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Document and Entity Information	12 Months Ended
Document and Entity Information	Dec. 31, 2018 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, 2018
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2019
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	35,065,200

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
CURRENT ASSETS:
Cash and cash equivalents	$ 74,132	$ 18,629
Short-term bank deposits	5,000	4,500
Marketable securities	3,981	5,537
Trade receivables, net	21,953	23,245
Inventories	30,030	34,855
Other accounts receivable and prepaid expenses	5,660	2,661
Total current assets	140,756	89,427
LONG-TERM ASSETS:
Marketable securities	44,603	68,835
Deposits and other long term assets	744	627
Severance pay fund	351	523
Deferred taxes	7,272	564
Property, plant and equipment, net	14,994	11,230
Intangible assets, net	1,011	2,076
Goodwill	5,092	5,092
Total long-term assets	74,067	88,947
Total assets	214,823	178,374
CURRENT LIABILITIES:
Trade payables	16,614	12,439
Employees and payroll accruals	7,932	6,338
Deferred revenues and advances from customers	3,633	1,697
Other payables and accrued expenses	4,993	5,046
Total current liabilities	33,172	25,520
LONG TERM LIABILITIES:
Accrued severance pay	1,059	1,232
Payment obligation related to acquisition		334
Other long-term liabilities	1,456	589
Total long-term liabilities	2,515	2,155
SHAREHOLDERS' EQUITY:
Ordinary shares of NIS 0.01 par value - Authorized: 200,000,000 shares at December 31, 2017 and 2018, respectively; Issued and Outstanding: 34,124,223 shares and 35,065,200 shares at December 31, 2017 and 2018, respectively	89	86
Additional paid in capital	156,714	140,170
Accumulated other comprehensive income (loss)	(238)	301
Retained earnings	22,571	10,142
Total shareholders' equity	179,136	150,699
Total liabilities and shareholders' equity	$ 214,823	$ 178,374

Consolidated Balance Sheets (Parenthetical) - ₪ / shares	Dec. 31, 2018	Dec. 31, 2017
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	35,065,200	34,124,223
Ordinary shares, shares outstanding	35,065,200	34,124,223

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenues
Products	$ 125,729	$ 101,953	$ 100,818
Services	16,644	12,135	7,876
Total revenues	142,373	114,088	108,694
Cost of revenues
Products	53,303	46,480	46,483
Services	19,201	13,497	12,801
Total cost of revenues	72,504	59,977	59,284
Gross profit	69,869	54,111	49,410
Operating expenses:
Research and development	21,912	20,834	17,383
Selling and marketing	25,596	21,279	18,338
General and administrative	16,436	13,578	12,259
Restructuring	321	503
Total operating expenses	64,265	56,194	47,980
Operating income (loss)	5,604	(2,083)	1,430
Finance income, net	1,433	452	46
Income (loss) before taxes on income (tax benefit)	7,037	(1,631)	1,476
Taxes on income (tax benefit)	(5,392)	384	648
Net income (loss)	$ 12,429	$ (2,015)	$ 828
Basic net earnings (losses) per share	$ 0.36	$ (0.06)	$ 0.03
Diluted net earnings (losses) per share	$ 0.35	$ (0.06)	$ 0.03

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 12,429	$ (2,015)	$ 828
Change in unrealized gains (losses) on marketable securities:
Unrealized gains (losses) arising during the period, net of tax benefit of $0, $0 and $36, respectively	(887)	104	133
Losses (gains) reclassified into net income (loss)	480	(34)	(6)
Net change	(407)	70	127
Change in unrealized gains (losses) on cash flow hedges:
Unrealized gains arising during the period, net of tax benefit of $0, $0 and $7, respectively	(230)	436	97
Losses (gains) reclassified into net income (loss)	92	(394)	(66)
Net change	(138)	42	31
Foreign currency translation adjustment	6	271	43
Total other comprehensive income (loss), net of tax	(539)	383	201
Comprehensive income (loss)	$ 11,890	$ (1,632)	$ 1,029

Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
Tax benefit from unrealized gains (losses) on marketable securities	$ 36	$ 0	$ 0
Tax benefit unrealized gains (losses) on cash flow hedges	$ 7	$ 0	$ 0

Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Ordinary shares	Additional paid in capital	Accumulated other comprehensive income (loss)	Retained earnings
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 in an amount of $981	35,077	$ 6	35,071
Issuance of ordinary shares in a secondary offering, net of issuance costs in an amount of $981, 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
Exercise of options and vesting of restricted stock units	6,425	$ 3	6,422
Exercise of options and vesting of restricted stock units, shares		940,977
Share-based compensation	5,546		5,546
Warrants to customers	4,576		4,576
Other comprehensive income/loss	(539)			(539)
Net income (loss)	12,429				12,429
Balance at Dec. 31, 2018	$ 179,136	$ 89	$ 156,714	$ (238)	$ 22,571
Balance, shares at Dec. 31, 2018		35,065,200

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

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net income (loss)	$ 12,429	$ (2,015)	$ 828
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	4,965	4,814	2,964
Fair value of warrants deducted from revenues	4,576	2,895	2,030
Share based compensation	5,546	4,411	2,993
Tax benefit related to exercise of stock options			(71)
Amortization of premium on marketable securities	388	546	454
Realized loss (gain) on sale of marketable securities	480	(34)	(6)
Decrease (increase) in trade receivables	1,069	9,081	(9,257)
Decrease (increase) in other receivables and prepaid expenses	(3,135)	1,100	(411)
Decrease (increase) in inventories	4,037	(10,629)	(6,061)
Increase in deferred taxes	(6,665)	(125)	(181)
Increase in other deposits and long-term assets	(121)	(10)	(217)
Increase (decrease) in trade payables	4,394	(3,635)	2,819
Increase in employees and payroll accruals	1,621	360	1,550
Increase (decrease) in deferred revenues and advances from customers	1,981	(31)	675
Increase (decrease) in other payables and accrued expenses	548	(461)	1,879
Increase (decrease) in accrued severance pay, net	(1)	208	180
Increase in other long-term liabilities	867	203	386
Loss from sale of property, plant and Equipment		228	9
Foreign currency translation gain (loss) on intercompany balances with foreign subsidiaries	389	(916)	393
Net cash provided by operating activities	33,368	5,990	956
Cash flows from investing activities:
Purchase of property, plant and equipment	(7,294)	(5,660)	(5,462)
Proceeds from sale of property, plant and equipment		6
Cash paid in connection with acquisition			(9,206)
Proceeds from (investment in) bank deposits	(500)	(4,500)	22,000
Proceeds from sale marketable securities	40,635	39,353	2,086
Proceeds from maturity of marketable securities	6,564	7,240	4,500
Investment in marketable securities	(22,723)	(83,183)	(11,455)
Net cash provided by (used in) investing activities	16,682	(46,744)	2,463
Cash flows from financing activities:
Proceeds from public offering, net of issuance costs		35,077
Exercise of employee stock options	6,425	2,760	958
Payment of issuance cost related to warrants			(90)
Tax benefit related to exercise of stock options			71
Payment of contingent consideration	(900)	(1,400)
Net cash provided by financing activities	5,525	36,437	939
Foreign currency translation adjustments on cash and cash equivalents	(72)	157	(33)
Increase (decrease) in cash and cash equivalents	55,503	(4,160)	4,325
Cash and cash equivalents at the beginning of the period	18,629	22,789	18,464
Cash and cash equivalents at the end of the period	74,132	18,629	22,789
Supplemental disclosure of cash flow information
Cash paid during the year for income taxes	1,797	853	593
Non-cash investing and financing activities:
Property, plant and equipment acquired by credit	222	427	808
Inventory transferred to be used as property, plant and equipment	591	397	1,090
Issuance expenses on credit			$ 362

General

12 Months Ended

Dec. 31, 2018

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.

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, 2018

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 sales 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 at the time of purchase and re-evaluates such determinations at each balance sheet date. The Company classifies its marketable securities as either short-term or long-term based on each instrument’s underlying contractual maturity date and the entity’s expectations of sales and redemptions in the following year.

The Company classifies all of its marketable securities as available-for-sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses, net of tax, reported in “accumulated other comprehensive income (loss)” in shareholders’ equity. Realized gains and losses on sales of marketable securities are included in finance income, 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 income, net.

The Company recognizes an impairment charge when a decline in the fair value of its investments in marketable 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 2016, 2017 and 2018.

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 based upon assumptions about future demand, and is charged to 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, 2016, 2017 and 2018, the Company recorded inventory write offs in a total amount of $2,211, $2,988 and $1,759, respectively.

Property, plant and equipment:

Property, plant 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		7 - 33
Leasehold improvements		*)
Building and land		**)

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.

**)

Building and land consist of land and a new ink manufacturing plant. In September 2018 the company purchased the land which includes long-term leasehold rights, with lease term of 98 years. As of December 31, 2018, the ink manufacturing plant in under construction. Depreciation of the manufacturing plant will begin upon completion of its construction.

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 statement of income in the period incurred.

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, 2016, 2017 and 2018, 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, plant 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, 2016, 2017 and 2018, no impairment losses were recorded.

Revenue recognition:

The Company generates revenues from sales of systems, consumables and services. 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.

The Company recognizes revenues in accordance with ASC No. 606, “Revenue from Contracts with Customers”. As such, the Company recognizes revenue under the core principle that transfer of control to the Company’s customers should be depicted in an amount reflecting the consideration the Company expects to receive in revenue. Therefore, the Company identifies a contract with a customer, identifies the performance obligations in the contract, determines the transaction price, allocates the transaction price to each performance obligation in the contract and recognizes revenues when, or as, the Company satisfies a performance obligation.

Revenues from products, which consist of systems and consumables, are recognized at the point of time when control has transferred, in accordance with the agreed-upon delivery terms. Revenues from services are derived mainly from the sale of print heads, spare parts, upgrade kits and sale of service contracts. The Company’s print heads, spare parts and upgrade kits revenues (collectively “Spare parts”) are recognized at the point of time when control has transferred, in accordance with the agreed-upon delivery terms. Service contracts are recognized over time, on a straight-line basis, over the period of the service.

For multiple performance obligations arrangements, such as selling a system with service contract, installation and training, the Company accounts for each performance obligation separately as it is distinct. The transaction price is allocated to each distinct performance obligation on a relative standalone selling price (“SSP”) basis and revenue is recognized for each performance obligation when control has passed. In most cases, the Company is able to establish SSP based on the observable prices of services sold separately in comparable circumstances to similar customers and for products based on the Company’s best estimates of the price at which the Company would have sold the product regularly on a stand-alone basis. The Company reassesses the SSP on a periodic basis or when facts and circumstances change.

The Company periodically provides customer incentive programs in the form of product discounts, volume-based rebates and warrants (see also note 10f), which are accounted for as a variable considerations that are deducted from 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 according to historical experience and the specific terms and conditions of the incentive.

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 which is estimated, based primarily on historical experience as well as management judgment, and is recorded as reduction of revenue. Such provision amounted to $570 as of December 31, 2018 and is included in accrued expenses and other current liabilities in the consolidated balance sheet. Under Topic 605, the provision of $580 as of December 31, 2017 was presented as a reduction to trade receivables.

Contract liabilities include amounts received from customers for which revenue has not yet been recognized. Contract liabilities amounted to $2,090 and $3,931 as of December 31, 2017 and 2018, respectively and are presented under deferred revenues and advances from customers and other long term liabilities. During the year ended December 31, 2018, the Company recognized revenues in the amount of $1,232 which have been included in the contract liabilities at January 1, 2018.

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.

Revenue disaggregated by revenue source for the years ended December 31, 2016, 2017 and 2018, consists of the following:

	Year ended December 31,
	2016		2017		2018

Systems	$	57,894	$	50,498	$	65,825
Ink and consumables		42,834		51,455		59,904
Spare parts		6,168		9,652		12,377
Service contracts		1,708		2,483		4,267

Total revenue	$	108,694	$	114,088	$	142,373

The following table presents revenue disaggregated by geography based on customer location:

	Year ended December 31,
	2016		2017		2018

U.S	$	63,656	$	60,541	$	77,652
EMEA		24,720		32,015		45,195
Asia Pacific		11,963		16,092		15,572
Other		8,355		5,440		3,954

Total revenue	$	108,694	$	114,088	$	142,373

Remaining performance obligations represents contracted revenues that have not yet been recognized, which includes deferred revenues and non-cancelable contracts that will be invoiced and recognized as revenue in future periods. The following table represents the remaining performance obligations as of December 31, 2018, which are expected to be satisfied and recognized in future periods:

	2019		2020		2021 and thereafter
Product	$	172	$	-	$	-
Services		4,617		1,201		55

Total	$	4,789	$	1,201	$	55

The Company elected to apply the optional exemption under paragraph 606-10-50-14(a) not to disclose the remaining performance obligations that relate to contracts with an original expected duration of one year or less for which deferred revenues have not been recorded yet.

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, 2016, 2017 and 2018 were $768, $1,355 and $1,702, 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, royalties and shipping and handling fees.

Warranty costs:

The Company typically provides assurance type warranty for one-year 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, 2017 to December 31, 2018:

Balance at January 1, 2017	$	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

Provision for warranties issued during the year		3,381
Reduction for payments and costs to satisfy claims		(2,921	)

Balance at December 31, 2018	$	2,237

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 employees of the Company’s Wisconsin facility in connection with the transition of its U.S headquarters to the East Coast in the United States.

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 operations.

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, 2016, 2017 and 2018:

	Year ended December 31,
	2016			2017			2018

Suboptimal exercise multiple		1.0-1.5			1.0-1.5			1.0-1.5
Risk free interest rate		0.3%-2.2	%		2.2%-2.3	%		2.0%-3.1	%
Volatility		54%-56	%		51%-53	%		47%-51	%
Dividend yield		0	%		0	%		0	%

The expected volatility is based on volatility of the Company’s share price and 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 options are exercised or RSU’s vests.

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, 2017 and 2018, the fair value of the Company’s outstanding forward and option contracts amounted to $45 and $(111) which is included within “Other accounts receivable and prepaid expenses” and “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, 2017, and 2018, the Company had outstanding hedging contracts in the notional amount of $3,651 and $10,581, respectively.

Advertising:

Advertising costs are charged to operations as incurred and were $526, $612 and $1,077 for the years ended December 31, 2016, 2017 and 2018, 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 amounting to $216, $97 and $19 were recorded for the years ended December 31, 2016, 2017 and 2018, 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 and Garden leave pay expenses for the years ended December 31, 2016, 2017 and 2018 were $1,590, $2,088 and $3,124 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 marketable 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”.

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 1,498,503 and 884,028 for the years ended December 31, 2016 and 2018, respectively. 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.

aa.

Recently adopted accounting standard:

In May 2014, the Financial Accounting Standards Board (“FASB”) issued new guidance related to revenue recognition: “Revenue from Contracts with Customers” (“ASC 606”), which outlines a comprehensive revenue recognition model and supersedes most current revenue recognition guidance. The Company adopted ASC 606 on January 1, 2018, using the modified retrospective transition method applied to those contracts which were not completed as of January 1, 2018. The new standard application had no material effect on the pattern of revenue recognition, nevertheless, the revenue recognition disclosure has been adjusted in accordance to ASC 606 guidance. See Revenue Recognition above for further details.

bb.

Impact of recently issued accounting standard and not yet adopted:

In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-02 (Topic 842) “Leases.” Topic 842 supersedes the lease requirements in Accounting Standards Codification (ASC) Topic 840, “Leases.” Under Topic 842, lessees are required to recognize assets and liabilities on the balance sheet for most leases and provide enhanced disclosures. Leases will continue to be classified as either finance or operating. This ASU is effective for annual periods beginning after December 15, 2018. The provisions of ASU 2016-02 are to be applied using a modified retrospective approach. In July 2018, the FASB issued Accounting Standards Update 2018-11, Leases (Topic 842). This update provides entities with an additional (and optional) transition method to adopt the new leases standard. Under this method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, the prior comparative period’s financials will remain the same as those previously presented.

The Company has elected to apply the guidance at the beginning of the period of adoption and not restate comparative periods. In addition, the Company elected the available practical expedients on adoption.

The Company expect to record right-of-use leased assets and corresponding liabilities of approximately $15,000 at January 1, 2019.

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 currently evaluating the potential effect on its 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, with early adoption permitted. The Company does not expect that this new guidance will have a material impact on the Company’s 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 does not expect that this new guidance will have a material impact on the Company’s Consolidated Financial Statements.

In June 2018, the FASB issued ASU No. 2018-07, “Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting.” These amendments expand the scope of Topic 718, Compensation - Stock Compensation (which currently only includes share-based payments to employees) to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. This ASU supersedes Subtopic 505-50, Equity - Equity-Based Payments to Non-Employees. The guidance is effective for the interim and annual periods beginning after December 15, 2018, and early adoption is permitted. The Company is currently evaluating the potential effect on its consolidated financial statements.

Acquisition

12 Months Ended

Dec. 31, 2018

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 $2,470, $1,234 and $303 as of December 31, 2016, 2017 and 2018, 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, 2018

Fair Value Measurements [Abstract]

FAIR VALUE MEASUREMENTS

NOTE 4:-

FAIR VALUE MEASUREMENTS

The following is a summary of marketable securities:

	December 31, 2018
	Amortized cost		Gross unrealized gain		Gross unrealized loss			Fair value

Matures within one year:
Corporate debentures	$	3,999	$	-	$	(18	)	$	3,981
		3,999		-		(18	)		3,981

Matures after one year through three years:
Corporate debentures		33,698		29		(346	)		33,381
Government debentures		11,360		-		(138	)		11,222
		45,058		29		(484	)		44,603

Total	$	49,057	$	29	$	(502	)	$	48,584

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

Matures within one year:
Corporate debentures	$	5,190	$	50	$	(9	)	$	5,231
Government debentures		295		12		(1	)		306
		5,485		62		(10	)		5,537

Matures after one year through three years:
Corporate debentures		56,514		137		(202	)		56,449
Government debentures		12,403		8		(25	)		12,386
		68,917		145		(227	)		68,835

Total	$	74,402	$	207	$	(237	)	$	74,372

Investments with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values were as follows:

	December 31, 2018
	Less than 12 months					12 months or greater					Total
	Fair value		Unrealized Losses			Fair value		Unrealized Losses			Fair value		Unrealized Losses

Corporate debentures	$	12,017	$	(126	)	$	16,547	$	(238	)	$	28,564	$	(364	)
Government debentures		8,864		(117	)		2,357		(21	)		11,221		(138	)

Total	$	20,881	$	(243	)	$	18,904	$	(259	)	$	39,785	$	(502	)

	December 31, 2017
	Less than 12 months					12 months or greater				Total
	Fair value		Unrealized Losses			Fair value		Unrealized Losses		Fair value		Unrealized Losses

Corporate debentures	$	43,852	$	(211	)	$	-	$	-	$	43,852	$	(211	)
Government debentures		2,854		(26	)		-		-		2,854		(26	)

Total	$	46,706	$	(237	)	$	-	$	-	$	46,706	$	(237	)

The below table sets forth the Company’s assets and liabilities that were measured at fair value as of December 31, 2018 and December 31, 2017 by level within the fair value hierarchy.

	December 31, 2018
	Level 1		Level 2		Level 3		Total
Assets:
Marketable securities	$	-	$	48,584	$	-	$	48,584

Total financial assets	$	-	$	48,584	$	-	$	48,584

Liabilities:
Foreign currency derivative contracts	$	-	$	111	$	-	$	111

Total liabilities	$	-	$	111	$	-	$	111

	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

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

Total fair value as of January 1, 2018	$	334
Settlement of payment obligation *)		(303	)
Accretion of payment obligation		44
Reversal of payment obligation **)		(75	)

Total fair value as of December 31, 2018	$	0

$303 is included within other payables and accrued expenses on the balance sheet.

**)

The set milestone was met only at 76% as of December 31, 2018. The reversal of payment obligations was recognized in operating expenses.

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. 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, 2018

Inventories [Abstract]

INVENTORIES

NOTE 5:-

INVENTORIES

	December 31,
	2017		2018

Raw materials and components	$	15,756	$	17,425
Finished products (*)		19,099		12,605

	$	34,855	$	30,030

(*)

Including amounts of $34 and $836 for the years ended December 31, 2017 and 2018, respectively, with respect to inventory delivered to customers for which revenue was not yet recognized.

Property, Plant and Equipment, Net

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment, Net [Abstract]

PROPERTY, PLANT AND EQUIPMENT, NET

NOTE 6:-

PROPERTY, PLANT AND EQUIPMENT, NET

	December 31,
	2017			2018
Cost:

Computer and peripheral equipment	$	2,616		$	3,182
Office furniture and equipment		1,497			1,757
Machinery and equipment		11,098			12,230
Leasehold improvements		7,022			8,505
Building and land		-			3,343

		22,233			29,017

Accumulated depreciation		(11,003	)		(14,023	)

Property, plant and equipment, net	$	11,230		$	14,994

Depreciation expenses for the years ended December 31, 2016, 2017 and 2018 were $2,447, $3,505 and $3,900 respectively.

During the years ended December 31, 2016, 2017 and 2018, the Company recorded a reduction of $297, $298 and $861, respectively to the cost and accumulated depreciation of fully depreciated equipment no longer used.

Intangible Assets, Net

12 Months Ended

Dec. 31, 2018

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	2017		2018
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			866		966
Customer relationships			1,404		2,302
Non-competition agreement			99		166

			2,369		3,434

Intangible assets, net		$	2,076	$	1,011

Amortization expenses for the years ended December 31, 2016, 2017 and 2018 were $519, $1,309 and $1,065, respectively.

Future amortization expenses for the years ending:

December 31,

2019	$	432
2020		136
2021		143
2022		100
2023 and thereafter		200

	$	1,011

Other Payables and Accrued Expenses

12 Months Ended

Dec. 31, 2018

Other Payables and Accrued Expenses [Abstract]

OTHER PAYABLES AND ACCRUED EXPENSES

NOTE 8:-

OTHER PAYABLES AND ACCRUED EXPENSES

	December 31,
	2017		2018

Government authorities	$	867	$	253
Warranty provision		1,680		1,909
Professional services		470		412
Payment obligation related to acquisition		900		303
Restructuring		503		-
Provision for return		-		570
Accrued expenses		626		1,546

	$	5,046	$	4,993

Commitments and Contingent Liabilities

12 Months Ended

Dec. 31, 2018

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 2028. Aggregate minimum lease and rental payments under non-cancelable operating leases as of December 31, 2018, are (in the aggregate) and for each succeeding fiscal year below:

December 31,

2019	$	2,549
2020		2,415
2021		2,114
2022		1,998
2023 and thereafter		5,335

	$	14,411

Total rent expenses for the years ended December 31, 2016, 2017 and 2018 were $1,664, $2,963 and $2,663, respectively.

Charges:

As of December 31, 2018, 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, 2018. 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, 2018, the Company has not utilized its line of credits.

Purchase commitments:

As of December 31, 2018, the Company has $12,596 of purchase commitments for goods and services from vendors. These commitments are due primarily within one year.

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 in 2016, the Company is obligated to pay 2.5% royalties of its annual ink revenues up to an annual maximum amount of $625.

Royalties expenses for the years ended December 31, 2016, 2017 and 2018 were $625.

Guarantees:

As of December 31, 2018, the Company provided two bank guarantees of $370 in the aggregate for its rented facilities.

Shareholders' Equity

12 Months Ended

Dec. 31, 2018

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.

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.

On May 15, 2017 and December 7, 2018, the Company made additional underwritten secondary offerings of 4,250,000 and 3,132,481 ordinary shares respectively, by the Company’s major shareholder. The Company did not receive any of the proceeds from the sale of these ordinary shares.

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		2,360,647		$	10.76		8.05	$	13,588
Granted		449,276			18.69		9.53
Exercised		(918,380	)		6.82		6.45
Forfeited		(307,979	)		13.54		7.95

Outstanding at end of year		1,583,564		$	14.71		8.19	$	6,536

Exercisable at end of year		619,711		$	12.37		7.42	$	4,011

As of December 31, 2018, $8,029 in unrecognized compensation cost related to share options is expected to be recognized over a weighted average vesting period of 2.89 years.

The weighted average fair value of options granted during the years ended December 31, 2016, 2017 and 2018 were $5.64, $9.24 and $9.5 per share, respectively. The weighted average fair value of options vested during the year ended December 31, 2018 was $6.71. The total intrinsic value of options exercised during the years ended December 31, 2016, 2017 and 2018 were $7,822, $10,588 and $11,775, respectively.

The options outstanding as of December 31, 2018, have been classified by exercise price, as follows:

	Options outstanding at December 31, 2018						Options exercisable at December 31, 2018
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

0.36-2.17		71,035		2.05		5.81		71,035		2.05		5.81
9.38-9.97		122,770		9.93		6.04		112,259		9.97		5.96
10.05-11.90		356,546		10.24		7.57		142,766		10.11		7.52
13.4-15.29		149,185		14.48		7.08		104,014		14.53		7.22
15.80-18.05		423,989		17.52		8.69		118,360		17.62		8.66
18.8-21.15		460,039		18.91		9.53		71,277		19.06		9.4

		1,583,564						619,711

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

	Number of RSUs

Unvested at beginning of year		88,759
Granted		370,417
Vested		(22,597	)
Forfeited		(22,159	)
Unvested at the end of the year		414,420

The weighted average fair values at grant date of RSUs granted for the years ended December 31, 2017 and 2018 were $17.77 and $17.1, respectively. The total fair value of shares vested during the year ended December 31, 2018 was $421.

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. 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 2018, the Board of Directors approved an increase in the ordinary shares reserved for issuance to 5,376,368 ordinary shares. As of December 31, 2018, an aggregate of 1,960,465 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, 2016, 2017 and 2018:

	Year ended December 31,
	2016		2017		2018

Cost of products	$	311	$	419	$	494
Cost of services		171		210		398
Research and development		217		775		1,022
Sales and marketing		654		920		1,240
General and administrative		1,640		2,087		2,392

Total share-based compensation expense	$	2,993	$	4,411	$	5,546

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 at an exercise price of $13.04 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. As of December 31, 2018, 1,111,773 warrants are exercisable.

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 exercise price, estimated ordinary share price volatility and risk-free interest rate, among others. The Company recognized a reduction to revenues of $2,030, $2,895 and $4,576 during the years ended December 31, 2016, 2017 and 2018, respectively.

Earnings (Losses) Per Share

12 Months Ended

Dec. 31, 2018

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,
	2016		2017			2018
Numerator for basic and diluted net earnings (losses) per share:

Net income (loss)	$	828	$	(2,015	)	$	12,429

Weighted average shares outstanding:

Denominator for basic net earnings (losses) per share		30,562,255		33,574,147			34,521,352
Effect of dilutive securities:
Employee share options and restricted share units		1,170,277		-			842,352

Denominator for diluted net earnings (losses) per share		31,732,532		33,574,147			35,363,704

Basic net earnings (losses) per share	$	0.03	$	(0.06	)	$	0.36

Diluted net earnings (losses) per share	$	0.03	$	(0.06	)	$	0.35

Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2018

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, 2018:
Beginning balance	$	(30	)	$	45		$	286	$	301
Other comprehensive income (loss) before reclassifications		(887	)		(230	)		6		(1,111	)
Amounts reclassified from accumulated other comprehensive income (loss)		480			92			-		572

Net current period other comprehensive income (loss)		(407	)		(138	)		6		(539	)

Ending Balance	$	(437	)	$	(93	)	$	292	$	(238	)

	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

Taxes on Income

12 Months Ended

Dec. 31, 2018

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: 2016: 25%, 2017: 24% and 2018: 23%.

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, 2018, tax-exempt income of $100,920 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 $23,212 would be incurred as of December 31, 2018.

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%). Pursuant to Amendment 73 to the Investment Law adopted in 2017, a Company that meets the conditions for “Preferred Technological Enterprises”, is subject to tax rate of 12%.

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, 2018 was $7,240. If these undistributed earnings are distributed, they would be taxed at the corporate tax rate applicable to such income, and $587 would be incurred as of December 31, 2018.

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 re-measured its U.S. deferred tax assets and liabilities, based on the new rates at which they are expected to reverse in the future. The tax expense recorded in 2017, related to the re-measurement of the deferred tax balance was $355.

Final tax assessments:

The Company and its Israeli subsidiary received final tax assessments through 2012. The U.S subsidiary received final tax assessment through 2012 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 $58,243 as of December 31, 2018 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,
	2017			2018

Carryforward tax losses	$	3,764		$	3,538
Share-based compensation		424			976
R&D expenses		1,331			1,414
Other temporary differences		552			1,354

Deferred tax assets		6,071			7,282

Deferred tax liability due to property, plant and equipment		(4	)		(10	)

Valuation allowance		(5,503	)		-

Deferred tax assets, net	$	564		$	7,272

The Company records net deferred tax assets to the extent it believes these assets will more likely than not be realized. As of each reporting date, management considers new evidence, both positive and negative, that could impact management’s view with regards to the future realization of deferred tax assets for each jurisdiction. During the year ended December 31, 2018, the Company released $5,503 of valuation allowance against the deferred tax assets primarily related to NOL carryforwards.

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

	Year ended December 31,
	2016			2017			2018

Domestic	$	(507	)	$	(3,328	)	$	4,458
Foreign		1,983			1,697			2,579

Income (loss) before income taxes	$	1,476		$	(1,631	)	$	7,037

Taxes on income are comprised as follows:

	Year ended December 31,
	2016			2017			2018

Current taxes	$	829		$	509		$	1,088
Deferred taxes		(181	)		(125	)		(6,480	)

	$	648		$	384		$	(5,392	)

Domestic	$	(70	)	$	(594	)	$	(6,050	)
Foreign		718			978			658

	$	648		$	384		$	(5,392	)

	Year ended December 31,
	2016			2017			2018
Domestic taxes:

Current taxes	$	(70	)	$	(594	)	$	333
Deferred taxes		-			-			(6,383	)

		(70	)		(594	)		(6,050	)

Foreign taxes:

Current taxes		899			1,103			755
Deferred taxes		(181	)		(125	)		(97	)

		718			978			658

Taxes on income	$	648		$	384		$	(5,392	)

Uncertain tax positions:

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

	December 31,
	2017			2018

Beginning of year	$	1,691		$	1,521
Increases related to tax positions taken during prior years		-			452
Decreases related to expiration of statute of limitations		(594	)		-
Increases related to tax positions taken during the current year		218			313
Cumulative translation adjustments and other		206			(46	)

Balance at December 31 *)	$	1,521		$	2,240

*) As of December 31, 2017, and 2018 unrecognized tax benefit in the amount of $905 and $1,218 were presented as a reduction from deferred taxes.

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, 2016, 2017 and 2018, an amount of $0, $54 and $115, 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, 2017, and 2018, the Company had accrued interest related to uncertain tax positions in the amounts of $60 and $171, 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,
	2016			2017			2018

Income (loss) before taxes, as reported in the consolidated statements of income	$	1,476		$	(1,631	)	$	7,037

Theoretical tax expense (benefit) at the Israeli statutory tax rate		369			(392	)		1,618
Tax adjustment in respect of different tax rate of foreign subsidiaries		114			111			43
Non-deductible expenses and other permanent differences		140			143			64
Deferred taxes on losses and other temporary differences for which valuation allowance was provided, net		318			1,899			(5,503	)
Stock based compensation		716			996			1,161
Change in tax rate		240			355			-
Beneficiary enterprise benefits (*)		(1,190	)		(2,360	)		(3,469	)
Increase (Decrease) in other uncertain tax positions		(70	)		(376	)		765
Other		11			8			(71	)

Actual tax expense (benefit)	$	648		$	384		$	(5,392	)

(*) Basic and diluted earnings per share amounts of the benefit resulting from the “Beneficiary Enterprise” status		0.04			0.07			0.10

Geographic Information

12 Months Ended

Dec. 31, 2018

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 following table presents long-lived assets by geographic region as of December 31, 2017 and 2018:

	December 31,
	2017		2018

U.S	$	232	$	1,839
Israel		10,342		12,581
EMEA		378		328
Asia Pacific		278		246

	$	11,230	$	14,994

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,
	2016			2017			2018

Customer A		21	%		18	%		15	%
Customer B		16	%		13	%		17	%

Selected Statements of Income Data

12 Months Ended

Dec. 31, 2018

Selected Statements of Income Data [Abstract]

SELECTED STATEMENTS OF INCOME DATA

NOTE 15:-

SELECTED STATEMENTS OF INCOME DATA

Financial income, net:

	Year ended December 31,
	2016			2017			2018
Financial income:

Interest on bank deposits and other	$	203		$	69		$	406
Exchange rate differences, net		-			-			87
Realized gain on sale of marketable securities, net		6			34			-
Interest on marketable securities		1,046			1,896			2,107

		1,255			1,999			2,600
Financial expenses:

Bank charges		(277	)		(244	)		(299	)
Exchange rate differences, net		(478	)		(757	)		-
Realized loss on sale of marketable securities, net		-			-			(480	)
Amortization of premium and accretion of discount on marketable securities, net		(454	)		(546	)		(388	)

		(1,209	)		(1,547	)		(1,167	)

Total financial income:	$	46		$	452		$	1,433

Balances and Transactions with Related Parties

12 Months Ended

Dec. 31, 2018

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.

Acord Insurance Agency Ltd. (“Acord”)

Acord is an insurance company which is owned, in part, by the Chairman of the Board. Starting December 1, 2017, the Company entered a one-year business and professional insurance contract with Acord, which was renewed for additional one-year period on December 1, 2018. The total annual premium under the contract is $248.

Priority Software Ltd. (“Priority”)

Priority is the Company’s ERP solution provider, which is owned, in part by few of the Company’s Board members. 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 additional licenses was $58. During the years ended December 31, 2016, 2017 and 2018 maintenances fees amounted to $8, $32 and $30, respectively.

Subsequent Event

12 Months Ended

Dec. 31, 2018

Subsequent Event [Abstract]

SUBSEQUENT EVENT

NOTE 17:-

SUBSEQUENT EVENT

On February 7, 2019 (the “Closing Date”), the Company has closed a definitive asset purchase agreement with Hirsch Solutions Inc., the Company’s primary distributor in the United States and Canada, which accounted for 21%, 18% and 15% of its revenues in the years ended December 31, 2016, 2017 and 2018, respectively, to purchase the Company’s remaining business assets related to the distribution agreement between the companies for a total consideration of $4,715.

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2018

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:

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 income, net.

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, 2016, 2017 and 2018, the Company recorded inventory write offs in a total amount of $2,211, $2,988 and $1,759, respectively.

Property, plant and equipment:

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

**)

Business combinations:

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

Goodwill and other Intangible assets:

Goodwill and other intangible assets:

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

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

During the years ended December 31, 2016, 2017 and 2018, no impairment losses were recorded.

Revenue recognition:

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.

Revenue disaggregated by revenue source for the years ended December 31, 2016, 2017 and 2018, consists of the following:

	Year ended December 31,
	2016		2017		2018

Systems	$	57,894	$	50,498	$	65,825
Ink and consumables		42,834		51,455		59,904
Spare parts		6,168		9,652		12,377
Service contracts		1,708		2,483		4,267

Total revenue	$	108,694	$	114,088	$	142,373

The following table presents revenue disaggregated by geography based on customer location:

	Year ended December 31,
	2016		2017		2018

U.S	$	63,656	$	60,541	$	77,652
EMEA		24,720		32,015		45,195
Asia Pacific		11,963		16,092		15,572
Other		8,355		5,440		3,954

Total revenue	$	108,694	$	114,088	$	142,373

	2019		2020		2021 and thereafter
Product	$	172	$	-	$	-
Services		4,617		1,201		55

Total	$	4,789	$	1,201	$	55

Shipping and Handling:

Cost of revenues:

Warranty costs:

The followings are the changes in the liability for product warranty from January 1, 2017 to December 31, 2018:

Balance at January 1, 2017	$	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

Provision for warranties issued during the year		3,381
Reduction for payments and costs to satisfy claims		(2,921	)

Balance at December 31, 2018	$	2,237

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,
	2016			2017			2018

Suboptimal exercise multiple		1.0-1.5			1.0-1.5			1.0-1.5
Risk free interest rate		0.3%-2.2	%		2.2%-2.3	%		2.0%-3.1	%
Volatility		54%-56	%		51%-53	%		47%-51	%
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, 2017, and 2018, the Company had outstanding hedging contracts in the notional amount of $3,651 and $10,581, respectively.

Advertising:

Advertising costs are charged to operations as incurred and were $526, $612 and $1,077 for the years ended December 31, 2016, 2017 and 2018, respectively.

Income taxes:

Concentrations of credit risks:

Severance pay:

Severance and Garden leave pay expenses for the years ended December 31, 2016, 2017 and 2018 were $1,590, $2,088 and $3,124 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:

Recently adopted accounting standard:

aa.

Recently adopted accounting standard:

Impact of recently issued accounting standard and not yet adopted:

bb.

Impact of recently issued accounting standard and not yet adopted:

The Company expect to record right-of-use leased assets and corresponding liabilities of approximately $15,000 at January 1, 2019.

Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

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		7 - 33
Leasehold improvements		*)
Building and land		**)

**)

Schedule of revenue disaggregated by revenue source

	Year ended December 31,
	2016		2017		2018

Systems	$	57,894	$	50,498	$	65,825
Ink and consumables		42,834		51,455		59,904
Spare parts		6,168		9,652		12,377
Service contracts		1,708		2,483		4,267

Total revenue	$	108,694	$	114,088	$	142,373

Schedule of revenue disaggregated by geography based on customer location

	Year ended December 31,
	2016		2017		2018

U.S	$	63,656	$	60,541	$	77,652
EMEA		24,720		32,015		45,195
Asia Pacific		11,963		16,092		15,572
Other		8,355		5,440		3,954

Total revenue	$	108,694	$	114,088	$	142,373

Schedule of outstanding performance obligations of deferred revenues

	2019		2020		2021 and thereafter
Product	$	172	$	-	$	-
Services		4,617		1,201		55

Total	$	4,789	$	1,201	$	55

Schedule of changes in liability for product warranty

Balance at January 1, 2017	$	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

Provision for warranties issued during the year		3,381
Reduction for payments and costs to satisfy claims		(2,921	)

Balance at December 31, 2018	$	2,237

Schedule of fair value method for share-based compensation awards

	Year ended December 31,
	2016			2017			2018

Suboptimal exercise multiple		1.0-1.5			1.0-1.5			1.0-1.5
Risk free interest rate		0.3%-2.2	%		2.2%-2.3	%		2.0%-3.1	%
Volatility		54%-56	%		51%-53	%		47%-51	%
Dividend yield		0	%		0	%		0	%

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Measurements [Abstract]

Schedule of available-for-sale marketable securities

	December 31, 2018
	Amortized cost		Gross unrealized gain		Gross unrealized loss			Fair value

Matures within one year:
Corporate debentures	$	3,999	$	-	$	(18	)	$	3,981
		3,999		-		(18	)		3,981

Matures after one year through three years:
Corporate debentures		33,698		29		(346	)		33,381
Government debentures		11,360		-		(138	)		11,222
		45,058		29		(484	)		44,603

Total	$	49,057	$	29	$	(502	)	$	48,584

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

Matures within one year:
Corporate debentures	$	5,190	$	50	$	(9	)	$	5,231
Government debentures		295		12		(1	)		306
		5,485		62		(10	)		5,537

Matures after one year through three years:
Corporate debentures		56,514		137		(202	)		56,449
Government debentures		12,403		8		(25	)		12,386
		68,917		145		(227	)		68,835

Total	$	74,402	$	207	$	(237	)	$	74,372

Schedule of investments unrealized losses

	December 31, 2018
	Less than 12 months					12 months or greater					Total
	Fair value		Unrealized Losses			Fair value		Unrealized Losses			Fair value		Unrealized Losses

Corporate debentures	$	12,017	$	(126	)	$	16,547	$	(238	)	$	28,564	$	(364	)
Government debentures		8,864		(117	)		2,357		(21	)		11,221		(138	)

Total	$	20,881	$	(243	)	$	18,904	$	(259	)	$	39,785	$	(502	)

	December 31, 2017
	Less than 12 months					12 months or greater				Total
	Fair value		Unrealized Losses			Fair value		Unrealized Losses		Fair value		Unrealized Losses

Corporate debentures	$	43,852	$	(211	)	$	-	$	-	$	43,852	$	(211	)
Government debentures		2,854		(26	)		-		-		2,854		(26	)

Total	$	46,706	$	(237	)	$	-	$	-	$	46,706	$	(237	)

Schedule of fair value measurement

	December 31, 2018
	Level 1		Level 2		Level 3		Total
Assets:
Marketable securities	$	-	$	48,584	$	-	$	48,584

Total financial assets	$	-	$	48,584	$	-	$	48,584

Liabilities:
Foreign currency derivative contracts	$	-	$	111	$	-	$	111

Total liabilities	$	-	$	111	$	-	$	111

	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

Schedule of fair value measurements within level 3

Total fair value as of January 1, 2018	$	334
Settlement of payment obligation *)		(303	)
Accretion of payment obligation		44
Reversal of payment obligation **)		(75	)

Total fair value as of December 31, 2018	$	0

$303 is included within other payables and accrued expenses on the balance sheet.

**)

The set milestone was met only at 76% as of December 31, 2018. The reversal of payment obligations was recognized in operating expenses.

Inventories (Tables)

12 Months Ended

Dec. 31, 2018

Inventories [Abstract]

Schedule of inventories

	December 31,
	2017		2018

Raw materials and components	$	15,756	$	17,425
Finished products (*)		19,099		12,605

	$	34,855	$	30,030

(*)

Including amounts of $34 and $836 for the years ended December 31, 2017 and 2018, respectively, with respect to inventory delivered to customers for which revenue was not yet recognized.

Property, Plant and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment, Net [Abstract]

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

	December 31,
	2017			2018
Cost:

Computer and peripheral equipment	$	2,616		$	3,182
Office furniture and equipment		1,497			1,757
Machinery and equipment		11,098			12,230
Leasehold improvements		7,022			8,505
Building and land		-			3,343

		22,233			29,017

Accumulated depreciation		(11,003	)		(14,023	)

Property, plant and equipment, net	$	11,230		$	14,994

Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2018

Intangible Assets, Net [Abstract]

Schedule of intangible assets

	Weighted average amortization period	December 31,
	Years	2017		2018
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			866		966
Customer relationships			1,404		2,302
Non-competition agreement			99		166

			2,369		3,434

Intangible assets, net		$	2,076	$	1,011

Summary of future amortization expenses

December 31,

2019	$	432
2020		136
2021		143
2022		100
2023 and thereafter		200

	$	1,011

Other Payables and Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2018

Other Payables and Accrued Expenses [Abstract]

Schedule of other payable and accrued expenses

	December 31,
	2017		2018

Government authorities	$	867	$	253
Warranty provision		1,680		1,909
Professional services		470		412
Payment obligation related to acquisition		900		303
Restructuring		503		-
Provision for return		-		570
Accrued expenses		626		1,546

	$	5,046	$	4,993

Commitments and Contingent Liabilities (Tables)

12 Months Ended

Dec. 31, 2018

Commitments and Contingent Liabilities [Abstract]

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

December 31,

2019	$	2,549
2020		2,415
2021		2,114
2022		1,998
2023 and thereafter		5,335

	$	14,411

Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2018

Shareholders' Equity [Abstract]

Schedule 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		2,360,647		$	10.76		8.05	$	13,588
Granted		449,276			18.69		9.53
Exercised		(918,380	)		6.82		6.45
Forfeited		(307,979	)		13.54		7.95

Outstanding at end of year		1,583,564		$	14.71		8.19	$	6,536

Exercisable at end of year		619,711		$	12.37		7.42	$	4,011

Schedule of options outstanding and options exercisable

	Options outstanding at December 31, 2018						Options exercisable at December 31, 2018
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

0.36-2.17		71,035		2.05		5.81		71,035		2.05		5.81
9.38-9.97		122,770		9.93		6.04		112,259		9.97		5.96
10.05-11.90		356,546		10.24		7.57		142,766		10.11		7.52
13.4-15.29		149,185		14.48		7.08		104,014		14.53		7.22
15.80-18.05		423,989		17.52		8.69		118,360		17.62		8.66
18.8-21.15		460,039		18.91		9.53		71,277		19.06		9.4

		1,583,564						619,711

Schedule of the RSUs activity

	Number of RSUs

Unvested at beginning of year		88,759
Granted		370,417
Vested		(22,597	)
Forfeited		(22,159	)
Unvested at the end of the year		414,420

Schedule of share-based compensation expense

	Year ended December 31,
	2016		2017		2018

Cost of products	$	311	$	419	$	494
Cost of services		171		210		398
Research and development		217		775		1,022
Sales and marketing		654		920		1,240
General and administrative		1,640		2,087		2,392

Total share-based compensation expense	$	2,993	$	4,411	$	5,546

Earnings (Losses) Per Share (Tables)

12 Months Ended

Dec. 31, 2018

Earnings (Losses) Per Share [Abstract]

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

	Year ended December 31,
	2016		2017			2018
Numerator for basic and diluted net earnings (losses) per share:

Net income (loss)	$	828	$	(2,015	)	$	12,429

Weighted average shares outstanding:

Denominator for basic net earnings (losses) per share		30,562,255		33,574,147			34,521,352
Effect of dilutive securities:
Employee share options and restricted share units		1,170,277		-			842,352

Denominator for diluted net earnings (losses) per share		31,732,532		33,574,147			35,363,704

Basic net earnings (losses) per share	$	0.03	$	(0.06	)	$	0.36

Diluted net earnings (losses) per share	$	0.03	$	(0.06	)	$	0.35

Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2018

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, 2018:
Beginning balance		$	(30	)		$	45			$	286		$	301
Other comprehensive income (loss) before reclassifications			(887	)			(230	)			6			(1,111	)
Amounts reclassified from accumulated other comprehensive income (loss)			480				92				-			572

Net current period other comprehensive income (loss)			(407	)			(138	)			6			(539	)

Ending Balance		$	(437	)		$	(93	)		$	292		$	(238	)

	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

Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2018

Taxes on Income [Abstract]

Schedule of deferred tax liabilities and assets

	December 31,
	2017			2018

Carryforward tax losses	$	3,764		$	3,538
Share-based compensation		424			976
R&D expenses		1,331			1,414
Other temporary differences		552			1,354

Deferred tax assets		6,071			7,282

Deferred tax liability due to property, plant and equipment		(4	)		(10	)

Valuation allowance		(5,503	)		-

Deferred tax assets, net	$	564		$	7,272

Schedule of income (loss) before income taxes

	Year ended December 31,
	2016			2017			2018

Domestic	$	(507	)	$	(3,328	)	$	4,458
Foreign		1,983			1,697			2,579

Income (loss) before income taxes	$	1,476		$	(1,631	)	$	7,037

Schedule of taxes on income

	Year ended December 31,
	2016			2017			2018

Current taxes	$	829		$	509		$	1,088
Deferred taxes		(181	)		(125	)		(6,480	)

	$	648		$	384		$	(5,392	)

Domestic	$	(70	)	$	(594	)	$	(6,050	)
Foreign		718			978			658

	$	648		$	384		$	(5,392	)

	Year ended December 31,
	2016			2017			2018
Domestic taxes:

Current taxes	$	(70	)	$	(594	)	$	333
Deferred taxes		-			-			(6,383	)

		(70	)		(594	)		(6,050	)

Foreign taxes:

Current taxes		899			1,103			755
Deferred taxes		(181	)		(125	)		(97	)

		718			978			658

Taxes on income	$	648		$	384		$	(5,392	)

Schedule of unrecognized tax benefits

	December 31,
	2017			2018

Beginning of year	$	1,691		$	1,521
Increases related to tax positions taken during prior years		-			452
Decreases related to expiration of statute of limitations		(594	)		-
Increases related to tax positions taken during the current year		218			313
Cumulative translation adjustments and other		206			(46	)

Balance at December 31 *)	$	1,521		$	2,240

*) As of December 31, 2017, and 2018 unrecognized tax benefit in the amount of $905 and $1,218 were presented as a reduction from deferred taxes.

Schedule of statutory tax rate

	Year ended December 31,
	2016			2017			2018

Income (loss) before taxes, as reported in the consolidated statements of income	$	1,476		$	(1,631	)	$	7,037

Theoretical tax expense (benefit) at the Israeli statutory tax rate		369			(392	)		1,618
Tax adjustment in respect of different tax rate of foreign subsidiaries		114			111			43
Non-deductible expenses and other permanent differences		140			143			64
Deferred taxes on losses and other temporary differences for which valuation allowance was provided, net		318			1,899			(5,503	)
Stock based compensation		716			996			1,161
Change in tax rate		240			355			-
Beneficiary enterprise benefits (*)		(1,190	)		(2,360	)		(3,469	)
Increase (Decrease) in other uncertain tax positions		(70	)		(376	)		765
Other		11			8			(71	)

Actual tax expense (benefit)	$	648		$	384		$	(5,392	)

(*) Basic and diluted earnings per share amounts of the benefit resulting from the “Beneficiary Enterprise” status		0.04			0.07			0.10

Geographic Information (Tables)

12 Months Ended

Dec. 31, 2018

Geographic Information [Abstract]

Schedule of long-lived assets by geographical region

	December 31,
	2017		2018

U.S	$	232	$	1,839
Israel		10,342		12,581
EMEA		378		328
Asia Pacific		278		246

	$	11,230	$	14,994

Schedule of revenue by major distributors

	Year ended December 31,
	2016			2017			2018

Customer A		21	%		18	%		15	%
Customer B		16	%		13	%		17	%

Selected Statements of Income Data (Tables)

12 Months Ended

Dec. 31, 2018

Selected Statements of Income Data [Abstract]

Summary of financial income

	Year ended December 31,
	2016			2017			2018
Financial income:

Interest on bank deposits and other	$	203		$	69		$	406
Exchange rate differences, net		-			-			87
Realized gain on sale of marketable securities, net		6			34			-
Interest on marketable securities		1,046			1,896			2,107

		1,255			1,999			2,600
Financial expenses:

Bank charges		(277	)		(244	)		(299	)
Exchange rate differences, net		(478	)		(757	)		-
Realized loss on sale of marketable securities, net		-			-			(480	)
Amortization of premium and accretion of discount on marketable securities, net		(454	)		(546	)		(388	)

		(1,209	)		(1,547	)		(1,167	)

Total financial income:	$	46		$	452		$	1,433

Significant Accounting Policies (Details)

Dec. 31, 2018

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] | Minimum [Member]

Property, Plant and Equipment [Line Items]

Property and equipment useful life of assets at annual rates

7.00%

Machinery and equipment [Member] | Maximum [Member]

Property, Plant and Equipment [Line Items]

Property and equipment useful life of assets at annual rates

33.00%

Leasehold improvements [Member]

Property, Plant and Equipment [Line Items]

Property and equipment useful life of assets at annual rates

^[1]

Building and land [Member]

Property, Plant and Equipment [Line Items]

Property and equipment useful life of assets at annual rates

^[2]

[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.
[2]	Building and land consist of land and a new ink manufacturing plant. In September 2018 the company purchased the land which includes long-term leasehold rights, with lease term of 98 years. As of December 31, 2018, the ink manufacturing plant in under construction. Depreciation of the manufacturing plant will begin upon completion of its construction.

Significant Accounting Policies (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Significant Accounting Policies [Line Items]
Total revenue	$ 142,373	$ 114,088	$ 108,694
Spare parts [Member]
Significant Accounting Policies [Line Items]
Total revenue	12,377	9,652	6,168
Service contracts [Member]
Significant Accounting Policies [Line Items]
Total revenue	4,267	2,483	1,708
Systems [Member]
Significant Accounting Policies [Line Items]
Total revenue	65,825	50,498	57,894
Ink and consumables [Member]
Significant Accounting Policies [Line Items]
Total revenue	$ 59,904	$ 51,455	$ 42,834

Significant Accounting Policies (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Significant Accounting Policies [Line Items]
Revenues	$ 142,373	$ 114,088	$ 108,694
U.S [Member]
Significant Accounting Policies [Line Items]
Revenues	77,652	60,541	63,656
EMEA [Member]
Significant Accounting Policies [Line Items]
Revenues	45,195	32,015	24,720
Asia Pacific [Member]
Significant Accounting Policies [Line Items]
Revenues	15,572	16,092	11,963
Other [Member]
Significant Accounting Policies [Line Items]
Revenues	$ 3,954	$ 5,440	$ 8,355

Significant Accounting Policies (Details 3) $ in Thousands	Dec. 31, 2018 USD ($)
2019 [Member]
Significant Accounting Policies [Line Items]
Total	$ 4,789
2020 [Member]
Significant Accounting Policies [Line Items]
Total	1,201
2021 and thereafter [Member]
Significant Accounting Policies [Line Items]
Total	55
Product [Member] \| 2019 [Member]
Significant Accounting Policies [Line Items]
Total	172
Product [Member] \| 2020 [Member]
Significant Accounting Policies [Line Items]
Total
Product [Member] \| 2021 and thereafter [Member]
Significant Accounting Policies [Line Items]
Total
Services [Member] \| 2019 [Member]
Significant Accounting Policies [Line Items]
Total	4,617
Services [Member] \| 2020 [Member]
Significant Accounting Policies [Line Items]
Total	1,201
Services [Member] \| 2021 and thereafter [Member]
Significant Accounting Policies [Line Items]
Total	$ 55

Significant Accounting Policies (Details 4) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Schedule of changes in liability for product warranty
Beginning balance	$ 1,777	$ 2,019
Provision for warranties issued during the year	3,381	2,807
Reduction for payments and costs to satisfy claims	(2,921)	(3,049)
Ending balance	$ 2,237	$ 1,777

Significant Accounting Policies (Details 5) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
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	$ 1.0
Risk free interest rate	2.00%	2.20%	0.30%
Volatility	47.00%	51.00%	54.00%
Maximum [Member]
Schedule of fair value method for share-based compensation awards
Suboptimal exercise multiple	$ 1.5	$ 1.5	$ 1.5
Risk free interest rate	3.10%	2.30%	2.20%
Volatility	51.00%	53.00%	56.00%

Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Significant Accounting Policies (Textual)
Inventory write off	$ 1,759	$ 2,988	$ 2,211
Impairment of goodwill
Provisions for estimated sales returns	$ 570	580
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.
Monthly deposits rate	8.33%
Notional principal amount of hedging contracts	$ 10,581	3,651
Severance and garden leave pay expenses	3,124	2,088	1,590
Fair value of outstanding forward and option	(111)	45
Advertising costs	$ 1,077	612	526
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	$ 19	97	$ 216
Anti-dilutive excluded from calculation of diluted net earnings per share	884,028		1,498,503
Cumulative-effect adjustment to decrease retained earnings		69
Contract Liabilities	$ 3,931	2,090
Recognized revenues	1,232
Right-of-use leased assets	15,000
Revenues from shipping	$ 1,702	$ 1,355	$ 768
Lease term	98 years

Acquisition (Details) - USD ($) $ in Thousands		12 Months Ended
Acquisition (Details) - USD ($) $ in Thousands	Jul. 01, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Acquisition (Textual)
Cash paid to acquisition	$ 9,206			$ 9,206
Cash held in escrow	741
Total milestone-based contingent payments for 2016, 2017 and 2018	2,700
Fair value measurement of contingent liability		$ 303	$ 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, 2018	Dec. 31, 2017
Summary of marketable securities
Amortized cost, current	$ 3,999	$ 5,485
Amortized cost, noncurrent	45,058	68,917
Amortized cost, Total	49,057	74,402
Gross unrealized gain, current		62
Gross unrealized gain, noncurrent	29	145
Gross unrealized gain, Total	29	207
Gross unrealized loss, current	(18)	(10)
Gross unrealized loss, noncurrent	(484)	(227)
Gross unrealized loss, Total	(502)	(237)
Fair value, current	3,981	5,537
Fair value, noncurrent	44,603	68,835
Fair value, Total	48,584	74,372
Matures within one year: Corporate debentures [Member]
Summary of marketable securities
Amortized cost, current	3,999	5,190
Gross unrealized gain, current		50
Gross unrealized loss, current	(18)	(9)
Fair value, current	3,981	5,231
Matures within one year: Government debentures [Member]
Summary of marketable securities
Amortized cost, current		295
Gross unrealized gain, current		12
Gross unrealized loss, current		(1)
Fair value, current		306
Matures after one year through three years: Corporate debentures [Member]
Summary of marketable securities
Amortized cost, noncurrent	33,698	56,514
Gross unrealized gain, noncurrent	29	137
Gross unrealized loss, noncurrent	(346)	(202)
Fair value, noncurrent	33,381	56,449
Matures after one year through three years: Government debentures [Member]
Summary of marketable securities
Amortized cost, noncurrent	11,360	12,403
Gross unrealized gain, noncurrent		8
Gross unrealized loss, noncurrent	(138)	(25)
Fair value, noncurrent	$ 11,222	$ 12,386

Fair Value Measurements (Details 1) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
Fair value Less than 12 months	$ 20,881	$ 46,706
Unrealized Losses Less than 12 months	(243)	(237)
Fair value 12 months or greater	18,904
Unrealized Losses 12 months or greater	(259)
Fair value	39,785	46,706
Unrealized Loss	(502)	(237)
Corporate debentures [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value Less than 12 months	12,017	43,852
Unrealized Losses Less than 12 months	(126)	(211)
Fair value 12 months or greater	16,547
Unrealized Losses 12 months or greater	(238)
Fair value	28,564	43,852
Unrealized Loss	(364)	(211)
Government debentures [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value Less than 12 months	8,864	2,854
Unrealized Losses Less than 12 months	(117)	(26)
Fair value 12 months or greater	2,357
Unrealized Losses 12 months or greater	(21)
Fair value	11,221	2,854
Unrealized Loss	$ (138)	$ (26)

Fair Value Measurements (Details 2) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Fair Value Measurement [Member]
Assets:
Marketable securities	$ 48,584	$ 74,372
Foreign currency derivative contracts		45
Total financial assets	48,584	74,417
Liabilities:
Payment obligation related to acquisition		334
Foreign currency derivative contracts	111
Total liabilities	111	334
Level 1 [Member]
Assets:
Marketable securities
Foreign currency derivative contracts
Total financial assets
Liabilities:
Payment obligation related to acquisition
Foreign currency derivative contracts
Total liabilities
Level 2 [Member]
Assets:
Marketable securities	48,584	74,372
Foreign currency derivative contracts		45
Total financial assets	48,584	74,417
Liabilities:
Payment obligation related to acquisition
Foreign currency derivative contracts	111
Total liabilities	111
Level 3 [Member]
Assets:
Marketable securities
Foreign currency derivative contracts
Total financial assets
Liabilities:
Payment obligation related to acquisition		334
Foreign currency derivative contracts
Total liabilities	$ 0	$ 334

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

12 Months Ended

Dec. 31, 2018

USD ($)

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

Total fair value as of January 1, 2018

$ 334

Settlement of payment obligation

(303)

^[1]

Accretion of payment obligation

Reversal of payment obligation

(75)

^[2]

Total fair value as of December 31, 2018

$ 0

[1]	$303 is included within other payables and accrued expenses on the balance sheet.
[2]	The set milestone was met only at 76% as of December 31, 2018. The reversal of payment obligations was recognized in operating expenses.

Fair Value Measurements (Details Textual) $ in Thousands	12 Months Ended
Fair Value Measurements (Details Textual) $ in Thousands	Dec. 31, 2018 USD ($)
Fair Value Measurements (Textual)
Other payables and accrued expenses	$ 303
Discount rate	15.00%
Percentage of milestone	76.00%

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

Dec. 31, 2018

Dec. 31, 2017

Schedule of inventory

Raw materials and components

$ 17,425

$ 15,756

Finished products

^[1]

12,605

19,099

Inventories

$ 30,030

$ 34,855

[1]	Including amounts of $34 and $836 for the years ended December 31, 2017 and 2018, respectively, with respect to inventory delivered to customers for which revenue was not yet recognized.

Inventories (Details Textual) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Inventories (Textual)
Inventory delivered to customers	$ 836	$ 34

Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 29,017	$ 22,233
Accumulated depreciation	(14,023)	(11,003)
Property, plant and equipment, net	14,994	11,230
Computer and peripheral equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	3,182	2,616
Office furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	1,757	1,497
Machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	12,230	11,098
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	8,505	7,022
Building and land [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 3,343

Property, Plant and Equipment, Net (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment, Net (Textual)
Depreciation expenses	$ 3,900	$ 3,505	$ 2,447
Reduction of cost and accumulated depreciation	$ 861	$ 298	$ 297

Intangible Assets, Net (Details) - USD ($) $ in Thousands	12 Months Ended
Intangible Assets, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Original amount	$ 4,445	$ 4,445
Accumulated amortization	3,434	2,369
Intangible assets, net	1,011	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	$ 966	866
Customer relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Original amount	$ 2,614	2,614
Weighted average amortization period	5 years
Accumulated amortization	$ 2,302	1,404
Non-competition agreement [Member]
Finite-Lived Intangible Assets [Line Items]
Original amount	$ 265	265
Weighted average amortization period	4 years
Accumulated amortization	$ 166	$ 99

Intangible Assets, Net (Details 1) $ in Thousands	Dec. 31, 2018 USD ($)
Intangible Assets, Net [Abstract]
2019	$ 432
2020	136
2021	143
2022	100
2023 and thereafter	200
Total	$ 1,011

Intangible Assets, Net (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Intangible Assets, Net (Textual)
Amortization expenses	$ 1,065	$ 1,309	$ 519

Other Payables and Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Other Payables and Accrued Expenses [Abstract]
Government authorities	$ 253	$ 867
Warranty provision	1,909	1,680
Professional services	412	470
Payment obligation related to acquisition	303	900
Restructuring		503
Provision for return	570
Accrued expenses	1,546	626
Other payables and accrued expenses	$ 4,993	$ 5,046

Commitments and Contingent Liabilities (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Commitments and Contingent Liabilities [Abstract]
2019	$ 2,549
2020	2,415
2021	2,114
2022	1,998
2023 and thereafter	5,335
Total	$ 14,411

Commitments and Contingent Liabilities (Details Textual) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) Banks	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Commitments and Contingent Liabilities (Textual)
Rent expenses	$ 2,663	$ 2,963	$ 1,664
Operating leases expiration date	Dec. 31, 2028
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%.
Purchase commitments	$ 12,596
Royalty expense	$ 625	$ 625	$ 625
Number of banks \| Banks	2
Guarantees fee	$ 370
Description of royalty commitments	The Company's agreement for purchasing print heads and other products, which was amended in 2016, the Company is obligated to pay 2.5% royalties of its annual ink revenues up to an annual maximum amount of $625.

Shareholders' Equity (Details) - Stock Option [Member] $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) $ / shares shares
Number of shares upon exercise
Outstanding at beginning of year \| shares	2,360,647
Granted \| shares	449,276
Exercised \| shares	(918,380)
Forfeited \| shares	(307,979)
Outstanding at end of year \| shares	1,583,564
Exercisable at end of year \| shares	619,711
Weighted average exercise price
Outstanding at beginning of year \| $ / shares	$ 10.76
Granted \| $ / shares	18.69
Exercised \| $ / shares	6.82
Forfeited \| $ / shares	13.54
Outstanding at end of year \| $ / shares	14.71
Exercisable at end of year \| $ / shares	$ 12.37
Weighted- average remaining contractual term (in years)
Outstanding at beginning of year	8 years 18 days
Granted	9 years 6 months 10 days
Exercised	6 years 5 months 12 days
Forfeited	7 years 11 months 12 days
Outstanding at end of year	8 years 2 months 8 days
Exercisable at end of year	7 years 5 months 1 day
Aggregate intrinsic value
Outstanding at beginning of year \| $	$ 13,588
Outstanding at end of year \| $	6,536
Exercisable at end of year \| $	$ 4,011

Shareholders' Equity (Details 1)	12 Months Ended
Shareholders' Equity (Details 1)	Dec. 31, 2018 $ / shares shares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, Number outstanding \| shares	1,583,564
Options exercisable, Number outstanding \| shares	619,711
0.36-2.17 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price, minimum	$ 0.36
Exercise price, maximum	$ 2.17
Options outstanding, Number outstanding \| shares	71,035
Options outstanding, Weighted average exercise price	$ 2.05
Options outstanding, Weighted average remaining contractual life	5 years 9 months 22 days
Options exercisable, Number outstanding \| shares	71,035
Options exercisable, Weighted average exercise price	$ 2.05
Options exercisable, Weighted average remaining contractual life	5 years 9 months 22 days
9.38-9.97 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price, minimum	$ 9.38
Exercise price, maximum	$ 9.97
Options outstanding, Number outstanding \| shares	122,770
Options outstanding, Weighted average exercise price	$ 9.93
Options outstanding, Weighted average remaining contractual life	6 years 15 days
Options exercisable, Number outstanding \| shares	112,259
Options exercisable, Weighted average exercise price	$ 9.97
Options exercisable, Weighted average remaining contractual life	5 years 11 months 15 days
10.05-11.90 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price, minimum	$ 10.05
Exercise price, maximum	$ 11.90
Options outstanding, Number outstanding \| shares	356,546
Options outstanding, Weighted average exercise price	$ 10.24
Options outstanding, Weighted average remaining contractual life	7 years 6 months 25 days
Options exercisable, Number outstanding \| shares	142,766
Options exercisable, Weighted average exercise price	$ 10.11
Options exercisable, Weighted average remaining contractual life	7 years 6 months 7 days
13.4-15.29 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price, minimum	$ 13.4
Exercise price, maximum	$ 15.29
Options outstanding, Number outstanding \| shares	149,185
Options outstanding, Weighted average exercise price	$ 14.48
Options outstanding, Weighted average remaining contractual life	7 years 29 days
Options exercisable, Number outstanding \| shares	104,014
Options exercisable, Weighted average exercise price	$ 14.53
Options exercisable, Weighted average remaining contractual life	7 years 2 months 19 days
15.80-18.05 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price, minimum	$ 15.80
Exercise price, maximum	$ 18.05
Options outstanding, Number outstanding \| shares	423,989
Options outstanding, Weighted average exercise price	$ 17.52
Options outstanding, Weighted average remaining contractual life	8 years 8 months 9 days
Options exercisable, Number outstanding \| shares	118,360
Options exercisable, Weighted average exercise price	$ 17.62
Options exercisable, Weighted average remaining contractual life	8 years 7 months 28 days
18.8-21.15 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price, minimum	$ 18.8
Exercise price, maximum	$ 21.15
Options outstanding, Number outstanding \| shares	460,039
Options outstanding, Weighted average exercise price	$ 18.91
Options outstanding, Weighted average remaining contractual life	9 years 6 months 10 days
Options exercisable, Number outstanding \| shares	71,277
Options exercisable, Weighted average exercise price	$ 19.06
Options exercisable, Weighted average remaining contractual life	9 years 4 months 24 days

Shareholders' Equity (Details 2) - Restricted Stock Units (RSUs) [Member]	12 Months Ended
	Dec. 31, 2018 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at beginning of year	88,759
Granted	370,417
Vested	(22,597)
Forfeited	(22,159)
Outstanding at end of year	414,420

Shareholders' Equity (Details 3) - USD ($) $ in Thousands	12 Months Ended
Shareholders' Equity (Details 3) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total share-based compensation expense	$ 5,546	$ 4,411	$ 2,993
Cost of products [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total share-based compensation expense	494	419	311
Cost of services [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total share-based compensation expense	398	210	171
Research and development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total share-based compensation expense	1,022	775	217
Sales and marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total share-based compensation expense	1,240	920	654
General and administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total share-based compensation expense	$ 2,392	$ 2,087	$ 1,640

Shareholders' Equity (Details Textual) $ / shares in Units, $ in Thousands				1 Months Ended	12 Months Ended
	Dec. 07, 2018 shares	May 15, 2017 shares	Jan. 10, 2017 USD ($) $ / shares shares	Jan. 31, 2017 USD ($) shares	Dec. 31, 2018 USD ($) $ / shares shares	Dec. 31, 2017 USD ($) $ / shares	Dec. 31, 2016 USD ($) $ / shares	Dec. 31, 2018 ₪ / shares
Shareholders' Equity (Textual)
Ordinary shares sold \| shares	3,132,481	4,250,000
Net proceeds from offering \| $						$ 35,077
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. Options and RSUs that are cancelled or forfeited before expiration become available for future grants.
Ordinary shares available for future grant \| shares					1,960,465
Weighted average fair value of options granted \| $ / shares					$ 9.5	$ 9.24	$ 5.64
Fair value of options vested per share \| $ / shares					$ 6.71
Recognized reduction revenues \| $					$ 4,576	$ 2,895	$ 2,030
Class of warrant exercisable \| shares					1,111,773
Board of Directors [Member]
Shareholders' Equity (Textual)
Increase in the ordinary shares reserved for issuance \| shares					5,376,368
Restricted Stock Units (RSUs) [Member]
Shareholders' Equity (Textual)
Unrecognized compensation cost \| $					$ 8,029
Weighted average vesting period					2 years 10 months 21 days
Vested options exercisable term						10 years
Weighted average fair value of options granted \| $ / shares					$ 17.1	$ 17.77
Fair value of options vested per share \| $ / shares					$ 421
MPA [Member]
Shareholders' Equity (Textual)
Warrants to purchase ordinary shares \| shares			2,932,176
Exercise price \| $ / shares			$ 13.04
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				8,625,000
Net proceeds from offering \| $				$ 35,077
Initial public offering, description				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 \| $					$ 11,775	$ 10,588	$ 7,822

Earnings (Losses) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Numerator for basic and diluted net earnings (losses) per share:
Net income (loss)	$ 12,429	$ (2,015)	$ 828
Weighted average shares outstanding:
Denominator for basic net earnings (losses) per share	34,521,352	33,574,147	30,562,255
Effect of dilutive securities:
Employee share options and restricted share units	842,352		1,170,277
Denominator for diluted net earnings (losses) per share	35,363,704	33,574,147	31,732,532
Basic net earnings (losses) per share	$ 0.36	$ (0.06)	$ 0.03
Diluted net earnings (losses) per share	$ 0.35	$ (0.06)	$ 0.03

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=115205541&loc=SL114868664-224227

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=109260490&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Schedule of changes in accumulated balances of other comprehensive income (loss)
Beginning balance	$ 301	$ (82)
Other comprehensive income before reclassifications	(1,111)	811
Amounts reclassified from accumulated other comprehensive income (loss)	572	(428)
Net current period other comprehensive income	(539)	383
Ending Balance	(238)	301
Unrealized Gains (losses) on marketable securities [Member]
Schedule of changes in accumulated balances of other comprehensive income (loss)
Beginning balance	(30)	(100)
Other comprehensive income before reclassifications	(887)	104
Amounts reclassified from accumulated other comprehensive income (loss)	480	(34)
Net current period other comprehensive income	(407)	70
Ending Balance	(437)	(30)
Unrealized Gains (losses) on cash flow hedges [Member]
Schedule of changes in accumulated balances of other comprehensive income (loss)
Beginning balance	45	3
Other comprehensive income before reclassifications	(230)	436
Amounts reclassified from accumulated other comprehensive income (loss)	92	(394)
Net current period other comprehensive income	(138)	42
Ending Balance	(93)	45
Foreign currency translation adjustment [Member]
Schedule of changes in accumulated balances of other comprehensive income (loss)
Beginning balance	286	15
Other comprehensive income before reclassifications	6	271
Amounts reclassified from accumulated other comprehensive income (loss)
Net current period other comprehensive income	6	271
Ending Balance	$ 292	$ 286

Taxes on Income (Details) - Deferred Income Taxes [Member] - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Valuation Allowance [Line Items]
Carryforward tax losses	$ 3,538	$ 3,764
Share-based compensation	976	424
R&D expenses	1,414	1,331
Other temporary differences	1,354	552
Deferred tax assets	7,282	6,071
Deferred tax liability due to property and equipment	(10)	(4)
Valuation allowance		(5,503)
Deferred tax assets, net	$ 7,272	$ 564

Taxes on Income (Details 1) - USD ($) $ in Thousands	12 Months Ended
Taxes on Income (Details 1) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Taxes on Income [Abstract]
Domestic	$ 4,458	$ (3,328)	$ (507)
Foreign	2,579	1,697	1,983
Income (loss) before income taxes	$ 7,037	$ (1,631)	$ 1,476

Taxes on Income (Details 2) - USD ($) $ in Thousands	12 Months Ended
Taxes on Income (Details 2) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Taxes on Income [Abstract]
Current taxes	$ 1,088	$ 509	$ 829
Deferred taxes	(6,480)	(125)	(181)
Taxes on income	(5,392)	384	648
Domestic	(6,050)	(594)	(70)
Foreign	658	978	718
Taxes on income	$ (5,392)	$ 384	$ 648

Taxes on Income (Details 3) - USD ($) $ in Thousands	12 Months Ended
Taxes on Income (Details 3) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Domestic taxes:
Current taxes	$ 333	$ (594)	$ (70)
Deferred taxes	(6,383)
Domestic taxes	(6,050)	(594)	(70)
Foreign taxes:
Current taxes	755	1,103	899
Deferred taxes	(97)	(125)	(181)
Foreign taxes	658	978	718
Taxes on income	$ (5,392)	$ 384	$ 648

Taxes on Income (Details 4) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Taxes on Income [Abstract]

Beginning of year

$ 1,521

$ 1,691

452

(594)

313

218

Cumulative translation adjustments and other

(46)

206

Balance at December 31

$ 2,240

^[1]

$ 1,521

[1]	As of December 31, 2017, and 2018 unrecognized tax benefit in the amount of $905 and $1,218 were presented as a reduction from deferred taxes.

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

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Taxes on Income [Abstract]

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

$ 7,037

$ (1,631)

$ 1,476

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

1,618

(392)

369

Tax adjustment in respect of different tax rate of foreign subsidiaries

111

114

Non-deductible expenses and other permanent differences

143

140

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

(5,503)

1,899

318

Stock based compensation

1,161

996

716

Change in tax rate

355

240

Beneficiary enterprise benefits

^[1]

(3,469)

(2,360)

(1,190)

Increase (Decrease) in other uncertain tax positions

765

(376)

(70)

Other

(71)

Actual tax expense (benefit)

$ (5,392)

$ 384

$ 648

Basic and diluted earnings per share amounts of the benefit resulting from the ''Beneficiary Enterprise'' status

$ 0.1

$ 0.07

$ 0.04

[1]	Basic and diluted earnings per share amounts of the benefit resulting from the "Beneficiary Enterprise" status

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, 2018	Dec. 31, 2017	Dec. 31, 2016
Taxes on Income (Textual)
Israeli corporate income tax rate			23.00%	24.00%	25.00%
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			$ 100,920
Reduced corporate tax rate income			$ 23,212
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%
Undistributed earnings of foreign subsidiaries			$ 7,240
Carryforward operating tax losses			58,243
Unrecognized tax benefits			115	$ 54	$ 0
Uncertain tax positions			$ 171	60
Subject to a tax rate		9.00%	16.00%		7.50%
Re-measurement deferred tax balance				355
Deferred tax assets valuation allowance			$ 5,503
Unrecognized tax benefit			1,218	$ 905
Corporate tax rate			$ 587
Preferred Technological Enterprises [Member]
Taxes on Income (Textual)
Subject to a tax rate				12.00%
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	Dec. 31, 2018	Dec. 31, 2017
Geographic Information [Line Items]
Long-lived assets	$ 14,994	$ 11,230
U.S [Member]
Geographic Information [Line Items]
Long-lived assets	1,839	232
Israel [Member]
Geographic Information [Line Items]
Long-lived assets	12,581	10,342
EMEA [Member]
Geographic Information [Line Items]
Long-lived assets	328	378
Asia Pacific [Member]
Geographic Information [Line Items]
Long-lived assets	$ 246	$ 278

Geographic Information (Details 1)	12 Months Ended
Geographic Information (Details 1)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Customer A [Member]
Revenue, Major Customer [Line Items]
Percentage of total revenues	15.00%	18.00%	21.00%
Customer B [Member]
Revenue, Major Customer [Line Items]
Percentage of total revenues	17.00%	13.00%	16.00%

Geographic Information (Details Textual)	12 Months Ended
Geographic Information (Details Textual)	Dec. 31, 2018 Segment
Geographic Information (Textual)
Number of segment	1

Selected Statements of Income Data (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Financial income:
Interest on bank deposits and other	$ 406	$ 69	$ 203
Exchange rate differences, net	87
Realized gain on sale of marketable securities, net		34	6
Interest on marketable securities	2,107	1,896	1,046
Total financial income	2,600	1,999	1,255
Financial expenses:
Bank charges	(299)	(244)	(277)
Exchange rate differences, net		(757)	(478)
Realized loss on sale of marketable securities, net	(480)
Amortization of premium and accretion of discount on marketable securities	(388)	(546)	(454)
Total financial expenses	(1,167)	(1,547)	(1,209)
Total financial expense (income):	$ (1,433)	$ (452)	$ (46)

Balances and Transactions with Related Parties (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Oct. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Acord Insurance Agency Ltd. ("Acord") [Member]
Balances and Transactions With Related Parties (Textual)
Annual Premium		$ 248
Priority Software Ltd. ("Priority") [Member]
Balances and Transactions With Related Parties (Textual)
Maintenance fees		$ 30	$ 32	$ 8
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.

- Definition

A description of the related party transaction, including transactions to which no amounts or nominal amounts were ascribed and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements. Examples of common related party transactions are, sales, purchases and transfers of realty and personal property, services received or furnished, loans and leases to and from top management and affiliates.

+ References + Details

Subsequent Event (Details) - USD ($) $ in Thousands	12 Months Ended
Subsequent Event (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Feb. 07, 2019
Subsequent Event (Textual)
Percentage of revenues	15.00%	18.00%	21.00%
Subsequent Event [Member]
Subsequent Event (Textual)
Total consideration				$ 4,715