XML 26 R10.htm IDEA: XBRL DOCUMENT v3.19.1
REVENUE
 12 Months Ended
Dec. 31, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Abstract]  
REVENUE
NOTE 3:- REVENUE

The Company adopted ASC 606 effective January 1, 2018 using the modified retrospective method, applied to those contracts which were not substantially completed as of January 1, 2018. Such method provides that the cumulative effect from prior periods upon applying the new guidance be recognized in the consolidated balance sheets as of January 1, 2018, including an adjustment to accumulated deficit. A summary of such cumulative effect adjustment is as follows:

   
Cumulative effect adjustment as of January 1, 2018
  
Increase in trade receivables, net
  
$
2,327
  
Increase in deferred commission costs
    
4,526
  
Decrease in deferred taxes, net
    
765
  
Decrease in deferred revenue
    
539
  
Decrease in accumulated deficit
  
$
6,627
  
 
Changes in accounting policies as a result of adopting ASC 606

The impact of the Company's adoption of ASC 606 primarily relates to the timing of revenue recognition from its term-based license agreements. Prior to the adoption of ASC 606, the Company recognized revenue from these agreements ratably over the license term. Under ASC 606, revenue allocable to the license portion of the arrangement is recognized upon delivery of the license. In addition, under ASC 606 the Company capitalizes certain incremental costs of obtaining a contract, while prior to the adoption of ASC 606, the Company expensed all contract costs as incurred.

Financial statements impact of adopting ASC 606

The following table discloses the impact of the adoption of ASC 606 on the Company’s consolidated statements of operations and balance sheets:
 
   
Year ended December 31, 2018
  
   
As reported
    
Under
previous standard
    
Effect of change
higher (lower)
  
Revenues:
                  
Software licenses
  
$
52,542
    
$
34,181
    
$
18,361
  
Maintenance and services 
    
33,707
      
33,394
      
313
  
Total revenues
    
86,249
      
67,575
      
18,674
  
                         
Operating expenses:
                        
Cost of software licenses
    
891
      
891
      
-
  
Cost of maintenance and services
    
9,852
      
10,035
      
(183
)
Research and development
    
16,901
      
16,901
      
-
  
Selling and marketing
    
44,431
      
48,133
      
(3,702
)
General and administrative
    
6,629
      
6,629
      
-
  
Total operating expenses
    
78,704
      
82,589
      
(3,885
)
                         
Operating income (loss)
    
7,545
      
(15,014
)
    
22,560
  
                         
Financial income, net
    
336
      
336
      
-
  
                         
Income (loss) before income taxes
    
7,881
      
(14,678
)
    
22,559
  
                         
Taxes on income
    
(1,924
)
    
(1,337
)
    
(587
)
                         
Net income (loss)
  
$
5,957
    
$
(16,015
)
  
$
21,972
  
Basic  net income (loss) per share
  
$
0.28
    
$
(0.76
)
  
$
(1.04
)
Diluted net income (loss) per share
    
0.27
      
(0.73
)
    
(1.00
)
 
   
December 31, 2018
  
   
As reported
    
Under previous
 standard
    
Effect of change
higher (lower)
  
Assets:
                  
Trade receivables, net
  
$
19,742
    
$
13,622
    
$
6,120
  
Deferred commission cost
    
8,334
      
-
      
8,334
  
Liabilities:
                        
Deferred revenue
    
17,188
      
32,685
      
(15,497
)
Deferred taxes, net
    
350
      
(1,002
)
    
1,352
  
Shareholders’ Equity:
                        
Accumulated deficit
  
$
112,045
    
$
140,644
    
$
(28,599
)