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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Cash flows from operating activities:      
Net income attributed to Magic Software Enterprises shareholders $ 15,044 $ 9,375 $ 6,176
Adjustments to reconcile net income from operations to net cash provided by operating activities:      
Depreciation and amortization 5,040 4,566 4,560
Accrued severance pay, net 143 11 (20)
Loss (gain) on sale of property and equipment 10 0 (2,249)
Stock-based compensation expenses 633 300 130
Amortization of marketable securities premium, accretion of discount and other than temporary losses, net (14) (17) 57
Loss on sale and maturity of marketable securities 0 3 3
Non-controlling interest in earnings of subsidiaries 222 0 0
Gain on sale of subsidiary's operation (136) (146) (105)
Decrease (increase) in trade receivables, net (5,405) (198) 1,368
Decrease (Increase) in other long term and short term accounts receivable and prepaid expenses (1,753) 241 747
Increase (decrease) in trade payables 446 26 (363)
Increase (decrease) in accrued expenses and other accounts payable 1,065 (115) (1,281)
Increase (decrease) in deferred revenues 1,593 (85) (433)
Deferred income taxes, net (1,650) 436 (1,056)
Net cash provided by operating activities 15,238 14,397 7,534
Cash flows from investing activities:      
Capitalized software development costs (5,222) (3,595) (3,128)
Purchase of property and equipment (497) (583) (580)
cash paid in conjunction with acquisitions, net of acquired cash (23,640) (10,225) 0
Proceeds from sale of subsidiary's operation 136 146 105
Proceeds from sale of property and equipment 0 414 5,277
Proceeds from sale of marketable securities 0 361 107
Proceeds from maturity of marketable securities 1,557 830 1,400
Investment in marketable securities 0 (393) (1,604)
Prepayment on investment 0 (1,160) 0
Proceeds from short-term bank deposits 21,974 15,077 24,191
Proceeds from returns of loans to employees and other deposits ,net 17 28 0
Investment in short-term bank deposit (24,153) (1,291) (36,144)
Net cash used in investing activities (29,828) (391) (10,376)
Cash flows from financing activities:      
Proceeds from exercise of options by employees 875 1,339 58
Issuance (expense on issuance) of ordinary shares (21) 20,290 0
Dividend paid 0 (15,974)  
Short-term credit, net 20 (717) (2)
Purchase of non-controlling interest (1,377) 0 0
Repayment of long-term loans 0 (23) (118)
Net cash provided by (used in) financing activities (503) 4,915 (62)
Effect of exchange rate changes on cash and cash equivalents 143 390 (55)
Increase (decrease) in cash and cash equivalents (14,950) 19,311 (2,959)
Cash and cash equivalents at the beginning of the year 43,661 24,350 27,309
Cash and cash equivalents at end of the year 28,711 43,661 24,350
Supplementary information on investing and financing activities not involving cash flows:      
Payable on account of dividend 0 0 15,974
Deferred payment 0 4,645 0
Contingent payment 750 414 0
Receivables from sale of property 0 0 450
Supplemental disclosure of cash flow activities:      
Income taxes 1,015 709 873
Interest $ 8 $ 131 $ 3