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SEGMENT GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
NOTE 19:-
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.
 
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 outsourcing services.
 
There are no significant transactions between the two segments.
 
b.
The following is information about reported segment results of operation:
   
 
 
 
 
IT
 
 
 
 
 
 
 
Software
 
professional
 
Unallocated
 
 
 
 
 
services
 
services
 
expense
 
Total
 
2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenues
 
$
69,861
 
$
94,443
 
$
-
 
$
164,304
 
Expenses
 
 
54,464
 
 
84,873
 
 
4,241
 
 
143,578
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment operating income (loss)
 
$
15,397
 
$
9,570
 
$
(4,241)
 
$
20,726
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
6,065
 
$
2,263
 
$
266
 
$
8,594
 
  
 
 
 
 
IT
 
 
 
 
 
 
 
Software
 
professional
 
Unallocated
 
 
 
 
 
services
 
services
 
expense
 
Total
 
2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenues
 
$
67,271
 
$
108,759
 
$
-
 
$
176,030
 
Expenses
 
 
52,963
 
 
98,384
 
 
3,249
 
 
154,596
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment operating income (loss)
 
$
14,308
 
$
10,375
 
$
(3,249)
 
$
21,434
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
6,562
 
$
3,042
 
$
281
 
$
9,885
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenues
 
$
70,834
 
$
130,812
 
$
-
 
$
201,646
 
Expenses
 
 
58,847
 
 
118,414
 
 
3,298
 
 
180,559
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment operating income (loss)
 
$
11,987
 
$
12,398
 
$
(3,298)
 
$
21,087
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
7,531
 
$
3,769
 
$
308
 
$
11,608
 
 
c.
The Company’s business is divided into the following geographic areas: Israel, Europe, United States, Japan and other regions. Total revenues are attributed to geographic areas based on the location of the customers.
 
The following table presents total revenues classified according to geographical destination for the years ended December 31, 2014, 2015 and 2016:
 
 
 
Year ended December 31,
 
 
 
2014
 
2015
 
2016
 
 
 
 
 
 
 
 
 
Israel
 
$
29,198
 
$
36,401
 
$
58,079
 
Europe
 
 
37,409
 
 
29,084
 
 
23,642
 
United States
 
 
82,470
 
 
92,577
 
 
100,470
 
Japan
 
 
11,299
 
 
10,092
 
 
11,226
 
Other
 
 
3,928
 
 
7,876
 
 
8,229
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
164,304
 
$
176,030
 
$
201,646
 
  
d.
The Company’s long-lived assets are located as follows:
 
 
 
December 31,
 
 
 
2015
 
2016
 
 
 
 
 
 
 
Israel
 
$
59,770
 
$
110,213
 
Europe
 
 
1,402
 
 
1,302
 
United States
 
 
29,990
 
 
30,777
 
Japan
 
 
4,765
 
 
4,887
 
Other
 
 
3,253
 
 
3,068
 
 
 
 
 
 
 
 
 
 
 
$
99,180
 
$
150,247
 
 
e.
The Company does not allocate its assets to its reportable segments; accordingly, asset information by reportable segments is not presented.
 
f.
In 2014, 2015 and 2016, the Company had one major customer, included in the IT professional services segment, which accounted for 3%, 11% and 9% of the group revenues, respectively.