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SEGMENT GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS
 12 Months Ended
Dec. 31, 2012
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
NOTE 16:- SEGMENT GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS

 

a. The Company reports its results on the basis of two reportable business segments: software services (which include proprietary and none proprietary software technology) and IT professional services, each of which is comprised of two reporting units. The entities included in the Company's IT professional services business segment are Coretech Consulting Group LLC, Fusion Solutions LLC and Xsell Resources Inc which are considered as one reporting unit and Comm-IT Software, Comm-IT Technology Solutions and Comm-IT Embedded, which is a separate reporting unit. The reporting unit of the proprietary and none proprietary software technology segment is comprised of Complete Business Solutions Ltd., Complete Information Technology and all of the Company's other subsidiaries in each of the respective years.

 

The Company evaluates segment performance based on revenues and operating income 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, business and process integration solutions and related services.

 

IT professional services

 

The Company offers advanced and flexible IT services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, communications services and solutions, 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  
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  

 

    Software
services		     IT
professional
services		     Unallocated
expense		     Total  
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  
                                 
2012                                
                                 
Total revenues   $ 65,410     $ 60,970     $ -     $ 126,380  
Expenses     50,497       55,456       4,019       109,972  
                                 
Segment operating income (loss)   $ 14,913     $ 5,514     $ (4,019 )   $ 16,408  
                                 
Depreciation and amortization   $ 5,937     $ 1,182     $ 344     $ 7,463  

 

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, 2010, 2011 and 2012:

 

    Year ended December 31,  
    2010     2011     2012  
                   
Israel   $ 4,405     $ 7,982     $ 11,561  
Europe     21,788       24,351       29,139  
United States     48,888       60,727       64,591  
Japan     10,806       12,111       12,661  
Other     2,691       8,157       8,428  
                         
    $ 88,578     $ 113,328     $ 126,380  

 

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

 

    December 31,  
    2011     2012  
             
Israel   $ 39,567     $ 48,452  
Europe     1,836       2,171  
United States     16,225       15,459  
Japan     6,804       6,164  
Other     3,895       3,657  
                 
    $ 68,327     $ 75,903  

 

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

 

f.

In 2010, 2011 and 2012, the Company had one customer, included in the IT professional services segment, which accounted for 29%, 25% and 19% of the group revenues, respectively.