets at end of year	$	-		$	-

’s pension expense and benefit obligations as of

	Year ended December 31,
	201 7			2016			201 5
Weighted-average assumptions
Discount rate		1.8	%		1.7	%		2.5	%
Expected return on plan assets		-			4.59	%		4.28	%
Rate of compensation increase		2.5	%		2.5	%		2.5	%

compensation increase is determined by the Company, based on its long-term plans for such increases.

The following table provides the components of net periodic benefit cost for the years ended

	December 31,
	201 7		2016			201 5
Components of net periodic benefit cost

Service cost	$	4	$	4		$	5
Interest cost		14		17			17
Expected return on plan assets		-		(3	)		(5	)
Amortization of net loss		22		15			20

Net periodic benefit cost	$	40	$	33		$	37

	December 31,
	201 7			2016

Net amounts recognized in the consolidated balance sheets as of December 31, 201 7 and 2016 consist of:
Current liabilities	$	-		$	-
Noncurrent liabilities		883			803

Net amounts recognized in the consolidated balance sheets	$	883		$	803

Net amounts recognized in accumulated other comprehensive income as of December 31, 201 7 and 2016 consist of:
Net actuarial loss	$	(409	)	$	(454	)

Net amounts recognized in accumulated other comprehensive loss	$	(409	)	$	(454	)

The estimated amount that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in

is as follows:

	201 8

Net actuarial loss and other	$	20

Benefit payments are expected to be paid as follows:

Year ending December 31,

2018	$	9
2019		9
2020		10
2021		31
2022		27
2023-2027		112

	$	198

The Company had

pension plan assets at

December 31,

of the greater of the PBO or the market value of the plan assets. If amortization is required, the minimum amortization amount is that excess divided by the average remaining service period of the active employees expected to receive benefits under the plan.

Actuarial gains were recognized in other comprehensive income (loss) in the amount of

$24

for the year ended

December 31, 2017.

Actuarial losses were recognized in other comprehensive income (loss) in the amount of

$117

for the year ended

December 31, 2016.

Actuarial gains were recognized in other comprehensive income (loss) in the amount of

$63

for the year ended

December 31, 2015.

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Note 11 - Financial Income, Net

Other Nonoperating Income and Expense [Text Block]

The components of financial income, net were as follows:

FINANCIAL INCOME, NET

	Year ended December 31,
	201 7		2016		2015

Foreign exchange gains	$	156	$	14	$	19
Interest income from marketable securities and deposits, net of amortization of premium on marketable securities		1,719		1,534		1,391
Realized gains on marketable securities		7		16		3

Financial income		1,882		1,564		1,413

Realized losses on marketable securities		57		33		27
Foreign exchange losses		48		132		58
Interest expenses		14		16		12
Other		94		156		141

Financial expense		213		337		238

Financial income, net	$	1,669	$	1,227	$	1,175

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Note 12 - Stockholders' Equity

Stockholders' Equity Note Disclosure [Text Block]

’s Board of Directors has the authority, without any further vote or action by the stockholders, to provide for the issuance of up to

5,000,000

shares of preferred stock in

or more series with such designations, rights, preferences, and limitations as the Board of Directors

determine, including the consideration received, the number of shares comprising each series, dividend rates, redemption provisions, liquidation preferences, sinking fund provisions, conversion rights and voting rights.

shares of preferred stock are currently outstanding.

Common stock:

Currently,

50,000,000

shares of common stock are authorized. Holders of common stock are entitled to

vote per share on all matters to be voted upon by the Company

’s stockholders. Subject to the rights of holders of preferred stock, if any, in the event of liquidation, dissolution or winding up, holders of common stock are entitled to share ratably in all of the Company’s assets. The Company’s Board of Directors

declare a dividend out of funds legally available therefore and, subject to the rights of holders of preferred stock, if any, the holders of common stock are entitled to receive ratably any such dividends.

Holders of common stock have

preemptive rights or other subscription rights to convert their shares into any other securities. There are

redemption or sinking fund provisions applicable to common stock.

Dividend policy:

, the Company had an accumulated deficit of

$104,842.

The Company has never paid cash dividends on the common stock and presently intends to follow a policy of retaining earnings for reinvestment in its business.

Share repurchase program:

’s board of directors has previously approved a number of share repurchase plans, including those in accordance with Rule

10b5

of the Securities Exchange Act of

1934,

for the repurchase of our common stock. In

August 2017,

the Company’s board authorized a

$10

million dollar buyback program, inclusive of the shares authorized for repurchase from previously authorized share repurchase plans.

the Company repurchased approximately

shares, respectively, of common stock at an average purchase price of

per share, respectively, for an aggregate purchase price of

, respectively. As of

shares of the Company’s common stock remained authorized for repurchase under the Company’s board-authorized share repurchase program.

shares, respectively, of common stock, out of treasury stock, to employees who exercised their equity awards and had vested RSUs under the Company’s equity incentive plans or purchased shares from the Company’s

1993

Employee Stock Purchase Plan (“ESPP”).

Stock purchase plan and equity incentive plans:

The Company has various equity incentive plans under which employees, officers, non-employee directors of the Company and its subsidiaries and others, including consultants,

be granted rights to purchase the Company

’s common stock. The plans authorize the administrator, except for the grant of RSUs, to grant equity incentive awards at an exercise price of

of the fair market value of the common stock on the date the award is granted. It is the Company’s policy to grant stock options and SARs at an exercise price that equals the fair market value

less than

100%

Equity awards granted under all stock incentive plans that are cancelled or forfeited before expiration become available for future grant.

Until the end of

2012,

the Company granted to employees and executive officers of the Company primarily share appreciation rights (“SARs”), capped with a ceiling, under the various equity incentive plans. The SAR unit confers the holder the right to stock appreciation over a preset price of the Company

’s common stock during a specified period of time. When the unit is exercised, the appreciation amount is paid through the issuance of shares of the Company’s common stock. The ceiling limits the maximum income for each SAR unit and the maximum number of shares to be issued. SARs are considered an equity instrument as it is a net share settled award capped with a ceiling.

Starting in

2013,

the Company granted to employees and executive officers of the Company primarily

restricted stock units (“RSUs”) under the various equity incentive plans. An RSU award is an agreement to issue shares of our common stock at the time the award is vested. RSUs granted to employees and executive officers generally

vest over a

year period from the grant date with

of the RSUs granted vesting on the

anniversary of the grant date and

6.25%

vesting each quarter thereafter.

A summary of the various plans is as follows:

1993

Director Stock Option Plan (Directors Plan)

Upon the closing of the Company

’s initial public offering, the Company adopted the Directors Plan. Under the Directors Plan, which expired in

January 2014,

the Company was authorized to issue nonqualified stock options to the Company’s outside non-employee directors to purchase up to

1,980,875

shares of common stock at an exercise price equal to the fair market value of the common stock on the date of grant. The Directors Plan, as amended, provided that each person who became an outside, non-employee director of the Board of Directors was automatically granted an option to purchase

30,000

shares of common stock (the “First Option”). Thereafter, each outside director was automatically granted an option to purchase

shares of common stock (a “Subsequent Option”) on

January 1

of each year if, on such date, he had served on the Board of Directors for at least

months. In addition, an option to purchase an additional

shares of common stock (a “Committee Option”) was granted on

January 1

of each year to each outside director for each committee of the Board on which had served as a chairperson for at least

Options granted under the Directors Plan generally had a term of

months.

years. One-

of the shares were exercisable after the

The Directors Plan expired in

be granted thereunder. As of

shares of common stock had been granted under the plan and stock options to acquire

260,000

shares remained outstanding out of grants made prior to its expiration.

Non-Officer Employee Stock Option Plan (

be granted non-qualified stock options for the purchase of common stock. The

Plan)

1998,

the Company adopted the

Plan currently provides for the purchase of up to

5,062,881

shares of common stock. As of

shares of common stock remained available for grant under the

14,681

The exercise price of options under the

Plan.

Plan shall

be less than the fair market value of common stock for nonqualified stock options, as determined by the Company

’s Board of Directors or a committee appointed by the Company’s Board of Directors.

Options under the

Plan are generally exercisable over a

-month period beginning

months after issuance, or as determined by the Company

’s Board of Directors or a committee appointed by the Company’s Board of Directors. Options under the

years after the date of grant.

Plan expire up to

seven

Israeli Share Incentive Plan (

Plan)

2003,

the Company adopted the

Plan, which complied with the Israeli tax reforms. The

Plan terminated in

upon approval of the Company

’s

Equity Incentive Plan (the

shares of common stock had been granted under the plan and stock option and SARs to acquire

56,186

shares of common stock remained outstanding under the plan. As the

be granted thereunder.

Equity awards under the

Plan were generally exercisable over a

-month period beginning

months after issuance, or as determined by the Company

’s Board of Directors or a committee appointed by the Company’s Board of Directors. Equity awards under the

years after the date of grant.

Plan expired up to

seven

Equity Incentive Plan (

Plan)

2012,

the Company adopted the

Plan, which also complies with the Israeli tax reforms. Under the

Plan, employees, directors and consultants

be granted incentive or non-qualified stock options, SARs, RSUs and other awards under the plan. The exercise price for stock options under the

than the fair market value of common stock at the time of grant, unless otherwise determined by the Company’s Board of Directors or a committee appointed by the Company’s Board of Directors. The

Plan currently provides for the purchase of up to

3,100,000

shares of common stock. As of

shares of common stock remained available for grant under the

682,059

Stock options, SARs and RSUs awarded under the

Plan.

Plan to employees and executive officers are generally exercisable over a

-month period beginning

months after issuance, or as determined by the Company

’s Board of Directors or a committee appointed by the Company’s Board of Directors Equity awards under the

years after the date of grant.

Plan expire up to

seven

A director subplan was established under the

Plan to provide for the grant of equity awards to the Company

’s non-employee directors. The director subplan is designed to work automatically; however, to the extent administration is necessary, it would be provided by the Company’s board of directors. Starting in

2014,

non-employee directors are granted automatically under the director subplan, on

restricted stock units, all of which would fully vest at the end of

year from the grant date. If a director is appointed for a term commencing during a calendar year, the director would be granted stock options and restricted stock units on the date of appointment and the number of stock options and restricted stock units granted would be based upon the number of days remaining in the in the calendar year following the date such person was nominated as a director.

1993

Employee Stock Purchase Plan (ESPP)

Upon the closing of the Company

’s initial public offering, the Company adopted the ESPP. The Company has reserved an aggregate of

4,800,000

shares of common stock for issuance under the ESPP. The ESPP provides that substantially all employees of the Company

purchase Company common stock at

85%

of its fair market value on specified dates via payroll deductions. There were approximately

shares of common stock issued at a weighted average purchase price of

per share under the ESPP in

shares of common stock were reserved under the ESPP.

Stock Reserved for Future Issuance

The following table summarizes the number of shares available for future issuance at

(after giving effect to the above increases in the equity incentive plans):

2017

ESPP			715,000
Equity awards			697,000
Undesignated preferred stock			5,000,000

			6,412,000

The following is a summary of activities relating to the Company

’s stock options, SARs and RSUs granted among the Company’s various plans:

	Year ended December 31,
	2017							201 6							2015
	Amount of options/ SARs/RSUs			Weighted average exercise price		Aggregate intrinsic value (4)		Amount of options/ SARs/RSUs			Weighted average exercise price		Aggregate intrinsic value (4)		Amount of options/ SARs/RSUs			Weighted average exercise price		Aggregate intrinsic value (4)
	in thousands							in thousands							in thousands

Options outstanding at beginning of year		2,152		$	5.12	$	-		3,740		$	6.22	$	-		4,644		$	6.52	$	-
Changes during the year:
Options granted		78		$	11.93	$	-		64		$	9.44	$	-		179		$	11.2	$	-
SAR s granted		190		$	10.40	$	-
RSUs granted		476		$	-	$	-		573		$	-	$	-		405		$	-	$	-
Exercised (4)		(818	)	$	3.77	$	6,699		(1,905	)	$	5.55	$	10,344		(1,403	)	$	5.68	$	7,302

Forfeited and cancelled		(86	)	$	9.85	$	-		(320	)	$	7.16	$	-		(85	)	$	12.21	$	-

Options/SARs/RSUs outstanding at end of year (1,2,4)		1,992		$	5.02	$	14,931		2,152		$	5.12	$	17,347		3,740		$	6.22	$	13,364

Options/SARs/RSUs exercisable at end of year (1,3,4)		813		$	8.20	$	3,499		1,132		$	8.27	$	5,703		2,552		$	7.47	$	6,031

(

)

SAR grants made prior to

January 1, 2009

are convertible for a maximum number of shares of the Company’s common stock equal to

of the SAR units subject to the grant. SAR grants made on or after

January 1, 2009

and before

January 1, 2010

are convertible for a maximum number of shares of the Company’s common stock equal to

75%

of the SAR units subject to the grant. SAR grants made on or after

January 1, 2010

are convertible for a maximum number of shares of the Company’s common stock equal to

66.67%

of the SAR units subject to the grant. SAR grants made on or after

January 1, 2012

are convertible for a maximum number of shares of the Company’s common stock equal to

of the SAR units subject to the grant.

(

)

Due to the ceiling imposed on the SAR grants, the outstanding amount above can be exercised for a maximum of

1,871

thousand shares of the Company’s common stock as of

Due to the ceiling imposed on the SAR grants, the exercisable amount above can be exercised for a maximum of

785

thousand shares of the Company’s common stock as of

Calculation of aggregate intrinsic value for options, RSUs and SARs outstanding and exercisable is based on the share price of the Company’s common stock as of

per share, respectively. The intrinsic value for options and SARs exercised and RSUs vested during those years represents the difference between the fair market value of the Company’s common stock on the date of exercise and vesting for RSUs and the exercise price of each option, RSU or SAR, as applicable.

The stock options and SARs outstanding as of

December 31,

have been separated into ranges of exercise price as follows:

Range of exercise price			Outstanding		Remaining contractual life (years) ( 1 )		Weighted average exercise price		Exercisable		Remaining contractual life (years)		Weighted average exercise price
$			thousands				$		thousands				$

0 (RSUs)				872		-		-		-		-		-
5.21	-	7.26		231		3.03		5.89		231		3.03		5.89
7.49	-	9.71		458		3.68		8.50		451		3.68		8.50
10.15	-	15.79		431		5.95		11.01		131		5.03		11.22


				1,992		4.42		5.02		813		3.72		8.20

(

)

Calculation of weighted average remaining contractual term does

include the RSUs that were granted, which have an indefinite contractual term.

the outstanding number of SARs was

270,000

and based on the share price of the Company’s common stock as of

per share), all of those SARs were in the money as of

The weighted average estimated fair value of employee RSUs granted during

2017.

per share, respectively, (using the weighted average pre vest cancellation rate of

respectively, on an annual basis).

The weighted-average estimated fair value of employee stock options

and SARs granted during the years ended

,respectively, per stock option and SAR. The Company selected the binomial model as the most appropriate model for determining the fair value for its stock options awards and SARs. The fair value of options and SARs granted in

is estimated at the date of grant using the following weighted average assumptions. (annualized percentages):

	Year ended December 31,
	2017			2016			2015

Volatility		37.47	%		46.02	%		49.04	%
Risk-free interest rate		2.23	%		2.29	%		1.96	%
Dividend yield		0	%		0	%		0	%
Pre-vest cancellation rate *)		4.06	%		1.87	%		3.95	%
Post-vest cancellation rate **)		3.45	%		3.44	%		3.86	%
Suboptimal exercise factor ***)		1.31			1.69			1.46
Expected life (in years)		4.22			5.50			4.43

The pre-vest cancellation rate was calculated on an annual basis and is presented here on an annual basis.

**)

The post-vest cancellation rate was calculated on a monthly basis and is presented here on an annual basis.

***)

The ratio of the stock price to strike price at the time of exercise of the option.

The computation of volatility uses a combination of historical volatility and implied volatility derived from the Company

’s exchange traded options with similar characteristics.

The risk-free interest rate assumption is based on U.S. treasury bill interest rates appropriate for the term of the Company

’s employee equity-based awards.

The dividend yield assumption is based on the Company

’s historical and expectation of future dividend payouts and

be subject to substantial change in the future.

’s model. The binomial model assumes that employees’ exercise behavior is a function of the award’s remaining contractual life and the extent to which the award is in-the-money (i.e., the average stock price during the period is above the strike price of the award). The binomial model estimates the probability of exercise as a function of these

variables based on the history of exercises and cancellations on past award grants made by the Company.

differ from those estimates.

Pre and post-vesting forfeitures were estimated based on historical experience.

’s ESPP was estimated on each enrollment date using the risk free interest rate and the share price for those dates. In addition, the expected life was assumed to be between

months based on the contractual life of the plan, and the expected volatility was assumed to be in a range of

’s aggregate equity compensation expenses for the years ended

A summary of the status of the Company

’s non-vested stock options, SARs and RSUs as of

and changes during the year ended

equity-based compensation arrangements to purchase a maximum of approximately

is presented below:

Non-vested	Units			Weighted average grant date fair value
	(In thousands)			$

Non-vested at December 31, 2016		1,019			7.69

Granted		744			7.22
Vested		(539	)		7.46
Forfeited		(46	)		7.69

Non-vested at December 31, 2017		1,179			7.50

1,721,000

shares of common stock were vested and expected to vest (the calculation takes into consideration the average forfeiture rate).

there was a total unrecognized compensation expense of

XML 37 R22.htm IDEA: XBRL DOCUMENT

Note 13 - Commitments and Contingencies

Commitments and Contingencies Disclosure [Text Block]

COMMITMENTS AND CONTINGENCIES

the Company will move to new leased facilities, which are also located in Herzliya Pituach, Israel. Those new facilities will be leased through

The Company leases its facilities in the U.S. under a contract which terminates in

2028.

January 2018.

The Company’s subsidiaries in Scotland, Japan, Germany, China, Hong-Kong, India and South Korea have lease agreements for their facilities that terminate in

respectively. The Company has operating lease agreements for its motor vehicles which terminate in

the Company is required to make the following minimum lease payments under non-cancelable operating leases for motor vehicles and facilities:

Year ended December 31,

2018	$	2,961
2019		1,524
2020		1,298
2021- and thereafter		9,185

	$	14,968

Facilities rental expenses amounted to

The Company participated in programs (most of which are royalty bearing grants) sponsored by the Israeli government for the support of research and development activities. Through

the Company had obtained grants from the Israeli Inovation Authority (the “IIA”) (previously the Office of the Chief Scientist) for certain of the Company’s research and development projects. The Company is obligated to pay royalties to the IIA, amounting to

of the sales of the products and other related revenues (based on the dollar) generated from such projects, up to

100%

of the grants received. The royalty payment obligations also bear interest at the LIBOR rate. The obligation to pay these royalties is contingent on actual sales of the applicable products and in the absence of such sales,

the aggregate contingent liability to the IIA amounted to

$9,388.

The Israeli Research and Development Law provides that know-how developed under an approved research and development program

parties without the approval of the IIA. Such approval is

required for the sale or export of any products resulting from such research or development. The IIA, under special circumstances,

be, which portion will

exceed

times the amount of the grants received plus interest (or

The Company is involved in certain claims arising in the normal course of business. However, the Company believes that the ultimate resolution of these matters will

Litigation

have a material adverse effect on its financial position, results of operations, or cash flows.

From time to time, the Company

become involved in litigation relating to claims arising in the ordinary course of business activities. Also, as is typical in the semiconductor industry, the Company has been and, from time to time

be, notified of claims that it

be infringing on patents or intellectual property rights owned by

XML 38 R23.htm IDEA: XBRL DOCUMENT

parties.

Note 14 - Taxes on Income

Income Tax Disclosure [Text Block]

the U.S. President signed into law federal tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). Broadly, the implications of the Tax Act most relevant to the company include: a) a reduction in the U.S. federal corporate income tax rate from

TAXES ON INCOME

December 22, 2017,

35%

21%,

and b) adopting elements of a territorial tax system. To transition into the territorial tax system, the Tax Act includes a

on cumulative retained earnings and profits of U.S.-owned (directly or indirectly) foreign subsidiaries. An initial review of the Tax Act has been undertaken by the Company and based on such review, the Company is

-time tax of

15.5%

subject to any transitional tax because the Company does

currently have any positive cumulative earnings and profits in its foreign subsidiaries. The Tax Act could be subject to potential amendments and technical corrections. Given the unpredictability of these and other tax laws and related regulations, and their potential interdependency, it is difficult to currently assess the overall effect of such tax changes on the impact on the Company’s financial statements.

The provision for income taxes is as follows:

	Year ended December 31,
	2017			2016		2015
Domestic taxes

Federal taxes:
Current	$	-		$	-	$	-

State taxes:
Current		2			3		2

Foreign taxes:
Current	$	368		$	264	$	1,081
Deferred		(462	)		327		(756	)

		(94	)		591		325

Taxes on income (tax benefit)	$	(92	)	$	594	$	327

Income (loss) before taxes is comprised as follows:

	Year ended December 31,
	2017			2016			2015

Domestic	$	(4,128	)	$	(2,188	)	$	(909	)
Foreign		1,033			7,595			2,798

	$	(3,095	)	$	5,407		$	1,889

A reconciliation between the Company’s effective tax rate assuming all income is taxed at statutory tax rate applicable to the income of the Company and the U.S. statutory rate is as follows:

	Year ended December 31,
	2017			2016			2015


Income (loss) before taxes on income	$	(3,095	)	$	5,407		$	1,889

Theoretical tax expenses ( tax benefit) at U.S. statutory tax rate (35%)	$	(1,083	)	$	1,892		$	661
State taxes, net of federal benefit		2			3			2
Foreign income taxed at rates other than the U.S. rate (including deferred taxes that were not provided, valuation allowance and current adjustment and interest on uncertain tax position liability)		(808	)		(2,580	)		(2,209	)
Nondeductible equity-based compensation expenses		816			695			1,782
Valuation allowance in U.S.		984			583			91
Other		(2	)		1			-

	$	(92	)	$	594		$	327

	December 31,
	2017			2016

Reserves and accruals	$	1,202		$	1,322
Equity-based compensation		922			846
Intangible assets		320			688
Carryforward tax losses		4,368			5,770
Other		229			-

Total deferred tax assets		7,041			8,626
Valuation allowance		(5,998	)		(7,708	)

Total deferred tax assets	$	1,043		$	918



Deferred tax liabilities, net
Acquired intangible assets		565			987
Acquired carryforward tax losses		(141	)		(200	)

Total deferred tax liabilities, net	$	424		$	787

Management believes that part of the deferred tax assets will

be realized based on current levels of future taxable income and potentially refundable taxes. Accordingly, a valuation allowance in the amount of

the Company had cash and cash equivalents, marketable securities and time deposits of approximately

$129.2

million. Out of total cash, cash equivalents and marketable securities of

$129.2

million,

$118.1

million was held by foreign subsidiaries of the Company. The Company intends to permanently reinvest earnings of its foreign operations and its current operating plans do

demonstrate a need to repatriate foreign earnings to fund the Company’s U.S. operations. However, if these funds were needed for the Company’s operations in the United States, the Company would be required to accrue and pay taxes in several countries to repatriate these funds. The determination of the amount of additional taxes related to the repatriation of these earnings is

practicable, as it

vary based on various factors such as the location of the cash and the effect of regulation in the various jurisdictions from which the cash would be repatriated.

Uncertain tax positions:

A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:

	2017			2016

Gross unrecognized tax benefits at January 1	$	1,023		$	1,711
Increases (decreases) in tax positions for previous years (1)		(268	)		(918	)
Increases in tax positions for current year		306			396
Increase in tax positions for previous years		131			-
Change in interest and linkage related to tax positions		81			(166	)

Gross unrecognized tax benefits at December 31	$	1,273		$	1,023

is mainly the result of finalization

of an examination that was conducted by the German tax authorities of the Company’s German tax returns for

2007

–

2009

and the tax payment that was made following such examination.

The total amount of net unrecognized tax benefits that, if recognized, would affect the effective tax rate was

respectively. The Company accrues interest and penalties relating to unrecognized tax benefits in its provision for income taxes. At

the Company had accrued interest and penalties related to unrecognized tax benefits of

’s U.S. federal income tax returns for

2014.

The statute of limitations relating to the Company’s consolidated Federal income tax return is closed for all tax years up to and including

2014.

The last examination conducted by the Israeli tax authorities was with respect to the Company

’s Israeli income tax returns for the years between

2006

With respect to DSP Israel, the tax returns up to and including

2012.

are considered to be final and

subject to any audits due to the expiration of the statute of limitations.

With respect to the Company

’s Swiss subsidiary,

which is undergoing a liquidation,

the statute of limitations related to its tax returns is opened for all tax years since its inception .

A change in the amount of unrecognized tax benefit is reasonably possible in the next

months due to the examination by the German tax authorities of the Company

’s German tax returns for

2010–2013.

The Company currently cannot provide an estimate of the range of change in the amount of the unrecognized tax benefits due to the ongoing status of the examination.

Tax benefits under the Law for the Encouragement of Capital Investments,

1959

(“Investment Law”).

The Investment Law provides certain Israeli tax benefits for eligible capital investments in a production facility, as discussed in greater detail below.

April 1, 2005,

an amendment to the Investment Law came into effect (the “Amendment”) and significantly changed the provisions of the Investment Law. Generally, DSP Israel

’s investment programs that obtained approval for Approved Enterprise status prior to enactment of the Amendment will continue to be subject to the old provisions of the Investment Law.

The Amendment enacted major changes in the manner in which tax benefits are awarded under the Investment Law so that companies are

longer required to get the Investment Center

’s prior approval to qualify for tax benefits. An enterprise that receives tax benefits without the initial approval from the Investment Center is called a “Beneficiary Enterprise,” rather than the previous terminology of “Approved Enterprise” used under the Investment Law. The period of tax benefits for a new Beneficiary Enterprise commences in the “Year of Commencement,” which is the later of: (

) the year in which taxable income was

generated by the company, or (

) the year of election.

In addition, under the Amendment, tax benefits are available for production facilities, which generally are required to derive more than

of their business income from export. Furthermore, in order to receive the tax benefits under the Amendment, a company is required to make an investment in the Benefited Enterprise exceeding a certain percentage or a minimum amount specified in the Investment Law.

DSP Israel chose the “alternative benefits” track for all of its investment programs. Accordingly, DSP Israel

’s income from an “Approved Enterprise” and “Beneficiary Enterprise” is tax-exempt for a period of

years and is subject to a reduced corporate tax rate of

(based on the percentage of foreign ownership) for an additional period of

’s first, second, third, fourth,

fifth

investment programs, which were completed and commenced operations in

sixth

respectively, were tax exempt for a period of between

year they had taxable income and were entitled to a reduced corporate tax rate of

(based on the percentage of foreign ownership) for an additional period of between

all those investment programs were

longer entitled to a reduced corporate tax rate.

investment programs have been in operation since

2006

respectively, and entitles DSP Israel to a corporate tax exemption for a period of

2009,

years and a reduced corporate tax rate of

(based on the percentage of foreign ownership) for an additional period of

eight

years from the

year it had taxable income. As of

longer entitled to a reduced corporate tax rate.

the

seventh

investment program was

Since DSP Israel is operating under more than

approval, its effective tax rate is the result of a weighted combination of the various applicable tax rates and tax exemptions and the computation is made for income derived from each investment program on the basis and formulas specified in the Investment Law and the approvals.

During

2006,

DSP Israel received an approval for the erosion of tax basis in respect to its

fifth

investment programs. During

sixth

2008,

DSP Israel received an approval for the erosion of tax basis with respect to its second,

investment programs. Those approvals resulted in increasing the taxable income attributable to the later investment programs, which are currently in operation and will be taxed at a lower tax rate than the previous investment programs, which in turn will decrease the overall effective tax rate.

fourth

’s investment programs that generate taxable income are currently subject to an average tax rate of up to approximately

based on a variety of factors, including percentage of foreign ownership and approvals for the erosion of the tax basis of our investment programs. The Company’s average tax rate for its investment programs

change in the future due to circumstances outside of its control and therefore, the Company cannot provide any assurances that its average tax rate for its investment programs will continue at an approximate rate of

Amendment to the Law for the Encouragement of Capital Investments,

in the future.

1959

(Amendment

December 2016,

the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the

which includes Amendment

to the Law for the Encouragement of Capital Investments (the

“2016

Amendment") was published. According to the

Amendment, a preferred enterprise located in development area A will be subject to a tax rate of

and thereafter. DSP Israel is

located in development area A and the tax rate applicable to preferred enterprises like DSP Israel located in other areas remains at

Amendment also prescribes special tax tracks for technological enterprises, The new tax tracks under the

Amendment are as follows:

Technological preferred enterprise - an enterprise for which total consolidated revenues of its parent company and all subsidiaries are less than NIS

billion (

$2.6

billion). A technological preferred enterprise, as defined in the Law, which is located in the center of Israel will be subject to tax at a rate of

12%

on profits deriving from intellectual property. DSP Israel is located in the center of Israel.

Any dividends distributed to "foreign companies" as defined in the Law, deriving from income from the technological enterprises, will be subject to a tax rate of

4%.

The Company evaluated the effect of the adoption of the

Amendment on its financial statements and determined to

apply for the

Amendment. Rather, the Company has continued to comply with the Law as it was in effect prior to enactment of the

Amendment until the earlier of such time that compliance with the Law prior to enactment of the

’s best interests or until the expiration of its current investment programs. The Company

Amendment is

longer in the Company

change its position in the future.

The Company is required to comply with the

Amendment subsequent to the expiration of the Company

’s current investment programs and for any new qualified investment program after a transitional period. Once the Company is required to comply with the

Amendment, its average tax rate

DSP Israel believed that it met all the conditions required under the plans, which include, among other things, an obligation to invest certain amounts in property and equipment and an obligation to finance a percentage of investments by share capital.

Should DSP Israel fail to meet such conditions in the future, it could be subject to corporate tax in Israel at the standard tax rate (

24%

for

2017

) plus a consumer price index linkage adjustment and interest and could be required to refund tax benefits already received.

was derived from tax exempt profits earned by DSP Israel

’s “Approved Enterprises” and “Beneficiary Enterprises.” The Company has determined that such tax-exempt income will

be distributed as dividends and intends to reinvest the amount of its tax exempt income earned by DSP Israel. Accordingly,

provision for deferred income taxes has been provided on income attributable to DSP Israel’s “Approved Enterprises” and “Beneficiary Enterprises” as such income is essentially permanently reinvested.

If DSP Israel

’s retained tax-exempt income is distributed, the income would be taxed at the applicable corporate tax rate (currently

) as if it had

elected the alternative tax benefits under the Investment Law and an income tax liability of approximately

$4,563

would have been incurred as of

December 31, 2017.

DSP Israel

’s income from sources other than the “Approved Enterprises” and “Beneficiary Enterprises” during the benefit period will be subject to tax at the effective standard corporate tax rate in Israel (

24%

for

2017

The Law for Encouragement of Industry (Taxation),

1969:

DSP Israel has the status of an “industrial company”, as defined by this

law. According to this status and by virtue of regulations published thereunder, DSP Israel is entitled to claim a deduction of accelerated depreciation on equipment used in industrial activities, as determined in the regulations issued under the Inflationary Law. The Company is also entitled to amortize a patent or rights to use a patent or intellectual property that are used in the enterprise's development or advancement, to deduct issuance expenses for shares listed for trading, and to file consolidated financial statements under certain conditions.

Israeli tax rates:

The rate of the Israeli corporate tax is as follows:

applies to capital gains arising after

January

2003.

December 2016,

the Israeli Parliament approved the

Amendment which reduced the corporate income tax rate to

The Company has accumulated losses for federal and state tax purposes as of

be carried forward and offset against future taxable income for a period of

thirteen

twenty

years from its creation. DSP Israel has accumulated losses for tax purposes as of

(including research and development expense carry forwards), which

be carried forward and offset against future taxable income for an indefinite period.

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Note 15 - Basic and Diluted Loss Per Share

Earnings Per Share [Text Block]

- BASIC AND DILUTED LOSS PER SHARE

The following table sets forth the computation of basic and diluted net loss per share:

	Year ended December 31,
	201 7			201 6		201 5
Numerator:

Net income (loss)	$	(3,003	)	$	4,813	$	1,562

Denominator:

Weighted average number of shares of common stock outstanding during the year used to compute basic net earnings (loss) per share (in thousands)		22,229			21,800		21,924
Incremental shares attributable to exercise of outstanding options, SARs and RSUs (assuming proceeds would be used to purchase treasury stock) (in thousands)		-			1,087		1,416

Weighted average number of shares of common stock used to compute diluted net earnings (loss) per share (in thousands)		22,229			22,887		23,340

Basic net earnings (loss) per share	$	(0.14	)	$	0.22	$	0.07

Diluted net earnings (loss) per share	$	(0.14	)	$	0.21	$	0.07

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Note 16 - Segment Information

Segment Reporting Disclosure [Text Block]

The Company operates under

16:

SEGMENT INFORMATION

Description of segments:

The Company's segment information has been prepared in accordance with ASC

reportable segments.

280,

"Segment Reporting." Operating segments are defined as components of an enterprise engaging in business activities about which separate financial information is available that is evaluated regularly by the Company's chief operating decision-maker ("CODM") in deciding how to allocate resources and assess performance. The Company's CODM is its Chief Executive Officer, who evaluates the Company's performance and allocates resources based on segment revenues and operating income.

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

limited to, customer base, homogeneity of products and technology.

A description of the types of products provided by

each business segment is as follows:

which integrate the DECT/CAT-iq functionality, integrated circuits addressing home automation applications, as well as fixed-mobile convergence solutions. In this segment, (i) revenues from cordless telephony products exceeded

of the Company’s total consolidated revenues and amounted to

respectively, and (ii) revenues from home gateway products amounted to

9%,

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

of its total revenues for

revenues derived from other products in the office segment exceeded

of the Company’s total consolidated revenues for the years

SmartVoice (formerly called “Mobile”) -

Products for the SmartVoice market that provides voice activation and recognition, voice enhancement, always-on and far-end noise elimination targeted for mobile phone, mobile headsets and other devices that incorporate the Company’s noise suppression and voice quality enhancement HDClear technology. Revenues from the Company’s mobile products represented

4%,

12%,

of the Company’s total consolidated revenues for the years

revenues derived from other products in the SmartVoice segment exceeded

of the Company’s total consolidated revenues for the years

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

allocate to its business segments certain operating expenses, which it manages separately at the corporate level. These unallocated costs include primarily amortization of purchased intangible assets, equity-based compensation expenses, and certain corporate governance costs.

The Company does

allocate any assets to segments and, therefore,

amount of assets is reported to management and disclosed in the financial information for segments. Selected operating results information for each business segment was as follows for the year ended

	Year ended December 31
	Revenues						Income (loss) from operations
	201 7		2016		2015		2017			2016			2015
Home	$	85,021	$	95,388	$	121,714	$	16,256		$	17,715		$	24,815
Office	$	34,879	$	26,590	$	22,216	$	9,105		$	(2,961	)	$	(4,861	)
SmartVoice	$	4,853	$	15,891	$	341	$	(20,798	)	$	(5,190	)	$	(10,308	)
Total	$	124,753	$	137,869	$	144,271	$	4,563		$	9,564		$	9,646

The reconciliation of segment operating results information to the Company

’s consolidated financial information was as follows:

	Year ended December 31,
	201 7			2016			2015
Income from operations	$	4,563		$	9,564		$	9,646
Unallocated corporate, general and administrative expenses*		(1,766	)		(1,388	)		(2,156	)
Other income		-			2,549			-
Equity-based compensation expenses		(5,861	)		(5,088	)		(5,092	)
Intangible assets amortization expenses		(1,700	)		(1,457	)		(1,284	)
Write –off of expired option related to investment in other company		-			-			(400	)
Financial income, net		1,669			1,227			1,175
Total consolidated income (loss) before taxes	$	(3,095	)	$	5,407		$	1,889

*Includes mainly legal, accounting, board of directors and investors relation expenses.

Major customers and geographic information The following is a summary of operations within geographic areas based on customer locations:

	Year ended December 31,
	201 7		2016		2015
Revenue distribution

Hong-Kong	$	46,119	$	56,768	$	72,608
Japan		16,567		18,440		26,114
Europe		9,882		9,703		8,464
United States		4,927		4,696		3,944
China		16,096		10,244		10,359
Taiwan		22,442		16,428		16,902
South Korea		4,190		17,503		1,913
Other		4,530		4,087		3,967

	$	124,753	$	137,869	$	144,271

For a summary of revenues from major customers, please see Note

The following is a summary of long-lived assets within geographic areas based on the assets

’ locations:

	December 31,
	2017		2016
Long-lived assets

Europe	$	144	$	216
Israel		2,017		2,652
Other		1,023		1,262

	$	3,184	$	4,130

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Schedule II - Valuation and Qualifying Accounts

Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

Schedule II

DSP GROUP, INC.

VALUATION AND QUALIFYING ACCOUNTS

Year ended December 31, 2015:

Year ended December 31, 2016:

Year ended December 31, 2017:

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Significant Accounting Policies (Policies)

Use of Estimates, Policy [Policy Text Block]

Accounting Policies [Abstract]

Use of estimates:

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company

Basis of Accounting, Policy [Policy Text Block]

Financial statements in U.S. dollars:

Most of the Company

Monetary accounts maintained in currencies other than the

U.S. dollar are remeasured into dollars in accordance with ASC

The financial statements of the Company

830

30,

Accumulated other comprehensive loss related to

foreign currency translation adjustments, net amounted to

Consolidation, Policy [Policy Text Block]

Principles of consolidation:

The consolidated financial statements include the accounts of the Company. Intercompany transactions and balances have been eliminated in consolidation.

Cash and Cash Equivalents, Unrestricted Cash and Cash Equivalents, Policy [Policy Text Block]

Cash equivalents:

Cash equivalents are short-term highly liquid investments, which are readily convertible to cash with

original

maturity of

months or less from the date of acquisition.

Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block]

Restricted deposits:

Restricted deposits include deposits which are used as security for lease agreements.

Deposit Contracts, Policy [Policy Text Block]

Short-term deposits:

Bank deposits with original maturities of more than

months and less than

year are presented at cost, including accrued interest.

Marketable Securities, Available-for-sale Securities, Policy [Policy Text Block]

Marketable securities:

The Company accounts for investments in debt securities in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”)

“Investments in Debt and Equity Securities.” Management determines the appropriate classification of the Company

320

10,

’s investments in debt securities at the time of purchase and reevaluates such determinations at each balance sheet date.

The Company classified all of its investments in marketable securities as available for sale.

Available-for-sale securities are carried at fair value, with the unrealized gains and losses, reported in

’s intent to sell, or whether it is more likely than

it will be forced, to sell the security.

record an-other-than-temporary impairment loss (see Note

Fair Value Measurement, Policy [Policy Text Block]

Fair value of financial instruments:

Cash and cash equivalents, restricted deposits, short-term deposits, trade receivables, trade payables and accrued liabilities approximate fair value due to short

-term maturities of these instruments. Marketable securities and derivative instruments are carried at fair value. See Note

for more information.

-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in valuation methodologies to measure fair value:

Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Include other inputs that are directly or indirectly observable in the marketplace.

Unobservable inputs which are supported by little or

market activity.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

Inventory, Policy [Policy Text Block]

Inventories:

Inventories are stated at the lower

of cost and net realizable value. Inventory reserves are provided to cover risks arising from slow-moving items or technological obsolescence.

Cost is determined as follows:

Work in progress and finished products- on the basis of raw materials and manufacturing costs on an average basis.

respectively, is stated net of inventory reserves of

in each year, respectively. If actual demand for the Company’s products deteriorates, or market conditions are less favorable than those projected, additional inventory reserves

Property, Plant and Equipment, Policy [Policy Text Block]

be required.

Property and equipment, net:

	%			Mainly %

Computers and equipment	20	-	33		33
Office furniture and equipment	7	-	15		15
Leasehold improvements	see below

Property and equipment of the Company are reviewed for impairment w

henever events or changes in circumstances indicate that the carrying amount of an asset

impairment losses were identified for property and equipment.

The Company accounts for costs of computer software developed or obtained for internal use in accordance with FASB ASC

“The Internal Use Software.” FASB ASC

40,

requires the capitalization of certain costs incurred in connection with developing or obtaining internal use software. During

the Company capitalized

$0,

respectively, of internal use software cost. Such costs are amortized using the straight-line method over their estimated useful life of

$1,086,

Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]

years.

Goodwill and other intangible assets:

The goodwill and certain other purchased intangible assets have been recorded as a result of the BoneTone acquisition and the acquisition of a private company in Asia.

Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill is

amortized, but rather is subject to an annual impairment test.

-phase process for impairment testing of goodwill. The

phase screens for impairment, while the

phase (if necessary) measures impairment. Goodwill impairment is deemed to exist if the net book value of a reporting unit exceeds its estimated fair value. In such a case, the

phase is then performed, and the Company measures impairment by comparing the carrying amount of the reporting unit

’s goodwill to the implied fair value of that goodwill. An impairment loss is recognized in an amount equal to the excess. ASC

allows an entity to

assess qualitative factors to determine whether it is necessary to perform the

-step quantitative goodwill impairment test. An entity is

required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than

that its fair value is less than its carrying amount.

Alternatively, ASC

permits an entity to bypass the qualitative assessment for any reporting unit and proceed directly to performing the

step of the goodwill impairment test.

The Company performs an annual impairment test on

December 31

of each fiscal year, or more frequently if impairment indicators are present.

’s reporting units are consistent with the reportable segments identified in Note

16.

For the fiscal year ended

the Company performed a quantitative assessment on its goodwill and

Intangible assets that are

considered to have an indefinite useful life are amortized using the straight-line basis over their estimated useful

lives, which range from

years. The carrying amount of these assets is reviewed whenever events or changes in circumstances indicate that the carrying value of an asset

be recoverable. Recoverability of these assets is measured by comparison of the carrying amount of the asset to the future undiscounted cash flows the asset is expected to generate.

If such asset is considered to be impaired, the impairment to be recognized is measured as the difference between the carrying amount of the assets and the fair value of the impaired asset.

During the fiscal year ended

Severance Pay [Policy Text Block]

Severance pay:

DSP Group Ltd., the Company

The deposited funds include profits accumulated up to the balance sheet date. The deposited funds

be withdrawn only upon the fulfillment of the obligation pursuant to Israel

’s Severance Pay Law or labor agreements.

Severance expenses for the years ended

Revenue Recognition, Policy [Policy Text Block]

Revenue recognition:

The Company generates its revenues from sales of products. The Company sells its products through a direct sales force and through a network of distributors.

Product sales are recognized when persuasive evidence of an agreement exists, delivery of the product has occurred, the fee is fixed or determinable, collectability is reasonably assured, and

significant obligations remain.

Persuasive evidence of an arrangement exists -

Delivery has occurred

Separately, the Company has consignment inventory which is held for specific customers at the customers

Price is fixed or determinable

- Pursuant to the customer agreements, the Company does

more than

months from the contract date, are deemed to be fixed and determinable based on the Company’s successful collection history for such arrangements.

Collectability of the related receivable is reasonably assured

With respect to product sales through the Company

Standard Product Warranty, Policy [Policy Text Block]

Warranty:

The Company warrants its products against errors, defects and bugs for generally

year. The Company estimates the costs that

Research and Development Expense, Policy [Policy Text Block]

Research and development costs, net:

Research and development costs, net of grants received, are charged to the consolidated statement of operations as incurred.

Government Grants [Policy Text Block]

Government grants:

Government grants received by the Company

The Company recorded grants in the amount of

respectively. The vast majority of those grants were bearing royalties.

’s Israeli subsidiary is obligated to pay royalties amounting to

become repayable if certain criteria under the grants are

met. The Israeli Research and Development Law provides that know-how developed under an approved research and development program

parties without the approval of the IIA. Such approval is

required for the sale or export of any products resulting from such research or development. The IIA, under special circumstances,

be, which portion will

exceed

times the amount of the grants received plus interest (or

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Equity-based compensation:

, the Company had

equity incentive plans from which the Company

grant future equity awards and

expired equity incentive plans from which

future equity awards

be granted but had outstanding equity awards granted prior to expiration. The Company also had

employee stock purchase plan. See full description in Note

12.

The Company accounts for equity-based compensation in accordance with FASB ASC

“Stock Compensation” (“FASB ASC

718,

paid dividends and has

foreseeable plans to pay dividends.

With

respect to the Company’s employee stock purchase plan, the Company selected the Monte Carlo pricing model as the most appropriate fair value method.

majority of the Company’s equity awards until

were in the form of stock appreciation rights (SARs). Starting in

2013,

a majority of the Company’s equity awards were in the form of restricted stock unit (“RSU”) grants

The fair value of each restricted stock unit (“RSU”) is

based on the market value of the underlying share on the date of grant.

Earnings Per Share, Policy [Policy Text Block]

Basic and diluted income (loss) per share:

The total weighted average number of shares related to the outstanding stock options, SARs and RSUs excluded from the calculation of diluted net income

260,

“Earnings Per Share.”

per share due to their anti-dilutive effect was

Income Tax, Policy [Policy Text Block]

Income taxes:

The Company accounts for income taxes in accordance with

FASB ASC

Deferred tax liabilities and assets are classified as non-current based on the adopting of Accounting Standards Update (“ASU”)

“Balance Sheet Classification of Deferred Taxes.” Prior to the adoption of ASU

U.S. GAAP required an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. ASU

was issued to simplify the presentation of deferred income taxes. Deferred tax liabilities and assets are now classified as noncurrent in a classified statement of financial position

for all period presented.

The Company accounts for uncertain tax positions in accordance with ASC

which contains a

-step approach to recognizing and

measuring uncertain tax positions. The

step is to evaluate the tax position taken or expected to be taken in a tax return by determining whether the weight of available evidence indicates that it is more likely than

that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The

step is to measure the tax benefit as the largest amount that is more than

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentrations of credit risk:

The majority of cash and cash equivalents and short-term deposits of the Company are invested in dollar deposits with major U.S., European and Israeli banks. Deposits

in U.S. banks

be in excess of insured limits and are

insured in other jurisdictions. Generally, cash and cash equivalents and

these

deposits

be withdrawn upon demand and therefore bear low risk.

’s marketable securities consist of investment-grade corporate bonds and U.S. government-sponsored enterprise (“GSE”) securities. As of

the amortized cost of the Company’s marketable securities was

$98,081,

and their stated market value was

$96,872,

representing an unrealized net loss of

$1,209.

require a letter of credit. The Company covers most of its trade receivables through credit insurance. As of

allowance for doubtful accounts was provided.

The Company has

off-balance-sheet concentration of credit risk, except for certain derivative instruments as mentioned below.

Derivatives, Policy [Policy Text Block]

Derivative instruments:

The Company accounts for derivatives and hedging based on FASB ASC

No.815,

”Derivatives and Hedging”.

ASC

requires companies to recognize all of their derivative instruments as either assets or liabilities on the balance sheet at fair value.

months with put and call options and forward contracts. These forward contracts and put and call options are designated as cash flow hedges and are all effective as hedges of these expenses.

The fair value of the outstanding derivative instruments at

		Fair value of derivative instruments
Derivative assets		December 31,
(liabilities) designated as hedging	Balance sheet location	2017		2016

Foreign exchange forward contracts and put and call options	Other accounts receivable and prepaid expenses (Accrued expenses and other accounts payable)	$	-	$	9

	Total	$	-	$	9

The effect of derivative instruments in cash flow hedging transactions on income and other comprehensive income (“OCI”) for the years ended

	Gains (losses) on derivatives recognized in OCI
	Year ended December 31,
	2017		2016		2015

Foreign exchange forward contracts and put and call options	$	163	$	45	$	(38	)

		Gains (losses) on derivatives reclassified from OCI to income
		Year ended December 31,
	Location	2017		2016		2015

Foreign exchange forward contracts and put and call options	Operating expenses	$	172	$	1	$	(621	)

outstanding option or forward contracts.

the Company had

the Company had outstanding option contracts in the amount of

December 31, 2016,

$6,000.

the Company had outstanding option contracts and forward contracts in the amount of

December 31, 2015,

Comprehensive Income, Policy [Policy Text Block]

Comprehensive income:

The Company accounts for comprehensive income in accordance with FASB ASC

“Comprehensive Income.” Comprehensive income generally represents all changes in stockholders

220,

The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for

The following table provides details about reclassifications out of accumulated other comprehensive income (loss) for

	Unrealized gains (losses) on available- for-sale marketable securities			Unrealized gains (losses) on Cash Flow Hedges			Unrealized gains (losses) on components of defined benefit plans			Unrealized gains (losses) on foreign currency translation			Total
January 1, 2017	$	(1,101	)	$	9		$	(455	)	$	(305	)	$	(1,852	)
Other comprehensive income (loss) before reclassifications		(158	)		163			24			49			78
Losses (gains) reclassified from accumulated other comprehensive income (loss)		50			(172	)		22			-			(100	)
Net current period other comprehensive income (loss)		(108	)		(9	)		46			49			(22	)

December 31, 2017	$	(1,209	)	$	-		$	(409	)	$	(256	)	$	(1,874	)

2017:

Details about Accumulated Other Comprehensive Income (Loss) Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)			Affected Line Item in the Statement of Income (Loss)

Losses on available-for-sale marketable securities	$	50		Financial income, net
		-		Provision for income taxes
		50		Total, net of income taxes

Gains on cash flow hedges
		(135	)	Research and development
		(13	)	Sales and marketing
		(24	)	General and administrative
		(172	)	Total, before income taxes
		-		Provision for income taxes
		(172	)	Total, net of income taxes

Losses on components of defined benefit plans		14		Research and development
		8		Sales and marketing
		22		Total, before income taxes
		-		Provision for income taxes
		22		Total, net of income taxes

Total reclassificati ons for the period		(100	)	Total, net of income taxes

Treasury Stock [Policy Text Block]

Treasury stock at cost

the re-issuance price, the Company credits the difference to additional paid-in capital.

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Issued Accounting Guidance:

May 2014,

five

-step approach for recognizing revenue, which

and that the Company’s current liabilities in an amount currently estimated at

January 1, 2018

$94,

the Company’s assets by

$21

$115

as of

Other than specified above, the Company does

otherwise expect the adoption of the new guidance will have a material impact on its businesses.

months regardless of their classification. Leases with a term of

twelve

842

supersedes the previous leases standard, ASC

840.

The standard is effective on

January 1, 2019,

with early adoption permitted. The Company currently anticipates adopting the new standard effective

January 1, 2019

and is evaluating the impact of the adoption of this standard on its consolidated financial statements

which amends the guidance on the classification of certain cash receipts and payments in the statement of cash flows. This ASU is effective for annual and interim reporting periods beginning after

December 15, 2017

and is applied retrospectively. Early adoption is permitted including adoption in an interim period. The Company expects

material impact on its statement of cash flows upon adoption.

The adoption of this ASU is

expected to have a material impact on the Company's consolidated financial statements.

Intangibles: Goodwill and Other: Simplifying the Test for Goodwill Impairment. To simplify the subsequent measurement of goodwill, the amendments eliminate Step

or negative carrying amount to perform Step

zero

Early adoption is permitted on testing dates after

15,

2019.

January

2017.

The Company is currently evaluating the impact of adopting the new guidance on its consolidated financial statements, but it is

with early adoption permitted for interim and annual periods beginning after

December 15, 2018.

The amendments will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the

reporting period in which the guidance is effective. The Company is currently evaluating the impact of adopting this new guidance on its consolidated financial statements, but it is

Derivatives and Hedging (Topic

Early adoption is permitted. The Company does

January 1, 2019.

expect that the adoption of this standard will have a material impact on its consolidated financial statements and related disclosures

Compensation—Retirement Benefits (Topic

expected to have a material effect on the Company’s consolidated financial statements

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Supplemental Cash Flow Information (Tables)

Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]

Working capital, excluding cash and cash equivalents	$	(386	)
Property and equipment		4
Distribution agreement		2,086
Deferred tax liability		(377	)
Goodwill		967
		2,294

The acquisition date fair value of the Company's previously held equity interest in the private company in Asia		(1,800	)


	$	494

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Note 1 - General (Tables)

Schedules of Concentration of Risk, by Risk Factor [Table Text Block]

	Year ended December 31,
Major Customers/ Distributors	2017		2016		2015
VTech Holdings Ltd.		27%		29%		31%

Shenzhen Guo Wei Electronics Ltd.		*		*%		12%

Tomen Electronics Corporation (“Tomen Electronics”) ¹ ²		12%		12%		16%

Ascend Technology Inc. (“Ascend Technology”) ¹ ³		23%		16%		15%

Samsung Electronics Ltd.		*		12%		-

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Note 2 - Significant Accounting Policies (Tables)

Schedule of Useful Life of Property and Equipment [Table Text Block]

	%			Mainly %

Computers and equipment	20	-	33		33
Office furniture and equipment	7	-	15		15
Leasehold improvements	see below

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

		Fair value of derivative instruments
Derivative assets		December 31,
(liabilities) designated as hedging	Balance sheet location	2017		2016

Foreign exchange forward contracts and put and call options	Other accounts receivable and prepaid expenses (Accrued expenses and other accounts payable)	$	-	$	9

	Total	$	-	$	9

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block]

	Gains (losses) on derivatives recognized in OCI
	Year ended December 31,
	2017		2016		2015

Foreign exchange forward contracts and put and call options	$	163	$	45	$	(38	)

Derivative Instruments, Gain (Loss) [Table Text Block]

		Gains (losses) on derivatives reclassified from OCI to income
		Year ended December 31,
	Location	2017		2016		2015

Foreign exchange forward contracts and put and call options	Operating expenses	$	172	$	1	$	(621	)

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

	Unrealized gains (losses) on available- for-sale marketable securities			Unrealized gains (losses) on Cash Flow Hedges			Unrealized gains (losses) on components of defined benefit plans			Unrealized gains (losses) on foreign currency translation			Total
January 1, 2017	$	(1,101	)	$	9		$	(455	)	$	(305	)	$	(1,852	)
Other comprehensive income (loss) before reclassifications		(158	)		163			24			49			78
Losses (gains) reclassified from accumulated other comprehensive income (loss)		50			(172	)		22			-			(100	)
Net current period other comprehensive income (loss)		(108	)		(9	)		46			49			(22	)

December 31, 2017	$	(1,209	)	$	-		$	(409	)	$	(256	)	$	(1,874	)

Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]

Details about Accumulated Other Comprehensive Income (Loss) Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)			Affected Line Item in the Statement of Income (Loss)

Losses on available-for-sale marketable securities	$	50		Financial income, net
		-		Provision for income taxes
		50		Total, net of income taxes

Gains on cash flow hedges
		(135	)	Research and development
		(13	)	Sales and marketing
		(24	)	General and administrative
		(172	)	Total, before income taxes
		-		Provision for income taxes
		(172	)	Total, net of income taxes

Losses on components of defined benefit plans		14		Research and development
		8		Sales and marketing
		22		Total, before income taxes
		-		Provision for income taxes
		22		Total, net of income taxes

Total reclassificati ons for the period		(100	)	Total, net of income taxes

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Note 3 - Marketable Securities and Time Deposits (Tables)

Available-for-sale Securities [Table Text Block]

	Amortized cost				Unrealized gains (losses), net						Fair value
	201 7		2016		201 7			2016			201 7		2016

Short-term deposit	$	5,481	$	7,610	$	-		$	-		$	5,481	$	7,610
Long -term deposit		5,013		-		-			-			5,013		-
U.S. GSE securities		22,359		24,351		(315	)		(289	)		22,044		24,062
Corporate obligations		75,722		76,264		(894	)		(813	)		74,828		75,451

	$	108,575	$	108,225	$	(1,209	)	$	(1,102	)	$	107,366	$	107,123

Investments Classified by Contractual Maturity Date [Table Text Block]

	Amortized		Unrealized gains (losses)					Fair
	cost		Gains		Losses			value

Due in one year or less	$	19,239	$	3	$	(26	)	$	19,216
Due after one year to five years		78,842		10		(1,196	)		77,656

	$	98,081	$	13	$	(1,222	)	$	96,872

	Amortized		Unrealized gains (losses)					Fair
	cost		Gains		Losses			value

Due in one year or less	$	21,491	$	6	$	(76	)	$	21,421
Due after one year to six years		79,124		44		(1,076	)		78,092

	$	100,615	$	50	$	(1,152	)	$	99,513

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References + Details

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Note 4 - Other Accounts Receivable and Prepaid Expenses (Tables)

Schedule of Other Accounts Receivable [Table Text Block]

	December 31,
	201 7		2016
Prepaid expenses	$	1,612	$	1,262
Tax and governmental receivables		1,019		606
Deposits		249		304
Others		287		159

	$	3,167	$	2,331

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Note 5 - Inventories (Tables)

Schedule of Inventory, Current [Table Text Block]

	December 31,
	201 7		2016

Work-in-progress	$	3,577	$	5,784
Finished products		5,845		3,964

	$	9,422	$	9,748

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Note 6 - Property and Equipment (Tables)

Property, Plant and Equipment [Table Text Block]

	December 31,
	201 7		2016
Cost:
Computers and equipment	$	21,465	$	20,636
Office furniture and equipment		1,429		1,537
Leasehold improvements		5,060		5,004

		27,954		27,177
Less - accumulated depreciation		24,770		23,047

Depreciated cost	$	3,184	$	4,130

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Note 7 - Intangible Assets (Tables)

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	Useful life		December 31,
	(years)		201 7		2016

Cost:


Technology (completion of the development of in-process R&D)		6		7,702		7,702
Distribution agreement		5		2,086		2,086
Non-competition agreement		3		519		519

				10,307		10,307
Accumulated amortization:


Technology (completion of the development of in-process R&D)				6,418		5,134
Distribution agreement				591		174
Non-competition agreement				519		519

				7,528		5,827






Amortized cost			$	2,779	$	4,480

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Year ending December 31,

201 8	$	1,701
201 9		417
20 20		417
202 1		244

	$	2,779

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Note 8 - Fair Value Measurements (Tables)

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

	Balance as of		Fair value measurements
Description	December 31, 201 7		Level 1		Level 2		Level 3

Assets

Cash equivalents
Money market mutual funds	$	2,998	$	2,998		-		-

Short-term marketable securities and time deposits
U.S. GSE securities	$	786		-	$	786		-
Corporate debt securities	$	18,430		-	$	18,430		-

Long-term marketable securities
U.S. GSE securities	$	21,258		-	$	21,258		-
Corporate debt securities	$	56,398		-	$	56,398		-
Derivative liabilities	$	-		-	$	-		-

	Balance as of		Fair value measurements
Description	December 31, 2016		Level 1		Level 2		Level 3

Assets

Cash equivalents
Money market mutual funds	$	1,370	$	1,370		-		-

Short-term marketable securities and time deposits
U.S. GSE securities	$	376		-	$	376		-
Corporate debt securities	$	21,045		-	$	21,045		-

Long-term marketable securities
U.S. GSE securities	$	23,686		-	$	23,686		-
Corporate debt securities	$	54,406		-	$	54,406		-

Derivative assets	$	9		-	$	9		-

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Note 9 - Accrued Expenses and Other Accounts Payable (Tables)

Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]

	December 31,
	2017		2016

Royalties and commission	$	1,369	$	1,128
Accrued expenses		896		1,385
Accrued l egal, and accounting expenses		367		537

Governmental payables		141		421
Others		115		85

	$	2,888	$	3,556

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Note 10 - Accrued Pension Liabilities (Tables)

Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan [Table Text Block]

	December 31,
	201 7			2016

Accumulated benefit obligation	$	871		$	792

Change in benefit obligation

Benefit obligation at beginning of year	$	803		$	738
Service cost		4			4
Interest cost		14			17
Benefits paid from the plan		(22	)		(55	)
Actuarial (gain) loss		(22	)		121
Exchange rates and others		106			(22	)

Benefit obligation at end of year	$	883		$	803

Change in plan assets

Fair value of plan assets at beginning of year		-			54
Actual return on plan assets		-			3
Benefits paid from the plan		-			(58	)
Exchange rates		-			1

Fair value of plan assets at end of year	$	-		$	-

Schedule of Assumptions Used [Table Text Block]

	Year ended December 31,
	201 7			2016			201 5
Weighted-average assumptions
Discount rate		1.8	%		1.7	%		2.5	%
Expected return on plan assets		-			4.59	%		4.28	%
Rate of compensation increase		2.5	%		2.5	%		2.5	%

Schedule of Net Benefit Costs [Table Text Block]

	December 31,
	201 7		2016			201 5
Components of net periodic benefit cost

Service cost	$	4	$	4		$	5
Interest cost		14		17			17
Expected return on plan assets		-		(3	)		(5	)
Amortization of net loss		22		15			20

Net periodic benefit cost	$	40	$	33		$	37

Schedule of Amounts Recognized in Balance Sheet [Table Text Block]

	December 31,
	201 7			2016

Net amounts recognized in the consolidated balance sheets as of December 31, 201 7 and 2016 consist of:
Current liabilities	$	-		$	-
Noncurrent liabilities		883			803

Net amounts recognized in the consolidated balance sheets	$	883		$	803

Net amounts recognized in accumulated other comprehensive income as of December 31, 201 7 and 2016 consist of:
Net actuarial loss	$	(409	)	$	(454	)

Net amounts recognized in accumulated other comprehensive loss	$	(409	)	$	(454	)

Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block]

	201 8

Net actuarial loss and other	$	20

Schedule of Expected Benefit Payments [Table Text Block]

Year ending December 31,

2018	$	9
2019		9
2020		10
2021		31
2022		27
2023-2027		112

	$	198

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Note 11 - Financial Income, Net (Tables)

Schedule of Other Nonoperating Income (Expense) [Table Text Block]

	Year ended December 31,
	201 7		2016		2015

Foreign exchange gains	$	156	$	14	$	19
Interest income from marketable securities and deposits, net of amortization of premium on marketable securities		1,719		1,534		1,391
Realized gains on marketable securities		7		16		3

Financial income		1,882		1,564		1,413

Realized losses on marketable securities		57		33		27
Foreign exchange losses		48		132		58
Interest expenses		14		16		12
Other		94		156		141

Financial expense		213		337		238

Financial income, net	$	1,669	$	1,227	$	1,175

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Note 12 - Stockholders' Equity (Tables)

Schedule of Equity Based Awards Available for Future Issuance [Table Text Block]

ESPP			715,000
Equity awards			697,000
Undesignated preferred stock			5,000,000

			6,412,000

Share-based Compensation, Activity [Table Text Block]

	Year ended December 31,
	2017							201 6							2015
	Amount of options/ SARs/RSUs			Weighted average exercise price		Aggregate intrinsic value (4)		Amount of options/ SARs/RSUs			Weighted average exercise price		Aggregate intrinsic value (4)		Amount of options/ SARs/RSUs			Weighted average exercise price		Aggregate intrinsic value (4)
	in thousands							in thousands							in thousands

Options outstanding at beginning of year		2,152		$	5.12	$	-		3,740		$	6.22	$	-		4,644		$	6.52	$	-
Changes during the year:
Options granted		78		$	11.93	$	-		64		$	9.44	$	-		179		$	11.2	$	-
SAR s granted		190		$	10.40	$	-
RSUs granted		476		$	-	$	-		573		$	-	$	-		405		$	-	$	-
Exercised (4)		(818	)	$	3.77	$	6,699		(1,905	)	$	5.55	$	10,344		(1,403	)	$	5.68	$	7,302

Forfeited and cancelled		(86	)	$	9.85	$	-		(320	)	$	7.16	$	-		(85	)	$	12.21	$	-

Options/SARs/RSUs outstanding at end of year (1,2,4)		1,992		$	5.02	$	14,931		2,152		$	5.12	$	17,347		3,740		$	6.22	$	13,364

Options/SARs/RSUs exercisable at end of year (1,3,4)		813		$	8.20	$	3,499		1,132		$	8.27	$	5,703		2,552		$	7.47	$	6,031

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]

Range of exercise price			Outstanding		Remaining contractual life (years) ( 1 )		Weighted average exercise price		Exercisable		Remaining contractual life (years)		Weighted average exercise price
$			thousands				$		thousands				$

0 (RSUs)				872		-		-		-		-		-
5.21	-	7.26		231		3.03		5.89		231		3.03		5.89
7.49	-	9.71		458		3.68		8.50		451		3.68		8.50
10.15	-	15.79		431		5.95		11.01		131		5.03		11.22


				1,992		4.42		5.02		813		3.72		8.20

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	Year ended December 31,
	2017			2016			2015

Volatility		37.47	%		46.02	%		49.04	%
Risk-free interest rate		2.23	%		2.29	%		1.96	%
Dividend yield		0	%		0	%		0	%
Pre-vest cancellation rate *)		4.06	%		1.87	%		3.95	%
Post-vest cancellation rate **)		3.45	%		3.44	%		3.86	%
Suboptimal exercise factor ***)		1.31			1.69			1.46
Expected life (in years)		4.22			5.50			4.43

Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]

Non-vested	Units			Weighted average grant date fair value
	(In thousands)			$

Non-vested at December 31, 2016		1,019			7.69

Granted		744			7.22
Vested		(539	)		7.46
Forfeited		(46	)		7.69

Non-vested at December 31, 2017		1,179			7.50

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Note 13 - Commitments and Contingencies (Tables)

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

Year ended December 31,

2018	$	2,961
2019		1,524
2020		1,298
2021- and thereafter		9,185

	$	14,968

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Note 14 - Taxes on Income (Tables)

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	Year ended December 31,
	2017			2016		2015
Domestic taxes

Federal taxes:
Current	$	-		$	-	$	-

State taxes:
Current		2			3		2

Foreign taxes:
Current	$	368		$	264	$	1,081
Deferred		(462	)		327		(756	)

		(94	)		591		325

Taxes on income (tax benefit)	$	(92	)	$	594	$	327

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

	Year ended December 31,
	2017			2016			2015

Domestic	$	(4,128	)	$	(2,188	)	$	(909	)
Foreign		1,033			7,595			2,798

	$	(3,095	)	$	5,407		$	1,889

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	Year ended December 31,
	2017			2016			2015


Income (loss) before taxes on income	$	(3,095	)	$	5,407		$	1,889

Theoretical tax expenses ( tax benefit) at U.S. statutory tax rate (35%)	$	(1,083	)	$	1,892		$	661
State taxes, net of federal benefit		2			3			2
Foreign income taxed at rates other than the U.S. rate (including deferred taxes that were not provided, valuation allowance and current adjustment and interest on uncertain tax position liability)		(808	)		(2,580	)		(2,209	)
Nondeductible equity-based compensation expenses		816			695			1,782
Valuation allowance in U.S.		984			583			91
Other		(2	)		1			-

	$	(92	)	$	594		$	327

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	December 31,
	2017			2016

Reserves and accruals	$	1,202		$	1,322
Equity-based compensation		922			846
Intangible assets		320			688
Carryforward tax losses		4,368			5,770
Other		229			-

Total deferred tax assets		7,041			8,626
Valuation allowance		(5,998	)		(7,708	)

Total deferred tax assets	$	1,043		$	918



Deferred tax liabilities, net
Acquired intangible assets		565			987
Acquired carryforward tax losses		(141	)		(200	)

Total deferred tax liabilities, net	$	424		$	787

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

	2017			2016

Gross unrecognized tax benefits at January 1	$	1,023		$	1,711
Increases (decreases) in tax positions for previous years (1)		(268	)		(918	)
Increases in tax positions for current year		306			396
Increase in tax positions for previous years		131			-
Change in interest and linkage related to tax positions		81			(166	)

Gross unrecognized tax benefits at December 31	$	1,273		$	1,023

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Note 15 - Basic and Diluted Loss Per Share (Tables)

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Year ended December 31,
	201 7			201 6		201 5
Numerator:

Net income (loss)	$	(3,003	)	$	4,813	$	1,562

Denominator:

Weighted average number of shares of common stock outstanding during the year used to compute basic net earnings (loss) per share (in thousands)		22,229			21,800		21,924
Incremental shares attributable to exercise of outstanding options, SARs and RSUs (assuming proceeds would be used to purchase treasury stock) (in thousands)		-			1,087		1,416

Weighted average number of shares of common stock used to compute diluted net earnings (loss) per share (in thousands)		22,229			22,887		23,340

Basic net earnings (loss) per share	$	(0.14	)	$	0.22	$	0.07

Diluted net earnings (loss) per share	$	(0.14	)	$	0.21	$	0.07

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Note 16 - Segment Information (Tables)

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Year ended December 31
	Revenues						Income (loss) from operations
	201 7		2016		2015		2017			2016			2015
Home	$	85,021	$	95,388	$	121,714	$	16,256		$	17,715		$	24,815
Office	$	34,879	$	26,590	$	22,216	$	9,105		$	(2,961	)	$	(4,861	)
SmartVoice	$	4,853	$	15,891	$	341	$	(20,798	)	$	(5,190	)	$	(10,308	)
Total	$	124,753	$	137,869	$	144,271	$	4,563		$	9,564		$	9,646

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]

	Year ended December 31,
	201 7			2016			2015
Income from operations	$	4,563		$	9,564		$	9,646
Unallocated corporate, general and administrative expenses*		(1,766	)		(1,388	)		(2,156	)
Other income		-			2,549			-
Equity-based compensation expenses		(5,861	)		(5,088	)		(5,092	)
Intangible assets amortization expenses		(1,700	)		(1,457	)		(1,284	)
Write –off of expired option related to investment in other company		-			-			(400	)
Financial income, net		1,669			1,227			1,175
Total consolidated income (loss) before taxes	$	(3,095	)	$	5,407		$	1,889

Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]

	Year ended December 31,
	201 7		2016		2015
Revenue distribution

Hong-Kong	$	46,119	$	56,768	$	72,608
Japan		16,567		18,440		26,114
Europe		9,882		9,703		8,464
United States		4,927		4,696		3,944
China		16,096		10,244		10,359
Taiwan		22,442		16,428		16,902
South Korea		4,190		17,503		1,913
Other		4,530		4,087		3,967

	$	124,753	$	137,869	$	144,271

Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block]

	December 31,
	2017		2016
Long-lived assets

Europe	$	144	$	216
Israel		2,017		2,652
Other		1,023		1,262

	$	3,184	$	4,130

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Schedule II - Valuation and Qualifying Accounts (Tables)

Valuation Allowances and Reserves [Table Text Block]

Year ended December 31, 2015:

Year ended December 31, 2016:

Year ended December 31, 2017:

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Supplemental Cash Flow Information (Details Textual) - Private Company in Asia [Member]	Sep. 30, 2016
Business Acquisition, Percentage of Voting Interests Acquired	86.00%
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage	100.00%

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Supplemental Cash Flow Information - Value of Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Thousands

Private Company in Asia [Member]

Working capital, excluding cash and cash equivalents

$ (386)

Property and equipment

Distribution agreement

2,086

Deferred tax liability

The acquisition date fair value of the Company's previously held equity interest in the private company in Asia

(1,800)

$ 494

[1]

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Note 1 - General (Details Textual)	12 Months Ended
Note 1 - General (Details Textual)	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Panasonic Communications Corporation [Member] \| Customer Concentration Risk [Member] \| Sales Revenue, Net [Member]
Concentration Risk, Percentage	10.00%	10.00%	13.00%

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Note 1 - General - Sales as Percentage of the Company's Total Revenue by Major Customers (Details) - Customer Concentration Risk [Member] - Sales Revenue, Net [Member]

VTech Holdings Ltd [Member]

Guo Wei Electronics [Member]

27.00%

29.00%

31.00%

Tomen Electronics Corporation [Member]

12.00%

Ascend Technology Inc [Member]

^[2],[3]

12.00%

16.00%

Samsung Mobile [Member]

XML 65 R50.htm IDEA: XBRL DOCUMENT

12.00%

[1]	Less than 10%.
[2]	Distributor
[3]	Tomen Electronics sells the Company's products to a limited number of customers. One customer, Panasonic Communications Co., Ltd. ("Panasonic") has continually accounted for a majority of the sales of Tomen Electronics. Sales to Panasonic through Tomen Electronics generated approximately 10%, 10% and 13% of the Company's total revenues for 2017, 2016 and 2015, respectively.
[4]	Ascend Technology sells the Company's products to a limited number of customers; however none of those customers accounted for more than 10% of the Company's total revenues for 2017, 2016 and 2015.

Note 2 - Significant Accounting Policies (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Jan. 01, 2018
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax	$ 256,000	$ 305,000
Other than Temporary Impairment Losses, Investments	0	0	$ 0
Inventory, Net	9,422,000	9,748,000	11,453,000
Inventory Valuation Reserves	468,000	571,000	670,000
Impairment of Long-Lived Assets Held-for-use	0	0	0
Capitalized Computer Software, Additions	0	0	1,086,000
Goodwill, Impairment Loss	0	0	0
Severance Costs	1,666,000	1,582,000	1,498,000
Financial Grants in Support of Research and Development	$ 1,528,000	$ 2,687,000	$ 2,738,000
Financial Grants in Support of Research and Development, Royalty Obligation	5.00%
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,378,282	334,833	403,632
Available-for-sale Securities, Amortized Cost Basis	$ 108,575,000	$ 108,225,000
Available-for-sale Securities	107,366,000	107,123,000
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	1,222,000	1,152,000
Allowance for Doubtful Accounts Receivable	0	0
Subsequent Event [Member] \| Accounting Standards Update 2014-09 [Member] \| Liability [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption				$ 115,000
Subsequent Event [Member] \| Accounting Standards Update 2014-09 [Member] \| Assets [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption				21,000
Subsequent Event [Member] \| Retained Earnings [Member] \| Accounting Standards Update 2014-09 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption				$ 94,000
Foreign Exchange Option [Member]
Price Risk Cash Flow Hedge Asset, at Fair Value	0	6,000,000	$ 12,850,000
Foreign Exchange Forward Contracts and Put Options [Member]
Price Risk Cash Flow Hedge Asset, at Fair Value			$ 1,800,000
Debt Securities [Member]
Available-for-sale Securities, Amortized Cost Basis	98,081,000	100,615,000
Available-for-sale Securities	96,872,000	$ 99,513,000
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	$ 1,209,000
Minimum [Member]
Finite-Lived Intangible Asset, Useful Life	5 years
Derivative Instrument Hedging Period	1 year
Maximum [Member]
Finite-Lived Intangible Asset, Useful Life	6 years
Derivative Instrument Hedging Period	1 year
Computer Software, Intangible Asset [Member]
Finite-Lived Intangible Asset, Useful Life	3 years

XML 66 R51.htm IDEA: XBRL DOCUMENT

Note 2 - Significant Accounting Policies - Property and Equipment Depreciation Rates (Details)	12 Months Ended
	Dec. 31, 2017
Computer Equipment [Member] \| Minimum [Member]
Computers and equipment	20.00%
Computer Equipment [Member] \| Maximum [Member]
Computers and equipment	33.00%
Office Furniture and Equipment [Member] \| Minimum [Member]
Computers and equipment	7.00%
Office Furniture and Equipment [Member] \| Maximum [Member]
Computers and equipment	15.00%

XML 67 R52.htm IDEA: XBRL DOCUMENT

Note 2 - Significant Accounting Policies - Fair Value of the Outstanding Derivative Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Fair value of derivative instruments		$ 9
Foreign Exchange Forward Contracts and Put Options [Member] \| Prepaid Expenses and Other Current Assets [Member]
Fair value of derivative instruments		$ 9

XML 68 R53.htm IDEA: XBRL DOCUMENT

Note 2 - Significant Accounting Policies - Effect of Derivative Instruments in Cash Flow Hedging Transactions on Income and Other Comprehensive Income Gains (Losses) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Foreign Exchange Contract [Member]
Foreign exchange forward contracts and put and call options	$ 163	$ 45	$ (38)

XML 69 R54.htm IDEA: XBRL DOCUMENT

Note 2 - Significant Accounting Policies - Gains (Losses) on Derivatives Reclassified from OCI to Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Foreign exchange forward contracts and put and call options	$ 172	$ 1	$ (621)

XML 70 R55.htm IDEA: XBRL DOCUMENT

Note 2 - Significant Accounting Policies - Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Balance	$ (1,852)
Other comprehensive income (loss) before reclassifications	78
Losses (gains) reclassified from accumulated other comprehensive income (loss)	(100)
Other comprehensive income (loss)	(22)	$ (585)	$ 299
Balance	(1,874)	(1,852)
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
Balance	(1,101)
Other comprehensive income (loss) before reclassifications	(158)
Losses (gains) reclassified from accumulated other comprehensive income (loss)	50
Other comprehensive income (loss)	(108)
Balance	(1,209)	(1,101)
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Balance	9
Other comprehensive income (loss) before reclassifications	163
Losses (gains) reclassified from accumulated other comprehensive income (loss)	(172)
Other comprehensive income (loss)	(9)
Balance		9
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Balance	(455)
Other comprehensive income (loss) before reclassifications	24
Losses (gains) reclassified from accumulated other comprehensive income (loss)	22
Other comprehensive income (loss)	46
Balance	(409)	(455)
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Balance	(305)
Other comprehensive income (loss) before reclassifications	49
Losses (gains) reclassified from accumulated other comprehensive income (loss)
Other comprehensive income (loss)	49
Balance	$ (256)	$ (305)

XML 71 R56.htm IDEA: XBRL DOCUMENT

Note 2 - Significant Accounting Policies - Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Thousands

Losses on available-for-sale marketable securities

^[3]

9,789

9,006

9,876

Reclassification out of Accumulated Other Comprehensive Income [Member]

Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]

(100)

Losses on available-for-sale marketable securities

Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]

(172)

(135)

(13)

(24)

(135)

Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]

(13)

XML 72 R57.htm IDEA: XBRL DOCUMENT

$ 8

[1]	Includes equity-based compensation expense in the amount of $2,349, $2,205 and $2,201for the years ended December 31, 2017, 2016 and 2015, respectively.
[2]	Includes equity-based compensation expense in the amount of $1,115, $806 and $641 for the years ended December 31, 2017, 2016 and 2015, respectively.
[3]	Includes equity-based compensation expense in the amount of $2,045, $1,749 and $1,950 for the years ended December 31, 2017, 2016 and 2015, respectively.

Note 3 - Marketable Securities and Time Deposits (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	$ 85,435	$ 80,819
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	1,222	1,152
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	775	85
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	447	1,067
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net	0
Proceeds from Maturities, Prepayments and Calls of Available-for-sale Securities	21,499	35,090	$ 20,127
Proceeds from Sale of Available-for-sale Securities	19,226	14,277	13,238
Available-for-sale Securities, Gross Realized Gains	7	16	3
Available-for-sale Securities, Gross Realized Losses	$ 57	$ 33	$ 27

XML 73 R58.htm IDEA: XBRL DOCUMENT

Note 3 - Marketable Securities and Time Deposits - Marketable Securities and Time Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Available-for-sale Securities, Amortized Cost Basis	$ 108,575	$ 108,225
Marketable securities and time deposits, unrealized gains (losses), net	(1,209)	(1,102)
Available-for-sale Securities	107,366	107,123
Short-term Deposits [Member]
Available-for-sale Securities, Amortized Cost Basis	5,481	7,610
Marketable securities and time deposits, unrealized gains (losses), net
Available-for-sale Securities	5,481	7,610
Long-Term Deposit [Member]
Available-for-sale Securities, Amortized Cost Basis	5,013
Marketable securities and time deposits, unrealized gains (losses), net
Available-for-sale Securities	5,013
US Government-sponsored Enterprises Debt Securities [Member]
Available-for-sale Securities, Amortized Cost Basis	22,359	24,351
Marketable securities and time deposits, unrealized gains (losses), net	(315)	(289)
Available-for-sale Securities	22,044	24,062
Corporate Debt Securities [Member]
Available-for-sale Securities, Amortized Cost Basis	75,722	76,264
Marketable securities and time deposits, unrealized gains (losses), net	(894)	(813)
Available-for-sale Securities	$ 74,828	$ 75,451

XML 74 R59.htm IDEA: XBRL DOCUMENT

Note 3 - Marketable Securities and Time Deposits - Marketable Debt Securities by Contractual Maturities (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Marketable debt securities, amortized cost	$ 108,575,000	$ 108,225,000
Marketable debt securities, estimated fair value	107,366,000	107,123,000
Debt Securities [Member]
Marketable debt securities, amortized cost	98,081,000	100,615,000
Marketable debt securities, unrealized gains	13,000	50,000
Marketable debt securities, unrealized losses	(1,222,000)	(1,152,000)
Marketable debt securities, estimated fair value	96,872,000	99,513,000
Debt Securities [Member] \| Due in One Year or Less [Member]
Marketable debt securities, amortized cost	19,239,000	21,491,000
Marketable debt securities, unrealized gains	3,000	6,000
Marketable debt securities, unrealized losses	(26,000)	(76,000)
Marketable debt securities, estimated fair value	19,216,000	21,421,000
Debt Securities [Member] \| Due after One Year to Five Years [Member]
Marketable debt securities, amortized cost	78,842,000
Marketable debt securities, unrealized gains	10,000
Marketable debt securities, unrealized losses	(1,196,000)
Marketable debt securities, estimated fair value	$ 77,656,000
Debt Securities [Member] \| Due After One Year to Six Years [Member]
Marketable debt securities, amortized cost		79,124,000
Marketable debt securities, unrealized gains		44,000
Marketable debt securities, unrealized losses		(1,076,000)
Marketable debt securities, estimated fair value		$ 78,092,000

XML 75 R60.htm IDEA: XBRL DOCUMENT

Note 4 - Other Accounts Receivable and Prepaid Expenses - Other Accounts Receivable and Prepaid Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Prepaid expenses	$ 1,612	$ 1,262
Tax and governmental receivables	1,019	606
Deposits	249	304
Others	287	159
	$ 3,167	$ 2,331

XML 76 R61.htm IDEA: XBRL DOCUMENT

Note 5 - Inventories (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Inventory Write-down	$ 51	$ 151	$ 361

XML 77 R62.htm IDEA: XBRL DOCUMENT

Note 5 - Inventories - Components of Inventories (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Work-in-progress	$ 3,577,000	$ 5,784,000
Finished products	5,845,000	3,964,000
	$ 9,422,000	$ 9,748,000	$ 11,453,000

XML 78 R63.htm IDEA: XBRL DOCUMENT

Note 6 - Property and Equipment (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment, Disposals	$ 98	$ 953
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property	(19)	(10)
Depreciation, Depletion and Amortization, Nonproduction	$ 1,781	$ 1,704	$ 1,356

XML 79 R64.htm IDEA: XBRL DOCUMENT

Note 6 - Property and Equipment - Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Property and equipment	$ 27,954	$ 27,177
Less - accumulated depreciation	24,770	23,047
Depreciated cost	3,184	4,130
Computer Equipment [Member]
Property and equipment	21,465	20,636
Office Furniture and Equipment [Member]
Property and equipment	1,429	1,537
Leasehold Improvements [Member]
Property and equipment	$ 5,060	$ 5,004

XML 80 R65.htm IDEA: XBRL DOCUMENT

Note 7 - Intangible Assets (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Amortization of Intangible Assets	$ 1,700	$ 1,457	$ 1,284

XML 81 R66.htm IDEA: XBRL DOCUMENT

Note 7 - Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Intangible assets, cost	$ 10,307	$ 10,307
Intangible assets, accumulated amortization	7,528	5,827
	$ 2,779	4,480
In Process Research and Development [Member]
Intangible assets, useful life (Year)	6 years
Intangible assets, cost	$ 7,702	7,702
Intangible assets, accumulated amortization	$ 6,418	5,134
Distribution Rights [Member]
Intangible assets, useful life (Year)	5 years
Intangible assets, cost	$ 2,086	2,086
Intangible assets, accumulated amortization	$ 591	174
Noncompete Agreements [Member]
Intangible assets, useful life (Year)	3 years
Intangible assets, cost	$ 519	519
Intangible assets, accumulated amortization	$ 519	$ 519

XML 82 R67.htm IDEA: XBRL DOCUMENT

Note 7 - Intangible Assets, Net - Estimated Amortization Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
2018	$ 1,701
2019	417
2020	417
2021	244
	$ 2,779	$ 4,480

XML 83 R68.htm IDEA: XBRL DOCUMENT

Note 8 - Fair Value Measurements - Fair Value Measurements of Assets and Liabilities on Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Derivative liabilities
Derivative assets		$ 9
Fair Value, Inputs, Level 1 [Member]
Derivative liabilities
Derivative assets
Fair Value, Inputs, Level 2 [Member]
Derivative liabilities
Derivative assets		9
Fair Value, Inputs, Level 3 [Member]
Derivative liabilities
Derivative assets
Money Market Funds [Member]
Money market mutual funds	2,998	1,370
Money Market Funds [Member] \| Fair Value, Inputs, Level 1 [Member]
Money market mutual funds	2,998	1,370
Money Market Funds [Member] \| Fair Value, Inputs, Level 2 [Member]
Money market mutual funds
Money Market Funds [Member] \| Fair Value, Inputs, Level 3 [Member]
Money market mutual funds
US Government-sponsored Enterprises Debt Securities [Member]
Short-term securities	786	376
Long-term securities	21,258	23,686
US Government-sponsored Enterprises Debt Securities [Member] \| Fair Value, Inputs, Level 1 [Member]
Short-term securities
Long-term securities
US Government-sponsored Enterprises Debt Securities [Member] \| Fair Value, Inputs, Level 2 [Member]
Short-term securities	786	376
Long-term securities	21,258	23,686
US Government-sponsored Enterprises Debt Securities [Member] \| Fair Value, Inputs, Level 3 [Member]
Short-term securities
Long-term securities
Corporate Debt Securities [Member]
Short-term securities	18,430	21,045
Long-term securities	56,398	54,406
Corporate Debt Securities [Member] \| Fair Value, Inputs, Level 1 [Member]
Short-term securities
Long-term securities
Corporate Debt Securities [Member] \| Fair Value, Inputs, Level 2 [Member]
Short-term securities	18,430	21,045
Long-term securities	56,398	54,406
Corporate Debt Securities [Member] \| Fair Value, Inputs, Level 3 [Member]
Short-term securities
Long-term securities

XML 84 R69.htm IDEA: XBRL DOCUMENT

Note 9 - Accrued Expenses and Other Accounts Payable - Accrued Expenses and Other Accounts Payable (Details) - USD ($)
$ in Thousands

Dec. 31, 2016

Royalties and commission

Accrued legal, and accounting expenses

367

537

Governmental payables

XML 85 R70.htm IDEA: XBRL DOCUMENT

[1]	The above decreases in 2016 were mainly related to the reversal of certain provisions due to the elapse of the applicable statute of limitations, in the amount of $2,549, which amount was recorded in other income,

Note 10 - Accrued Pension Liabilities (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Defined Benefit Plan, Fair Value of Plan Assets	$ 0		$ 54
Defined Benefit Plan Corridor Percentage	10.00%
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, after Tax	$ 24	$ (117)	$ 63

XML 86 R71.htm IDEA: XBRL DOCUMENT

Note 10 - Accrued Pension Liabilities - Changes in the Pension Plans' Benefit Obligation and Fair Value of Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accumulated benefit obligation	$ 871	$ 792
Benefit obligation at beginning of year	803	738
Service cost	4	4	$ 5
Interest cost	14	17	17
Benefits paid from the plan	(22)	(55)
Actuarial (gain) loss	(22)	121
Exchange rates and others	106	(22)
Benefit obligation at end of year	883	803	738
Fair value of plan assets at beginning of year		54
Actual return on plan assets		3
Benefits paid from the plan		(58)
Exchange rates		1
Fair value of plan assets at end of year	$ 0		$ 54

XML 87 R72.htm IDEA: XBRL DOCUMENT

Note 10 - Accrued Pension Liabilities - Assumptions Used in the Measurement of the Pension Expense and Benefit Obligation (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Weighted-average assumptions
Discount rate	1.80%	1.70%	2.50%
Expected return on plan assets		4.59%	4.28%
Rate of compensation increase	2.50%	2.50%	2.50%

XML 88 R73.htm IDEA: XBRL DOCUMENT

Note 10 - Accrued Pension Liabilities - Components of Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Components of net periodic benefit cost
Service cost	$ 4	$ 4	$ 5
Interest cost	14	17	17
Expected return on plan assets		(3)	(5)
Amortization of net loss	22	15	20
Net periodic benefit cost	$ 40	$ 33	$ 37

XML 89 R74.htm IDEA: XBRL DOCUMENT

Note 10 - Accrued Pension Liabilities - Net Amounts Recognized in Consolidated Balance Sheets and Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Current liabilities
Accrued pensions (Note 10)	883	803
Net amounts recognized in the consolidated balance sheets	883	803
Net actuarial loss	(409)	(454)
Net amounts recognized in accumulated other comprehensive loss	$ (409)	$ (454)

XML 90 R75.htm IDEA: XBRL DOCUMENT

Note 10 - Accrued Pension Liabilities - Estimated Amount That will Amortized from Accumulated Other Comprehensive Income (Loss) into Net Periodic Benefit Cost (Details) $ in Thousands	Dec. 31, 2017 USD ($)
Net actuarial loss and other	$ 20

XML 91 R76.htm IDEA: XBRL DOCUMENT

Note 10 - Accrued Pension Liabilities - Benefit Payments Expected to Be Paid (Details) $ in Thousands	Dec. 31, 2017 USD ($)
2018	$ 9
2019	9
2020	10
2021	31
2022	27
2023-2027	112
	$ 198

XML 92 R77.htm IDEA: XBRL DOCUMENT

Note 11 - Financial Income, Net - Components of Financial Income, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Foreign exchange gains	$ 156	$ 14	$ 19
Interest income from marketable securities and deposits, net of amortization of premium on marketable securities	1,719	1,534	1,391
Realized gains on marketable securities	7	16	3
Financial income	1,882	1,564	1,413
Realized losses on marketable securities	57	33	27
Foreign exchange losses	48	132	58
Interest expenses	14	16	12
Other	94	156	141
Financial expense	213	337	238
Financial income, net	$ 1,669	$ 1,227	$ 1,175

XML 93 R78.htm IDEA: XBRL DOCUMENT

Note 12 - Stockholders' Equity (Details Textual) - USD ($)
$ / shares in Units, $ in Thousands

Preferred Stock, Shares Authorized

5,000,000

Preferred Stock, Shares Outstanding

Common Stock, Shares Authorized

50,000,000

Retained Earnings (Accumulated Deficit)

$ (104,842)

$ (96,112)

Stock Repurchase Program, Authorized Amount, Additional

$ 10,000

Treasury Stock, Shares, Acquired

389,000

1,051,000

1,295,000

Treasury Stock Acquired, Average Cost Per Share

$ 11.55

$ 10.15

$ 10.24

Treasury Stock, Value, Acquired, Cost Method

$ 4,490

$ 10,666

$ 13,268

Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased

748,010

Stock Issued During Period, Shares, Employee Stock Ownership Plan

890,000

1,409,000

1,024,000

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross

78,000

64,000

179,000

Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term

4 years 80 days

5 years 182 days

4 years 156 days

Allocated Share-based Compensation Expense

$ 5,861

$ 5,088

$ 5,092

Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number

1,721,000

Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized

$ 3,782

Common Stock [Member]

Treasury Stock, Shares, Acquired

389,000

1,051,000

1,295,000

Treasury Stock, Value, Acquired, Cost Method

1993 Director Stock Option Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized

1,980,875

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross

2,464,933

Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period

10 years

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number

260,000

1998 Non-Officer Employee Stock Option Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period

Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized

5,062,881

Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period

7 years

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number

14,681

2003 Israeli Share Option Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross

10,700,543

Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period

7 years

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number

56,186

2012 Equity Incentive Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period

Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized

3,100,000

Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period

7 years

Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant

682,059

2012 Equity Incentive Plan [Member] | Non-employee Directors [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross

8,000

1993 Employee Stock Purchase Plan (ESPP) [Member]

Share-based Compensation Arrangement by Share-based Payment Award Options Grants in Period, Exercise Price Based on Percentage of Fair Market Value of Common Stock

85.00%

Employee Stock Purchase Plan, Shares Reserved for Future Purchase

4,800,000

Stock Issued During Period, Shares, Employee Stock Purchase Plans

227,000

233,000

Employee Stock Ownership Plan (ESOP), Weighted Average Purchase Price of Shares Purchased

$ 8.34

$ 7.62

$ 7.59

Employee Stock Purchase Plan (ESPP), Shares Reserved for Future Purchase, Remaining

715,000

Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum

27.42%

29.60%

22.83%

Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum

34.92%

41.21%

34.53%

Share-based Compensation Award, Tranche One [Member] | 1993 Director Stock Option Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage

33.00%

Share-based Compensation Award, Tranche Two [Member] | 1993 Director Stock Option Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage

33.00%

Share-based Compensation Award, Tranche Three [Member] | 1993 Director Stock Option Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage

33.00%

Restricted Stock Units (RSUs) [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period

476,000

573,000

405,000

Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number

872,000

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value

$ 9.63

$ 8.33

$ 10.43

Share-based Compensation Arrangement by Share-based Payment Award, Weighted Average Pre Vest Cancel Rate

3.64%

3.78%

3.49%

Restricted Stock Units (RSUs) [Member] | 2012 Equity Incentive Plan [Member] | Non-employee Directors [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period

4,000

Restricted Stock Units (RSUs) [Member] | Share-based Compensation Award, Vesting on the First Anniversary [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage

25.00%

Restricted Stock Units (RSUs) [Member] | Share-based Compensation Award, Vesting Each Quarter After First Anniversary [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage

6.25%

First Option [Member] | 1993 Director Stock Option Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross

30,000

Subsequent Option [Member] | 1993 Director Stock Option Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross

Committee Option [Member] | 1993 Director Stock Option Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross

Stock Appreciation Rights (SARs) [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period

190,000

Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number

270,000

Employee Stock Option [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value

Share-based Compensation Arrangement by Share-based Payment Award Options Grants in Period, Exercise Price Based on Percentage of Fair Market Value of Common Stock

100.00%

Minimum [Member] | 1993 Employee Stock Purchase Plan (ESPP) [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term

6 years

Maximum [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares to be Issued Upon Exercise of Outstanding Awards

1,871,000

Share-based Compensation Arrangement by Share-based Payment Award, Options and Stock Appreciation Rights, Exercisable, Number

785,000

Maximum [Member] | 1993 Employee Stock Purchase Plan (ESPP) [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term

2 years

Maximum [Member] | Stock Appreciation Rights (SARs) [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant as Percentage of Company Outstanding Common Stock

50.00%

75.00%

66.67%

[1]	Represents an amount lower than $1.

XML 94 R79.htm IDEA: XBRL DOCUMENT

Note 12 - Stockholders' Equity - Number of Shares Available for Future Issuance (Details)	Dec. 31, 2017 shares
Preferred shares available for future issuance (in shares)	5,000,000
Common and preferred shares available for future issuance (in shares)	6,412,000
1993 Employee Stock Purchase Plan (ESPP) [Member]
Common shares available for future issuance (in shares)	715,000
Incentive Plans Excluding ESPP [Member]
Common shares available for future issuance (in shares)	697,000

XML 95 R80.htm IDEA: XBRL DOCUMENT

Note 12 - Stockholders' Equity - Stock Options, SARs and RSUs Activity (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands

Options outstanding at beginning of year (in shares)

Options outstanding at beginning of year, weighted average exercise price (in dollars per share)

Options outstanding at beginning of year

Options granted (in shares)

179

Options granted, weighted average exercise price (in dollars per share)

$ 11.93

$ 9.44

$ 11.20

Options granted, aggregate intrinsic value

Exercised (in shares)

Exercised, weighted average exercise price (in dollars per share)

(818)

(1,905)

(1,403)

Exercised, aggregate intrinsic value

$ 3.77

$ 5.55

$ 5.68

Forfeited and cancelled (in shares)

$ 6,699

$ 10,344

$ 7,302

(86)

(320)

(85)

Forfeited and cancelled, weighted average exercise price (in dollars per share)

$ 9.85

$ 7.16

$ 12.21

Forfeited and cancelled, aggregate intrinsic value

Options outstanding at end of year (in shares)

Options outstanding at end of year, weighted average exercise price (in dollars per share)

Options/SARs/RSUs outstanding at end of year (1,2,4)

Options/SARs/RSUs exercisable at end of year (1,3,4) (in shares)

Options/SARs/RSUs exercisable at end of year (1,3,4), weighted average exercise price (in dollars per share)

Options/SARs/RSUs exercisable at end of year (1,3,4), aggregate intrinsic value

Stock Appreciation Rights (SARs) [Member]

Non-option instruments granted (in shares)

190

Non-option instruments, weighted average exercise price (in dollars per share)

$ 10.40

Non-option instruments, aggregate intrinsic value

Restricted Stock Units (RSUs) [Member]

Non-option instruments granted (in shares)

476

573

405

Non-option instruments, weighted average exercise price (in dollars per share)

Non-option instruments, aggregate intrinsic value

XML 96 R81.htm IDEA: XBRL DOCUMENT

[1]	Calculation of aggregate intrinsic value for options, RSUs and SARs outstanding and exercisable is based on the share price of the Company's common stock as of December 31, 2017, 2016 and 2015 which was $12.50, $13.05 and $9.44 per share, respectively. The intrinsic value for options and SARs exercised and RSUs vested during those years represents the difference between the fair market value of the Company's common stock on the date of exercise and vesting for RSUs and the exercise price of each option, RSU or SAR, as applicable.
[2]	Due to the ceiling imposed on the SAR grants, the outstanding amount above can be exercised for a maximum of 1,871 thousand shares of the Company's common stock as of December 31, 2017.
[3]	SAR grants made prior to January 1, 2009 are convertible for a maximum number of shares of the Company's common stock equal to 50% of the SAR units subject to the grant. SAR grants made on or after January 1, 2009 and before January 1, 2010 are convertible for a maximum number of shares of the Company's common stock equal to 75% of the SAR units subject to the grant. SAR grants made on or after January 1, 2010 are convertible for a maximum number of shares of the Company's common stock equal to 66.67% of the SAR units subject to the grant. SAR grants made on or after January 1, 2012 are convertible for a maximum number of shares of the Company's common stock equal to 50% of the SAR units subject to the grant.
[4]	Due to the ceiling imposed on the SAR grants, the exercisable amount above can be exercised for a maximum of 785 thousand shares of the Company's common stock as of December 31, 2017.

Note 12 - Stockholders' Equity - Stock Options and SARs Outstanding by Exercise Price Range (Details)
shares in Thousands

$ / shares

4 years 153 days

Outstanding, weighted average exercise price (in dollars per share)

$ 5.02

813

Exercisable, weighted average exercise price (in dollars per share)

3 years 262 days

$ 8.20

Restricted Stock Units (RSUs) [Member]

1,992

Range of exercise price, lower limit (in dollars per share)

$ 0

Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | shares

872

Options and SARs [Member] | Range 1 [Member]

Range of exercise price, lower limit (in dollars per share)

$ 5.21

Range of exercise price, upper limit (in dollars per share)

$ 7.26

231

3 years 10 days

Outstanding, weighted average exercise price (in dollars per share)

$ 5.89

231

Exercisable, weighted average exercise price (in dollars per share)

3 years 10 days

$ 5.89

Options and SARs [Member] | Range 2 [Member]

Range of exercise price, lower limit (in dollars per share)

7.49

Range of exercise price, upper limit (in dollars per share)

$ 9.71

458

3 years 248 days

Outstanding, weighted average exercise price (in dollars per share)

$ 8.50

451

Exercisable, weighted average exercise price (in dollars per share)

3 years 248 days

$ 8.50

Options and SARs [Member] | Range 3 [Member]

Range of exercise price, lower limit (in dollars per share)

10.15

Range of exercise price, upper limit (in dollars per share)

$ 15.79

431

5 years 346 days

Outstanding, weighted average exercise price (in dollars per share)

$ 11.01

131

Exercisable, weighted average exercise price (in dollars per share)

5 years 10 days

$ 11.22

[1]	Calculation of weighted average remaining contractual term does not include the RSUs that were granted, which have an indefinite contractual term.

XML 97 R82.htm IDEA: XBRL DOCUMENT

Note 12 - Stockholders' Equity - Weighted Average Fair Value Assumptions (Details)

Risk-free interest rate

Pre-vest cancellation rate

Post-vest cancellation rate

4.06%

1.87%

3.95%

Suboptimal exercise factor

3.45%

3.44%

3.86%

^[3]

[1]	The pre-vest cancellation rate was calculated on an annual basis and is presented here on an annual basis.
[2]	The post-vest cancellation rate was calculated on a monthly basis and is presented here on an annual basis.
[3]	The ratio of the stock price to strike price at the time of exercise of the option.

XML 98 R83.htm IDEA: XBRL DOCUMENT

Note 12 - Stockholders' Equity - Non-vested Stock Options, SARs and RSUs (Details) shares in Thousands	12 Months Ended
	Dec. 31, 2017 $ / shares shares
Non-vested (in shares) \| shares	1,019
Non-vested, weighted average grant date fair value (in dollars per share) \| $ / shares	$ 7.69
Granted (in shares) \| shares	744
Granted, weighted average grant date fair value (in dollars per share) \| $ / shares	$ 7.22
Vested (in shares) \| shares	(539)
Vested, weighted average grant date fair value (in dollars per share) \| $ / shares	$ 7.46
Forfeited (in shares) \| shares	(46)
Forfeited, weighted average grant date fair value (in dollars per share) \| $ / shares	$ 7.69
Non-vested (in shares) \| shares	1,179
Non-vested, weighted average grant date fair value (in dollars per share) \| $ / shares	$ 7.50

XML 99 R84.htm IDEA: XBRL DOCUMENT

Note 13 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Operating Leases, Rent Expense	$ 2,308	$ 2,362	$ 2,252
Financial Grants in Support of Research and Development, Royalty Obligation	5.00%
Loss Contingency Accrual	$ 9,388

XML 100 R85.htm IDEA: XBRL DOCUMENT

Note 13 - Commitments and Contingencies - Future Minimum Lease Payments (Details) $ in Thousands	Dec. 31, 2017 USD ($)
2018	$ 2,961
2019	1,524
2020	1,298
2021- and thereafter	9,185
	$ 14,968

XML 101 R86.htm IDEA: XBRL DOCUMENT

Note 14 - Taxes on Income (Details Textual) $ in Thousands, ₪ in Billions		1 Months Ended	12 Months Ended
	Jan. 01, 2018	Dec. 31, 2016 USD ($)	Dec. 31, 2018	Dec. 31, 2017 USD ($)	Dec. 31, 2017 ILS (₪)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent				35.00%	35.00%	35.00%	35.00%
Deferred Tax Assets, Valuation Allowance		$ 7,708		$ 5,998		$ 7,708
Cash and Cash Equivalents, Marketable Securities and Time Deposit				129,200
Unrecognized Tax Benefits		1,023		1,273		1,023	$ 1,711
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued		$ 46		68		$ 46
Domestic Tax Authority [Member]
Operating Loss Carryforwards				17,719
State and Local Jurisdiction [Member]
Operating Loss Carryforwards				$ 2,650
Israel Tax Authority [Member]
Corporate Tax Rate				24.00%	24.00%	25.00%	26.50%
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Amount				$ 41,069
Income Tax, Net, Liabilities				4,563
Operating Loss Carryforwards				$ 12,196
Israel Tax Authority [Member] \| DSP Israel [Member]
Corporate Tax Rate				16.00%	16.00%
Israel Tax Authority [Member] \| Minimum [Member]
Tax Credit Carryforward, Expiration Period				13 years	13 years
Israel Tax Authority [Member] \| Maximum [Member]
Tax Credit Carryforward, Expiration Period				20 years	20 years
Israel Tax Authority [Member] \| Approved Enterprise Investment [Member]
Tax Exemption Period				2 years	2 years
Corporate Tax Rate				10.00%	10.00%
Additional Tax Exemption Period				6 years	6 years
Israel Tax Authority [Member] \| Beneficiary Enterprise [Member]
Tax Exemption Period				4 years	4 years
Corporate Tax Rate				25.00%	25.00%
Additional Tax Exemption Period				8 years	8 years
Israel Tax Authority [Member] \| First, Second, Third, Fourth, Fifth and Sixth Investment Programs [Member] \| Minimum [Member]
Tax Exemption Period				2 years	2 years
Corporate Tax Rate				10.00%	10.00%
Additional Tax Exemption Period				6 years	6 years
Israel Tax Authority [Member] \| First, Second, Third, Fourth, Fifth and Sixth Investment Programs [Member] \| Maximum [Member]
Tax Exemption Period				4 years	4 years
Corporate Tax Rate				25.00%	25.00%
Additional Tax Exemption Period				8 years	8 years
Israel Tax Authority [Member] \| Seventh and Eighth Investment Programs [Member]
Tax Exemption Period				2 years	2 years
Additional Tax Exemption Period				8 years	8 years
Israel Tax Authority [Member] \| Seventh and Eighth Investment Programs [Member] \| Minimum [Member]
Corporate Tax Rate				10.00%	10.00%
Israel Tax Authority [Member] \| Seventh and Eighth Investment Programs [Member] \| Maximum [Member]
Corporate Tax Rate				25.00%	25.00%
Israel Tax Authority [Member] \| Preferred Enterprises [Member]
Corporate Tax Rate		9.00%		7.50%	7.50%
Israel Tax Authority [Member] \| Technological Preferred Enterprise [Member]
Corporate Tax Rate				12.00%	12.00%
Technological Preferred Enterprise, Maximum, Consolidated Revenues				$ 2,600,000	₪ 10
Tax Rate, Dividends from Technological Enterprises to Foreign Companies				4.00%	4.00%
Investment Held by Foreign Entities [Member]
Cash and Cash Equivalents, Marketable Securities and Time Deposit				$ 118,100
Scenario, Forecast [Member]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent			21.00%
Scenario, Forecast [Member] \| Israel Tax Authority [Member]
Corporate Tax Rate	23.00%

XML 102 R87.htm IDEA: XBRL DOCUMENT

Note 14 - Taxes on Income - Provision for Income Taxes (Details) - USD ($)
$ in Thousands

Current, Federal taxes

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[1]	Includes for 2014 (i) income in the amount of $858 due to reversal of income tax contingency reserves that were determined to be no longer needed due to finalization of a tax assessment of one of the Company’s subsidiaries and (ii) income in the amount of $1,234 due to removal of valuation allowance of tax advances.
[2]	Includes for 2014 income tax benefit in the amount of $827 due to elimination of valuation allowance of deferred tax assets.

Note 14 - Taxes on Income - Income (Loss) Before Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Domestic	$ (4,128)	$ (2,188)	$ (909)
Foreign	1,033	7,595	2,798
Total consolidated income (loss) before taxes	$ (3,095)	$ 5,407	$ 1,889

XML 104 R89.htm IDEA: XBRL DOCUMENT

Note 14 - Taxes on Income - Income Tax Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income (loss) before income tax benefit (expense)	$ (3,095)	$ 5,407	$ 1,889
Theoretical tax expenses (tax benefit) at U.S. statutory tax rate (35%)	(1,083)	1,892	661
State taxes, net of federal benefit	2	3	2
Foreign income taxed at rates other than the U.S. rate (including deferred taxes that were not provided, valuation allowance and current adjustment and interest on uncertain tax position liability)	(808)	(2,580)	(2,209)
Nondeductible equity-based compensation expenses	816	695	1,782
Valuation allowance in U.S.	984	583	91
Other	(2)	1
	$ (92)	$ 594	$ 327

XML 105 R90.htm IDEA: XBRL DOCUMENT

Note 14 - Taxes on Income - Income Tax Reconciliation (Details) (Parentheticals)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
U.S. statutory tax rate	35.00%	35.00%	35.00%

XML 106 R91.htm IDEA: XBRL DOCUMENT

Note 14 - Taxes on Income - Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands

Equity-based compensation

Dec. 31, 2016

Reserves and accruals

$ 1,202

$ 1,322

Carryforward tax losses

Total deferred tax assets

Total deferred tax assets

1,043

918

Acquired intangible assets

565

987

Acquired carryforward tax losses

(141)

(200)

Total deferred tax liabilities, net

$ 424

$ 787

[1]	The amount in 2015 is after a deduction of $200,208 carryforward tax losses of a foreign subsidiary that expired by December 31, 2015.

XML 107 R92.htm IDEA: XBRL DOCUMENT

Note 14 - Taxes on Income - Uncertain Tax Positions (Details) - USD ($)
$ in Thousands

Gross unrecognized tax benefits at January 1

Dec. 31, 2016

$ 1,023

$ 1,711

Increases (decreases) in tax positions for previous years (1)

Increases in tax positions for current year

(268)

(918)

306

396

Increase in tax positions for previous years

131

Change in interest and linkage related to tax positions

(166)

Gross unrecognized tax benefits at December 31

$ 1,273

$ 1,023

[1]	The decrease in 2016 is mainly the result of finalization of an examination that was conducted by the German tax authorities of the Company's German tax returns for 2007 - 2009 and the tax payment that was made following such examination.

XML 108 R93.htm IDEA: XBRL DOCUMENT

Note 15 - Basic and Diluted Loss Per Share - Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Net income (loss)	$ (3,003)	$ 4,813	$ 1,562
Weighted average number of shares of common stock outstanding during the year used to compute basic net earnings (loss) per share (in thousands) (in shares)	22,229	21,800	21,924
Incremental shares attributable to exercise of outstanding options, SARs and RSUs (assuming proceeds would be used to purchase treasury stock) (in thousands) (in shares)		1,087	1,416
Weighted average number of shares of common stock used to compute diluted net earnings (loss) per share (in thousands) (in shares)	22,229	22,887	23,340
Basic net earnings (loss) per share (in dollars per share)	$ (0.14)	$ 0.22	$ 0.07
Diluted net earnings (loss) per share (in dollars per share)	$ (0.14)	$ 0.21	$ 0.07

XML 109 R94.htm IDEA: XBRL DOCUMENT

Note 16 - Segment Information (Details Textual)	12 Months Ended
Note 16 - Segment Information (Details Textual)	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Number of Reportable Segments	3
Product Concentration Risk [Member] \| Sales Revenue, Segment [Member] \| Home [Member] \| Telephony [Member]
Concentration Risk, Percentage	54.00%	57.00%	72.00%
Product Concentration Risk [Member] \| Sales Revenue, Segment [Member] \| Home [Member] \| Gateway [Member]
Concentration Risk, Percentage	9.00%	8.00%	10.00%
Product Concentration Risk [Member] \| Sales Revenue, Segment [Member] \| Office [Member] \| VoIP [Member]
Concentration Risk, Percentage	28.00%	19.00%	15.00%
Product Concentration Risk [Member] \| Sales Revenue, Segment [Member] \| Mobile [Member]
Concentration Risk, Percentage	4.00%	12.00%	0.00%

XML 110 R95.htm IDEA: XBRL DOCUMENT

Note 16 - Segment Information - Selected Operating Results (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenues	$ 124,753	$ 137,869	$ 144,271
Income from operations	4,563	9,564	9,646
Home [Member]
Revenues	85,021	95,388	121,714
Income from operations	16,256	17,715	24,815
Office [Member]
Revenues	34,879	26,590	22,216
Income from operations	9,105	(2,961)	(4,861)
SmartVoice [Member]
Revenues	4,853	15,891	341
Income from operations	$ (20,798)	$ (5,190)	$ (10,308)

XML 111 R96.htm IDEA: XBRL DOCUMENT

Note 16 - Segment Information - Reconciliation of Segment Operating Results (Details) - USD ($)
$ in Thousands

Income from operations

$ 4,563

$ 9,564

$ 9,646

Unallocated corporate, general and administrative expenses*