Note H - Derivative Instruments

9 Months Ended

Sep. 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

September 30, 2019,

the Company had

no

outstanding option or foreign exchange forward contracts.

The fair value of derivative assets and derivative liabilities were both

$0

at

September 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

nine

months ended

September 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

September 30, 2019

and

December 

31,

2018

is summarized below (unaudited):

		Fair value of derivative instruments
Derivative Assets (Liabilities)	Balance Sheet Location	September 30, 2019		December 31, 2018
		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

nine

months ended

September 30, 2019

and

2018

is summarized below (unaudited):

		Gains (Losses) on Derivatives Recognized in OCI
		for the three months ended September 30,				for the nine months ended September 30,
				Unaudited
		2019		2018		2019		2018
Foreign exchange forward and option contracts	$	-	$	13	$	108	$	(16)

	Gains (Losses) Reclassified from OCI into Income
			for the three months ended September 30				for the nine months ended September 30,
					Unaudited
	Location		2019		2018		2019		2018
Foreign exchange forward and option contracts	Operating expenses	$	-	$	(7)	$	105	$	(16)