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SEGMENT AND GEOGRAPHICAL INFORMATION
 12 Months Ended
Dec. 31, 2011
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
NOTE 18:- SEGMENT GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS

 

a. Historically, the Company reported its results on the basis of one reportable segment, which was comprised of two reporting units: CoreTech and Magic. (See Note 1 for a brief description of the Company's business.) During 2010, as a result of a change in the Company's management structure associated with the acquisition of a U.S-based consulting and staffing services business, the Company began to report its results on the basis of two reportable business segments: Software services and IT professional services, each of which is comprised of one reporting unit. The reporting unit of the IT professional services segment is comprised of the Company's three IT consulting and staffing subsidiaries, Coretech Consulting Group LLC, Fusion Solutions LLC and Xsell Resources Inc., and the reporting unit of the proprietary and none proprietary software technology segment is comprised of all of the Company's other subsidiaries.

 

The Company evaluates segment performance based on revenues and operating income (loss) of each segment. The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies. This data is presented in accordance with ASC 280, "Segment Reporting."

 

Headquarters' General and administrative costs have not been allocated between the different segments.

  

Software services

 

The Company develops markets, sells and supports a proprietary and none proprietary application platform, software applications and business and process integration solutions.

 

IT professional services

 

The Company offers flexible services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, as well as supplemental staffing services.

 

There are no significant transactions between the two segments.

 

b. The following is information about reported segment results of operation:

 

    Software
services		     IT
professional
services		     Unallocated
expense		     Total  
2009                                
                                 
Total revenues   $ 43,120     $ 12,230     $ -     $ 55,350  
Expenses     36,448       11,048       3,596       51,092  
                                 
Segment operating income (loss)   $ 6,672     $ 1,182     $ (3,596 )   $ 4,258  
                                 
Depreciation and amortization   $ 3,923     $ 10     $ 627     $ 4,560  
                                 
2010                                
                                 
Total revenues   $ 46,262     $ 42,316     $ -     $ 88,578  
Expenses     36,556       39,249       3,435       79,240  
                                 
Segment operating income (loss)   $ 9,706     $ 3,067     $ (3,435 )   $ 9,338  
                                 
Depreciation and amortization   $ 3,610     $ 615     $ 341     $ 4,566  
                                 
2011                                
                                 
Total revenues   $ 58,137     $ 55,191     $ -     $ 113,328  
Expenses     44,086       50,468       4,057       98,611  
                                 
Segment operating income (loss)   $ 14,051     $ 4,723     $ (4,057 )   $ 14,717  
                                 
Depreciation and amortization   $ 3,837     $ 853     $ 350     $ 5,040  

  

 

c. The Company's business is divided into the following geographic areas: Israel, Europe, the United States, Japan and other regions. Total revenues are attributed to geographic areas based on the location of the customers. The Company has adjusted all prior year comparative amounts to reflect this change in classification to be consistent for all periods presented.

 

The following table presents total revenues classified according to geographical destination for the years ended December 31, 2009, 2010 and 2011:

 

    Year ended December 31,  
    2009     2010     2011  
                   
Israel   $ 3,614     $ 4,405     $ 7,982  
Europe     22,516       21,788       24,351  
United States     18,485       48,888       60,727  
Japan     8,895       10,806       12,111  
Other     1,840       2,691       8,157  
                         
    $ 55,350     $ 88,578     $ 113,328  

 

d. The Company's long-lived assets are located as follows:

 

    December 31,  
    2010     2011  
             
Israel   $ 15,760     $ 37,651  
Europe     1,487       1,836  
United States     16,893       16,225  
Japan     6,506       6,804  
Other     466       3,895  
                 
    $ 41,112     $ 66,411  

 

e. The Company does not allocate its assets to its reportable segments; accordingly, asset information by reportable segments is not presented.

 

f. In 2009 there were no major customers above 10%. In 2010 and 2011, the Company had one customer, included in the IT professional services segment, which accounted for 28% and 25% and of the group revenues, respectively.