Note H - Derivative Instruments

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

NOTE

H

—DERIVATIVE INSTRUMENTS

In accordance with FASB ASC

No.

815

“Derivatives and Hedging,” for derivative instruments that are designated and qualify as a cash flow hedge (i.e. hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Any gain or loss on a derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item is recognized in current earnings during the period of change.

As of

June 30, 2019,

the Company had

no

outstanding option and foreign exchange forward contracts.

The fair value of derivative assets and derivative liabilities were both

$0

at

June 30, 2019.

The amount recorded as income in research and development expenses, sales and marketing expenses and general and administrative expenses in the condensed consolidated statements of income for the

six

months ended

June 30, 2019

that resulted from the above referenced hedging transactions was

$83,

$8

and

$14,

respectively.

The fair value of the outstanding derivative instruments at

June 30, 2019

and

December 

31,

2018

is summarized below (unaudited):

		Fair value of derivative instruments
Derivative Assets (Liabilities)	Balance Sheet Location	June 30, 201 9		December 31, 201 8
		Unaudited		Audited
Foreign exchange forward and option contracts	Other accounts receivable and prepaid expenses (other accounts payable)	$	-	$	(3	)

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

three

and

six

months ended

June 30, 2019

and

2018

is summarized below (unaudited):

	Gains ( L osses) on Derivatives Recognized in OCI
	for the three months ended June 30,					for the six months ended June 30,
	Unaudited
	2019		2018			2019		2018
Foreign exchange forward and option contracts	$	3	$	(29	)	$	108	$	(29	)

	Gains (Loss es) Reclassified from OCI into I ncome
		for the three months ended June 30					for the six months ended June 30,
		Unaudited
	Location	201 9		2018			201 9		2018
Foreign exchange forward and option contracts	Operating expenses	$	23	$	(9	)	$	105	$	(9	)