INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

INCOME TAXES [Abstract]

Schedule of Deferred Tax Assets (Liabilities)

Components of the Company's deferred tax assets (liabilities) are as follows:

	December 31,
	2011			2012
Deferred tax assets:
Net operating loss carry forwards	$	6,821		$	7,800
Other		331			500
Deferred tax assets, before valuation allowance		7,152			8,300
Valuation allowance		(4,113	)		(6,254	)
Total deferred tax assets, net of valuation allowance		3,039			2,046
Deferred tax liabilities:
Intangible assets		(2,281	)		(5,248	)
Deferred revenues		(427	)		-
Capitalized software development costs		(85	)		(148	)
Total deferred tax liabilities		(2,793	)		(5,396	)
Deferred tax asset (liability), net	$	246		$	(3,350	)

Domestic:
	December 31,
	2011			2012
Current deferred tax asset, net	$	258		$	360
Current deferred tax liability		-			(971	)
Non-current deferred tax asset, net		-			140
Long-term deferred tax liability		(12	)		(2,879	)
	$	246		$	(3,350	)

Schedule of the Reconciliation of the Effective Tax Rate

Reconciliation of the Company's effective tax rate to the statutory tax rate in Israel

	Year ended December 31,
	2010			2011			2012
Income before taxes on income	$	11,621		$	5,840		$	6,007
Statutory tax rate in Israel		25	%		24	%		25	%
Theoretical income tax expense	$	2,905		$	1,402		$	1,502
Increase (decrease) in tax expenses resulting from:
"Preferred Enterprise" benefits (*)		-			(1,751	)		(1,369	)
Non-deductible expenses		230			78			757
Previous years taxes		-			(156	)		-
Tax on previously distributed dividend from tax-exampt income		-			-			812
Loss and timing differences for which no deferred taxes were recorded		-			994			1,009
Tax adjustment in respect of different tax rate of foreign subsidiary		-			(400	)		(151	)
Other		97			5			(87	)
Taxes on income	$	3,232		$	172		$	2,473

(*) Benefit per Ordinary share, resulting from " Preferred Enterprise " status:
Basic	$	-	$	0.18	$	0.13
Diluted	$	-	$	0.18	$	0.13

Schedule of Income Taxes

Income taxes are comprised as follows:

	Year ended December 31,
	2010			2011			2012
Deferred tax benefit	$	(385	)	$	(1,140	)	$	(172	)
Current taxes		3,617			1,312			2,645
	$	3,232		$	172		$	2,473

Schedule of Unrecognized Tax Benefits

Uncertain tax position:

Reconciliation of the beginning and ending balances of unrecognized tax benefits

	December 31,
	2011		2012
Balance at January 1	$	1,388	$	2,151
Additions for prior year tax positions		505		622
Additions in tax positions for current year		258		1,179
Balance at December 31	$	2,151	$	3,952

Schedule of Income (Loss) Before Taxes

Income before taxes on income is comprised as follows:

	Year ended December 31,
	2010		2011			2012
Domestic	$	11,553	$	8,325		$	8,530
Foreign - U.S.A		68		(2,485	)		(2,523	)
	$	11,621	$	5,840		$	6,007