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Document and Entity Information	12 Months Ended
Document and Entity Information	Dec. 31, 2017 shares
Document and Entity Information [Abstract]
Entity Registrant Name	Kornit Digital Ltd.
Entity Central Index Key	0001625791
Trading Symbol	KRNT
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	20-F
Document Period End Date	Dec. 31, 2017
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2017
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding	34,124,223

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
CURRENT ASSETS:
Cash and cash equivalents	$ 18,629	$ 22,789
Short-term bank deposits	4,500
Marketable securities	5,537	16,500
Trade receivables, net	23,245	31,638
Inventories	34,855	24,122
Other accounts receivable and prepaid expenses	2,661	3,735
Total current assets	89,427	98,784
LONG-TERM ASSETS:
Marketable securities	68,835	21,724
Deposits and prepaid expenses	627	607
Severance pay fund	523	768
Deferred tax asset	564	439
Property and equipment, net	11,230	9,247
Intangible assets, net	2,076	3,385
Goodwill	5,092	5,092
Total long-term assets	88,947	41,262
Total assets	178,374	140,046
CURRENT LIABILITIES:
Trade payables	12,439	16,433
Employees and payroll accruals	6,338	5,918
Deferred revenues and advances from customers	1,697	1,679
Other payables and accrued expenses	5,046	6,103
Total current liabilities	25,520	30,133
LONG TERM LIABILITIES:
Accrued severance pay	1,232	1,269
Payment obligation related to acquisition	334	1,070
Other long-term liabilities	589	386
Total long-term liabilities	2,155	2,725
SHAREHOLDERS' EQUITY:
Ordinary shares of NIS 0.01 par value - Authorized: 200,000,000 shares at December 31, 2016 and 2017, respectively; Issued and Outstanding: 30,989,873 shares and 34,124,223 shares at December 31, 2016 and 2017, respectively	86	78
Additional paid in capital	140,170	94,966
Accumulated other comprehensive income (loss)	301	(82)
Retained earnings	10,142	12,226
Total shareholders' equity	150,699	107,188
Total liabilities and shareholders' equity	$ 178,374	$ 140,046

Consolidated Balance Sheets (Parenthetical) - ₪ / shares	Dec. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Ordinary shares, par value	₪ 0.01	₪ 0.01
Ordinary shares, shares authorized	200,000,000	200,000,000
Ordinary shares, shares issued	34,124,223	30,989,873
Ordinary shares, shares outstanding	34,124,223	30,989,873

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenues
Products	$ 101,953	$ 100,818	$ 79,751
Services	12,135	7,876	6,654
Total revenues	114,088	108,694	86,405
Cost of revenues
Products	46,480	46,483	35,632
Services	13,497	12,801	10,188
Total cost of revenues	59,977	59,284	45,820
Gross profit	54,111	49,410	40,585
Operating expenses:
Research and development	20,834	17,383	11,950
Selling and marketing	21,279	18,338	13,367
General and administrative	13,578	12,259	9,500
Restructuring	503
Total operating expenses	56,194	47,980	34,817
Operating income (loss)	(2,083)	1,430	5,768
Finance income (expenses), net	452	46	(334)
Income (loss) before taxes on income	(1,631)	1,476	5,434
Taxes on income	384	648	709
Net income (loss)	$ (2,015)	$ 828	$ 4,725
Basic net earnings (loss) per share	$ (0.06)	$ 0.03	$ 0.19
Diluted net earnings (loss) per share	$ (0.06)	$ 0.03	$ 0.18

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (2,015)	$ 828	$ 4,725
Change in unrealized gains(losses) on marketable securities:
Unrealized gains (losses) arising during the period	104	133	(227)
Gains reclassified into net income (loss)	(34)	(6)
Net change	70	127	(227)
Change in unrealized gains (losses) on cash flow hedges:
Unrealized gains arising during the period	436	97	5
Gains reclassified into net income (loss)	(394)	(66)	(33)
Net change	42	31	(28)
Foreign currency translation adjustment	271	43	118
Total other comprehensive income (loss)	383	201	(137)
Comprehensive income (loss)	$ (1,632)	$ 1,029	$ 4,588

Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Preferred A-1 shares	Ordinary shares	Additional paid in capital	Accumulated other comprehensive income (loss)	Retained earnings
Balance at Dec. 31, 2014	$ 19,351	$ 32	$ 22	$ 12,770	$ (146)	$ 6,673
Balance, shares at Dec. 31, 2014		1,927,140	8,973,224
Conversion of preferred shares		$ (32)	$ 32
Conversion of preferred shares, shares		(1,927,140)	12,628,741
Issuance of ordinary shares in a secondary offering, net of issuance costs	73,519		$ 21	73,498
Issuance of ordinary shares in a secondary offering, net of issuance costs, shares			8,165,000
Exercise of options	421		$ 1	420
Exercise of options, shares			528,984
Share-based compensation	2,383			2,383
Warrants to customers
Other comprehensive income/loss	(137)				(137)
Net income (loss)	4,725					4,725
Balance at Dec. 31, 2015	100,262		$ 76	89,071	(283)	11,398
Balance, shares at Dec. 31, 2015			30,295,949
Exercise of options	960		$ 2	958
Exercise of options, shares			693,924
Share-based compensation	2,993			2,993
Tax benefit related to exercise of stock options	71			71
Warrants to customers	1,873			1,873
Other comprehensive income/loss	201				201
Net income (loss)	828					828
Balance at Dec. 31, 2016	107,188		$ 78	94,966	(82)	12,226
Balance, shares at Dec. 31, 2016			30,989,873
Issuance of ordinary shares in a secondary offering, net of issuance costs	35,077		$ 6	35,071
Issuance of ordinary shares in a secondary offering, net of issuance costs, shares			2,300,000
Exercise of options	2,760		$ 2	2,758
Exercise of options, shares			834,350
Share-based compensation	4,411			4,411
Cumulative effect of a change in accounting principle related to stock-based compensation				69		(69)
Warrants to customers	2,895			2,895
Other comprehensive income/loss	383				383
Net income (loss)	(2,015)					(2,015)
Balance at Dec. 31, 2017	$ 150,699		$ 86	$ 140,170	$ 301	$ 10,142
Balance, shares at Dec. 31, 2017			34,124,223

Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Stockholders' Equity [Abstract]
Issuance expenses, net	$ 981		$ 2,415
Issuance expenses warrants, net		$ 157

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net income (loss)	$ (2,015)	$ 828	$ 4,725
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	4,814	2,964	1,782
Warrants to customers	2,895	2,030
Share based compensation	4,411	2,993	2,383
Tax benefit related to exercise of stock options		(71)
Amortization of premium on marketable securities	546	454	(113)
Realized gain on sale of marketable securities	(34)	(6)
Decrease (increase) in trade receivables	9,081	(9,257)	(13,117)
Decrease (increase) in other receivables and prepaid expenses	1,100	(411)	(1,648)
Increase in inventory	(10,629)	(6,061)	(4,610)
Increase in deferred taxes, net	(125)	(181)	(57)
Increase in other long-term assets	(10)	(217)	(68)
Increase (decrease) in trade payables	(3,635)	2,819	7,036
Increase in employees and payroll accruals	360	1,550	1,435
Increase (decrease) in deferred revenues and advances from customers	(31)	675	(820)
Increase (decrease) in other payables and accrued expenses	(461)	1,879	223
Increase (decrease) in accrued severance pay, net	208	180	(2)
Increase in other long-term liabilities	203	386
Loss from sale of property and Equipment	228	9	51
Foreign currency translation gain (loss) on intercompany balances with foreign subsidiaries	(916)	393	590
Net cash provided by (used in) operating activities	5,990	956	(2,210)
Cash flows from investing activities:
Purchase of property and equipment	(5,660)	(5,462)	(1,861)
Proceeds from sale of property and equipment	6		8
Cash paid in connection with acquisition		(9,206)	(1,000)
Proceeds from (investment in) bank deposits, net	(4,500)	22,000	(22,000)
Proceeds from sale marketable securities	39,353	2,086
Proceeds from maturity of marketable securities	7,240	4,500	1,500
Purchase of marketable securities	(83,183)	(11,455)	(35,518)
Net cash provided by (used in) investing activities	(46,744)	2,463	(58,871)
Cash flows from financing activities:
Proceeds from public offering, net of issuance costs	35,077		74,180
Exercise of employee stock options	2,760	958	421
Payment of issuance cost related to warrants		(90)
Tax benefit related to exercise of stock options		71
Payment of contingent consideration	(1,400)
Net cash provided by financing activities	36,437	939	74,601
Foreign currency translation adjustments on cash and cash equivalents	157	(33)	(49)
Increase (decrease) in cash and cash equivalents	(4,317)	4,358	13,520
Cash and cash equivalents at the beginning of the period	22,789	18,464	4,993
Cash and cash equivalents at the end of the period	18,629	22,789	18,464
Supplemental disclosure of cash flow information
Cash paid during the year for income taxes	853	593	1,368
Non-cash investing and financing activities:
Property and equipment acquired by credit	427	808	422
Inventory transferred to be used as property and equipment	397	1,090	692
Property and equipment transferred to be used as inventory			106
Issuance expenses on credit		$ 362

General

12 Months Ended

Dec. 31, 2017

General [Abstract]

GENERAL

NOTE 1:-

GENERAL

Kornit Digital Ltd. (the “Company”) was incorporated in 2002 under the laws of the State of Israel. The Company and its subsidiaries develop, design and market digital printing solutions for the global printed textile industry. The Company’s and its subsidiaries’ solutions are based on their proprietary digital textile printing systems, ink and other consumables, associated software and value-added services.

The Company established wholly-owned subsidiaries in Israel, the United States, Germany, Hong Kong and the United Kingdom. The Company’s subsidiaries are engaged primarily in sales, and marketing, except for the Israeli subsidiary which is engaged primarily in research and development and manufacturing.

On January 31, 2017 the Company closed a follow on and secondary offering where by 8,625,000 ordinary shares were sold in the transaction to the public. The aggregate net proceeds received by the Company from the offering were $35.077, net of underwriting discounts, commissions and offering expenses. Refer to note 10.

On May 15, 2017, the Company made an additional underwritten secondary offering of 4,250,000 ordinary shares by the Company’s major shareholder. The Company did not receive any of the proceeds from the sale of these ordinary shares.

The Company depends on five major suppliers to supply certain components for the production of its products. If one of these suppliers fails to deliver or delays the delivery of the necessary components, the Company will be required to seek alternative sources of supply. A change in these suppliers could result in manufacturing delays, which could cause a possible loss of sales and, consequently, could adversely affect the Company’s results of operations and financial position.

Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

Significant Accounting Policies [Abstract]

SIGNIFICANT ACCOUNTING POLICIES

NOTE 2:-

SIGNIFICANT ACCOUNTING POLICIES

The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”).

Use of estimates:

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. Actual results could differ from those estimates.

On an ongoing basis, the Company’s management evaluates estimates, including those related to intangible assets and goodwill, tax assets and liabilities, fair values of stock-based awards, inventory write-offs, warranty provision, allowance for bad debt and provision for rebates and returns. Such estimates are based on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.

Financial statements in United States dollars:

A majority of the revenues of the Company and its subsidiaries are denominated in U.S. dollars (“dollar” or “dollars”). The dollar is the primary currency of the economic environment in which the Company and its subsidiaries, other than the Company’s German subsidiary, operate. Thus, the functional and reporting currency of the Company and its subsidiaries, other than the Company’s German subsidiary, is the dollar. Accordingly, monetary accounts maintained in currencies other than the dollar are re-measured into U.S. dollars in accordance with Accounting Standards Codification (“ASC”) No. 830 “Foreign Currency Matters”. Changes in currency exchange rates between the Company’s functional currency and the currency in which a transaction is denominated are included in the Company’s results of operations as finance income (expenses), net in the period in which the currency exchange rates change.

For the Company’s subsidiary in Germany whose functional currency is the Euro 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 statements of income have been translated into the dollar using the exchange rate on the respective dates on which those elements are recognized. The resulting translation adjustments are reported as a component of accumulated other comprehensive income in shareholders’ equity.

Principles of consolidation:

The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions including profits from intercompany have been eliminated upon consolidation.

Cash equivalents:

Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less, at acquisition.

Short-term bank deposits:

Short-term bank deposits are deposits with an original maturity of more than three months but less than one year from the date of acquisition.

Marketable securities:

The Company accounts for investments in marketable securities in accordance with ASC 320, “Investments - Debt and Equity Securities”. Management determines the appropriate classification of its investments in debt securities at the time of purchase and re-evaluates such determinations at each balance sheet date.

The Company classifies 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” in shareholders’ equity. Realized gains and losses on sales of marketable securities are included in finance expenses, net and are derived using the specific identification method for determining the cost of securities.

The amortized cost of marketable securities is adjusted for amortization of premium and accretion of discount to maturity, both of which, together with interest, are included in finance expenses, net.

The Company recognizes an impairment charge when a decline in the fair value of its investments in debt securities below the cost basis of such securities is judged to be other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Company’s intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. For securities that are deemed other-than-temporarily impaired (“OTTI”), the amount of impairment is recognized in the statement of operations and is limited to the amount related to credit losses, while impairment related to other factors is recognized in accumulated other comprehensive income (loss). The Company did not recognize any impairment with respect to OTTI on its marketable securities in 2015, 2016 and 2017.

Inventories:

Inventories are measured at the lower of cost or net realizable value. The cost of inventories comprises costs of purchase and costs incurred in bringing the inventories to their present location and condition. Inventory write-down is measured as the difference between the cost of the inventory and net realizable value upon assumptions about future demand, and is charged to the cost of sales.

Cost of inventories is determined as follows:

Raw and packing materials - on the basis of weighted average cost.

Finished goods - on the basis of average costs of materials, and other direct manufacturing cost.

Inventory write offs have been provided to cover risks arising from dead and slow-moving items, technological obsolescence and excess inventories according to revenue forecasts.

During the years ended December 31, 2015, 2016 and 2017, the Company recorded inventory write offs in a total amount of $824, $2,211 and $2,988, respectively.

Property and equipment:

Property and equipment are measured at cost, including directly attributable costs, less accumulated depreciation and accumulated impairment losses. Depreciation is calculated on a straight-line basis over the useful life of the assets at annual rates as follows:

	%
Office furniture and equipment		7 - 20
Computer and peripheral equipment		33
Machinery and equipment		15
Leasehold improvements		*)

Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term (including the extension option held by the Company and intended to be exercised) and the expected life of the improvement.

Goodwill and other intangible assets:

Goodwill reflects the excess of the purchase price of business acquired over the fair value of net assets acquired. Under ASC No. 350, “Intangibles – Goodwill and other” (“ASC No. 350”), goodwill is not amortized but rather is tested for impairment at least annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. In accordance with ASC No. 350, the Company performs an annual impairment test on December 31 of each year.

The Company operates in one operating segment and this segment comprises the only reporting unit. The Company tests goodwill using the two-step process in accordance with ASC No. 350. The first step, identifying a potential impairment, compares the fair value of the reporting unit with its carrying amount. If the carrying amount exceeds its fair value, the second step would need to be performed; otherwise, no further step is required. The second step, measuring the impairment loss, compares the implied fair value of the goodwill with the carrying amount of the goodwill. Any excess of the goodwill carrying amount over the applied fair value is recognized as an impairment loss, and the carrying value of goodwill is written down to fair value. During the years ended December 31, 2015, 2016 and 2017, no impairment of goodwill has been identified.

The intangible assets of the Company are not considered to have an indefinite useful life and are amortized over their useful lives. Customer relationships are amortized over their estimated useful lives in proportion to the economic benefits realized. This accounting policy results in accelerated amortization of such assets as compared to the straight-line method. Acquired technology and non-competition agreements are amortized on a straight-line basis.

Impairment of long lived assets and intangible assets subject to amortization:

Property and equipment and intangible assets subject to amortization are reviewed for impairment in accordance with ASC No. 360, “Accounting for the Impairment or Disposal of Long-Lived Assets,” whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset 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.

During the years ended December 31, 2015, 2016 and 2017, no impairment losses were recorded.

Business combinations:

The Company accounts for business combinations in accordance with ASC No. 805, “Business Combinations” (“ASC No. 805”). ASC No. 805 requires recognition of assets acquired, liabilities assumed, and any non-controlling interest at the acquisition date, measured at their fair values as of that date. Any excess of the fair value of net assets acquired over purchase price and any subsequent changes in estimated contingencies are to be recorded in consolidated statements of income. In addition, changes in valuation allowance related to acquired deferred tax assets and in acquired income tax position are to be recognized in consolidated statements of income.

Acquisition related costs are expensed to the statements of income in the period incurred.

Revenue recognition:

The Company generates revenues from the sale of systems, inks and consumable products and from services to its products. The Company generates revenues from sale of its products directly to end-users and indirectly through independent distributors, all of whom are considered end-users.

Revenues are recognized in accordance with “Revenue Recognition” (“ASC No. 605”), provided that the collection of the resulting receivable is probable, there is persuasive evidence of an arrangement, no significant obligations remain and the price is fixed or determinable.

Revenues from selling these products are recognized upon delivery, provided that all other revenue recognition criteria are met. In respect of sale of systems with installation and training services, the Company considers these services to be not essential to the functionality of the systems. Therefore, the Company recognizes the revenues of the systems upon their delivery in accordance with the agreed-upon delivery terms once all other revenue recognition criteria have been met and the related services are recognized when provided or completed.

The Company considers all arrangements with payment terms extending beyond the standard payment terms not to be fixed or determinable. If the fee is not fixed or determinable, revenue is recognized as payments become due from the customer, provided that all other revenue recognition criteria have been met.

Revenues from service are derived mainly from the sale of print heads, spear parts and sale of service contracts. The Company’s print heads and spear parts revenues are recognized upon delivery, provided that all other revenue recognition criteria are met. The service contracts are recognized ratably, on a straight-line basis, over the period of the service.

Revenues from ink and other consumable products when sold separately are generally recognized upon shipment assuming all other revenue recognition criteria have been met.

Although, in general, the Company does not grant rights of return, there are certain instances where such rights are granted. The Company maintains a provision for returns in accordance with ASC No 605, which is estimated, based primarily on historical experience as well as management judgment, and is recorded as reduction of revenue. Such provision amounted to $346 and $580 as of December 31, 2016 and 2017, respectively.

The Company periodically provides customer incentive programs including product discounts, volume-based rebates and warrants, which are accounted for as reductions to revenue in the period in which the revenue is recognized. These reductions to revenue are made based upon reasonable and reliable estimates that are determined by historical experience and the specific terms and conditions of the incentive.

Deferred revenue includes amounts received from customers for which revenue has not yet been recognized.

In cases where the Company’s customers trade-in old systems as part of sales of new systems, the fair value of the old systems is recorded as inventory, provided that such value can be determined.

Shipping and Handling:

Shipping and handling fees charged to the Company’s customers are recognized as revenue in the period shipped and the related costs for providing these services are recorded as a cost of revenues. Revenues from shipping in the years ended December 31, 2015, 2016 and 2017 were $719, $768 and $1,355, respectively.

Cost of revenues:

Cost of revenues is comprised mainly of cost of systems and ink production, employees’ salaries and related costs, allocated overhead expenses, import taxes and royalties and Shipping and handling fees.

Warranty costs:

The Company typically provides a one-year warranty on the systems including parts and labor. A provision is recorded for estimated warranty costs at the time revenues are recognized based on historical warranty costs and management’s estimates. Factors that affect the Company’s warranty liability include the number of systems, historical rates of warranty claims and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts thereof as necessary.

The followings are the changes in the liability for product warranty from January 1, 2016 to December 31, 2017:

Balance at January 1, 2016	$	940
Provision for warranties issued during the year		2,984
Reduction for payments and costs to satisfy claims		(1,905	)

Balance at December 31, 2016		2,019

Provision for warranties issued during the year		2,807
Reduction for payments and costs to satisfy claims		(3,049	)

Balance at December 31, 2017	$	1,777

Research and development expenses:

Research and development expenses are charged to the statement of income, as incurred.

Restructuring:

Restructuring consists of costs primarily related to early retirement or retention agreements with the employees of our Wisconsin facility in connection with the transition of our U.S headquarter to East Coast in the United States. Restructuring expenses in the year ended December 31, 2017 in the amount of $503. Please refer to note 8.

Accounting for share-based compensation:

The Company accounts for share based compensation in accordance with, “Compensation - Stock Compensation” (“ASC No. 718”) that requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the award is recognized as an expense over the requisite service periods in the Company’s consolidated statement of income.

The Company selected the binomial option pricing model as the most appropriate fair value method for its stock options awards with the following assumptions for the years ended December 31, 2015, 2016 and 2017:

	Year ended December 31,
	2015		2016		2017

Suboptimal exercise multiple		2.0-2.5		1.0-1.5		1.0-1.5
Risk free interest rate		0.2%-2.2%		0.3%-2.2%		2.2%-2.3%
Volatility		50%-55%		54%-56%		51%-53%
Dividend yield		0%		0%		0%

The expected volatility is based on volatility of similar companies whose share prices are publicly available over an historical period equivalent to the option’s expected term. The computation of the suboptimal exercise multiple based on empirical studies, the early exercise factor of public companies is approximately 100% for employees and 150% for managers.

The interest rate for period within the contractual life of the award is based on the U.S. Treasury Bills yield curve in effect at the time of grant. The Company currently has no plans to distribute dividends and intends to retain future earnings to finance the development of its business.

The fair value of each restricted stock unit (“RSU”) is the market value as determined by the closing price of the common share prior to the day of grant.

The Company recognizes compensation expenses for the value of its awards, which have graded vesting based on service conditions, using the straight-line method, over the requisite service period of each of the awards. The Company recognizes forfeitures of awards as they occur.

On January 1, 2017, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2016-09 (Topic 718) Compensation—Stock Compensation: Improvements to Employee Stock-Based Payment Accounting, which simplifies several aspects of the accounting for stock-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, forfeiture, statutory tax withholding requirements, and classification on the statement of cash flows.

The impact of the adoption on the Company’s Consolidated Financial Statements was as follows:

Forfeitures: The Company elected to account for forfeitures as they occur using a modified retrospective transition method, rather than estimating forfeitures, resulting in a cumulative-effect of $69, which decreased the January 1, 2017 opening retained earnings balance on the Consolidated Balance Sheets.

Historically, excess tax benefits or deficiencies from the Company’s equity awards were recorded as additional paid-in capital in its consolidated balance sheets. As a result of adoption, starting January 1, 2017 the Company prospectively recorded any excess tax benefits or deficiencies from its equity awards as part of its provision for income taxes in its consolidated statements of operations in the reporting periods in which equity vesting occurs.

Cash flow presentation of excess tax benefits: The Company is required to classify excess tax benefits along with other income tax cash flows as an operating activity either prospectively or retrospectively. The Company elected to apply the change in presentation to the statements of cash flows prospectively from January 1, 2017. Prior periods have not been adjusted.

Derivatives and hedging:

The Company accounts for derivatives and hedging based on ASC No. 815, “Derivatives and Hedging” (“ASC No. 815”). ASC No. 815 requires the Company to recognize all derivatives on the balance sheet at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship.

According to ASC No. 815, for derivative instruments that are designated and qualify as hedging instruments, the Company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. If the derivatives meet the definition of a hedge and are so designated, depending on the nature of the hedge, changes in the fair value of such derivatives will either be offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings, or recognized in accumulated other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative’s change in fair value is recognized in earnings.

Starting 2015, the Company entered into forward and option contracts to hedge against the risk of overall changes in future cash flow from payments of payroll and related expenses denominated in New Israeli Shekels (“NIS”). As of December 31, 2016 and 2017, the fair value of the Company’s outstanding forward and option contracts amounted to $3 and $45 which is included within other payables and accrued expenses, respectively on the balance sheets.

The Company measured the fair value of these contracts in accordance with ASC No. 820, “Fair Value Measurements and Disclosures” (“ASC No. 820”), and they were classified as level 2 of the fair value hierarchy.

As of December 31, 2016 and December 31, 2017, the Company had outstanding hedging contracts in the notional amount of $8,636 and $3,651, respectively.

Advertising:

Advertising costs are charged to operations as incurred and were $283, $526 and $612 for the years ended December 31, 2015, 2016 and 2017, respectively.

Income taxes:

The Company accounts for income taxes and uncertain tax positions in accordance with ASC No. 740, “Income Taxes” (“ASC No. 740”). ASC No. 740 prescribes the use of the liability method, whereby deferred tax asset and liability account balances are determined based on temporary differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws 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 amounts more likely than not to be realized. Deferred tax assets and liabilities are classified to non-current assets and liabilities, respectively.

ASC No. 740 contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not 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 second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company accrues interest and penalties related to unrecognized tax benefits on its taxes on income.

Concentrations of credit risks:

Financial instruments that potentially subject the Company and its subsidiaries to concentrations of credit risk consist principally of cash and cash equivalents, bank deposits, marketable securities, foreign exchange contracts and trade receivables.

The majority of the Company’s and its subsidiaries’ cash and cash equivalents, bank deposits and marketable securities are invested in major banks in Israel and the U.S. Generally, these cash equivalents may be redeemed upon demand and, therefore management believes that it bears a lower risk.

The Company attempts to limit its exposure to interest rate risk by investing in securities with maturities of less than three years; however, the Company may be unable to successfully limit its risk to interest rate fluctuations. At any time, a sharp rise in interest rates could have a material adverse impact on the fair value of its investment portfolio. Conversely, declines in interest rates could have a material favorable impact on the fair value of its investment portfolio. Increases or decreases in interest rates could have a material impact on interest earnings related to new investments during the period.

The trade receivables of the Company and its subsidiaries are mainly derived from sales to customers located in the United States, Europe, the Middle East, Africa and Asia Pacific. The Company performs ongoing credit evaluations of its customers. In certain circumstances, the Company may require from its customers letters of credit, other collateral or additional guarantees. An allowance for doubtful accounts is determined with respect to those amounts that the Company has determined to be doubtful of collection.

Historically, the Company has not recorded allowance for doubtful accounts, however certain immaterial bad debt expenses amounted to $21, $216 and $97 was recorded for the years ended December 31, 2015, 2016 and 2017 respectively.

Severance pay:

The Company’s employees in Israel have subscribed to Section 14 of Israel’s Severance Pay Law, 5723-1963 (“Section 14”). Pursuant to Section 14, the Company’s employees, covered by this section, are entitled only to monthly deposits, at a rate of 8.33% of their monthly salary, made on their behalf by the Company. Payments in accordance with Section 14 release the Company from any future the severance liabilities in respect of those employees. Neither severance pay liability nor severance pay fund under Section 14 for such employees is recorded on the Company’s balance sheet.

With regards to employees in Israel that are not subject to Section 14, the Company’s liability for severance pay is calculated pursuant to the Severance Pay Law, based on the most recent salary of the relevant employees multiplied by the number of years of employment as of the balance sheet date. These employees are entitled to one-month salary for each year of employment or a portion thereof. The Company’s liability for these employees is fully provided for via monthly deposits with severance pay funds, insurance policies and an accrual. The value of these deposits is recorded as an asset with other assets on the Company’s balance sheet.

The deposited funds include profits accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to the Severance Pay Law or labor agreements.

Severance pay expenses for the years ended December 31, 2015, 2016 and 2017 were $1,354, $1,590 and $2,088 respectively.

Fair value of financial instruments:

The Company applies ASC No. 820 Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date.

In determining fair value, the Company uses various valuation approaches. ASC No. 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

The hierarchy is broken down into three levels based on the inputs as follows:

	Level 1 -	Valuations based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date.

	Level 2 -	Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

	Level 3 -	Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

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.

The carrying amount of cash, cash equivalents, short term bank deposits, trade receivables, other accounts receivable, trade payables and other accounts payable and accrued expenses approximates their fair value due to the short-term maturities of such instruments.

The Company measures its marketable securities and foreign currency derivative instruments at fair value. Marketable securities and foreign currency derivative instruments are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments.

The contingent payment related to the SPSI acquisition is classified within Level 3 as it is based on significant inputs not observable in the market.

Comprehensive income:

The Company accounts for comprehensive income in accordance with FASB ASC No. 220, “Comprehensive Income.” Comprehensive income generally represents all changes in shareholders’ equity during the period except those resulting from investments by, or distributions to, shareholders. 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 and unrealized gain and losses from foreign currency translation adjustments.

Basic and diluted net income per share:

Basic net income per share is computed based on the weighted average number of ordinary shares outstanding during each period. Diluted net income per share is computed based on the weighted average number of ordinary shares outstanding during each period, plus dilutive potential ordinary shares considered outstanding during the period, in accordance with ASC No. 260, “Earnings Per Share”.

For the year ended December 31, 2017, all outstanding options and RSU’s have been excluded from the calculation of the diluted earnings per share since their effect was anti-dilutive. The total number of shares related to the outstanding options and RSU’s excluded from the calculation of diluted net earnings per share due to their anti-dilutive effect was 762,152 and 1,498,503 for the years ended December 31, 2015 and 2016, respectively.

aa.

Impact of recently issued accounting standard:

In May 2014, and in following related amendments, the FASB issued a new comprehensive revenue recognition guidance on revenue from contracts with customers (hereinafter “the Standard”) that will supersede the current revenue recognition guidance. The Standard provides a unified model (five-step analysis of transactions) to determine when and how revenue is recognized. The core principle of the Standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Under the new standard, a good or service is transferred to the customer when (or as) the customer obtains control of the good or service, which differs from the risk and rewards approach under current guidance. Other major provisions include capitalization of certain contract costs, consideration of the time value of money in the transaction price and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The Standard is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. This Standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized in retained earnings as of the date of adoption.

The Company will adopt the Standard using the modified retrospective approach in the first quarter of fiscal 2018. The Company has completed its evaluation of the Standard and does not expect a material change in its pattern of revenue recognition.

In February 2016, the FASB issued ASU 2016-02, “Leases” (Topic 842), whereby, lessees will be required to recognize for all leases at the commencement date a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. A modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements must be applied. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Companies may not apply a full retrospective transition approach. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018. Early application is permitted. The Company is evaluating the potential impact of this pronouncement.

In June 2016, the FASB issued Accounting Standards Update No. 2016-13 (ASU 2016-13) “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019. The Company is evaluating the potential impact of this pronouncement.

In October 2016, the FASB issued Accounting Standards Update No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers Other than Inventory (ASU 2016-16), which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. This ASU will be effective for annual and interim reporting periods beginning after December 15, 2017 and is to be applied on a modified retrospective basis. The adoption of this standard will not have a material impact on the Consolidated Financial Statements.

In January 2017, the FASB issued Accounting Standards Update No. 2017-04 (ASU 2017-04) “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” ASU 2017-04 eliminates step two of the goodwill impairment test and specifies that goodwill impairment should be measured by comparing the fair value of a reporting unit with its carrying amount. Additionally, the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets should be disclosed. ASU 2017-04 is effective for annual or interim goodwill impairment tests performed in fiscal years beginning after December 15, 2019; early adoption is permitted. The Company does not expect that this new guidance will have a material impact on the Company’s Consolidated Financial Statements.

In January 2017, the FASB issued Accounting Standards Update No. 2017-01 (ASU 2017-01) “Business Combinations (Topic 805): Clarifying the Definition of a Business.” ASU 2017-01 provides guidance to evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. If substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single asset or a group of similar assets, the assets acquired (or disposed of) are not considered a business. The guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those periods. The Company expects no material impact on its consolidated financial statements.

In August 2017, the FASB issued ASU No. 2017-12 (Topic 815) Derivatives and Hedging — Targeted Improvements to Accounting for Hedging Activities, which expands an entity’s ability to hedge financial and nonfinancial risk components and amends how companies assess effectiveness as well as changes the presentation and disclosure requirements. The new standard is to be applied on a modified retrospective basis and is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of adoption on the Consolidated Financial Statements.

Acquisition

12 Months Ended

Dec. 31, 2017

Acquisition [Abstract]

ACQUISITION

NOTE 3:-

ACQUISITION

On July 1, 2016 (the “Closing Date”), the Company, through its wholly owned subsidiary Kornit Digital North America Inc., acquired the digital direct to garment printing assets of SPSI Inc., a North American distributor and service provider for graphic arts, printing and garment decoration solutions. Under the related acquisition agreement, the total consideration of $11,443 is composed as follows:

$9,206 in cash paid on the Closing Date, of which $741 was held in escrow for twelve to eighteen months following the Closing Date.

Milestone-based contingent payments in a total of up to $2,700 payable in 2016, 2017 and 2018. The milestone-based contingent payments are subject to the acquired business territory meeting revenues targets in 2016, 2017 and 2018 as described at the asset purchase agreement. These milestone-based contingent payments were measured at fair value at the Closing Date and recorded as a liability on the balance sheet in the amount of $2,237 ($2,470 and $1,234 as of December 31, 2016 and 2017, respectively).

In addition, the Company incurred acquisition-related costs in a total amount of $493, which are included in general and administrative expenses. Acquisition-related costs include legal, accounting, consulting fees and other external costs directly related to the acquisition.

Fair Value Measurements

12 Months Ended

Dec. 31, 2017

Fair Value Measurements [Abstract]

FAIR VALUE MEASUREMENTS

NOTE 4:-

FAIR VALUE MEASUREMENTS

The following is a summary of marketable securities:

	December 31, 2017
	Amortized cost		Gross unrealized gain		Gross unrealized loss			Fair value

Matures within one year:
Corporate debentures	$	5,190	$	41	$	-		$	5,231
Government debentures		295		11		-			306
		5,485		52		-			5,537

Matures after one year through three years:
Corporate debentures		56,514		-		(65	)		56,449
Government debentures		12,403		-		(17	)		12,386
		68,917		-		(82	)		68,835

Total	$	74,402	$	52	$	(82	)	$	74,372

	December 31, 2016
	Amortized cost		Gross unrealized gain		Gross unrealized loss			Fair value

Matures within one year:
Corporate debentures	$	16,526	$	2	$	(28	)	$	16,500

Matures after one year through three years:
Corporate debentures		21,798		5		(79	)		21,724

Total	$	38,324	$	7	$	(107	)	$	38,224

All investments with an unrealized loss as of December 31, 2017 are with continuous unrealized losses for less than 12 months.

The below table sets forth the Company’s assets and liabilities that were measured at fair value as of December 31, 2017 and December 31, 2016 by level within the fair value hierarchy.

	December 31, 2017
	Level 1		Level 2		Level 3		Total
Assets:
Marketable securities	$	-	$	74,372	$	-	$	74,372
Foreign currency derivative contracts		-		45		-		45

Total financial assets	$	-	$	74,417	$	-	$	74,417

Liabilities:
Payment obligation related to acquisition	$	-	$	-	$	334	$	334

Total liabilities	$	-	$	-	$	334	$	334

	December 31, 2016
	Level 1		Level 2		Level 3		Total
Assets:
Marketable securities	$	-	$	38,224	$	-	$	38,224
Foreign currency derivative contracts		-		3		-		3

Total financial assets	$	-	$	38,227	$	-	$	38,227

Liabilities:
Payment obligation related to acquisition	$	-	$	-	$	1,070	$	1,070

Total liabilities	$	-	$	-	$	1,070	$	1,070

The following table set forth the change of fair value measurements that are categorized within Level 3:

Total fair value as of January 1, 2017	$	1,070
Settlement of payment obligation *)		(900	)
Accretion of payment obligation		164

Total fair value as of December 31, 2017	$	334

$900 is included within other payables and accrued expenses on the balance sheet as the set milestone was met as of December 31, 2017.

The fair value of the payment obligation related to acquisition was estimated based on several factors of which the most significant is the Company’s revenue projections. The Company used a Monte Carlo Simulation of the triangular model with a discount rate of 15%. Payment obligations related to acquisition are revalued to current fair value at each reporting date. Any change in the fair value as a result of time passage is recognized in the financial expenses; any other changes in significant inputs such as the discount rate, the discount period or other factors used in the calculation, is recognized in operating expenses in the consolidated results of operations in the period the estimated fair value changes. Payment obligation related to acquisition will continue to be accounted for and measured at fair value until the contingencies are settled during fiscal year 2018. Accretion of the payment obligation related to acquisition is included in financial expenses, net.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Inventories

12 Months Ended

Dec. 31, 2017

Inventories [Abstract]

INVENTORIES

NOTE 5:-

INVENTORIES

	December 31,
	2016		2017

Raw materials and components	$	12,322	$	15,756
Finished products (*)		11,800		19,099

	$	24,122	$	34,855

(*)

Including amounts of $705 and $34 for the years ended December 31, 2016 and 2017, respectively, with respect to inventory delivered to customers for which revenue was not yet recognized.

Property and Equipment, Net

12 Months Ended

Dec. 31, 2017

Property and Equipment, Net [Abstract]

PROPERTY AND EQUIPMENT, NET

NOTE 6:-

PROPERTY AND EQUIPMENT, NET

	December 31,
	2016			2017
Cost:

Computer and peripheral equipment	$	1,935		$	2,616
Office furniture and equipment		1,332			1,497
Machinery and equipment		8,962			11,098
Leasehold improvements		4,978			7,022

		17,207			22,233

Accumulated depreciation		(7,960	)		(11,003	)

Property and equipment, net	$	9,247		$	11,230

Depreciation expenses for the years ended December 31, 2015, 2016 and 2017 were $1,560, $2,447 and $3,505 respectively.

During the years ended December 31, 2015, 2016 and 2017, the Company recorded a reduction of $166, $297 and $298, respectively to the cost and accumulated depreciation of fully depreciated equipment no longer used.

Intangible Assets, Net

12 Months Ended

Dec. 31, 2017

Intangible Assets, Net [Abstract]

INTANGIBLE ASSETS, NET

NOTE 7:-

INTANGIBLE ASSETS, NET

Intangible assets are comprised of the following:

	Weighted average amortization period		December 31,
	Years		2016		2017

Original amount:
Acquired technology		8.14	$	1,566	$	1,566
Customer relationships		5		2,614		2,614
Non-competition agreement		4		265		265

			$	4,445	$	4,445
Accumulated amortization:
Acquired technology				766		866
Customer relationships				261		1,404
Non-competition agreement				33		99

				1,060		2,369

Intangible assets, net			$	3,385	$	2,076

Amortization expenses for the years ended December 31, 2015, 2016 and 2017 were $222, $519 and $1,309, respectively.

Future amortization expenses for the years ending:

December 31,

2018	$	1,065
2019		432
2020		136
2021		143
2022 and Thereafter		300

	$	2,076

Other Payables and Accrued Expenses

12 Months Ended

Dec. 31, 2017

Other Payables and Accrued Expenses [Abstract]

OTHER PAYABLES AND ACCRUED EXPENSES

NOTE 8:-

OTHER PAYABLES AND ACCRUED EXPENSES

	December 31,
	2016		2017

Government authorities	$	993	$	867
Warranty provision short term		1,741		1,680
Professional services		693		470
Payment obligation related to acquisition		1,400		900
Restructuring		-		503
Accrued expenses		1,276		626

	$	6,103	$	5,046

Commitments and Contingent Liabilities

12 Months Ended

Dec. 31, 2017

Commitments and Contingent Liabilities [Abstract]

COMMITMENTS AND CONTINGENT LIABILITIES

NOTE 9:-

COMMITMENTS AND CONTINGENT LIABILITIES

Lease commitments:

The Company leases facilities and vehicles under operating leases that expire on various dates through 2025. Aggregate minimum lease and rental payments under non-cancelable operating leases as of December 31, 2017, are (in the aggregate) and for each succeeding fiscal year below:

December 31,

2018	$	2,504
2019		2,494
2020		2,465
2021		2,195
2022 and thereafter		6,982

	$	16,640

Total rent expenses for the years ended December 31, 2015, 2016 and 2017 were $1,443, $1,664 and $2,963, respectively.

Charges:

As of December 31, 2017, the Company has two lines of credit with Israeli banks for total borrowings of up to $3 million, all of which was undrawn as of December 31, 2017. These lines of credit are unsecured and available subject to the Company’s maintenance of a 30% ratio of total tangible shareholders’ equity to total tangible assets and that the total credit use will be less than 70% of the Company and its subsidiaries’ receivables. Interest rates across these credit lines varied from 0.2% to 2.3% as of December 31, 2017.

As of December 31, 2017, The Company is in compliance with the financial covenants.

Purchase commitments:

As of December 31, 2017, the Company has $16,475 of purchase commitments for goods and services from vendors.

Litigation:

From time to time, the Company is party to various legal proceedings, claims and litigation that arise in the normal course of business. It is the opinion of management that the ultimate outcome of these matters will not have a material adverse effect on the Company’s financial position, results of operations or cash flows.

Royalty Commitments:

Under the Company’s agreement for purchasing print heads and other products, which was amended and restated in 2016, the Company is obligated to pay royalties at a rate set forth in the agreement up to an agreed maximum amount of $625 per year.

Royalties expenses for the years ended December 31, 2015, 2016 and 2017 were $625.

Guarantees:

As of December 31, 2017, the Company provided two bank guarantees of $398 in the aggregate for its rented facilities.

Shareholders' Equity

12 Months Ended

Dec. 31, 2017

Shareholders' Equity [Abstract]

SHAREHOLDERS' EQUITY

NOTE 10:-

SHAREHOLDERS’ EQUITY

Company’s shares:

Ordinary shares:

Any ordinary share confers equal rights to dividends and bonus shares, and to participate in the distribution of surplus assets upon liquidation in proportion to the par value of each share regardless of any premium paid thereon, all subject to the provisions of the Company’s articles of association. Each ordinary share confers its holder the right to participate in the general meeting of the Company and one vote in the voting.

Initial Public Offering:

On April 8, 2015, the Company closed its initial public offering (“IPO”) whereby 8,165,000 ordinary shares were sold by the Company to the public (inclusive of 1,065,000 ordinary shares pursuant to the full exercise of an overallotment option granted to the underwriters). The aggregate net proceeds received by the Company from the offering were $73,519, net of underwriting discounts and commissions and offering expenses all of which have already been paid by the Company. Upon the closing of the IPO, all of the Company’s outstanding preferred shares automatically converted into 12,628,741 ordinary shares.

On January 31, 2017 the Company closed a follow on and secondary offering where by 8,625,000 ordinary shares were sold in the transaction to the public of which 2,300,000 were issued by the Company and 6,325,000 were sold by the selling shareholders (inclusive of 1,125,000 ordinary shares pursuant to the full exercise of an overallotment option granted to the underwriters). The aggregate net proceeds received by the Company from the offering were $35,077, net of underwriting discounts, commissions and offering expenses.

Share option and RSU’s plans:

A summary of the Company’s share option activity and related information is as follows:

	Number of shares upon exercise			Weighted average exercise price		Weighted- average remaining contractual term (in years)		Aggregate intrinsic value

Outstanding at beginning of year		2,733,166		$	7.01	$	7.78	$	16,054
Granted		663,983			17.13		9.26		167
Exercised		(834,350	)		3.46		5.27
Forfeited		(202,152	)		11.18		8.10

Outstanding at end of year		2,360,647		$	10.76	$	8.05	$	13,588

Exercisable at end of year		887,913		$	7.45	$	7.04	$	7,726

As of December 31, 2017, $11,177 in unrecognized compensation cost related to share options is expected to be recognized over a weighted average vesting period of 3 years.

The weighted average fair value of options granted during the years ended December 31, 2015, 2016 and 2017 were $7.11, $5.64 and $9.24 per share, respectively. The weighted average fair value of options vested during the year ended December 31, 2017 was $5.53. The total intrinsic value of options exercised during the years ended December 31, 2015, 2016 and 2017 were $5,281, $7,822 and $10,588, respectively.

The options outstanding as of December 31, 2017, have been classified by exercise price, as follows:

	Options outstanding at December 31, 2017						Options exercisable at December 31, 2017
Exercise price	Number outstanding		Weighted average exercise price		Weighted average remaining contractual life		Number outstanding		Weighted average exercise price		Weighted average remaining contractual life
$			$		In years				$		In years

0.36-0.92		41,734		0.73		0.97		41,734		0.73		0.97
1.14-1.60		21,299		1.60		6.01		21,299		1.6		6.01
2.07-2.17		473,688		2.14		6.48		319,266		2.15		6.46
9.38-9.49		145,000		9.47		8.68		46,875		9.47		8.42
9.97-10.10		616,783		10.04		8.15		238,193		10.03		7.95
11.49-11.90		66,000		11.86		8.80		17,625		11.84		8.76
12.97-15.29		479,811		14.19		8.17		202,921		13.91		7.73
15.80-21.15		516,332		17.74		9.64		-		-		-

		2,360,647						887,913

A summary of the Company’s RSUs activity is as follows:

	Year ended December 31,
	2017

Outstanding at beginning of year		-
Granted		94,570
Vested		-
Forfeited		(5,811	)
Outstanding as of December 31,		88,759

The weighted average fair values at grant date of RSUs granted for the year ended December 31, 2017 was $ 17.77.

The Company’s Board of Directors approved Equity Incentive Plans pursuant to which the Company is authorized to issue to employees, directors and officers of the Company and its subsidiaries (the “optionees”) options to purchase ordinary shares of NIS 0.01 par value each, at an exercise price equal to at least the fair market value of the ordinary shares at the date of grant. Under the plans, options granted before 2014 generally vest in portions as follows: 50% of total options are exercisable two years after the date determined for each optionee, a further 25% three years after the date determined for each optionee and a 25% four years after the date determined for each optionee. Starting 2014, 25% of total options are exercisable one year after the date determined for each optionee and a further 6.25% at the end of each subsequent three-month period for 3 years. Under the Equity Incentive Plans and starting 2017, the Company grants Restricted Stock Units (“RSUs”). The RSU’s generally vest over a period of four years of employment. Options and RSU that have vested are exercisable for up to 10 years from the grant date of the options or RSU to each employee. Options and RSUs that are cancelled or forfeited before expiration become available for future grants.

During 2017, the Board of Directors approved an increase in the ordinary shares reserved for issuance to 4,324,412 ordinary shares. As of December 31, 2017, an aggregate of 1,875,006 ordinary shares were available for future grants.

The following table sets forth the total share based compensation expense included in the consolidated statements of operations for the years ended December 31, 2015, 2016 and 2017:

	Year ended December 31,
	2015		2016		2017

Cost of products	$	219	$	311	$	419
Cost of services		87		171		210
Research and development		281		217		775
Sales and marketing		537		654		920
General and administrative		1,259		1,640		2,087

Total share-based compensation expense	$	2,383	$	2,993	$	4,411

On January 10, 2017, the Company signed a master purchase agreement with Amazon Inc. under which 2,932,176 warrants to purchase ordinary shares of the Company in exercise price of $13.03 were issued to Amazon as a customer incentive. The warrants are subject to vesting as a function of payments for purchased products and services of up to $150 million over a five years period beginning on May 1, 2016, with the shares vesting incrementally each time Amazon makes a payment totaling $5 million to the Company.

The Company utilizes a Monte Carlo simulation approach to estimate the fair value of the warrants, which requires inputs such as common ordinary share, the warrant strike price, estimated ordinary share price volatility and risk-free interest rate, among others. The Company recognized a reduction to revenues of $2,030 and $2,895 during the years ended December 31, 2016 and 2017 respectively.

Earnings (Losses) Per Share

12 Months Ended

Dec. 31, 2017

Earnings (Losses) Per Share [Abstract]

EARNINGS (LOSSES) PER SHARE

NOTE 11:-

EARNINGS (LOSSES) PER SHARE

The following table sets forth the computation of basic and diluted net earnings (losses) per share:

	Year ended December 31,
	2015		2016		2017
Numerator for basic and diluted net earnings (losses) per share:

Net income (loss)	$	4,725	$	828	$	(2,015	)

Weighted average shares outstanding, net of treasury stock:

Denominator for basic net earnings (losses) per share		24,633,369		30,562,255		33,574,147
Effect of dilutive securities:
Employee share options		1,825,215		1,170,277		-

Denominator for diluted net earnings (losses) per share		26,458,584		31,732,532		33,574,147

Basic net earnings (losses) per share	$	0.19	$	0.03	$	(0.06	)

Diluted net earnings (losses) per share	$	0.18	$	0.03	$	(0.06	)

Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2017

Accumulated Other Comprehensive Income (Loss) [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

NOTE 12:-

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

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

	Unrealized Gains (losses) on marketable securities			Unrealized Gains (losses) on cash flow hedges			Foreign currency translation adjustment		Total
Year ended December 31, 2017:
Beginning balance	$	(100	)	$	3		$	15	$	(82	)
Other comprehensive income before reclassifications		104			436			271		811
Amounts reclassified from accumulated other comprehensive income (loss)		(34	)		(394	)		-		(428	)

Net current period other comprehensive income		70			42			271		383

Ending Balance	$	(30	)	$	45		$	286	$	301

	Unrealized Gains (losses) on marketable securities			Unrealized Gains (losses) on cash flow hedges			Foreign currency translation adjustment			Total
Year ended December 31, 2016:
Beginning balance	$	(227	)	$	(28	)	$	(28	)	$	(283	)
Other comprehensive income before reclassifications		133			97			43			273
Amounts reclassified from accumulated other comprehensive income (loss)		(6	)		(66	)		-			(72	)

Net current period other comprehensive income		127			31			43			201

Ending Balance	$	(100	)	$	3		$	15		$	(82	)

Taxes on Income

12 Months Ended

Dec. 31, 2017

Taxes on Income [Abstract]

TAXES ON INCOME

NOTE 13:-

TAXES ON INCOME

Tax rates:

Taxable income of the Israeli companies is subject to the Israeli corporate tax at the rate as follows: 2015: 26.5%, 2016: 25% and 2017: 24%

In December 2016, the Israeli Parliament approved the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), which reduces the corporate income tax rate to 24% (instead of 25%) effective from January 1, 2017 and to 23% effective from January 1, 2018.

Tax benefits under the Law for the Encouragement of Capital Investments, 1959 (the “Law”):

The Company’s production facilities in Israel have been granted “Beneficiary Enterprise” status under the Law. The Companies have been granted the “Alternative Benefit Track” under which the main benefits are a tax exemption for undistributed income and a reduced tax rate.

The duration of tax benefits is subject to a limitation of the earlier of 12 years from commencement of production, or 14 years from the approval date. The Israeli Companies began to utilize such tax benefits in 2010.

The entitlement to the above benefits is conditional upon the Company and its subsidiary fulfilling the conditions stipulated by the Law and regulations published. In the event of failure to comply with these conditions, the benefits may be partially or fully canceled and the Company or its subsidiary may be required to refund the amount of the benefits, in whole or in part, plus a consumer price index linkage adjustment and including interest.

Income from sources other than the “Beneficiary Enterprise” are subject to the tax at the regular rate.

In the event of distribution of dividends from the above mentioned tax-exempt income, the amount distributed will be subject to the same reduced corporate tax rate that would have been applied to the Beneficiary Enterprise’s income.

In addition, tax-exempt income attributed to the Beneficiary Enterprise will subject the Company to taxes upon distribution in any manner including complete liquidation.

The Company does not intend to distribute any amounts of its undistributed tax-exempt income as dividend. The Company and its board of directors intend to reinvest its tax-exempt income and not to distribute such income as a dividend. Accordingly, no deferred income taxes have been provided on income attributable to the Company’s Beneficiary Enterprise programs as the undistributed tax-exempt income is essentially permanent by reinvestment.

As of December 31, 2017, tax-exempt income of $74,896 is attributable to the Company’s and its subsidiary’s various Beneficiary Enterprise programs. If such tax-exempt income is distributed, it would be taxed at the reduced corporate tax rate applicable to such income, and $18,724 would be incurred as of December 31, 2017.

A January 2011 amendment to the Law sets alternative benefit tracks to those previously in place, as follows: an investment grants track designed for enterprises located in national development zone A and two new tax benefits tracks (“Preferred Enterprise” and “Special Preferred Enterprise”), which provide for application of a unified tax rate to all preferred income of the company, as defined in the Law.

The 2011 Amendment canceled the availability of the benefits granted in accordance with the provisions of the Law prior to 2011 and, instead, introduced new benefits for income generated by a “Preferred Company” through its Preferred Enterprise (as such term is defined in the Law) effective as of January 1, 2011 and thereafter. A Preferred Company is defined as either (i) a company incorporated in Israel and not fully owned by a governmental entity or (ii) a limited partnership that: (a) was registered under the Partnerships Ordinance; (b) all of its limited partners are companies incorporated in Israel, but not all of them are governmental entities, which, among other things, has Preferred Enterprise status and are controlled and managed from Israel. Pursuant to the 2011 Amendment, a Preferred Company is entitled to a reduced corporate flat tax rate of 16% with respect to its preferred income, unless the Preferred Enterprise is located in a certain development zone, in which case the rate will be 9%. Income derived by a Preferred Company from a “Special Preferred Enterprise” (as such term is defined in the Investment Law) would be entitled, during a benefits period of 10 years, to further reduced tax rates of 8%, or to 5% if the Special Preferred Enterprise is located in a certain development zone.

In December 2016, the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), 2016 which includes Amendment 73 to the Law for the Encouragement of Capital Investments (“the Amendment”) was published. According to the Amendment, a preferred enterprise located in development area A will be subject to a tax rate of 7.5% instead of 9% effective from January 1, 2017 and thereafter (the tax rate applicable to preferred enterprises located in other areas remains at 16%).

Dividends paid out of income attributed to a Preferred Enterprise are generally subject to withholding tax at source at the rate of 20% or such lower rate as may be provided in an applicable tax treaty. However, if such dividends are paid to an Israeli company, no tax will be withheld.

The 2011 Amendment also provided transitional provisions to address companies already enjoying current benefits. a Beneficiary Enterprise can elect to continue to benefit from the benefits provided to it before the 2011 Amendment came into effect, provided that certain conditions are met, or file a request with the Israeli Tax Authority according to which its income derived as of January 1, 2011 will be subject to the provisions of the Law as amended in 2011. The Company has examined the possible effect, of these provisions of the 2011 Amendment on its financial statements and has decided, not to opt to apply the new benefits under the 2011 Amendment for the Israeli parent company and for its Israeli subsidiary it elected in 2013 to apply the benefit under the 2011 Amendment.

Tax benefits under the Israeli Law for the Encouragement of Industry (Taxation), 1969:

The Israeli companies are an “Industrial Company” as defined by the Israeli Law for the Encouragement of Industry (Taxation), 1969, and, as such, are entitled to certain tax benefits including accelerated depreciation, deduction of public offering expenses in three equal annual installments and amortization of other intangible property rights for tax purposes.

Income taxes of non-Israeli subsidiaries:

Non-Israeli subsidiaries are taxed according to the tax laws in their respective countries of residence.

Taxes were not provided for undistributed earnings of the Company’s foreign subsidiaries. The Company’s board of directors has determined that the Company does not currently intend to distribute any amounts of its undistributed earnings as dividend. The Company intends to reinvest these earnings indefinitely in the foreign subsidiaries. Accordingly, no deferred income taxes have been provided. If these earnings were distributed to Israel in the form of dividends or otherwise, the Company would be subject to additional Israeli income taxes (subject to an adjustment for foreign tax credits) and foreign withholding taxes.

The amount of undistributed earnings of foreign subsidiaries that are considered to be reinvested as of December 31, 2017 was $4,900. If these undistributed earnings are distributed, they would be taxed at the corporate tax rate applicable to such income, and $491 would be incurred as of December 31, 2017.

Tax Reform in the U.S:

On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the “Act”), which among other provisions, reduced the U.S. corporate tax rate from 35% to 21%, effective January 1, 2018.

At December 31, 2017, the Company has made reasonable estimates of the effects on the existing deferred tax balances for which provisional amounts have been recorded. The Company re-measured certain of its U.S. deferred tax assets and liabilities, based on the rates at which they are expected to reverse in the future. The estimated tax expense recorded related to the re-measurement of the deferred tax balance was $355.

The aforesaid provisional amounts are based on the Company’s initial analysis of the Act as of December 31, 2017. Given the significant complexity of the Act, anticipated guidance from the U.S. Treasury about implementing the Act, the potential for additional guidance from the Securities and Exchange Commission or the Financial Accounting Standards Board related to the Act, as well as additional analysis and revisions to be conducted by the Company, these estimates may be adjusted during 2018.

Final tax assessments:

The Company and its Israeli subsidiary received final tax assessments through 2012. The U.S subsidiary received final tax assessment through 2011 and the German and the Hong Kong Subsidiaries have not received a final tax assessment since inception.

Carryforward losses for tax purposes:

Carryforward operating tax losses of the Company and the Company’s Israeli subsidiary total approximately $50,763 as of December 31, 2017 and may be used indefinitely.

Deferred income taxes:

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s and its subsidiaries’ deferred tax liabilities and assets are as follows:

	December 31,
	2016			2017

Carryforward tax losses	$	2,015		$	3,764
Other temporary differences		2,131			2,307

Deferred tax assets		4,146			6,071

Deferred tax liability due to property and equipment		(102	)		(4	)

Valuation allowance		(3,605	)		(5,503	)

Deferred tax assets, net	$	439		$	564

The net change in the valuation allowance primarily reflects an increase in deferred tax assets on net operating and other temporary differences for which full valuation allowance is recorded.

Income (loss) before income taxes is comprised as follows:

	Year ended December 31,
	2015		2016			2017

Domestic	$	3,204	$	(507	)	$	(3,328	)
Foreign		2,230		1,983			1,697

Income (loss) before income taxes	$	5,434	$	1,476		$	(1,631	)

Taxes on income are comprised as follows:

	Year ended December 31,
	2015			2016			2017

Current taxes	$	766		$	829		$	509
Deferred taxes		(57	)		(181	)		(125	)

	$	709		$	648		$	384

Domestic	$	(113	)	$	(70	)	$	(594	)
Foreign		822			718			978

	$	709		$	648		$	384

	Year ended December 31,
	2015			2016			2017
Domestic taxes:

Current taxes	$	(113	)	$	(70	)	$	(594	)

Foreign taxes:

Current taxes		879			899			1,103
Deferred taxes		(57	)		(181	)		(125	)

		822			718			978

Taxes on income	$	709		$	648		$	384

Uncertain tax positions:

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:

	December 31,
	2016			2017

Beginning of year	$	1,074		$	1,004
Lapses of statutes of limitation		(70	)		(594	)
Cumulative translation adjustments and other		-			206

Balance at December 31	$	1,004		$	616

As of December 31, 2017, the entire amount of the unrecognized tax benefits could affect the Company’s income tax provision and the effective tax rate.

During the years ended December 31, 2015, 2016 and 2017, an amount of $26, $0 and $54, respectively, was added to the unrecognized tax benefits derived from interest and exchange rate differences expenses related to prior years’ uncertain tax positions. As of December 31, 2016 and 2017, the Company had accrued interest related to uncertain tax positions in the amounts of $96 and $60, which is included within income tax accrual on the balance sheets.

Exchange rate differences are recorded within financial income (expenses), net, while interest is recorded within income tax expense.

The Company believes that it has adequately provided for any reasonably foreseeable outcome related to tax audits and settlement. The final tax outcome of its tax audits could be different from that which is reflected in the Company’s income tax provisions and accruals. Such differences could have a material effect on the Company’s income tax provision and net income in the period in which such determination is made.

A reconciliation between the theoretical tax expense, assuming all income is taxed at the statutory tax rate applicable to income of the Company and the actual tax expense as reported in the statement of operations is as follows:

	Year ended December 31,
	2015			2016			2017

Income (loss) before taxes, as reported in the consolidated statements of income	$	5,434		$	1,476		$	(1,631	)

Theoretical tax expense (benefit) at the Israeli statutory tax rate		1,440			369			(392	)
Tax adjustment in respect of different tax rate of foreign subsidiaries		101			114			111
Non-deductible expenses and other permanent differences		184			140			143
Deferred taxes on losses and other temporary differences for which valuation allowance was provided, net		546			318			1,899
Stock based compensation		606			716			996
Change in tax rate		-			240			(27	)
Beneficiary enterprise benefits (*)		(1,685	)		(1,190	)		(1,760	)
Foreign exchange differences (**)		(375	)		-			-
Decrease in other uncertain tax positions		(113	)		(70	)		(594	)
Other		5			11			8

Actual tax expense	$	709		$	648		$	384

(*) Basic earnings per share amounts of the benefit resulting from the “Beneficiary Enterprise” status		0.19			0.04			(0.05	)

Diluted earnings per share amounts of the benefit resulting from the “Beneficiary Enterprise” status		0.17			0.04			(0.05	)

(**)

Until 2016 results for tax purposes were measured under, Measurement of results for tax purposes under the Income Tax (Inflationary Adjustments) Law, 1985, in terms of earnings in NIS. As explained in Note 2b, the financial statements are measured in U.S. dollars. The difference between the annual changes in the NIS/dollar exchange rate causes a difference between taxable income and the income before taxes shown in the financial statements. In accordance with ASC 740-10-25-3(F), the Company has not provided deferred income taxes in respect of the difference between the functional currency and the tax bases of assets and liabilities. Starting 2016 the results of the Israeli companies for tax purposes are measured in U.S dollars.

Geographic Information

12 Months Ended

Dec. 31, 2017

Geographic Information [Abstract]

GEOGRAPHIC INFORMATION

NOTE 14:-

GEOGRAPHIC INFORMATION

Summary information about geographic areas:

The Company operates in one reportable segment (see Note 1 for a brief description of the Company’s business). Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker, who is the chief executive officer, in deciding how to allocate resources and assessing performance. The Company’s chief operating decision maker evaluates the Company’s financial information and resources and assesses the performance of these resources on a consolidated basis.

The total revenues are attributed to geographic areas based on the location of the end-users.

The following table presents total revenues for the years ended December 31, 2015, 2016 and 2017 and long-lived assets as of December 31, 2016 and 2017:

	Year ended December 31,
	2015		2016		2017
Revenues from sales to customers located in:

U.S	$	45,528	$	63,656	$	60,541
EMEA		21,600		24,720		32,015
Asia Pacific		16,042		11,963		16,092
Other		3,235		8,355		5,440

	$	86,405	$	108,694	$	114,088

	December 31,
	2016		2017
Long-lived assets, by geographic region:

U.S	$	268	$	232
Israel		8,385		10,342
EMEA		341		378
Asia Pacific		253		278

	$	9,247	$	11,230

Major customers’ data as a percentage of total revenues:

The following table sets forth the customers that represented 10% or more of the Company’s total revenues in each of the periods set forth below:

	Year ended December 31,
	2015			2016			2017

Customer A		18	%		21	%		18	%
Customer B		15	%		(	*-		(	*-
Customer C		(	*-		16	%		13	%

Less than 10%

Selected Statements of Income Data

12 Months Ended

Dec. 31, 2017

Selected Statements of Income Data [Abstract]

SELECTED STATEMENTS OF INCOME DATA

NOTE 15:-

SELECTED STATEMENTS OF INCOME DATA

Financial income (expenses), net:

	Year ended December 31,
	2015			2016			2017
Financial income:

Interest on bank deposits and other	$	156		$	203		$	69
Foreign currency translation differences		18			196			-
Interest on marketable securities		260			1,052			1,930

		434			1,451			1,999
Financial expenses:

Bank charges		(160	)		(277	)		(244	)
Foreign currency translation differences		(495	)		(674	)		(757	)
Amortization of premium and accretion of discount on marketable securities		(113	)		(454	)		(546	)

		(768	)		(1,405	)		(1,547	)

Total financial expense (income):	$	(334	)	$	46		$	452

Balances and Transactions with Related Parties

12 Months Ended

Dec. 31, 2017

Balances and Transactions with Related Parties [Abstract]

BALANCES AND TRANSACTIONS WITH RELATED PARTIES

NOTE 16:-

BALANCES AND TRANSACTIONS WITH RELATED PARTIES

The Company’s policy is to enter into transactions with related parties on terms that, on the whole, are no less favorable, than those available from unaffiliated third parties. Based on the Company’s experience in the business sectors in which it operates and the terms of its transactions with unaffiliated third parties, the Company believes that all of the transactions described below met this policy at the time they occurred.

Fortissimo Capital Fund II (GP), L.P (“Fortissimo”)

Fortissimo is s major shareholder of the Company as of December 31, 2017. Pursuant to a management fee agreement between the Company and Fortissimo, the Company was required to pay Fortissimo an annual fee of $120 plus an amount equal to 5% of the Company's net income, as defined in the management services agreement, up to a maximum of $250 per year. During the year ended December 31, 2015 the Company recorded an expense of $30, in respect of payments to Fortissimo.

In March 2015, the Company and Fortissimo agreed to terminate the management service agreement upon the consummation of the IPO. Under the agreement the Company agreed to pay Fortissimo a one-time payment of $750.

Acord Insurance Agency Ltd. (“Acord”)

Acord is an insurance company which is owned, in part, by the Chairman of the Board. Starting December 1^st, 2017, the Company entered a one-year business and professional insurance contract with Acord. The total annual premium under the contract is $248. During the year ended December 31, 2017 the Company recorded an expense of $21, in respect of payments to Acord.

Priority Software Ltd. (“Priority”)

Priority is the Company’s ERP solution provider, which is owned by Fortissimo. In October 2017, the Company amended its contract with Priority, increasing it from 55 general licenses to 250 named licenses including web. The total cost of the licenses was $58. In addition, the Company will pay a yearly maintenance fees of $32. During the year ended December 31, 2017, the Company recorded an expense of $15, in respect of payments to Priority.

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

Significant Accounting Policies [Abstract]

Use of estimates:

Financial statements in United States dollars:

Principles of consolidation:

Cash equivalents:

Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less, at acquisition.

Short-term bank deposits:

Short-term bank deposits are deposits with an original maturity of more than three months but less than one year from the date of acquisition.

Marketable securities:

Inventories:

Cost of inventories is determined as follows:

Raw and packing materials - on the basis of weighted average cost.

Finished goods - on the basis of average costs of materials, and other direct manufacturing cost.

Inventory write offs have been provided to cover risks arising from dead and slow-moving items, technological obsolescence and excess inventories according to revenue forecasts.

During the years ended December 31, 2015, 2016 and 2017, the Company recorded inventory write offs in a total amount of $824, $2,211 and $2,988, respectively.

Property and equipment:

	%
Office furniture and equipment		7 - 20
Computer and peripheral equipment		33
Machinery and equipment		15
Leasehold improvements		*)

Goodwill and other Intangible assets:

Goodwill and other intangible assets:

Impairment of long lived assets and intangible assets subject to amortization:

During the years ended December 31, 2015, 2016 and 2017, no impairment losses were recorded.

Business combinations:

Acquisition related costs are expensed to the statements of income in the period incurred.

Revenue recognition:

Revenues from ink and other consumable products when sold separately are generally recognized upon shipment assuming all other revenue recognition criteria have been met.

Deferred revenue includes amounts received from customers for which revenue has not yet been recognized.

In cases where the Company’s customers trade-in old systems as part of sales of new systems, the fair value of the old systems is recorded as inventory, provided that such value can be determined.

Shipping and Handling:

Cost of revenues:

Warranty costs:

The followings are the changes in the liability for product warranty from January 1, 2016 to December 31, 2017:

Balance at January 1, 2016	$	940
Provision for warranties issued during the year		2,984
Reduction for payments and costs to satisfy claims		(1,905	)

Balance at December 31, 2016		2,019

Provision for warranties issued during the year		2,807
Reduction for payments and costs to satisfy claims		(3,049	)

Balance at December 31, 2017	$	1,777

Research and development expenses:

Research and development expenses are charged to the statement of income, as incurred.

Restructuring:

Accounting for share-based compensation:

	Year ended December 31,
	2015		2016		2017

Suboptimal exercise multiple		2.0-2.5		1.0-1.5		1.0-1.5
Risk free interest rate		0.2%-2.2%		0.3%-2.2%		2.2%-2.3%
Volatility		50%-55%		54%-56%		51%-53%
Dividend yield		0%		0%		0%

The fair value of each restricted stock unit (“RSU”) is the market value as determined by the closing price of the common share prior to the day of grant.

The impact of the adoption on the Company’s Consolidated Financial Statements was as follows:

Derivatives and hedging:

As of December 31, 2016 and December 31, 2017, the Company had outstanding hedging contracts in the notional amount of $8,636 and $3,651, respectively.

Advertising:

Advertising costs are charged to operations as incurred and were $283, $526 and $612 for the years ended December 31, 2015, 2016 and 2017, respectively.

Income taxes:

Concentrations of credit risks:

Severance pay:

Severance pay expenses for the years ended December 31, 2015, 2016 and 2017 were $1,354, $1,590 and $2,088 respectively.

Fair value of financial instruments:

The hierarchy is broken down into three levels based on the inputs as follows:

	Level 1 -	Valuations based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date.

	Level 2 -	Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

	Level 3 -	Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

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.

The contingent payment related to the SPSI acquisition is classified within Level 3 as it is based on significant inputs not observable in the market.

Comprehensive income:

Basic and diluted net income per share:

Impact of recently issued accounting standard not yet adopted:

aa.	Impact of recently issued accounting standard:

Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Significant Accounting Policies [Abstract]

Schedule of property and equipment on straight-line basis over useful life of assets

	%
Office furniture and equipment		7 - 20
Computer and peripheral equipment		33
Machinery and equipment		15
Leasehold improvements		*)

Schedule of changes in liability for product warranty

Balance at January 1, 2016	$	940
Provision for warranties issued during the year		2,984
Reduction for payments and costs to satisfy claims		(1,905	)

Balance at December 31, 2016		2,019

Provision for warranties issued during the year		2,807
Reduction for payments and costs to satisfy claims		(3,049	)

Balance at December 31, 2017	$	1,777

Schedule of fair value method for share-based compensation awards

	Year ended December 31,
	2015		2016		2017

Suboptimal exercise multiple		2.0-2.5		1.0-1.5		1.0-1.5
Risk free interest rate		0.2%-2.2%		0.3%-2.2%		2.2%-2.3%
Volatility		50%-55%		54%-56%		51%-53%
Dividend yield		0%		0%		0%

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value Measurements [Abstract]

Summary of available-for-sale marketable securities

	December 31, 2017
	Amortized cost		Gross unrealized gain		Gross unrealized loss			Fair value

Matures within one year:
Corporate debentures	$	5,190	$	41	$	-		$	5,231
Government debentures		295		11		-			306
		5,485		52		-			5,537

Matures after one year through three years:
Corporate debentures		56,514		-		(65	)		56,449
Government debentures		12,403		-		(17	)		12,386
		68,917		-		(82	)		68,835

Total	$	74,402	$	52	$	(82	)	$	74,372

	December 31, 2016
	Amortized cost		Gross unrealized gain		Gross unrealized loss			Fair value

Matures within one year:
Corporate debentures	$	16,526	$	2	$	(28	)	$	16,500

Matures after one year through three years:
Corporate debentures		21,798		5		(79	)		21,724

Total	$	38,324	$	7	$	(107	)	$	38,224

Summary of fair value measurement

	December 31, 2017
	Level 1		Level 2		Level 3		Total
Assets:
Marketable securities	$	-	$	74,372	$	-	$	74,372
Foreign currency derivative contracts		-		45		-		45

Total financial assets	$	-	$	74,417	$	-	$	74,417

Liabilities:
Payment obligation related to acquisition	$	-	$	-	$	334	$	334

Total liabilities	$	-	$	-	$	334	$	334

	December 31, 2016
	Level 1		Level 2		Level 3		Total
Assets:
Marketable securities	$	-	$	38,224	$	-	$	38,224
Foreign currency derivative contracts		-		3		-		3

Total financial assets	$	-	$	38,227	$	-	$	38,227

Liabilities:
Payment obligation related to acquisition	$	-	$	-	$	1,070	$	1,070

Total liabilities	$	-	$	-	$	1,070	$	1,070

Schedule of fair value measurements within level 3

Total fair value as of January 1, 2017	$	1,070
Settlement of payment obligation *)		(900	)
Accretion of payment obligation		164

Total fair value as of December 31, 2017	$	334

$900 is included within other payables and accrued expenses on the balance sheet as the set milestone was met as of December 31, 2017.

Inventories (Tables)

12 Months Ended

Dec. 31, 2017

Inventories [Abstract]

Schedule of inventories

	December 31,
	2016		2017

Raw materials and components	$	12,322	$	15,756
Finished products (*)		11,800		19,099

	$	24,122	$	34,855

(*)

Including amounts of $705 and $34 for the years ended December 31, 2016 and 2017, respectively, with respect to inventory delivered to customers for which revenue was not yet recognized.

Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2017

Property and Equipment, Net [Abstract]

Schedule of property and equipment on straight-line basis over useful life of assets

	December 31,
	2016			2017
Cost:

Computer and peripheral equipment	$	1,935		$	2,616
Office furniture and equipment		1,332			1,497
Machinery and equipment		8,962			11,098
Leasehold improvements		4,978			7,022

		17,207			22,233

Accumulated depreciation		(7,960	)		(11,003	)

Property and equipment, net	$	9,247		$	11,230

Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2017

Intangible Assets, Net [Abstract]

Schedule of intangible assets

	Weighted average amortization period		December 31,
	Years		2016		2017

Original amount:
Acquired technology		8.14	$	1,566	$	1,566
Customer relationships		5		2,614		2,614
Non-competition agreement		4		265		265

			$	4,445	$	4,445
Accumulated amortization:
Acquired technology				766		866
Customer relationships				261		1,404
Non-competition agreement				33		99

				1,060		2,369

Intangible assets, net			$	3,385	$	2,076

Summary of future amortization expenses

December 31,

2018	$	1,065
2019		432
2020		136
2021		143
2022 and Thereafter		300

	$	2,076

Other Payables and Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2017

Other Payables and Accrued Expenses [Abstract]

Schedule of other payable and accrued expenses

	December 31,
	2016		2017

Government authorities	$	993	$	867
Warranty provision short term		1,741		1,680
Professional services		693		470
Payment obligation related to acquisition		1,400		900
Restructuring		-		503
Accrued expenses		1,276		626

	$	6,103	$	5,046

Commitments and Contingent Liabilities (Tables)

12 Months Ended

Dec. 31, 2017

Commitments and Contingent Liabilities [Abstract]

Schedule of aggregate minimum lease and rental payments under non-cancelable operating leases

December 31,

2018	$	2,504
2019		2,494
2020		2,465
2021		2,195
2022 and thereafter		6,982

	$	16,640

Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2017

Shareholders' Equity [Abstract]

Summary of company's stock option activity

	Number of shares upon exercise			Weighted average exercise price		Weighted- average remaining contractual term (in years)		Aggregate intrinsic value

Outstanding at beginning of year		2,733,166		$	7.01	$	7.78	$	16,054
Granted		663,983			17.13		9.26		167
Exercised		(834,350	)		3.46		5.27
Forfeited		(202,152	)		11.18		8.10

Outstanding at end of year		2,360,647		$	10.76	$	8.05	$	13,588

Exercisable at end of year		887,913		$	7.45	$	7.04	$	7,726

Summary of options outstanding and options exercisable

	Options outstanding at December 31, 2017						Options exercisable at December 31, 2017
Exercise price	Number outstanding		Weighted average exercise price		Weighted average remaining contractual life		Number outstanding		Weighted average exercise price		Weighted average remaining contractual life
$			$		In years				$		In years

0.36-0.92		41,734		0.73		0.97		41,734		0.73		0.97
1.14-1.60		21,299		1.60		6.01		21,299		1.6		6.01
2.07-2.17		473,688		2.14		6.48		319,266		2.15		6.46
9.38-9.49		145,000		9.47		8.68		46,875		9.47		8.42
9.97-10.10		616,783		10.04		8.15		238,193		10.03		7.95
11.49-11.90		66,000		11.86		8.80		17,625		11.84		8.76
12.97-15.29		479,811		14.19		8.17		202,921		13.91		7.73
15.80-21.15		516,332		17.74		9.64		-		-		-

		2,360,647						887,913

Summary of the RSUs activity

	Year ended December 31,
	2017

Outstanding at beginning of year		-
Granted		94,570
Vested		-
Forfeited		(5,811	)
Outstanding as of December 31,		88,759

Schedule of share based compensation expense

	Year ended December 31,
	2015		2016		2017

Cost of products	$	219	$	311	$	419
Cost of services		87		171		210
Research and development		281		217		775
Sales and marketing		537		654		920
General and administrative		1,259		1,640		2,087

Total share-based compensation expense	$	2,383	$	2,993	$	4,411

Earnings (Losses) Per Share (Tables)

12 Months Ended

Dec. 31, 2017

Earnings (Losses) Per Share [Abstract]

Schedule of computation of basic and diluted net earnings (losses) per share

	Year ended December 31,
	2015		2016		2017
Numerator for basic and diluted net earnings (losses) per share:

Net income (loss)	$	4,725	$	828	$	(2,015	)

Weighted average shares outstanding, net of treasury stock:

Denominator for basic net earnings (losses) per share		24,633,369		30,562,255		33,574,147
Effect of dilutive securities:
Employee share options		1,825,215		1,170,277		-

Denominator for diluted net earnings (losses) per share		26,458,584		31,732,532		33,574,147

Basic net earnings (losses) per share	$	0.19	$	0.03	$	(0.06	)

Diluted net earnings (losses) per share	$	0.18	$	0.03	$	(0.06	)

Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2017

Accumulated Other Comprehensive Income (Loss) [Abstract]

Schedule of changes in accumulated balances of other comprehensive income (loss)

	Unrealized Gains (losses) on marketable securities			Unrealized Gains (losses) on cash flow hedges			Foreign currency translation adjustment		Total
Year ended December 31, 2017:
Beginning balance	$	(100	)	$	3		$	15	$	(82	)
Other comprehensive income before reclassifications		104			436			271		811
Amounts reclassified from accumulated other comprehensive income (loss)		(34	)		(394	)		-		(428	)

Net current period other comprehensive income		70			42			271		383

Ending Balance	$	(30	)	$	45		$	286	$	301

	Unrealized Gains (losses) on marketable securities			Unrealized Gains (losses) on cash flow hedges			Foreign currency translation adjustment			Total
Year ended December 31, 2016:
Beginning balance	$	(227	)	$	(28	)	$	(28	)	$	(283	)
Other comprehensive income before reclassifications		133			97			43			273
Amounts reclassified from accumulated other comprehensive income (loss)		(6	)		(66	)		-			(72	)

Net current period other comprehensive income		127			31			43			201

Ending Balance	$	(100	)	$	3		$	15		$	(82	)

Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2017

Taxes on Income [Abstract]

Schedule of deferred tax liabilities and assets

	December 31,
	2016			2017

Carryforward tax losses	$	2,015		$	3,764
Other temporary differences		2,131			2,307

Deferred tax assets		4,146			6,071

Deferred tax liability due to property and equipment		(102	)		(4	)

Valuation allowance		(3,605	)		(5,503	)

Deferred tax assets, net	$	439		$	564

Schedule of Income before income taxes

	Year ended December 31,
	2015		2016			2017

Domestic	$	3,204	$	(507	)	$	(3,328	)
Foreign		2,230		1,983			1,697

Income (loss) before income taxes	$	5,434	$	1,476		$	(1,631	)

Schedule of taxes on income

	Year ended December 31,
	2015			2016			2017

Current taxes	$	766		$	829		$	509
Deferred taxes		(57	)		(181	)		(125	)

	$	709		$	648		$	384

Domestic	$	(113	)	$	(70	)	$	(594	)
Foreign		822			718			978

	$	709		$	648		$	384

	Year ended December 31,
	2015			2016			2017
Domestic taxes:

Current taxes	$	(113	)	$	(70	)	$	(594	)

Foreign taxes:

Current taxes		879			899			1,103
Deferred taxes		(57	)		(181	)		(125	)

		822			718			978

Taxes on income	$	709		$	648		$	384

Schedule of unrecognized tax benefits

	December 31,
	2016			2017

Beginning of year	$	1,074		$	1,004
Lapses of statutes of limitation		(70	)		(594	)
Cumulative translation adjustments and other		-			206

Balance at December 31	$	1,004		$	616

Schedule of statutory tax rate

	Year ended December 31,
	2015			2016			2017

Income (loss) before taxes, as reported in the consolidated statements of income	$	5,434		$	1,476		$	(1,631	)

Theoretical tax expense (benefit) at the Israeli statutory tax rate		1,440			369			(392	)
Tax adjustment in respect of different tax rate of foreign subsidiaries		101			114			111
Non-deductible expenses and other permanent differences		184			140			143
Deferred taxes on losses and other temporary differences for which valuation allowance was provided, net		546			318			1,899
Stock based compensation		606			716			996
Change in tax rate		-			240			(27	)
Beneficiary enterprise benefits (*)		(1,685	)		(1,190	)		(1,760	)
Foreign exchange differences (**)		(375	)		-			-
Decrease in other uncertain tax positions		(113	)		(70	)		(594	)
Other		5			11			8

Actual tax expense	$	709		$	648		$	384

(*) Basic earnings per share amounts of the benefit resulting from the “Beneficiary Enterprise” status		0.19			0.04			(0.05	)

Diluted earnings per share amounts of the benefit resulting from the “Beneficiary Enterprise” status		0.17			0.04			(0.05	)

Geographic Information (Tables)

12 Months Ended

Dec. 31, 2017

Geographic Information [Abstract]

Schedule of revenues from sales to customers

	Year ended December 31,
	2015		2016		2017
Revenues from sales to customers located in:

U.S	$	45,528	$	63,656	$	60,541
EMEA		21,600		24,720		32,015
Asia Pacific		16,042		11,963		16,092
Other		3,235		8,355		5,440

	$	86,405	$	108,694	$	114,088

Schedule of long-lived assets by geographical region

	December 31,
	2016		2017
Long-lived assets, by geographic region:

U.S	$	268	$	232
Israel		8,385		10,342
EMEA		341		378
Asia Pacific		253		278

	$	9,247	$	11,230

Schedule of revenue by major distributors

	Year ended December 31,
		2015			2016			2017

Customer A			18	%		21	%		18	%
Customer B			15	%		(	*-		(	*-
Customer C			(	*-		16	%		13	%

Less than 10%

Selected Statements of Income Data (Tables)

12 Months Ended

Dec. 31, 2017

Selected Statements of Income Data [Abstract]

Summary of financial income

	Year ended December 31,
	2015			2016			2017
Financial income:

Interest on bank deposits and other	$	156		$	203		$	69
Foreign currency translation differences		18			196			-
Interest on marketable securities		260			1,052			1,930

		434			1,451			1,999
Financial expenses:

Bank charges		(160	)		(277	)		(244	)
Foreign currency translation differences		(495	)		(674	)		(757	)
Amortization of premium and accretion of discount on marketable securities		(113	)		(454	)		(546	)

		(768	)		(1,405	)		(1,547	)

Total financial expense (income):	$	(334	)	$	46		$	452

General (Details) - USD ($) $ in Thousands		1 Months Ended	12 Months Ended
General (Details) - USD ($) $ in Thousands	May 15, 2017	Jan. 31, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
General (Textual)
Ordinary shares issued under offering			$ 35,077		$ 73,519
Aggregate net proceeds received from offering			$ 35,077		$ 74,180
Secondary Offering [Member]
General (Textual)
Ordinary shares issued under offering	$ 4,250,000	$ 8,625,000
Aggregate net proceeds received from offering		$ 35,077

Significant Accounting Policies (Details)

Dec. 31, 2017

Office furniture and equipment [Member] | Minimum [Member]

Property, Plant and Equipment [Line Items]

Property and equipment useful life of assets at annual rates

7.00%

Office furniture and equipment [Member] | Maximum [Member]

Property, Plant and Equipment [Line Items]

Property and equipment useful life of assets at annual rates

20.00%

Computer and peripheral equipment [Member]

Property, Plant and Equipment [Line Items]

Property and equipment useful life of assets at annual rates

33.00%

Machinery and equipment [Member]

Property, Plant and Equipment [Line Items]

Property and equipment useful life of assets at annual rates

15.00%

Leasehold improvements [Member]

Property, Plant and Equipment [Line Items]

Property and equipment useful life of assets at annual rates

^[1]

[1]	Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term (including the extension option held by the Company and intended to be exercised) and the expected life of the improvement.

Significant Accounting Policies (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Schedule of changes in liability for product warranty
Beginning balance	$ 2,019	$ 940
Provision for warranties issued during the year	2,807	2,984
Reduction for payments and costs to satisfy claims	(3,049)	(1,905)
Ending balance	$ 1,777	$ 2,019

Significant Accounting Policies (Details 2) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Schedule of fair value method for share-based compensation awards
Dividend yield	0.00%	0.00%	0.00%
Minimum [Member]
Schedule of fair value method for share-based compensation awards
Suboptimal exercise multiple	$ 1.0	$ 1.0	$ 2.0
Risk free interest rate	2.20%	0.30%	0.20%
Volatility	51.00%	54.00%	50.00%
Maximum [Member]
Schedule of fair value method for share-based compensation awards
Suboptimal exercise multiple	$ 1.5	$ 1.5	$ 2.5
Risk free interest rate	2.30%	2.20%	2.20%
Volatility	53.00%	56.00%	55.00%

Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Significant Accounting Policies (Textual)
Inventory write off	$ 2,988	$ 2,211	$ 824
Impairment of goodwill
Provisions for estimated sales returns	580	346
Revenues from shipping	$ 1,355	$ 768	719
Suboptimal exercise, description	The computation of the suboptimal exercise multiple based on empirical studies, the early exercise factor of public companies is approximately 100% for employees and 150% for managers.	The computation of the suboptimal exercise multiple based on empirical studies, the early exercise factor of public companies is approximately 100% for employees and 150% for managers.
Monthly deposits rate	8.33%
Notional principal amount of hedging contracts	$ 3,651	$ 8,636
Severance pay expenses	2,088	1,590	1,354
Fair value of outstanding forward and option	45	3
Advertising costs	$ 612	526	283
Liability for uncertain tax positions, description	The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not 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 second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement.
Bad debt expenses	$ 97	$ 216	$ 21
Anti-dilutive excluded from calculation of diluted net earnings per share		1,498,503	762,152
Cumulative-effect adjustment to decrease retained earnings	69
Restructuring expenses	$ 503

Acquisition (Details) - USD ($) $ in Thousands		12 Months Ended
Acquisition (Details) - USD ($) $ in Thousands	Jul. 01, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Acquisition (Textual)
Cash paid to acquisition	$ 9,206		$ 9,206	$ 1,000
Cash held in escrow	741
Total milestone-based contingent payments for 2016, 2017 and 2018	2,700
Fair value measurement of contingent liability	2,237	$ 1,234	$ 2,470
Acquisition-related costs	493
SPSI Inc [Member]
Acquisition (Textual)
Acquisition agreement consideration	$ 11,443

Fair Value Measurements (Details ) - USD ($) $ in Thousands	12 Months Ended
Fair Value Measurements (Details ) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Summary of marketable securities
Amortized cost, current	$ 5,485
Amortized cost, noncurrent	68,917
Amortized cost, Total	74,402	$ 38,324
Gross unrealized gain, current	52
Gross unrealized gain, noncurrent
Gross unrealized gain, Total	52	7
Gross unrealized loss, current
Gross unrealized loss, noncurrent	(82)
Gross unrealized loss	(82)	(107)
Fair value, current	5,537	16,500
Fair value, noncurrent	68,835	21,724
Fair value, Total	74,372	38,224
Matures within one year: Corporate debentures [Member]
Summary of marketable securities
Amortized cost, current	5,190	16,526
Gross unrealized gain, current	41	2
Gross unrealized loss, current		(28)
Fair value, current	5,231	16,500
Matures within one year: Government debentures [Member]
Summary of marketable securities
Amortized cost, current	295
Gross unrealized gain, current	11
Gross unrealized loss, current
Fair value, current	306
Matures after one year through three years: Corporate debentures [Member]
Summary of marketable securities
Amortized cost, noncurrent	56,514	21,798
Gross unrealized gain, noncurrent		5
Gross unrealized loss, noncurrent	(65)	(79)
Fair value, noncurrent	56,449	$ 21,724
Matures after one year through three years: Government debentures [Member]
Summary of marketable securities
Amortized cost, noncurrent	12,403
Gross unrealized gain, noncurrent
Gross unrealized loss, noncurrent	(17)
Fair value, noncurrent	$ 12,386

Fair Value Measurements (Details 1) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Fair Value Measurement [Member]
Assets:
Available-for-sale marketable securities	$ 74,372	$ 38,224
Foreign currency derivative contracts	45	3
Total financial assets	74,417	38,227
Liabilities:
Payment obligation related to acquisition	334	1,070
Total liabilities	334	1,070
Level 1 [Member]
Assets:
Available-for-sale marketable securities
Foreign currency derivative contracts
Total financial assets
Liabilities:
Payment obligation related to acquisition
Total liabilities
Level 2 [Member]
Assets:
Available-for-sale marketable securities	74,372	38,224
Foreign currency derivative contracts	45	3
Total financial assets	74,417	38,227
Liabilities:
Payment obligation related to acquisition
Total liabilities
Level 3 [Member]
Assets:
Available-for-sale marketable securities
Foreign currency derivative contracts
Total financial assets
Liabilities:
Payment obligation related to acquisition	334	1,070
Total liabilities	$ 334	$ 1,070

Fair Value Measurements (Details 2) - Level 3 [Member]
$ in Thousands

12 Months Ended

Dec. 31, 2017

USD ($)

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Total fair value as of January 1, 2017

$ 1,070

Settlement of payment obligation

(900)

^[1]

Accretion of payment obligation

164

Total fair value as of December 31, 2017

$ 334

[1]	$900 is included within other payables and accrued expenses on the balance sheet as the set milestone was met as of December 31, 2017.

Fair Value Measurements (Details Textual) $ in Thousands	12 Months Ended
Fair Value Measurements (Details Textual) $ in Thousands	Dec. 31, 2017 USD ($)
Fair Value Measurements [Textual]
Available-for-sale marketable securities unrealized losses, description	All investments with an unrealized loss as of December 31, 2017 are with continuous unrealized losses for less than 12 months.
Other payables and accrued expenses	$ 900
Discount rate	15.00%

Inventories (Details) - USD ($)
$ in Thousands

Dec. 31, 2017

Dec. 31, 2016

Schedule of inventory

Raw materials and components

$ 15,756

$ 12,322

Finished products

^[1]

19,099

11,800

Inventories

$ 34,855

$ 24,122

[1]	Including amounts of $705 and $34 for the years ended December 31, 2016 and 2017, respectively, with respect to inventory delivered to customers for which revenue was not yet recognized.

Inventories (Details Textual) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Inventories (Textual)
Inventory delivered to customers	$ 34	$ 705

Property and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property and equipment	$ 22,233	$ 17,207
Accumulated depreciation	(11,003)	(7,960)
Property and equipment, net	11,230	9,247
Computer and peripheral equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	2,616	1,935
Office furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	1,497	1,332
Machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	11,098	8,962
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	$ 7,022	$ 4,978

Property and Equipment, Net (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property and Equipment, Net (Textual)
Depreciation expenses	$ 3,505	$ 2,447	$ 1,560
Reduction of cost and accumulated depreciation	$ 298	$ 297	$ 166

Intangible Assets, Net (Details) - USD ($) $ in Thousands	12 Months Ended
Intangible Assets, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Original amount	$ 4,445	$ 4,445
Accumulated amortization	1,060	2,369
Intangible assets, net	3,385	2,076
Acquired technology [Member]
Finite-Lived Intangible Assets [Line Items]
Original amount	$ 1,566	1,566
Weighted average amortization period	8 years 1 month 20 days
Accumulated amortization	$ 766	866
Customer relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Original amount	$ 2,614	2,614
Weighted average amortization period	5 years
Accumulated amortization	$ 261	1,404
Non-competition agreement [Member]
Finite-Lived Intangible Assets [Line Items]
Original amount	$ 265	265
Weighted average amortization period	4 years
Accumulated amortization	$ 33	$ 99

Intangible Assets, Net (Details 1) $ in Thousands	Dec. 31, 2017 USD ($)
Intangible Assets, Net [Abstract]
2018	$ 1,065
2019	432
2020	136
2021	143
2022 and Thereafter	300
Total	$ 2,076

Intangible Assets, Net (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Intangible Assets, Net (Textual)
Amortization expenses	$ 1,309	$ 519	$ 222

Other Payables and Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Other Payables and Accrued Expenses [Abstract]
Government authorities	$ 867	$ 993
Warranty provision short term	1,680	1,741
Professional services	470	693
Payment obligation related to acquisition	900	1,400
Restructuring	503
Accrued expenses	626	1,276
Other payables and accrued expenses	$ 5,046	$ 6,103

Commitments and Contingent Liabilities (Details) $ in Thousands	Dec. 31, 2017 USD ($)
Commitments and Contingent Liabilities [Abstract]
2018	$ 2,504
2019	2,494
2020	2,465
2021	2,195
2022 and thereafter	6,982
Total	$ 16,640

Commitments and Contingent Liabilities (Details Textual) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($) Banks	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Commitments and Contingent Liabilities (Textual)
Rent expenses	$ 2,963	$ 1,664	$ 1,443
Operating leases expiration date	Dec. 31, 2025
Lines of credit maximum borrowings	$ 3,000
Interest rate description	These lines of credit are unsecured and available subject to the Company's maintenance of a 30% ratio of total tangible shareholders' equity to total tangible assets and that the total credit use will be less than 70% of the Company and its subsidiaries' receivables. Interest rates across these credit lines varied from 0.2% to 2.3% as of December 31, 2017.
Purchase commitments	$ 16,475
Royalty expense	$ 625	$ 625	$ 625
Number of banks \| Banks	2
Guarantees fee	$ 398
Maximum amount of royalties payment	$ 625

Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Number of shares upon exercise
Outstanding at beginning of year	2,733,166	2,769,004
Outstanding at end of year	2,360,647	2,733,166
Weighted average exercise price
Outstanding at beginning of year	$ 7.01	$ 4.74
Outstanding at end of year	$ 10.76	$ 7.01
Aggregate intrinsic value
Outstanding at beginning of year	$ 16,054	$ 18,580
Outstanding at end of year	$ 13,588	$ 16,054
Stock Option [Member]
Number of shares upon exercise
Outstanding at beginning of year	2,733,166
Granted	663,983
Exercised	(834,350)
Forfeited	(202,152)
Outstanding at end of year	2,360,647	2,733,166
Exercisable at end of year	887,913
Weighted average exercise price
Outstanding at beginning of year	$ 7.01
Granted	17.13
Exercised	3.46
Forfeited	11.18
Outstanding at end of year	10.76	$ 7.01
Exercisable at end of year	$ 7.45
Weighted- average remaining contractual term (in years)
Outstanding at beginning of year	7 years 9 months 11 days
Granted	9 years 3 months 4 days
Exercised	5 years 3 months 8 days
Forfeited	8 years 1 month 6 days
Outstanding at end of year	8 years 18 days
Exercisable at end of year	7 years 15 days
Aggregate intrinsic value
Outstanding at beginning of year	$ 16,054
Granted	167
Exercised
Forfeited
Outstanding at end of year	13,588	$ 16,054
Exercisable at end of year	$ 7,726

Shareholders' Equity (Details 1)	12 Months Ended
Shareholders' Equity (Details 1)	Dec. 31, 2017 $ / shares shares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, Number outstanding \| shares	2,360,647
Options exercisable, Number outstanding \| shares	887,913
0.36-0.92 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, Number outstanding \| shares	41,734
Options outstanding, Weighted average exercise price	$ 0.73
Options outstanding, Weighted average remaining contractual life	11 months 19 days
Options exercisable, Number outstanding \| shares	41,734
Options exercisable, Weighted average exercise price	$ 0.73
Options exercisable, Weighted average remaining contractual life	11 months 19 days
0.36-0.92 [Member] \| Minimum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price	$ 0.36
0.36-0.92 [Member] \| Maximum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price	$ 0.92
1.14-1.60 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, Number outstanding \| shares	21,299
Options outstanding, Weighted average exercise price	$ 1.60
Options outstanding, Weighted average remaining contractual life	6 years 4 days
Options exercisable, Number outstanding \| shares	21,299
Options exercisable, Weighted average exercise price	$ 1.6
Options exercisable, Weighted average remaining contractual life	6 years 4 days
2.07-2.17 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, Number outstanding \| shares	473,688
Options outstanding, Weighted average exercise price	$ 2.14
Options outstanding, Weighted average remaining contractual life	6 years 5 months 23 days
Options exercisable, Number outstanding \| shares	319,266
Options exercisable, Weighted average exercise price	$ 2.15
Options exercisable, Weighted average remaining contractual life	6 years 5 months 16 days
9.38-9.49 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, Number outstanding \| shares	145,000
Options outstanding, Weighted average exercise price	$ 9.47
Options outstanding, Weighted average remaining contractual life	8 years 8 months 5 days
Options exercisable, Number outstanding \| shares	46,875
Options exercisable, Weighted average exercise price	$ 9.47
Options exercisable, Weighted average remaining contractual life	8 years 5 months 1 day
9.97-10.10 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, Number outstanding \| shares	616,783
Options outstanding, Weighted average exercise price	$ 10.04
Options outstanding, Weighted average remaining contractual life	8 years 1 month 24 days
Options exercisable, Number outstanding \| shares	238,193
Options exercisable, Weighted average exercise price	$ 10.03
Options exercisable, Weighted average remaining contractual life	7 years 11 months 12 days
9.97-10.10 [Member] \| Minimum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price	$ 9.97
9.97-10.10 [Member] \| Maximum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price	$ 10.10
11.49-11.90 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, Number outstanding \| shares	66,000
Options outstanding, Weighted average exercise price	$ 11.86
Options outstanding, Weighted average remaining contractual life	8 years 9 months 18 days
Options exercisable, Number outstanding \| shares	17,625
Options exercisable, Weighted average exercise price	$ 11.84
Options exercisable, Weighted average remaining contractual life	8 years 9 months 3 days
12.97-15.29 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, Number outstanding \| shares	479,811
Options outstanding, Weighted average exercise price	$ 14.19
Options outstanding, Weighted average remaining contractual life	8 years 2 months 1 day
Options exercisable, Number outstanding \| shares	202,921
Options exercisable, Weighted average exercise price	$ 13.91
Options exercisable, Weighted average remaining contractual life	7 years 8 months 23 days
15.80-21.15 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, Number outstanding \| shares	516,332
Options outstanding, Weighted average exercise price	$ 17.74
Options outstanding, Weighted average remaining contractual life	9 years 7 months 21 days
Options exercisable, Number outstanding \| shares

Shareholders' Equity (Details 2)	12 Months Ended
Shareholders' Equity (Details 2)	Dec. 31, 2017 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at beginning of year	2,733,166
Outstanding at end of year	2,360,647
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at beginning of year
Granted	94,570
Vested
Forfeited	(5,811)
Outstanding at end of year	88,759

Shareholders' Equity (Details 3) - USD ($) $ in Thousands	12 Months Ended
Shareholders' Equity (Details 3) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total share-based compensation expense	$ 4,411	$ 2,993	$ 2,383
Cost of products [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total share-based compensation expense	419	311	219
Cost of services [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total share-based compensation expense	210	171	87
Research and development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total share-based compensation expense	775	217	281
Sales and marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total share-based compensation expense	920	654	537
General and administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total share-based compensation expense	$ 2,087	$ 1,640	$ 1,259

Shareholders' Equity (Details Textual) $ / shares in Units, $ in Thousands			1 Months Ended	12 Months Ended
	Jan. 10, 2017 USD ($) $ / shares shares	Apr. 08, 2015 USD ($) shares	Jan. 31, 2017 USD ($) shares	Dec. 31, 2017 USD ($) $ / shares shares	Dec. 31, 2016 USD ($) $ / shares	Dec. 31, 2015 USD ($) $ / shares	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2017 ₪ / shares
Shareholders' Equity (Textual)
Net proceeds from offering				$ 35,077		$ 74,180
Options exercisable, description							25% of total options are exercisable one year after the date determined for each optionee and a further 6.25% at the end of each subsequent three-month period for 3 years. Under the Equity Incentive Plans and starting 2017, the Company grants Restricted Stock Units ("RSUs"). The RSU's generally vest over a period of four years of employment. Options and RSU that have vested are exercisable for up to 10 years from the grant date of the options or RSU to each employee.	Generally vest in portions as follows: 50% of total options are exercisable two years after the date determined for each optionee, a further 25% three years after the date determined for each optionee and a 25% four years after the date determined for each optionee.
Ordinary shares available for future grant \| shares				1,875,006
Weighted average fair value of options granted \| $ / shares				$ 9.24	$ 5.64	$ 7.11
Fair value of options vested per share \| $ / shares				$ 5.53
Recognized reduction revenues				$ (2,895)	$ (2,030)
Board of Directors [Member]
Shareholders' Equity (Textual)
Increase in the ordinary shares reserved for issuance \| shares				4,324,412
Restricted Stock Units (RSUs) [Member]
Shareholders' Equity (Textual)
Unrecognized compensation cost				$ 11,177
Weighted average vesting period				3 years
Vested options exercisable term				10 years
Weighted average fair value of options granted \| $ / shares				$ 17.77
MPA [Member]
Shareholders' Equity (Textual)
Warrants to purchase ordinary shares \| shares	2,932,176
Exercise price \| $ / shares	$ 13.03
Payments for purchased products and services	$ 150,000
Vesting period	5 years
Description of the term of the agreement	The warrants are subject to vesting as a function of payments for purchased products and services of up to $150 million over a five years period beginning on May 1, 2016, with the shares vesting incrementally each time Amazon makes a payment totaling $5 million to the Company.
IPO [Member]
Shareholders' Equity (Textual)
Ordinary shares sold \| shares		8,165,000	8,625,000
Net proceeds from offering		$ 73,519	$ 35,077
Convertible ordinary shares \| shares		12,628,741
Initial public offering, description		Company closed its initial public offering ("IPO") whereby 8,165,000 ordinary shares were sold by the Company to the public (inclusive of 1,065,000 ordinary shares pursuant to the full exercise of an overallotment option granted to the underwriters).	Company closed a follow on and secondary offering where by 8,625,000 ordinary shares were sold in the transaction to the public of which 2,300,000 were issued by the Company and 6,325,000 were sold by the selling shareholders (inclusive of 1,125,000 ordinary shares pursuant to the full exercise of an overallotment option granted to the underwriters).
Option [Member]
Shareholders' Equity (Textual)
Ordinary shares, par value \| ₪ / shares									₪ 0.01
Total intrinsic value of options exercised				$ 10,588	$ 7,822	$ 5,281

Earnings (Losses) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Numerator for basic and diluted net earnings (losses) per share:
Net income (loss)	$ (2,015)	$ 828	$ 4,725
Weighted average shares outstanding, net of treasury stock:
Denominator for basic net earnings (losses) per share	33,574,147	30,562,255	24,633,369
Effect of dilutive securities:
Employee share options		1,170,277	1,825,215
Denominator for diluted net earnings (losses) per share	33,574,147	31,732,532	26,458,584
Basic net earnings (losses) per share	$ (0.06)	$ 0.03	$ 0.19
Diluted net earnings (losses) per share	$ (0.06)	$ 0.03	$ 0.18

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Schedule of changes in accumulated balances of other comprehensive income (loss)
Beginning balance	$ (82)	$ (283)
Other comprehensive income before reclassifications	811	273
Amounts reclassified from accumulated other comprehensive income (loss)	(428)	(72)
Net current period other comprehensive income	383	201
Ending Balance	301	(82)
Unrealized Gains (losses) on marketable securities [Member]
Schedule of changes in accumulated balances of other comprehensive income (loss)
Beginning balance	(100)	(227)
Other comprehensive income before reclassifications	104	133
Amounts reclassified from accumulated other comprehensive income (loss)	(34)	(6)
Net current period other comprehensive income	70	127
Ending Balance	(30)	(100)
Unrealized Gains (losses) on cash flowh edges [Member]
Schedule of changes in accumulated balances of other comprehensive income (loss)
Beginning balance	3	(28)
Other comprehensive income before reclassifications	436	97
Amounts reclassified from accumulated other comprehensive income (loss)	(394)	(66)
Net current period other comprehensive income	42	31
Ending Balance	45	3
Foreign currency translation adjustment [Member]
Schedule of changes in accumulated balances of other comprehensive income (loss)
Beginning balance	15	(28)
Other comprehensive income before reclassifications	271	43
Amounts reclassified from accumulated other comprehensive income (loss)
Net current period other comprehensive income	271	43
Ending Balance	$ 286	$ 15

Taxes on Income (Details) - Deferred Income Taxes [Member] - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Valuation Allowance [Line Items]
Carryforward tax losses	$ 3,764	$ 2,015
Other temporary differences	2,307	2,131
Deferred tax assets	6,071	4,146
Deferred tax liability due to property and equipment	(4)	(102)
Valuation allowance	(5,503)	(3,605)
Deferred tax assets, net	$ 564	$ 439

Taxes on Income (Details 1) - USD ($) $ in Thousands	12 Months Ended
Taxes on Income (Details 1) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Taxes on Income [Abstract]
Domestic	$ (3,328)	$ (507)	$ 3,204
Foreign	1,697	1,983	2,230
Income (loss) before taxes on income	$ (1,631)	$ 1,476	$ 5,434

Taxes on Income (Details 2) - USD ($) $ in Thousands	12 Months Ended
Taxes on Income (Details 2) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Taxes on Income [Abstract]
Current taxes	$ 509	$ 829	$ 766
Deferred taxes	(125)	(181)	(57)
Taxes on income	384	648	709
Domestic	(594)	(70)	(113)
Foreign	978	718	822
Taxes on income	$ 384	$ 648	$ 709

Taxes on Income (Details 3) - USD ($) $ in Thousands	12 Months Ended
Taxes on Income (Details 3) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Domestic taxes:
Current taxes	$ (594)	$ (70)	$ (113)
Foreign taxes:
Current taxes	1,103	899	879
Deferred taxes	(125)	(181)	(57)
Foreign	978	718	822
Taxes on income	$ 384	$ 648	$ 709

Taxes on Income (Details 4) - USD ($) $ in Thousands	12 Months Ended
Taxes on Income (Details 4) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Taxes on Income [Abstract]
Beginning of year	$ 1,004	$ 1,074
Lapses of statutes of limitation	(594)	(70)
Cumulative translation adjustments and other	206
Balance at December 31	$ 616	$ 1,004

Taxes on Income (Details 5) - USD ($)
$ / shares in Units, $ in Thousands

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Taxes on Income [Abstract]

Income (loss) before taxes, as reported in the consolidated statements of income

$ (1,631)

$ 1,476

$ 5,434

Theoretical tax expense (benefit) at the Israeli statutory tax rate

(392)

369

1,440

Tax adjustment in respect of different tax rate of foreign subsidiaries

111

114

101

Non-deductible expenses and other permanent differences

143

140

184

Deferred taxes on losses and other temporary differences for which valuation allowance was provided, net

1,899

318

546

Stock based compensation

996

716

606

Change in tax rate

(27)

240

Beneficiary enterprise benefits

^[1]

(1,760)

(1,190)

(1,685)

Foreign exchange differences

^[2]

(375)

Decrease in other uncertain tax positions

(594)

(70)

(113)

Other

Actual tax expense

$ 384

$ 648

$ 709

Basic earnings per share amounts of the benefit resulting from the "Beneficiary Enterprise" status

$ (0.05)

$ 0.04

$ 0.19

Diluted earnings per share amounts of the benefit resulting from the "Beneficiary Enterprise" status

$ (0.05)

$ 0.04

$ 0.17

[1]

Basic earnings per share amounts of the benefit resulting from the "Beneficiary Enterprise" status

[2]

Taxes on Income (Details Textual) - USD ($) $ in Thousands	1 Months Ended		12 Months Ended
Taxes on Income (Details Textual) - USD ($) $ in Thousands	Dec. 22, 2017	Jan. 31, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Taxes on Income (Textual)
Israeli corporate income tax rate			24.00%	25.00%	26.50%
Income tax rate, description				The Israeli Parliament approved the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), which reduces the corporate income tax rate to 24% (instead of 25%) effective from January 1, 2017 and to 23% effective from January 1, 2018.
Limitation of tax benefits, description			The duration of tax benefits is subject to a limitation of the earlier of 12 years from commencement of production, or 14 years from the approval date. The Israeli Companies began to utilize such tax benefits in 2010.
Tax-exempt income			$ 74,896
Reduced corporate tax rate income			$ 18,724
Corporate tax rate, description			A Preferred Company is entitled to a reduced corporate flat tax rate of 16% with respect to its preferred income, unless the Preferred Enterprise is located in a certain development zone, in which case the rate will be 9%. Income derived by a Preferred Company from a "Special Preferred Enterprise" (as such term is defined in the Investment Law) would be entitled, during a benefits period of 10 years, to further reduced tax rates of 8%, or to 5% if the Special Preferred Enterprise is located in a certain development zone.
Dividends paid percentage				20.00%		20.00%
Undistributed earnings of foreign subsidiaries			$ 4,900
Carryforward operating tax losses			50,763
Unrecognized tax benefits			54	$ 0	$ 26
Uncertain tax positions			60	$ 96
Subject to a tax rate		9.00%		7.50%
Undistributed earnings corporate rate			491
Re-measurement deferred tax balance			$ 355
Minimum [Member]
Taxes on Income (Textual)
Subject to a tax rate	21.00%
Maximum [Member]
Taxes on Income (Textual)
Subject to a tax rate	35.00%

Geographic Information (Details) - USD ($) $ in Thousands	12 Months Ended
Geographic Information (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Geographic Information [Line Items]
Revenues, net	$ 114,088	$ 108,694	$ 86,405
U.S [Member]
Geographic Information [Line Items]
Revenues, net	60,541	63,656	45,528
EMEA [Member]
Geographic Information [Line Items]
Revenues, net	32,015	24,720	21,600
Asia Pacific [Member]
Geographic Information [Line Items]
Revenues, net	16,092	11,963	16,042
Other [Member]
Geographic Information [Line Items]
Revenues, net	$ 5,440	$ 8,355	$ 3,235

Geographic Information (Details 1) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Geographic Information [Line Items]
Long-lived assets	$ 11,230	$ 9,247
U.S [Member]
Geographic Information [Line Items]
Long-lived assets	232	268
Israel [Member]
Geographic Information [Line Items]
Long-lived assets	10,342	8,385
EMEA [Member]
Geographic Information [Line Items]
Long-lived assets	378	341
Asia Pacific [Member]
Geographic Information [Line Items]
Long-lived assets	$ 278	$ 253

Geographic Information (Details 2)

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Customer A [Member]

Revenue, Major Customer [Line Items]

Percentage of total revenues

18.00%

21.00%

18.00%

Customer B [Member]

Revenue, Major Customer [Line Items]

Percentage of total revenues

^[1]

15.00%

Customer C [Member]

Revenue, Major Customer [Line Items]

Percentage of total revenues

13.00%

16.00%

[1]	Less than 10%

Geographic Information (Details Textual)	12 Months Ended
Geographic Information (Details Textual)	Dec. 31, 2017 segments
Geographic Information (Textual)
Description of customers total revenus	The customers that represented 10% or more of the Company's total revenues.
Reportable segment, number	1

Selected Statements of Income Data (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Financial income:
Interest on bank deposits and other	$ 69	$ 203	$ 156
Foreign currency translation differences		196	18
Interest on marketable securities	1,930	1,052	260
Total financial income	1,999	1,451	434
Financial expenses:
Bank charges	(244)	(277)	(160)
Foreign currency translation differences	(757)	(674)	(495)
Amortization of premium and accretion of discount on marketable securities	(546)	(454)	(113)
Total financial expenses	(1,547)	(1,405)	(768)
Total financial expense (income):	$ (452)	$ (46)	$ 334

Balances and Transactions with Related Parties (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Oct. 31, 2017	Dec. 31, 2017	Dec. 31, 2015
Fortissimo [Member]
Balances and Transactions With Related Parties (Textual)
Management annual fee		$ 120
Percentage of management net income		5.00%
Property management maximum fee		$ 250
Expenses from transactions with related party			$ 30
Management fee, description		Under the agreement the Company agreed to pay Fortissimo a one-time payment of $750.
Acord Insurance Agency Ltd. ("Acord") [Member]
Balances and Transactions With Related Parties (Textual)
Expenses from transactions with related party		$ 21
Annual Premium		248
Priority Software Ltd. ("Priority") [Member]
Balances and Transactions With Related Parties (Textual)
Expenses from transactions with related party		$ 15
Maintenance fees	$ 32
Cost of licenses	$ 58
Related party transaction, description	In October 2017, the Company amended its contract with Priority, increasing it from 55 general licenses to 250 named licenses including web.